Txnm Energy, Inc. · NYSE:TXNM
Txnm Energy — Q1 2025 Earnings Presentation
24 slides from Txnm Energy's earnings presentation, May 9, 2025
Slide 1: Q1 2025 Earnings Review
Q1 2025 Earnings Review May 9, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements made in this presentation for TXNM Energy, Inc. (“TXNM”), Public Service Company of New Mexico (“PNM”), or Texas-New Mexico Power Company (“TNMP”) (collectively, the “Company”) that rela
Slide 3: Overview and Highlights
Overview and Highlights “eI te ee | sae “am : Te Sb Se et + — +— Joa a cane 1 res GULL DY A 3-4} ___ 4,
Slide 4: Q1 2025 Financial Results and Company Updates
Q1 2025 Financial Results and Company Updates Financial Results and Growth Outlook Q1 2025 Q1 2024 2025 results on track for full GAAP EPS $0.10 $0.52 year expectations Ongoing EPS $0.19 $0.41 • 2025 Ongoing EPS guidance range of $2.74 - $2.84 EPS growth target of affirmed 7% - 9% • 7% - 9% long-ter
Slide 5: Utility Highlights
Utility Highlights
Slide 6: TNMP Q1 2025 Highlights
TNMP Q1 2025 Highlights TNMP System Peak Continued system-wide growth • New all-time system peak in February: 3,158 MW 3,158 2,993 • 22% increase over Q1 2024 peak 2,545 Peak MW 2,240 • 670+ MW data center load in service 2,030 • Interconnection requests up 6% in Q1 2025 compared to Q1 2024 2021 202
Slide 7: TNMP Current Outlook
TNMP Current Outlook Growth Drives Capital Investments TNMP Capital Investment Plan • No changes to current investment plans, focus remains on supporting growth with a reliable $1,048 $1,008 and resilient grid (in millions) $818 $615 $676 Texas 2025 Legislative Session (ends June 2) • Increased disc
Slide 8: PNM Q1 2025 Highlights
PNM Q1 2025 Highlights Q1 2025 Regulatory Highlights PNM Resource Portfolio MW Capacity Hearing Examiners recommended approval of unopposed stipulation filed in 2025 Rate Request Current Coal 2028(1) Coal Hearing Examiners recommended approval of unopposed stipulation filed in 2028 Resource Rene
Slide 9: PNM Current Outlook
PNM Current Outlook Balanced Capital Investments PNM Capital Investment Plan • No changes to current investment plans, focus $714 $716 $676 $648 $663 remains on balancing system needs with $112 $219 $127 $67 customer affordability $205 (in millions) • Pursuit of transmission development to support g
Slide 10: Financial Updates
Financial Updates
Slide 11: Q1 2025 Ongoing Earnings Summary and 2025 Earnings Guidance
Q1 2025 Ongoing Earnings Summary and 2025 Earnings Guidance Q1 2025 changes in ongoing earnings: • Rate recovery through TNMP DCRF and TCOS Q1 Earnings Summary capital recovery mechanisms Clean Energy EPS Summary Strong Q1 2025 Financial Q1 2024 • Retail load growth, including impacts of weather-rel
Slide 12: Capital Investment Plan 2025 – 2029 (unchanged)
Capital Investment Plan 2025 – 2029 (unchanged) 5-year capital investment plan of $7.8 billion $1,774 $1,721 $1,582 $50 $50 $127 $67 $1,436 $48 $1,321 $46 $219 $58 $112 $549 $596 $205 (in millions) $497 $602 $443 $1,048 $591 $1,008 $640 $502 $818 $544 $615 $405 $676 2025 2026 2027 2028 2029 TNMP PNM
Slide 13: 2025 - 2029 Potential Earnings Power (unchanged)
2025 - 2029 Potential Earnings Power (unchanged) 7% - 9% EPS Growth 2025-2029(1) 2025 2026 Earnings 2027 Earnings 2028 Earnings 2029 Earnings Allowed Guidance Equity Potential Potential Potential Potential Midpoint Return / Avg Avg Avg Avg Avg Ratio Rate EPS Rate EPS Rate EPS Rate EPS Rate EPS Base
