Txnm Energy, Inc. · NYSE:TXNM
Txnm Energy — PNM Resources — Q1 2021 Earnings Presentation
21 slides from Txnm Energy's earnings presentation, Apr 30, 2021
Slide 1: Q1 2021 Earnings Review
Q1 2021 Earnings Review April 30, 2021
Slide 2: Contact Information and Safe Harbor Statement
Contact Information and Safe Harbor Statement Investor Relations Contact Information Lisa Goodman Beilen Middleton Director, Investor Relations and Shareholder Services Senior Investor Relations Specialist U.S. 1-505-241-2160 U.S. 1-505-241-2135 Lisa.Goodman@pnmresources.com Beilen.Middleton@pnmreso
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 the second half of 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 Ju
Slide 4: Overview and Highlights
Overview and Highlights
Slide 5: Q1 2021 Financial Results and Company Updates
Q1 2021 Financial Results and Company Updates Financial Results Q1 results show signs of Q1 2021 Q1 2020 recovery from COVID GAAP EPS Clean Energy impacts at PNM and TNMP $0.20 Strong Financial ($0.19) Ongoing EPS Focus$0.32 $0.18 Profile 2021 Ongoing EPS Guidance $2.27 - $2.37 affirmed 2021 guidanc
Slide 6: Q1 2021 ESG Highlights
Q1 2021 ESG Highlights Four Corners PNM Joins the Coal Plant Moves Supporting Western Energy to Seasonal Communities Imbalance Operations Market • Begins in Fall of 2023; • PNM Resources Foundation • Participation brings ensures owners can meet awarded $250k of substantial benefits to summer peak de
Slide 7: Financial Updates
Financial Updates
Slide 8: Q1 2021 Ongoing EPS Financial Summary
Q1 2021 Ongoing EPS Financial Summary Q1 2021 earnings show signs of Q1 Earnings Summary recovery from COVID impacts along with: Clean$0.11 Energy $0.01 Strong $0.02 $0.32 Financial • Interest savings from the Focus TNMP Profile Corporate refinancing of debt at PNM and the repayment of debt balances
Slide 9: Q1 2021 vs Q1 2020 EPS (Ongoing): PNM
Q1 2021 vs Q1 2020 EPS (Ongoing): PNM • Refinancing of debt at lower interest rates in 2020 PNM $0.27 • Decommissioning / reclamation $0.16 trust gains in Q1 2021 compared to losses in Q1 2020 due to COVID-related market volatility Q1 2020 Q1 2021 • Colder temperatures and increased residential usag
Slide 10: Q1 2021 vs Q1 2020 EPS (Ongoing): TNMP
Q1 2021 vs Q1 2020 EPS (Ongoing): TNMP TNMP • Rate relief from 2020 TCOS and $0.09 $0.10 DCOS filings and the implementation of the first 2021 TCOS increase in March Q1 2020 Q1 2021 • Weather-normalized load growth and colder temperatures Q1 2021 Key Performance Drivers ∆ EPS throughout the quarter
Slide 11: Q1 2021 vs Q1 2020 EPS (Ongoing): Corporate
Q1 2021 vs Q1 2020 EPS (Ongoing): Corporate Corporate ($0.07) ($0.05) • Interest expense savings from the paydown of debt with proceeds from the December 2020 Q1 2020 Q1 2021 issuance of additional shares Q1 2021 Key Performance Drivers ∆ EPS • Corporate losses were reduced by the timing of effectiv
Slide 12: Load and Economic Conditions
Load and Economic Conditions PNM New Mexico shows beginning signs of recovery, Q1 2021 results improve from the level of COVID-related PNM vs. 2021E declines experienced throughout 2020 Q1 2020 Continued customer growth Total Retail Load(1) (2.1%) 0.5% – 1.5% Residential growth was more than off
Slide 13: 2021 Consolidated Ongoing Earnings Guidance
2021 Consolidated Ongoing Earnings Guidance Strong Financial 2021 Earnings Guidance Profile $2.27 - $2.37 $2.27 Consolidated EPS $2.37 guidance affirmed Higher first quarter results show PNM TNMP Corp/Other signs of COVID recovery ahead $1.63 – $1.69 $0.77 – $0.79 ($0.13) – ($0.11) of the load assum
Slide 14: 2021 – 2025 Investment Plan
2021 – 2025 Investment Plan $4.0B investment plan focused on T&D infrastructure investments $1,045 $34 $301 $761 $761 $27 $31 $712 $705 $26 $26 $300 $321 $327 $324 $324 (in millions) $325 $337 $348 $298 $362 $299 $376 $291 $317 $338 $85 $76 $55 $64 $56 2021 2022 2023 2024 2025 PNM Generation TNMP PN
Slide 15: Appendix
Pres PNV(C Resources’
Slide 16: PNM and TNMP Regulatory Agenda
PNM and TNMP Regulatory Agenda Filing Action Timing Docket No. Filed Jan. 29, 2021 (2020 filing date Variance to 120-day regulatory timeframe 2020 Integrated Resource delayed to incorporate San Juan to accept or reject plan has been granted, 21-00033-UT Plan replacement power decision) extended time
Slide 17: Weather Impacts
Weather Impacts Q1 Q1 2021 PNM 2021 2020 Normal(1) PNM Heating Degree Days Heating Degree Days 1,206 1,095 1,126 in Q1 2021 were 7% higher Cooling Degree Days 0 0 0 than Normal Net EPS Impact compared to Normal $0.01 $0.00 Q1 Q1 2021 TNMP 2021 2020 Normal(1) TNMP Cooling Degree Days in Q1 2021 were
Slide 18: Balance Sheet and Credit Metrics
Balance Sheet and Credit Metrics
Slide 19: Liquidity as of April 23, 2021
Liquidity as of April 23, 2021 PNM Corporate/ Resources PNM TNMP Other Consolidated • Available liquidity Financing Capacity(1): (In millions) strengthened by the issuance of long-term Revolving credit $440.0 $75.0 $340.0 $855.0 facilities debt at PNM and TNMP in Q2 2020 and equity As of 4/23/21: is
Slide 20: Selected Balance Sheet Information
Selected Balance Sheet Information (In millions) Dec 31, 2020 March 31, 2021 Long-Term Debt (incl. current portion) (1) PNM $1,696.6 $1,697.2 TNMP 853.7 853.6 Corporate/Other 744.9 664.9 Consolidated $3,295.2 $3,215.7 Total Debt (incl. short-term) (1,2) PNM $1,706.6 $1,697.2 TNMP 853.7 896.7 Corpora
Slide 21: 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 PNM S&P Moody’s Moody’s Issuer rating BBB Baa2 • S&P: PNM Resource