PNM Resources(PNM)

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PNM files application for new resources in 2028
Prnewswireยท 2024-11-25 11:30
Company Overview - TXNM Energy is an energy holding company based in Albuquerque, New Mexico, delivering energy to over 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM [5] Proposed Energy Resource Portfolio - PNM, a subsidiary of TXNM Energy, filed an application with the New Mexico Public Regulation Commission (NMPRC) to add new energy resources by summer 2028 [1] - The proposed portfolio includes 430 MW of new solar and battery storage to meet forecasted peak load requirements in 2028 and support New Mexico's zero-carbon goals [2] - The portfolio involves: - Extension of a 167 MW Valencia Purchase Power Agreement (PPA) through 2039 [3] - Addition of 300 MW capacity through Energy Storage Agreements (ESAs) for two 150 MW battery storage facilities [3] - Addition of a 130 MW solar and battery storage facility (100 MW solar, 30 MW battery storage) with an option for an additional 20 MW of battery storage [3] - The 130 MW/150 MW facility is proposed to be located in New Mexico's Central Consolidated School District, where the San Juan Generating Station was retired in 2022 [4] Capital Investment - The proposed portfolio reflects a capital investment of $220 million from PNM, which could increase to $252 million if the additional 20 MW of storage option is selected [4] Regulatory Approval - The filing is subject to approval by the NMPRC, with PNM requesting approval within nine months [4]
PNM reaches Settlement in Principle in 2025 Rate Request
Prnewswireยท 2024-11-15 22:03
Core Points - PNM, a subsidiary of TXNM Energy, has filed a joint notice with the New Mexico Public Regulation Commission indicating a Settlement in Principle regarding its 2025 Rate Request application [1] - An unopposed joint motion has been filed to modify the procedural schedule, specifically to vacate the testimony deadline set for November 26, 2024, and to hold a scheduling conference in the week of December 2, 2024 [2] - The parties involved in the joint notice and motion include the New Mexico Department of Justice, Albuquerque Bernalillo Water Utility Authority, Utility Division Staff, Bernalillo County, NM AREA, and Walmart, with any stipulation subject to NMPRC approval [3] Company Background - TXNM Energy is an energy holding company based in Albuquerque, New Mexico, serving over 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM [4]
PNM announces plan to join CAISO EDAM regional energy market
Prnewswireยท 2024-11-11 11:30
Core Insights - Public Service Company of New Mexico (PNM) plans to join the California Independent System Operator (CAISO) Extended Day-Ahead Market (EDAM) to enhance reliability and economic benefits for customers [1][3] - EDAM is a voluntary day-ahead regional market that builds on the existing Western Energy Imbalance Market (WEIM), which PNM has participated in since 2021 [2][4] - PNM anticipates that participation in EDAM will yield approximately $20 million in annual benefits for New Mexico customers [3][4] Economic Benefits - Since joining WEIM in 2021, PNM has provided nearly $125 million in benefits to New Mexico customers [3] - The coordination with other regional utilities through EDAM is expected to deliver substantial efficiencies and cost benefits [3][4] Regulatory Context - The decision to join EDAM follows a statement of policy and guiding market principles issued by the New Mexico Public Regulation Commission (NMPRC) [5] - The NMPRC's guidance was based on inquiries and workshops discussing potential participation in a day-ahead regional market [5] Future Plans - EDAM is scheduled to launch in 2026, with PNM aiming to begin participation as early as 2027 [4]
PNM Resources(PNM) - 2024 Q3 - Quarterly Report
2024-11-01 20:17
