Slide 1: Q1 2017 Earnings Review
Q1 2017 Earnings Review April 28, 2017
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 2017 Financial Results and Key Highlights
Q1 2017 Financial Results and Key Highlights Financial Results: Q1 2017 Q1 2016 GAAP EPS $0.29 $0.13 Ongoing EPS $0.28 $0.13 • 2017 Ongoing EPS Guidance of $1.77 - $1.87 affirmed Key Highlights: • Agreement on parameters reached in PNM general rate case • Filed with NMPRC to request a brief extensio
Slide 5: Regulatory Update
Regulatory Update Filing Action Timing Docket No. PNM 2018 General Rate Case Settlement agreement to Decision expected in Q4 16-00276-UT Filing be filed May 5, 2017 2017 To be filed no later than PNM Integrated Resource Plan Draft issued April 20, 2017 N/A July 3, 2017 PNM Advanced Metering Hearings
Slide 6: Financial Overview
Financial Overview Chuck Eldred Executive Vice President and CFO
Slide 7: Load and Economic Conditions
Load and Economic Conditions Regulated Retail Energy Sales and Customers (weather-normalized, leap-year adjusted) % of 2016 Q1 2017 vs. % of 2016 Q1 2017 vs. PNM Sales Volumes Q1 2016 TNMP Sales Revenues Q1 2016 Retail Load: Volumetric Load(1): Residential 40% 1.6% Residential 5.7% Commercial 47% (2
Slide 8: Q1 2017 Financial Summary
Q1 2017 Financial Summary Ongoing EPS $0.15 $0.00 $0.00 $0.28 TNMP Corporate $0.13 PNM Q1 2016 Q1 2017 8
Slide 9: Q1 2017 vs Q1 2016 EPS (Ongoing): PNM and TNMP
Q1 2017 vs Q1 2016 EPS (Ongoing): PNM and TNMP PNM Q1 2017 Key Performance Drivers ∆ EPS $0.20 Retail rate relief $0.08 Outage costs $0.05 Restructuring cost savings $0.03 Transmission $0.01 Palo Verde Unit 3 market prices $0.01 Palo Verde Nuclear Decommissioning Trust gains $0.01 $0.05 Other $0.03
Slide 10: Questions and Answers
Questions and Answers
Slide 11: Appendix
Appendix
Slide 12: Consolidated EPS
2017 EPS Guidance (Ongoing) 2017 Guidance $1.77 Consolidated EPS $1.87 PNM TNMP Corp/Other $1.30 - $1.37 $0.51 - $0.53 ($0.04) – ($0.03) 12
Slide 13: 2017 - 2019 Potential Earnings Power
2017 - 2019 Potential Earnings Power Allowed 2017 Guidance Midpoint 2018 Earnings Potential 2019 Earnings Potential Return / Avg Rate Avg Rate Avg Rate Equity Ratio Return EPS EPS EPS Base Base Base PNM Retail (1) 9.575% / 50% $2.3 B 9.3% $1.33 $2.4 B $1.42 $2.4 B $1.41 Supreme Court Appeal (2) $0 -
Slide 14: Capital Forecast
Capital Forecast 2017 – 2020 Total Capital Plan: $1.7B PNM 2016-2020 Rate Base CAGR: 4 - 6%(1) TNMP 2016-2020 Rate Base CAGR: 8 - 10% (In millions) $524 Expect future Future Palo Verde $58 Unit 3 added refinements refinements to rate base include: $435 $388 $15 $404 $15 • Outcome of $158 $30 Integra
Slide 15: Weather Impact
Weather Impact PNM Q1 2017 Q1 2016 2017 Normal(1) Heating Degree Days 1,611 1,837 1,963 Cooling Degree Days 2 0 0 Net EPS Impact ($0.03) ($0.01) compared to normal TNMP Q1 2017 Q1 2016 2017 Normal(1) Heating Degree Days 554 859 1,009 Cooling Degree Days 240 82 93 Net EPS Impact ($0.01) $0.00 compare
Slide 16: PNM Scheduled Plant Outages and Retirements
PNM Scheduled Plant Outages and Retirements 2017-2018 Planned Outage Schedule 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 29 Q1 2018 4 11 Q2 2017 2 33 Q2 2017 4 29 Q2 2018 5 11 Q2 2017 1 33 Q4 2017 5 95 Q3-Q
Slide 17: Balance Sheet and Credit Metrics
Balance Sheet and Credit Metrics
Slide 18: Liquidity as of April 24, 2017
Liquidity as of April 24, 2017 PNM Corporate/ Resources PNM TNMP Other Consolidated Financing Capacity(1): (In millions) Revolving credit facilities $450.0 $75.0 $300.0 $825.0 As of 4/24/17: Short-term debt and LOC balances $17.3 $40.1 $162.3 $219.7 Remaining availability 432.7 34.9 137.7 605.3 Inve
Slide 19: Selected Balance Sheet Information
Selected Balance Sheet Information (In millions) Dec 31, 2016 Mar 31, 2017 Long-Term Debt (incl. current portion) (1) PNM $1,631.4 $1,632.0 TNMP 420.9 420.9 Corporate/Other 340.5 331.2 Consolidated $2,392.7 $2,384.2 Total Debt (incl. short-term) (2) PNM $1,692.4 $1,648.2 TNMP 420.9 442.9 Corporate/O
Slide 20: Credit Ratings
Credit Ratings PNMR S&P Moody’s Credit rating BBB+(1) Baa3(1) Issuer outlook Stable Stable PNM S&P Moody’s Credit rating BBB+(2) Baa2(2) Issuer outlook Stable Stable TNMP S&P Moody’s Credit rating A(3) A1(3) Issuer outlook Stable Stable (1) Issuer/Corporate rating (2) Senior unsecured (3) Senior sec