Txnm Energy, Inc. · NYSE:TXNM
Txnm Energy — PNM Resources — Q1 2022 Earnings Presentation
21 slides from Txnm Energy's earnings presentation, Apr 28, 2022
Slide 1: Q1 2022 Earnings Review
Q1 2022 Earnings Review April 28, 2022
Slide 2: Contact Information and Safe Harbor Statement
Contact Information and Safe Harbor Statement Investor Relations Contact Information Lisa Goodman 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 thi
Slide 3: Overview and Highlights
Overview and Highlights
Slide 4: Financial Results and Company Updates
Financial Results and Company Updates Financial Results and Guidance Q1 2022 earnings results Q1 2022 Q1 2021 Clean Energy GAAP EPS $0.19 $0.20Strong Financial Ongoing EPSFocus $0.50 $0.32 2022 and 2023 earnings Profile • 2022 Ongoing EPS Guidance affirmed $2.50 - $2.60 guidance affirmed • 2023 Ongo
Slide 5: Executing the Transition to Clean Energy
Executing the Transition to Clean Energy Measured, Multifaceted Approach to PNM’s Clean Energy Transition Environmental Customer Community Benefits Cost Reductions Support Accelerated Exit from Coal: New Mexico Energy Transition Act: landmark energy legislation Retirement of Retirement of Exit from
Slide 6: Q1 2022 ESG Highlights
Q1 2022 ESG Highlights Empowering PNM Pueblo Supporting Energy Scholarship Customers and Efficiency Endowment Fund Communities • PNM business customers • Investment in education and • PNM Resources saved 24 million kilowatt- economic development, Foundation awarded hours of energy in 2021, the provi
Slide 7: Financial Updates
a oe a eA Financial Updates
Slide 8: Q1 2022 Ongoing EPS Financial Summary
Q1 2022 Ongoing EPS Financial Summary Q1 2022 changes in ongoing Q1 Earnings Summary earnings driven by: • Increased FERC Transmission Clean Energy $0.08 Strong $0.02Financial $0.50 margins due to higher system Focus $0.08 Profile Corporate demand and new customers, $0.32 TNMP including the Western
Slide 9: Load and Economic Conditions
Load and Economic Conditions PNM Industrial customers drive growth Q1 2022 Industrial growth reflects slower ramp-up from new and PNM vs. 2022E expanding customers, reflects lowest-rate usage with Q1 2021 small revenue impact Total Retail Load(1) 0.5% 2% – 3% Residential and Commercial load larg
Slide 10: Earnings Guidance (Ongoing)
Earnings Guidance (Ongoing) 2022 Ongoing Earnings 2022 Earnings Guidance Guidance Affirmed $2.50 Consolidated EPS $2.60 2022 Quarterly Ongoing Earnings Distribution 52% Quarterly distribution updated 20% 20% to reflect current expectations 8% Q1 Q2 Q3 Q4 2023 Earnings Guidance 2023 Ongoing Earnings
Slide 11: Investment Plan 2022 – 2025
Investment Plan 2022 – 2025 Investment plan of $3.5b focused on T&D infrastructure Targeted 5% EPS CAGR 2020 -2025 $948 $896 $33 $36 $835 $32 $779 $31 $426 $425 $381 $299 $55 (in millions) $80 $65 $50 $433 $360 $399 $355 $307 $323 $358 $383 2022 2023 2024 2025 PNM T&D PNM Generation TNMP IT Deprecia
Slide 12: Appendix
Appendix
Slide 13: PNM and TNMP Regulatory Agenda
PNM and TNMP Regulatory Agenda Filing Action Timing Docket No. NMPRC issued order denying stipulation on Dec. 8, NMPRC answer brief due June 13, 2022, no Merger transaction 2021; PNM filed appeal with NM Supreme Court, statutory timeframe for appeal, expect a S-1-SC-39152 approval PNM/AVANGRID Brief
Slide 14: Q1 2022 Ongoing EPS Details: PNM
Q1 2022 Ongoing EPS Details: PNM • Higher transmission margins due PNM $0.35 to higher system demand and $0.27 the addition of new customers, including the Western Spirit transmission contract • Increased load, primarily from Q1 2021 Q1 2022 colder temperatures • Lower decommissioning / Q1 2022 Key
Slide 15: Q1 2022 Ongoing EPS Details: TNMP
Q1 2022 Ongoing EPS Details: TNMP TNMP $0.18 • Rate relief from 2021 TCOS and DCOS filings and the $0.10 implementation of the first 2022 TCOS increase in March Q1 2021 Q1 2022 • Weather-normalized load growth and colder temperatures Q1 2022 Key Performance Drivers ∆ EPS • Timing of excess deferred
Slide 16: Q1 2022 Ongoing EPS Details: Corporate
Q1 2022 Ongoing EPS Details: Corporate Corporate ($0.05) ($0.03) • Interest expense savings from the refinancing of debt at lower rates in May 2021 Q1 2021 Q1 2022 Q1 2022 Key Performance Drivers ∆ EPS Interest expense $0.02 16
Slide 17: Weather Impacts
Weather Impacts PNM: PNM Q1 2022 Q1 2021 Q1 Normal(1) • Q1 2022 temperatures Heating Degree Days 1,278 1,220 1,124 were colder than normal Cooling Degree Days 0 0 0 and Q1 2021 Net EPS Impact $0.02 $0.01 $- compared to Normal TNMP: TNMP Q1 2022 Q1 2021 Q1 Normal(1) • Q1 2022 temperatures Heating Deg
Slide 18: Balance Sheet and Credit Metrics
Balance Sheet and Credit Metrics
Slide 19: Liquidity as of April 21, 2022
Liquidity as of April 21, 2022 Corporate/ PNM Resources PNM TNMP Other Consolidated Financing Capacity(1): (In millions) Revolving credit facilities $440.0 $75.0 $300.0 $815.0 As of 4/21/22: Short-term debt and LOC balances - 75.0 34.5 109.5 Remaining availability 440.0 - 265.5 705.5 Invested cash 8
Slide 20: Selected Balance Sheet Information
Selected Balance Sheet Information (In millions) Dec. 31, 2021 Mar. 31, 2022 Long-Term Debt (incl. current portion) (1) PNM $1,881.1 $1,881.6 TNMP 918.1 918.0 Corporate/Other 899.7 999.9 Consolidated $3,698.9 $3,799.5 Total Debt (incl. short-term) (1,2) PNM $1,888.5 $1,886.3 TNMP 918.5 993.0 Corpora
Slide 21: Credit Ratings
Credit Ratings PNMR Consolidated S&P Moody’s Issuer rating BBB Baa3 Outlook Positive Stable Senior unsecured rating BBB- Baa3 PNM S&P Moody’s Issuer rating BBB Baa2 Outlook Positive Stable Senior unsecured rating BBB Baa2 TNMP S&P Moody’s Issuer rating BBB+ Baa1 Outlook Positive Stable Senior secure