Slide 14: Appendix
Appendix
Slide 15: TNMP and PNM Key Regulatory Items
TNMP and PNM Key Regulatory Items Filing Action Timing Docket No. Approved March 13, 2025, with System Resiliency Plan Filed August 28, 2024 56954 order issued March 26, 2025 Transmission Cost of Service Approved and implemented Filed January 24, 2025 57578 (1st 2025 filing) March 25, 2025 TNMP PUCT
Slide 16: Q1 2025 Ongoing EPS Details: TNMP
Q1 2025 Ongoing EPS Details: TNMP TNMP $0.24 $0.16 • Rate relief from implementation of DCRF and TCOS increases Q1 2024 Q1 2025 • Retail load growth, partially Q1 2025 Key Drivers ∆ EPS due to weather-related usage Retail load and weather $0.05 (higher heating and cooling degree-days vs Q1 2024) Dis
Slide 17: Q1 2025 Ongoing EPS Details: PNM
Q1 2025 Ongoing EPS Details: PNM • Retail load growth, partially PNM offset by lower weather-related $0.38 usage (lower heating degree days vs Q1 2024) $0.09 • Dilutive impact of additional shares issued in Dec. 2024 • Reduction in transmission Q1 2024 Q1 2025 margins due to lower market Q1 2025 Key
Slide 18: Q1 2025 Ongoing EPS Details: Corporate
Q1 2025 Ongoing EPS Details: Corporate Corporate ($0.13) ($0.14) Q1 2024 Q1 2025 • Higher interest expense on Q1 2025 Key Drivers ∆ EPS Holding Company debt Interest expense ($0.01) 18
Slide 19: Weather Impacts
Weather Impacts TNMP Q1 2025 Q1 2024 Q1 Normal(1) Cooling Degree Days 162 118 134 Heating Degree Days 940 805 858 Net EPS Impact compared to Normal $0.01 ($0.00) PNM Q1 2025 Q1 2024 Q1 Normal(1) Cooling Degree Days 2 0 0 Heating Degree Days 1,024 1,080 1,124 Net EPS Impact compared to Normal ($0.01)
Slide 20: 2025 Ongoing Earnings Guidance Quarterly Distribution
2025 Ongoing Earnings Guidance Quarterly Distribution Estimated Quarterly Ongoing EPS Distribution Quarterly distribution 55% continues to be heavily weighted towards Q3 25% 13% 7% Q1 Q2 Q3 Q4 20
Slide 21: Financing Plan (unchanged)
Financing Plan (unchanged) 2025 – 2029 Financing Activities Long-term Long-termDebt DebtMaturities Maturities • Refinancing of remaining Corporate term inin millions millions (1)(1) loans with debt securities providing equity $550 content • Total equity needs of $1.3b 2025-2029 to $1,418 fund $7.8b
Slide 22: 2025 - 2029 Potential Earnings Power (unchanged)
2025 - 2029 Potential Earnings Power (unchanged) 2025 2026 Earnings 2027 Earnings 2028 Earnings 2029 Earnings Allowed Guidance Equity Potential Potential Potential Potential Midpoint Return / Avg Avg Avg Avg Avg Ratio Rate EPS Rate EPS Rate EPS Rate EPS Rate EPS Base Base Base Base Base 9.45% / PNM
Slide 23: Liquidity as of April 25, 2025
Liquidity as of April 25, 2025 Corporate/ TXNM Energy PNM TNMP Other Consolidated Financing Capacity(1): (In millions) Revolving credit facilities $440.0 $200.0 $300.0 $940.0 As of 04/25/25: Short-term debt and 37.7 155.7 161.1 354.5 L/C balances Remaining availability 402.3 44.3 138.9 585.5 Investe
Slide 24: Selected Balance Sheet Information
Selected Balance Sheet Information (In millions) Dec. 31, 2024 Mar. 31, 2025 Long-Term Debt (incl. current portion) (1) PNM $2,459.6 $2,651.6 TNMP 1,464.1 1,603.2 Corporate/Other 999.7 999.8 Consolidated $4,923.4 $5,254.6 Total Debt (incl. short-term) (1,2) PNM $2,823.4 $2,949.9 TNMP 1,615.7 1,743.1