PNM Resources (PNM) to Sell Renewable JV

PNM Resources (NYSE: PNM) has entered into an agreement to sell its 50% ownership interest in its renewable joint venture, New Mexico Renewable Development, LLC (NMRD) to Exus North America Holdings, LLC. PNM Resources and American Electric Power (AEP), which also owns 50% of NMRD, have agreed to sell the NMRD portfolio for approximately $230 million subject to true-up adjustments at close.

PNM Resources' $115 million share of the approximate gross proceeds will support the funding of regulated capital investments. The sale is expected to close in February 2024.

The NMRD portfolio includes nine operating solar developments totaling 185 MW and six projects under development with an estimated output of 440 MW. PNM Resources reports the earnings from its 50% ownership as part of the Corporate and Other segment.

The sale is subject to regulatory approval by the Federal Energy Regulatory Commission and New Mexico regulatory approvals associated with one of NMRD's projects. The waiting period for Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired.

KeyBanc Capital Markets is serving as financial advisor and Foley & Lardner LLP is serving as legal counsel to PNM Resources and AEP.

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