Txnm Energy, Inc. · NYSE:TXNM
Txnm Energy — PNM Resources — Merger or Acquisition (October 2020)
13 slides from Txnm Energy's merger presentation, Oct 21, 2020
Slide 1: AVANGRID and PNM Resources to Combine in Strategic Merger Transaction
For Immediate Release October 21, 2020 AVANGRID and PNM Resources to Combine in Strategic Merger Transaction Strategic alignment in transition to clean energy and commitment to ESG strategy creates a leading U.S. regulated utility and renewable energy platform • Transaction merges two strategically
Slide 2: AVANGRID - PNM Resources Strategic Merger Transaction
October 21, 2020 AVANGRID - PNM Resources Strategic Merger Transaction Leading, sustainable U.S. energy company Avangrid Networks Avangrid Renewables Regulated electric utility with strong financial track record Exhibit 99.2
Slide 3: Additional Information
Additional Information Additional Information about the Proposed Transaction and Where to Find It The proposed business combination transaction between PNM Resources and Avangrid will be submitted to the shareholders of PNM Resources for their consideration. PNM Resources will file a proxy statement
Slide 4: Forward-Looking Statements
Forward-Looking Statements FORWARD-LOOKING STATEMENTS Statements made in this press release that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. These forward-lookin
Slide 5: Strategic Rationale
Strategic Rationale AVANGRID and PNM Resources to combine in strategic merger transaction Alignment in transition to clean energy and commitment to ESG strategy creates a leading U.S. regulated utility and renewable energy platform P Combination of two premier companies to create a large, diversifie
Slide 6: Alignment in Strategy
Alignment in Strategy Clean Energy Focus Strong Financial Profile Alignment in the transition to clean energy and ESG strategy maintains PNM Resources stakeholder commitments 2 single-state regulated electric utilities with ~$4B rate base, 7%+ growth(1) focused on T&D New Mexico Renewable Portfolio
Slide 7: Increased Scale
Increased Scale Larger scale of combined company is better equipped to navigate industry transition to clean energy Combined entity: $40B assets across 24 states Top 20 U.S. utility by equity market cap and one of the largest by rate base Strong financial profile well-positioned for growth opportuni
Slide 8: Greater Diversification
Greater Diversification Strong Financial Profile Strategic combination of established operations in complementary regions strengthens financial profile and improves operational, regulatory diversity Combined company EBITDA from regulated networks and utilities anticipated to increase from 75% to mor
Slide 9: Enhanced Benefits to All Stakeholders
Enhanced Benefits to All Stakeholders Clean Energy Focus Strong Financial Profile Communities Employees Commitments to demonstrate net benefit to customers Maintain commitment to economic development and community support Continued plans to exit coal and transition to clean energy Recognizes value o
Slide 10: Financially Attractive to PNM Resources Shareholders
Financially Attractive to PNM Resources Shareholders Clean Energy Focus Strong Financial Profile Financing structure intended to maintain healthy balance sheet and liquidity position Iberdrola has provided financing commitment letter Continued commitment to exiting coal provides opportunities for ad
Slide 11: Regulatory Filings and Approvals
Regulatory Filings and Approvals Regulator Estimated time from filing to approval Federal Authorities Federal Energy Regulation Commission (FERC) 3 – 6 months Department of Justice (Hart Scott-Rodino Clearance) 1 month Committee on Foreign Investment in the United States (CFIUS) 3 months Federal Com
Slide 12: Merger Transition Supports Leadership and Governance
Merger Transition Supports Leadership and Governance Pat Vincent-Collawn stepping down as Chairman, President and CEO of PNM Resources Don Tarry, current CFO of PNM Resources, will lead continued operations Two directors from the current PNM Resources Board will serve as independent directors of AVA
Slide 13: Questions and Answers
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