UNITED STATES | |||||
SECURITIES AND EXCHANGE COMMISSION | |||||
Washington, D.C. 20549 | |||||
FORM | 8-K | ||||
CURRENT REPORT | |||||
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 | |||||
Date of Report (Date of earliest event reported) | August 4, 2023 | |||||||
(August 4, 2023) |
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. |
Common Stock, no par value |
PNM |
New York Stock Exchange |
PNM RESOURCES, INC. | |||||
TEXAS-NEW MEXICO POWER COMPANY | |||||
(Registrants) | |||||
Date: August 4, 2023 | /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: August 4, 2023 | /s/ Henry E. Monroy | ||||
Henry E. Monroy | |||||
Vice President, Regulatory and Corporate Controller | |||||
(Officer duly authorized to sign this report) |
Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | |||||||||||
GAAP net earnings attributable to PNM Resources | $45.3 | $15.4 | $100.3 | $31.4 | ||||||||||
GAAP diluted EPS | $0.53 | $0.18 | $1.16 | $0.36 | ||||||||||
Ongoing net earnings | $47.4 | $49.4 | $95.1 | $92.7 | ||||||||||
Ongoing diluted EPS | $0.55 | $0.57 | $1.10 | $1.08 |
GAAP Diluted EPS | Ongoing Diluted EPS | ||||||||||||||||
Q2 2023 | Q2 2022 | Q2 2023 | Q2 2022 | ||||||||||||||
PNM | $0.36 | ($0.07) | $0.38 | $0.32 | |||||||||||||
TNMP | $0.29 | $0.30 | $0.29 | $0.31 | |||||||||||||
Corporate and Other | ($0.12) | ($0.05) | ($0.12) | ($0.06) | |||||||||||||
Consolidated PNM Resources | $0.53 | $0.18 | $0.55 | $0.57 |
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR |
$ | 31,184 | $ | 24,632 | $ | (10,512) | $ | 45,304 | ||||||||||||||||||
Adjusting items before income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities2a |
(2,504) | — | — | (2,504) | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs2b |
3,731 | — | — | 3,731 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c |
679 | — | — | 679 | ||||||||||||||||||||||
Merger related costs2d |
15 | 2 | 233 | 250 | ||||||||||||||||||||||
Total adjustments before income tax effects | 1,921 | 2 | 233 | 2,156 | ||||||||||||||||||||||
Income tax impact of above adjustments1 |
(488) | — | (59) | (547) | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 |
4 | — | 31 | 35 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items4 |
275 | 221 | (2) | 494 | ||||||||||||||||||||||
Total income tax impacts5 |
(209) | 221 | (30) | (18) | ||||||||||||||||||||||
Adjusting items, net of income taxes | 1,712 | 223 | 203 | 2,138 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 32,896 | $ | 24,855 | $ | (10,309) | $ | 47,442 | ||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR |
$ | 85,760 | $ | 34,665 | $ | (20,107) | $ | 100,318 | ||||||||||||||||||
Adjusting items before income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities2a |
(11,989) | — | — | (11,989) | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs2b |
3,731 | — | — | 3,731 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c |
1,358 | — | — | 1,358 | ||||||||||||||||||||||
Merger related costs2d |
27 | 2 | 519 | 548 | ||||||||||||||||||||||
Total adjustments before income tax effects | (6,873) | 2 | 519 | (6,352) | ||||||||||||||||||||||
Income tax impact of above adjustments1 |
1,746 | — | (132) | 1,614 | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 |
5 | — | 85 | 90 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items4 |
(452) | 157 | (285) | (580) | ||||||||||||||||||||||
Total income tax impacts5 |
1,299 | 157 | (332) | 1,124 | ||||||||||||||||||||||
Adjusting items, net of income taxes | (5,574) | 159 | 187 | (5,228) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 80,186 | $ | 34,824 | $ | (19,920) | $ | 95,090 | ||||||||||||||||||
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 Changes in "Gains (losses) on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | ||||||||||||||||||||||||||
b Increase in "Regulatory disallowances and restructuring costs" | ||||||||||||||||||||||||||
