Texas Public Utility Commission Approves Blackstone Acquisition of TXNM Energy
The Public Utility Commission of Texas has approved a unanimous settlement filed in the application by Texas-New Mexico Power Company for TXNM Energy (TXNM), the parent company of TNMP, to be acquired by Blackstone Infrastructure (BX). The approval confirms that the acquisition is in the public interest. Terms of the settlement include $45M in rate credits to customers, strong governance and local oversight, dividend restrictions, financial protections and ring-fencing, local control and workforce protections, customer and regulatory protections, a commitment to fund the company's 5-year capital expenditure plans, and commitments to Texas communities.The settlement was reached in December with Staff of the Public Utility Commission of Texas, Texas Industrial Energy Consumers, Office of Public Utility Counsel, Cities served by TNMP, Walmart Inc. and Texas Energy Association for Marketers. The acquisition has received federal regulatory approval from the Federal Communications Commission, and the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has expired. TXNM Energy shareholders overwhelmingly approved the merger in August 2025. The merger also requires federal approval from the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission, along with state approval from the New Mexico Public Regulation Commission as it relates to Public Service Company of New Mexico, the New Mexico utility subsidiary of TXNM Energy.
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- Acquisition Settlement: The Texas Public Utility Commission unanimously approved the acquisition of TXNM Energy by Blackstone Infrastructure, confirming that the deal serves the public interest and is expected to provide $45 million in rate credits to customers, thereby enhancing the company's market position in Texas.
- Governance and Protections: The settlement includes strong governance structures and local oversight mechanisms, ensuring customer and regulatory protections while imposing dividend restrictions, enhancing financial security, and committing to fund the company's five-year capital expenditure plans.
- Regulatory Approval Progress: The acquisition has received approval from the Federal Communications Commission, and the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has expired, indicating smooth progress of the transaction and bolstering investor confidence.
- Community Commitment: TXNM Energy has committed to continue supporting the development of Texas communities, ensuring local control and workforce protections, which reflects the company's focus on local economies and aims to enhance market share through improved customer relationships.
- Acquisition Approval: TXNM Energy's acquisition has been approved by the Texas Public Utility Commission, confirming that the deal is in the public interest and committing $45 million in rate credits to customers, enhancing the company's competitive position in the market.
- Capital Expenditure Plans: The transaction includes commitments to fund the company's five-year capital expenditure plans, which are expected to drive future business growth and infrastructure improvements, further solidifying TXNM's market position.
- Shareholder Support: TXNM Energy shareholders overwhelmingly supported the merger in August 2025, demonstrating market confidence in the deal and laying the groundwork for subsequent federal and state approvals.
- Technical Analysis: Currently, TXNM's stock is trading 0.2% below its 20-day simple moving average but 1.8% above its 100-day moving average, indicating strong long-term market performance, although facing some selling pressure in the short term.
- Acquisition Approval: The Texas Public Utility Commission unanimously approved the acquisition of Texas-New Mexico Power Company (TNMP) by Blackstone Infrastructure, confirming that the deal serves the public interest and is expected to provide $45 million in rate credits to customers, enhancing client trust and satisfaction.
- Governance and Oversight: The settlement includes strong governance structures and local oversight measures to ensure operational transparency and compliance post-acquisition, while also imposing dividend restrictions and financial protections to safeguard investor interests and mitigate risks.
- Capital Expenditure Commitment: Blackstone has committed to support TNMP's five-year capital expenditure plans, which are anticipated to drive infrastructure investments in Texas and New Mexico, fostering local economic development and improving service quality.
- Regulatory Approval Progress: The acquisition has received approval from the Federal Communications Commission, and the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has expired, with further approvals needed from the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission to ensure the transaction's completion.
- New Investment Position: Athos Capital disclosed ownership of 142,842 shares of TXNM Energy valued at $8.08 million as of September 30, representing 5.06% of its $159.62 million reportable U.S. equity assets, indicating confidence in the company's prospects.
- Strong Market Performance: TXNM Energy shares are priced at $58.92, reflecting a 23% increase over the past year, outperforming the S&P 500's 16% growth, which underscores its competitive position in the electricity market.
- Stable Financial Performance: The company's recent GAAP earnings came in at $1.22 per share, with ongoing earnings of $1.33, supported by approved rate increases in New Mexico and transmission recovery in Texas, demonstrating stable cash flows.
- Infrastructure Investment: TXNM Energy is heavily investing in grid infrastructure and energy storage, including a $78 million battery project tied to existing solar assets, aimed at enhancing service reliability and supporting future growth.
- New Investment Position: Athos Capital acquired 142,842 shares of TXNM Energy in Q3, investing $8.08 million, which represents 5.06% of the fund's assets, indicating confidence in the company's future performance.
- Asset Management Scale: This acquisition increases Athos Capital's reportable assets to $159.62 million, enhancing the diversity of its investment portfolio in the electric utility sector.
- Market Performance: TXNM Energy shares are currently priced at $58.92, reflecting a 23% increase over the past year, outperforming the S&P 500's 16% gain, showcasing its competitive edge and investment appeal.
- Operational Stability: TXNM Energy reported GAAP earnings of $1.22 per share and ongoing earnings of $1.33 in Q3, supported by approved rate increases in New Mexico and transmission recovery in Texas, demonstrating stable cash flows and a solid business foundation.
- Acquisition Settlement: TXNM Energy and Blackstone Infrastructure have reached a unanimous agreement for Blackstone to acquire all outstanding common stock of TXNM Energy, pending approval from the Public Utility Commission of Texas, indicating strong confidence in the transaction.
- Stakeholder Involvement: The settlement includes participation from the PUCT staff, Texas Industrial Energy Consumers, Office of Public Utility Counsel, cities served by TNMP, Walmart, and Texas Energy Association for Marketers, reflecting broad support from key stakeholders.
- Hearing Cancellation: The PUCT hearings scheduled for December 15, 2025, have been canceled, which may expedite the transaction process and reduce uncertainty surrounding the deal.
- Market Impact: TXNM Energy serves over 800,000 homes and businesses across Texas and New Mexico, and if the transaction is successful, it will further solidify its market position and enhance investor confidence.











