Financial Data and Key Metrics Changes - Ongoing earnings for 2024 were reported at $2.74 per share, at the high end of guidance for the year [6] - Guidance for 2025 is set between $2.74 and $2.84 per share, reflecting strong growth in Texas and an unopposed settlement in New Mexico [7] - The five-year investment plan in Texas has increased by over $1 billion, targeting earnings growth of 7% to 9% through 2029 [8][9] Business Line Data and Key Metrics Changes - TNMP reported an 18% increase in system peak records, with data center demand totaling over 600 megawatts at year-end, reflecting a 200 megawatt increase in Q4 [13] - Expected growth from distribution customers billed on a volumetric basis is 2% to 4%, and 4% to 6% from demand-based customers [14] - PNM added 500 megawatts of solar and storage in November, bringing total carbon-free resource capacity to approximately 1,500 megawatts [20] Market Data and Key Metrics Changes - Interconnection requests in 2024 were 10% higher than in 2023, indicating increased growth expectations for 2025 [14] - The approval of the grid modernization plan at PNM is expected to enhance customer integration of renewable resources [21] Company Strategy and Development Direction - The company is focusing on balancing customer affordability with infrastructure needs, particularly in New Mexico [23] - A five-year investment plan includes significant capital investments aimed at enhancing system resiliency and supporting growth in Texas [16][26] - The company is committed to transitioning to clean energy, with plans to increase carbon-free resources to 75% by 2026 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the targeted earnings growth of 7% to 9%, highlighting strong growth in Texas [47] - The company is optimistic about regulatory accomplishments and ongoing economic development initiatives in New Mexico [10][25] Other Important Information - The board increased the dividend by 5%, maintaining a targeted payout ratio of 50% to 60% for 2025 [9] - The company plans to file a base rate review in 2025, recognizing changes in components of base rates since the last approval in 2018 [19] Q&A Session Summary Question: Can you clarify the incremental opportunity in the plan and the $750 million related to the Permian? - Management discussed the balance between affordability and capital expenditure in New Mexico, highlighting economic development legislation and transmission build opportunities [55][56][60] Question: What structure is assumed for the remaining term loan in the Texas rate case? - Management indicated that the term loan would be replaced with debt while including equity content to strengthen credit metrics [64][66] Question: How should we interpret the wider range in the CAGR guidance? - Management explained that the broader range reflects the significant capital expenditure included in the budget and a comfortable outlook for growth [105] Question: Is the 5% dividend increase a good benchmark for future years? - Management stated that the board reviews dividends annually, considering various factors, and the target is to maintain a payout ratio around the middle of the 50% to 60% range [107][109] Question: What is the timeline for stakeholder engagement regarding Four Corners? - Management confirmed plans to exit Four Corners by 2031 and emphasized the importance of the 2029 to 2032 RFP for replacement alternatives [117]

2024 Earnings Review and 2025 Earnings Guidance February 21, 2025 Safe Harbor Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements made in this presentation for TXNM Energy, Inc. ("TXNM"), 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 ...

