PNM Resources Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>PNM Resources Inc. has filed its 2023 10-K report detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

TEXAS NEW MEXICO POWER CO filed a Annual Report (10-K) with the SEC on February 29, 2024. PNM Resources Inc. filed its 2023 Form 10-K on February 29, 2024. The filing covers the fiscal year ending December 31, 2023. Key subsidiaries include Texas New Mexico Power Co. and Public Service Co. of New Mexico. The company's primary business is electric services. The filing includes financial data and risk factors for the reporting period.

Why It Matters

For investors and stakeholders tracking TEXAS NEW MEXICO POWER CO, this filing contains several important signals. This 10-K filing provides a comprehensive overview of PNM Resources' financial health, operational performance, and strategic direction for the past fiscal year, crucial for investors assessing its current standing and future prospects. The report details the financial activities of its major subsidiaries, Public Service Co. of New Mexico and Texas New Mexico Power Co., offering insights into the performance of its core electric utility operations.

Risk Assessment

Risk Level: — TEXAS NEW MEXICO POWER CO shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial and operational information, it does not inherently signal immediate positive or negative developments beyond the typical disclosures of a public company.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand PNM Resources' performance and potential challenges in the electric utility sector.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-02-29 — Filing Date (Date the 10-K was submitted)

Key Players & Entities

• PNM Resources Inc. (company) — Filer of the 10-K report
• Texas New Mexico Power Co. (company) — Subsidiary of PNM Resources Inc.
• Public Service Co. of New Mexico (company) — Subsidiary of PNM Resources Inc.
• 2023-12-31 (date) — Fiscal year end
• 2024-02-29 (date) — Filing date

FAQ

Industry Context

PNM Resources operates in the electric services industry, providing electricity to customers in New Mexico and Texas through its subsidiaries.

Regulatory Implications

The company is subject to regulations from state public utility commissions and federal agencies governing the electric utility sector.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and debt levels.
2. Review the risk factors section for potential operational, regulatory, or market challenges.
3. Examine management's discussion and analysis for strategic priorities and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-29: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the company's 2023 annual report (10-K), providing a comprehensive update on its financial and operational status compared to previous periods.

Key Financial Figures

• $100 — ies, 4.58% Cumulative Preferred Stock ($100 stated value without sinking fund) In
• $45.10 — composite transaction closing price of $45.10 per share reported by The Wall Street J
• $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
• $100.3 million — m Loan PNM 2021 Fixed Rate PCRBs PNM's $100.3 million PCRBs remarketed on October 1, 2021 PN
• $160.0 Million — of PNM's 2021 SUNs PNM 2021 SUNs PNM's $160.0 Million Senior Unsecured Notes issued on July 1
• $75.0 Million — July 14, 2021 PNM 2021 Term Loan PNM's $75.0 Million 18-month Unsecured Term Loan that was r
• $225.0 million — PNM 2022 Delayed- Draw Term Loan PNM's $225.0 million Unsecured Term Loan that matures Februa
• $400.0 Million — PNM Revolving Credit Facility PNM's $400.0 Million Unsecured Revolving Credit Facility PN
• $150.0 Million — 021 SUNs PNM September 2021 SUNs PNM's $150.0 Million Senior Unsecured Notes issued on Decemb
• $300.0 Million — nd Subsidiaries PNMR 2018 SUNS PNMR's $300.0 Million Senior Unsecured Notes issued on March
• $150.0 million — Agreement PNMR 2020 Term Loan PNMR's $150.0 million Unsecured Term Loan that was repaid on
• $300.0 million — PNMR 2020 Delayed-Draw Term Loan PNMR's $300.0 million Unsecured Delayed-Draw Term Loan that w
• $1.0 Billion — PNMR 2021 Delayed-Draw Term Loan PNMR's $1.0 Billion Unsecured Delayed-Draw Term Loan that m
• $200.0 million — sell up to an aggregate sales price of $200.0 million of common stock PNMR Development PNMR

