FERC Approves Blackstone's Acquisition of TXNM Energy
The Federal Energy Regulatory Commission (FERC) has authorized the acquisition of TXNM Energy by Blackstone Infrastructure. In its order, FERC found the transaction to be consistent with the public interest. The approval marks a key regulatory milestone for the deal involving the publicly traded energy company.
- The all-cash deal is valued at $11.5 billion, including net debt, with Blackstone paying $61.25 per share. This represents a nearly 15% premium over TXNM's closing price before the announcement. - TXNM Energy, formerly PNM Resources, serves over 800,000 homes and businesses in New Mexico and Texas through its regulated utilities, PNM and TNMP. The company's 2023 consolidated operating revenues were $1.9 billion. - Blackstone is making the acquisition through its Blackstone Infrastructure Partners (BIP) open-ended fund, which focuses on long-term investments in sectors like energy, transportation, and digital infrastructure. This "patient capital" approach is intended to support TXNM's infrastructure build-out without adding new debt for the acquisition. - The acquisition is part of a broader trend of private equity firms investing in regulated utilities, which are seen as offering predictable returns amid rising electricity demand driven by data centers, electrification, and manufacturing. - Blackstone plans to inject significant capital into TXNM's operations, including an initial $400 million purchase of newly issued shares and a planned $4.2 billion five-year capital spending plan through 2029 to modernize the grid and meet growth. - As part of the agreement with Texas regulators, Blackstone has committed to providing a $45.5 million rate credit to Texas customers over four years, keeping the utility's headquarters in its Texas service territory, and avoiding involuntary layoffs. A proposed credit in New Mexico would amount to about $4 a month for the average customer over four years. - TXNM Energy's current leadership, including CEO Don Tarry who succeeded Pat Collawn, is expected to remain in place, with the company continuing to be locally managed from its headquarters in New Mexico and Texas. - This is not the first acquisition attempt for TXNM; New Mexico regulators blocked a previous takeover by Avangrid, a subsidiary of Spain's Iberdrola, in 2020. The Blackstone deal is expected to close in the second half of 2026, pending final shareholder and regulatory approvals.
