8-K
TXNM ENERGY INC (TXNM)
| UNITED STATES | ||||
|---|---|---|---|---|
| SECURITIES AND EXCHANGE COMMISSION | ||||
| Washington, D.C. 20549 | ||||
| FORM | 8-K | |||
| CURRENT REPORT | ||||
| Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 | Date of Report (Date of earliest event reported) | November 4, 2022 | ||
| --- | --- | |||
| (November 4, 2022) | Name of Registrant, State of Incorporation, Address Of Principal Executive Offices, Telephone Number, Commission File No., IRS Employer Identification No. | |||
| --- |
PNM Resources, Inc.
(A New Mexico Corporation)
414 Silver Ave. SW
Albuquerque, New Mexico 87102-3289
Telephone Number - (505) 241-2700
Commission File No. - 001-32462
IRS Employer Identification No. - 85-0468296
Public Service Company of New Mexico
(A New Mexico Corporation)
414 Silver Ave. SW
Albuquerque, New Mexico 87102-3289
Telephone Number - (505) 241-2700
Commission File No. - 001-06986
IRS Employer Identification No. - 85-0019030
Texas-New Mexico Power Company
(A Texas Corporation)
577 N. Garden Ridge Blvd.
Lewisville, Texas 75067
Telephone Number - (972) 420-4189
Commission File No. - 002-97230
IRS Employer Identification No. - 75-0204070
____________________________________________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 40.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 40.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Registrant | Title of each class | Trading Symbol(s) | Name of exchange on which registered |
|---|---|---|---|
| PNM Resources, Inc. | Common Stock, no par value | PNM | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 4, 2022, PNM Resources, Inc., Public Service Company of New Mexico, and Texas-New Mexico Power Company (collectively, the “Company”) issued a press release announcing results of operations for the three and nine months ended September 30, 2022. The press release is furnished herewith as Exhibit 99.1 and incorporated by reference herein.
The Company's press release and other communications from time to time may include certain financial measures that are not determined in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A “non-GAAP financial measure” is defined as a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the company's financial statements.
Non-GAAP financial measures utilized by the Company include presentations, on an ongoing basis, of revenues, operating expenses, operating income, other income and deductions, earnings, and earnings per share. The Company uses ongoing earnings and ongoing earnings per diluted share (or ongoing diluted earnings per share) to evaluate the operations of the Company and to establish goals, including those used for certain aspects of incentive compensation, for management and employees. Certain non-GAAP financial measures utilized by the Company exclude the impact of net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, pension expense related to previously disposed of gas distribution business, and certain non-recurring, infrequent, and other items. The Company's management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of fundamental changes in the earnings capacity of the Company's operations. Management also believes that the presentation of the non-GAAP financial measures is largely consistent with its past practice, as well as industry practice in general, and will enable investors and analysts to compare current non-GAAP measures with non-GAAP measures with respect to prior periods.
The non-GAAP financial measures used by the Company should not be considered in isolation from or as a substitute for measures of performance prepared in accordance with GAAP.
The Company uses ongoing earnings guidance to provide investors with management's expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. Since the future differences between GAAP and ongoing earnings are frequently outside the control of the Company, management is generally not able to estimate the impact of the reconciling items between forecasted GAAP earnings and ongoing earnings guidance, nor their probable impact on GAAP earnings without unreasonable effort; therefore, management is generally not able to provide a corresponding GAAP equivalent for forecasted ongoing earnings guidance. Reconciling items may include revenues and expenses resulting from transactions that do not occur in the normal course of the Company's business operations, as well as net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, and pension expense related to previously disposed of gas distribution business as discussed above.
