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) | ||||||||
(November 4, 2022) |
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. | |||||
TEXAS-NEW MEXICO POWER COMPANY | |||||
(Registrants) | |||||
Date: November 4, 2022 | /s/ Henry E. Monroy | ||||
Henry E. Monroy | |||||
Vice President and Corporate Controller | |||||
(Officer duly authorized to sign this report) |
PUBLIC SERVICE COMPANY OF NEW MEXICO | |||||
(Registrant) | |||||
Date: November 4, 2022 | /s/ Henry E. Monroy | ||||
Henry E. Monroy | |||||
Vice President, Regulatory and Corporate Controller | |||||
(Officer duly authorized to sign this report) |
Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | |||||||||||
GAAP net earnings attributable to PNM Resources | $122.4 | $113.3 | $153.8 | $184.6 | ||||||||||
GAAP diluted EPS | $1.42 | $1.32 | $1.78 | $2.14 | ||||||||||
Ongoing net earnings | $126.1 | $118.0 | $218.9 | $193.3 | ||||||||||
Ongoing diluted EPS | $1.46 | $1.37 | $2.54 | $2.25 |
GAAP Diluted EPS | Ongoing Diluted EPS | ||||||||||||||||
Q3 2022 | Q3 2021 | Q3 2022 | Q3 2021 | ||||||||||||||
PNM | $1.13 | $1.01 | $1.17 | $1.05 | |||||||||||||
TNMP | $0.36 | $0.33 | $0.36 | $0.33 | |||||||||||||
Corporate and Other | ($0.07) | ($0.02) | ($0.07) | ($0.01) | |||||||||||||
Consolidated PNM Resources | $1.42 | $1.32 | $1.46 | $1.37 |
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 97,468 | $ | 31,431 | $ | (6,466) | $ | 122,433 | ||||||||||||||||||
Adjusting items before income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities2a | 11,194 | — | — | 11,194 | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs2b | 625 | — | — | 625 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c | 614 | — | — | 614 | ||||||||||||||||||||||
Merger related costs2d | 17 | 1 | 337 | 355 | ||||||||||||||||||||||
Total adjustments before income tax effects | 12,450 | 1 | 337 | 12,788 | ||||||||||||||||||||||
Income tax impact of above adjustments1 | (3,162) | — | (86) | (3,248) | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 | 262 | (125) | 7 | 144 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items4 | (5,933) | (51) | 12 | (5,972) | ||||||||||||||||||||||
Total income tax impacts5 | (8,833) | (176) | (67) | (9,076) | ||||||||||||||||||||||
Adjusting items, net of income taxes | 3,617 | (175) | 270 | 3,712 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 101,085 | $ | 31,256 | $ | (6,196) | $ | 126,145 | ||||||||||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 95,562 | $ | 72,542 | $ | (14,319) | $ | 153,785 | ||||||||||||||||||
Adjusting items before income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities2a | 81,084 | — | — | 81,084 | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs2b | 2,025 | — | — | 2,025 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c | 1,842 | — | — | 1,842 | ||||||||||||||||||||||
Merger related costs2d | 67 | 4 | 1,569 | 1,640 | ||||||||||||||||||||||
Total adjustments before income tax effects | 85,018 | 4 | 1,569 | 86,591 | ||||||||||||||||||||||
Income tax impact of above adjustments1 | (21,595) | (1) | (398) | (21,994) | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 | 252 | 156 | 42 | 450 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items4 | 41 | 144 | (149) | 36 | ||||||||||||||||||||||
Total income tax impacts5 | (21,302) | 299 | (505) | (21,508) | ||||||||||||||||||||||
Adjusting items, net of income taxes | 63,716 | 303 | 1,064 | 65,083 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 159,278 | $ | 72,845 | $ | (13,255) | $ | 218,868 | ||||||||||||||||||
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 Decreases in "Gains (losses) on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | ||||||||||||||||||||||||||
b Decrease in "Regulatory disallowances and restructuring costs" of $0.6 million for the three months ended September 30, 2022, an increase in "Regulatory disallowances and restructuring costs" of $0.8 million for the nine months ended September 30, 2022 and a decrease in "Electric Operating Revenues" of $1.2 million for the three and nine months ended September 30, 2022 | ||||||||||||||||||||||||||
c Increases in "Other (deductions)" | ||||||||||||||||||||||||||
d Increases in "Administrative and general" | ||||||||||||||||||||||||||
3 Increases (decreases) in "Income Taxes" | ||||||||||||||||||||||||||
