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PNM Resources(PNM) - 2024 Q2 - Quarterly Report
PNMPNM Resources(PNM)2024-08-02 20:16
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Financial Performance - Electric Operating Revenues for Q2 2024 reached 488,102thousand,a2488,102 thousand, a 2% increase from 477,156 thousand in Q2 2023[20]. - Operating Income for Q2 2024 was 105,683thousand,up14105,683 thousand, up 14% from 92,330 thousand in Q2 2023[20]. - Net Earnings attributable to PNMR for Q2 2024 were 48,049thousand,a648,049 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,unchangedfromQ22023[20].−TotalOperatingExpensesforQ22024were0.53, unchanged from Q2 2023[20]. - Total Operating Expenses for Q2 2024 were 382,419 thousand, slightly down from 384,826thousandinQ22023[20].−ComprehensiveIncomeattributabletoPNMRforQ22024was384,826 thousand in Q2 2023[20]. - Comprehensive Income attributable to PNMR for Q2 2024 was 45,757 thousand, down from 50,423thousandinQ22023[22].−NetearningsforthethreemonthsendedJune30,2024,were50,423 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 35,303,000inthesameperiodof2023[39].−NetearningsforthesixmonthsendedJune30,2024,increasedto35,303,000 in the same period of 2023[39]. - Net earnings for the six months ended June 30, 2024, increased to 44,508,000, up from 34,665,000inthesameperiodof2023,representingagrowthof28.334,665,000 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 242,443thousandinthesameperiodof2023[25].−Netcashflowsusedininvestingactivitiesforthefirstsixmonthsof2024were242,443 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)thousandin2023[25].−Cashflowsfromfinancingactivitiesshowedanetincreaseof(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 291,382thousandforthesameperiodin2023,reflectingagrowthofapproximately12.3291,382 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 7,640thousandattheendofJune30,2023,markinganincreaseofapproximately166.57,640 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 200millioninSeniorUnsecuredNotesonApril28,2023[16].−PNMR′s200 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 500milliontermloanmaturesonJune30,2026[16].−Thecompanyreportedadecreaseinaccountspayableto500 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 205,175thousandattheendof2023,whichisareductionofapproximately31.6205,175 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 960,000thousandattheendof2023,representinganincreaseofabout10.9960,000 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 7,842,025thousandattheendof2023,indicatinganincreaseofapproximately3.57,842,025 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 2,351,460,000inJune2024,representinganincreaseofabout14.02,351,460,000 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 787,110thousandattheendof2023,reflectingagrowthofabout7.7787,110 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 2,399,051thousandattheendof2023,indicatingagrowthofabout2.22,399,051 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 63,353thousandforthesameperiodin2023,reflectinganincreaseofapproximately10.063,353 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 0.3675pershareforQ22023[70].RegulatoryandCompliance−TheEnergyTransitionActmandatesthatNewMexicoutilitiesachievearenewableportfolioof400.3675 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 5.8millionforthethreemonthsendedJune30,2024[113].−PNM′sfuturegenerationportfoliowillbesignificantlyimpactedbytheEnergyTransitionAct,particularlyregardingtheretirementofcoal−firedfacilities[196].Miscellaneous−PNMfiledashelfregistrationstatementonMay16,2023,fortheissuanceofupto5.8 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].