Filing Documents

• pnm-20231231.htm (10-K) — 6638KB
• pnmr12312023ex1059.htm (EX-10.59) — 17KB
• pnmr12312023ex1081.htm (EX-10.81) — 37KB
• pnmr12312023ex1082.htm (EX-10.82) — 36KB
• pnmr12312023ex1083.htm (EX-10.83) — 36KB
• pnmr12312023ex21.htm (EX-21) — 4KB
• pnmr12312023ex231.htm (EX-23.1) — 2KB
• pnmr12312023ex232.htm (EX-23.2) — 2KB
• pnmr12312023ex311.htm (EX-31.1) — 11KB
• pnmr12312023ex312.htm (EX-31.2) — 12KB
• pnmr12312023ex313.htm (EX-31.3) — 11KB
• pnmr12312023ex314.htm (EX-31.4) — 12KB
• pnmr12312023ex315.htm (EX-31.5) — 11KB
• pnmr12312023ex316.htm (EX-31.6) — 12KB
• pnmr12312023ex321.htm (EX-32.1) — 9KB
• pnmr12312023ex322.htm (EX-32.2) — 9KB
• pnmr12312023ex323.htm (EX-32.3) — 9KB
• pnmr12312023ex97.htm (EX-97) — 31KB
• 0001108426-24-000008.txt (&nbsp;) — 33565KB
• pnm-20231231.xsd (EX-101.SCH) — 218KB
• pnm-20231231_cal.xml (EX-101.CAL) — 200KB
• pnm-20231231_def.xml (EX-101.DEF) — 1448KB
• pnm-20231231_lab.xml (EX-101.LAB) — 2007KB
• pnm-20231231_pre.xml (EX-101.PRE) — 1756KB
• pnm-20231231_htm.xml (XML) — 6693KB

BUSINESS A - 1

ITEM 1. BUSINESS A - 1 THE COMPANY A - 1 WEBSITES A - 2 OPERATIONS AND REGULATION A - 2 REGULATED OPERATIONS PNM A - 2 TNMP A - 4 CORPORATE AND OTHER A - 5 SOURCES OF POWER A - 5 FUEL SUPPLY A - 8 ENVIRONMENTAL MATTERS A - 9 COMPETITION A - 10 HUMAN CAPITAL RESOURCES A - 10 DISCLOSURE REGARDING FORWARD LOOKING STATEMENTS A - 11 SECURITIES ACT DISCLAIMER A - 12

RISK FACTORS A - 12

ITEM 1A. RISK FACTORS A - 12

UNRESOLVED STAFF COMMENTS A - 21

ITEM 1B. UNRESOLVED STAFF COMMENTS A - 21

CYBERSECURITY

ITEM 1C. CYBERSECURITY A - 21

PROPERTIES A - 22

ITEM 2. PROPERTIES A - 22

LEGAL PROCEEDINGS A - 23

ITEM 3. LEGAL PROCEEDINGS A - 23

MINE SAFETY DISCLOSURES A - 23

ITEM 4. MINE SAFETY DISCLOSURES A - 23 SUPPLEMENTAL ITEM – INFORMATION ABOUT EXECUTIVE OFFICERS OF PNM RESOURCES, INC. A - 23 PART II

MARKET FOR PNMR'S COMMON EQUITY, RELATED STOCKHOLDER

ITEM 5. MARKET FOR PNMR'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES A - 24

[RESERVED] A - 24

ITEM 6. [RESERVED] A - 24

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

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS A - 24

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK A - 56

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK A - 56

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA B - 1

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA B - 1

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING C - 1

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING C - 1 AND FINANCIAL DISCLOSURE