c Increases in "Other (deductions)" | ||||||||||||||||||||||||||
d Increases in "Administrative and general" |
||||||||||||||||||||||||||
3 Increases 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 23.8% for PNMR, and the GAAP anticipated effective tax rates of 18.7% for PNM, 14.7% for TNMP, and 15.7% 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, 2022 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR |
$ | (6,217) | $ | 26,051 | $ | (4,473) | $ | 15,361 | ||||||||||||||||||
Adjusting items before income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities2a |
38,979 | — | — | 38,979 | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs2b |
1,399 | — | — | 1,399 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c |
614 | — | — | 614 | ||||||||||||||||||||||
Merger related costs2d |
23 | 4 | 288 | 315 | ||||||||||||||||||||||
Total adjustments before income tax effects | 41,015 | 4 | 288 | 41,307 | ||||||||||||||||||||||
Income tax impact of above adjustments1 |
(10,418) | (1) | (73) | (10,492) | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 |
(80) | 61 | (4) | (23) | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items4 |
3,326 | 379 | (440) | 3,265 | ||||||||||||||||||||||
Total income tax impacts5 |
(7,172) | 439 | (517) | (7,250) | ||||||||||||||||||||||
Adjusting items, net of income taxes | 33,843 | 443 | (229) | 34,057 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 27,626 | $ | 26,494 | $ | (4,702) | $ | 49,418 | ||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR |
$ | (1,906) | $ | 41,111 | $ | (7,853) | $ | 31,352 | ||||||||||||||||||
Adjusting items before income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities2a |
69,891 | — | — | 69,891 | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs2b |
1,399 | — | — | 1,399 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c |
1,228 | — | — | 1,228 | ||||||||||||||||||||||
Merger related costs2d |
50 | 4 | 1,232 | 1,286 | ||||||||||||||||||||||
Total adjustments before income tax effects | 72,568 | 4 | 1,232 | 73,804 | ||||||||||||||||||||||
Income tax impact of above adjustments1 |
(18,432) | (1) | (313) | (18,746) | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs3 |
(11) | 282 | 34 | 305 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items4 |
5,974 | 194 | (160) | 6,008 | ||||||||||||||||||||||
Total income tax impacts5 |
(12,469) | 475 | (439) | (12,433) | ||||||||||||||||||||||
Adjusting items, net of income taxes | 60,099 | 479 | 793 | 61,371 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 58,193 | $ | 41,590 | $ | (7,060) | $ | 92,723 | ||||||||||||||||||
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 Changes in "Gains (losses) 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 Increases (decreases) 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 23.2% for PNMR, and the GAAP anticipated effective tax rates of 11.9% for PNM, 13.3% for TNMP, and 10.8% 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 June 30, 2023 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR |
$ | 0.36 | $ | 0.29 | $ | (0.12) | $ | 0.53 | ||||||||||||||||||
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 |
0.03 | — | — | 0.03 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business |
0.01 | — | — | 0.01 | ||||||||||||||||||||||
Total Adjustments | 0.02 | — | — | 0.02 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.38 | $ | 0.29 | $ | (0.12) | $ | 0.55 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,129,124 | ||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 1.00 | $ | 0.40 | $ | (0.24) | $ | 1.16 | ||||||||||||||||||
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 |
0.03 | — | — | 0.03 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business |
0.01 | — | — | 0.01 | ||||||||||||||||||||||
Merger related costs | — | — | 0.01 | 0.01 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items | (0.01) | — | — | (0.01) | ||||||||||||||||||||||