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 23.1% for PNMR, and the GAAP anticipated effective tax rates of 11.0% for PNM, 13.4% for TNMP, and 10.1% 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 September 30, 2021 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 86,915 | $ | 27,942 | $ | (1,536) | $ | 113,321 | ||||||||||||||||||
Adjusting items before income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities2a | 2,512 | — | — | 2,512 | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs2b | 436 | — | — | 436 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c | 849 | — | — | 849 | ||||||||||||||||||||||
Merger related costs2d | 204 | 5 | 1,364 | 1,573 | ||||||||||||||||||||||
Total adjustments before income tax effects | 4,001 | 5 | 1,364 | 5,370 | ||||||||||||||||||||||
Income tax impact of above adjustments1 | (1,016) | (1) | (346) | (1,363) | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 | 12 | 1 | 130 | 143 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items4 | 317 | 226 | (14) | 529 | ||||||||||||||||||||||
Total income tax impacts5 | (687) | 226 | (230) | (691) | ||||||||||||||||||||||
Adjusting items, net of income taxes | 3,314 | 231 | 1,134 | 4,679 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 90,229 | $ | 28,173 | $ | (402) | $ | 118,000 | ||||||||||||||||||
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 146,804 | $ | 52,326 | $ | (14,521) | $ | 184,609 | ||||||||||||||||||
Adjusting items before income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities2a | (3,594) | — | — | (3,594) | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs2b | 436 | — | — | 436 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c | 2,547 | — | — | 2,547 | ||||||||||||||||||||||
Merger related costs2d | 562 | 433 | 9,743 | 10,738 | ||||||||||||||||||||||
Total adjustments before income tax effects | (49) | 433 | 9,743 | 10,127 | ||||||||||||||||||||||
Income tax impact of above adjustments1 | 12 | (91) | (2,475) | (2,554) | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 | 24 | 36 | 835 | 895 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items4 | — | 128 | 135 | 263 | ||||||||||||||||||||||
Total income tax impacts5 | 36 | 73 | (1,505) | (1,396) | ||||||||||||||||||||||
Adjusting items, net of income taxes | (13) | 506 | 8,238 | 8,731 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 146,791 | $ | 52,832 | $ | (6,283) | $ | 193,340 | ||||||||||||||||||
1Tax 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 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 in "Regulatory disallowances and restructuring costs" | ||||||||||||||||||||||||||
c Increases in "Other (deductions)" | ||||||||||||||||||||||||||
d Increases in "Administrative and general" | ||||||||||||||||||||||||||
3 Increase in "Income Tax Expense" | ||||||||||||||||||||||||||
4 Income tax timing impacts resulting from differences between the statutory tax rates of 25.4% for PNM, 21.0% for TNMP and the average expected statutory tax rate of 24.2% for PNMR, and the GAAP anticipated effective tax rates of 15.4% for PNM, 11.1% for TNMP, and 13.1% for PNMR, which will reverse by year end | ||||||||||||||||||||||||||
5 Income tax impacts reflected in "Income Taxes" |
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||
(per diluted share) | ||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 1.13 | $ | 0.36 | $ | (0.07) | $ | 1.42 | ||||||||||||||||||
Adjusting items, net of income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities | 0.10 | — | — | 0.10 | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs | 0.01 | — | — | 0.01 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items | (0.07) | — | — | (0.07) | ||||||||||||||||||||||
Total Adjustments | 0.04 | — | — | 0.04 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 1.17 | $ | 0.36 | $ | (0.07) | $ | 1.46 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,135,756 | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 1.11 | $ | 0.84 | $ | (0.17) | $ | 1.78 | ||||||||||||||||||
Adjusting items, net of income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities | 0.70 | — | — | 0.70 | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs | 0.02 | — | — | 0.02 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business | 0.02 | — | — | 0.02 | ||||||||||||||||||||||
