Slide 1: Q2 2017 Earnings Review
Q2 2017 Earnings Review July 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: Q2 2017 Financial Results and Key Highlights
Q2 2017 Financial Results and Key Highlights Financial Results: Q2 2017 Q2 2016 YTD 2017 YTD 2016 GAAP EPS $0.47 $0.34 $0.75 $0.47 Ongoing EPS $0.49 $0.40 $0.77 $0.53 • 2017 Ongoing EPS Guidance of $1.77 ‐ $1.87 affirmed Key Highlights: • Filed settlement agreement in PNM general rate case Hearing
Slide 5: Regulatory Update
Regulatory Update Filing Action Timing Docket No. Revised settlement Suspension period currently ends PNM 2018 General Rate Case 16‐00276‐UT agreement filed May 23, 2017 January 6, 2018 PNM Integrated Resource Plan Filed July 3, 2017 Protest period ends August 2, 2017 N/A Order establishing updated
Slide 6: Financial Overview
Financial Overview Chuck Eldred Executive Vice President and CFO
Slide 7: Q2 2017 Financial Summary
Q2 2017 Financial Summary Ongoing EPS $0.02 ($0.03) $0.49 $0.10 $0.40 TNMP Corporate PNM Q2 2016 Q2 2017 7
Slide 8: Load and Economic Conditions
Load and Economic Conditions Regulated Retail Energy Sales and Customers (weather‐normalized, leap‐year adjusted) % of 2016 Q2 2017 YTD 2017 % of 2016 Q2 2017 YTD 2017 PNM Sales vs. vs. TNMP Sales vs. vs. Volumes Q2 2016 YTD 2016 Revenues Q2 2016 YTD 2016 Retail Load: Volumetric Load(1): Residential
Slide 9: Q2 2017 vs Q2 2016 EPS (Ongoing): PNM
Q2 2017 vs Q2 2016 EPS (Ongoing): PNM PNM Q2 2017 Key Performance Drivers ∆ EPS $0.36 Retail rate relief $0.09 Transmission $0.02 $0.26 Outage costs $0.02 Restructuring cost savings $0.02 AFUDC $0.01 Palo Verde Unit 3 market prices $0.01 O&M increases ($0.02) Depreciation and property tax ($0.02) Q2
Slide 10: Q2 2017 vs Q2 2016 EPS (Ongoing): TNMP and Corporate
Q2 2017 vs Q2 2016 EPS (Ongoing): TNMP and Corporate TNMP Q2 2017 Key Performance Drivers ∆ EPS $0.13 $0.15 Load $0.01 TCOS rate relief $0.01 Other $0.01 Depreciation and property tax ($0.01) Q2 2016 Q2 2017 Corporate Q2 2017 Key Performance Drivers ∆ EPS Westmoreland loan agreements ($0.01) $0.01 (
Slide 11: 2017 EPS Guidance (Ongoing)
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) 11
Slide 12: Questions and Answers
Questions and Answers
Slide 13: Appendix
Appendix
Slide 14: 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 $2.3 B $1.38 $2.3 B $1.37 PNM Rate Case Phase‐In (2) ($
Slide 15: 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) Future refinements $530 Expect future include: Palo Verde $61 Unit 3 added refinements to rate base $435 • Outcome of $391 $15 $404 Renewable filing $15
Slide 16: Weather Impact
Weather Impact PNM Q2 2017 Q2 2016 2017 Normal(1) Heating Degree Days 308 360 304 Cooling Degree Days 487 504 492 Net EPS Impact $0.00 $0.01 compared to normal TNMP Q2 2017 Q2 2016 2017 Normal(1) Heating Degree Days 21 39 55 Cooling Degree Days 1,034 928 1,083 Net EPS Impact $0.00 ($0.01) compared t
Slide 17: 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 5 95 Q3‐Q4 2017 1 33 Q4 2017 4 29 Q2 2018 4 95 Q1‐Q2 2018 3 33 Q2 2018 2 3
Slide 18: Balance Sheet and Credit Metrics
Balance Sheet and Credit Metrics
Slide 19: Liquidity as of July 25, 2017
Liquidity as of July 25, 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 7/25/17: Short‐term debt and LOC balances $11.5 $52.1 $180.1 $243.7 Remaining availability 438.5 22.9 119.9 581.3 Inves
Slide 20: Selected Balance Sheet Information
Selected Balance Sheet Information (In millions) Dec 31, 2016 June 30, 2017 Long‐Term Debt (incl. current portion) (1) PNM $1,631.4 $1,631.9 TNMP 420.9 421.0 Corporate/Other 340.5 320.4 Consolidated $2,392.7 $2,373.4 Total Debt (incl. short‐term) (2) PNM $1,692.4 $1,669.9 TNMP 420.9 468.0 Corporate/
Slide 21: Credit Ratings
Credit Ratings PNMR S&P Moody’s Credit rating BBB+(1) Baa3(1) Issuer outlook Stable Positive PNM S&P Moody’s Credit rating BBB+(2) Baa2(2) Issuer outlook Stable Positive TNMP S&P Moody’s Credit rating A(3) A1(3) Issuer outlook Stable Stable (1) Issuer/Corporate rating (2) Senior unsecured (3) Senior