Earnings Performance - Q3 2024 GAAP earnings were $1.45 per diluted share, compared to $0.44 in Q3 2023, representing a 229.5% increase[1] - Ongoing earnings for Q3 2024 were $1.43 per diluted share, down from $1.54 in Q3 2023, a decrease of 7.1%[1] - GAAP net earnings attributable to TXNM Energy for Q3 2024 were $131.2 million, up from $37.7 million in Q3 2023, a growth of 248.5%[1] - Ongoing net earnings for Q3 2024 were $129.3 million, slightly down from $132.9 million in Q3 2023, a decrease of 2.7%[1] - PNM segment reported GAAP earnings of $1.20 per share in Q3 2024, compared to $0.09 in Q3 2023, a significant increase[4] - TNMP segment reported GAAP earnings of $0.39 per share in Q3 2024, down from $0.46 in Q3 2023, a decrease of 15.2%[4] - The diluted earnings per share for Q3 2024 were $1.45, compared to $0.44 in Q3 2023, reflecting an increase of 229.5%[24] Revenue and Operating Income - Electric Operating Revenues for Q3 2024 were $569.256 million, compared to $505.851 million in Q3 2023, reflecting an increase of 12.5%[24] - Operating income for Q3 2024 was $191.080 million, up from $86.652 million in Q3 2023, representing a growth of 120.5%[24] Expenses and Costs - Total operating expenses decreased to $378.176 million in Q3 2024 from $419.199 million in Q3 2023, a reduction of 9.8%[24] - The company reported a decrease in the cost of energy to $138.909 million in Q3 2024 from $210.313 million in Q3 2023, a decline of 34.0%[24] - Interest charges increased to $59.664 million in Q3 2024 from $49.838 million in Q3 2023, an increase of 19.5%[24] Regulatory and Market Factors - The company experienced lower transmission margins due to market prices and new depreciation rates, impacting overall earnings[5] - Regulatory disallowances increased to $6.142 million in Q3 2024 from $2.315 million in Q3 2023, a rise of 165.5%[24] Guidance and Future Expectations - The company narrowed its 2024 ongoing earnings guidance to a range of $2.70 to $2.75 per diluted share[1] - The company anticipates reversing the differences in statutory and effective tax rates by year-end, with expected rates of 25.4% for PNM and 21.0% for TNMP[20] Company Overview - TXNM Energy serves over 800,000 homes and businesses across Texas and New Mexico through its regulated utilities[13] - Q3 2024 GAAP earnings included $9.5 million of net unrealized gains on investment securities, compared to $5.6 million of net unrealized losses in Q3 2023[8] - The average diluted shares outstanding for ongoing earnings were 90,605,188[22]

Core Points - The New Mexico Public Regulation Commission (NMPRC) approved Public Service Company of New Mexico's (PNM) application for grid modernization, focusing on resilience, reliability, efficiency, and decarbonization [1][2] - The plan includes a six-year investment of $344 million, aimed at enhancing customer service through smart meters and enabling a clean energy transition in New Mexico [2] Investment and Implementation - The approved plan is part of a longer-term strategy for grid modernization, which will facilitate two-way communication on the grid, providing customers with insights into their energy usage [1] - The deployment of smart meters and upgrades will prioritize low-income and underserved communities, ensuring equitable access to clean energy opportunities [2] Regulatory Context - The investments are supported by a cost-benefit analysis and align with New Mexico's grid modernization legislation passed in 2020, with costs to be recovered through an annually reviewed tariff rider [2]