Limitation on Incorporation by Reference
In accordance with general instruction B.2 of Form 8-K, the information in this report, including exhibits, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section and not deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
Exhibit Number Description
99.1 Press Release datedNovemberex99111042022earningsrelea.htm4, 2022.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.
| PNM RESOURCES, INC. | |
|---|---|
| TEXAS-NEW MEXICO POWER COMPANY | |
| (Registrants) | |
| Date: November 4, 2022 | /s/ Henry E. Monroy |
| Henry E. Monroy | |
| Vice President and Corporate Controller | |
| (Officer duly authorized to sign this report) |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| PUBLIC SERVICE COMPANY OF NEW MEXICO | |
|---|---|
| (Registrant) | |
| Date: November 4, 2022 | /s/ Henry E. Monroy |
| Henry E. Monroy | |
| Vice President, Regulatory and Corporate Controller | |
| (Officer duly authorized to sign this report) |
Document
Exhibit 99.1
ALBUQUERQUE, N.M.
November 4, 2022
PNM Resources Reports Third Quarter 2022 Results
2022 Ongoing Earnings Guidance Raised
•2022 third quarter GAAP earnings of $1.42 per diluted share
•2022 third quarter ongoing earnings of $1.46 per diluted share
•2022 ongoing earnings guidance range raised to $2.63 - $2.68
•2023 ongoing earnings guidance range maintained at $2.60 - $2.75
PNM Resources (In millions, except EPS)
| Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | |
|---|---|---|---|---|
| GAAP net earnings attributable to PNM Resources | $122.4 | $113.3 | $153.8 | $184.6 |
| GAAP diluted EPS | $1.42 | $1.32 | $1.78 | $2.14 |
| Ongoing net earnings | $126.1 | $118.0 | $218.9 | $193.3 |
| Ongoing diluted EPS | $1.46 | $1.37 | $2.54 | $2.25 |
PNM Resources (NYSE: PNM) today released its 2022 third quarter results and raised its full-year 2022 consolidated ongoing earnings guidance range to $2.63 to $2.68 per diluted share. Consolidated ongoing earnings guidance for 2023 was maintained at a range of $2.60 to $2.75 per diluted share.
“Results for the third quarter were driven by increased demand at TNMP, PNM and across the Western region,” said Pat Vincent-Collawn, PNM Resources chairman and CEO. “We remain committed to our customers, community and the environment as we work to support growing needs across Texas and New Mexico.”
“The end of the third quarter also marked the end of our San Juan Generating Station operations, reducing coal generation to less than 10% of PNM’s generation portfolio capacity as we follow through on our plans to exit coal and fully eliminate carbon emissions by 2040,” added Vincent-Collawn.
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PNM Resources Q3 2022 Earnings 11-4-22 p. 2 of 4
SEGMENT REPORTING OF 2022 THIRD QUARTER EARNINGS
•PNM – a vertically integrated electric utility in New Mexico with distribution, transmission and generation assets.
•TNMP – an electric transmission and distribution utility in Texas.
•Corporate and Other – reflects the PNM Resources holding company and other subsidiaries.
EPS Results by Segment
| GAAP Diluted EPS | ||||
|---|---|---|---|---|
| Q3 2022 | Q3 2021 | Q3 2022 | Q3 2021 | |
| PNM | $1.13 | 1.01 | $1.17 | $1.05 |
| TNMP | $0.36 | 0.33 | $0.36 | $0.33 |
| Corporate and Other | ($0.07) | (0.02) | ($0.07) | ($0.01) |
| Consolidated PNM Resources | $1.42 | 1.32 | $1.46 | $1.37 |
All values are in US Dollars.
Net changes to GAAP and ongoing earnings in the third quarter of 2022 compared to the third quarter of 2021 include:
•PNM: Increased transmission margins due to higher system demand and new customers, including the Western Spirit transmission contract, higher market prices and increased usage due to load growth and weather were partially offset by realized losses in decommissioning and reclamation trusts.
•TNMP: Increased usage due to load growth and weather, along with rate recovery through Transmission Cost of Service (TCOS) and Distribution Cost of Service (DCOS) increases, were partially offset by higher depreciation and property tax expense associated with new capital investments and higher O&M expenses.
•Corporate and Other: Higher interest rates on variable rate debt increased losses.
