Segment Information (Tables)

12 Months Ended

Dec. 31, 2023

The following tables present summarized financial information for PNMR by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP.


2023	PNM		TNMP		Corporate and Other		PNMR Consolidated
	(In thousands)
Electric operating revenues	$	1,403,948	$	535,250	$	—	$	1,939,198


Cost of energy	663,614		138,647		—		802,261
Utility margin	740,334		396,603		—		1,136,937
Other operating expenses	479,525		133,443		(26,874)		586,094
Depreciation and amortization	177,633		113,142		28,728		319,503
Operating income (loss)	83,176		150,018		(1,854)		231,340
Interest income	21,355		—		608		21,963
Other income (deductions)	20,003		8,368		(790)		27,581
Interest charges	(86,574)		(46,152)		(57,629)		(190,355)
Segment earnings (loss) before income taxes	37,960		112,234		(59,665)		90,529
Income taxes (benefit)	(16,758)		17,297		(16,889)		(16,350)
Segment earnings (loss)	54,718		94,937		(42,776)		106,879
Valencia non-controlling interest	(18,533)		—		—		(18,533)
Subsidiary preferred stock dividends	(528)		—		—		(528)
Segment earnings (loss) attributable to PNMR	$	35,657	$	94,937	$	(42,776)	$	87,818


At December 31, 2023:
Total Assets	$	6,813,065	$	3,145,031	$	294,509	$	10,252,605
Goodwill	$	51,632	$	226,665	$	—	$	278,297


2022	PNM		TNMP		Corporate and Other		PNMR Consolidated
	(In thousands)
Electric operating revenues	$	1,766,825	$	482,730	$	—	$	2,249,555


Cost of energy	864,013		123,928		—		987,941
Utility margin	902,812		358,802		—		1,261,614
Other operating expenses	460,513		124,519		(22,031)		563,001
Depreciation and amortization	180,812		98,316		25,725		304,853
Operating income (loss)	261,487		135,967		(3,694)		393,760
Interest income	14,816		—		1,279		16,095
Other income (deductions)	(77,012)		8,653		(2,278)		(70,637)
Interest charges	(61,073)		(37,192)		(29,643)		(127,908)
Segment earnings (loss) before income taxes	138,218		107,428		(34,336)		211,310
Income taxes (benefit)	19,198		15,161		(8,229)		26,130
Segment earnings (loss)	119,020		92,267		(26,107)		185,180
Valencia non-controlling interest	(15,122)		—		—		(15,122)
Subsidiary preferred stock dividends	(528)		—		—		(528)
Segment earnings (loss) attributable to PNMR	$	103,370	$	92,267	$	(26,107)	$	169,530


At December 31, 2022:
Total Assets	$	6,272,166	$	2,746,601	$	238,610	$	9,257,377
Goodwill	$	51,632	$	226,665	$	—	$	278,297


2021	PNM		TNMP		Corporate and Other		PNMR Consolidated
	(In thousands)



Electric operating revenues	$	1,362,020	$	417,853	$	—	$	1,779,873
Cost of energy	531,786		113,067		—		644,853
Utility margin	830,234		304,786		—		1,135,020
Other operating expenses	438,372		114,228		(9,840)		542,760
Depreciation and amortization	170,365		90,440		23,302		284,107
Operating income (loss)	221,497		100,118		(13,462)		308,153
Interest income (loss)	14,605		—		57		14,662

Other income (deductions)	13,809		5,408		(726)		18,491
Interest charges	(51,360)		(33,735)		(11,782)		(96,877)
Segment earnings (loss) before income taxes	198,551		71,791		(25,913)		244,429
Income taxes (benefit)	26,992		7,912		(2,322)		32,582
Segment earnings (loss)	171,559		63,879		(23,591)		211,847
Valencia non-controlling interest	(15,490)		—		—		(15,490)
Subsidiary preferred stock dividends	(528)		—		—		(528)
Segment earnings (loss) attributable to PNMR	$	155,541	$	63,879	$	(23,591)	$	195,829


At December 31, 2021:
Total Assets	$	6,060,133	$	2,364,772	$	241,980	$	8,666,885
Goodwill	$	51,632	$	226,665	$	—	$	278,297

Public Utilities General Disclosures

Reconciliations between utility margin and gross margin are presented below.


	PNM		TNMP		Corporate and Other		PNMR Consolidated
	(In thousands)
2023
Gross margin	$	409,366	$	246,465	$	—	$	655,831
Energy production costs	91,610		—		—		91,610
Transmission and distribution costs	61,725		36,996		—		98,721
Depreciation and amortization	177,633		113,142		—		290,775		1
Utility margin	$	740,334	$	396,603	$	—	$	1,136,937

2022
Gross margin	$	516,375	$	224,080	$	—	$	740,455
Energy production costs	147,347		—		—		147,347
Transmission and distribution costs	58,278		36,406		—		94,684
Depreciation and amortization	180,812		98,316		—		279,128		1
Utility margin	$	902,812	$	358,802	$	—	$	1,261,614



2021
Gross margin	$	466,092	$	182,857	$	—	$	648,949
Energy production costs	143,931		—		—		143,931
Transmission and distribution costs	49,846		31,489		—		81,335
Depreciation and amortization	170,365		90,440		—		260,805		1
Utility margin	$	830,234	$	304,786	$	—	$	1,135,020

1 Corporate and Other depreciation and amortization represents corporate level activities that are billed at cost and reflected as general and administrative expenses at PNM and TNMP and therefore are not a component of gross margin or utility margin. See Note 1.

Schedule of Major Customers

Two REPs during the years ended December 31, 2023 and 2022 and three REPs during the years ended December 31, 2021 accounted for more than 10% of the electric operating revenues of TNMP as follows:


	Year Ended December 31,
	2023		2022		2021
REP A	25	%	27	%	23	%
REP B	19		20		19
REP C	N/A		N/A		10