TXNM ENERGY INC

TXNM Energy, Inc.'s wholly-owned subsidiary, Public Service Company of New Mexico (PNM), entered into a new $195.0 million term loan agreement on July 21, 2026. The loan, with Canadian Imperial Bank of Commerce as Administrative Agent, is set to mature on January 21, 2028. PNM intends to use the proceeds to refinance its existing 2025 term loan, which matures on the same date. The agreement includes customary covenants, such as maintaining a consolidated debt-to-consolidated capitalization ratio of 0.65 to 1.00 or less.

TXNM Energy and Blackstone Infrastructure have extended their merger agreement termination date to May 31, 2027, to allow more time for regulatory approvals. This follows the New Mexico Public Regulation Commission (NMPRC) declaring a previously executed $400 million PIPE transaction void. To unwind the voided transaction, TXNM Energy has secured a $400 million term loan and plans to issue common stock to repay this loan, with a compliance report due to the NMPRC by the end of July 2026. TXNM also waived $175 million of the $350 million Parent Termination Fee.

The New Mexico Public Regulation Commission (NMPRC) issued a final order declaring TXNM Energy's $400 million PIPE Transaction void and of no effect. The NMPRC ruled that the transaction, which involved the purchase of 8 million shares at $50.00 each, violated New Mexico law due to lack of prior authorization. The commission ordered the transaction to be unwound within 45 days, imposed a total penalty of $300,000 on TXNM, Parent, and Purchaser, and stayed the procedural schedule for the merger application.

TXNM Energy's subsidiary, Texas-New Mexico Power Company (TNMP), filed a comprehensive rate settlement with the Public Utility Commission of Texas, recovering a $2.8 billion rate base and maintaining a 9.65% return on equity. Separately, its subsidiary Public Service Company of New Mexico (PNM) submitted an application to the New Mexico Public Regulatory Commission for approval of resources to advance carbon-free generation, including 800 MW wind, 240 MW solar, 610 MW battery storage, and 40 MW natural gas, as part of its $4.9 billion 5-year investment plan. This plan aims to eliminate coal as a generation source by 2031 and meet a projected 40% increase in customer demand by 2032.

TXNM Energy Inc. reported a significant decrease in net earnings attributable to the company for the first quarter of 2026, falling to $3.74 million from $8.92 million in the prior year. This resulted in a basic earnings per share of $0.03, down from $0.10. Despite the earnings decline, electric operating revenues increased by 4.6% to $504.98 million, and the company declared a higher common stock dividend of $0.4225 per share.

TXNM Energy Inc. filed its definitive proxy statement for the 2026 Annual Meeting of Shareholders on June 10, 2026. The filing provides an update on the proposed merger with Blackstone Infrastructure, which was approved by shareholders in August 2025 and is expected to close in H2 2026, pending remaining regulatory approvals. Shareholders will vote on director elections, auditor ratification, and executive compensation, while the company also highlighted 2025 earnings of $2.33 per diluted share and a dividend increase.