Core Viewpoint - Dakota Gold Corp. has appointed Brian G. Iverson to its Board of Directors, enhancing the company's strategic leadership as it advances exploration and development initiatives in South Dakota's Homestake District [1][3]. Group 1: Appointment Details - Brian G. Iverson brings over 30 years of experience in legal, financial, regulatory, and corporate governance functions, particularly within South Dakota [1][2]. - Iverson currently serves as General Counsel and Senior Vice President of Regulatory and Public Policy for TXNM Energy, overseeing legal operations and regulatory functions [2]. - His previous roles include significant executive positions at Black Hills Corporation, where he led financing initiatives and regulatory strategies [3]. Group 2: Company Strategy and Goals - Dakota Gold aims to revitalize exploration in the Homestake District, focusing on the Richmond Hill and Maitland Gold Projects [4]. - The company plans to advance the Richmond Hill Oxide Heap Leach Gold Project to commercial production by 2029 and outline resources at the Maitland Gold Project [5]. Group 3: Leadership and Expertise - The Co-Chairs of Dakota Gold expressed confidence in Iverson's expertise in corporate strategy, capital markets, and stakeholder engagement, which aligns with the company's goals for responsible exploration and long-term value creation [3]. - Iverson is recognized as a NACD Board Leadership Fellow and holds multiple degrees, including a Juris Doctor and an MBA from the University of South Dakota [4].

Core Viewpoint - The acquisition of TXNM Energy by Blackstone Infrastructure has received approval from the US Federal Energy Regulatory Commission (FERC), aligning with public interest and ensuring regulatory protections are in place [1][2]. Regulatory Approvals - The FERC found no evidence that the acquisition would compromise state or federal regulations, customer rates, or market competition [2] - The acquisition has also received federal clearance from the Federal Communications Commission, and the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has expired without objections [3]. Shareholder and Public Utility Commission Support - TXNM Energy shareholders voted overwhelmingly in favor of the acquisition in August 2025 [4] - The Public Utility Commission of Texas (PUCT) approved a settlement that includes $45 million in rate credits for customers and enhanced governance standards [4]. Agreement Provisions - The settlement includes provisions for workforce guarantees, continued funding for TXNM Energy's five-year capital expenditure program, and commitments to serve Texas communities [5]. - The agreement involves various stakeholders, including municipalities served by TNMP and the Texas Energy Association for Marketers [5]. Pending Approvals - Federal approval from the Nuclear Regulatory Commission and state consent from the New Mexico Public Regulation Commission are still required before the transaction can close [6]. - The acquisition values TXNM Energy at approximately $11.5 billion, with Blackstone Infrastructure set to acquire all outstanding shares at $61.25 per share in cash [6]. Service Provision Plans - TXNM Energy's subsidiaries have committed to maintaining regulated service provision under existing state and federal oversight [7].

Core Insights - TXNM Energy has a 2.8% dividend yield, but its sustainability is questioned due to negative free cash flow and reliance on debt for dividend payments [1][2] Dividend Profile - TXNM Energy paid $140.3 million in dividends in 2024, with a quarterly payout increase from $0.4075 to $0.4225, marking a 3.7% rise [1] - The company has a 27-year history of uninterrupted dividend payments, with a total growth of 92% in dividends from $0.22 in 2016 to $0.4225 in early 2026, reflecting a compound annual growth rate of approximately 6.8% [1] - The current stock price of $59.39 results in an annualized dividend of $1.63, yielding 2.76%, slightly above the Utilities Select Sector SPDR ETF's yield of 2.75% [1] Cash Flow Issues - TXNM generated $508.2 million in operating cash flow in 2024 but had negative free cash flow of $738.9 million due to $1.25 billion in capital expenditures [1] - The company has consistently reported negative free cash flow from 2019 to 2024, with a free cash flow coverage ratio of only 0.19x for dividends [1] - Capital expenditures have increased significantly, from 122% of operating cash flow in 2019 to 245% in 2024, driven by infrastructure investments [1] Earnings Quality - TXNM reported a net income of $242.7 million in 2024, a 174.6% increase from $88.3 million in 2023, with net margin improving from 4.6% to 12.3% [1] - The payout ratio based on Q4 2025's GAAP EPS of $1.22 exceeds 133%, indicating a troubling reliance on earnings for dividend payments [1] - Interest expenses rose to $228.1 million in 2024, consuming 11.6% of revenue, which competes with dividend payments for available cash [1] Acquisition Context - TXNM is undergoing a $11.5 billion acquisition by Blackstone, pending regulatory approvals, which could impact dividend policies post-acquisition [1][2] - The acquisition has received shareholder and state regulatory approval, but federal approvals are still pending, creating uncertainty for investors [1] Balance Sheet Strength - TXNM's shareholders' equity increased by 28.76% year-over-year to $3.18 billion, with total assets reaching $11.68 billion, up 7.67% [2] - The debt-to-equity ratio stands at approximately 2.66x, which is manageable for regulated utilities given their predictable cash flows [2] Total Return Performance - TXNM shares have appreciated by 22.03% over the past year, with five-year and ten-year returns of 43.19% and 150.11%, respectively, indicating strong capital gains [2] - The price performance reflects optimism about growth prospects in Texas, driven by demographic growth and electricity demand [2] Conclusion - While TXNM has a strong historical dividend payment record, current financial challenges raise concerns about the sustainability of its dividend, particularly given its reliance on external financing and negative free cash flow [2]

