Txnm Energy, Inc. · NYSE:TXNM
Txnm Energy — PNM Resources — Q1 2018 Earnings Presentation
21 slides from Txnm Energy's earnings presentation, Apr 27, 2018
Slide 1: Q1 2018 Earnings Review
Q1 2018 Earnings Review April 27, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements made in this presentation that relate to future events or PNM Resources, Inc.’s (“PNMR”), Public Service Company of New Mexico’s (“PNM”), or Texas-New Mexico Power Company’s (“TNMP”) (collectively, the “Company”) expectations, projections, estimates, intentions, goal
Slide 3: Opening Remarks and Overview
Opening Remarks and Overview Pat Vincent-Collawn Chairman, President and CEO
Slide 4: Q1 2018 Financial Results and Regulatory Updates
Q1 2018 Financial Results and Regulatory Updates Financial Results: Q1 2018 Q1 2017 GAAP EPS $0.19 $0.29 Ongoing EPS $0.21 $0.28 • 2018 Ongoing EPS Guidance of $1.82 - $1.92 affirmed • 2019 Ongoing EPS Guidance of $2.04 - $2.16 affirmed Regulatory Updates: • PNM: AMI, New Mexico Supreme Court appeal
Slide 5: Financial Overview
Financial Overview Chuck Eldred Executive Vice President and CFO
Slide 6: Load and Economic Conditions
Load and Economic Conditions Regulated Retail Energy Sales and Customers (weather-normalized) Q1 2018 PNM / TNMP vs. 2018E 2019E Q1 2017 PNM Residential & Commercial (0.7%) ~(0.3%) ~(0.3%) Total PNM Retail Load (0.9%) (0.7%) – 0% (0.5%) – 0.5% PNM Avg. Customers 0.7% ~0.5% per year TNMP Total Volume
Slide 7: Q1 2018 Financial Summary
Q1 2018 Financial Summary Ongoing EPS $0.28 ($0.08) $0.03 ($0.02) $0.21 Corporate PNM TNMP Q1 2017 Q1 2018 7
Slide 8: Consolidated Earnings and Quarterly Earnings Distribution Guidance
Consolidated Earnings and Quarterly Earnings Distribution Guidance (Ongoing) Consolidated Earnings Guidance 2018 2019 Consolidated EPS $1.82 - $1.92 $2.04 - $2.16 PNM $1.39 - $1.46 $1.54 - $1.61 TNMP $0.54 - $0.56 $0.63 - $0.66 Corporate/Other ($0.11) – ($0.10) ($0.13) – ($0.11) 2018-2019 Quarterly
Slide 9: Questions and Answers
Questions and Answers
Slide 10: Appendix
Appendix
Slide 11: PNM and TNMP Regulatory Update
PNM and TNMP Regulatory Update Filing Action Timing Docket No. PNM Appeal of 2015 General Rate Case to New Mexico Oral arguments held October 30, 2017 No statutory timeline S-1-SC-36115 Supreme Court PNM Advanced Metering Final order issued April 11, 2018 Final order calls for a future 15-00312-UT I
Slide 12: Q1 2018 vs Q1 2017 EPS (Ongoing): PNM
Q1 2018 vs Q1 2017 EPS (Ongoing): PNM PNM Q1 2018 Key Performance Drivers ∆ EPS Tax reform $0.04 Transmission margin $0.03 Retail rate phase-in $0.02 (includes federal and accelerated state tax amortization) $0.20 Weather $0.02 $0.12 Retail generation portfolio changes approved in BART settlement ($
Slide 13: Q1 2018 vs Q1 2017 EPS (Ongoing): TNMP and Corporate
Q1 2018 vs Q1 2017 EPS (Ongoing): TNMP and Corporate TNMP Q1 2018 Key Performance Drivers ∆ EPS $0.09 $0.12 TCOS rate relief $0.02 Load $0.01 Weather $0.01 Tax reform $0.01 Q1 2017 Q1 2018 Depreciation and property tax ($0.01) Other ($0.01) Corporate Q1 2018 Key Performance Drivers ∆ EPS ($0.01) ($0
Slide 14: Capital Forecast
Capital Forecast Targeted Consolidated 2018-2021 Rate Base CAGR(1): 6% - 7% 2018–2022 Total Capital Plan: $2.7B $680 $17 Palo Verde Unit 3 added to (In millions) rate base $170 $527 $501 $17 $500 $503 $19 $17 $17 $170 $115 $186 $170 $170 $51 $39 $81 $146 $297 $141 $126 $156 $283 $287 $20 $53 $254 $2
Slide 15: Potential Earnings Power
Potential Earnings Power Allowed 2018 Ongoing Earnings 2019 Ongoing Earnings 2020 Earnings 2021 Earnings Return / Guidance Midpoint Guidance Midpoint Potential Potential Equity Avg Rate Avg Rate Avg Rate Avg Rate Return EPS Return EPS EPS EPS Ratio Base Base Base Base 9.575% / PNM Retail(1) $2.3 B 8
Slide 16: Weather Impact
Weather Impact PNM Q1 2018 Q1 2017 2018 Normal(1) Heating Degree Days 989 831 1,092 Cooling Degree Days 0 1 0 Net EPS Impact ($0.01) ($0.03) compared to normal TNMP Q1 2018 Q1 2017 2018 Normal(1) Heating Degree Days 878 510 902 Cooling Degree Days 150 233 88 Net EPS Impact $0.00 ($0.01) compared to
Slide 17: PNM Scheduled Plant Outages
PNM Scheduled Plant Outages San Juan Four Corners Palo Verde Duration Time Duration Time Duration Time Unit Unit Unit in Days Period in Days Period in Days Period 1 91 Q1-Q2 2018 4 114 Q1-Q2 2018 3 30 Q2 2018 4 43 Q1-Q2 2019 4 12 Q2 2019 2 44 Q4 2018 5 12 Q2 2019 1 30 Q2 2019 3 43 Q4 2019 17
Slide 18: Balance Sheet and Credit Ratings
Balance Sheet and Credit Ratings
Slide 19: Liquidity as of April 23, 2018
Liquidity as of April 23, 2018 PNMR PNMR PNM Develop- Corporate Resources PNM TNMP ment /Other Consolidated Financing Capacity(1): (In millions) Revolving credit facilities $440.0 $75.0 $24.5 $300.0 $839.5 As of 4/23/18: Short-term debt and LOC balances $2.5 $40.5 $24.5 $102.6 $170.1 Remaining avail
Slide 20: Selected Balance Sheet Information
Selected Balance Sheet Information (In millions) Dec 31, 2017 Mar 31, 2018 Long-Term Debt (incl. current portion) (1) PNM $1,657.9 $1,658.4 TNMP 480.6 480.7 Corporate/Other 299.1 442.4 Consolidated $2,437.6 $2,581.5 Total Debt (incl. short-term) (2) PNM $1,697.7 $1,658.4 TNMP 480.6 501.9 Corporate/O
Slide 21: Credit Ratings
Credit Ratings PNMR Consolidated S&P Moody’s Issuer rating BBB+ Baa3 Outlook Negative Positive Senior unsecured rating BBB Baa3 PNM S&P Moody’s Issuer rating BBB+ Baa2 Outlook Negative Positive Senior unsecured rating BBB+ Baa2 TNMP S&P Moody’s Issuer rating BBB+ A3 Issuer outlook Negative Stable Se