Financial Performance - Electric Operating Revenues for Q2 2024 reached $488,102 thousand, a 2% increase from $477,156 thousand in Q2 2023[20]. - Operating Income for Q2 2024 was $105,683 thousand, up 14% from $92,330 thousand in Q2 2023[20]. - Net Earnings attributable to PNMR for Q2 2024 were $48,049 thousand, a 6% increase compared to $45,304 thousand in Q2 2023[20]. - Basic Earnings per Common Share for Q2 2024 remained stable at $0.53, unchanged from Q2 2023[20]. - Total Operating Expenses for Q2 2024 were $382,419 thousand, slightly down from $384,826 thousand in Q2 2023[20]. - Comprehensive Income attributable to PNMR for Q2 2024 was $45,757 thousand, down from $50,423 thousand in Q2 2023[22]. - Net earnings for the three months ended June 30, 2024, were $34,702,000, a decrease of 1.7% from $35,303,000 in the same period of 2023[39]. - Net earnings for the six months ended June 30, 2024, increased to $44,508,000, up from $34,665,000 in the same period of 2023, representing a growth of 28.3%[56]. Cash Flow and Investments - Cash Flows from Operating Activities for the first six months of 2024 totaled $169,524 thousand, a decrease from $242,443 thousand in the same period of 2023[25]. - Net cash flows used in investing activities for the first six months of 2024 were $(479,498) thousand, a slight improvement from $(530,263) thousand in 2023[25]. - Cash flows from financing activities showed a net increase of $326,351 thousand for the six months ended June 30, 2024, compared to $291,382 thousand for the same period in 2023, reflecting a growth of approximately 12.3%[27]. - Cash and cash equivalents at the end of the period were $20,320 thousand, significantly up from $7,640 thousand at the end of June 30, 2023, marking an increase of approximately 166.5%[27]. - Cash and cash equivalents at the end of the period were $1,274,000, compared to no cash equivalents reported at the beginning of the period[56]. Debt and Liabilities - PNM issued $200 million in Senior Unsecured Notes on April 28, 2023[16]. - PNMR's $1 billion Unsecured Delayed-Draw Term Loan matures on May 18, 2025[16]. - PNMR's $500 million term loan matures on June 30, 2026[16]. - The company reported a decrease in accounts payable to $140,304 thousand as of June 30, 2024, down from $205,175 thousand at the end of 2023, which is a reduction of approximately 31.6%[31]. - Long-term borrowings increased to $1,065,000 thousand as of June 30, 2024, compared to $960,000 thousand at the end of 2023, representing an increase of about 10.9%[27]. - The company reported total liabilities rose to $8,120,201 thousand as of June 30, 2024, compared to $7,842,025 thousand at the end of 2023, indicating an increase of approximately 3.5%[31]. - Long-term debt increased from $2,061,558,000 in December 2023 to $2,351,460,000 in June 2024, representing an increase of about 14.0%[48]. Equity and Retained Earnings - Retained earnings increased to $847,397 thousand as of June 30, 2024, up from $787,110 thousand at the end of 2023, reflecting a growth of about 7.7%[32]. - The total equity of the company increased to $2,451,680 thousand as of June 30, 2024, up from $2,399,051 thousand at the end of 2023, indicating a growth of about 2.2%[32]. - The company paid dividends totaling $70,169 thousand during the six months ended June 30, 2024, compared to $63,353 thousand for the same period in 2023, reflecting an increase of approximately 10.0%[27]. - The Board declared dividends on common stock of $0.3875 per share for Q2 2024, an increase from $0.3675 per share for Q2 2023[70]. Regulatory and Compliance - The Energy Transition Act mandates that New Mexico utilities achieve a renewable portfolio of 40% by 2025, increasing to 100% zero-carbon energy by 2045[191]. - The company anticipates making a contribution of $0.2 million to its pension plan in 2028 based on current funding requirements[184]. - PNM is currently assessing the potential impact of the final rules on its business and financial condition[206]. - The EPA published proposed regulatory actions on May 23, 2023, to replace the Clean Power Plan and the ACE Rule, with final rules expected by May 9, 2024[206]. Operational Highlights - PNM's operations include retail electric utility services and wholesale electricity sales, with a focus on energy transition initiatives through the establishment of ETBC I[75]. - PNM's energy transition property, managed through ETBC I, generated operating revenues of $5.8 million for the three months ended June 30, 2024[113]. - PNM's future generation portfolio will be significantly impacted by the Energy Transition Act, particularly regarding the retirement of coal-fired facilities[196]. Miscellaneous - PNM filed a shelf registration statement on May 16, 2023, for the issuance of up to $650 million of securities, expiring in May 2026[153]. - The company utilized short-term revolving credit facilities and cash flows from operations for funding construction and operating expenditures[152]. - PNM's derivative contracts recorded at fair value had no impact on net earnings during the six months ended June 30, 2024, and 2023[126].

