TXNM Energy has entered into a definitive agreement to be acquired by Blackstone Infrastructure in an all-equity transaction valued at $11.5 billion, including net debt (excluding securitization debt) and preferred stock.
This acquisition provides long-term capital to support TXNM Energy’s utility subsidiaries—PNM (Public Service Company of New Mexico) and TNMP (Texas-New Mexico Power)—as they continue advancing critical electricity infrastructure and clean energy goals in New Mexico and Texas. The transaction will be entirely funded with equity, with no new debt and no increase in leverage planned.
Powering the Clean Energy Transition in NM and Growth in TX
PNM is actively transforming its generation portfolio to meet New Mexico’s decarbonization mandates, with over two-thirds of its electricity supply already sourced from carbon-free resources. TNMP, serving fast-growing areas in Texas, is responding to nation-leading demand growth by ramping up capital investment in grid capacity and reliability.
“This transaction is about building on our successes,” said Pat Collawn, Chair and CEO of TXNM Energy. “We’ve integrated new resources, delivered clean energy for our customers, and supported double-digit growth. Our partnership with Blackstone Infrastructure will help us go even further, with aligned priorities focused on reliability, resiliency, and clean energy progress.”
Local Control, Regulator Oversight, Community Commitment
PNM and TNMP will remain locally managed and headquartered in New Mexico and Texas, retaining current employees and honoring all union labor agreements. Customer rates will continue to be regulated by state commissions, and customer benefit packages will be developed through stakeholder engagement in both states.
Blackstone’s investment aligns with TXNM Energy’s long-term financing strategy and supports the company’s investment-grade credit profile. “We are long-term partners with a focus on sustainable infrastructure,” said Sean Klimczak, Global Head of Blackstone Infrastructure. “Our perpetual capital model enables us to back growth-oriented utilities like TXNM while creating meaningful community partnerships.”
A Strategic Fit for Blackstone’s Infrastructure Portfolio
With over $60 billion in assets under management, Blackstone Infrastructure is one of North America’s leading infrastructure investors. The firm has committed over $5 billion in equity across its portfolio companies in just the last two years. It focuses on multi-decade partnerships in energy, transportation, water, and digital infrastructure.
In addition to the $11.5 billion acquisition, Blackstone will invest an additional $400 million into TXNM Energy through a private placement of 8 million new shares at $50 each. TXNM plans to raise another $400 million in equity before the transaction closes to fund continued growth.
The acquisition is expected to close by mid-2025, subject to customary approvals. Wells Fargo and Citi are advising TXNM Energy, with legal counsel from Troutman Pepper. RBC Capital Markets and J.P. Morgan are advising Blackstone, with support from Kirkland & Ellis as legal counsel.
