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Here are a few analogies for TXNM Energy:

• Like Kinder Morgan for natural gas and crude oil pipelines.
• Like Duke Energy for fossil fuel transportation.
• Like American Tower for energy infrastructure.

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• Electricity Generation: TXNM Energy produces electricity from a diverse portfolio of sources, including thermal, nuclear, and renewable energy facilities.
• Electricity Transmission and Distribution: The company owns and operates the infrastructure for transmitting high-voltage electricity and distributing it to end-use customers across its service territories.
• Natural Gas Distribution: TXNM Energy delivers natural gas to residential, commercial, and industrial customers through its extensive pipeline network.
• Renewable Energy Operations: The company develops, owns, and operates utility-scale renewable energy projects, such as solar farms and wind power facilities.

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• Residential Customers: This category includes individual households and families who consume electricity and/or natural gas for their homes. Their energy usage supports heating, cooling, lighting, appliances, and general domestic needs. Residential customers typically represent the largest number of individual accounts.
• Commercial Customers: This segment comprises various businesses, retail stores, offices, restaurants, small industries, educational institutions, and healthcare facilities. These customers utilize energy for lighting, climate control, equipment operation, and other business-specific processes.
• Industrial Customers: This category includes large manufacturing plants, heavy industries, data centers, agricultural operations, and other facilities with significant energy demands. Industrial customers often have distinct consumption patterns and may require specialized energy services or rate structures due to their high-volume usage and operational requirements.

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Don Tarry President and Chief Executive Officer

Don Tarry will become President and CEO of TXNM Energy effective July 1, 2025. He joined the company in 1996 and has held various leadership roles including Senior Vice President and Chief Financial Officer, Vice President of Customer Service, Chief Information Officer, Controller, Treasurer, and President and Chief Operating Officer.

Henry E. Monroy Senior Vice President, Chief Financial Officer

Henry E. Monroy was appointed Senior Vice President and Chief Financial Officer of TXNM Energy effective May 20, 2025. He joined the company in 2003 and has over 20 years of experience in the utility industry. His previous roles include Vice President of PNM Regulatory and Vice President and Corporate Controller from 2020 to 2023. He is a Certified Public Accountant.

Pat Collawn Executive Chair

Pat Collawn will transition to Executive Chair of TXNM Energy effective July 1, 2025. She joined TXNM Energy in June 2007 as Utilities President and became President and CEO in March 2010. Prior to joining TXNM Energy, she served as President and CEO of Public Service Company of Colorado, a subsidiary of Xcel Energy.

Brian Iverson General Counsel, Senior Vice President Regulatory and Public Policy, and Corporate Secretary

Brian Iverson joined TXNM Energy in September 2024. He oversees the legal, regulatory, public policy, and supply chain teams. Before joining TXNM Energy, he spent 20 years in various roles at Black Hills Corporation, a publicly traded utility company.

Sabrina Greinel Vice President, Treasurer and Strategy

Sabrina Greinel joined TXNM Energy in 2007. She is responsible for the company's Financing Planning and Treasury functions, as well as corporate strategy and risk management.

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1. Regulatory Approval Risk for Blackstone Acquisition: The proposed acquisition of TXNM Energy by Blackstone Infrastructure, while intended to stabilize the company's capital structure and support growth, faces significant regulatory hurdles, particularly from the New Mexico Public Regulation Commission (NMPRC). There is an acknowledged risk of the deal failing due to these regulatory challenges and potential opposition from advocacy groups, which could leave TXNM Energy needing to find alternative ways to address its capital needs.

2. Financial Risk and High Debt Burden: TXNM Energy operates with a "significant" financial risk profile, characterized by high debt levels and the need for substantial capital investments. The company has experienced considerable debt growth, with net interest expense frequently consuming a large portion of its operating income, thereby reducing earnings per share. This elevated capital spending is expected to result in continued cash flow deficits, requiring ongoing efforts to manage its financial measures.

3. New Mexico Regulatory and Operational Challenges: TXNM Energy's operations in New Mexico, primarily through its subsidiary PNM, are subject to stringent environmental regulations, including the New Mexico Energy Transition Act. This act mandates an aggressive shift towards 80% renewable energy by 2040 and 100% carbon-free generation by 2045, which may necessitate significant capital investments and potentially lead to rate increases that could face regulatory and public resistance. PNM has also encountered operational challenges and rising costs in New Mexico, impacting its earnings and the company's overall financial performance.

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TXNM Energy (symbol: TXNM) operates as an energy holding company primarily providing electricity generation, transmission, and distribution services to approximately 800,000 homes and businesses across New Mexico and Texas. The company also engages in natural gas transport.