Core Insights - Data center investments are a significant growth driver for Blackstone, particularly through its acquisition of QTS, which has become the largest contributor to the company's portfolio gains in 2025 [2][6] - The firm reported a total of $239 billion in inflows for the year, the highest since 2021, largely driven by investor interest in artificial intelligence [3] - Blackstone's infrastructure platform, bolstered by data center appreciation, grew by 40% to $77 billion, with returns of 8.4% for the quarter and 23.5% for the year [4] Investment Performance - Blackstone Real Estate Income Trust (BREIT), valued at $54 billion, achieved an 8.1% return, significantly outperforming its sector benchmark, and is heavily invested in QTS [5] - Real estate investments overall were the weakest segment, with opportunistic strategies showing a 0.6% loss and core assets gaining 3% [5] Strategic Focus - Blackstone plans to continue investing in digital infrastructure, including data centers and private credit, as part of its broader investment strategy [6][7] - The firm has invested in AI developers and energy providers to support the growing demand for AI infrastructure, including a notable $11.5 billion acquisition of TXNM Energy [10] Financial Metrics - Blackstone reported $14.5 billion in revenue for the year, reflecting a 9% increase, and $4.4 billion for the quarter, marking a 42% rise [11] - The private credit portfolio increased by 30% to $130 billion, although there were concerns about redemption upticks related to default risks [8]

Core Insights - Investment banking fees significantly boosted the profits of Wall Street banks in Q3, primarily driven by a resurgence in mergers and acquisitions and initial public offerings [1][2] - Goldman Sachs emerged as the leading firm in this environment, outperforming its competitors in investment banking fees [1][3] Investment Banking Performance - Goldman Sachs generated $2.6 billion in investment banking fees during Q3, marking a 42% year-over-year increase [3] - Other banks also reported increases in investment banking fees: JPMorgan Chase saw a 16% rise to $2.6 billion, Citigroup's fees increased by 17% to $1.2 billion, and Wells Fargo's fees rose by 25% to $840 million [3] Market Conditions - The revival in deal-making is attributed to buoyant equity markets, anticipated interest-rate cuts, and a regulatory environment favoring lighter regulations [2] - The year 2025 is highlighted as a pivotal time for mergers and acquisitions and initial public offerings, following a prolonged downturn [2] Major Deals - Notable transactions include the $55 billion buyout of Electronic Arts, Thoma Bravo's $10.6 billion acquisition of Boeing's digital aviation unit, and Blackstone's $11.5 billion acquisition of TXNM Energy [3] Operational Challenges - Despite strong performance, Goldman Sachs faced a 14% increase in operating costs, driven by rising compensation expenses [3] - The firm is exploring efficiencies, including plans to lay off approximately 1,000 low performers and implement AI in certain roles, while still aiming for a net increase in headcount by year-end [3]

