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) | ||||||||
(February 6, 2024) |
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: February 6, 2024 | /s/ Gerald R. Bischoff | ||||
Gerald R. Bischoff | |||||
Vice President and Corporate Controller | |||||
(Officer duly authorized to sign this report) |
2023 | 2022 | |||||||
GAAP net earnings attributable to PNM Resources | $87.8 | $169.5 | ||||||
GAAP diluted EPS | $1.02 | $1.97 | ||||||
Ongoing net earnings | $243.5 | $231.5 | ||||||
Ongoing diluted EPS | $2.82 | $2.69 |
GAAP Diluted EPS | Ongoing Diluted EPS | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
PNM | $0.41 | $1.20 | $2.22 | $1.90 | |||||||||||||
TNMP | $1.10 | $1.07 | $1.11 | $1.07 | |||||||||||||
Corporate and Other | ($0.49) | ($0.3) | ($0.51) | ($0.28) | |||||||||||||
Consolidated PNM Resources | $1.02 | $1.97 | $2.82 | $2.69 |
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Quarter Ended December 31, 2023 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | (58,179) | $ | 20,768 | $ | (12,815) | $ | (50,226) | ||||||||||||||||||
Adjusting items before income tax effects | ||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities2a | (26,840) | — | — | (26,840) | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs2b | 117,238 | 1,173 | — | 118,411 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c | 678 | — | — | 678 | ||||||||||||||||||||||
Merger related costs2d | 671 | 301 | 302 | 1,274 | ||||||||||||||||||||||
Total adjustments before income tax effects | 91,747 | 1,474 | 302 | 93,523 | ||||||||||||||||||||||
Income tax impact of above adjustments1 | (23,304) | (310) | (76) | (23,690) | ||||||||||||||||||||||
SJGS retirement income tax adjustments3 | (1,199) | — | — | (1,199) | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 | (46) | 3 | (2,428) | (2,471) | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items4 | (240) | (51) | (144) | (435) | ||||||||||||||||||||||
Total income tax impacts5 | (24,789) | (358) | (2,648) | (27,795) | ||||||||||||||||||||||
Adjusting items, net of income taxes | 66,958 | 1,116 | (2,346) | 65,728 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 8,779 | $ | 21,884 | $ | (15,161) | $ | 15,502 | ||||||||||||||||||
Year Ended December 31, 2023 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 35,657 | $ | 94,937 | $ | (42,776) | $ | 87,818 | ||||||||||||||||||
Adjusting items before income tax effects | ||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities2a | (33,278) | — | — | (33,278) | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs2b | 240,840 | 1,173 | — | 242,013 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c | 2,716 | — | — | 2,716 | ||||||||||||||||||||||
Merger related costs2d | 730 | 303 | 953 | 1,986 | ||||||||||||||||||||||
Total adjustments before income tax effects | 211,008 | 1,476 | 953 | 213,437 | ||||||||||||||||||||||
Income tax impact of above adjustments1 | (53,596) | (310) | (242) | (54,148) | ||||||||||||||||||||||
SJGS retirement income tax adjustments3 | (1,199) | — | — | (1,199) | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 | (40) | 3 | (2,334) | (2,371) | ||||||||||||||||||||||
Total income tax impacts5 | (54,835) | (307) | (2,576) | (57,718) | ||||||||||||||||||||||
Adjusting items, net of income taxes | 156,173 | 1,169 | (1,623) | 155,719 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 191,830 | $ | 96,106 | $ | (44,399) | $ | 243,537 | ||||||||||||||||||
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 Consolidated Statement of Earnings as follows: | ||||||||||||||||||||||||||
a Changes in "Gains (losses) on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | ||||||||||||||||||||||||||
b Decreases in "Electric operating revenues" of $52.2 million and $169.8 million for the three and twelve months ended December 31, 2023, increases in "Regulatory disallowances and restructuring costs" of $65.9 million and $71.9 million for the three and twelve months ended December 31, 2023, and increases in "Interest charges" of $0.3 million for the three and twelve months ended December 31, 2023 | ||||||||||||||||||||||||||
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 23.7% for PNMR, and the GAAP anticipated effective tax rates of 18.6% for PNM, 15.0% for TNMP, and 15.6% for PNMR, which reversed by year end | ||||||||||||||||||||||||||
