2024 Ongoing Earnings Guidance Narrowed
2024 third quarter GAAP earnings of $1.45 per diluted share
2024 third quarter ongoing earnings of $1.43 per diluted share
Narrowed 2024 ongoing earnings guidance range to $2.70 - $2.75
TXNM Energy released its 2024 third quarter results. In addition, management narrowed its 2024 consolidated ongoing earnings guidance to a range of $2.70 to $2.75 per diluted share.
"We're pleased with our third quarter results," said Pat Vincent-Collawn, TXNM Energy Chairman and CEO. "The recent approval of PNM's Grid Modernization Plan moves New Mexico forward with a focus on strategic investments benefiting customers. These new tools, combined with those in TNMP's filed System Resiliency Plan, demonstrate our commitment to a reliable and resilient grid to meet our customers' energy needs across New Mexico and Texas."
SEGMENT REPORTING OF 2024 THIRD QUARTER EARNINGS
PNM – a vertically integrated electric utility in New Mexico with distribution, transmission and generation assets.
TNMP – an electric transmission and distribution utility in Texas.
Corporate and Other – reflects the TXNM Energy holding company and other subsidiaries.
EPS Results by Segment
Net changes to GAAP and ongoing earnings in the third quarter of 2024 compared to the third quarter of 2023 include:
PNM: The implementation of new retail rates, improved performance by the decommissioning and reclamation trusts and interest expense net of refunds were more than offset by lower transmission margins due to market prices, new depreciation rates implemented as part of new retail rates as well as depreciation expense associated with new capital investments. Load growth was offset by lower weather impacts.
TNMP: Rate recovery through Transmission Cost of Service (TCOS) and Distribution Cost Recovery Factor (DCRF) increases were more than offset by lower weather impacts along with depreciation, property tax and interest expense associated with new capital investments.
Corporate and Other: Lower NMRD income following the February sale and higher interest rates on variable rate debt, net of hedges, increased losses.
GAAP and ongoing earnings per share were reduced in the third quarter of 2024 by additional shares issued in December 2023.
In addition, GAAP earnings in the third quarter of 2024 included $9.5 million of net unrealized gains on investment securities compared to $5.6 million of net unrealized losses in the third quarter of 2023. GAAP earnings in the third quarter of 2023 included a one-time charge for a settlement involving $115 million of rate credits associated with the retirement of the San Juan Generating Station.
Additional materials with information on quarterly results are available at
https://www.txnmenergy.com/investors/financial-information/quarterly-reports/2024.aspx.
THIRD QUARTER CONFERENCE CALL: 11 A.M. EASTERN FRIDAY, NOVEMBER 1
TXNM Energy will discuss these items during a live conference call and webcast on Friday, November 1st at 11 a.m. Eastern. Speaking on the call will be Pat Vincent-Collawn, TXNM Energy Chairman and Chief Executive Officer, Don Tarry, TXNM Energy President and Chief Operating Officer, and Lisa Eden, TXNM Energy Senior Vice President and Chief Financial Officer.
The conference call will be simultaneously broadcast and archived on our website at https://www.txnmenergy.com/investors/events-and-presentations. Listeners are encouraged to visit the website at least 30 minutes before the event to register, download and install any necessary audio software.
Investors and analysts can participate in the live conference call by pre-registering using the following link:
https://dpregister.com/sreg/10193346/fda929e300. Telephone participants who are unable to pre-register may participate in the live conference call by dialing (877) 276-8648 or (412) 317-5474 fifteen minutes prior to the event and asking to join the TXNM Energy call.
