October 10, 2017 - 7:20 AM EDT
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Featured Company News - Sempra's IEnova Acquires Pemex's Participation in Los Ramones II Norte Pipeline

Research Desk Line-up: 8point3 Energy Partners Post Earnings Coverage

LONDON, UK / ACCESSWIRE / October 10, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Sempra Energy (NYSE: SRE) ("Sempra"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=SRE. The Company announced on October 06, 2017, that its Mexican subsidiary, Infraestructura Energetica Nova, S.A.B. de C.V. (BMV: IENOVA) ("IEnova"), has taken over the participation of Pemex Transformación Industrial ("Pemex") in the Ductos y Energeticos del Norte. As a result of this acquisition, IEnova would increase its indirect participation in the Los Ramones II Norte pipeline from 25% to 50%. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Discover more of our free reports coverage from other companies within the Diversified Utilities industry. Pro-TD has currently selected 8point3 Energy Partners LP (NASDAQ: CAFD) for due-diligence and potential coverage as the Company announced on October 04, 2017, its financial results for Q3 FY17 which ended on August 31, 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on 8point3 Energy Partners when we publish it.

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San Diego-based Sempra, a Fortune 500 energy services holding Company, reported revenues of over $10 billion in 2016. The Sempra Energy Companies employ over 16,000 employees who serve around 32 million consumers worldwide.

Total Consideration for the Transaction

  • As per the agreement, IEnova has agreed to acquire Pemex's stake in the Los Ramones II Norte pipeline for $231 million, in addition to the assumption of $289 million in debt, which signifies Pemex's share of the outstanding debt in the pipeline.

About the Los Ramones II Norte Pipeline

  • The Los Ramones II Norte Pipeline is approximately 452 km long and 42-inch wide. The pipeline, which commenced operations in February 2016, transports natural gas from Nuevo Leon to San Luis Potosi.
  • The pipeline has a designated transportation capacity of 1,420 billion cubic feet per day. It runs through two compressor stations. Los Ramones II Norte interconnects with the Los Ramones I pipeline and the Los Ramones II Sur pipeline in Central Mexico.

Transaction Closing Details

  • As of now, the transaction is subject to customary post-closing adjustments included in the purchase and sale agreement.
  • The required authorizations including approval from Mexico's Federal Antitrust Commission is also pending.
  • It is anticipated that the transaction would close in the fourth quarter of the fiscal year 2017, once the authorizations are obtained.

Update on the Oncor Acquisition

On August 20, 2017, Sempra announced that it had entered into an agreement to acquire Energy Future Holdings Corp. ("Energy Future"), which is the indirect owner of 80% of Oncor Electric Delivery Co., LLC ("Oncor"), operator of the largest electric transmission and distribution system in Texas.

Total consideration for the transaction

As per the agreement, Sempra will pay nearly $9.45 billion in cash to acquire Energy Future and its ownership in Oncor. This is a critical step towards resolving Energy Future's long-running bankruptcy case. The enterprise value of the transaction has been estimated at $18.8 billion, including the assumption of Oncor's debt.

Leadership comments about the transaction

Debra L. Reed, Chairman, President, and Chief Executive Officer (CEO) at Sempra, highlighted that Oncor is an excellent strategic fit for Sempra's portfolio of utility and energy infrastructure businesses. This move would help Sempra ensure that Texas utility customers continue to get the exceptional electric service they have come to expect from Oncor over the years.

Update about Change-in-Control application

On October 04, 2017, both Oncor and Sempra revealed that they expected to jointly file a Change-in-Control application with the Public Utility Commission of Texas (PUCT) on October 05, 2017. The filing is also an important step in the regulatory review process for Sempra's agreement to acquire Energy Future. The application comprises 47 regulatory commitments and a new financing structure, under which Sempra now intends to acquire 100% of Energy Future with no third-party equity investors or Energy Future debt.

Last Close Stock Review

At the closing bell, on Monday, October 09, 2017, Sempra Energy's stock marginally climbed 0.61%, ending the trading session at $112.63. A total volume of 1.02 million shares have exchanged hands, which was higher than the 3-month average volume of 990.33 thousand shares. The Company's stock price advanced 1.59% in the last three months, 1.79% in the past six months, and 9.71% in the previous twelve months. Moreover, the stock rallied 11.91% since the start of the year. The stock is trading at a PE ratio of 16.64 and has a dividend yield of 2.92%. The stock currently has a market cap of $28.92 billion.

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Source: ACCESSWIRE Investor Awareness (October 10, 2017 - 7:20 AM EDT)

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