In addition, GAAP earnings decreased in the third quarter of 2022 resulting from $11.2 million in net unrealized losses on investment securities for decommissioning and reclamation trusts compared to $2.5 million in net unrealized losses in the third quarter of 2021.
Additional materials with information on quarterly results are available at http://www.pnmresources.com/investors/results.cfm.
STATUS OF MERGER
On January 3, 2022, PNM Resources and AVANGRID announced an amendment and extension of their merger agreement through April 20, 2023, and an appeal of the NMPRC decision with the New Mexico Supreme Court. The Court’s briefing schedule concluded in August 2022. No response has been provided on the companies’ request for oral argument. There is no statutory deadline for the Court to respond to the request for oral argument nor to act on the appeal.
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PNM Resources Q3 2022 Earnings 11-4-22 p. 3 of 4
THIRD QUARTER CONFERENCE CALL: 11 A.M. EASTERN FRIDAY, NOVEMBER 4
PNM Resources will discuss these items during a live conference call and webcast on Friday, November 4th at 11 a.m. Eastern. Speaking on the call will be Pat Vincent-Collawn, PNM Resources Chairman and Chief Executive Officer, Don Tarry, PNM Resources President and Chief Operating Officer, and Lisa Eden, PNM Resources Senior Vice President and Chief Financial Officer.
The conference call will be simultaneously broadcast and archived on our website at http://www.pnmresources.com/investors/events-and-presentations. Listeners are encouraged to visit the website at least 30 minutes before the event to register, download and install any necessary audio software.
Investors and analysts can participate in the live conference call by pre-registering using the following link to receive a special dial-in number and PIN: https://dpregister.com/sreg/10172346/f4d6d71520. Telephone participants who are unable to pre-register may participate in the live conference call by dialing (877) 276-8648 or (412) 317-5474 fifteen minutes prior to the event and referencing “the PNM Resources third quarter earnings call”.
Supporting material for PNM Resources’ earnings announcements can be viewed and downloaded at http://www.pnmresources.com/investors/results.cfm.
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2021 consolidated operating revenues of $1.8 billion. Through its regulated utilities, PNM and TNMP, PNM Resources provides electricity to approximately 800,000 homes and businesses in New Mexico and Texas. PNM serves its customers with a diverse mix of generation and purchased power resources totaling 2.7 gigawatts of capacity, with a goal to achieve 100% emissions-free generation by 2040. For more information, visit the company's website at www.PNMResources.com.
CONTACTS:
Analysts Media
Lisa Goodman Ray Sandoval
(505) 241-2160 (505) 241-2782
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PNM Resources Q3 2022 Earnings 11-4-22 p. 4 of 4
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release for PNM Resources, Inc. (“PNMR”), Public Service Company of New Mexico (“PNM”), or Texas-New Mexico Power Company (“TNMP”) (collectively, the “Company”) that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies, including the unaudited financial results and earnings guidance, are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates and apply only as of the date of this report. PNMR, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR's, PNM's, and TNMP's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. Additionally, there are risks and uncertainties in connection with the proposed acquisition of us by AVANGRID which may adversely affect our business, future opportunities, employees and common stock, including without limitation, (i) the expected timing and likelihood of completion of the pending Merger, including the timing, receipt and terms and conditions of any remaining required governmental and regulatory approvals of the pending Merger that could reduce anticipated benefits or cause the parties to abandon the transaction, (ii) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (iii) the risk that the parties may not be able to satisfy the conditions to the proposed Merger in a timely manner or at all, and (iv) the risk that the proposed transaction could have an adverse effect on the ability of PNMR to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company’s Form 10-K, Form 10-Q filings and the information included in the Company’s Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.
