UNITED STATES | |||||
SECURITIES AND EXCHANGE COMMISSION | |||||
Washington, D.C. 20549 | |||||
FORM | |||||
CURRENT REPORT | |||||
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 | |||||
Date of Report (Date of earliest event reported) | ||||||||
(July 30, 2021) |
Name of Registrant, State of Incorporation, Address Of Principal Executive Offices, Telephone Number, Commission File No., IRS Employer Identification No. |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 40.14d-2(b)) | |||||||||||
Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 40.13e-4(c)) |
Registrant | Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||||
PNM Resources, Inc. |
PNM RESOURCES, INC. | |||||
PUBLIC SERVICE COMPANY OF NEW MEXICO | |||||
TEXAS-NEW MEXICO POWER COMPANY | |||||
(Registrants) | |||||
Date: July 30, 2021 | /s/ Henry E. Monroy | ||||
Henry E. Monroy | |||||
Vice President and Corporate Controller | |||||
(Officer duly authorized to sign this report) |
Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | |||||||||||
GAAP net earnings attributable to PNM Resources | $53.7 | $57.5 | $71.3 | $42.2 | ||||||||||
GAAP diluted EPS | $0.62 | $0.72 | $0.83 | $0.53 | ||||||||||
Ongoing net earnings | $47.5 | $44.1 | $75.3 | $58.3 | ||||||||||
Ongoing diluted EPS | $0.55 | $0.55 | $0.88 | $0.73 |
GAAP Diluted EPS | Ongoing Diluted EPS | ||||||||||||||||
Q2 2021 | Q2 2020 | Q2 2021 | Q2 2020 | ||||||||||||||
PNM | $0.48 | $0.57 | $0.39 | $0.39 | |||||||||||||
TNMP | $0.18 | $0.20 | $0.18 | $0.20 | |||||||||||||
Corporate and Other | ($0.04) | ($0.05) | ($0.02) | ($0.04) | |||||||||||||
Consolidated PNM Resources | $0.62 | $0.72 | $0.55 | $0.55 |
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 41,352 | $ | 15,650 | $ | (3,293) | $ | 53,709 | ||||||||||||||||||
Adjusting items before income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities2a | (10,386) | — | — | (10,386) | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2b | 849 | — | — | 849 | ||||||||||||||||||||||
Merger related costs2c | 154 | 212 | 1,710 | 2,076 | ||||||||||||||||||||||
Total adjustments before income tax effects | (9,383) | 212 | 1,710 | (7,461) | ||||||||||||||||||||||
Income tax impact of above adjustments1 | 2,383 | (45) | (434) | 1,904 | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 | 11 | 13 | 165 | 189 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items4 | (751) | (98) | 54 | (795) | ||||||||||||||||||||||
Total income tax impacts5 | 1,643 | (130) | (215) | 1,298 | ||||||||||||||||||||||
Adjusting items, net of income taxes | (7,740) | 82 | 1,495 | (6,163) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 33,612 | $ | 15,732 | $ | (1,798) | $ | 47,546 | ||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 59,888 | $ | 24,385 | $ | (12,985) | $ | 71,288 | ||||||||||||||||||
Adjusting items before income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities2a | (6,105) | — | — | (6,105) | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2b | 1,698 | — | — | 1,698 | ||||||||||||||||||||||
Merger related costs2c | 358 | 428 | 8,380 | 9,166 | ||||||||||||||||||||||
Total adjustments before income tax effects | (4,049) | 428 | 8,380 | 4,759 | ||||||||||||||||||||||
Income tax impact of above adjustments1 | 1,029 | (90) | (2,128) | (1,189) | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 | 11 | 35 | 705 | 751 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items4 | (317) | (98) | 148 | (267) | ||||||||||||||||||||||
Total income tax impacts5 | 723 | (153) | (1,275) | (705) | ||||||||||||||||||||||
Adjusting items, net of income taxes | (3,326) | 275 | 7,105 | 4,054 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 56,562 | $ | 24,660 | $ | (5,880) | $ | 75,342 | ||||||||||||||||||
1 Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments | ||||||||||||||||||||||||||
2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statements of Earnings as follows: | ||||||||||||||||||||||||||
a (Increases) in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | ||||||||||||||||||||||||||
b Increases in "Other (deductions)" | ||||||||||||||||||||||||||
c Increases in "Administrative and general" | ||||||||||||||||||||||||||
3 Increases in "Income Tax Expense" | ||||||||||||||||||||||||||
4 Income tax timing impacts resulting from differences between the statutory tax rates of 25.4% for PNM, 21% for TNMP and the average expected statutory tax rate of 24.0% for PNMR, and the GAAP anticipated effective tax rates of 15.8% for PNM, 10.6% for TNMP, and 13.4% for PNMR, which will reverse by year end | ||||||||||||||||||||||||||
