Sunset On Solar Venture: PNM Resources And AEP Complete Sale Of New Mexico JV Assets
Portfolio Pulse from Nabaparna Bhattacharya
PNM Resources, Inc. (PNM) and American Electric Power Company, Inc. (AEP) completed the sale of their joint venture, New Mexico Renewable Development (NMRD), to Exus North America Holdings for $234 million. PNM's share of the proceeds is $117 million, aimed at funding regulated capital investments, while AEP nets approximately $104 million. The sale follows a challenging period for PNM, which reported a significant charge of $242.0 million in regulatory disallowances and restructuring costs. Despite a recent 2.65% increase in PNM's share price, it has experienced a 9% decline since the deal's announcement and a 22% loss over the past year.
February 28, 2024 | 10:38 am
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NEUTRAL IMPACT
PNM Resources completes sale of NMRD, receiving $117 million for regulated capital investments. Despite a recent price increase, shares have fallen 9% since the deal's announcement and over 22% in the past year.
The completion of the NMRD sale provides PNM with significant capital for investments, which could be positive. However, the stock has been under pressure due to regulatory challenges and a significant loss in value over the past year, indicating mixed short-term impacts.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
AEP nets approximately $104 million from the sale of NMRD, contributing to its cash reserves.
AEP's gain from the NMRD sale enhances its financial position by increasing cash reserves, which could be viewed positively by investors. The impact on the stock price is likely to be positive in the short term, reflecting the successful divestiture.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80