Blackstone Inc.

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Blackstone Inc. stock analysis BX overview
Somewhat Bearish -25

TXNM CEO says it ‘would have been beneficial’ to seek PRC approval for stock sale to Blackstone

🗣️ TXNM Energy CEO Don Tarry testified at a Public Regulation Commission hearing that seeking PRC approval for a previous $400 million stock sale to Blackstone would have been beneficial.

⚖️ Regulators are now weighing whether the May 2025 stock sale violated state law prohibiting utility mergers without prior commission approval.

📉 The consummated stock sale, which occurred before PRC review in August, gave Blackstone a 7.59% stake and created a "kink" in the larger proposed $11.5 billion takeover deal.

💸 TXNM President Don Tarry stated the transaction was intended to pay down debt and fund loans, though he acknowledged spending the proceeds creates an $800 million swing if voided.

🤝 There is significant disagreement between Blackstone/TXNM, who claim the deals are separate, and critics like Prosperity Works, who argue they were connected.

⚠️ Public debate has intensified over how the private equity giant would steward PNM's electric grid, which serves nearly half a million New Mexicans.

🦺 Dozens of protesters gathered at TXNM headquarters in Albuquerque to oppose the sale, arguing private entities should not manage vital state infrastructure.

🗣️ State Sen. Harold Pope called the pre-approved stock transaction "suspect" and suggested it implies the full takeover deal is already a "rigged" done deal.

🌱 Activists argue that decisions made by Blackstone executives in New York ignore the local consequences facing New Mexico residents and the environment.

🔒 TXNM CEO Don Tarry admitted that if approved early, the stock transaction would have been disclosed to investors but noted that deals must keep communication tight.

💰 If forced to undo the sale, TXNM stated they would need to repay Blackstone $400 million using $400 million in new debt while capital has already been spent.

🏛️ The Public Regulation Commission hearing included cross-examination of TXNM leadership regarding public confidence and transparency during the review process.

🌍 Local activist groups like Youth United for Climate Crisis Action are present, warning that New Mexico should not become a cash-cow opportunity for external billionaires.

✊ Protesters chanted slogans calling the deal illegal and demanding that state law be upheld before any further takeover can proceed.

Bullish Signals
  • TXNM secured a $400 million stock sale to Blackstone Inc., which was utilized to pay down debt and provide equity contributions to subsidiaries TNMP and PNM.
  • The company received $900 million in total capital to meet customer needs and fund loans for infrastructure improvements.
  • The proposed acquisition involves a valuation of $11.5 billion, demonstrating strong market confidence in TXNM's assets and potential.
  • CEO Don Tarry emphasized that the stock transaction was intended to raise necessary capital to address infrastructure requirements and state mandates for renewable energy transitions.
  • Despite regulatory delays, TXNM and Blackstone maintain that the deal allows the utility to more easily raise future capital to meet infrastructure needs.
Risk Factors
  • The $400 million stock sale to Blackstone in May 2025 has created a legal bottleneck that is now hampering the proposed $11.5 billion acquisition timeline.
  • Protests and legal challenges from groups like Prosperity Works allege the transaction violated state law prohibiting utility mergers without prior commission approval.
  • If the Public Regulation Commission (PRC) requires the companies to void the stock transaction, TXNM faces an immediate $800 million swing in its capital structure by repaying debt with borrowed funds.
  • CEO Don Tarry admitted the company has already spent the capital proceeds from the sale on debt paydown and equity contributions, meaning the financial benefit of undoing the deal is lost.
  • The stock sale to Blackstone has given the private equity firm a 7.59% stake in TXNM, creating public concern over a New York City firm controlling vital New Mexico infrastructure.
  • Public opposition has intensified with state politicians and activists arguing the deal is 'rigged' and calling for the government to take a 51% stake instead.
  • The controversy includes questions about whether the stock sale was intended to hide the transaction from regulators, raising concerns about transparency and public confidence in the proceeding.
Full Analysis
TXNM Energy Inc. President and CEO Don Tarry testified before a state Public Regulation Commission (PRC) hearing on Thursday that, in hindsight, seeking approval from the PRC for a $400 million stock sale to private equity firm Blackstone Inc. would have been beneficial. The May 2025 transaction involved the sale of 8 million TXNM shares and occurred before August, when TXNM and Blackstone requested official approval to allow Blackstone to acquire TXNM for $11.5 billion. This stock sale has created a significant delay in the proposed deal timeline and sparked a public debate regarding how the private equity giant would steward PNM's electric grid, which provides power to nearly half a million New Mexicans. The transaction also raised legal questions, as Prosperity Works and other groups argue it potentially violated a state law prohibiting utility company mergers without prior commission approval, while TXNM and Blackstone maintain the stock transaction was separate from the proposed acquisition. During the hearing, Gideon Elliot, an attorney for the PRC, questioned whether the issue impacts public confidence in both TXNM and its potential acquirer. Don Tarry acknowledged that conducting the sale without immediate disclosure meant investors were not alerted beforehand but insisted the parties have always been open and transparent regarding who they communicated with. He stated that the $400 million was intended to pay down TXNM debt and provide equity contributions totaling $900 million in needed capital for customer requirements, infrastructure, and loans related to PNM and TNMP. Tarry noted that voiding the transaction if ordered by the PRC would create an $800 million swing in capital structure, as repaying Blackstone would require taking on equivalent debt after the capital proceeds had already been spent. Outside the TXNM offices in Downtown Albuquerque, dozens of demonstrators gathered to protest the proposed takeover, arguing that a New York City-based private equity firm should not make decisions or profit from New Mexico’s vital infrastructure. State Sen. Harold Pope, an Albuquerque Democrat running for lieutenant governor, characterized the stock transaction as suspect and suggested the deal was already rigged, calling for the government to take a 51% stake in TXNM instead of Blackstone to shut down the process. Jonathan Juarez of Youth United for Climate Crisis Action emphasized that residents will live with the consequences of decisions made by executives in Manhattan skyscrapers, while Gabriella Gonzales highlighted that many citizens remain unaware that state laws may have been broken. The hearing underscored the tension between the companies' claim that the sale facilitates capital raising for renewable energy transitions and opponents' views that it represents an illegal transfer of utility control to billionaires who view the region as a cash cow.