5 Income tax impacts reflected in "Income Taxes" | ||||||||||||||||||||||||||
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 45,540 | $ | 16,174 | $ | (4,225) | $ | 57,489 | ||||||||||||||||||
Adjusting items before income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities2a | (17,359) | — | — | (17,359) | ||||||||||||||||||||||
Regulatory disallowances2b | 1,911 | — | — | 1,911 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c | 1,131 | — | — | 1,131 | ||||||||||||||||||||||
Costs to review strategic growth opportunities2d | — | — | 1,233 | 1,233 | ||||||||||||||||||||||
Total adjustments before income tax effects | (14,317) | — | 1,233 | (13,084) | ||||||||||||||||||||||
Income tax impact of above adjustments1 | 3,637 | — | (313) | 3,324 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items3 | (3,481) | — | (103) | (3,584) | ||||||||||||||||||||||
Total income tax impacts4 | 156 | — | (416) | (260) | ||||||||||||||||||||||
Adjusting items, net of income taxes | (14,161) | — | 817 | (13,344) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 31,379 | $ | 16,174 | $ | (3,408) | $ | 44,145 | ||||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 29,483 | $ | 23,266 | $ | (10,520) | $ | 42,229 | ||||||||||||||||||
Adjusting items before income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities2a | 14,279 | — | — | 14,279 | ||||||||||||||||||||||
Regulatory disallowances2b | 1,911 | — | — | 1,911 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c | 2,262 | — | — | 2,262 | ||||||||||||||||||||||
Costs to review strategic growth opportunities2d | — | — | 1,233 | 1,233 | ||||||||||||||||||||||
Total adjustments before income tax effects | 18,452 | — | 1,233 | 19,685 | ||||||||||||||||||||||
Income tax impact of above adjustments1 | (4,687) | — | (313) | (5,000) | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items3 | 1,146 | — | 284 | 1,430 | ||||||||||||||||||||||
Total income tax impacts4 | (3,541) | — | (29) | (3,570) | ||||||||||||||||||||||
Adjusting items, net of income taxes | 14,911 | — | 1,204 | 16,115 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 44,394 | $ | 23,266 | $ | (9,316) | $ | 58,344 | ||||||||||||||||||
1Tax effects calculated using a tax rate of 25.4% | ||||||||||||||||||||||||||
2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statement of Earnings as follows: | ||||||||||||||||||||||||||
a (Increases) decreases in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | ||||||||||||||||||||||||||
b Increases of $1.9 million in "Interest Charges" and less than $0.1 million in "Other income" reflecting disallowances of previously capitalized AFUDC for certain costs included in the AFUDC computation, resulting from a FERC audit | ||||||||||||||||||||||||||
c Increases in "Other (deductions)" | ||||||||||||||||||||||||||
d Increases in "Administrative and general" | ||||||||||||||||||||||||||
3 Income tax timing impacts resulting from differences between the statutory tax rate of 25.4% for PNM and the average expected statutory tax rate of 23.9% for PNMR, and the GAAP anticipated effective tax rates of 8.7% for PNM and 6.2% for PNMR, which will reverse by year end | ||||||||||||||||||||||||||
4 Income tax impacts reflected in "Income Taxes" |
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||
(per diluted share) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 0.48 | $ | 0.18 | $ | (0.04) | $ | 0.62 | ||||||||||||||||||
Adjusting items, net of income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities | (0.09) | — | — | (0.09) | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business | 0.01 | — | — | 0.01 | ||||||||||||||||||||||
Merger related costs | — | — | 0.02 | 0.02 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items | (0.01) | — | — | (0.01) | ||||||||||||||||||||||
Total Adjustments | (0.09) | — | 0.02 | (0.07) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.39 | $ | 0.18 | $ | (0.02) | $ | 0.55 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,106,810 | ||||||||||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 0.70 | $ | 0.28 | $ | (0.15) | $ | 0.83 | ||||||||||||||||||
Adjusting items, net of income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities | (0.05) | — | — | (0.05) | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business | 0.01 | — | — | 0.01 | ||||||||||||||||||||||
Merger related costs | — | 0.01 | 0.08 | 0.09 | ||||||||||||||||||||||
