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) | July 31, 2024 | |||||||
(July 31, 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: July 31, 2024 | /s/ Gerald R. Bischoff | ||||
Gerald R. Bischoff | |||||
Vice President and Corporate Controller | |||||
(Officer duly authorized to sign this report) |
Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | |||||||||||
GAAP net earnings attributable to PNM Resources | $48.0 | $45.3 | $95.2 | $100.3 | ||||||||||
GAAP diluted EPS | $0.53 | $0.53 | $1.05 | $1.16 | ||||||||||
Ongoing net earnings | $54.3 | $47.4 | $91.3 | $95.1 | ||||||||||
Ongoing diluted EPS | $0.60 | $0.55 | $1.01 | $1.10 |
GAAP Diluted EPS | Ongoing Diluted EPS | ||||||||||||||||
Q2 2024 | Q2 2023 | Q2 2024 | Q2 2023 | ||||||||||||||
PNM | $0.34 | $0.36 | $0.41 | $0.38 | |||||||||||||
TNMP | $0.33 | $0.29 | $0.33 | $0.29 | |||||||||||||
Corporate and Other | ($0.14) | ($0.12) | ($0.14) | ($0.12) | |||||||||||||
Consolidated PNM Resources | $0.53 | $0.53 | $0.60 | $0.55 |
PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR |
$ | 30,787 | $ | 29,925 | $ | (12,663) | $ | 48,049 | ||||||||||||||||||
Adjusting items before income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities2a |
5,573 | — | — | 5,573 | ||||||||||||||||||||||
Regulatory disallowances2b |
246 | — | — | 246 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c |
433 | — | — | 433 | ||||||||||||||||||||||
Merger related costs2d |
131 | (26) | 800 | 905 | ||||||||||||||||||||||
Total adjustments before income tax effects | 6,383 | (26) | 800 | 7,157 | ||||||||||||||||||||||
Income tax impact of above adjustments1 |
(1,621) | 5 | (203) | (1,819) | ||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items5 |
1,626 | (83) | (593) | 950 | ||||||||||||||||||||||
Total income tax impacts4 |
5 | (78) | (796) | (869) | ||||||||||||||||||||||
Adjusting items, net of income taxes | 6,388 | (104) | 4 | 6,288 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 37,175 | $ | 29,821 | $ | (12,659) | $ | 54,337 | ||||||||||||||||||
Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR |
$ | 72,707 | $ | 44,508 | $ | (21,976) | $ | 95,239 | ||||||||||||||||||
Adjusting items before income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities2a |
(6,658) | — | — | (6,658) | ||||||||||||||||||||||
Regulatory disallowances2b |
4,705 | — | — | 4,705 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2c |
866 | — | — | 866 | ||||||||||||||||||||||
Merger related costs2d |
134 | (22) | 1,650 | 1,762 | ||||||||||||||||||||||
Sale of NMRD3 |
— | — | 15,097 | 15,097 | ||||||||||||||||||||||
Total adjustments before income tax effects | (953) | (22) | 16,747 | 15,772 | ||||||||||||||||||||||
Income tax impact of above adjustments1 |
243 | 4 | (4,254) | (4,007) | ||||||||||||||||||||||
Sale of NMRD3 |
— | — | (15,712) | (15,712) | ||||||||||||||||||||||
Total income tax impacts4 |
243 | 4 | (19,966) | (19,719) | ||||||||||||||||||||||
Adjusting items, net of income taxes | (710) | (18) | (3,219) | (3,947) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 71,997 | $ | 44,490 | $ | (25,195) | $ | 91,292 | ||||||||||||||||||
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 Decrease in "Electric Operating Revenue" of $0.2 million for the three and six months ended June 30, 2024 and an increase in "Regulatory disallowances" of zero and $4.5 million for the three and six months ended June 30, 2024 | ||||||||||||||||||||||||||
c Increases in "Other (deductions)" | ||||||||||||||||||||||||||
d Increases (decreases) 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 23.4% for PNMR, and the GAAP anticipated effective tax rates of 14.3% for PNM, 20.7% for TNMP, and 15.3% for PNMR, which have reversed | ||||||||||||||||||||||||||
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 disallowances2b |
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 disallowances2b |
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 | ||||||||||||||||||
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 on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | ||||||||||||||||||||||||||
