Blackstone Infrastructure (BX) is set to acquire TXNM Energy (TXNM) in an $11.5 billion all-cash deal, including debt, as the investment giant positions itself to capitalize on surging U.S. electricity demand and the transition to cleaner power sources.
The $61.25 per-share bid represents a nearly 15% premium over TXNM’s closing price, sending the utility’s stock sharply higher. With power needs expected to peak in 2025—driven by AI and cryptocurrency data centers alongside growing residential and commercial consumption—investors are flocking to regulated energy assets.
Market Overview:- Blackstone to buy TXNM Energy for $11.5 billion including debt.
- Deal values TXNM at $61.25 per share, a 15% premium over last close.
- U.S. power demand set to hit record levels in 2025.
- Blackstone manages $60 billion in infrastructure assets.
- Similar deals: NRG Energy’s (NRG) $12 billion asset purchase; AEP (AEP) stake sale to KKR.
- Stable regulated returns underpin investment thesis.
- Capital infusion to support TXNM’s clean energy targets.
- Additional $400 million equity issuance planned pre-close.
- Transaction expected to close in H2 2026, with new CEO Don Tarry succeeding Pat Collawn.
- Blackstone Infrastructure's acquisition of TXNM Energy for $11.5 billion injects significant long-term capital, supporting TXNM's build-out of critical electricity infrastructure in New Mexico and Texas, facilitating the clean energy transition, and meeting rising power demand.
- The deal values TXNM Energy at $61.25 per share, a nearly 15% premium over its recent closing price, reflecting strong investor confidence and the strategic value of regulated energy assets amid surging U.S. electricity consumption.
- U.S. electricity demand is projected to hit record levels in 2025 and continue growing, driven by AI and cryptocurrency data centers, transportation electrification, and expanding residential and commercial use.
- Blackstone's investment, including an initial $400 million private placement and a planned additional $400 million equity issuance by TXNM, will bolster TXNM's ability to modernize its grid, maintain reliability, and achieve clean energy goals.
- TXNM Energy will remain locally managed and operated, with customer rates continuing to be set by state regulators, ensuring stability and a focus on community needs.
- The transaction is part of a broader trend of significant investments in utility and power generation assets by firms like KKR and NRG Energy, highlighting the attractiveness of the sector due to stable, regulated returns and critical infrastructure needs.
- The acquisition, while offering a premium, is subject to TXNM Energy shareholder approval and multiple regulatory approvals, with an estimated closing in the second half of 2026, introducing a lengthy period of uncertainty.
- Meeting the rapidly growing electricity demand, particularly from data centers and electrification, will require substantial ongoing capital investment and navigating complex policy and technology challenges related to grid modernization and the clean energy transition.
- While Blackstone provides long-term capital, the success of the investment hinges on effective execution by the new leadership team under Don Tarry, who will succeed Pat Collawn as CEO.
- The broader energy transition involves inherent risks, including the reliability of emerging technologies, potential regulatory hurdles, and the costs associated with shifting generation portfolios to meet clean energy mandates.
- The significant capital requirements for grid modernization and meeting demand growth could pressure returns if not managed efficiently or if regulatory frameworks do not provide adequate support for cost recovery.
- Competition for clean energy assets and infrastructure investments is increasing, which could impact future deal valuations and the availability of attractive investment opportunities in the utility sector.
The influx of long-term capital from Blackstone is expected to bolster TXNM’s grid modernization efforts and maintain reliability even as the utility pursues ambitious clean energy goals.
Upon closing—which is targeted for the second half of 2026—CEO Pat Collawn will step down, handing leadership to insider Don Tarry and ushering in a new chapter for the New Mexico and Texas–focused utility.