Total Adjustments | (0.04) | 0.01 | 0.08 | 0.05 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.66 | $ | 0.29 | $ | (0.07) | $ | 0.88 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,102,436 | ||||||||||||||||||||||||||
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||
(per diluted share) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 0.57 | $ | 0.20 | $ | (0.05) | $ | 0.72 | ||||||||||||||||||
Adjusting items, net of income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities | (0.16) | — | — | (0.16) | ||||||||||||||||||||||
Regulatory disallowances | 0.02 | — | — | 0.02 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business | 0.01 | — | — | 0.01 | ||||||||||||||||||||||
Cost to review strategic growth opportunities | — | — | 0.01 | 0.01 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items | (0.05) | — | — | (0.05) | ||||||||||||||||||||||
Total Adjustments | (0.18) | — | 0.01 | (0.17) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.39 | $ | 0.20 | $ | (0.04) | $ | 0.55 | ||||||||||||||||||
Average Diluted Shares Outstanding: 79,875,557 | ||||||||||||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 0.37 | $ | 0.29 | $ | (0.13) | $ | 0.53 | ||||||||||||||||||
Adjusting items, net of income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities | 0.13 | — | — | 0.13 | ||||||||||||||||||||||
Regulatory disallowances | 0.02 | — | — | 0.02 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business | 0.02 | — | — | 0.02 | ||||||||||||||||||||||
Cost to review strategic growth opportunities | — | — | 0.01 | 0.01 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items | 0.02 | — | — | 0.02 | ||||||||||||||||||||||
Total Adjustments | 0.19 | — | 0.01 | 0.20 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.56 | $ | 0.29 | $ | (0.12) | $ | 0.73 | ||||||||||||||||||
Average Diluted Shares Outstanding: 79,978,535 | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||
Electric Operating Revenues: | |||||||||||||||||||||||
Contracts with customers | $ | 368,893 | $ | 343,075 | $ | 715,478 | $ | 666,057 | |||||||||||||||
Alternative revenue programs | 7,236 | 4,466 | 6,327 | 4,892 | |||||||||||||||||||
Other electric operating revenue | 50,411 | 10,108 | 69,442 | 20,322 | |||||||||||||||||||
Total electric operating revenues | 426,540 | 357,649 | 791,247 | 691,271 | |||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||
Cost of energy | 152,676 | 93,863 | 268,072 | 192,573 | |||||||||||||||||||
Administrative and general | 52,473 | 50,453 | 111,938 | 96,485 | |||||||||||||||||||
Energy production costs | 37,439 | 33,345 | 74,335 | 66,963 | |||||||||||||||||||
Depreciation and amortization | 70,727 | 70,022 | 140,601 | 138,995 | |||||||||||||||||||
Transmission and distribution costs | 18,853 | 18,034 | 36,170 | 35,320 | |||||||||||||||||||
Taxes other than income taxes | 20,169 | 20,782 | 42,762 | 42,047 | |||||||||||||||||||
Total operating expenses | 352,337 | 286,499 | 673,878 | 572,383 | |||||||||||||||||||
Operating income | 74,203 | 71,150 | 117,369 | 118,888 | |||||||||||||||||||
Other Income and Deductions: | |||||||||||||||||||||||
Interest income | 3,578 | 3,071 | 7,137 | 6,494 | |||||||||||||||||||
Gains (losses) on investment securities | 13,192 | 21,620 | 14,160 | (11,229) | |||||||||||||||||||
Other income | 4,654 | 4,390 | 8,906 | 6,706 | |||||||||||||||||||
Other (deductions) | (5,448) | (3,307) | (8,738) | (6,780) | |||||||||||||||||||
Net other income and deductions | 15,976 | 25,774 | 21,465 | (4,809) | |||||||||||||||||||
Interest Charges | 24,119 | 31,088 | 50,003 | 61,522 | |||||||||||||||||||
Earnings before Income Taxes | 66,060 | 65,836 | 88,831 | 52,557 | |||||||||||||||||||
Income Taxes | 8,299 | 4,275 | 9,865 | 2,395 | |||||||||||||||||||
Net Earnings | 57,761 | 61,561 | 78,966 | 50,162 | |||||||||||||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (3,920) | (3,940) | (7,414) | (7,669) | |||||||||||||||||||
Preferred Stock Dividend Requirements of Subsidiary | (132) | (132) | (264) | (264) | |||||||||||||||||||
Net Earnings Attributable to PNMR | $ | 53,709 | $ | 57,489 | $ | 71,288 | $ | 42,229 | |||||||||||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||||||||||||
Basic | $ | 0.62 | $ | 0.72 | $ | 0.83 | $ | 0.53 | |||||||||||||||
Diluted | $ | 0.62 | $ | 0.72 | $ | 0.83 | $ | 0.53 | |||||||||||||||
Dividends Declared per Common Share | $ | 0.3275 | $ | 0.3080 | $ | 0.6550 | $ | 0.6150 |
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