Addressable Markets for Main Products or Services:

• Electricity Generation, Transmission, and Distribution (New Mexico and Texas):
  • New Mexico: The approximate addressable market for electricity retail sales in New Mexico was around $2.69 billion in 2023. This is based on total retail sales of 28,347,490 MWh and an average retail price of 9.47 cents per kilowatt-hour (kWh) in 2023.
  • Texas: The approximate addressable market for electricity retail sales in Texas was around $49.48 billion in 2024. This is derived from total retail sales of 505,431,317 MWh and an average retail price of 9.79 cents per kWh in 2024. The Electric Reliability Council of Texas (ERCOT) projects that electricity demand in Texas could nearly double by 2030, potentially reaching around 150 gigawatts from 85 gigawatts in 2023.
  • United States Electric Power Transmission and Distribution Market: A broader market for TXNM Energy's transmission and distribution services, the U.S. electric power transmission and distribution market was valued at USD 89.9 billion in 2024 and is projected to increase to USD 110.4 billion by 2032.
• Natural Gas Transport (United States):
  • The addressable market for natural gas in the United States is estimated to be approximately US$458.9 million in 2024, with a projected increase to US$569.3 million by 2031.

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TXNM Energy (symbol: TXNM) is expected to experience future revenue growth over the next 2-3 years driven by several key factors:

1. Regulated Rate Increases and Timely Rate Recovery: TXNM's regulated electric utilities, PNM and TNMP, are actively pursuing and implementing rate increases and timely cost recovery mechanisms. For example, the first phase of PNM's approved $105 million rate increase was put into effect on July 1, 2025, with the second phase scheduled for April 1, 2026. The company also benefits from the recovery of capital investments through TCOS and DCRF mechanisms at TNMP. These regulatory approvals and rate adjustments are crucial for increasing electric operating revenues.

2. Significant Capital Investments in Infrastructure Modernization and Renewable Energy: TXNM has outlined a substantial 5-year capital investment plan for 2025-2029 totaling $8.6 billion, including $1.3 billion in 2025. These investments are focused on grid modernization, renewable energy projects, and enhancing system resiliency across its service territories. Notably, PNM received approval for its 2028 Resource Application, which includes adding 450 megawatts of new solar and battery storage capacity by 2028. TNMP's System Resiliency Plan also involves $600 million in capital investments. These strategic capital outlays are expected to expand the regulated rate base, thereby driving future revenue growth.

3. Customer and Load Growth, Particularly in the Texas Service Territory Driven by Data Center Expansion: TXNM anticipates increased electricity demand, especially in its Texas service territory. Analysts highlight positive demographics and a significant rise in electricity demand from data centers as key growth catalysts in Texas. The company's electric system load in Texas is projected to increase at a 13% compound annual growth rate, potentially doubling by the end of the decade. This sustained customer and load growth translates directly into higher electricity sales for TXNM's utilities.

4. Enhanced Capital Resources from the Blackstone Infrastructure Merger: While the merger with Blackstone Infrastructure is expected to close in the second half of 2026, it is anticipated to enhance TXNM's capital resources. These enhanced resources are projected to allow for accelerated growth and further investment in renewable energy projects, which will contribute to the expansion of the rate base and subsequent revenue generation in the coming years.

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Share Issuance

• Blackstone Infrastructure purchased 8 million newly issued shares of TXNM Energy common stock for $400 million at $50 per share, with this issuance expected to be completed in June 2025.
• TXNM Energy anticipates issuing an additional $400 million of equity prior to the closing of its acquisition by Blackstone Infrastructure, expected in the second half of 2026.
• In 2024, the company fulfilled approximately $100 million in equity needs through an At-The-Market (ATM) program and sold an additional $50 million of equity in Q4 2024 for settlement in 2025.

Inbound Investments

• On May 19, 2025, TXNM Energy announced an agreement to be acquired by Blackstone Infrastructure for $61.25 per share in cash, representing a total enterprise value of $11.5 billion.
• Shareholders overwhelmingly approved this acquisition on August 28, 2025, with 99.6 percent of shares voted in favor, and the transaction is estimated to close in the second half of 2026, pending regulatory approvals.

Capital Expenditures

• TXNM Energy forecasts $7.8 billion in capital investments for the period 2025-2029, which is a 26% increase over its previous five-year plan.
• The projected construction expenditures for 2025 alone are $1,321.3 million.
• These capital expenditures are primarily focused on investments in transmission and distribution infrastructure, upgrading generation resources for clean energy goals, and supporting customer demand and load growth in Texas, particularly from data centers.