31/07/2024 | Press release | Distributed by Public on 31/07/2024 10:06
GAAP net earnings attributable to PNM Resources | $48.0 | $45.3 | $95.2 | $100.3 |
GAAP diluted EPS | $0.53 | $0.53 | $1.05 | $1.16 |
Ongoing net earnings | $54.3 | $47.4 | $91.3 | $95.1 |
Ongoing diluted EPS | $0.60 | $0.55 | $1.01 | $1.10 |
GAAP Diluted EPS | Ongoing Diluted EPS | |||
Q2 2024 | Q2 2023 | Q2 2024 | Q2 2023 | |
PNM | $0.34 | $0.36 | $0.41 | $0.38 |
TNMP | $0.33 | $0.29 | $0.33 | $0.29 |
Corporate and Other | ($0.14) | ($0.12) | ($0.14) | ($0.12) |
Consolidated PNM Resources | $0.53 | $0.53 | $0.60 | $0.55 |
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||
(in thousands) | ||||||||
Three Months Ended June 30, 2024 | ||||||||
GAAP Net Earnings (Loss) Attributable to PNMR
|
$ | 30,787 | $ | 29,925 | $ | (12,663) | $ | 48,049 |
Adjusting items before income tax effects:
|
||||||||
Net change in unrealized (gains) and losses on investment securities2a
|
5,573 | - | - | 5,573 | ||||
Regulatory disallowances2b
|
246 | - | - | 246 | ||||
Pension expense related to previously disposed of gas distribution business2c
|
433 | - | - | 433 | ||||
Merger related costs2d
|
131 | (26) | 800 | 905 | ||||
Total adjustments before income tax effects | 6,383 | (26) | 800 | 7,157 | ||||
Income tax impact of above adjustments1
|
(1,621) | 5 | (203) | (1,819) | ||||
Timing of statutory and effective tax rates on non-recurring items5
|
1,626 | (83) | (593) | 950 | ||||
Total income tax impacts4
|
5 | (78) | (796) | (869) | ||||
Adjusting items, net of income taxes | 6,388 | (104) | 4 | 6,288 | ||||
Ongoing Earnings (Loss) | $ | 37,175 | $ | 29,821 | $ | (12,659) | $ | 54,337 |
Six Months Ended June 30, 2024 | ||||||||
GAAP Net Earnings (Loss) Attributable to PNMR
|
$ | 72,707 | $ | 44,508 | $ | (21,976) | $ | 95,239 |
Adjusting items before income tax effects:
|
||||||||
Net change in unrealized (gains) and losses on investment securities2a
|
(6,658) | - | - | (6,658) | ||||
Regulatory disallowances2b
|
4,705 | - | - | 4,705 | ||||
Pension expense related to previously disposed of gas distribution business2c
|
866 | - | - | 866 | ||||
Merger related costs2d
|
134 | (22) | 1,650 | 1,762 | ||||
Sale of NMRD3
|
- | - | 15,097 | 15,097 | ||||
Total adjustments before income tax effects | (953) | (22) | 16,747 | 15,772 | ||||
Income tax impact of above adjustments1
|
243 | 4 | (4,254) | (4,007) | ||||
Sale of NMRD3
|
- | - | (15,712) | (15,712) | ||||
Total income tax impacts4
|
243 | 4 | (19,966) | (19,719) | ||||
Adjusting items, net of income taxes | (710) | (18) | (3,219) | (3,947) | ||||
Ongoing Earnings (Loss) | $ | 71,997 | $ | 44,490 | $ | (25,195) | $ | 91,292 |
1 Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments
|
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2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statements of Earnings as follows:
|
||||||||
a Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements
|
||||||||
b Decrease in "Electric Operating Revenue" of $0.2 million for the three and six months ended June 30, 2024 and an increase in "Regulatory disallowances" of zero and $4.5 million for the three and six months ended June 30, 2024
|
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c Increases in "Other (deductions)"
|
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d Increases (decreases) in "Administrative and general"
|
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3 Net gain of $4.4 million on the sale of NMRD: Increase in "Other (deductions)" of $15.1 million, decrease in "Income Taxes (Benefits)" of $3.8 million for federal income tax and a decrease in "Income Taxes (Benefits)" of $15.7 million for investment tax credits
|
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4 Increases (decreases) in "Income Taxes (Benefits)"
|
||||||||
5 Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average expected statutory tax rate of 23.4% for PNMR, and the GAAP anticipated effective tax rates of 14.3% for PNM, 20.7% for TNMP, and 15.3% for PNMR, which have reversed
|
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||
(in thousands) | ||||||||
Three Months Ended June 30, 2023 | ||||||||
GAAP Net Earnings (Loss) Attributable to PNMR
|
$ | 31,184 | $ | 24,632 | $ | (10,512) | $ | 45,304 |
Adjusting items before income tax effects:
|
||||||||
Net change in unrealized (gains) and losses on investment securities2a
|
(2,504) | - | - | (2,504) | ||||
Regulatory disallowances2b
|
3,731 | - | - | 3,731 | ||||
Pension expense related to previously disposed of gas distribution business2c
|
679 | - | - | 679 | ||||
Merger related costs2d
|
15 | 2 | 233 | 250 | ||||
Total adjustments before income tax effects | 1,921 | 2 | 233 | 2,156 | ||||
Income tax impact of above adjustments1
|
(488) | - | (59) | (547) | ||||
Income tax impact of non-deductible merger related costs3
|
4 | - | 31 | 35 | ||||
Timing of statutory and effective tax rates on non-recurring items4
|
275 | 221 | (2) | 494 | ||||
Total income tax impacts5
|
(209) | 221 | (30) | (18) | ||||
Adjusting items, net of income taxes | 1,712 | 223 | 203 | 2,138 | ||||
Ongoing Earnings (Loss) | $ | 32,896 | $ | 24,855 | $ | (10,309) | $ | 47,442 |
