ALBUQUERQUE, N.M., June 4, 2024 /PRNewswire/ -- PNM Resources (NYSE: PNM) today announced the pricing of $500,000,000 in aggregate principal amount of its 5.75% junior subordinated convertible notes due 2054 (the "convertible notes") in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). In addition, PNM Resources granted the initial purchasers of the convertible notes an option to purchase, within a 13-day period be ...

ALBUQUERQUE, N.M., June 4, 2024 /PRNewswire/ -- The Board of Directors of Public Service Company of New Mexico, a subsidiary of PNM Resources (NYSE: PNM), declared the regular quarterly dividend of $1.145 per share on the 4.58 percent series of cumulative preferred stock. The preferred stock dividend is payable July 15, 2024, to shareholders of record at the close of business June 28, 2024. Background: PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2023 consolidated ...

2024 ongoing earnings guidance to be affirmed during meetings ALBUQUERQUE, N.M., June 4, 2024 /PRNewswire/ -- PNM Resources (NYSE: PNM) management will meet with analysts and investors this week at the RBC Capital Markets Global Energy, Power and Infrastructure Conference in New York City. During the meetings, management is expected to affirm the company's 2024 consolidated earnings guidance of $2.65 to $2.75 per diluted share. Presentation materials are available on the company's website at http://www.pnmr ...

ALBUQUERQUE, N.M., June 3, 2024 /PRNewswire/ -- PNM Resources (NYSE: PNM) today announced that it intends to offer, subject to market and other conditions, $500,000,000 in aggregate principal amount of its junior subordinated convertible notes due 2054 (the "convertible notes") in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). In addition, PNM Resources expects to grant the initial purchasers of the convertible ...

PNM Resources (PNM) announced that its wholly-owned subsidiary, Public Service Company of New Mexico ("PNM"), received approval for new energy resources from the New Mexico Public Regulation Commission ("NMPRC"). This is expected to be added by the summer of 2026. Along with PNM Resources, some other electric power industry companies like Xcel Energy Inc. (XEL) , NextEra Energy, Inc. (NEE) and Avangrid (AGR) are also adopting measures to meet clean-energy targets. The company's system demand reached new rec ...

Background: PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2023 consolidated operating revenues of $1.9 billion. Through its regulated utilities, PNM and TNMP, PNM Resources provides electricity to more than 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 3.3 gigawatts of installed capacity, with a goal to achieve 100% emissions-free energy by 2040. For more informa ...

It has been about a month since the last earnings report for PNM Resources (PNM) . Shares have lost about 2.1% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is PNM Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. PNM Resources Q1 Earnings & Revenues Mis ...

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels. The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors. PNM currently has a forward P/E ratio of 14.23, while PEG has a forward P/E of 20.35. We also note that PNM h ...

Core Viewpoint - PNM Resources (PNM) is positioned as a solid investment option in the utility sector due to its acquisitions, infrastructure investments, and cost-effective power generation units [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for PNM's 2024 earnings per share (EPS) has increased by 1.5% to $2.71 over the past 60 days - The 2024 revenue estimate stands at $2.35 billion, reflecting a year-over-year increase of 21.3% - PNM's long-term earnings growth rate is projected at 4.6%, with an average earnings surprise of 2.2% over the last four quarters [2] Return on Equity - PNM Resources has a return on equity (ROE) of 9.91%, surpassing the sector average of 9.68%, indicating more effective fund utilization compared to peers [3] Solvency & Liquidity - The times interest earned (TIE) ratio is 1.3, indicating the company can comfortably meet its interest obligations - As of April 26, 2024, PNM Resources had $644.9 million in liquidity, sufficient for short-term obligations [4] Dividend History - PNM has consistently increased dividends since 1996, with a current quarterly dividend of 38.75 cents per share, leading to an annual dividend of $1.55, up 5.4% from $1.47 - The current dividend yield is 4.03%, significantly higher than the S&P 500 Composite's average of 1.27% [5] Strategic Investment - PNM plans to invest $6.1 billion from 2024 to 2028 to enhance its transmission and distribution infrastructure, supporting an average rate base compound annual growth rate (CAGR) of 10% during this period [6] Price Performance - Over the past three months, PNM Resources shares have increased by 2.7%, outperforming the industry's growth of 2.3% [7]