Financial Performance - Electric Operating Revenues for the three months ended September 30, 2024, were $569,256 thousand, an increase from $505,851 thousand in the same period last year, representing a growth of 12.4%[20] - Operating income for the three months ended September 30, 2024, was $191,080 thousand, compared to $86,652 thousand for the same period in 2023, marking a significant increase of 120.5%[20] - Net earnings attributable to TXNM for the three months ended September 30, 2024, were $131,202 thousand, up from $37,726 thousand in the prior year, reflecting a growth of 248.5%[20] - Basic and diluted earnings per common share for the three months ended September 30, 2024, were both $1.45, compared to $0.44 for the same period last year, an increase of 229.5%[20] - Comprehensive income attributable to TXNM for the three months ended September 30, 2024, was $127,703 thousand, compared to $34,541 thousand in the same period last year, an increase of 269.5%[22] - Net earnings for the three months ended September 30, 2024, were $113,862 thousand, compared to $13,266 thousand in the same period of 2023, reflecting a substantial increase of approximately 859%[34] - Net earnings for the nine months ended September 30, 2024, increased to $80,203,000, compared to $74,169,000 for the same period in 2023, representing an increase of approximately 8.7%[54] Revenue and Expenses - Total operating expenses decreased to $378,176 thousand for the three months ended September 30, 2024, from $419,199 thousand in the same period last year, a reduction of 9.8%[20] - Total operating expenses for the nine months ended September 30, 2024, were $307,407 thousand, an increase of 5.4% from $291,675 thousand in the same period of 2023[51] - The cost of energy for the three months ended September 30, 2024, was $101,495 thousand, down from $174,362 thousand in the same period of 2023, a decrease of approximately 42%[34] - Total current liabilities increased to $900,237 thousand as of September 30, 2024, from $839,194 thousand at the end of 2023, representing a rise of 7.3%[45] Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2024, were $349,521 thousand, compared to $412,604 thousand in the same period last year, a decrease of 15.3%[24] - Net cash flows used in investing activities for the nine months ended September 30, 2024, were $(805,858) thousand, slightly lower than $(811,877) thousand in the same period last year[24] - Cash and cash equivalents at the end of the period increased to $16,436 thousand from $7,768 thousand, representing a significant rise of 111.5%[27] - The company reported utility plant additions of $493,381 thousand for the nine months ended September 30, 2024, compared to $424,292 thousand in the previous year[38] Debt and Financing - PNM issued $200 million in Senior Unsecured Notes on April 28, 2023[14] - PNM's $400 million Unsecured Revolving Credit Facility is currently in place[14] - TXNM's $1 billion Unsecured Delayed-Draw Term Loan matures on May 18, 2025[17] - Long-term borrowings increased to $1,233,000 thousand from $1,015,000 thousand, reflecting a growth of approximately 21.5%[27] - TXNM issued $500.0 million of junior subordinated convertible notes due 2054, with a 5.75% interest rate, to prepay existing borrowings[165] Equity and Dividends - The company paid dividends totaling $105,254 thousand, compared to $95,029 thousand in the previous period, representing an increase of about 10.5%[27] - Dividends declared per common share increased to $0.3875 for the three months ended September 30, 2024, compared to $0.3675 in the same period last year, a rise of 3.6%[20] - The balance of total equity at September 30, 2024, was $2,508,048 thousand, an increase from $2,399,051 thousand at December 31, 2023[33] Assets and Liabilities - Total current assets rose to $495,694 thousand, up from $475,543 thousand, indicating an increase of about 4.8%[29] - Total liabilities increased to $8,323,904 thousand from $7,842,025 thousand, reflecting an increase of about 6.1%[31] - The net utility plant value increased to $8,211,382 thousand from $7,609,862 thousand, representing a growth of approximately 7.9%[29] Regulatory and Compliance - PNM's Public Safety Power Shutoff Plan was filed with the NMPRC on May 1, 2024[17] - PNM's Wildfire Mitigation Plan was filed with the NMPRC on May 1, 2024[18] - The Energy Transition Act requires utilities in New Mexico to achieve renewable portfolios of 40% by 2025, 50% by 2030, 80% by 2040, and 100% zero-carbon energy by 2045[201] Strategic Initiatives - PNM's application for grid modernization investments amounts to approximately $344 million for the first six years of an 11-year strategy[14] - The merger agreement with TXNM was terminated on December 31, 2023[14] - The company is actively involved in energy transition initiatives, consolidating ETBC I in its financial statements due to its role as the primary beneficiary[114]
PNM Resources(PNM) - 2024 Q3 - Quarterly Results