Financial Performance - TXNM Energy reported 2024 GAAP earnings of $2.67 per diluted share, with ongoing earnings of $2.74 per diluted share, achieving the high end of original guidance[6]. - GAAP net earnings attributable to TXNM Energy for 2024 were $242.2 million, compared to $87.8 million in 2023[8]. - Ongoing net earnings for 2024 were $247.8 million, slightly up from $243.5 million in 2023[8]. - PNM's GAAP diluted EPS for 2024 was $2.12, significantly up from $0.41 in 2023[11]. - TNMP's ongoing diluted EPS for 2024 was $1.15, compared to $1.11 in 2023, indicating stable performance[11]. - GAAP Net Earnings for the quarter ended December 31, 2024, were $15,714 thousand, compared to a loss of $50,226 thousand for the same quarter in 2023[22]. - Ongoing Earnings for the year ended December 31, 2024, reached $247,819 thousand, an increase from $243,537 thousand in 2023[24]. - GAAP Net Earnings attributable to TXNM for Q4 2024 was $0.17, compared to a loss of $0.58 in Q4 2023[27]. - Net Earnings Attributable to TXNM for the year ended December 31, 2024, was $242,154,000, compared to $87,818,000 in 2023[31]. Revenue and Operating Income - The company experienced a decrease in Electric Operating Revenues of $52.2 million for the three months ended December 31, 2023[24]. - Total Electric Operating Revenues for the year ended December 31, 2024, were $1,971,199,000, a slight increase from $1,939,198,000 in 2023[31]. - Operating income for the year ended December 31, 2024, was $453,486,000, significantly higher than $231,340,000 in 2023[31]. Earnings Guidance and Growth Targets - The company increased its long-term earnings growth target to 7% to 9%[2]. - 2025 ongoing earnings guidance was introduced at a range of $2.74 to $2.84 per diluted share, reflecting strong growth at TNMP and a mid-year implementation of PNM's rate increase[5]. - TXNM Energy's ongoing earnings guidance reflects continued strong growth and the impact of new rates implemented at PNM Retail and FERC[5]. Capital Investment and Infrastructure - TXNM Energy's 5-year capital investment plan increased to $7.8 billion, a 26% increase over the prior plan, with a regulated rate base growth of 12% compared to 2025 levels[4]. - The company plans to prioritize investments for a more reliable and resilient grid in Texas and New Mexico[3]. Adjustments and Expenses - Regulatory disallowances increased by $118,411 thousand for the quarter ended December 31, 2023, contributing significantly to the adjustments[24]. - The total adjustments before income tax effects for the year ended December 31, 2024, amounted to $26,160 thousand, compared to $213,437 thousand in 2023[24]. - The income tax impact of adjusting items for the year ended December 31, 2024, was a total of $(20,495) thousand, reflecting significant tax adjustments[22]. - The company reported a pension expense related to previously disposed of gas distribution business of $1,732 thousand for the year ended December 31, 2024[22]. - Merger-related costs for the quarter ended December 31, 2024, totaled $913 thousand, compared to $1,274 thousand in the same quarter of 2023[22]. - The company reported a decrease in pension expense related to previously disposed of gas distribution business, contributing $0.01 to ongoing earnings in 2024[29]. Share and Earnings Adjustments - Average Diluted Shares Outstanding for the year ended December 31, 2024, was 90,590,573, compared to 86,368,999 in 2023[29]. - Total Adjustments for GAAP to Ongoing Earnings in Q4 2024 amounted to $0.13, while in Q4 2023 it was $0.76[29]. - Regulatory disallowances contributed $1.02 to GAAP Net Earnings in Q4 2023, a significant increase from $0.01 in Q4 2024[29]. - Ongoing Earnings for Q4 2024 were $0.30, compared to $0.18 in Q4 2023, indicating a growth of 66.7%[29]. - The net change in unrealized gains and losses on investment securities for the quarter ended December 31, 2024, was $13,486 thousand, while it was a loss of $26,840 thousand in the same quarter of 2023[22]. - The cost of energy decreased to $583,984,000 in 2024 from $802,261,000 in 2023, reflecting a reduction of approximately 27.3%[31].

Core Insights - TXNM Energy reported a long-term earnings growth target increase to 7% to 9% and provided 2025 ongoing earnings guidance of $2.74 to $2.84 per diluted share [1][4][5] Financial Performance - For 2024, TXNM Energy reported GAAP earnings of $2.67 per diluted share, with ongoing earnings of $2.74 per diluted share, achieving the high end of the original guidance [5][7] - The company’s GAAP net earnings attributable to TXNM Energy for 2024 were $242.2 million, compared to $87.8 million in 2023 [5][23] - Ongoing net earnings for 2024 were $247.8 million, slightly up from $243.5 million in 2023 [5] Growth Outlook - TXNM Energy's 5-year capital investment plan for 2025-2029 has been increased to $7.8 billion, representing a 26% increase over the previous plan [3] - The regulated rate base is expected to grow by 12% compared to 2025 levels, with targeted earnings per share growth of 7% to 9% during this period [3][7] Segment Performance - In 2024, PNM's GAAP diluted EPS was $2.12, up from $0.41 in 2023, while TNMP's GAAP diluted EPS increased to $1.14 from $1.10 [7][21] - Corporate and Other segment reported a loss of $0.59 per diluted share in 2024, compared to a loss of $0.49 in 2023 [7][21] Earnings Guidance - The ongoing earnings guidance for 2025 reflects strong growth at TNMP and the mid-year implementation of PNM's stipulated rate increase [4][5] - The ongoing earnings guidance range for 2025 is set at $2.74 to $2.84 per diluted share [4][5]