[PART I. FINANCIAL INFORMATION](index=8&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)](index=8&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) This section presents unaudited condensed consolidated financial statements for PNMR, PNM, and TNMP for Q1 2024, including earnings, cash flows, balance sheets, and notes [PNM RESOURCES, INC. AND SUBSIDIARIES Financial Statements](index=8&type=section&id=PNM%20RESOURCES,%20INC.%20AND%20SUBSIDIARIES) PNMR's Q1 2024 net earnings decreased to **$47.2 million** from **$55.0 million** year-over-year, with diluted EPS falling to **$0.52** from **$0.64**, and operating cash flow declining to **$92.8 million** PNMR Condensed Consolidated Statements of Earnings (Unaudited) | Indicator | Three Months Ended March 31, 2024 ($ million) | Three Months Ended March 31, 2023 ($ million) | | :--- | :--- | :--- | | Electric Operating Revenues | $436.9 | $544.1 | | Operating Income | $80.6 | $99.1 | | Net Earnings Attributable to PNMR | $47.2 | $55.0 | | Diluted EPS | $0.52 | $0.64 | PNMR Condensed Consolidated Statements of Cash Flows (Unaudited) | Indicator | Three Months Ended March 31, 2024 ($ million) | Three Months Ended March 31, 2023 ($ million) | | :--- | :--- | :--- | | Net cash flows from operating activities | $92.8 | $131.5 | | Net cash flows used in investing activities | ($184.4) | ($251.4) | | Net cash flows from financing activities | $99.5 | $120.0 | [PUBLIC SERVICE COMPANY OF NEW MEXICO (PNM) AND SUBSIDIARIES Financial Statements](index=15&type=section&id=PUBLIC%20SERVICE%20COMPANY%20OF%20NEW%20MEXICO%20AND%20SUBSIDIARIES) PNM's Q1 2024 net earnings decreased to **$41.9 million** from **$54.6 million** year-over-year, driven by lower electric operating revenues and operating income PNM Condensed Consolidated Statements of Earnings (Unaudited) | Indicator | Three Months Ended March 31, 2024 ($ million) | Three Months Ended March 31, 2023 ($ million) | | :--- | :--- | :--- | | Electric Operating Revenues | $308.1 | $430.2 | | Operating Income | $51.0 | $77.9 | | Net Earnings Available for PNM Common Stock | $41.9 | $54.6 | [TEXAS-NEW MEXICO POWER COMPANY (TNMP) AND SUBSIDIARIES Financial Statements](index=22&type=section&id=TEXAS-NEW%20MEXICO%20POWER%20COMPANY%20AND%20SUBSIDIARIES) TNMP's Q1 2024 net earnings significantly increased to **$14.6 million** from **$10.0 million** year-over-year, driven by higher electric operating revenues and operating income TNMP Condensed Consolidated Statements of Earnings (Unaudited) | Indicator | Three Months Ended March 31, 2024 ($ million) | Three Months Ended March 31, 2023 ($ million) | | :--- | :--- | :--- | | Electric Operating Revenues | $128.8 | $113.9 | | Operating Income | $30.7 | $21.8 | | Net Earnings | $14.6 | $10.0 | [NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=27&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section details accounting policies, segment performance, financing activities including TNMP's **$285 million** bond issuance, regulatory matters like PNM's 2024 Rate Change, and environmental commitments - On February 27, 2024, PNMR Development sold its interest in NM Renewable Development, LLC (NMRD), receiving net proceeds of **$117.0 million** and recognizing an after-tax gain of **$4.4 million**[293](index=293&type=chunk) - On March 28, 2024, TNMP entered into an agreement to sell **$285.0 million** of first mortgage bonds in four series, with the first two series totaling **$117.0 million** issued on March 28, 2024[148](index=148&type=chunk) - PNM's 2024 Rate Change, effective January 15, 2024, authorized a **$15.3 million** increase in non-fuel base rates, significantly less than the **$63.8 million** requested, and included a **9.26%** ROE and a disallowance of **$81.0 million** from the Four Corners net book value due to imprudence[244](index=244&type=chunk)[245](index=245&type=chunk) - PNM remeasured its San Juan mine reclamation liability in Q1 2024, resulting in a **$20.9 million** increase in estimated costs and a **$4.5 million** regulatory disallowance charge due to a regulatory cap on cost