2024-11-01 11:05
Earnings Performance - Q3 2024 GAAP earnings were $1.45 per diluted share, compared to $0.44 in Q3 2023, representing a 229.5% increase[1] - Ongoing earnings for Q3 2024 were $1.43 per diluted share, down from $1.54 in Q3 2023, a decrease of 7.1%[1] - GAAP net earnings attributable to TXNM Energy for Q3 2024 were $131.2 million, up from $37.7 million in Q3 2023, a growth of 248.5%[1] - Ongoing net earnings for Q3 2024 were $129.3 million, slightly down from $132.9 million in Q3 2023, a decrease of 2.7%[1] - PNM segment reported GAAP earnings of $1.20 per share in Q3 2024, compared to $0.09 in Q3 2023, a significant increase[4] - TNMP segment reported GAAP earnings of $0.39 per share in Q3 2024, down from $0.46 in Q3 2023, a decrease of 15.2%[4] - The diluted earnings per share for Q3 2024 were $1.45, compared to $0.44 in Q3 2023, reflecting an increase of 229.5%[24] Revenue and Operating Income - Electric Operating Revenues for Q3 2024 were $569.256 million, compared to $505.851 million in Q3 2023, reflecting an increase of 12.5%[24] - Operating income for Q3 2024 was $191.080 million, up from $86.652 million in Q3 2023, representing a growth of 120.5%[24] Expenses and Costs - Total operating expenses decreased to $378.176 million in Q3 2024 from $419.199 million in Q3 2023, a reduction of 9.8%[24] - The company reported a decrease in the cost of energy to $138.909 million in Q3 2024 from $210.313 million in Q3 2023, a decline of 34.0%[24] - Interest charges increased to $59.664 million in Q3 2024 from $49.838 million in Q3 2023, an increase of 19.5%[24] Regulatory and Market Factors - The company experienced lower transmission margins due to market prices and new depreciation rates, impacting overall earnings[5] - Regulatory disallowances increased to $6.142 million in Q3 2024 from $2.315 million in Q3 2023, a rise of 165.5%[24] Guidance and Future Expectations - The company narrowed its 2024 ongoing earnings guidance to a range of $2.70 to $2.75 per diluted share[1] - The company anticipates reversing the differences in statutory and effective tax rates by year-end, with expected rates of 25.4% for PNM and 21.0% for TNMP[20] Company Overview - TXNM Energy serves over 800,000 homes and businesses across Texas and New Mexico through its regulated utilities[13] - Q3 2024 GAAP earnings included $9.5 million of net unrealized gains on investment securities, compared to $5.6 million of net unrealized losses in Q3 2023[8] - The average diluted shares outstanding for ongoing earnings were 90,605,188[22]
NMPRC approves PNM Grid Modernization Plan
Prnewswireยท 2024-10-17 21:11
Core Points - The New Mexico Public Regulation Commission (NMPRC) approved Public Service Company of New Mexico's (PNM) application for grid modernization, focusing on resilience, reliability, efficiency, and decarbonization [1][2] - The plan includes a six-year investment of $344 million, aimed at enhancing customer service through smart meters and enabling a clean energy transition in New Mexico [2] Investment and Implementation - The approved plan is part of a longer-term strategy for grid modernization, which will facilitate two-way communication on the grid, providing customers with insights into their energy usage [1] - The deployment of smart meters and upgrades will prioritize low-income and underserved communities, ensuring equitable access to clean energy opportunities [2] Regulatory Context - The investments are supported by a cost-benefit analysis and align with New Mexico's grid modernization legislation passed in 2020, with costs to be recovered through an annually reviewed tariff rider [2]
PNM Resources(PNM) - 2024 Q2 - Quarterly Report
2024-08-02 20:16
Financial Performance - Electric Operating Revenues for Q2 2024 reached $488,102 thousand, a 2% increase from $477,156 thousand in Q2 2023[20]. - Operating Income for Q2 2024 was $105,683 thousand, up 14% from $92,330 thousand in Q2 2023[20]. - Net Earnings attributable to PNMR for Q2 2024 were $48,049 thousand, a 6% increase compared to $45,304 thousand in Q2 2023[20]. - Basic Earnings per Common Share for Q2 2024 remained stable at $0.53, unchanged from Q2 2023[20]. - Total Operating Expenses for Q2 2024 were $382,419 thousand, slightly down from $384,826 thousand in Q2 2023[20]. - Comprehensive Income attributable to PNMR for Q2 2024 was $45,757 thousand, down from $50,423 thousand in Q2 2023[22]. - Net