Merger related costs | — | — | 0.02 | 0.02 | ||||||||||||||||||||||
Total Adjustments | 0.74 | — | 0.02 | 0.76 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 1.85 | $ | 0.84 | $ | (0.15) | $ | 2.54 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,177,523 | ||||||||||||||||||||||||||
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||
(per diluted share) | ||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 1.01 | $ | 0.33 | $ | (0.02) | $ | 1.32 | ||||||||||||||||||
Adjusting items, net of income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities | 0.02 | — | — | 0.02 | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs | 0.01 | — | — | 0.01 | ||||||||||||||||||||||
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 | — | 0.01 | 0.05 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 1.05 | $ | 0.33 | $ | (0.01) | $ | 1.37 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,112,742 | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 1.70 | $ | 0.61 | $ | (0.17) | $ | 2.14 | ||||||||||||||||||
Adjusting items, net of income tax effects: | ||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities | (0.03) | — | — | (0.03) | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs | 0.01 | — | — | 0.01 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business | 0.02 | — | — | 0.02 | ||||||||||||||||||||||
Merger related costs | — | 0.01 | 0.10 | 0.11 | ||||||||||||||||||||||
Total Adjustments | — | 0.01 | 0.10 | 0.11 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 1.70 | $ | 0.62 | $ | (0.07) | $ | 2.25 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,105,871 | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||
Electric Operating Revenues: | |||||||||||||||||||||||
Contracts with customers | $ | 531,966 | $ | 481,881 | $ | 1,320,779 | $ | 1,197,359 | |||||||||||||||
Alternative revenue programs | (11,643) | (9,483) | (14,569) | (3,156) | |||||||||||||||||||
Other electric operating revenue | 209,565 | 82,153 | 367,526 | 151,595 | |||||||||||||||||||
Total electric operating revenues | 729,888 | 554,551 | 1,673,736 | 1,345,798 | |||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||
Cost of energy | 334,339 | 199,380 | 698,349 | 467,452 | |||||||||||||||||||
Administrative and general | 58,125 | 56,520 | 165,328 | 168,458 | |||||||||||||||||||
Energy production costs | 34,469 | 32,374 | 110,534 | 106,709 | |||||||||||||||||||
Regulatory disallowances and restructuring costs | (567) | 436 | 832 | 436 | |||||||||||||||||||
Depreciation and amortization | 76,570 | 71,438 | 229,103 | 212,039 | |||||||||||||||||||
Transmission and distribution costs | 21,538 | 19,996 | 61,160 | 56,166 | |||||||||||||||||||
Taxes other than income taxes | 22,651 | 22,678 | 71,207 | 65,440 | |||||||||||||||||||
Total operating expenses | 547,125 | 402,822 | 1,336,513 | 1,076,700 | |||||||||||||||||||
Operating income | 182,763 | 151,729 | 337,223 | 269,098 | |||||||||||||||||||
Other Income and Deductions: | |||||||||||||||||||||||
Interest income | 3,969 | 3,329 | 11,588 | 10,466 | |||||||||||||||||||
Gains (losses) on investment securities | (15,736) | 1,948 | (84,104) | 16,108 | |||||||||||||||||||
Other income | 5,364 | 5,686 | 14,845 | 14,592 | |||||||||||||||||||
Other (deductions) | (1,647) | (5,098) | (7,529) | (13,836) | |||||||||||||||||||
Net other income and deductions | (8,050) | 5,865 | (65,200) | 27,330 | |||||||||||||||||||
Interest Charges | 34,526 | 23,244 | 89,963 | 73,247 | |||||||||||||||||||
Earnings before Income Taxes | 140,187 | 134,350 | 182,060 | 223,181 | |||||||||||||||||||
Income Taxes | 13,450 | 16,668 | 16,982 | 26,533 | |||||||||||||||||||
Net Earnings | 126,737 | 117,682 | 165,078 | 196,648 | |||||||||||||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (4,172) | (4,229) | (10,897) | (11,643) | |||||||||||||||||||
Preferred Stock Dividend Requirements of Subsidiary | (132) | (132) | (396) | (396) | |||||||||||||||||||
Net Earnings Attributable to PNMR | $ | 122,433 | $ | 113,321 | $ | 153,785 | $ | 184,609 | |||||||||||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||||||||||||
Basic | $ | 1.42 | $ | 1.32 | $ | 1.79 | $ | 2.14 | |||||||||||||||
Diluted | $ | 1.42 | $ | 1.32 | $ | 1.78 | $ | 2.14 | |||||||||||||||
Dividends Declared per Common Share | $ | 0.3475 | $ | 0.3275 | $ | 1.0425 | $ | 0.9825 |
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