PNM Resources Files Q2 2024 10-Q

TL;DR

PNM Resources dropped its Q2 10-Q. Financials look steady.

AI Summary

PNM Resources Inc. filed its 10-Q for the period ending June 30, 2024. The company, which operates as Public Service Company of New Mexico and Texas-New Mexico Power Co., reported its financial performance. Key financial details and operational updates for the quarter are outlined in this filing.

Why It Matters

This filing provides investors and analysts with the latest financial and operational data for PNM Resources, crucial for understanding the company's performance and future outlook.

Risk Assessment

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

Key Players & Entities

• PNM RESOURCES INC (company) — Filer
• PUBLIC SERVICE CO OF NEW MEXICO (company) — Subsidiary
• TEXAS NEW MEXICO POWER CO (company) — Subsidiary
• 20240630 (date) — Reporting Period End Date
• 20240802 (date) — Filing Date

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 PNMR'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 5
• $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 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
• $100.0 million — time, up to an aggregate sales price of $100.0 million of its common stock, no par value, thro
• $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 6 Table of Con
• $75.0 million — TNMP Revolving Credit Facility TNMP's $75.0 million Secured Revolving Credit Facility ($100

Filing Documents

• pnm-20240630.htm (10-Q) — 4302KB
• pnm6302024ex311.htm (EX-31.1) — 11KB
• pnm6302024ex312.htm (EX-31.2) — 11KB
• pnm6302024ex313.htm (EX-31.3) — 11KB
• pnm6302024ex314.htm (EX-31.4) — 11KB
• pnm6302024ex315.htm (EX-31.5) — 11KB
• pnm6302024ex316.htm (EX-31.6) — 11KB
• pnm6302024ex321.htm (EX-32.1) — 8KB
• pnm6302024ex322.htm (EX-32.2) — 8KB
• pnm6302024ex323.htm (EX-32.3) — 8KB
• 0001108426-24-000068.txt ( ) — 20815KB
• pnm-20240630.xsd (EX-101.SCH) — 141KB
• pnm-20240630_cal.xml (EX-101.CAL) — 137KB
• pnm-20240630_def.xml (EX-101.DEF) — 912KB
• pnm-20240630_lab.xml (EX-101.LAB) — 1260KB
• pnm-20240630_pre.xml (EX-101.PRE) — 1151KB
• pnm-20240630_htm.xml (XML) — 3744KB

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 77

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 110

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 113

OTHER INFORMATION

PART II. OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 113

RISK FACTORS

ITEM 1A. RISK FACTORS 114

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 115

EXHIBITS

ITEM 6. EXHIBITS 115 SIGNATURE 117 3 Table of Contents GLOSSARY Definitions: 2023 Forward Sale Agreements PNMR's forward sale agreements under the PNMR 2022 ATM Program 2024 Forward Sale Agreement PNM's forward sale agreement under the PNMR 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 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 Convertible Notes PNMR'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 distrib

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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands, except per share amounts) Electric Operating Revenues $ 488,102 $ 477,156 $ 924,979 $ 1,021,233 Operating Expenses: Cost of energy 154,706 172,452 287,010 414,138 Administrative and general 59,581 54,039 115,008 109,149 Energy production costs 24,584 25,599 46,796 47,957 Regulatory disallowances — 3,731 4,459 3,731 Depreciation and amortization 94,413 79,139 187,600 157,213 Transmission and distribution costs 25,051 25,465 47,815 47,661 Taxes other than income taxes 24,084 24,401 50,018 49,963 Total operating expenses 382,419 384,826 738,706 829,812 Operating income 105,683 92,330 186,273 191,421 Other Income and Deductions: Interest income 4,470 5,359 9,050 10,202 Gains on investment securities 558 3,777 18,556 10,219 Other income 7,688 5,600 12,599 8,693 Other (deductions) ( 1,636 ) ( 3,515 ) ( 18,158 ) ( 6,008 ) Net other income and deductions 11,080 11,221 22,047 23,106 Interest Charges 55,828 45,899 109,590 86,822 Earnings before Income Taxes 60,935 57,652 98,730 127,705 Income Taxes (Benefits) 8,971 8,229 ( 3,600 ) 18,009 Net Earnings 51,964 49,423 102,330 109,696 (Earnings) Attributable to Valencia Non-controlling Interest ( 3,783 ) ( 3,987 ) ( 6,827 ) ( 9,114 ) Preferred Stock Dividend Requirements of Subsidiary ( 132 ) ( 132 ) ( 264 ) ( 264 ) Net Earnings Attributable to PNMR $ 48,049 $ 45,304 $ 95,239 $ 100,318 Net Earnings Attributable to PNMR per Common Share: Basic $ 0.53 $ 0.53 $ 1.05 $ 1.17 Diluted $ 0.53 $ 0.53 $ 1.05 $ 1.16 Dividends Declared per Common Share $ 0.3875 $ 0.3675 $ 0.7750 $ 0.7350 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 CONSOLIDATE

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