PNM Resources Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>PNM Resources Inc. submitted its Q1 2024 10-Q filing on May 3, 2024, detailing financial performance and position.</b>

AI Summary

PUBLIC SERVICE CO OF NEW MEXICO (PNMXO) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. PNM Resources Inc. filed its quarterly report (10-Q) on May 3, 2024, for the period ending March 31, 2024. The filing covers the consolidated financial activities of Public Service Company of New Mexico and Texas New Mexico Power Company. Key financial data for the first quarter of 2024 and comparative periods are included. The report details various balance sheet items as of March 31, 2024, and December 31, 2023. The company is identified by Central Index Key 0001108426 and operates under the SIC code 4911 (Electric Services).

Why It Matters

For investors and stakeholders tracking PUBLIC SERVICE CO OF NEW MEXICO, this filing contains several important signals. This filing provides investors with the latest financial snapshot of PNM Resources, including revenue, assets, and liabilities, crucial for assessing the company's current health and future prospects. The inclusion of data for both Public Service Company of New Mexico and Texas New Mexico Power Company offers a comprehensive view of the parent company's operational and financial standing across its subsidiaries.

Risk Assessment

Risk Level: medium — PUBLIC SERVICE CO OF NEW MEXICO shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information. However, the complexity of utility operations and regulatory environments can introduce medium-level risks.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand the drivers of performance and any emerging risks or opportunities.

Key Numbers

• 2024-03-31 — Reporting Period End Date (The 10-Q covers the period ending on this date.)
• 2024-05-03 — Filing Date (The date the 10-Q was officially filed with the SEC.)
• 0001108426 — Accession Number (Unique identifier for the filing.)
• 0001108426 — Central Index Key (PNM Resources Inc.) (Unique identifier for PNM Resources Inc.)

Key Players & Entities

• PNM Resources Inc. (company) — Filer of the 10-Q report.
• Public Service Company of New Mexico (company) — Subsidiary of PNM Resources Inc.
• Texas New Mexico Power Company (company) — Subsidiary of PNM Resources Inc.
• 2024-03-31 (date) — End of the reporting period.
• 2024-05-03 (date) — Filing date of the 10-Q.
• 4911 (other) — Standard Industrial Classification code for Electric Services.

FAQ

Industry Context

PNM Resources Inc. operates in the electric services industry, providing electricity generation and distribution. The company is regulated by state utility commissions.

Regulatory Implications

As a utility company, PNM Resources Inc. and its subsidiaries are subject to extensive regulation by state and federal authorities, impacting rates, operations, and environmental compliance.

What Investors Should Do

1. Analyze the financial statements for revenue trends and profitability metrics.
2. Examine the balance sheet for changes in assets, liabilities, and equity compared to prior periods.
3. Review any disclosures related to regulatory proceedings or significant operational events.

Key Dates

• 2024-03-31: Quarterly Period End — Marks the end of the reporting period for the 10-Q filing.
• 2024-05-03: Filing Date — The date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the first quarterly report for the fiscal year 2024, providing updated financial information compared to the previous year's filings.

Key Financial Figures

• $10 — mber of shares of common stock of TNMP, $10 par value per share, outstanding as of
• $344 million — ernization investments of approximately $344 million for the first six years of a broader 11
• $40.0 million — s PNM New Mexico Credit Facility PNM's $40.0 million Unsecured Revolving Credit Facility PN
• $200.0 million — Table of Contents PNM 2023 SUNs PNM's $200.0 million Senior Unsecured Notes issued on April
• $400.0 million — 23 PNM Revolving Credit Facility PNM's $400.0 million Unsecured Revolving Credit Facility PN
• $1.0 billion — PNMR 2021 Delayed-Draw Term Loan PNMR's $1.0 billion Unsecured Delayed-Draw Term Loan that m
• $500.0 million — ales agents PNMR 2023 Term Loan PNMR's $500.0 million term loan that matures on June 30, 2026
• $300.0 million — PNMR Revolving Credit Facility PNMR's $300.0 million Unsecured Revolving Credit Facility PP
• $185.0 million — Agreement for the sale of an aggregate $185.0 million of TNMP's 2023 Bonds TNMP 2024 Bonds
• $285.0 million — Agreement for the sale of an aggregate $285.0 million of TNMP's 2024 Bonds TNMP Revolving C
• $75.0 million — TNMP Revolving Credit Facility TNMP's $75.0 million Secured Revolving Credit Facility ($100
• $100.0 million — lion Secured Revolving Credit Facility ($100.0 million as of May 13, 2022) TOD Time of Day

