Txnm Energy, Inc. · NYSE:TXNM
Txnm Energy — PNM Resources — Q3 2021 Earnings Presentation
20 slides from Txnm Energy's earnings presentation, Oct 28, 2021
Slide 1: Q3 2021 Earnings Review
Q3 2021 Earnings Review October 28, 2021
Slide 2: Contact Information and Safe Harbor Statement
Contact Information and Safe Harbor Statement Investor Relations Contact Information Lisa Goodman Director, Investor Relations and Shareholder Services U.S. 1-505-241-2160 Lisa.Goodman@pnmresources.com Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements made i
Slide 3: AVANGRID and PNM Resources Strategic Merger Update
AVANGRID and PNM Resources Strategic Merger Update Merger announced October 21, 2020, expected to close in Q4 2021 Approvals and expected timeframes: Filing Date Filed Docket No. Approvals/Clearances Proxy filing / Shareholder approval 1/5/2021 N/A Approved 2/12/2021 Department of Justice (Hart-Scot
Slide 4: Overview and Highlights
Overview and Highlights
Slide 5: Q3 2021 Financial Results and Company Updates
Q3 2021 Financial Results and Company Updates Financial Results Q3 2021 Q3 2020 YTD 2021 YTD 2020 GAAP EPS Clean $1.32 Energy $1.52 Strong Q3 2021 results reflect $2.14 Financial $2.05 Ongoing EPS Focus $1.37 $1.40 $2.25 $2.13 increased earnings offset by Profile 2021 Ongoing EPS Guidance withdrawn,
Slide 6: Q3 2021 ESG Highlights
Q3 2021 ESG Highlights Demonstrating Recognizing Partnering Our Values in Diversity in Our with Our Our Work Leadership Community • TNMP continued its • PNM Resources Board • PNM increased its commitment to industry member Vicky Bailey support for education excellence and support by recognized in Sa
Slide 7: Financial Updates
Financial Updates 5. PN M(OResources ae
Slide 8: Q3 2021 Ongoing EPS Financial Summary
Q3 2021 Ongoing EPS Financial Summary Overall increase in year-over-year Q3 Earnings Summary net earnings was offset by the impact of additional shares. $1.40 ($0.07) $0.03 $0.01 $1.37 Changes in net earnings were Clean Energy Strong Financial Corporate PNM TNMP driven by: Focus Profile • Increased
Slide 9: Q3 2021 vs Q3 2020 EPS (Ongoing): PNM
Q3 2021 vs Q3 2020 EPS (Ongoing): PNM • Higher transmission margins due PNM to higher network demand and $1.12 $1.05 the addition of a new customer • Increased decommissioning / reclamation trust gains Q3 2020 Q3 2021 • Refinancing of debt at lower interest rates in 2020 Q3 2021 Key Performance Driv
Slide 10: Q3 2021 vs Q3 2020 EPS (Ongoing): TNMP
Q3 2021 vs Q3 2020 EPS (Ongoing): TNMP TNMP $0.30 $0.33 • Rate relief includes the implementation of semi-annual TCOS filings and the annual Q3 2020 Q3 2021 DCOS filings • Increased demand-based load Q3 2021 Key Performance Drivers ∆ EPS was partially offset by lower Transmission rate relief (TCOS)
Slide 11: Q3 2021 vs Q3 2020 EPS (Ongoing): Corporate
Q3 2021 vs Q3 2020 EPS (Ongoing): Corporate Corporate ($0.02) ($0.01) Q3 2020 Q3 2021 • Interest expense savings from the paydown of debt with proceeds Q3 2021 Key Performance Drivers ∆ EPS from the December 2020 issuance of additional shares Interest expense savings $0.02 Other ($0.01) 11
Slide 12: Load and Economic Conditions
Load and Economic Conditions PNM PNM growth in-line with expectation for economic Q3 2021 Q3 YTD 2021 recovery from COVID load trends in the second PNM vs. vs. half of 2021 Q3 2020 Q3 YTD 2020 Retail load growth reflects the expected economic recovery Total Retail Load(1) 2.2% 0.8% from COVID tren
Slide 13: 2021 – 2025 Investment Plan
2021 – 2025 Investment Plan Continued $4.0B investment plan focused on T&D infrastructure investments $1,045 $37 $301 $761 $761 $27 $31 $712 $705 $26 $26 $293 $321 $327 $324 $324 (in millions) $330 $337 $348 $298 $362 $299 $376 $317 $338 $281 $85 $76 $55 $64 $56 2021 2022 2023 2024 2025 PNM Generati
Slide 14: Appendix
Appendix — PNM(C Resources’
Slide 15: PNM and TNMP Regulatory Agenda
PNM and TNMP Regulatory Agenda Filing Action Timing Docket No. Hearings concluded in Aug. 2021; Merger transaction approval pending Hearing Examiner’s NMPRC decision expected in Q4 2021 20-00222-UT Recommended Decision Hearings completed in Sept. 2021; Decision expected by Dec. 15, 2021 Abandonment/
Slide 16: Weather Impacts
Weather Impacts Q3 Q3 2021 PNM 2021 2020 Normal(1) PNM Cooling Degree Days Heating Degree Days 0 19 1 in Q3 2021 were 2% higher Cooling Degree Days 978 1,107 963 than Normal and 12% Net EPS Impact $0.01 $0.07 lower than Q3 2020 compared to Normal Q3 Q3 2021 TNMP 2021 2020 Normal(1) TNMP Cooling Degr
Slide 17: Balance Sheet and Credit Metrics
Balance Sheet and Credit Metrics
Slide 18: Liquidity as of October 22, 2021
Liquidity as of October 22, 2021 PNM Corporate/ Resources PNM TNMP Other Consolidated • Available liquidity Financing Capacity(1): (In millions) strengthened by Q4 2020 equity issuance Revolving credit $440.0 $75.0 $300.0 $815.0 facilities and long-term debt issuances at PNM As of 10/22/21: and TNMP
Slide 19: Selected Balance Sheet Information
Selected Balance Sheet Information (In millions) Dec. 31, 2020 Sept. 30, 2021 Long-Term Debt (incl. current portion) (1) PNM $1,696.6 $1,732.4 TNMP 853.7 918.1 Corporate/Other 744.9 849.7 Consolidated $3,295.2 $3,500.2 Total Debt (incl. short-term) (1,2) PNM $1,706.6 $1,732.4 TNMP 853.7 918.1 Corpor
Slide 20: Credit Ratings
Credit Ratings Investment grade credit PNMR Consolidated S&P Moody’s ratings at PNM Resources, Issuer rating BBB Baa3 PNM and TNMP Outlook Positive Stable Senior unsecured rating BBB- Baa3 Merger considered credit positive by S&P and Moody’s PNM S&P Moody’s • S&P: PNM Resources Issuer rating BBB Baa