b Decreases in "Regulatory disallowances" | ||||||||||||||||||||||||||
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 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 | |||||||||||||||||||||||
(per diluted share) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR |
$ | 0.34 | $ | 0.33 | $ | (0.14) | $ | 0.53 | ||||||||||||||||||
Adjusting items, net of income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities | 0.05 | — | — | 0.05 | ||||||||||||||||||||||
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 | 0.07 | — | — | 0.07 | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.41 | $ | 0.33 | $ | (0.14) | $ | 0.60 | ||||||||||||||||||
Average Diluted Shares Outstanding: 90,552,082 | ||||||||||||||||||||||||||
Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 0.80 | $ | 0.49 | $ | (0.24) | $ | 1.05 | ||||||||||||||||||
Adjusting items, net of income tax effects: |
||||||||||||||||||||||||||
Net change in unrealized (gains) and losses on investment securities | (0.05) | — | — | (0.05) | ||||||||||||||||||||||
Sale of NMRD | — | — | (0.05) | (0.05) | ||||||||||||||||||||||
Regulatory disallowances | 0.04 | — | — | 0.04 | ||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business |
0.01 | — | — | 0.01 | ||||||||||||||||||||||
Merger related costs | — | — | 0.01 | 0.01 | ||||||||||||||||||||||
Total Adjustments | — | — | (0.04) | (0.04) | ||||||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.80 | $ | 0.49 | $ | (0.28) | $ | 1.01 | ||||||||||||||||||
Average Diluted Shares Outstanding: 90,532,986 | ||||||||||||||||||||||||||
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 | 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 | 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 | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||
Electric Operating Revenues | $ | 488,102 | $ | 477,156 | $ | 924,979 | $ | 1,021,233 | |||||||||||||||
Operating Expenses: | |||||||||||||||||||||||
Cost of energy | 154,706 | 172,452 | 287,010 | 414,138 | |||||||||||||||||||
Administrative and general | 59,581 | 54,039 | 115,008 | 109,149 | |||||||||||||||||||
Energy production costs | 24,584 | 25,599 | 46,796 | 47,957 | |||||||||||||||||||
Regulatory disallowances | — | 3,731 | 4,459 | 3,731 | |||||||||||||||||||
Depreciation and amortization | 94,413 | 79,139 | 187,600 | 157,213 | |||||||||||||||||||
Transmission and distribution costs | 25,051 | 25,465 | 47,815 | 47,661 | |||||||||||||||||||
Taxes other than income taxes | 24,084 | 24,401 | 50,018 | 49,963 | |||||||||||||||||||
Total operating expenses | 382,419 | 384,826 | 738,706 | 829,812 | |||||||||||||||||||
Operating income | 105,683 | 92,330 | 186,273 | 191,421 | |||||||||||||||||||
Other Income and Deductions: | |||||||||||||||||||||||
Interest income | 4,470 | 5,359 | 9,050 | 10,202 | |||||||||||||||||||
Gains on investment securities | 558 | 3,777 | 18,556 | 10,219 | |||||||||||||||||||
Other income | 7,688 | 5,600 | 12,599 | 8,693 | |||||||||||||||||||
Other (deductions) | (1,636) | (3,515) | (18,158) | (6,008) | |||||||||||||||||||
Net other income and deductions | 11,080 | 11,221 | 22,047 | 23,106 | |||||||||||||||||||
Interest Charges | 55,828 | 45,899 | 109,590 | 86,822 | |||||||||||||||||||
Earnings before Income Taxes | 60,935 | 57,652 | 98,730 | 127,705 | |||||||||||||||||||
Income Taxes (Benefits) | 8,971 | 8,229 | (3,600) | 18,009 | |||||||||||||||||||
Net Earnings | 51,964 | 49,423 | 102,330 | 109,696 | |||||||||||||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (3,783) | (3,987) | (6,827) | (9,114) | |||||||||||||||||||
Preferred Stock Dividend Requirements of Subsidiary | (132) | (132) | (264) | (264) | |||||||||||||||||||
Net Earnings Attributable to PNMR | $ | 48,049 | $ | 45,304 | $ | 95,239 | $ | 100,318 | |||||||||||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||||||||||||
Basic | $ | 0.53 | $ | 0.53 | $ | 1.05 | $ | 1.17 | |||||||||||||||
Diluted | $ | 0.53 | $ | 0.53 | $ | 1.05 | $ | 1.16 | |||||||||||||||
Dividends Declared per Common Share | $ | 0.3875 | $ | 0.3675 | $ | 0.7750 | $ | 0.7350 |