Blackstone Infrastructure has announced an agreement to acquire TXNM Energy, a utility company serving approximately 800,000 customers in New Mexico and Texas, for $11.5 billion in an all-cash deal, including debt. The acquisition values TXNM at $61.25 per share, representing a nearly 15% premium over its last closing price. This move reflects Blackstone's strategic investment in the utility sector amid rising U.S. electricity demand, driven by data centers for AI and cryptocurrency, as well as increased residential and commercial energy consumption. TXNM plans to issue an additional $400 million in equity before closing the transaction, expected in the second half of 2026. CEO Pat Collawn will retire post-acquisition, with Don Tarry, an internal executive, slated to succeed her.

TXNM Energy, formerly known as PNM Resources, is an energy holding company based in Albuquerque, New Mexico. The company provides electricity to over 800,000 homes and businesses across New Mexico and Texas through its regulated utilities, Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP). TXNM Energy's diverse energy portfolio, combined with purchased power resources, contributes to a total generation capacity of approximately 2.7 gigawatts.

In August 2024, PNM Resources completed its name change to TXNM Energy to better reflect its operations in both Texas and New Mexico. The company's common stock continues to be listed on the New York Stock Exchange under the ticker "TXNM."

Blackstone Infrastructure's acquisition of TXNM Energy is valued at $11.5 billion, including debt, with an all-cash offer of $61.25 per share. This represents a nearly 15% premium over TXNM's last closing price. Following the announcement, TXNM's stock price surged by 9.2% in premarket trading.

TXNM plans to issue an additional $400 million in equity before the transaction closes, which is expected in the second half of 2026. CEO Pat Collawn will retire upon completion of the acquisition, with Don Tarry, an internal executive, set to succeed her.

This acquisition aligns with Blackstone's strategy to invest in stable, regulated utilities that offer predictable returns and require significant capital for grid modernization. The deal reflects a broader trend of increased investments in the utility sector, driven by rising electricity demand from data centers supporting AI and cryptocurrency operations, as well as increased residential and commercial energy consumption.

Recent significant investments in the utility sector include NRG Energy's $12 billion acquisition from LS Power and KKR’s and PSP Investments' $2.82 billion stake in American Electric Power.

The acquisition is expected to have several social and economic implications:

• Energy Infrastructure Investment: Blackstone's investment is anticipated to support TXNM's clean energy goals and meet increasing electricity demand while maintaining grid reliability.

• Employment and Leadership Changes: The retirement of CEO Pat Collawn and the appointment of Don Tarry as her successor may lead to shifts in corporate strategy and operations.

• Market Dynamics: The acquisition may influence market dynamics in the utility sector, potentially affecting competition and pricing in the regions served by TXNM.

This comprehensive overview provides the necessary factual information to develop a thorough news article on Blackstone Infrastructure's acquisition of TXNM Energy.