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TXNM Energy, Inc.(TXNM) - 2024 Q4 - Annual Results
TXNMTXNM Energy, Inc.(TXNM)2025-02-21 12:07

Financial Performance - TXNM Energy reported 2024 GAAP earnings of 2.67perdilutedshare,withongoingearningsof2.67 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 242.2million,comparedto242.2 million, compared to 87.8 million in 2023[8]. - Ongoing net earnings for 2024 were 247.8million,slightlyupfrom247.8 million, slightly up from 243.5 million in 2023[8]. - PNM's GAAP diluted EPS for 2024 was 2.12,significantlyupfrom2.12, significantly up from 0.41 in 2023[11]. - TNMP's ongoing diluted EPS for 2024 was 1.15,comparedto1.15, compared to 1.11 in 2023, indicating stable performance[11]. - GAAP Net Earnings for the quarter ended December 31, 2024, were 15,714thousand,comparedtoalossof15,714 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 247,819thousand,anincreasefrom247,819 thousand, an increase from 243,537 thousand in 2023[24]. - GAAP Net Earnings attributable to TXNM for Q4 2024 was 0.17,comparedtoalossof0.17, 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,comparedto242,154,000, compared to 87,818,000 in 2023[31]. Revenue and Operating Income - The company experienced a decrease in Electric Operating Revenues of 52.2millionforthethreemonthsendedDecember31,2023[24].−TotalElectricOperatingRevenuesfortheyearendedDecember31,2024,were52.2 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 1,939,198,000in2023[31].−OperatingincomefortheyearendedDecember31,2024,was1,939,198,000 in 2023[31]. - Operating income for the year ended December 31, 2024, was 453,486,000, significantly higher than 231,340,000in2023[31].EarningsGuidanceandGrowthTargets−Thecompanyincreaseditslong−termearningsgrowthtargetto7231,340,000 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 2.84perdilutedshare,reflectingstronggrowthatTNMPandamid−yearimplementationofPNM′srateincrease[5].−TXNMEnergy′songoingearningsguidancereflectscontinuedstronggrowthandtheimpactofnewratesimplementedatPNMRetailandFERC[5].CapitalInvestmentandInfrastructure−TXNMEnergy′s5−yearcapitalinvestmentplanincreasedto2.84 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 118,411thousandforthequarterendedDecember31,2023,contributingsignificantlytotheadjustments[24].−ThetotaladjustmentsbeforeincometaxeffectsfortheyearendedDecember31,2024,amountedto118,411 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 213,437thousandin2023[24].−TheincometaximpactofadjustingitemsfortheyearendedDecember31,2024,wasatotalof213,437 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 1,732thousandfortheyearendedDecember31,2024[22].−Merger−relatedcostsforthequarterendedDecember31,2024,totaled1,732 thousand for the year ended December 31, 2024[22]. - Merger-related costs for the quarter ended December 31, 2024, totaled 913 thousand, compared to 1,274thousandinthesamequarterof2023[22].−Thecompanyreportedadecreaseinpensionexpenserelatedtopreviouslydisposedofgasdistributionbusiness,contributing1,274 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,whileinQ42023itwas0.13, while in Q4 2023 it was 0.76[29]. - Regulatory disallowances contributed 1.02toGAAPNetEarningsinQ42023,asignificantincreasefrom1.02 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,comparedto0.30, 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 13,486thousand,whileitwasalossof13,486 thousand, while it was a loss of 26,840 thousand in the same quarter of 2023[22]. - The cost of energy decreased to 583,984,000in2024from583,984,000 in 2024 from 802,261,000 in 2023, reflecting a reduction of approximately 27.3%[31].