Non-GAAP Financial Measures
GAAP refers to generally accepted accounting principles in the U.S. Ongoing earnings is a non-GAAP financial measure that excludes the impact of net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, pension expense related to previously disposed of gas distribution business, and certain non-recurring, infrequent, and other items that are not indicative of fundamental changes in the earnings capacity of the Company's operations. The Company uses ongoing earnings and ongoing earnings per diluted share to evaluate the operations of the Company and to establish goals, including those used for certain aspects of incentive compensation, for management and employees. While the Company believes these financial measures are appropriate and useful for investors, they are not measures presented in accordance with GAAP. The Company does not intend for these measures, or any piece of these measures, to represent any financial measure as defined by GAAP. Furthermore, the Company’s calculations of these measures as presented may or may not be comparable to similarly titled measures used by other companies. The Company uses ongoing earnings guidance to provide investors with management's expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. Since the future differences between GAAP and ongoing earnings are frequently outside the control of the Company, management is generally not able to estimate the impact of the reconciling items between forecasted GAAP net earnings and ongoing earnings guidance, nor their probable impact on GAAP net earnings without unreasonable effort, therefore, management is generally not able to provide a corresponding GAAP equivalent for ongoing earnings guidance. Reconciliations between GAAP and ongoing earnings are contained in schedules 1-4.
(END)
PNM Resources, Inc. and Subsidiaries
Schedule 1
Reconciliation of GAAP to Ongoing Earnings
(Preliminary and Unaudited)
| TNMP | Corporate and Other | PNMR Consolidated | |||||
|---|---|---|---|---|---|---|---|
| Three Months Ended September 30, 2022 | |||||||
| GAAP Net Earnings (Loss) Attributable to PNMR | 97,468 | $ | 31,431 | $ | (6,466) | $ | 122,433 |
| Adjusting items before income tax effects: | |||||||
| Net change in unrealized gains and losses on investment securities2a | — | — | 11,194 | ||||
| Regulatory disallowances and restructuring costs2b | — | — | 625 | ||||
| Pension expense related to previously disposed of gas distribution business2c | — | — | 614 | ||||
| Merger related costs2d | 1 | 337 | 355 | ||||
| Total adjustments before income tax effects | 1 | 337 | 12,788 | ||||
| Income tax impact of above adjustments1 | — | (86) | (3,248) | ||||
| Income tax impact of non-deductible merger related costs3 | (125) | 7 | 144 | ||||
| Timing of statutory and effective tax rates on non-recurring items4 | (51) | 12 | (5,972) | ||||
| Total income tax impacts5 | (176) | (67) | (9,076) | ||||
| Adjusting items, net of income taxes | (175) | 270 | 3,712 | ||||
| Ongoing Earnings (Loss) | 101,085 | $ | 31,256 | $ | (6,196) | $ | 126,145 |
| Nine Months Ended September 30, 2022 | |||||||
| GAAP Net Earnings (Loss) Attributable to PNMR | 95,562 | $ | 72,542 | $ | (14,319) | $ | 153,785 |
| Adjusting items before income tax effects: | |||||||
| Net change in unrealized gains and losses on investment securities2a | — | — | 81,084 | ||||
| Regulatory disallowances and restructuring costs2b | — | — | 2,025 | ||||
| Pension expense related to previously disposed of gas distribution business2c | — | — | 1,842 | ||||
| Merger related costs2d | 4 | 1,569 | 1,640 | ||||
| Total adjustments before income tax effects | 4 | 1,569 | 86,591 | ||||
| Income tax impact of above adjustments1 | (1) | (398) | (21,994) | ||||
| Income tax impact of non-deductible merger related costs3 | 156 | 42 | 450 | ||||
| Timing of statutory and effective tax rates on non-recurring items4 | 144 | (149) | 36 | ||||
| Total income tax impacts5 | 299 | (505) | (21,508) | ||||
| Adjusting items, net of income taxes | 303 | 1,064 | 65,083 | ||||
| Ongoing Earnings (Loss) | 159,278 | $ | 72,845 | $ | (13,255) | $ | 218,868 |
| 1 Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments | |||||||
| 2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statements of Earnings as follows: | |||||||
| a Decreases in "Gains (losses) on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | |||||||
| b Decrease in "Regulatory disallowances and restructuring costs" of 0.6 million for the three months ended September 30, 2022, an increase in "Regulatory disallowances and restructuring costs" of 0.8 million for the nine months ended September 30, 2022 and a decrease in "Electric Operating Revenues" of 1.2 million for the three and nine months ended September 30, 2022 | |||||||
| c Increases in "Other (deductions)" | |||||||
| d Increases in "Administrative and general" | |||||||
| 3 Increases (decreases) in "Income Taxes" | |||||||
| 4 Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average expected statutory tax rate of 23.1% for PNMR, and the GAAP anticipated effective tax rates of 11.0% for PNM, 13.4% for TNMP, and 10.1% for PNMR, which will reverse by year end | |||||||
| 5 Income tax impacts reflected in "Income Taxes" |
All values are in US Dollars.
