$11.5B All-Cash Deal to Accelerate Grid Resilience and Clean Energy Growth in New Mexico and Texas
Blackstone Infrastructure has announced its agreement to acquire TXNM Energy in an all-cash transaction valued at $11.5 billion, including net debt and preferred stock. The acquisition, priced at $61.25 per share, represents a 23% premium over TXNM’s 30-day volume-weighted average price prior to a leak on March 5, 2025.
This landmark transaction marks a major vote of confidence in regulated utility infrastructure and long-term energy growth opportunities in the U.S. Southwest.
A Long-Term Commitment to Local Clean Energy
TXNM Energy, the parent company of regional utilities PNM and TNMP, serves millions of customers across New Mexico and Texas. The partnership with Blackstone is expected to significantly accelerate investments in grid modernization, climate-resilient infrastructure, and clean energy integration.
“Our progress at TXNM Energy has been guided by a commitment to serve our customers and communities with reliable, sustainable power,” said Pat Collawn, Chair and CEO of TXNM Energy. “This partnership with Blackstone Infrastructure will enable us to continue that mission at greater scale.”
Blackstone will fully fund the transaction with equity—eschewing new debt to ensure financial discipline and long-term stability. In addition, a $400 million private equity investment at $50 per share will support an aggressive capital deployment strategy aimed at meeting rising energy demands in the region.
Deal Highlights
- Purchase Price: $61.25 per share in cash
- Valuation: $11.5 billion total enterprise value, including net debt
- Funding: 100% equity-financed, with no new debt issuance
- Private Placement: $400 million at $50 per share to fund growth
“This acquisition reflects our strategy of investing in durable infrastructure platforms that support economic growth and energy transformation,” said Sean Klimczak, Global Head of Blackstone Infrastructure. “We are committed to working with local partners to drive innovation and long-term value.”
Preserving Local Control and Customer Protections
The transaction structure emphasizes continuity and community engagement:
- Local Leadership: PNM and TNMP will continue to operate under their existing names, headquartered in New Mexico and Texas.
- Labor Protections: All union agreements will remain in effect, with no expected job losses.
- Regulated Rates: Customer rates will continue to be regulated by the New Mexico Public Regulation Commission (NMPRC) and the Public Utility Commission of Texas (PUCT).
- Community Focus: Stakeholder input will shape future initiatives, with formal commitments outlined in upcoming regulatory filings.
“We will continue to work with regulators, legislators, and communities to support a reliable, resilient grid and inclusive clean energy transition,” added Collawn.
Regulatory Path and Closing Timeline
The transaction has been unanimously approved by TXNM Energy’s Board of Directors and is expected to close in the second half of 2026, pending customary approvals from:
- New Mexico Public Regulation Commission (NMPRC)
- Public Utility Commission of Texas (PUCT)
- Federal Energy Regulatory Commission (FERC)
- Department of Justice (under the Hart–Scott–Rodino Act)
- Nuclear Regulatory Commission (NRC)
- Federal Communications Commission (FCC)
TXNM Energy will continue its current dividend policy until closing, subject to board discretion.
Investor Takeaway
Blackstone’s acquisition of TXNM Energy positions the utility group for a new chapter of growth and innovation. The deal brings long-term capital and industry expertise, while preserving the local management, customer protections, and regulatory oversight that have defined TXNM’s operations. For shareholders, the all-cash offer provides immediate value, while for communities, the partnership promises infrastructure modernization and sustainable energy progress across two high-growth states.