Core Viewpoint - TXNM Energy, Inc. is set to announce its 2024 financial results and provide ongoing earnings guidance for 2025 on February 21, 2025, prior to market opening [1] Group 1: Financial Results Announcement - The financial results for 2024 will be disclosed along with 2025 earnings guidance [1] - A live conference call will be held at 11 a.m. Eastern Time to discuss these results and other updates [1] Group 2: Participation Details - Investors and analysts can pre-register for the live conference call through a provided link [2] - Telephone participants can join by dialing specific numbers fifteen minutes before the event [2] Group 3: Company Background - TXNM Energy is an energy holding company based in Albuquerque, New Mexico, serving over 800,000 homes and businesses in Texas and New Mexico [4] - The company operates through its regulated utilities, TNMP and PNM [4]

Core Insights - The article compares PNM Resources (TXNM) and Bloom Energy (BE) to determine which stock offers better value for investors [1] Group 1: Zacks Rank and Earnings Outlook - TXNM has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while BE has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting TXNM is likely experiencing a more favorable earnings outlook [3] Group 2: Valuation Metrics - TXNM has a forward P/E ratio of 18.08, significantly lower than BE's forward P/E of 331.17, indicating TXNM may be undervalued [5] - TXNM's PEG ratio is 6.07, while BE's PEG ratio is 13.25, further suggesting TXNM offers better value considering expected earnings growth [5] - TXNM's P/B ratio is 1.77, compared to BE's P/B of 12.85, reinforcing the notion that TXNM is more attractively priced relative to its book value [6] Group 3: Value Grades - TXNM holds a Value grade of A, while BE has a Value grade of D, indicating TXNM is viewed as a superior value option based on its earnings outlook and valuation metrics [7]

Core Points - TNMP, a subsidiary of TXNM Energy, filed an unopposed settlement for a System Resiliency Plan with the Public Utility Commission of Texas [1] - The settlement includes $565.8 million in capital investments from 2025 to 2027, covering 94% of TNMP's proposed investments [2] - An additional $128.2 million is allocated for operations and maintenance expenses related to programs such as vegetation management and wildfire mitigation [2] - The settlement is pending approval from the PUCT [3] Company Background - TXNM Energy is an energy holding company based in Albuquerque, New Mexico, serving over 800,000 homes and businesses in Texas and New Mexico through its regulated utilities, TNMP and PNM [3]

Core Points - TXNM Energy has increased its annual dividend payment by $0.08, representing a 5.2% increase, bringing the indicated annual rate to $1.63 per share [1] - The quarterly stock dividend of $0.4075 per share is payable on February 14, 2025, to shareholders of record as of January 31, 2025 [1] - Public Service Company of New Mexico, a subsidiary of TXNM Energy, declared a quarterly dividend of $1.145 per share on its cumulative preferred stock, payable on January 15, 2025, to shareholders of record as of December 31, 2024 [2] - TXNM Energy serves over 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM [3]

Core Insights - Investors are considering PNM Resources (TXNM) and Bloom Energy (BE) as potential undervalued stocks in the Alternative Energy - Other sector [1] Valuation Metrics - PNM Resources has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to Bloom Energy, which has a Zacks Rank of 3 (Hold) [3] - TXNM's forward P/E ratio is 18.09, significantly lower than BE's forward P/E of 309.20, suggesting TXNM is more attractively priced [5] - The PEG ratio for TXNM is 7.12, while BE's PEG ratio is 12.37, indicating that TXNM is expected to grow earnings at a more favorable rate relative to its price [5] - TXNM has a P/B ratio of 1.77, compared to BE's P/B of 13.67, further highlighting TXNM's relative undervaluation [6] Value Grades - Based on various valuation metrics, TXNM holds a Value grade of A, while BE has a Value grade of F, suggesting that TXNM is the better option for value investors at this time [7]

Core Points - TNMP, a subsidiary of TXNM Energy, filed an unopposed joint motion to abate the procedural schedule for its System Resiliency Plan, including the hearing scheduled for November 19-20, 2024, which was approved by the administrative law judge [1][2] - The parties involved have reached a settlement in principle and require time to formalize and file a settlement agreement, requesting cancellation of the hearing and an update on the settlement by December 5, 2024 [2] - TNMP's System Resiliency Plan includes $600 million in capital investments and $151 million in related costs over three years, developed through a comprehensive, data-driven approach to address various resiliency risks [3] Company Background - TXNM Energy is an energy holding company based in Albuquerque, New Mexico, providing energy to over 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM [4]