Txnm Energy, Inc. · NYSE:TXNM
Txnm Energy — Investor Presentation (March 2025)
31 slides from Txnm Energy's investor presentation, Mar 11, 2025
Slide 1: Investor Meetings
Investor Meetings March 11-12, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement Investor Relations Contact Information Lisa Goodman Executive Director, Investor Relations and Shareholder Services 1-505-241-2160 Lisa.Goodman@pnmresources.com Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements made in this presentation
Slide 3: TXNM Energy Overview
TXNM Energy Overview Energy holding company with two fully-regulated electric utilities in Texas (TNMP) and New Mexico (PNM) NYSE: TXNM $4.5b market cap Service Areas and Generation Resources • Vertically integrated utility (generation, T&D) in New Mexico • $3.0b Retail rate base • $0.9b FERC Transm
Slide 4: TXNM Energy Investment Highlights
TXNM Energy Investment Highlights Robust customer-driven investment plans • $7.8b investment plan 2025-2029 focused on T&D infrastructure • 12.4% rate base growth 2025-2029 Fully regulated platform with diversification across jurisdictions • TXNM Energy’s longest-owned utility and New • TXNM Energy’
Slide 5: Diversified and Improving Regulatory Profile
Diversified and Improving Regulatory Profile Consistent, measured approach to growth among regulatory jurisdictions Rate Base by Jurisdiction 2029E 2024 $10.7b Increased percentage of rate 2019 $6.0b base recovered through TNMP $4.2b capital recovery mechanisms and FERC formula rate 40% 50% 40% 63%
Slide 6: Proven History of Achieving Targets
Proven History of Achieving Targets Strong track record of achieving financial targets • Earning authorized return on regulated rate base Targeting 7% - 9% • Delivering earnings growth, at or above consensus EPS growth • Maintaining investment grade credit ratings 2025 - 2029(2) $2.82 $2.79 $2.74 (1
Slide 7: Capital Investment Plan 2025 - 2029
Capital Investment Plan 2025 - 2029 5-year capital investment plan of $7.8 billion $1,774 $1,721 $1,582 $50 $50 $127 $67 $1,436 $48 $1,321 $46 $219 $58 $112 $549 $596 $205 (in millions) $497 $602 $443 $1,048 $591 $1,008 $640 $502 $818 $544 $615 $405 $676 2025 2026 2027 2028 2029 TNMP PNM T&D PNM Gen
Slide 8: 2025 - 2029 Potential Earnings Power
2025 - 2029 Potential Earnings Power 7% - 9% EPS Growth 2025-2029(1) 2025 2026 Earnings 2027 Earnings 2028 Earnings 2029 Earnings Allowed Guidance Equity Potential Potential Potential Potential Midpoint Return / Avg Avg Avg Avg Avg Ratio Rate EPS Rate EPS Rate EPS Rate EPS Rate EPS Base Base Base Ba
Slide 9: Financing Plan
Financing Plan 2024 Financing Activities Long-term Debt Maturities • Completed 2024 equity needs of ~$100 in millions(1) million through ATM program $550 • Sold $50 million additional equity in Q4 2024 for settlement in 2025 $60 $1,278 • Issuance of junior subordinated convertible bonds in Q2 2024 $
Slide 10: TNMP
TNMP
Slide 11: TNMP Highlights
TNMP Highlights TNMP System Peak Consistent growth in TNMP service territory Continued nation-leading economic growth 2,993 System demand has grown 63% since 2020 2,545 13% annual growth rate Peak MW 2,240 Entrance of data centers increased load beginning in 2022 2,030 1,804 (over 600 MW cur
Slide 12: TNMP 2025-2029 Outlook
TNMP 2025-2029 Outlook Focus on supporting strong growth TNMP Capital Investment Plan with a reliable and resilient grid • $4.2b capital investment program $1,048 $1,008 supports: (in millions) $818 • Growing core system needs $615 $676 • Permian Basin Reliability Study: “common” projects in process
Slide 13: PUCT Commissioners and Regulatory Framework
PUCT Commissioners and Regulatory Framework Commissioner Name Term Began Term Ends Party Thomas Gleeson(1) (Chair) Jan. 19, 2024 Sept. 1, 2029 Republican Kathleen Jackson Aug. 5, 2022 Sept. 1, 2027 Republican Vacancy(2) TBD Sept. 1, 2027 TBD Vacancy(2) TBD Sept. 1, 2025 TBD Courtney K. Hjaltman(1) J
Slide 14: TNMP Key Regulatory Items
TNMP Key Regulatory Items Filing Action Timing Docket No. Pending approval; decision expected System Resiliency Plan Filed August 28, 2024 56954 during March 13, 2025, open meeting Transmission Cost of Expected to be implemented March Filed January 24, 2025 57578 Service (1st 2025 filing) 2025 Trans
Slide 15: TNMP Vegetation Management and Wildfire Prevention
TNMP Vegetation Management and Wildfire Prevention Coordination with local officials for TNMP Vegetation power shut off consideration Management ($m) 35% of service territory identified $8.7 and prioritized as high risk $8.1 ~70% of transmission poles are steel or $4.4 concrete Diverse TX landscape
Slide 16: PNM
PNM Pan L mee att - es > a dat eee ++ Ss SaE | - “i Hh se oee TH) bok , + = ~~
Slide 17: PNM Highlights