earnings for the three months ended June 30, 2024, were $34,702,000, a decrease of 1.7% from $35,303,000 in the same period of 2023[39]. - Net earnings for the six months ended June 30, 2024, increased to $44,508,000, up from $34,665,000 in the same period of 2023, representing a growth of 28.3%[56]. Cash Flow and Investments - Cash Flows from Operating Activities for the first six months of 2024 totaled $169,524 thousand, a decrease from $242,443 thousand in the same period of 2023[25]. - Net cash flows used in investing activities for the first six months of 2024 were $(479,498) thousand, a slight improvement from $(530,263) thousand in 2023[25]. - Cash flows from financing activities showed a net increase of $326,351 thousand for the six months ended June 30, 2024, compared to $291,382 thousand for the same period in 2023, reflecting a growth of approximately 12.3%[27]. - Cash and cash equivalents at the end of the period were $20,320 thousand, significantly up from $7,640 thousand at the end of June 30, 2023, marking an increase of approximately 166.5%[27]. - Cash and cash equivalents at the end of the period were $1,274,000, compared to no cash equivalents reported at the beginning of the period[56]. Debt and Liabilities - PNM issued $200 million in Senior Unsecured Notes on April 28, 2023[16]. - PNMR's $1 billion Unsecured Delayed-Draw Term Loan matures on May 18, 2025[16]. - PNMR's $500 million term loan matures on June 30, 2026[16]. - The company reported a decrease in accounts payable to $140,304 thousand as of June 30, 2024, down from $205,175 thousand at the end of 2023, which is a reduction of approximately 31.6%[31]. - Long-term borrowings increased to $1,065,000 thousand as of June 30, 2024, compared to $960,000 thousand at the end of 2023, representing an increase of about 10.9%[27]. - The company reported total liabilities rose to $8,120,201 thousand as of June 30, 2024, compared to $7,842,025 thousand at the end of 2023, indicating an increase of approximately 3.5%[31]. - Long-term debt increased from $2,061,558,000 in December 2023 to $2,351,460,000 in June 2024, representing an increase of about 14.0%[48]. Equity and Retained Earnings - Retained earnings increased to $847,397 thousand as of June 30, 2024, up from $787,110 thousand at the end of 2023, reflecting a growth of about 7.7%[32]. - The total equity of the company increased to $2,451,680 thousand as of June 30, 2024, up from $2,399,051 thousand at the end of 2023, indicating a growth of about 2.2%[32]. - The company paid dividends totaling $70,169 thousand during the six months ended June 30, 2024, compared to $63,353 thousand for the same period in 2023, reflecting an increase of approximately 10.0%[27]. - The Board declared dividends on common stock of $0.3875 per share for Q2 2024, an increase from $0.3675 per share for Q2 2023[70]. Regulatory and Compliance - The Energy Transition Act mandates that New Mexico utilities achieve a renewable portfolio of 40% by 2025, increasing to 100% zero-carbon energy by 2045[191]. - The company anticipates making a contribution of $0.2 million to its pension plan in 2028 based on current funding requirements[184]. - PNM is currently assessing the potential impact of the final rules on its business and financial condition[206]. - The EPA published proposed regulatory actions on May 23, 2023, to replace the Clean Power Plan and the ACE Rule, with final rules expected by May 9, 2024[206]. Operational Highlights - PNM's operations include retail electric utility services and wholesale electricity sales, with a focus on energy transition initiatives through the establishment of ETBC I[75]. - PNM's energy transition property, managed through ETBC I, generated operating revenues of $5.8 million for the three months ended June 30, 2024[113]. - PNM's future generation portfolio will be significantly impacted by the Energy Transition Act, particularly regarding the retirement of coal-fired facilities[196]. Miscellaneous - PNM filed a shelf registration statement on May 16, 2023, for the issuance of up to $650 million of securities, expiring in May 2026[153]. - The company utilized short-term revolving credit facilities and cash flows from operations for funding construction and operating expenditures[152]. - PNM's derivative contracts recorded at fair value had no impact on net earnings during the six months ended June 30, 2024, and 2023[126].