Core Insights - The Minnesota Public Utilities Commission (PUC) unanimously approved the $6.2 billion sale of Allete to the Canada Pension Plan Investment Board and Blackrock's Global Infrastructure Partners, determining that the benefits to ratepayers outweighed the risks associated with private equity ownership [6]. Group 1: Deal Overview - The review of the Allete deal focused on its public interest implications, particularly in light of ongoing discussions regarding private equity acquisitions in the utility sector [3]. - The deal includes a commitment from CPP Investments and GIP to fund Allete's $5 billion, five-year capital plan and provide $50 million for clean power initiatives, with total benefits to ratepayers estimated at $200 million [4]. Group 2: Regulatory Conditions - Under the agreement, Minnesota Power will freeze its base rates for one year and reduce its return on equity (ROE) from 9.78% to 9.65% until the next rate case, with a cap of 9.78% ROE through 2030 [5]. - Additional provisions in the agreement establish quality of service, reporting, and governance requirements, which helped alleviate some concerns regarding the transaction [5]. Group 3: Stakeholder Perspectives - PUC Commissioner Audrey Partridge expressed serious concerns about private equity ownership of public utilities, citing its negative reputation [4]. - Commissioner Joe Sullivan acknowledged the near- and medium-term benefits of the deal but raised concerns about potential long-term implications [6].

TXNM Energy Conference Call Summary Company and Industry - **Company**: TXNM Energy - **Acquirer**: Blackstone Infrastructure - **Industry**: Energy and Infrastructure Key Points and Arguments 1. **Acquisition Announcement**: TXNM Energy announced its agreement to be acquired by Blackstone Infrastructure, emphasizing the need for scale in the business while maintaining operations of TXNM Energy, PNM, and TNMP intact [2][3][4] 2. **Financial Strength**: The acquisition is expected to enhance TXNM's financial strength, allowing for better service to customers and maintaining investment-grade credit metrics without the challenges of current capital markets [5][6] 3. **Shareholder Compensation**: Upon closing, shareholders will receive $61.25 per share in cash, representing a 23% premium over the unaffected stock price and a 15.8% premium over the last closing price, with a total enterprise value of $11.5 billion [6][14] 4. **Blackstone's Investment Approach**: Blackstone Infrastructure has a successful track record with $60 billion in infrastructure assets under management, focusing on long-term partnerships and community support [7][8] 5. **Commitment to Employees and Communities**: The acquisition agreement includes commitments to keep TXNM Energy, PNM, and TNMP locally operated, with no workforce reductions or changes in compensation and benefits for at least two years post-transaction [12][13] 6. **Regulatory Process**: The transaction is subject to state and federal regulatory approvals, with expected completion in the second half of 2026. TXNM plans to engage stakeholders in Texas and New Mexico before filing [16][22] 7. **Equity Financing**: Blackstone Infrastructure will provide $400 million of upfront investments through the purchase of newly issued shares, with an additional $400 million to be issued before closing, alleviating financing pressures during the regulatory process [14][38] 8. **Dividend Policy**: TXNM Energy plans to continue paying dividends during the transaction process, subject to board approval, with the potential for growth in line with current plans [15][30] Other Important Content 1. **Termination Fees**: The termination fee for TXNM Energy is set at $210 million, while Blackstone's fee is $350 million [31] 2. **Net Benefit States**: Both New Mexico and Texas are classified as net benefit states for the transaction, which may facilitate the approval process [34] 3. **Management Transition**: Henry Monroy has been appointed as the new Senior Vice President and Chief Financial Officer, succeeding Lisa Eaton [18] This summary encapsulates the critical aspects of the TXNM Energy conference call, highlighting the strategic implications of the acquisition and its anticipated benefits for stakeholders.

Transaction Overview - Blackstone Infrastructure 将以每股 61.25 美元的价格收购 TXNM Energy，总企业价值为 115 亿美元[10] - 该价格较未受影响的股价溢价 23%[10] - TXNM Energy 预计在交易完成前发行 8 亿美元的股权[10] Benefits and Commitments - TXNM Energy、PNM 和 TNMP 将保持本地管理和运营[10, 16, 17] - 总部将保留在新墨西哥州和德克萨斯州[10, 17] - 员工将被保留，工会合同将得到尊重[10, 16] - 现有管理团队将留任[10, 17] - 承诺保持 PNM 和 TNMP 的投资级信用评级[10] Financing Details - Blackstone Infrastructure 将通过购买 800 万股 TXNM 新发行的普通股投资 4 亿美元的股权[18] - 预计 TXNM Energy 在交易完成前额外发行 4 亿美元的股权[18] - 该交易以股权和现有债务承担提供资金，不会发行增量债务[18] Approval Process and Timeline - 预计在获得监管部门批准后，将于 2026 年下半年完成[19] - 预计在 60 天内发出委托书[21] - 需要股东批准[19, 21] - 需要获得多个监管机构的批准，包括 NMPRC、PUCT、FERC、司法部和核管理委员会[20, 21]