Filing Documents

• pnm-20240331.htm (10-Q) — 3331KB
• pnm3312024ex105.htm (EX-10.5) — 77KB
• pnm3312024ex106.htm (EX-10.6) — 17KB
• pnm3312024ex107.htm (EX-10.7) — 51KB
• pnm3312024ex311.htm (EX-31.1) — 11KB
• pnm3312024ex312.htm (EX-31.2) — 11KB
• pnm3312024ex313.htm (EX-31.3) — 11KB
• pnm3312024ex314.htm (EX-31.4) — 11KB
• pnm3312024ex315.htm (EX-31.5) — 11KB
• pnm3312024ex316.htm (EX-31.6) — 11KB
• pnm3312024ex321.htm (EX-32.1) — 8KB
• pnm3312024ex322.htm (EX-32.2) — 8KB
• pnm3312024ex323.htm (EX-32.3) — 8KB
• 0001108426-24-000041.txt (&nbsp;) — 17912KB
• pnm-20240331.xsd (EX-101.SCH) — 132KB
• pnm-20240331_cal.xml (EX-101.CAL) — 131KB
• pnm-20240331_def.xml (EX-101.DEF) — 885KB
• pnm-20240331_lab.xml (EX-101.LAB) — 1177KB
• pnm-20240331_pre.xml (EX-101.PRE) — 1116KB
• pnm-20240331_htm.xml (XML) — 2917KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) PNM RESOURCES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Earnings 8 Condensed Consolidated Statements of Comprehensive Income 9 Condensed Consolidated Statements of Cash Flows 10 Condensed Consolidated Balance Sheets 12 Condensed Consolidated Statements of Changes in Equity 14 PUBLIC SERVICE COMPANY OF NEW MEXICO AND SUBSIDIARIES Condensed Consolidated Statements of Earnings 15 Condensed Consolidated Statements of Comprehensive Income 16 Condensed Consolidated Statements of Cash Flows 17 Condensed Consolidated Balance Sheets 19 Condensed Consolidated Statements of Changes in Equity 21 TEXAS-NEW MEXICO POWER COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Earnings 22 Condensed Consolidated Statements of Cash Flows 23 Condensed Consolidated Balance Sheets 24 Condensed Consolidated Statements of Changes in Common Stockholder's Equity 26 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 27

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 70

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 99

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 101

OTHER INFORMATION

PART II. OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 101

RISK FACTORS

ITEM 1A. RISK FACTORS 102

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 102

EXHIBITS

ITEM 6. EXHIBITS 102 SIGNATURE 104 3 Table of Contents GLOSSARY Definitions: 2023 Forward Sale Agreements PNMR's forward sale agreements under the PNMR 2022 ATM Program 2024 Rate Change PNM's request for a general increase in electric rates filed with the NMPRC on December 5, 2022 using a calendar year 2024 FTY 2025 Rate Change PNM's request for a general increased in electric rates expected to be filed with the NMPRC on or before June 14, 2024 using a FTY beginning July 1, 2025 2026 Resource Application PNM's October 25, 2023 application with the NMPRC seeking approval of resources to be available for the 2026 summer peak ABCWUA Albuquerque Bernalillo County Water Utility Authority ACE Rule Affordable Clean Energy Rule AEP OnSite Partners AEP OnSite Partners, LLC, a subsidiary of American Electric Power, Inc. AFUDC Allowance for Funds Used During Construction AMI Advanced Metering Infrastructure AMS Advanced Meter System AOCI Accumulated Other Comprehensive Income APS Arizona Public Service Company, the operator and a co-owner of PVNGS and Four Corners ARO Asset Retirement Obligation ARP Alternative Revenue Program ASU Accounting Standards Update Avangrid Avangrid, Inc., a New York corporation BART Best Available Retrofit Technology Board Board of Directors of PNMR BSER Best system of emission reduction technology CAA Clean Air Act CAISO California Independent System Operator CCN Certificate of Convenience and Necessity CCR Coal Combustion Residuals CCS Carbon Capture and Storage/Sequestration CIAC Contributions in Aid of Construction CO 2 Carbon Dioxide CSA Coal Supply Agreement CWIP Construction Work in Progress DC Circuit United States Court of Appeals for the District of Columbia Circuit DCRF TNMP's applications for a distribution cost recovery factor DOE United States Department of Energy EGU Electric Generating Unit EIM Western Energy Imbalance Market developed and operated by CAISO ELG Effluent Limitation

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS PNM RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Three Months Ended March 31, 2024 2023 (In thousands, except per share amounts) Electric Operating Revenues $ 436,877 $ 544,077 Operating Expenses: Cost of energy 132,304 241,686 Administrative and general 55,427 55,110 Energy production costs 22,212 22,358 Regulatory disallowances 4,459 — Depreciation and amortization 93,187 78,074 Transmission and distribution costs 22,764 22,196 Taxes other than income taxes 25,934 25,562 Total operating expenses 356,287 444,986 Operating income 80,590 99,091 Other Income and Deductions: Interest income 4,580 4,843 Gains on investment securities 17,998 6,442 Other income 4,911 3,093 Other (deductions) ( 16,522 ) ( 2,493 ) Net other income and deductions 10,967 11,885 Interest Charges 53,762 40,923 Earnings before Income Taxes 37,795 70,053 Income Taxes (Benefits) ( 12,571 ) 9,780 Net Earnings 50,366 60,273 (Earnings) Attributable to Valencia Non-controlling Interest ( 3,044 ) ( 5,127 ) Preferred Stock Dividend Requirements of Subsidiary ( 132 ) ( 132 ) Net Earnings Attributable to PNMR $ 47,190 $ 55,014 Net Earnings Attributable to PNMR per Common Share: Basic $ 0.52 $ 0.64 Diluted $ 0.52 $ 0.64 Dividends Declared per Common Share $ 0.3875 $ 0.3675 The accompanying notes, as they relate to PNMR, are an integral part of these condensed consolidated financial statements. 8 Table of Contents PNM RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended March 31, 2024 2023 (In thousands) Net Earnings $ 50,366 $ 60,273 Other Comprehensive Income: Unrealized Gains on Available-for-Sale Debt Securities : Net increase in unrealized holding gains arising during the period, net of income tax (expense) benefit of $( 125 ) and $( 1,059 ) 366 3,111 Reclassification adjustment for (gains) included

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