Blackstone seems to have set its sights on expanding in the energy sector with its new acquisition. Blackstone Infrastructure agreed to reportedly acquire New Mexico utility owner TXNM Energy Inc. for about $5.7 billion, the latest in a flurry of power deals as U.S. electricity consumption grows.
Blackstone Infrastructure, which is a division of Blackstone Inc., focuses on long-term investments in critical infrastructure assets across North America and Europe.
TXNM executives reportedly said on a conference call Monday that the company will approach stakeholders earlier and more cooperatively, compared with its strategy during the failed 2020 deal.
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“We likely won’t file the case for ninety days,” said Chief Executive Officer Don Tarry, referring to the request TXNM will file with state regulators in New Mexico and Texas to approve the Blackstone deal. “That allows us to engage and listen first with our intervenors and to build some consensus as we go into that filing.”
As of December 2024, it managed $55 billion in assets with a total enterprise value of $192 billion. Key investment areas include energy transition, transportation, digital infrastructure, and water and waste management. The group seeks stable, cash-generating assets and enhances value through operational improvements and strategic partnerships.
Blackstone invested a total of $4 billion in Invenergy, the largest privately-held independent power producer in North America. Additionally, it invested in Australia’s Symphony Infrastructure Partners in 2024 to support renewable energy growth. Through a disciplined, value-add approach, Blackstone Infrastructure aims to address global infrastructure needs while delivering long-term returns for investors.
The deal with Blackstone means that TXNM Energy will become privately owned by one of the world’s largest investment firms. This provides TXNM with access to significant capital, enabling long-term investments in infrastructure, technology, and clean energy. Under Blackstone’s ownership, TXNM can focus on improving grid reliability, expanding renewable energy projects, and enhancing customer service without the short-term pressures of public markets. The utility’s operations are expected to remain stable, given its regulated nature, but the backing of Blackstone could accelerate modernization and growth efforts, benefiting both the company and the communities it serves in Texas and New Mexico.