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) | April 30, 2024 | |||||||
(April 30, 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. |
Common Stock, no par value |
PNM |
New York Stock Exchange |
PNM RESOURCES, INC. | |||||
PUBLIC SERVICE COMPANY OF NEW MEXICO | |||||
TEXAS-NEW MEXICO POWER COMPANY | |||||
(Registrants) | |||||
Date: April 30, 2024 | /s/ Gerald R. Bischoff | ||||
Gerald R. Bischoff | |||||
Vice President and Corporate Controller | |||||
(Officer duly authorized to sign this report) |
Q1 2024 | Q1 2023 | |||||||
GAAP net earnings attributable to PNM Resources | $47.2 | $55.0 | ||||||
GAAP diluted EPS | $0.52 | $0.64 | ||||||
Ongoing net earnings | $37.0 | $47.6 | ||||||
Ongoing diluted EPS | $0.41 | $0.55 |
GAAP Diluted EPS | Ongoing Diluted EPS | ||||||||||||||||
Q1 2024 | Q1 2023 | Q1 2024 | Q1 2023 | ||||||||||||||
PNM | $0.46 | $0.64 | $0.38 | $0.55 | |||||||||||||
TNMP | $0.16 | $0.11 | $0.16 | $0.11 | |||||||||||||
Corporate and Other | ($0.10) | ($0.11) | ($0.13) | ($0.11) | |||||||||||||
Consolidated PNM Resources | $0.52 | $0.64 | $0.41 | $0.55 |
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR |
$ | 41,920 | $ | 14,583 | $ | (9,313) | $ | 47,190 | ||||||||||||||||||
Adjusting items before income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities2a |
(12,231) | — | — | (12,231) | ||||||||||||||||||||||
Regulatory disallowances2b |
4,459 | — | — | 4,459 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c |
433 | — | — | 433 | ||||||||||||||||||||||
Merger related costs2d |
3 | 4 | 851 | 858 | ||||||||||||||||||||||
Sale of NMRD3 |
— | — | 15,097 | 15,097 | ||||||||||||||||||||||
Total adjustments before income tax effects | (7,336) | 4 | 15,948 | 8,616 | ||||||||||||||||||||||
Income tax impact of above adjustments1 |
1,863 | (1) | (4,051) | (2,189) | ||||||||||||||||||||||
Sale of NMRD3 |
— | — | (15,712) | (15,712) | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items5 |
(1,625) | 83 | 593 | (949) | ||||||||||||||||||||||
Total income tax impacts4 |
238 | 82 | (19,170) | (18,850) | ||||||||||||||||||||||
Adjusting items, net of income taxes | (7,098) | 86 | (3,222) | (10,234) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 34,822 | $ | 14,669 | $ | (12,535) | $ | 36,956 | ||||||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR |
$ | 54,576 | $ | 10,033 | $ | (9,595) | $ | 55,014 | ||||||||||||||||||
Adjusting items before income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities2a |
(9,485) | — | — | (9,485) | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c |
679 | — | — | 679 | ||||||||||||||||||||||
Merger related costs2d |
12 | — | 286 | 298 | ||||||||||||||||||||||
Total adjustments before income tax effects | (8,794) | — | 286 | (8,508) | ||||||||||||||||||||||
Income tax impact of above adjustments1 |
2,234 | — | (73) | 2,161 | ||||||||||||||||||||||
Income tax impact of non-deductible merger related costs4 |
1 | — | 54 | 55 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items6 |
(727) | (64) | (283) | (1,074) | ||||||||||||||||||||||
Total income tax impacts4 |
1,508 | (64) | (302) | 1,142 | ||||||||||||||||||||||
Adjusting items, net of income taxes | (7,286) | (64) | (16) | (7,366) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 47,290 | $ | 9,969 | $ | (9,611) | $ | 47,648 | ||||||||||||||||||
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 on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | ||||||||||||||||||||||||||
b Increase in "Regulatory disallowances" | ||||||||||||||||||||||||||
c Increases in "Other (deductions)" | ||||||||||||||||||||||||||
d Increases in "Administrative and general" |
||||||||||||||||||||||||||
