Txnm Energy, Inc. · NYSE:TXNM
Txnm Energy — PNM Resources — Q2 2021 Earnings Presentation
21 slides from Txnm Energy's earnings presentation, Jul 30, 2021
Slide 1: Q2 2021 Earnings Review
Q2 2021 Earnings Review July 30, 2021
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 U.S. 1-505-241-2160 Lisa.Goodman@pnmresources.com Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements made i
Slide 3: AVANGRID and PNM Resources Strategic Merger Update
AVANGRID and PNM Resources Strategic Merger Update Merger announced October 21, 2020, expected to close in 2021 Approvals and expected timeframes: Filing Date Filed Docket No. Approvals/Clearances Proxy filing / Shareholder approval 1/5/2021 N/A Approved 2/12/2021 Department of Justice (Hart-Scott-
Slide 4: Overview and Highlights
Overview and Highlights
Slide 5: Q2 2021 Financial Results and Company Updates
Q2 2021 Financial Results and Company Updates Q2 2021 results show Financial Results continued signs of recovery Q2 2021 Q2 2020 YTD 2021 YTD 2020 from COVID-related load GAAP EPS Clean $0.62 Energy $0.72 Strong impacts; increased earnings $0.83 Financial $0.53 Ongoing EPS Focus $0.55 $0.55 $0.88 $0
Slide 6: Q2 2021 ESG Highlights
Q2 2021 ESG Highlights PNM continues to increase TNMP Supporting renewables in Energy Efficiency Communities portfolio Recognitions • TNMP High Performance • Re-opening from COVID • 306 MW of wind restrictions prompts Homes programs became operational in increase in employee recognized for sixth the
Slide 7: Financial Updates
Financial Updates 5. PN M(OResources ae
Slide 8: Q2 2021 Ongoing EPS Financial Summary
Q2 2021 Ongoing EPS Financial Summary Overall increase in year-over-year Q2 Earnings Summary net earnings driven by: $0.55Clean Energy ($0.02) $0.02 $0.55 • TNMP TCOS and DCOS rate relief Strong Financial • Increased PNM FERC FocusTNMP Profile Corporate transmission margins • Interest savings from t
Slide 9: Q2 2021 vs Q2 2020 EPS (Ongoing): PNM
Q2 2021 vs Q2 2020 EPS (Ongoing): PNM • Refinancing of debt at lower interest rates in 2020 PNM $0.39 $0.39 • Higher transmission margins due to higher network demand and the addition of a new customer • Increased retail load reflects the phased-in reopening from Q2 2020 Q2 2021 COVID restrictions,
Slide 10: Q2 2021 vs Q2 2020 EPS (Ongoing): TNMP
Q2 2021 vs Q2 2020 EPS (Ongoing): TNMP • Rate relief from 2020 TCOS and TNMP DCOS filings and the $0.20 $0.18 implementation of the first 2021 TCOS increase in March • Higher depreciation and Q2 2020 Q2 2021 property tax expenses on new capital investments Q2 2021 Key Performance Drivers ∆ EPS • Inc
Slide 11: Q2 2021 vs Q2 2020 EPS (Ongoing): Corporate
Q2 2021 vs Q2 2020 EPS (Ongoing): Corporate Corporate ($0.04) ($0.02) Q2 2020 Q2 2021 • Interest expense savings from the paydown of debt with proceeds Q2 2021 Key Performance Drivers ∆ EPS from the December 2020 issuance of additional shares Interest expense savings $0.02 11
Slide 12: Load and Economic Conditions
Load and Economic Conditions PNM The phased re-opening of New Mexico shows a Q2 2021 reversal of COVID trends, with increased commercial PNM vs. 2021E load partially offset by decreased residential load Q2 2020 Earlier economic recovery (guidance assumptions for 2021 Total Retail Load(1) 1.9% 0.5%
Slide 13: 2021 Consolidated Ongoing Earnings Guidance
2021 Consolidated Ongoing Earnings Guidance Strong Financial 2021 Earnings Guidance $2.27 - $2.37 Profile guidance affirmed, with increased expectations for the $2.27 Consolidated EPS $2.37 top of the range Higher results in the first half of PNM TNMP Corp/Other the year include COVID recovery $1.63
Slide 14: 2021 – 2025 Investment Plan
2021 – 2025 Investment Plan $4.0B investment plan focused on T&D infrastructure investments $1,045 $37 $301 $761 $761 $27 $31 $712 $705 $26 $26 $293 $321 $327 $324 $324 (in millions) $330 $337 $348 $298 $362 $299 $376 $291 $317 $338 $85 $76 $55 $64 $56 2021 2022 2023 2024 2025 PNM Generation TNMP PN
Slide 15: Appendix
Appendix — PNM(C Resources’
Slide 16: PNM and TNMP Regulatory Agenda
PNM and TNMP Regulatory Agenda Filing Action Timing Docket No. Filed Jan. 29, 2021 (2020 filing date Variance to 120-day regulatory timeframe to 2020 Integrated Resource delayed to incorporate San Juan accept or reject plan has been granted, Staff 21-00033-UT Plan replacement power decision) recomme
Slide 17: Weather Impacts
Weather Impacts Q2 Q2 2021 PNM 2021 2020 Normal(1) PNM Cooling Degree Days Heating Degree Days 47 38 62 in Q2 2021 were 2% higher Cooling Degree Days 516 561 507 than Normal and 8% lower Net EPS Impact $0.00 $0.01 than Q2 2020 compared to Normal Q2 Q2 2021 TNMP 2021 2020 Normal(1) TNMP Cooling Degre
Slide 18: Balance Sheet and Credit Metrics
Balance Sheet and Credit Metrics
Slide 19: Liquidity as of July 23, 2021
Liquidity as of July 23, 2021 PNM Corporate/ Resources PNM TNMP Other Consolidated • Available liquidity Financing Capacity(1): (In millions) strengthened by Q4 2020 equity issuance Revolving credit $440.0 $75.0 $300.0 $815.0 facilities and long-term debt issuances at PNM As of 7/23/21: and TNMP Sho
Slide 20: Selected Balance Sheet Information
Selected Balance Sheet Information (In millions) Dec 31, 2020 June 30, 2021 Long-Term Debt (incl. current portion) (1) PNM $1,696.6 $1,732.8 TNMP 853.7 853.6 Corporate/Other 744.9 849.7 Consolidated $3,295.2 $3,436.1 Total Debt (incl. short-term) (1,2) PNM $1,706.6 $1,732.8 TNMP 853.7 891.8 Corporat
Slide 21: Credit Ratings
Credit Ratings Investment grade credit PNMR Consolidated S&P Moody’s ratings at PNM Resources, Issuer rating BBB Baa3 PNM and TNMP Outlook Positive Stable Senior unsecured rating BBB- Baa3 Merger considered credit positive by S&P and PNM S&P Moody’s Moody’s Issuer rating BBB Baa2 • S&P: PNM Resource