Slide 1: Q3 2023 Earnings Review
Q3 2023 Earnings Review October 27, 2023
Slide 2: Contact Information and Safe Harbor Statement
Contact Information and 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 m
Slide 3: Overview and Highlights
Overview and Highlights
Slide 4: Financial Results and Strategic Updates
Financial Results and Strategic Updates Financial Results and Guidance Q3 2023 Q3 2022 YTD 2023 YTD 2022 Q3 2023 earnings results Clean Energy GAAP EPS $0.44(1) $1.42 Strong Financial $1.60(1) $1.78 Focus Ongoing EPS $1.54 $1.46 Profile$2.54 $2.65 2023 earnings guidance adjusted on weather impacts •
Slide 5: Operational and Regulatory Updates
Operational and Regulatory Updates
Slide 6: PNM Operational Highlights
PNM Operational Highlights Operational Highlights • Continued economic development • New all-time system peak reached in July, reflects growing capacity needs • Proposed resource additions to meet growing system adequacy needs • 2026 projects leverage existing interconnections • 100 MW solar PPAs •
Slide 7: PNM Key Regulatory Updates
PNM Key Regulatory Updates 2024 Rate Review Filing • Unanimous settlement resolving San Juan items • Hearings held in September • NMPRC decision pending • Rates expected to be implemented in January 12 MW Battery Storage CCN • Support from intervening parties • Hearing held October 12, 2023 • Decisi
Slide 8: TNMP Operational and Regulatory Highlights
TNMP Operational and Regulatory Highlights Operational Highlights • New all-time system peak reached four times in summer 2023 • Resiliency projects brought to forefront Key Regulatory Proceedings • Distribution investment recovery • 2023 DCRF filing implemented Sept. 1, 2023; $14.5M increase recove
Slide 9: Financial Updates
a oe a eA Financial Updates
Slide 10: Q3 2023 Ongoing EPS Financial Summary
Q3 2023 Ongoing EPS Financial Summary Q3 2023 changes in ongoing Q3 Earnings Summary earnings: • Increased customer usage due Clean Energy $0.10 Strong Financial ($0.04) to hotter temperatures $1.46 $0.02 $1.54 Focus Profile • New rate recovery of TNMP PNM TNMP Corporate transmission and distributio
Slide 11: Load and Economic Conditions
Load and Economic Conditions PNM Higher Q3 usage driven by hotter temperatures, Q3 YTD underlying load reflects slower Industrial ramp-up PNM 2023 vs 2022 2023E 2023 guidance revised to reflect slower ramp-up from Total Retail Load(1) (0.7%) (0.5%) – 0.5% Industrial customers, partially offset by
Slide 12: Investment Plan 2023 – 2027
Investment Plan 2023 – 2027 5-year investment plan of $5.9 billion $1,245 $1,166 $1,163 $1,178 $1,102 $48 $42 $44 $46 $47 $508 $449 $496 $557 $610 $84 (in millions) $26 $58 $89 $92 $96 $27 $73 $69 $527 $441 $379 $513 $419 $460 $453 $452 $489 $318 2023 2024 2025 2026 2027 PNM T&D PNM Owned Battery St
Slide 13: Earnings Guidance (Ongoing) and Financing Plans
Earnings Guidance (Ongoing) and Financing Plans 2023 Revised Earnings Guidance $2.75 - $2.80 Revised Previous 2023 Guidance Revision Guidance Guidance PNM Resources $2.75 - $2.80 $2.65 - $2.75 2023 ongoing earnings PNM $2.19 - $2.21 $2.14 - $2.19 guidance raised TNMP $1.08 - $1.10 $0.98 - $1.01 Corp
Slide 14: Appendix
Appendix
Slide 15: PNM and TNMP Key Regulatory Proceedings
PNM and TNMP Key Regulatory Proceedings Filing Action Timing Docket No. PNM/AVANGRID appealed NMPRC denial with NM Merger transaction 20-00222-UT Supreme Court on Jan. 3, 2022, briefings completed Aug. No statutory timeframe approval S-1-SC-39152 5, 2022, oral argument held for Sept. 15, 2023 Four C
Slide 16: Q3 2023 Ongoing EPS Details: PNM
Q3 2023 Ongoing EPS Details: PNM • Higher customer usage driven by PNM $1.19 $1.17 hotter temperatures • Lower costs associated with the retirement of the San Juan Generating Station and return of Palo Verde leased capacity Q3 2022 Q3 2023 • Higher AFUDC due to capital spending and increased rates Q
Slide 17: Q3 2023 Ongoing EPS Details: TNMP
Q3 2023 Ongoing EPS Details: TNMP TNMP • New Rate relief from 2022 and $0.46 $0.36 2023 TCOS and DCRF filings • Higher demand-based load growth and hotter Q3 2022 Q3 2023 temperatures in Q3 2023 • Higher expenses (depreciation, Q3 2023 Key Performance Drivers ∆ EPS property tax and interest) on Tran
Slide 18: Q3 2023 Ongoing EPS Details: Corporate
Q3 2023 Ongoing EPS Details: Corporate Corporate ($0.07) ($0.11) Q3 2022 Q3 2023 • Higher variable debt interest, Q3 2023 Key Performance Drivers ∆ EPS net of hedges Other $0.01 Interest expense ($0.05) 18
Slide 19: Weather Impacts
Weather Impacts Q3 Q3 Q3 Q3 YTD Q3 YTD Q3 YTD PNM: PNM 2023 2022 Normal (1) 2023 2022 Normal(1) • Q3 and YTD 2023 cooling Cooling Degree Days 1,312 1,036 965 1,730 1,552 1,472 degree-days above normal and prior year Heating Degree Days 0 0 1 1,352 1,293 1,187 • YTD heating degree-days Net EPS Impact
Slide 20: Balance Sheet and Credit Metrics
Balance Sheet and Credit Metrics
Slide 21: Liquidity as of October 20, 2023
Liquidity as of October 20, 2023 Corporate/ PNM Resources PNM TNMP Other Consolidated Financing Capacity(1): (In millions) Revolving credit facilities $440.0 $100.0 $300.0 $840.0 As of 10/20/23: Short-term debt and LOC balances 161.7 43.6 196.5 401.8 Remaining availability 278.3 56.4 103.5 438.2 Inv
Slide 22: Selected Balance Sheet Information
Selected Balance Sheet Information (In millions) Dec. 31, 2022 Sept. 30, 2023 Long-Term Debt (incl. current portion) (1) PNM $2,000.9 $2,145.2 TNMP 1,076.9 1,260.9 Corporate/Other 999.6 999.0 Consolidated $4,077.4 $4,405.1 Total Debt (incl. short-term) (1,2) PNM $2,186.8 $2,312.1 TNMP 1,113.6 1,300.
Slide 23: 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