CONTROLS AND PROCEDURES C - 1

ITEM 9A. CONTROLS AND PROCEDURES C - 1

OTHER INFORMATION C - 2

ITEM 9B. OTHER INFORMATION C - 2

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS C - 2

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS C - 2 PART III

DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE C - 2

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE C - 2

EXECUTIVE COMPENSATION C - 2

ITEM 11. EXECUTIVE COMPENSATION C - 2

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS C - 2

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE C - 2

PRINCIPAL ACCOUNTING FEES AND SERVICES C - 2

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES C - 2 PART IV

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES D - 1

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES D - 1

FORM 10-K SUMMARY D - 11

ITEM 16. FORM 10-K SUMMARY D - 11

SIGNATURES

SIGNATURES E - 1 ii Table of Contents GLOSSARY Definitions: 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 ABCWUA Albuquerque Bernalillo County Water Utility Authority ABO Accumulated Benefit Obligation ACE Rule Affordable Clean Energy Rule AEP OnSite Partners AEP OnSite Partners, LLC, a subsidiary of American Electric Power, Inc. Afton Afton Generating Station AFUDC Allowance for Funds Used During Construction AMI Advanced Metering Infrastructure AMS Advanced Meter System AOCI Accumulated Other Comprehensive Income APBO Accumulated Postretirement Benefit Obligation APS Arizona Public Service Company, the operator and a co-owner of PVNGS and Four Corners ARO Asset Retirement Obligation ARP Alternative Revenue Program 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 BTU British Thermal Unit CAA Clean Air Act CAISO California Independent System Operator Carbon Pollution Standards Carbon Pollution Standards established by the EPA on August 3, 2015 Casa Mesa Wind Casa Mesa Wind Energy Center CCAE Coalition for Clean Affordable Energy CCR Coal Combustion Residuals CIAC Contributions in Aid of Construction CO 2 Carbon Dioxide Community Solar Act Senate Bill 84 effective June 18, 2021 COVID-19 Novel coronavirus global pandemic CSA Coal Supply Agreement CWIP Construction work in progress DC Circuit United States Court of Appeals for the District of Columbia Circuit DCRF Distribution cost recovery filing DOE United States Department of Energy Effective Time The time the Merger is consummated EGU Electric Generating Unit EIM Western Energy Imbalance Market developed and operated by CAISO ELG Effluent Limitation Guidelines End Date The date at which the Merger Agreement may be terminated if the Effective Ti

BUSINESS

ITEM 1. BUSINESS THE COMPANY Overview PNMR is an investor-owned holding company with two regulated utilities serving approximately 824,000 residential, commercial, and industrial customers and end-users of electricity in New Mexico and Texas. PNMR's electric utilities are PNM and TNMP. PNMR strives to create a clean and bright energy future for customers, communities, and shareholders. PNMR's strategy and decision-making are focused on safely providing reliable, affordable, and environmentally responsible power built on a foundation of Environmental, Social and Governance (ESG) principles. PNMR is focused on achieving three key financial objectives: Earning authorized returns on regulated businesses Delivering at or above industry-average earnings and dividend growth Maintaining investment grade credit ratings In conjunction with these objectives, PNM and TNMP are dedicated to: Maintaining strong employee safety, plant performance, and system reliability Delivering a superior customer experience Demonstrating environmental stewardship in business operations, including transitioning to an emissions-free generating portfolio by 2040 Supporting the communities in their service territories PNMR's success in accomplishing its financial objectives is highly dependent on two key factors: fair and timely regulatory treatment for its utilities and the utilities' strong operating performance. The Company has multiple strategies in place to achieve favorable regulatory treatment, all of which have as their foundation a focus on the basics: safety, operational excellence, and customer satisfaction, while engaging stakeholders to build productive relationships. The Company believes that maintaining strong and modern electric infrastructure is critical to ensuring reliability and supporting economic growth. PNM and TNMP strive to balance service affordability with infrastructure investment to maintain a high level of electric reliability and to deliver a safe an

View Full Filing

View this 10-K filing on SEC EDGAR