PNM Resources(PNM) - 2024 Q2 - Earnings Call Transcript
2024-07-31 19:29
Financial Data and Key Metrics Changes - Ongoing earnings for Q2 2024 were $0.60, exceeding expectations, with guidance for 2024 affirmed at a range of $2.65 to $2.75 [5][22] - Earnings per share increased from $0.55 in the prior year, driven by capital investment recovery and load growth [22] Business Line Data and Key Metrics Changes - TNMP reached an all-time system peak of over 2,700 megawatts, a 6% increase from the previous summer peak [9] - PNM's two 6 megawatt batteries became operational, aimed at reducing constraints on the distribution system [12] Market Data and Key Metrics Changes - The Texas Gulf Coast experienced power outages affecting approximately 116,000 customers due to Hurricane Beryl [7][10] - In New Mexico, the South Fork and Salt fires displaced around 10,000 residents, prompting a coordinated response from the company [13] Company Strategy and Development Direction - The company will officially operate as TXNM Energy, reflecting its business growth, particularly in Texas [6] - A focus on system resiliency and infrastructure investment is emphasized, with a filing for a System Resiliency Plan expected to include approximately $600 million in capital investments [18][21] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for continued focus on system resiliency and preparation for extreme weather events [8] - The company is on track to deliver earnings growth targets of 6% to 7% through 2028, supported by a strong capital plan [25] Other Important Information - The company completed a $550 million issuance of junior subordinated convertible notes, benefiting its balance sheet and income statement [24] - A new rate request was submitted for 2025, with a phased implementation plan to mitigate customer impacts [16] Q&A Session Summary Question: Discussion on resource filing and utility-owned assets - Management emphasized that resource filings focus on customer benefits and reliability, with a mix of company-owned and PPA assets [28][29] Question: Impact of ERCOT transmission upgrades - Management noted that ERCOT's report indicated significant load growth and potential investments in the West Texas area, which could benefit the company [30][32] Question: Resiliency filing and equity funding - Management confirmed that the resiliency filing includes $450 million already assumed, with an additional $150 million expected [35] Question: New Mexico rate case process - Management indicated that intervener testimony is expected, and discussions for potential settlements will occur as the process progresses [37][38] Question: Incremental Texas CapEx for resiliency - Management clarified that the current plan does not include the new resiliency spending for 2028 and beyond [41] Question: Tree trimming and vegetation management - Management reported that 55% to 60% of the outages during the hurricane were due to vegetation outside their right of ways, indicating a need for improved management [47][48]
PNM Resources (PNM) Q2 Earnings Top Estimates, Sales Rise Y/Y
ZACKSยท 2024-07-31 15:10
PNM Resources (PNM) reported second-quarter 2024 earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 55 cents by 9.1%. In the year-ago quarter, the company reported earnings of 55 cents per share. Segmental Details Highlights of the Release Revenues totaled $488.1 million, which missed the Zacks Consensus Estimate of $507 million by 3.72%. The top line, however, increased 2.3% from $477.2 million reported in the year-ago quarter. TNMP recorded earnings of 33 cents per share, up 1 ...
PNM Resources (PNM) Beats Q2 Earnings Estimates
ZACKSยท 2024-07-31 12:41
PNM Resources (PNM) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this power company would post earnings of $0.68 per share when it actually produced earnings of $0.41, delivering a surprise of -39.71%. Over the last four quarters, the com ...