Txnm Energy, Inc. · NYSE:TXNM
Txnm Energy — Q1 2023 Earnings Presentation
22 slides from Txnm Energy's earnings presentation, May 5, 2023
Slide 1: Q1 2023 Earnings Review
Q1 2023 Earnings Review May 5, 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 Q1 2023 Clean Energy Q1 2022 Q1 2023 earnings results GAAP EPS Strong Financial Focus $0.64 $0.19 Ongoing EPS $0.55 $0.50 Profile 2023 earnings guidance • 2023 Ongoing EPS Guidance affirmed $2.65 - $2.75 affirmed Strategic Update
Slide 5: Operational and Regulatory Updates
Operational and Regulatory Updates
Slide 6: Load and Economic Conditions
Load and Economic Conditions PNM Load growth and weather increase usage PNM Q1 2023 2023E Growth driven by Residential and Commercial customers 2023 guidance includes ramp-up from Industrial customers Total Retail Load(1) 1.4% 2% - 3% Colder temperatures increased Q1 2023 customer usage PNM Av
Slide 7: Operational Highlights
Operational Highlights PNM Clean Energy Transition • Preparing to integrate PNM’s first utility-scale battery storage • Arroyo Energy Storage Project (150 MW) • Jicarilla Energy Storage Project (20 MW) • New connecting solar (350 MW) to be integrated in 2023 • Additional solar and storage expected i
Slide 8: PNM and TNMP Key Regulatory Proceedings
PNM and TNMP Key Regulatory Proceedings PNM Abandonment/Securitization of Four Corners Coal Plant • New Mexico Supreme Court oral arguments held March 28, 2023 Grid Modernization • Hearings completed, approvals expected in Q3 2023 2024 Rate Change • Procedural schedule revised: • May 12, 2023: Settl
Slide 9: Financial Updates
a oe a eA Financial Updates
Slide 10: Q1 2023 Ongoing EPS Financial Summary
Q1 2023 Ongoing EPS Financial Summary Q1 2023 changes in ongoing Q1 Earnings Summary earnings: • Increased PNM transmission margins Clean$0.20 Energy ($0.07) Strong Financial ($0.08) • Lower costs associated with Focus TNMP Profile $0.55 $0.50 PNM generation portfolio Corporate changes PNM • TNMP Tr
Slide 11: Earnings Guidance (Ongoing)
Earnings Guidance (Ongoing) 2023 Guidance Updates: 2023 Earnings Guidance • Annual guidance range affirmed, $2.65 Consolidated EPS $2.75 quarterly distribution updated PNM TNMP Corp/Other • Interest rate hedges reduce $2.14 – $2.19 $0.98 – $1.01 ($0.47) – ($0.45) variable interest rate risks Incorpo
Slide 12: Appendix
Appendix
Slide 13: PNM and TNMP Key Regulatory Proceedings
PNM and TNMP Key Regulatory Proceedings Filing Action Timing Docket No. PNM/AVANGRID appealed NMPRC denial with NM No statutory timeframe for response to joint Merger transaction Supreme Court on Jan. 3, 2022, briefings completed Aug. 20-00222-UT motion to dismiss/remand, appeal or request approval
Slide 14: Q1 2023 Ongoing EPS Details: PNM
Q1 2023 Ongoing EPS Details: PNM • Lower costs associated with the PNM $0.55 retirement of the San Juan $0.35 Generating Station and return of Palo Verde leased capacity • Higher transmission margins due to higher market power prices Q1 2022 Q1 2023 and higher system demands • Timing of excess defer
Slide 15: Q1 2023 Ongoing EPS Details: TNMP
Q1 2023 Ongoing EPS Details: TNMP TNMP • Rate relief from 2022 TCOS and DCRF filings $0.18 $0.11 • Weather-normalized load growth, primarily from crypto Q1 2022 Q1 2023 mining customers, largely offset by milder temperatures Q1 2023 Key Performance Drivers ∆ EPS • Higher expenses (depreciation, Tran
Slide 16: Q1 2023 Ongoing EPS Details: Corporate
Q1 2023 Ongoing EPS Details: Corporate Corporate ($0.03) ($0.11) Q1 2022 Q1 2023 • Higher interest rates on Q1 2023 Key Performance Drivers ∆ EPS variable debt, net of hedges Interest expense ($0.08) 16
Slide 17: Weather Impacts
Weather Impacts PNM: PNM Q1 2023 Q1 2022 Q1 Normal(1) • Q1 2023 temperatures Heating Degree Days 1,299 1,278 1,124 were colder than normal Cooling Degree Days 0 0 0 and in line with Q1 2022 Net EPS Impact $0.02 $0.02 $- compared to Normal TNMP: TNMP Q1 2023 Q1 2022 Q1 Normal(1) • Q1 2023 temperature
Slide 18: Investment Plan and Rate Base Growth
Investment Plan and Rate Base Growth $1,027 $42 $907 $866 $40 $38 Investment plan through $424 $381 $325 2025 focused on T&D $59 $51 $68 (in millions) infrastructure, includes PNM grid modernization $503 $419 $362 $452 $391 $320 2023 2024 2025 PNM T&D PNM Generation TNMP IT Depreciation Note: Amount
Slide 19: Balance Sheet and Credit Metrics
Balance Sheet and Credit Metrics
Slide 20: Liquidity as of April 28, 2023
Liquidity as of April 28, 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 4/28/23: Short-term debt and LOC balances 31.4 11.5 91.3 134.2 Remaining availability 408.6 88.5 208.7 705.8 Invested
Slide 21: Selected Balance Sheet Information
Selected Balance Sheet Information (In millions) Dec. 31, 2022 Mar. 31, 2023 Long-Term Debt (incl. current portion) (1) PNM $2,000.9 $2,001.5 TNMP 1,076.9 1,076.9 Corporate/Other 999.6 999.6 Consolidated $4,077.4 $4,078.0 Total Debt (incl. short-term) (1,2) PNM $2,186.8 $2,212.4 TNMP 1,113.6 1,176.9
Slide 22: 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