PNM Resources, Inc. and Subsidiaries
Schedule 2
Reconciliation of GAAP to Ongoing Earnings
(Preliminary and Unaudited)
| PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||
|---|---|---|---|---|---|---|---|---|
| (in thousands) | ||||||||
| Three Months Ended September 30, 2021 | ||||||||
| GAAP Net Earnings (Loss) Attributable to PNMR | $ | 86,915 | $ | 27,942 | $ | (1,536) | $ | 113,321 |
| Adjusting items before income tax effects: | ||||||||
| Net change in unrealized gains and losses on investment securities2a | 2,512 | — | — | 2,512 | ||||
| Regulatory disallowances and restructuring costs2b | 436 | — | — | 436 | ||||
| Pension expense related to previously disposed of gas distribution business2c | 849 | — | — | 849 | ||||
| Merger related costs2d | 204 | 5 | 1,364 | 1,573 | ||||
| Total adjustments before income tax effects | 4,001 | 5 | 1,364 | 5,370 | ||||
| Income tax impact of above adjustments1 | (1,016) | (1) | (346) | (1,363) | ||||
| Income tax impact of non-deductible merger related costs3 | 12 | 1 | 130 | 143 | ||||
| Timing of statutory and effective tax rates on non-recurring items4 | 317 | 226 | (14) | 529 | ||||
| Total income tax impacts5 | (687) | 226 | (230) | (691) | ||||
| Adjusting items, net of income taxes | 3,314 | 231 | 1,134 | 4,679 | ||||
| Ongoing Earnings (Loss) | $ | 90,229 | $ | 28,173 | $ | (402) | $ | 118,000 |
| Nine Months Ended September 30, 2021 | ||||||||
| GAAP Net Earnings (Loss) Attributable to PNMR | $ | 146,804 | $ | 52,326 | $ | (14,521) | $ | 184,609 |
| Adjusting items before income tax effects: | ||||||||
| Net change in unrealized gains and losses on investment securities2a | (3,594) | — | — | (3,594) | ||||
| Regulatory disallowances and restructuring costs2b | 436 | — | — | 436 | ||||
| Pension expense related to previously disposed of gas distribution business2c | 2,547 | — | — | 2,547 | ||||
| Merger related costs2d | 562 | 433 | 9,743 | 10,738 | ||||
| Total adjustments before income tax effects | (49) | 433 | 9,743 | 10,127 | ||||
| Income tax impact of above adjustments1 | 12 | (91) | (2,475) | (2,554) | ||||
| Income tax impact of non-deductible merger related costs3 | 24 | 36 | 835 | 895 | ||||
| Timing of statutory and effective tax rates on non-recurring items4 | — | 128 | 135 | 263 | ||||
| Total income tax impacts5 | 36 | 73 | (1,505) | (1,396) | ||||
| Adjusting items, net of income taxes | (13) | 506 | 8,238 | 8,731 | ||||
| Ongoing Earnings (Loss) | $ | 146,791 | $ | 52,832 | $ | (6,283) | $ | 193,340 |
| 1Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments | ||||||||
| 2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statement of Earnings as follows: | ||||||||
| a (Increases) decreases in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | ||||||||
| b Increases in "Regulatory disallowances and restructuring costs" | ||||||||
| c Increases in "Other (deductions)" | ||||||||
| d Increases in "Administrative and general" | ||||||||
| 3 Increase in "Income Tax Expense" | ||||||||