Six Months Ended June 30, 2023 | ||||||||
GAAP Net Earnings (Loss) Attributable to PNMR
|
$ | 85,760 | $ | 34,665 | $ | (20,107) | $ | 100,318 |
Adjusting items before income tax effects:
|
||||||||
Net change in unrealized (gains) and losses on investment securities2a
|
(11,989) | - | - | (11,989) | ||||
Regulatory disallowances2b
|
3,731 | - | - | 3,731 | ||||
Pension expense related to previously disposed of gas distribution business2c
|
1,358 | - | - | 1,358 | ||||
Merger related costs2d
|
27 | 2 | 519 | 548 | ||||
Total adjustments before income tax effects | (6,873) | 2 | 519 | (6,352) | ||||
Income tax impact of above adjustments1
|
1,746 | - | (132) | 1,614 | ||||
Income tax impact of non-deductible merger related costs3
|
5 | - | 85 | 90 | ||||
Timing of statutory and effective tax rates on non-recurring items4
|
(452) | 157 | (285) | (580) | ||||
Total income tax impacts5
|
1,299 | 157 | (332) | 1,124 | ||||
Adjusting items, net of income taxes | (5,574) | 159 | 187 | (5,228) | ||||
Ongoing Earnings (Loss) | $ | 80,186 | $ | 34,824 | $ | (19,920) | $ | 95,090 |
1Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments
|
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2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statement of Earnings as follows:
|
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a Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements
|
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b Decreases in "Regulatory disallowances"
|
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c Increases in "Other (deductions)"
|
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d Increases in "Administrative and general"
|
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3 Increases (decreases) in "Income Tax Expense"
|
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4 Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average expected statutory tax rate of 23.8% for PNMR, and the GAAP anticipated effective tax rates of 18.7% for PNM, 14.7% for TNMP, and 15.7% for PNMR, which will reverse by year end
|
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5 Income tax impacts reflected in "Income Taxes"
|
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||
(per diluted share) | ||||||||
Three Months Ended June 30, 2024 | ||||||||
GAAP Net Earnings (Loss) Attributable to PNMR
|
$ | 0.34 | $ | 0.33 | $ | (0.14) | $ | 0.53 |
Adjusting items, net of income tax effects:
|
||||||||
Net change in unrealized (gains) and losses on investment securities | 0.05 | - | - | 0.05 | ||||
Merger related costs | - | - | 0.01 | 0.01 | ||||
Timing of statutory and effective tax rates on non-recurring items | 0.02 | - | (0.01) | 0.01 | ||||
Total Adjustments | 0.07 | - | - | 0.07 | ||||
Ongoing Earnings (Loss) | $ | 0.41 | $ | 0.33 | $ | (0.14) | $ | 0.60 |
Average Diluted Shares Outstanding: 90,552,082 | ||||||||
Six Months Ended June 30, 2024 | ||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 0.80 | $ | 0.49 | $ | (0.24) | $ | 1.05 |
Adjusting items, net of income tax effects:
|
||||||||
Net change in unrealized (gains) and losses on investment securities | (0.05) | - | - | (0.05) | ||||
Sale of NMRD | - | - | (0.05) | (0.05) | ||||
Regulatory disallowances | 0.04 | - | - | 0.04 | ||||
Pension expense related to previously disposed of gas distribution business
|
0.01 | - | - | 0.01 | ||||
Merger related costs | - | - | 0.01 | 0.01 | ||||
Total Adjustments | - | - | (0.04) | (0.04) | ||||
Ongoing Earnings (Loss) | $ | 0.80 | $ | 0.49 | $ | (0.28) | $ | 1.01 |
Average Diluted Shares Outstanding: 90,532,986 |
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||
(per diluted share) | ||||||||
Three Months Ended June 30, 2023 | ||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 0.36 | $ | 0.29 | $ | (0.12) | $ | 0.53 |
Adjusting items, net of income tax effects:
|
||||||||
Net change in unrealized (gains) and losses on investment securities | (0.02) | - | - | (0.02) | ||||
Regulatory disallowances | 0.03 | - | - | 0.03 | ||||
Pension expense related to previously disposed of gas distribution business | 0.01 | - | - | 0.01 | ||||
Total Adjustments | 0.02 | - | - | 0.02 | ||||
Ongoing Earnings (Loss) | $ | 0.38 | $ | 0.29 | $ | (0.12) | $ | 0.55 |
Average Diluted Shares Outstanding: 86,129,124 | ||||||||
Six Months Ended June 30, 2023 | ||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 1.00 | $ | 0.40 | $ | (0.24) | $ | 1.16 |
Adjusting items, net of income tax effects:
|
||||||||
Net change in unrealized (gains) and losses on investment securities | (0.10) | - | - | (0.10) | ||||
Regulatory disallowances | 0.03 | - | - | 0.03 | ||||
Pension expense related to previously disposed of gas distribution business | 0.01 | - | - | 0.01 | ||||
Merger related costs | - | - | 0.01 | 0.01 | ||||
Timing of statutory and effective tax rates on non-recurring items | (0.01) | - | - | (0.01) | ||||
Total Adjustments | (0.07) | - | 0.01 | (0.06) | ||||
Ongoing Earnings (Loss) | $ | 0.93 | $ | 0.40 | $ | (0.23) | $ | 1.10 |
Average Diluted Shares Outstanding: 86,133,091 | ||||||||
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 |