Sempra Energy's partnership with Oncor is a significant development in the energy sector.
The partnership involves Sempra Energy acquiring Oncor's parent company, Energy Future Holdings Corp. The deal is expected to be completed in the second quarter of 2020.
The acquisition is a strategic move by Sempra Energy to expand its presence in the Texas market. Oncor is one of the largest electric utilities in Texas, serving over 3 million customers.
Sempra Energy is well-positioned to capitalize on the growing demand for energy in Texas, with Oncor's extensive network of transmission and distribution lines.
Sempra Energy Acquisition
Sempra Energy has completed its acquisition of a majority stake in Oncor, the largest utility in Texas, for $9.45 billion in cash.
Oncor will remain headquartered in Dallas and will continue to serve over 11 million Texans with reliable electric delivery service.
Allen Nye, Oncor's senior vice president and general counsel, has taken over as CEO, succeeding Bob Shapard, who becomes Oncor's chairman.
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Sempra Energy's acquisition of Oncor is expected to diversify its base of U.S. utility earnings and create a broader platform for expansion.
The Public Utility Commission of Texas and the U.S. Bankruptcy Court for the District of Delaware have approved the acquisition, which was announced in August 2017.
Sempra Energy is a Fortune 500 energy services holding company with 2017 revenues of over $11 billion.
Oncor is a regulated electric transmission and distribution service provider with approximately 134,000 miles of lines and nearly 3.5 million advanced meters.
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Oncor News
Oncor Electric Delivery Company LLC will participate in Sempra Energy's virtual Investor Day event on June 29 at 12 p.m. ET, where CEO Allen Nye will provide an update on Oncor's business strategy, operations, and financial outlook.
The presentation slides, including Oncor's slides, will be posted by 7 a.m. ET, Tuesday, June 29, to the investor section of Sempra Energy's website.
Sempra Energy is buying Oncor for $9.45 billion in cash, along with $9.35 billion of the company's debt.
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Oncor joins virtual investor day June 29
Oncor joins virtual investor day June 29. Oncor's CEO Allen Nye will participate in the event.
You can listen to the live webcast of the conference call on Sempra Energy's website. Sempra Energy's website is sempra.com.
The presentation slides, including Oncor's slides, will be posted by 7 a.m. ET on June 29. They can be found in the investor section of Sempra Energy's website.
A replay of the webcast will be available at sempra.com within 24 hours after its conclusion.
Crown Jewel
Oncor was considered the crown jewel of Energy Future Holdings when the company finally collapsed. This is because Oncor is low-risk and has state-guaranteed profitability.
TXU Energy and Luminant, Texas' largest retail electric provider and largest electricity generator, were already spun off under new parent company Vistra.
As part of the deal, Oncor's CEO Bob Shapard will become executive chairman of Oncor's board, and Allen Nye, currently Oncor's general counsel, will succeed Shapard as Oncor CEO.
Shapard announced his planned retirement as CEO in October 2016, and previous deals featured this change in their transition plans.
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Frequently Asked Questions
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Sempra connects millions of people worldwide through energy infrastructure, serving approximately 40 million consumers globally. We empower communities through innovative energy solutions, led by our 20,000 dedicated employees.
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