recovery[231](index=231&type=chunk) [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=72&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) PNMR's Q1 2024 net earnings declined to **$47.2 million**, driven by PNM's lower results offset by TNMP's growth, with projected **$6.8 billion** capital requirements for 2024-2028 and a 2040 emissions-free goal PNMR Net Earnings Summary | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Earnings Attributable to PNMR | $47.2 million | $55.0 million | ($7.8) million | | Diluted EPS | $0.52 | $0.64 | ($0.12) | Change in Net Earnings by Segment (Q1 2024 vs Q1 2023) | Segment | Change in Net Earnings (in millions) | | :--- | :--- | | TNMP | $4.6 | | PNM | ($12.7) | | Corporate and Other | $0.3 | | **Net Change** | **($7.8)** | - The company projects total capital requirements of **$6.8 billion** for 2024-2028, consisting of **$6.1 billion** in construction expenditures and approximately **$700 million** in dividends[397](index=397&type=chunk) - PNMR is focused on transitioning to an emissions-free generating portfolio by **2040**, which is ahead of the New Mexico state mandate of **2045**[313](index=313&type=chunk)[443](index=443&type=chunk) [Results of Operations by Segment](index=81&type=section&id=MD%26A_RESULTS%20OF%20OPERATIONS) Q1 2024 saw TNMP's earnings rise by **$4.6 million** to **$14.6 million**, while PNM's earnings fell by **$12.7 million** to **$41.9 million** due to weather and regulatory disallowances - TNMP's utility margin increased by **$11.8 million**, driven by **$5.8 million** from transmission rate relief/load and **$2.4 million** from distribution rate relief[370](index=370&type=chunk)[371](index=371&type=chunk) - PNM's utility margin decreased by **$9.6 million**, primarily due to a **$12.7 million** drop in transmission revenue and a **$3.2 million** negative impact from milder weather, partially offset by **$3.4 million** from rate relief[375](index=375&type=chunk)[378](index=378&type=chunk) - PNM's operating expenses increased by **$7.8 million**, which includes a **$4.5 million** regulatory disallowance for the unrecoverable portion of the San Juan Coal Mine reclamation remeasurement[378](index=378&type=chunk) - Corporate and Other segment results include a **$15.1 million** pre-tax loss on the sale of the NMRD equity investment, but the income tax benefit was **$18.6 million**, largely due to recognizing a **$15.7 million** Investment Tax Credit upon the sale[382](index=382&type=chunk)[383](index=383&type=chunk) [Liquidity and Capital Resources](index=88&type=section&id=MD%26A_LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Operating cash flow decreased to **$92.8 million** in Q1 2024, with projected **$6.8 billion** capital requirements for 2024-2028, supported by amended credit facilities and **$644.0 million** consolidated liquidity Projected Capital Requirements (2024-2028) | Category | 2024 ($ million) | 2025-2028 ($ million) | Total ($ million) | | :--- | :--- | :--- | :--- | | Construction expenditures | $1,176.3 | $4,876.9 | $6,053.2 | | Dividends on PNMR common stock | $139.8 | $559.3 | $699.1 | | **Total capital requirements** | **$1,316.6** | **$5,438.3** | **$6,754.9** | Liquidity Availability as of April 26, 2024 | Entity | Total Financing Capacity ($ million) | Remaining Availability ($ million) | | :--- | :--- | :--- | | PNM | $440.0 | $229.8 | | TNMP | $200.0 | $158.0 | | PNMR Separate | $300.0 | $256.2 | | **PNMR Consolidated** | **$940.0** | **$644.0** | - On April 1, 2024, PNMR, PNM, and TNMP amended or entered into new revolving credit facilities, extending maturities to March 30, 2029, with options to extend to 2031[401](index=401&type=chunk) [Other Issues Facing the Company](index=93&type=section&id=MD%26A_OTHER%20ISSUES%20FACING%20THE%20COMPANY) The company targets a 100% emissions-free portfolio by **2040**, ahead of the 2045 state mandate, actively managing **2.7 million metric tons** of CO2 emissions in 2023 through renewable investments and navigating regulatory oversight - PNMR has set a goal for a **100%** emissions-free generating portfolio by **2040**, which is more aggressive than the state-mandated **2045** target[415](index=415&type=chunk)[443](index=443&type=chunk) - In 2023, GHG emissions from PNM's fossil-fueled plants were approximately **2.7 million metric tons** of CO2[419](index=419&type=chunk) - As of March 31, 2024, PNM has **1,577 MW** of renewable/storage capacity in service and another **1,392 MW** of approved projects expected by 2025, with an additional **410 MW** requested for the 2026 summer peak[421](index=421&type=chunk) - On April 25, 2024, the EPA signed a final rule under CAA Section 111 for GHG emissions from power plants, requiring existing coal units to use technologies like CCS or co-firing gas, and setting standards for new gas turbines, with the company assessing the impact[433](index=433&type=chunk) [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=101&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages market risks including commodity, credit, interest rate, and equity, with **$1.0 billion** in variable-rate long-term debt and potential **$25.2 million** impact from a 10% equity price drop in trust funds Variable Rate Debt Exposure (as of April 26, 2024) | Debt Type | Balance Outstanding ($ million) | | :--- | :--- | | **Short-term Debt (Revolving Credit Facilities)** | | | PNMR Revolving Credit Facility | $40.7 | | PNM Revolving Credit Facility | $170.2 | | PNM New Mexico Credit Facility | $40.0 | | TNMP Revolving Credit Facility | $42.0 | | **Total Short-term** | **$292.9** | | **Long-term Debt (Term Loans)** | | | PNMR 2021 Delayed-Draw Term Loan | $500.0 | | PNMR 2023 Term Loan | $500.0 | | **Total Long-term** | **$1,000.0** | - A hypothetical **10%** decrease in equity prices would reduce the fair value of the decommissioning and reclamation trust funds by **$25.2 million**[483](index=483&type=chunk) - A hypothetical **50 basis point** increase in interest rates would decrease the fair value of fixed-rate securities in the decommissioning and reclamation trusts by **$1.0 million** (**1.3%**)[481](index=481&type=chunk) [CONTROLS AND PROCEDURES](index=103&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during Q1 2024 - The Chief Executive Officer and Chief Financial Officer of PNMR, PNM, and TNMP concluded that the company's disclosure controls and procedures are effective as of March 31, 2024[484](index=484&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2024 that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[485](index=485&type=chunk) [PART II. OTHER INFORMATION](index=103&type=section&id=PART%20II.%20OTHER%20INFORMATION) [LEGAL PROCEEDINGS](index=103&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section incorporates by reference detailed legal and regulatory proceedings from Notes 11 and 12 of the financial statements, covering various rate cases and environmental matters - Information regarding legal proceedings is incorporated by reference from Note 11 and Note 12 of the financial statements[486](index=486&type=chunk) [RISK FACTORS](index=104&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to risk factors since the 2023 Annual Report, except for an expanded discussion on wildfire risks, which could lead to higher costs, liabilities, and service disruptions - A key risk factor is the potential negative impact of wildfires on operations and financial results, including higher maintenance costs, increased insurance premiums, liability for damages, and potential for intentional power interruptions[490](index=490&type=chunk)[491](index=491&type=chunk) [OTHER INFORMATION](index=104&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2024 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q1 2024[492](index=492&type=chunk) [EXHIBITS](index=104&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with Form 10-Q, including supplemental indentures, amended credit agreements, incentive plans, and CEO/CFO certifications - Filed exhibits include updated credit agreements for PNMR, PNM, and TNMP, a new Bond Purchase Agreement for TNMP, and new long-term incentive plans[493](index=493&type=chunk)[494](index=494&type=chunk)