NextEra Energy reaches definitive agreement to acquire Energy Future Holdings' interest in Oncor Electric Delivery Company

NextEra Energy has announced a definitive agreement under which a newly formed subsidiary of NextEra Energy will acquire 100 percent of the equity of reorganized Energy Future Holdings Corp. (EFH) and certain of its direct and indirect subsidiaries, including EFH’s approximately 80 percent indirect interest in Oncor Electric Delivery Company (Oncor), which implies a total enterprise value of approximately US$18.4 billion.

Energy Future Holdings Corp. is a Dallas-based, privately held energy company with a portfolio of regulated energy companies. These businesses serve the Texas electricity market. EFH’s businesses consist primarily of TXU Energy and Luminant. Its regulated operations consist of Oncor.

Oncor operates the largest electricity distribution and transmission system in Texas with more than 3.2 million delivery points and 120,000 miles of distribution and transmission lines. While EFH Corp. indirectly owns approximately 80 percent of Oncor, the management of Oncor reports to a separate board with a majority of directors that are independent from EFH Corp.

The definitive agreement will be filed publicly as part of the restructuring of EFH currently before the United States Bankruptcy Court for the District of Delaware. It is part of an overall plan of reorganization that is designed to allow EFH to emerge from Chapter 11 bankruptcy. Bankruptcy court approval of EFH entering into the definitive agreement is required for the agreement to be binding upon EFH and Energy Future Intermediate Holding Company LLC (EFIH). The parties will request that the bankruptcy court approve EFH’s entry into the agreement as soon as practicable.

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are serving as lead financial advisors to NextEra Energy. In addition, NextEra Energy’s other financial advisors include Deutsche Bank Securities, J.P. Morgan Securities LLC, UBS Securities LLC and Wells Fargo Securities. Chadbourne & Parke LLP is serving as lead legal counsel to NextEra Energy.

Jim Robo, chairman and chief executive officer of NextEra Energy, stated:

“We are pleased to have reached a definitive agreement to acquire EFH’s 80 percent indirect interest in Oncor. We are incredibly impressed by Oncor’s management team and its employees, and we are committed to retaining the Oncor name, its Dallas headquarters and local management. NextEra Energy shares Oncor’s strategy of making smart, long-term investments in transmission and distribution to continue to deliver affordable, reliable electric service to its customers. We look forward to working closely with Oncor’s leadership team and filing our joint application with the Public Utility Commission of Texas.

We are proud to own and operate one of the most efficient, reliable and low-cost utilities in the nation, providing a value proposition for our customers that includes electric bills that are among the nation’s lowest, high reliability and award-winning customer service. We believe our deep operating expertise in Texas and across the nation, strong financial profile and experience operating in a regulated utility environment offer uniquely compelling advantages.”