| 4 Income tax timing impacts resulting from differences between the statutory tax rates of 25.4% for PNM, 21.0% for TNMP and the average expected statutory tax rate of 24.2% for PNMR, and the GAAP anticipated effective tax rates of 15.4% for PNM, 11.1% for TNMP, and 13.1% for PNMR, which will reverse by year end | ||||||||
| 5 Income tax impacts reflected in "Income Taxes" |
PNM Resources, Inc. and Subsidiaries
Schedule 3
Reconciliation of GAAP to Ongoing Earnings Per Diluted Share
(Preliminary and Unaudited)
| PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||
|---|---|---|---|---|---|---|---|---|
| (per diluted share) | ||||||||
| Three Months Ended September 30, 2022 | ||||||||
| GAAP Net Earnings (Loss) Attributable to PNMR | $ | 1.13 | $ | 0.36 | $ | (0.07) | $ | 1.42 |
| Adjusting items, net of income tax effects: | ||||||||
| Net change in unrealized gains and losses on investment securities | 0.10 | — | — | 0.10 | ||||
| Regulatory disallowances and restructuring costs | 0.01 | — | — | 0.01 | ||||
| Timing of statutory and effective tax rates on non-recurring items | (0.07) | — | — | (0.07) | ||||
| Total Adjustments | 0.04 | — | — | 0.04 | ||||
| Ongoing Earnings (Loss) | $ | 1.17 | $ | 0.36 | $ | (0.07) | $ | 1.46 |
| Average Diluted Shares Outstanding: 86,135,756 | ||||||||
| Nine Months Ended September 30, 2022 | ||||||||
| GAAP Net Earnings (Loss) Attributable to PNMR | $ | 1.11 | $ | 0.84 | $ | (0.17) | $ | 1.78 |
| Adjusting items, net of income tax effects: | ||||||||
| Net change in unrealized gains and losses on investment securities | 0.70 | — | — | 0.70 | ||||
| Regulatory disallowances and restructuring costs | 0.02 | — | — | 0.02 | ||||
| Pension expense related to previously disposed of gas distribution business | 0.02 | — | — | 0.02 | ||||
| Merger related costs | — | — | 0.02 | 0.02 | ||||
| Total Adjustments | 0.74 | — | 0.02 | 0.76 | ||||
| Ongoing Earnings (Loss) | $ | 1.85 | $ | 0.84 | $ | (0.15) | $ | 2.54 |
| Average Diluted Shares Outstanding: 86,177,523 |
PNM Resources, Inc. and Subsidiaries
Schedule 4
Reconciliation of GAAP to Ongoing Earnings Per Diluted Share
(Preliminary and Unaudited)
| PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||
|---|---|---|---|---|---|---|---|---|
| (per diluted share) | ||||||||
| Three Months Ended September 30, 2021 | ||||||||
| GAAP Net Earnings (Loss) Attributable to PNMR | $ | 1.01 | $ | 0.33 | $ | (0.02) | $ | 1.32 |
| Adjusting items, net of income tax effects: | ||||||||
| Net change in unrealized gains and losses on investment securities | 0.02 | — | — | 0.02 | ||||
| Regulatory disallowances and restructuring costs | 0.01 | — | — | 0.01 | ||||
| Pension expense related to previously disposed of gas distribution business | 0.01 | — | — | 0.01 | ||||
| Merger related costs | — | — | 0.01 | 0.01 | ||||
| Total Adjustments | 0.04 | — | 0.01 | 0.05 | ||||
| Ongoing Earnings (Loss) | $ | 1.05 | $ | 0.33 | $ | (0.01) | $ | 1.37 |
| Average Diluted Shares Outstanding: 86,112,742 | ||||||||
| Nine Months Ended September 30, 2021 | ||||||||
| GAAP Net Earnings (Loss) Attributable to PNMR | $ | 1.70 | $ | 0.61 | $ | (0.17) | $ | 2.14 |
