Txnm Energy, Inc. · NYSE:TXNM
Txnm Energy — Q1 2024 Earnings Presentation
22 slides from Txnm Energy's earnings presentation, Apr 30, 2024
Slide 1: Q1 2024 Earnings Review
Q1 2024 Earnings Review April 30, 2024 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements made in this news release for PNM Resources, Inc. (“PNMR”), Public Service Company of New Mexico (“PNM”), or Texas-New Mexico Power Company (“TNMP”) (collectively, the “Company”) that re
Slide 3: Overview and Highlights
Overview and Highlights ee. > wae tes ——— a = “y : r+ +—+ t-—-\ am « ¥ \ 4 \ a VED. AER. Wa SEE, TS ED eee," CANE, SA RA, WEE = ee
Slide 4: Financial Results and Company Updates
Financial Results and Company Updates Financial Results and Guidance Q1 2024 Clean Energy Q1 2023 Q1 2024 earnings results GAAP EPS Strong Financial exceeded expectations Focus $0.52 $0.64 Ongoing EPS $0.41 $0.55 Profile 2024 earnings guidance and • 2024 Ongoing EPS Guidance affirmed $2.65 - $2.75 l
Slide 5: Operational and Regulatory Highlights
Operational and Regulatory Highlights
Slide 6: TNMP Highlights
TNMP Highlights ERCOT sees “unprecedented and rapid load growth” • New report highlights modifications to transmission planning processes to meet the forecasted pace of load growth and adapt to the changing grid West Texas Transmission • Current: ERCOT approval for $100M reliability project • Projec
Slide 7: PNM Highlights
PNM Highlights Public Safety Power Shutoff (PSPS) • Formalization of plan with conditions for preventive shutoffs • Hazardous Fire Areas identified and monitored for conditions beginning 7-10 days out, weather is not the only factor, communications are key • Community outreach and engagement for loc
Slide 8: TNMP and PNM Regulatory Updates
TNMP and PNM Regulatory Updates TNMP • 1st 2024 filing approved March 2024, recovering $97M Transmission Cost of Service incremental rate base (TCOS) recovery • 2nd 2024 filing expected in Q3 2024 for implementation in 2024 • 1st 2024 filing submitted April 2024 to recover $200M Distribution Cost Re
Slide 9: Financial Updates
Financial Updates
Slide 10: Highlights of Q1 2024 Ongoing Earnings Results
Highlights of Q1 2024 Ongoing Earnings Results Q1 2024 changes in ongoing Q1 Earnings Summary earnings: • Rate recovery through TNMP TCOS and DCRF rate mechanisms $0.55 Clean Energy $0.05 ($0.17) Strong Financial and implementation of new Focus TNMP Profile retail rates at PNM ($0.02) $0.41 • Improv
Slide 11: 2024 Earnings Guidance (Ongoing)
2024 Earnings Guidance (Ongoing) 2024 Earnings Guidance $2.65 Consolidated EPS $2.75 2024 earnings guidance range affirmed, quarterly distribution updated PNM TNMP Corp/Other $1.98 – $2.03 $1.17 – $1.20 ($0.50) – ($0.48) Estimated Quarterly Ongoing EPS Distribution 52% 15% 20% 13% Q1 Q2 Q3 Q4 11 (1)
Slide 12: Investment Plan 2024 – 2028
Investment Plan 2024 – 2028 5-year investment plan of $6.1 billion $1,273 $1,273 $1,176 $48 $1,153 $1,178 $49 $44 $45 $47 $508 $524 $641 $557 $610 $84 (in millions) $89 $120 $69 $78 $18 $73 $69 $506 $441 $372 $513 $407 $460 $437 $452 $463 $514 2024 2025 2026 2027 2028 PNM T&D PNM Battery Storage PNM
Slide 13: 2024 - 2028 Potential Earnings Power
2024 - 2028 Potential Earnings Power 6% - 7% Earnings Growth 2024-2028(1) 2024 2025 Earnings 2026 Earnings 2027 Earnings 2028 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 Ba
Slide 14: Appendix
Appendix
Slide 15: TNMP and PNM Key Regulatory Items
TNMP and PNM Key Regulatory Items Filing Action Timing Docket No. Transmission Cost of Filed January 25, 2024 Approved and implemented March 15, 2024 56155 TNMP PUCT Service (1st 2024 filing) Distribution Cost Recovery Rates requested to be implemented May Filed April 1, 2024 56428 Filing (1st 2024
Slide 16: Q1 2024 Ongoing EPS Details: TNMP
Q1 2024 Ongoing EPS Details: TNMP TNMP • Rate relief from implementation of 2023 $0.11 $0.16 TCOS and DCRF increases • Dilutive impact of additional Q1 2023 Q1 2024 shares issued in 2023 • Higher depreciation and Q1 2024 Key Drivers ∆ EPS interest expense on new Transmission rate relief (TCOS) $0.05
Slide 17: Q1 2024 Ongoing EPS Details: PNM
Q1 2024 Ongoing EPS Details: PNM • Improved realized PNM decommissioning / reclamation $0.55 trust performance in Q1 2024 $0.38 compared to Q1 2023 • New retail rates implemented in January 2024 Q1 2023 Q1 2024 • Retail load growth, partially offset by a return to normal Q1 2024 Key Drivers ∆ EPS we
Slide 18: Q1 2024 Ongoing EPS Details: Corporate
Q1 2024 Ongoing EPS Details: Corporate Corporate ($0.11) ($0.13) Q1 2023 Q1 2024 • Higher interest rates on Q1 2024 Key Performance Drivers ∆ EPS variable debt, net of hedges Interest expense ($0.02) 18
Slide 19: Load Growth and Weather Conditions
Load Growth and Weather Conditions TNMP Load Growth Q1 2024 2024E Continued growth during low-volume Volumetric Load(1) 2.7% 2.5% - 3.5% quarter Demand-Based Load(2) 1.3% 1.5% - 2.5% Volumetric growth in line with expectations TNMP Avg. End Users 1.8% 1.5% Demand-based load growth reflects quart
Slide 20: Liquidity as of April 26, 2024
Liquidity as of April 26, 2024 Corporate/ PNM Resources PNM TNMP Other Consolidated Financing Capacity(1): (In millions) Revolving credit facilities $440.0 $200.0 $300.0 $940.0 As of 04/26/24: Short-term debt and LOC balances 210.2 42.0 43.8 296.0 Remaining availability 229.8 158.0 256.2 644.0 Inves
Slide 21: Selected Balance Sheet Information
Selected Balance Sheet Information (In millions) Dec. 31, 2023 Mar. 31, 2024 Long-Term Debt (incl. current portion) (1) PNM $2,261.8 $2,262.3 TNMP 1,260.9 1,377.9 Corporate/Other 999.1 999.3 Consolidated $4,521.8 $4,639.5 Total Debt (incl. short-term) (1,2) PNM $2,399.3 $2,448.5 TNMP 1,316.0 1,396.2
Slide 22: Credit Ratings
Credit Ratings PNMR Consolidated S&P Moody’s Issuer rating BBB Baa3 Outlook Stable Stable Senior unsecured rating BBB- Baa3 PNM S&P Moody’s Issuer rating BBB Baa2 Outlook Stable Stable Senior unsecured rating BBB Baa2 TNMP S&P Moody’s Issuer rating BBB+ Baa1 Outlook Stable Stable Senior secured rati