5 Income tax impacts reflected in "Income Taxes" |
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Quarter Ended December 31, 2022 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 7,808 | $ | 19,725 | $ | (11,788) | $ | 15,745 | ||||||||||||||||||
Adjusting items before income tax effects | ||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities2a | (17,279) | — | — | (17,279) | ||||||||||||||||||||||
FERC ordered time-value refunds2b | 8,057 | — | — | 8,057 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2d | 614 | — | — | 614 | ||||||||||||||||||||||
Merger related costs2e | 14 | 2 | 194 | 210 | ||||||||||||||||||||||
Total adjustments before income tax effects | (8,594) | 2 | 194 | (8,398) | ||||||||||||||||||||||
Income tax impact of above adjustments1 | 2,183 | (1) | (49) | 2,133 | ||||||||||||||||||||||
SJGS retirement income tax adjustments3 | 3,525 | — | — | 3,525 | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 | (239) | (154) | 33 | (360) | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items4 | (41) | (144) | 149 | (36) | ||||||||||||||||||||||
Total income tax impacts5 | 5,428 | (299) | 133 | 5,262 | ||||||||||||||||||||||
Adjusting items, net of income taxes | (3,166) | (297) | 327 | (3,136) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 4,642 | $ | 19,428 | $ | (11,461) | $ | 12,609 | ||||||||||||||||||
Year Ended December 31, 2022 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 103,370 | $ | 92,267 | $ | (26,107) | $ | 169,530 | ||||||||||||||||||
Adjusting items before income tax effects | ||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities2a | 63,805 | — | — | 63,805 | ||||||||||||||||||||||
FERC ordered time-value refunds2b | 8,057 | — | — | 8,057 | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs2c | 2,025 | — | — | 2,025 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2d | 2,456 | — | — | 2,456 | ||||||||||||||||||||||
Merger related costs2e | 81 | 6 | 1,763 | 1,850 | ||||||||||||||||||||||
Total adjustments before income tax effects | 76,424 | 6 | 1,763 | 78,193 | ||||||||||||||||||||||
Income tax impacts of above adjustments1 | (19,412) | (2) | (447) | (19,861) | ||||||||||||||||||||||
SJGS retirement income tax adjustments3 | 3,525 | — | — | 3,525 | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 | 13 | 2 | 75 | 90 | ||||||||||||||||||||||
Total income tax impacts4 | (15,874) | — | (372) | (16,246) | ||||||||||||||||||||||
Adjusting items, net of income taxes | 60,550 | 6 | 1,391 | 61,947 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 163,920 | $ | 92,273 | $ | (24,716) | $ | 231,477 | ||||||||||||||||||
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 Consolidated Statement of Earnings as follows: | ||||||||||||||||||||||||||
a Changes in "Gains (losses) on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | ||||||||||||||||||||||||||
b Decrease in "Electric operating revenues" | ||||||||||||||||||||||||||
c Increase in "Regulatory disallowances and restructuring costs" | ||||||||||||||||||||||||||
d Increases in "Other (deductions)" | ||||||||||||||||||||||||||
e 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 23.0% for PNMR, and the GAAP anticipated effective tax rates of 11.0% for PNM, 13.4% for TNMP, and 10.1% for PNMR, which reversed by year end. | ||||||||||||||||||||||||||
5 Income tax impacts reflected in "Income Taxes" |
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||||||||||||
(per diluted share) | ||||||||||||||||||||||||||
Quarter Ended December 31, 2023 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | (0.67) | $ | 0.24 | $ | (0.15) | $ | (0.58) | ||||||||||||||||||
Adjusting items, net of income tax effects | ||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities | (0.23) | — | — | (0.23) | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs | 1.01 | 0.01 | — | 1.02 | ||||||||||||||||||||||
Merger related costs | — | — | (0.02) | (0.02) | ||||||||||||||||||||||
SJGS retirement income tax adjustments | (0.01) | — | — | (0.01) | ||||||||||||||||||||||
Total Adjustments | 0.77 | 0.01 | (0.02) | 0.76 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.10 | $ | 0.25 | $ | (0.17) | $ | 0.18 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,932,542 | ||||||||||||||||||||||||||
