Sharyland Utilities Closes Transaction with Sempra Energy; Sempra Energy to Own 50 Percent of Sharyland Along with Hunt; Stacey Doré Named New Sharyland President and CEO
DALLAS, May 16, 2019 /PRNewswire/ -- Sharyland Utilities, L.L.C. (Sharyland) announced today that it has closed its transaction with Sempra Energy, whereby Sempra Energy now indirectly owns a 50 percent stake in the company. In addition, Sharyland announced today that Stacey Doré has assumed the duties of President and CEO for Sharyland.
"Today marks a new beginning for Sharyland and for our commitment to supporting the critical transmission infrastructure needs of ERCOT," said Hunter Hunt, CEO of Hunt Consolidated Energy. "As a company, we are excited about the opportunities that this new partnership with Sempra Energy will bring."
Going forward, Sharyland will continue as an independent transmission utility, owned 50 percent by entities controlled by Hunter L. Hunt and other members of the family of Ray L. Hunt and 50 percent by entities controlled by Sempra Energy. Sharyland will own transmission assets that it previously built in South Texas and will continue to seek development opportunities throughout the Electric Reliability Council of Texas (ERCOT) in partnership with Sempra Energy.
In addition, Stacey Doré has been named the new President and CEO of Sharyland Utilities. Doré previously served as Senior Vice President and General Counsel of InfraREIT, Inc., and Hunt Utility Services, LLC (HUS), which was the external manager of InfraREIT, Inc. (NYSE: HIFR) (InfraREIT). Doré will also serve as President of HUS, which will now provide external management services to Sharyland. Prior to joining Hunt, Doré spent eight years with Energy Future Holdings Corp., serving the last four years as General Counsel and Chief Restructuring Officer.
"Stacey is the perfect person to lead our team going forward," said Hunt. "Stacey's creativity, judgment, and values have been essential in paving the way for a new chapter for Hunt and Sharyland. She knows the utility industry extremely well, and she knows how to run Sharyland in a manner that will benefit both ERCOT and the communities where we will be operating."
Sharyland's transaction with Sempra Energy is part of a broader set of transactions that were initially announced in October 2018 and that included the $1.275B sale of InfraREIT, Inc. to Oncor Electric Delivery Company LLC (Oncor), which is majority-owned by Sempra Energy. Over the past seven months, these transactions received all necessary regulatory approvals, including the final approval of the Public Utility Commission of Texas on May 9, 2019.
Now that all the transactions have closed, Oncor owns InfraREIT's electric transmission utility business, which Hunt developed, constructed, and grew to $2 billion in assets over the past two decades. The InfraREIT business now owned by Oncor consists of all electric transmission assets previously owned by Sharyland and InfraREIT located in Central Texas, West Texas, and the Texas Panhandle and South Plains, including the Golden Spread Electric Cooperative interconnection, the Lubbock Power & Light interconnection project, and other ERCOT development projects outside of South Texas.
Baker Botts acted as legal advisor to Sharyland and Hunt Consolidated, Inc. in the transaction. Morgan Stanley acted as exclusive financial advisor to Hunt Consolidated, Inc. in the transaction.
About Sharyland Utilities, L.L.C.
Sharyland Utilities, L.L.C. is a Texas-based electric transmission utility that is fully regulated by the Public Utility Commission of Texas. We are committed to providing safe, reliable, and efficient transmission and substation services, ensuring operational excellence, and investing to support infrastructure needs throughout the Electric Reliability Council of Texas grid. Sharyland Utilities is owned 50 percent by entities controlled by Hunter L. Hunt and other members of the family of Ray L. Hunt and 50 percent by entities controlled by Sempra Energy. Additional information about Sharyland can be found at www.sharyland.com.
About Hunt Utility Services, LLC
Hunt Utility Services provides management and support services for Sharyland Utilities, L.L.C., and is part of a larger privately-owned group of companies managed by the Ray L. Hunt family that engages in oil and gas exploration, refining, power, real estate, ranching, and private equity investments. Additional information about Hunt Utility Services can be found at www.huntutility.com.
About Sempra Energy
Sempra Energy's mission is to be North America's premier energy infrastructure company. With 2018 reported revenues of more than $11.6 billion, the San Diego-based company is the utility holding company with the largest U.S. customer base. The Sempra Energy companies' more than 20,000 employees are focused on delivering energy with purpose to approximately 40 million consumers worldwide. Sempra Energy has been consistently recognized for its leadership in diversity and inclusion, and social responsibility, and is a member of the S&P 500 Utilities Index and the Dow Jones Utility Index.
Contact: Paul Schulze
214-978-8534
SOURCE Sharyland Utilities, L.L.C.
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