PPL Corporation and Blackstone Infrastructure, identified by the ticker BX, have partnered to create a joint venture aimed at establishing new gas-fired, combined-cycle power plants. These plants will cater specifically to data centers via long-term energy service agreements. The announcement took place at the Pennsylvania Energy and Innovation Summit in Pittsburgh.
The venture focuses on deploying front-of-the-meter generation facilities strategically located over the Marcellus and Utica shale formations. The sites are chosen for their proximity to substantial gas pipeline resources and their appeal to the data center market. The plan is designed to mitigate exposure to energy price fluctuations by maintaining agreements that mimic regulated risk levels.
Currently, the joint venture is engaged with landowners, pipeline companies, and turbine manufacturers, having secured several land parcels necessary for the projects. However, no formal energy service agreements with large-scale users, or hyperscalers, have been finalized yet. PPL holds a 51% stake in this endeavor, while Blackstone Infrastructure controls the remaining 49%, with expenses and distributions to be shared proportionately.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Blackstone Inc (BX, Financial) is $161.07 with a high estimate of $202.00 and a low estimate of $132.00. The average target implies an upside of 0.40% from the current price of $160.43. More detailed estimate data can be found on the Blackstone Inc (BX) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, Blackstone Inc's (BX, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Blackstone Inc (BX, Financial) in one year is $208.83, suggesting a upside of 30.17% from the current price of $160.43. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Blackstone Inc (BX) Summary page.
BX Key Business Developments
Release Date: April 17, 2025
- GAAP Net Income: $1.2 billion for the first quarter.
- Distributable Earnings: $1.4 billion, or $1.09 per common share.
- Dividend Declared: $0.93 per common share.
- Fee-Related Earnings Growth: 9% year-over-year.
- Assets Under Management (AUM): Increased 10% year-over-year to nearly $1.2 trillion.
- Inflows: $62 billion in Q1, highest level in three years.
- Management Fees: Increased 11% to a record $1.9 billion in Q1.
- Net Realizations Increase: 22% year-over-year.
- Performance Revenue Eligible AUM: Reached a record $583 billion, up 13% year-over-year.
- Infrastructure Appreciation: 7.5% in the quarter and 24% for the last 12 months.
- Corporate Private Equity Funds Appreciation: 1.1% in the quarter and 14% for the last 12 months.
- Non-Investment Grade Private Credit Strategies Return: 2.7% in the quarter and 15% for the last 12 months.
- Core Plus Real Estate Funds Appreciation: 1.2% in the first quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Blackstone Inc (BX, Financial) reported strong first-quarter results with distributable earnings up 11% year-over-year to $1.4 billion.
- The company raised $62 billion in inflows in Q1, the highest level in three years, contributing to a record $1.2 trillion in assets under management.
- Blackstone's private credit business has expanded significantly, with $465 billion in assets, driven by strong performance and structural tailwinds.
- The firm's private wealth platform continues to grow, with $270 billion in assets, and new strategic alliances with Wellington and Vanguard aim to democratize private markets.
- Blackstone's infrastructure platform saw a 36% year-over-year increase in assets under management, with strong performance in data centers and other areas.
Negative Points
- Uncertainty around tariffs and their potential impact on economic growth and inflation poses risks to investor sentiment and market conditions.
- Realization activity is expected to be affected by policy-driven uncertainty and market volatility, potentially impacting near-term earnings.
- The direct first-order exposure to tariffs is limited, but there are potential material impacts on a small group of portfolio companies.
- The IPO market is currently challenging, with conditions being the toughest among capital markets, affecting potential exits.
- The North American institutional channel faces fundraising headwinds due to continued realization challenges and a mature market environment.