Financial Data and Key Metrics Changes - Ongoing earnings for Q2 2024 were $0.60, exceeding expectations, with guidance for 2024 affirmed at a range of $2.65 to $2.75 [5][22] - Earnings per share increased from $0.55 in the prior year, driven by capital investment recovery and load growth [22] Business Line Data and Key Metrics Changes - TNMP reached an all-time system peak of over 2,700 megawatts, a 6% increase from the previous summer peak [9] - PNM's two 6 megawatt batteries became operational, aimed at reducing constraints on the distribution system [12] Market Data and Key Metrics Changes - The Texas Gulf Coast experienced power outages affecting approximately 116,000 customers due to Hurricane Beryl [7][10] - In New Mexico, the South Fork and Salt fires displaced around 10,000 residents, prompting a coordinated response from the company [13] Company Strategy and Development Direction - The company will officially operate as TXNM Energy, reflecting its business growth, particularly in Texas [6] - A focus on system resiliency and infrastructure investment is emphasized, with a filing for a System Resiliency Plan expected to include approximately $600 million in capital investments [18][21] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for continued focus on system resiliency and preparation for extreme weather events [8] - The company is on track to deliver earnings growth targets of 6% to 7% through 2028, supported by a strong capital plan [25] Other Important Information - The company completed a $550 million issuance of junior subordinated convertible notes, benefiting its balance sheet and income statement [24] - A new rate request was submitted for 2025, with a phased implementation plan to mitigate customer impacts [16] Q&A Session Summary Question: Discussion on resource filing and utility-owned assets - Management emphasized that resource filings focus on customer benefits and reliability, with a mix of company-owned and PPA assets [28][29] Question: Impact of ERCOT transmission upgrades - Management noted that ERCOT's report indicated significant load growth and potential investments in the West Texas area, which could benefit the company [30][32] Question: Resiliency filing and equity funding - Management confirmed that the resiliency filing includes $450 million already assumed, with an additional $150 million expected [35] Question: New Mexico rate case process - Management indicated that intervener testimony is expected, and discussions for potential settlements will occur as the process progresses [37][38] Question: Incremental Texas CapEx for resiliency - Management clarified that the current plan does not include the new resiliency spending for 2028 and beyond [41] Question: Tree trimming and vegetation management - Management reported that 55% to 60% of the outages during the hurricane were due to vegetation outside their right of ways, indicating a need for improved management [47][48]

1 Q2 2024 Earnings Review July 31, 2024 PNM @Resources® Safe Harbor Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements made in this news release for PNM Resources, Inc. ("PNMR"), Public Service Company of New Mexico ("PNM"), or Texas-New Mexico Power Company ("TNMP") (collectively, the "Company") that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies, including any unaudited financial results and ear ...

PNM Resources (PNM) reported second-quarter 2024 earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 55 cents by 9.1%. In the year-ago quarter, the company reported earnings of 55 cents per share. Segmental Details Highlights of the Release Revenues totaled $488.1 million, which missed the Zacks Consensus Estimate of $507 million by 3.72%. The top line, however, increased 2.3% from $477.2 million reported in the year-ago quarter. TNMP recorded earnings of 33 cents per share, up 1 ...

PNM Resources (PNM) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this power company would post earnings of $0.68 per share when it actually produced earnings of $0.41, delivering a surprise of -39.71%. Over the last four quarters, the com ...

Exhibit 99.1 ALBUQUERQUE, N.M. July 31, 2024 | | 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 | PNM Resources (NYSE: PNM) today released its 2024 second quarter results. In addition, management affirmed its 2024 consolidat ...

| --- | --- | --- | --- | --- | |----------------------------|---------|------------------------------|-----------|-------------------------------| | | Q2 2024 | GAAP Diluted EPS \n Q2 2023 | \nQ2 2024 | Ongoing Diluted EPS \nQ2 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 | Net changes to GAAP and ongoing earnings in the second quarter of 20 ...

ALBUQUERQUE, N.M., July 22, 2024 /PRNewswire/ -- PNM Resources, Inc. (NYSE: PNM) is expecting to complete the change of its holding company name to TXNM Energy, Inc. (NYSE: TXNM), effective at 5:00pm ET on August 2, 2024. Trading under the new name and TXNM ticker is expected to begin on Monday, August 5, 2024. The change was overwhelmingly approved by shareholders at its annual meeting on June 4, 2024, and by the PNM Resources Board of Directors. There are no changes to the names of PNM or TNMP, wholly own ...