Key Points - 30-year US Treasury yield surpasses 5%, leading to a decline in the US dollar [2] - Atlanta Federal Reserve President warns of inflation risks, indicating a preference for one rate cut this year [2] Company News - TXNM Energy announces that Blackstone Group's infrastructure fund has agreed to acquire the utility company for $61.25 per share, with a total enterprise value of $11.5 billion including net debt [2] - Nvidia is reportedly in deep negotiations to invest in quantum computing startup PsiQuantum [2] - TSMC plans to increase prices for advanced processes, with a 10% price hike for 2nm wafers [2] - Qualcomm announces plans to develop custom data center CPUs designed to connect with Nvidia's AI chips, marking its re-entry into the server processor market [2] - FDA approves Novavax's COVID-19 vaccine for older adults and individuals aged 12 and above [2] - Sohu reports Q1 total revenue of $136 million, with net loss narrowing by over 20% year-on-year, exceeding previous best expectations for marketing services revenue and group net loss, while online gaming revenue also surpassed expectations [2] - Niu Technologies reports Q1 revenue of 682 million RMB, a year-on-year increase of 35.1%, with a net loss of 38.8 million RMB and a 57.4% increase in electric scooter sales [2]

Financial Data and Key Metrics Changes - Ongoing earnings for Q1 2025 were reported at $0.19 per share, aligning with expectations and reflecting the midyear implementation of new rates at PNM [5][23] - The company affirmed its guidance for 2025, projecting earnings per share in the range of $2.74 to $2.84, with a long-term EPS growth target of 7% to 9% [6][27] Business Line Data and Key Metrics Changes - TNMP set a new system peak in Q1, 22% higher than the previous year's peak, with demand-based load increasing by 9.7%, driven by growth in North and West Texas [10][11] - Data center load increased by 70 megawatts in Q1, with expectations of an additional 150 megawatts by year-end [11] Market Data and Key Metrics Changes - Interconnection requests rose by 6% compared to Q1 of the previous year, particularly in the Gulf Coast area, indicating continued growth expectations [11] - The New Mexico legislative session concluded with key bills aimed at expediting infrastructure build-out to attract new businesses [8][9] Company Strategy and Development Direction - The company is focused on a five-year capital plan that supports growth in Texas, with investments projected to increase from $600 million this year to over $1 billion starting in 2028 [13] - The regulatory agenda includes upcoming filings for rate reviews and resource applications, with a focus on balancing system needs and customer rate impacts [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute growth plans, emphasizing the importance of size and scale in financing large capital expenditures [37] - The company is optimistic about the impact of recent legislation on its operations and financial performance, particularly regarding the Permian transmission projects [32][66] Other Important Information - The company has not made changes to its five-year capital investment plan, maintaining a focus on customer rate impacts while addressing system needs [19][24] - The upcoming regulatory agenda includes decisions on rate reviews and resource applications, with a target for new rates implementation in Q2 of next year [15][20] Q&A Session Summary Question: Impact of House Bill 5,247 on TNMP - Management confirmed that House Bill 5,247 would be beneficial to TNMP, allowing for the grouping of costs and reducing regulatory lag [34] Question: Update on Rate Design and Capital Structure for TNMP - The major drivers of the upcoming TNMP base rate case will primarily focus on rate design, with the current capital structure being 45% equity [45][46] Question: Confidence in Execution Timeline for Permian Basin CapEx - Management expressed confidence in delivering approximately $750 million of capital, with CCNs to be filed early next year [48] Question: RFP at PNM and Targeted Ownership - The RFP process in New Mexico is progressing as expected, with an independent evaluator involved to justify resource needs [57] Question: Impact of Tariffs on Capital Plan - Management indicated that tariffs are expected to have about a 2% impact on the capital plan, consistent with other utilities [59] Question: Incremental Investment Opportunities in Transmission Development - Management noted that the overall statewide transmission investment need is approximately $4 billion over the next twenty years [60]