SAN DIEGO, July 31, 2015 /PRNewswire/ -- Sempra
Energy's (NYSE:SRE) Mexican subsidiary, Infraestructura
Energética Nova, S.A.B. de C.V. (IENOVA) (BMV: IENOVA) and
Petróleos Mexicanos (PEMEX) today
jointly announced that IEnova has agreed to purchase PEMEX's
50-percent equity interest in the Gasoductos de Chihuahua joint
venture for $1.325 billion, plus the
assumption of approximately $170
million in net debt.
The transaction is expected to be about $0.05 accretive to Sempra Energy's diluted
earnings per share in 2016, growing to approximately $0.10 per share by 2019 and is expected to be
financed with a combination of debt and equity issuances at
IEnova.
The acquired joint-venture assets are under long-term contracts
and include three natural gas pipelines, an ethane pipeline, a
liquid petroleum gas (LPG) pipeline and a LPG storage
terminal. As a result of this transaction, IEnova will own 100
percent of the equity capital in Gasoductos de Chihuahua.
In addition, under the terms of the agreement, IEnova and PEMEX
shall maintain a joint venture for the Los Ramones Norte pipeline
project. This partnership will allow IEnova and PEMEX to
continue building on their successful history of joint development
of energy infrastructure projects in Mexico.
"This acquisition creates incremental value for IEnova and
Sempra Energy shareholders by expanding our asset base and
operating capabilities in Mexico,"
said Mark A. Snell, president of
Sempra Energy. "It provides opportunities to leverage our resources
and grow in the marketplace."
The transaction is expected to close within 120 days, after
approval by IEnova shareholders and the satisfactory completion of
a Mexican anti-trust review and other customary closing
conditions.
IEnova develops, builds and operates energy infrastructure in
Mexico. As of 2014, the company
has invested more than US$3.5 billion
in operating assets and projects under construction in Mexico, making it one of the largest energy
companies in the country. IEnova is the first energy infrastructure
company to be listed on the Mexican Stock Exchange.
Sempra Energy, based in San
Diego, is a Fortune 500 energy services holding company with
2014 revenues of $11
billion. The Sempra Energy companies' 17,000 employees
serve more than 32 million customers worldwide.
This press release contains statements that are not
historical fact and constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements can be identified by words like
"believes," "expects," "anticipates," "plans," "estimates,"
"projects," "forecasts," "contemplates," "intends," "depends,"
"should," "could," "would," "will," "confident," "may,"
"potential," "possible," "proposed," "target,"
"pursue," "goals," "outlook," "maintain" or similar expressions, or
discussions of guidance, strategies, plans, goals, opportunities,
projections, initiatives, objectives or intentions.
Forward-looking statements are not guarantees of performance.
They involve risks, uncertainties and assumptions. Future
results may differ materially from those expressed in the
forward-looking statements. Forward-looking statements are
necessarily based upon various assumptions involving judgments with
respect to the future and other risks, including, among others:
local, regional, national and international economic,
competitive, political, legislative and regulatory conditions and
developments; actions and the timing of actions, including
issuances of permits to construct and licenses for operation, by
the California Public Utilities Commission, California State
Legislature, U.S. Department of Energy, Federal Energy Regulatory
Commission, Nuclear Regulatory Commission, Atomic Safety and
Licensing Board, California Energy Commission, U.S. Environmental
Protection Agency, California Air Resources Board, and other
regulatory, governmental and environmental bodies in the United States and other countries in which
we operate; the timing and success of business development efforts
and construction, maintenance and capital projects, including risks
in obtaining, maintaining or extending permits, licenses,
certificates and other authorizations on a timely basis and risks
in obtaining adequate and competitive financing for such projects;
energy markets, including the timing and extent of changes and
volatility in commodity prices, and the impact of any
protracted reduction in oil prices from historical averages; the
impact on the value of our natural gas storage assets from low
natural gas prices, low volatility of natural gas prices and the
inability to procure favorable long-term contracts for natural gas
storage services; delays in the timing of costs incurred and the
timing of the regulatory agency authorization to recover such costs
in rates from customers; deviations from regulatory precedent or
practice that result in a reallocation of benefits or burdens among
shareholders and ratepayers; capital markets conditions, including
the availability of credit and the liquidity of our investments;
inflation, interest and currency exchange rates; the impact of
benchmark interest rates, generally Moody's A-rated utility bond
yields, on our California Utilities' cost of capital; the
availability of electric power, natural gas and liquefied natural
gas, and natural gas pipeline and storage capacity, including
disruptions caused by failures in the North American transmission
grid, pipeline explosions and equipment failures and the
decommissioning of San Onofre Nuclear Generating Station (SONGS);
cybersecurity threats to the energy grid, natural gas storage and
pipeline infrastructure, the information and systems used to
operate our businesses and the confidentiality of our proprietary
information and the personal information of our customers,
terrorist attacks that threaten system operations and critical
infrastructure, and wars; the ability to win competitively bid
infrastructure projects against a number of strong competitors
willing to aggressively bid for these projects; weather conditions,
conservation efforts, natural disasters, catastrophic accidents,
and other events that may disrupt our operations, damage our
facilities and systems, and subject us to third-party liability for
property damage or personal injuries; risks that our partners or
counterparties will be unable or unwilling to fulfill their
contractual commitments; risks posed by decisions and actions of
third parties who control the operations of investments in which we
do not have a controlling interest; risks inherent with nuclear
power facilities and radioactive materials storage, including the
catastrophic release of such materials, the disallowance of the
recovery of the investment in, or operating costs of, the nuclear
facility due to an extended outage and facility closure, and
increased regulatory oversight, including motions to modify
settlements; business, regulatory, environmental and legal
decisions and requirements; expropriation of assets by foreign
governments and title and other property disputes; the impact on
reliability of San Diego Gas & Electric Company's (SDG&E)
electric transmission and distribution system due to increased
amount and variability of power supply from renewable energy
sources; the impact on competitive customer rates of the growth in
distributed and local power generation and the corresponding
decrease in demand for power delivered through SDG&E's electric
transmission and distribution system; the inability or
determination not to enter into long-term supply and sales
agreements or long-term firm capacity agreements due to
insufficient market interest, unattractive pricing or other
factors; the resolution of litigation; and other uncertainties, all
of which are difficult to predict and many of which are beyond our
control. These risks and uncertainties are further
discussed in the reports that Sempra Energy has filed with the
Securities and Exchange Commission. These reports are available
through the EDGAR system free-of-charge on the SEC's website,
www.sec.gov, and on the company's website at
www.sempra.com.
Investors should not rely unduly on any forward-looking
statements. These forward-looking statements speak
only as of the date hereof, and the company undertakes no
obligation to update or revise these forecasts or projections or
other forward-looking statements, whether as a result of new
information, future events or otherwise.
Sempra International, LLC, and Sempra U.S. Gas & Power,
LLC, and Sempra Partners, LP, are not the same companies as the
California utilities, San Diego
Gas & Electric (SDG&E) or Southern California Gas Company
(SoCalGas), and Sempra International, LLC, and Sempra U.S. Gas
& Power, LLC, are not regulated by the California Public
Utilities Commission. Sempra International's underlying entities
include Sempra Mexico and Sempra South American Utilities. Sempra
U.S. Gas & Power's underlying entities include Sempra
Renewables and Sempra Natural Gas.
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SOURCE Sempra Energy