Year Ended December 31, 2023 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.41 | $ | 1.10 | $ | (0.49) | $ | 1.02 | ||||||||||||||||||
Adjusting items, net of income tax effects | ||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities | (0.29) | — | — | (0.29) | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs | 2.08 | 0.01 | — | 2.09 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business | 0.02 | — | — | 0.02 | ||||||||||||||||||||||
Merger related costs | 0.01 | — | (0.02) | (0.01) | ||||||||||||||||||||||
SJGS retirement income tax adjustments | (0.01) | — | — | (0.01) | ||||||||||||||||||||||
Total Adjustments | 1.81 | 0.01 | (0.02) | 1.80 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 2.22 | $ | 1.11 | $ | (0.51) | $ | 2.82 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,368,999 |
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||||||||||||
(per diluted share) | ||||||||||||||||||||||||||
Quarter Ended December 31, 2022 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.09 | $ | 0.23 | $ | (0.14) | $ | 0.18 | ||||||||||||||||||
Adjusting items, net of income tax effects | ||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities | (0.15) | — | — | (0.15) | ||||||||||||||||||||||
FERC ordered time-value refunds | 0.07 | — | — | 0.07 | ||||||||||||||||||||||
Merger related costs | — | — | 0.01 | 0.01 | ||||||||||||||||||||||
SJGS retirement income tax adjustments | 0.04 | — | — | 0.04 | ||||||||||||||||||||||
Total Adjustments | (0.04) | — | 0.01 | (0.03) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.05 | $ | 0.23 | $ | (0.13) | $ | 0.15 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,142,434 | ||||||||||||||||||||||||||
Year Ended December 31, 2022 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 1.20 | $ | 1.07 | $ | (0.30) | $ | 1.97 | ||||||||||||||||||
Adjusting items, net of income tax effects | ||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities | 0.55 | — | — | 0.55 | ||||||||||||||||||||||
FERC ordered time-value refunds | 0.07 | — | — | 0.07 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||
SJGS retirement income tax adjustments | 0.04 | — | — | 0.04 | ||||||||||||||||||||||
Total Adjustments | 0.70 | — | 0.02 | 0.72 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 1.90 | $ | 1.07 | $ | (0.28) | $ | 2.69 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,168,751 |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
Electric Operating Revenues | $ | 1,939,198 | $ | 2,249,555 | $ | 1,779,873 | |||||||||||
Operating Expenses: | |||||||||||||||||
Cost of energy | 802,261 | 987,941 | 644,853 | ||||||||||||||
Administrative and general | 227,900 | 227,149 | 230,292 | ||||||||||||||
Energy production costs | 91,610 | 147,347 | 143,931 | ||||||||||||||
Regulatory disallowances and restructuring costs | 71,923 | 832 | 1,194 | ||||||||||||||
Depreciation and amortization | 319,503 | 304,853 | 284,107 | ||||||||||||||
Transmission and distribution costs | 98,721 | 94,684 | 81,335 | ||||||||||||||
Taxes other than income taxes | 95,940 | 92,989 | 86,008 | ||||||||||||||
Total operating expenses | 1,707,858 | 1,855,795 | 1,471,720 | ||||||||||||||
Operating income | 231,340 | 393,760 | 308,153 | ||||||||||||||
Other Income and Deductions: | |||||||||||||||||
Interest income | 21,963 | 16,095 | 14,662 | ||||||||||||||
Gains (losses) on investment securities | 19,246 | (78,357) | 16,850 | ||||||||||||||
Other income | 24,204 | 21,601 | 20,200 | ||||||||||||||
Other (deductions) | (15,869) | (13,881) | (18,559) | ||||||||||||||
Net other income and (deductions) | 49,544 | (54,542) | 33,153 | ||||||||||||||
Interest Charges | 190,355 | 127,908 | 96,877 | ||||||||||||||
Earnings before Income Taxes | 90,529 | 211,310 | 244,429 | ||||||||||||||
Income Taxes (Benefits) | (16,350) | 26,130 | 32,582 | ||||||||||||||
Net Earnings | 106,879 | 185,180 | 211,847 | ||||||||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (18,533) | (15,122) | (15,490) | ||||||||||||||
Preferred Stock Dividend Requirements of Subsidiary | (528) | (528) | (528) | ||||||||||||||
Net Earnings Attributable to PNMR | $ | 87,818 | $ | 169,530 | $ | 195,829 | |||||||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||||||
Basic | $ | 1.02 | $ | 1.97 | $ | 2.28 | |||||||||||
Diluted | $ | 1.02 | $ | 1.97 | $ | 2.27 | |||||||||||
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