TXNM Energy, Inc.(TXNM) - 2024 Q3 - Quarterly Report

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 in the prior year, reflecting 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 same period last year, marking 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 in the prior year, indicating an increase of 229.5%[20]. - 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]. - Comprehensive income attributable to TXNM for the three months ended September 30, 2024, was $127,703 thousand, compared to$34,541 thousand in the prior year, an increase of 269.5%[22]. - Net earnings for the three months ended September 30, 2024, were $113,862,000, compared to$13,266,000 for the same period in 2023, representing a significant increase[36]. - 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 8.8%[54]. Revenue and Expenses - Electric operating revenues for the nine months ended September 30, 2024, reached $445,930 thousand, up from$408,343 thousand in the prior year, marking an increase of about 9.2%[51]. - Total operating expenses for the nine months ended September 30, 2024, were $307,407 thousand, compared to$291,675 thousand in the previous year, an increase of approximately 5.4%[51]. - The cost of energy for the three months ended September 30, 2024, was $101,495 thousand, a decrease from$174,362 thousand in the same period of 2023, representing a reduction of 42%[34]. - Total operating expenses for the three months ended September 30, 2024, were $272,510 thousand, down from$319,638 thousand in the same period of 2023, a decrease of 15%[34]. 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 flows from financing activities showed a net increase of $468,830 thousand for the nine months ended September 30, 2024, compared to$402,963 thousand for the same period in 2023, reflecting a growth of approximately 16.3%[27]. - Utility plant additions for the nine months ended September 30, 2024, were $493,381,000, an increase from$424,292,000 in the same period of 2023[38]. 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]. - Retained earnings grew to $908,693 thousand, up from$787,110 thousand, which is an increase of approximately 15.4%[31]. - Total current liabilities increased to $900,237 thousand from$839,194 thousand, representing a growth of approximately 7.5%[45]. - Long-term debt increased to $1,464,054,000 as of September 30, 2024, from$1,180,933,000 at the end of 2023, representing a rise of approximately 24.0%[58]. 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 has a $1 billion Unsecured Delayed-Draw Term Loan maturing on May 18, 2025[17]. - TXNM's 2023 Term Loan is valued at$500 million, maturing on June 30, 2026[17]. - TXNM executed forward sale agreements for the sale of 2,458,951 shares of common stock at weighted average initial prices of $37.77 and$40.58 per share[160][161]. - PNM filed a shelf registration statement for the issuance of up to $650.0 million of SUNs, expiring in May 2026[157]. Dividends - Dividends declared per common share increased to$0.3875 for the three months ended September 30, 2024, compared to $0.3675 in the prior year, a rise of 3.1$105,254 thousand, compared to $95,029 thousand in the previous period, representing an increase of about 10.5$132 thousand for the three months ended September 30, 2024, consistent with the previous quarter[48]. Regulatory and Environmental - 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]. - The Energy Transition Act allows for the recovery of undepreciated investments and decommissioning costs related to qualifying electric generating units[201]. - States are required to establish interim goals for visibility improvement in national parks and develop long-term strategies to reduce emissions under the Clean Air Act[207]. - The EPA issued a "Finding of Failure to Submit" for states, including New Mexico, that have not submitted a round 2 regional haze SIP, initiating a 2-year timeline for a Federal Implementation Plan[211]. Stock and Compensation - The stock-based compensation expense related to unrecognized stock awards was $6.2 million, expected to be recognized over an average of 1.6 years[146]. - The company granted 249,282 restricted shares during the nine months ended September 30, 2024, with 208,442 shares released[150]. - The company’s performance stock awards are subject to achieving both performance and market targets, with certain awards vesting immediately upon retirement[144].