3 Net gain of $4.4 million on the sale of NMRD: Increase in "Other (deductions)" of $15.1 million, decrease in "Income Taxes (Benefits)" of $3.8 million for federal income tax and a decrease in "Income Taxes (Benefits)" of $15.7 million for investment tax credits | ||||||||||||||||||||||||||
4 Increases (decreases) in "Income Taxes (Benefits)" | ||||||||||||||||||||||||||
5 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 23.3% for PNMR, and the GAAP anticipated effective tax rates of 13.1% for PNM, 20.7% for TNMP, and 14.6% for PNMR, which will reverse by year end | ||||||||||||||||||||||||||
6 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 18.0% for PNM, 14.1% for TNMP, and 15.4% for PNMR, which will reverse by year end | ||||||||||||||||||||||||||
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||
(per diluted share) | ||||||||||||||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR |
$ | 0.46 | $ | 0.16 | $ | (0.10) | $ | 0.52 | ||||||||||||||||||
Adjusting items, net of income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities | (0.10) | — | — | (0.10) | ||||||||||||||||||||||
Sale of NMRD | — | — | (0.05) | (0.05) | ||||||||||||||||||||||
Regulatory disallowances | 0.04 | — | — | 0.04 | ||||||||||||||||||||||
Merger related costs | — | — | 0.01 | 0.01 | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items | (0.02) | — | 0.01 | (0.01) | ||||||||||||||||||||||
Total Adjustments | (0.08) | — | (0.03) | (0.11) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.38 | $ | 0.16 | $ | (0.13) | $ | 0.41 | ||||||||||||||||||
Average Diluted Shares Outstanding: 90,513,888 | ||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 0.64 | $ | 0.11 | $ | (0.11) | $ | 0.64 | ||||||||||||||||||
Adjusting items, net of income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities | (0.08) | — | — | (0.08) | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items | (0.01) | — | — | (0.01) | ||||||||||||||||||||||
Total Adjustments | (0.09) | — | — | (0.09) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.55 | $ | 0.11 | $ | (0.11) | $ | 0.55 | ||||||||||||||||||
Average Diluted Shares Outstanding: 86,140,792 | ||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(In thousands, except per share amounts) | |||||||||||
Electric Operating Revenues | $ | 436,877 | $ | 544,077 | |||||||
Operating Expenses: | |||||||||||
Cost of energy | 132,304 | 241,686 | |||||||||
Administrative and general | 55,427 | 55,110 | |||||||||
Energy production costs | 22,212 | 22,358 | |||||||||
Regulatory disallowances | 4,459 | — | |||||||||
Depreciation and amortization | 93,187 | 78,074 | |||||||||
Transmission and distribution costs | 22,764 | 22,196 | |||||||||
Taxes other than income taxes | 25,934 | 25,562 | |||||||||
Total operating expenses | 356,287 | 444,986 | |||||||||
Operating income | 80,590 | 99,091 | |||||||||
Other Income and Deductions: | |||||||||||
Interest income | 4,580 | 4,843 | |||||||||
Gains on investment securities | 17,998 | 6,442 | |||||||||
Other income | 4,911 | 3,093 | |||||||||
Other (deductions) | (16,522) | (2,493) | |||||||||
Net other income and deductions | 10,967 | 11,885 | |||||||||
Interest Charges | 53,762 | 40,923 | |||||||||
Earnings before Income Taxes | 37,795 | 70,053 | |||||||||
Income Taxes (Benefits) | (12,571) | 9,780 | |||||||||
Net Earnings | 50,366 | 60,273 | |||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (3,044) | (5,127) | |||||||||
Preferred Stock Dividend Requirements of Subsidiary | (132) | (132) | |||||||||
Net Earnings Attributable to PNMR | $ | 47,190 | $ | 55,014 | |||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||
Basic | $ | 0.52 | $ | 0.64 | |||||||
Diluted | $ | 0.52 | $ | 0.64 | |||||||
Dividends Declared per Common Share | $ | 0.3875 | $ | 0.3675 |