Total Adjustments | (0.07) | — | 0.01 | (0.06) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.93 | $ | 0.40 | $ | (0.23) | $ | 1.10 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,133,091 | ||||||||||||||||||||||||||
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||
(per diluted share) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | (0.07) | $ | 0.30 | $ | (0.05) | $ | 0.18 | ||||||||||||||||||
Adjusting items, net of income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities | 0.34 | — | — | 0.34 | ||||||||||||||||||||||
Regulatory disallowances and restructuring costs | 0.01 | — | — | 0.01 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items | 0.04 | 0.01 | (0.01) | 0.04 | ||||||||||||||||||||||
Total Adjustments | 0.39 | 0.01 | (0.01) | 0.39 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.32 | $ | 0.31 | $ | (0.06) | $ | 0.57 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,226,318 | ||||||||||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | (0.02) | $ | 0.47 | $ | (0.09) | $ | 0.36 | ||||||||||||||||||
Adjusting items, net of income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities | 0.61 | — | — | 0.61 | ||||||||||||||||||||||
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 | 0.02 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items | 0.07 | — | — | 0.07 | ||||||||||||||||||||||
Total Adjustments | 0.70 | 0.01 | 0.01 | 0.72 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.68 | $ | 0.48 | $ | (0.08) | $ | 1.08 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,198,407 | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||
Electric Operating Revenues | $ | 477,156 | $ | 499,730 | $ | 1,021,233 | $ | 943,848 | |||||||||||||||
Operating Expenses: | |||||||||||||||||||||||
Cost of energy | 172,452 | 195,596 | 414,138 | 364,010 | |||||||||||||||||||
Administrative and general | 54,039 | 51,342 | 109,149 | 107,203 | |||||||||||||||||||
Energy production costs | 25,599 | 42,499 | 47,957 | 76,065 | |||||||||||||||||||
Regulatory disallowances and restructuring costs | 3,731 | 1,399 | 3,731 | 1,399 | |||||||||||||||||||
Depreciation and amortization | 79,139 | 76,769 | 157,213 | 152,533 | |||||||||||||||||||
Transmission and distribution costs | 25,465 | 21,156 | 47,661 | 39,622 | |||||||||||||||||||
Taxes other than income taxes | 24,401 | 24,577 | 49,963 | 48,556 | |||||||||||||||||||
Total operating expenses | 384,826 | 413,338 | 829,812 | 789,388 | |||||||||||||||||||
Operating income | 92,330 | 86,392 | 191,421 | 154,460 | |||||||||||||||||||
Other Income and Deductions: | |||||||||||||||||||||||
Interest income | 5,359 | 3,327 | 10,202 | 7,619 | |||||||||||||||||||
Gains (losses) on investment securities | 3,777 | (41,795) | 10,219 | (68,368) | |||||||||||||||||||
Other income | 5,600 | 5,151 | 8,693 | 9,481 | |||||||||||||||||||
Other (deductions) | (3,515) | (3,641) | (6,008) | (5,882) | |||||||||||||||||||
Net other income and deductions | 11,221 | (36,958) | 23,106 | (57,150) | |||||||||||||||||||
Interest Charges | 45,899 | 29,217 | 86,822 | 55,437 | |||||||||||||||||||
Earnings before Income Taxes | 57,652 | 20,217 | 127,705 | 41,873 | |||||||||||||||||||
Income Taxes | 8,229 | 1,094 | 18,009 | 3,532 | |||||||||||||||||||
Net Earnings | 49,423 | 19,123 | 109,696 | 38,341 | |||||||||||||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (3,987) | (3,630) | (9,114) | (6,725) | |||||||||||||||||||
Preferred Stock Dividend Requirements of Subsidiary | (132) | (132) | (264) | (264) | |||||||||||||||||||
Net Earnings Attributable to PNMR | $ | 45,304 | $ | 15,361 | $ | 100,318 | $ | 31,352 | |||||||||||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||||||||||||
Basic | $ | 0.53 | $ | 0.18 | $ | 1.17 | $ | 0.36 | |||||||||||||||
Diluted | $ | 0.53 | $ | 0.18 | $ | 1.16 | $ | 0.36 | |||||||||||||||
Dividends Declared per Common Share | $ | 0.3675 | $ | 0.3475 | $ | 0.7350 | $ | 0.6950 |