PNM Highlights PNM System Peak Increasing system demands 2,131 New system peaks reached in 2022 and 2023 2,030 2024 subdued by milder temperatures Reflects need for additional resources and infrastructure MWs 2,008 Clean energy transition spurring economic development Transition to Carbon-Fr
Slide 18: PNM 2025-2029 Outlook
PNM 2025-2029 Outlook Focus on balancing customer affordability with infrastructure needs PNM Capital Investment Plan $714 $716 $676 • Phase-in of customer rates as part of 2025 $648 $112 $663 rate request and stipulation $219 $127 $67 $205 (in millions) • Regional coordination provides access to lo
Slide 19: PNM Transmission Development Potential
PNM Transmission Development Potential New Mexico’s location in the West and concentration of solar and wind resources demonstrates the potential for renewable development and associated transmission needs Western Energy Imbalance Predominance of Renewables Resources in Center of Market (WEIM) and C
Slide 20: Key Drivers of PNM 2025 Rate Request
Key Drivers of PNM 2025 Rate Request • PNM filed its application in June 2024 for rates effective beginning July 2025 • PNM and parties filed an unopposed settlement on November 26, 2024 • Hearings held February 17-18, 2025; decision expected in Q2 2025 Total Revenues Request Settlement Rate base in
Slide 21: Key Drivers of PNM 2025 Rate Request
Key Drivers of PNM 2025 Rate Request Key Settlement Component Settlement Terms Ongoing Earnings Per Share Considerations $430m new investments Rate base investments +$0.22 return on new investments Dec 2024-June 2026 Equity financing costs (ROE) 9.45% +$0.04 vs currently authorized 9.26% Capital str
Slide 22: NMPRC Commissioners
NMPRC Commissioners Name Term Began Term Ends Party Patrick O'Connell (Chair) (1) January 1, 2023 December 31, 2028 Democrat Gabriel Aguilera(1) January 1, 2023 December 31, 2026 Democrat Greg Nibert(2) January 1, 2025 December 31, 2030 Republican (1) Commissioners confirmed by the New Mexico Senate
Slide 23: PNM Regulation
PNM Regulation PNM FERC PNM Retail Transmission Distribution Generation 55% FERC / 45% Retail 100% Retail 100% Retail • $0.9b rate base • $3.0b rate base regulated by the New Mexico Public Regulation regulated by FERC, Commission with investments recovered primarily through recovered through general
Slide 24: PNM Key Regulatory Items
PNM Key Regulatory Items Filing Action Timing Docket No. Filed June 14, 2024, for rates Hearings held February 17-18, 2025, 2025 Rate Request effective July 2025; unopposed 24-00089-UT decision expected in Q2 2025 stipulation filed Nov. 26, 2024 2028 Resource Filed Nov. 22, 2024 Requested approval w
Slide 25: PNM Vegetation Management and Wildfire Prevention
PNM Vegetation Management and Wildfire Prevention Public Safety Power Shutoff (PSPS) plan implemented on May 1, 2024 PNM Vegetation Management ($m) 18% of service territory identified and prioritized as high risk $8.0 $6.5 $4.4 40% of T&D lines underground $2.0 New Mexico is the 5th largest state by
Slide 26: Appendix
Appendix 26
Slide 27: Sustainability
Sustainability Environmental Social Governance Industry-leading goals: Hiring, training, retention and 9 of 11 Board members are • Emissions-free by 2040 engagement programs for our independent, 7 years average reflects full elimination of diverse workforce with a focus tenure carbon from generation
Slide 28: 2025 - 2029 Potential Earnings Power
2025 - 2029 Potential Earnings Power 2025 2026 Earnings 2027 Earnings 2028 Earnings 2029 Earnings Allowed Guidance Equity Potential Potential Potential Potential Midpoint Return / Avg Avg Avg Avg Avg Ratio Rate EPS Rate EPS Rate EPS Rate EPS Rate EPS Base Base Base Base Base 9.45% / PNM Retail 51% (
Slide 29: PNM Generation Shared Ownership
PNM Generation Shared Ownership Palo Verde Nuclear Generating Station Owned Capacity Unit 1 2.3% 30 MW Unit 2 9.4% 124 MW Unit 3 10.2% 134 MW Total 7.3% 288 MW Four Corners Coal Plant Ownership PNM intends to exit Four Corners when its participation and coal supply agreements expire in 2031 Total PN
Slide 30: Selected Balance Sheet Information
Selected Balance Sheet Information (In millions) Dec. 31, 2023 Dec. 31, 2024 Long-Term Debt (incl. current portion) (1) PNM $2,261.8 $2,459.6 TNMP 1,260.9 1,464.1 Corporate/Other 999.1 999.7 Consolidated $4,521.8 $4,923.4 Total Debt (incl. short-term) (1,2) PNM $2,399.3 $2,823.4 TNMP 1,316.0 1,615.7
Slide 31: Liquidity as of February 14, 2025
Liquidity as of February 14, 2025 Corporate/ TXNM Energy PNM TNMP Other Consolidated Financing Capacity(1): (In millions) Revolving credit facilities $440.0 $200.0 $300.0 $940.0 As of 02/14/25: Short-term debt and 219.3 112.2 147.8 479.3 L/C balances Remaining availability 220.7 87.8 152.2 460.7 Inv