EX-99 3 f8k_exh992-07182001.txt EX 99.2 Exhibit 99.2 1. 2001 vs. 2000 Second Quarter Earnings Six Months Six Months Ended Ended 06/30/01 06/30/00 ---------- ---------- Reported Earnings (Diluted) $ 1.24 $ 0.45 Non-Recurring Items 0.27 0.00 Western Resources Acquisition Costs 0.06 0.00 --------------- --------------- Ongoing Earnings $ 1.57 $ 0.45 =============== =============== 2. Itemization of Second Quarter 2001 Non-Recurring Items 2Q01 Reported Earnings $ 1.24 Contribution to not-for-profit PNM Foundation 0.07 Other Income Coal mine decommissioning charges related to excluded plant at SJGS 0.20 Other Income Western Resources Acquisition Costs 0.06 Other Income ------ 2Q01 Ongoing Earnings $ 1.57 ====== 3. Year-to-date and Twelve Months-to-date Earnings Six Months Twelve Months Ended Ended 6/30/01 6/30/01 --------------- --------------- Reported Earnings (Diluted) $ 2.84 $ 4.37 Non-Recurring Items 0.27 0.23 Western Resources Acquisition Costs 0.10 0.20 --------------- -------------- Ongoing Earnings $ 3.21 $ 4.80 =============== ============== 4. Electric Sales and Revenues Three Months Three Months Ended Ended MWh Sales 6/30/01 6/30/00 % Chg ------------ ------------ ----- Total Retail 1,771,214 1,721,661 2.90% Wholesale Sales 3,151,356 2,945,660 7.00% ------------- ------------- Total Sales 4,922,570 4,667,321 5.50% ============= ============= ===== 7 5. Key Dates Jul 1 PRC approved new holding company, PNM Resources, Inc. (see Issues Update) Jul 3 PNM Annual Shareholder Meeting. Jul 25 KCC issues final order on KGE/KPL rate cases. Oct 4-6 PNM hosts meeting for analysts, investors and bankers in Albuquerque, NM. Oct 28-30 EEI Financial Conference in New Orleans. 4Q, '01 (estimated) Shareholder vote on PNM's acquisition of Western Resources. 6. Issues Update Issue Status ----- ------ New Holding Co. Order On June 29, 2001, the PRC issued a Final Order issued by PRC authorizing PNM to form a new holding company, PNM Resources, Inc. The company has some concerns over certain terms and conditions attached, and is reviewing the Order to determine how to proceed. Effect of FERC Order While we do not believe that price caps are the on PNM Wholesale answer to the energy shortage we are facing in the Power Sales West, it is still too early to fully quantify the impact of that order on PNM revenues and earnings going forward. Nonetheless, ongoing earnings for 2001 are expected to be between $4.25 and $4.50. New Long-term Power From July 1, 2001 until Dec. 31, 2006, PNM will Contract provide varying amounts of firm power (up to 114 MW) to Texas-New Mexico Power. PNM will build a new 135 MW gas-fired plant that will be operational by the fall of 2002 to help serve this load. The company plans to expand the plant to 220 MW in late 2003. Generating Resources The company's generating plants have been operating at above 84% capacity factor in 2001. Even in the event of unplanned outages, PNM is well-positioned to meet its requirements for power. 8