PNM Resources Inc. Files 10-Q for Q3 2024

TL;DR

PNM files Q3 10-Q. All systems go in Albuquerque.

AI Summary

Public Service Company of New Mexico (PNM) filed its 10-Q for the period ending September 30, 2024. The company, formerly known as PNM Resources Inc., is part of the 01 Energy & Transportation group and operates under the SIC code for Electric Services. Their principal business address is in Albuquerque, NM.

Why It Matters

This filing provides crucial financial and operational updates for Public Service Company of New Mexico, impacting investors and stakeholders by detailing the company's performance and outlook.

Risk Assessment

Risk Level: low — This is a standard quarterly filing providing routine financial information.

Key Numbers

• 20240930 — Period End Date (This is the end date for the reporting period covered by the 10-Q.)
• 20241101 — Filing Date (This is the date the 10-Q was filed with the SEC.)

Key Players & Entities

• PUBLIC SERVICE CO OF NEW MEXICO (company) — Filer
• PNM RESOURCES INC (company) — Former company name
• TXNM ENERGY INC (company) — Company data
• TEXAS NEW MEXICO POWER CO (company) — Company data
• ROBERT BISCHOFF (person) — Contact person for mail address
• 414 SILVER AVE. SW (location) — Business and mail address
• ALBUQUERQUE (location) — City for business and mail address
• NM (location) — State for business and mail address
• 20240930 (date) — Conformed period of report

FAQ

Key Financial Figures

• $10 — mber of shares of common stock of TNMP, $10 par value per share, outstanding as of
• $550.0 million — rbon Dioxide Convertible Notes TXNM's $550.0 million junior subordinated convertible notes i
• $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 — of PNM's 2023 SUNs PNM 2023 SUNs PNM's $200.0 million Senior Unsecured Notes issued on April
• $400.0 million — 5 PNM Revolving Credit Facility PNM's $400.0 million Unsecured Revolving Credit Facility 5
• $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
• $1.0 billion — XNM 2021 Delayed-Draw Term Loan TXNM's $1.0 billion Unsecured Delayed-Draw Term Loan that m
• $199.2 million — ed and sold an aggregate sales price of $199.2 million of its common stock, no par value, thro
• $500.0 million — es agents TXNM 2023 Term Loan TXNM's $500.0 million term loan that matures on June 30, 2026
• $300.0 million — time, up to an aggregate sales price of $300.0 million of its common stock, no par value, thro

Filing Documents

• pnm-20240930.htm (10-Q) — 4348KB
• txnm9302024ex101.htm (EX-10.1) — 18KB
• txnm9302024ex102.htm (EX-10.2) — 24KB
• txnm9302024ex103.htm (EX-10.3) — 25KB
• txnm9302024ex104.htm (EX-10.4) — 29KB
• txnm9302024ex105.htm (EX-10.5) — 32KB
• txnm9302024ex311.htm (EX-31.1) — 11KB
• txnm9302024ex312.htm (EX-31.2) — 11KB
• txnm9302024ex313.htm (EX-31.3) — 11KB
• txnm9302024ex314.htm (EX-31.4) — 11KB
• txnm9302024ex315.htm (EX-31.5) — 11KB
• txnm9302024ex316.htm (EX-31.6) — 11KB
• txnm9302024ex321.htm (EX-32.1) — 8KB
• txnm9302024ex322.htm (EX-32.2) — 8KB
• txnm9302024ex323.htm (EX-32.3) — 8KB
• 0001108426-24-000096.txt ( ) — 21161KB
• pnm-20240930.xsd (EX-101.SCH) — 142KB
• pnm-20240930_cal.xml (EX-101.CAL) — 138KB
• pnm-20240930_def.xml (EX-101.DEF) — 922KB
• pnm-20240930_lab.xml (EX-101.LAB) — 1271KB
• pnm-20240930_pre.xml (EX-101.PRE) — 1157KB
• pnm-20240930_htm.xml (XML) — 3775KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) TXNM ENERGY , 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 77

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 111

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 113

OTHER INFORMATION

PART II. OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 114

RISK FACTORS

ITEM 1A. RISK FACTORS 114

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 116

EXHIBITS

ITEM 6. EXHIBITS 116 SIGNATURE 118 3 Table of Contents GLOSSARY Definitions: 2023 Forward Sale Agreements TXNM's forward sale agreements under the TXNM 2022 ATM Program 2024 Forward Sale Agreements TXNM's forward sale agreements under the TXNM 2024 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 Request PNM's request for a general increase in electric rates filed with the NMPRC on June 14, 2024 using a FTY beginning July 1, 2025 2026 Resource Application PNM's October 25, 2023 application with the NMPRC for 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 Board Board of Directors of TXNM 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 Convertible Notes TXNM's $550.0 million junior subordinated convertible notes issued on June 10, 2024 and June 21, 2024 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 S

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TXNM ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands, except per share amounts) Electric Operating Revenues $ 569,256 $ 505,851 $ 1,494,235 $ 1,527,084 Operating Expenses: Cost of energy 138,909 210,313 425,919 624,451 Administrative and general 64,840 58,481 179,848 167,630 Energy production costs 21,259 20,388 68,055 68,345 Regulatory disallowances 6,142 2,315 10,601 6,046 Depreciation and amortization 97,400 80,192 285,000 237,405 Transmission and distribution costs 23,660 25,078 71,475 72,739 Taxes other than income taxes 25,966 22,432 75,984 72,395 Total operating expenses 378,176 419,199 1,116,882 1,249,011 Operating income 191,080 86,652 377,353 278,073 Other Income and Deductions: Interest income 8,669 5,366 17,719 15,568 Gains (losses) on investment securities 13,770 ( 8,404 ) 32,326 1,815 Other income 7,953 8,428 20,552 17,121 Other (deductions) ( 1,988 ) ( 4,555 ) ( 20,146 ) ( 10,562 ) Net other income and deductions 28,404 835 50,451 23,942 Interest Charges 59,664 49,838 169,254 136,660 Earnings before Income Taxes 159,820 37,649 258,550 165,355 Income Taxes (Benefits) 23,422 ( 5,267 ) 19,822 12,742 Net Earnings 136,398 42,916 238,728 152,613 (Earnings) Attributable to Valencia Non-controlling Interest ( 5,064 ) ( 5,058 ) ( 11,891 ) ( 14,172 ) Preferred Stock Dividend Requirements of Subsidiary ( 132 ) ( 132 ) ( 396 ) ( 396 ) Net Earnings Attributable to TXNM $ 131,202 $ 37,726 $ 226,441 $ 138,045 Net Earnings Attributable to TXNM per Common Share: Basic $ 1.45 $ 0.44 $ 2.50 $ 1.60 Diluted $ 1.45 $ 0.44 $ 2.50 $ 1.60 Dividends Declared per Common Share $ 0.3875 $ 0.3675 $ 1.1625 $ 1.1025 The accompanying notes, as they relate to TXNM, are an integral part of these condensed consolidated financial statements. 8 Table of Contents TXNM ENERGY,

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