| Adjusting items, net of income tax effects: | ||||||||
| Net change in unrealized gains and losses on investment securities | (0.03) | — | — | (0.03) | ||||
| Regulatory disallowances and restructuring costs | 0.01 | — | — | 0.01 | ||||
| Pension expense related to previously disposed of gas distribution business | 0.02 | — | — | 0.02 | ||||
| Merger related costs | — | 0.01 | 0.10 | 0.11 | ||||
| Total Adjustments | — | 0.01 | 0.10 | 0.11 | ||||
| Ongoing Earnings (Loss) | $ | 1.70 | $ | 0.62 | $ | (0.07) | $ | 2.25 |
| Average Diluted Shares Outstanding: 86,105,871 |
PNM Resources, Inc. and Subsidiaries
Schedule 5
Condensed Consolidated Statements of Earnings
(Preliminary and Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||
| (In thousands, except per share amounts) | ||||||||
| Electric Operating Revenues: | ||||||||
| Contracts with customers | $ | 531,966 | $ | 481,881 | $ | 1,320,779 | $ | 1,197,359 |
| Alternative revenue programs | (11,643) | (9,483) | (14,569) | (3,156) | ||||
| Other electric operating revenue | 209,565 | 82,153 | 367,526 | 151,595 | ||||
| Total electric operating revenues | 729,888 | 554,551 | 1,673,736 | 1,345,798 | ||||
| Operating Expenses: | ||||||||
| Cost of energy | 334,339 | 199,380 | 698,349 | 467,452 | ||||
| Administrative and general | 58,125 | 56,520 | 165,328 | 168,458 | ||||
| Energy production costs | 34,469 | 32,374 | 110,534 | 106,709 | ||||
| Regulatory disallowances and restructuring costs | (567) | 436 | 832 | 436 | ||||
| Depreciation and amortization | 76,570 | 71,438 | 229,103 | 212,039 | ||||
| Transmission and distribution costs | 21,538 | 19,996 | 61,160 | 56,166 | ||||
| Taxes other than income taxes | 22,651 | 22,678 | 71,207 | 65,440 | ||||
| Total operating expenses | 547,125 | 402,822 | 1,336,513 | 1,076,700 | ||||
| Operating income | 182,763 | 151,729 | 337,223 | 269,098 | ||||
| Other Income and Deductions: | ||||||||
| Interest income | 3,969 | 3,329 | 11,588 | 10,466 | ||||
| Gains (losses) on investment securities | (15,736) | 1,948 | (84,104) | 16,108 | ||||
| Other income | 5,364 | 5,686 | 14,845 | 14,592 | ||||
| Other (deductions) | (1,647) | (5,098) | (7,529) | (13,836) | ||||
| Net other income and deductions | (8,050) | 5,865 | (65,200) | 27,330 | ||||
| Interest Charges | 34,526 | 23,244 | 89,963 | 73,247 | ||||
| Earnings before Income Taxes | 140,187 | 134,350 | 182,060 | 223,181 | ||||
| Income Taxes | 13,450 | 16,668 | 16,982 | 26,533 | ||||
| Net Earnings | 126,737 | 117,682 | 165,078 | 196,648 | ||||
| (Earnings) Attributable to Valencia Non-controlling Interest | (4,172) | (4,229) | (10,897) | (11,643) | ||||
| Preferred Stock Dividend Requirements of Subsidiary | (132) | (132) | (396) | (396) | ||||
| Net Earnings Attributable to PNMR | $ | 122,433 | $ | 113,321 | $ | 153,785 | $ | 184,609 |
| Net Earnings Attributable to PNMR per Common Share: | ||||||||
| Basic | $ | 1.42 | $ | 1.32 | $ | 1.79 | $ | 2.14 |
| Diluted | $ | 1.42 | $ | 1.32 | $ | 1.78 | $ | 2.14 |
| Dividends Declared per Common Share | $ | 0.3475 | $ | 0.3275 | $ | 1.0425 | $ | 0.9825 |