Blackstone to acquire TXNM Energy for $11.5 bn, bets on US energy demand

Blackstone sees TXNM as a sound long-term investment due to the stable, regulated returns and substantial capital requirements of grid modernisation and energy transition

Blackstone Infrastructure is set to acquire utility firm TXNM Energy in an $11.5 billion deal (including debt), as the investment firm bets on rising US power demand and the transition towards cleaner energy, Reuters reported.

 

TXNM’s stock rose 9.2 per cent to $57.75 in pre-market trading on Monday after the New Mexico utility announced an all-cash offer from Blackstone Infrastructure valuing the company at $61.25 per share—approximately a 15 per cent premium to its previous closing price, according to LSEG data. 

With US power demand projected to reach an all-time high in 2025—driven by energy-intensive AI and cryptocurrency data centres along with increasing residential and commercial consumption—more companies are investing in utilities.

   

Utility NRG Energy announced last week its plans to acquire certain power-generation assets from energy infrastructure investor LS Power in a transaction valued at about $12 billion.

 

Earlier this year, KKR and PSP Investments purchased a 20 per cent stake in American Electric Power’s transmission network for $2.82 billion     

Blackstone was reportedly in talks to acquire the New Mexico- and Texas-focused utility, Reuters reported last week, citing sources familiar with the matter.

 

Managing $60 billion in infrastructure assets, Blackstone views TXNM as a sound long-term investment due to its stable, regulated returns and the substantial capital required for grid modernisation.

 

The long-term capital from Blackstone is expected to help TXNM meet its clean energy goals and rising electricity demand while maintaining grid reliability, the utility stated.

 

It also plans to raise an additional $400 million in equity prior to completing the Blackstone deal.

 

According to its official website, TXNM Energy supplies power to about 800,000 residential and commercial customers across New Mexico and Texas.

 

Chief Executive Officer Pat Collawn will step down upon closure of the deal—anticipated in the latter half of 2026—and will be succeeded by company insider Don Tarry, TXNM Energy added.