PowerPoints: TXNM/BX M&A, BE/ORCL, PPL/BX/TLN Power, AEE MO, and STDN/XE Fuel

Research evidence excerpt

PowerPoints: TXNM/BX M&A, BE/ORCL, PPL/BX/TLN Power, AEE MO, and STDN/XE Fuel

NORTH AMERICA | Power & Utilities EquityJulyResearch20, 2026

PowerPoints: TXNM/BX M&A, BE/ORCL, PPL/

BX/TLN Power, AEE MO, and STDN/XE Fuel

TXNM/BX extend merger timeline to May 2027 at -$175Mn lower potential

termination fee and allow TXNM to issue up to $400Mn equity above

$50/sh. Our latest NM stakeholder discussions cautious on the ability

to comprehensively settle the TXNM/BX transaction. Separate cautious

discussion on permit outlook for ORCL/BE Project Jupiter. PPL positive QTS

data center approval progress. AEE Missouri influence grows. STDN IPO

readthroughs to XE.

TXNM/BX: TXNM and Blackstone extend merger timeline and unwind PIPE transaction.

Termination fee cut -$175Mn. Compliance filing by end of July. TXNM Energy (TXNM) issued a

statement and 8K that it mutually extended the merger agreement with Blackstone Infrastructure

(BX) through May 31, 2027. Blackstone stated that it remains committed to working with

stakeholders. TXNM now guides to the transaction closing in 1H27 vs 2H26. TXNM released an

8K detailing that TXNM irrevocably waived $175Mn of the $350Mn termination fee. Blackstone

consented to TXNM issuing up to $400Mn common stock above $50/sh to repay the TXNM 2026

Term Loan. It is unclear as to the timing of any permanent equity financing and equity isssuances will

be a key signal.

Our base case remains merger approval but acknowledge risks have increased and our recent

stakeholder engagement suggest a settlement is increasingly unlikely now following the Show Cause

Order.

BE/TXNM: We hosted a fireside chat with one of the key intervenors in New Mexico with the

focus on Project Jupiter BE/Oracle data center approval process and TXNM proposed merger

with Blackstone.