About the Deal

About the Deal

Building on its 20-year presence in Texas, Sempra Energy (Sempra) has agreed to pay approximately $9.45 billion in cash to acquire Energy Future Holdings (EFH) and its approximately 80-percent indirect ownership in Oncor. Additionally, all debt at EFH and EFH subsidiary, Energy Future Intermediate Holding Co. LLC, will be extinguished as a result of the bankruptcy proceeding.

The transaction is expected to close in the first half of 2018, subject to customary closing conditions, including the approval of the Public Utility Commission of Texas, U.S. Bankruptcy Court and Federal Energy Regulatory Commission, receipt of a satisfactory supplemental private ruling letter from the Internal Revenue Service, and others. If approved, the transaction will end the long-running EFH bankruptcy case.

The enterprise value of the transaction is approximately $18.8 billion, including Oncor debt.

Important Benefits

Sempra has made 47 regulatory commitments to Texas, including:

  • Sempra will keep in place ring-fence provisions to ensure both legal and financial separation between Oncor, Sempra Energy and its affiliates.
  • Oncor’s independence will continue to be preserved with a separate and majority independent board of directors.
  • The Sempra agreement is expected to strengthen Oncor’s finances and protect Oncor customers. As a result of the transaction, Sempra will ensure that Oncor’s credit ratings at the closing of the transaction are at or above current levels (as of June 30, 2017).
  • Oncor will remain a Dallas-based company with its current local management team, anchored in the communities it serves and dedicated to meeting the growing needs of Texas electric customers.
  • Bob Shapard, currently Oncor’s CEO, will be appointed Chairman of the Oncor Board. Allen Nye, currently Oncor’s general counsel, will be promoted to CEO of Oncor.
  • Sempra is supportive of Oncor’s $7.5 billion capital investment plan over a five-year period to build the infrastructure needed to safely and reliably serve new and existing customers.

A complete list of commitments and additional information is available at oncor-sempra.com.

 

 

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