Why Energy Holding Company PNM Resources Shares Are Sliding Today
Portfolio Pulse from Shivani Kumaresan
Avangrid Inc (AGR) has terminated its merger agreement with PNM Resources (PNM) due to the failure to receive all final regulatory approvals by December 31, 2023. The merger, which has been in progress since 2020, was expected to bring over $300 million in benefits to PNM's consumers and communities. Despite obtaining necessary approvals, except from the New Mexico Public Regulation Commission, the merger's future remained uncertain. Avangrid will now focus on its growth opportunities, including over $9 billion in incremental capital projects. Avangrid reaffirmed its 2023 EPS guidance, while PNM Resources will provide a financial update on February 6, 2024. PNM shares dropped 3.87% in premarket trading.
January 02, 2024 | 11:31 am
News sentiment analysis
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NEGATIVE IMPACT
PNM Resources shares fell by 3.87% premarket after Avangrid terminated the merger agreement. PNM will provide a financial update on February 6, 2024, including preliminary 2023 results and 2024 guidance.
The termination of the merger is a direct negative impact on PNM's stock price in the short term, as reflected by the premarket trading decline. The upcoming financial update may provide further direction.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Avangrid Inc has terminated its merger with PNM Resources due to lack of regulatory approval, reaffirmed its 2023 EPS guidance, and will focus on growth opportunities with over $9 billion in capital projects.
While the termination of the merger with PNM is a setback, Avangrid's reaffirmation of its EPS guidance and focus on significant growth projects may balance out investor sentiment in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80