TXNM Energy (TXNM) Q2 Earnings call transcript Jul 31, 2024

PNM Resources, a leading energy company, recently held its second quarter 2024 earnings call, shedding light on its financial performance and future plans. The call, led by CEO Patricia Collawn, provided insights into the company's ongoing financial results, company updates, and future growth initiatives.

Financial Performance and Strategic Updates

PNM Resources reported ongoing earnings of $0.60 for the second quarter, surpassing expectations. The company affirmed its 2024 guidance, with a range of $2.65 to $2.75, and reaffirmed its long-term targets. The company's success can be attributed to its strategic investments in capital projects to serve growing customer demand and the implementation of new retail rates.

Company Updates and Name Change

A significant company update was the announcement of PNM Resources' name change to TXNM Energy. This change reflects the company's growth trajectory, with TNMP becoming its largest jurisdiction. The new name will officially take effect on the first day of trading under the TXNM stock ticker, following approval from shareholders.

System Resiliency and Infrastructure Investments

PNM Resources also addressed recent weather events, including the South Fork and Salt fires in New Mexico and Hurricane Beryl in Texas. The company highlighted its commitment to system resiliency and restoration efforts, with the upcoming system resiliency plan filing in Texas and infrastructure investments in other areas. These initiatives aim to mitigate the impact of extreme weather events and improve the overall reliability of the company's energy infrastructure.

Future Outlook and Investment Plans

Looking ahead, PNM Resources outlined its plans for the remainder of the year, with a focus on capital investments and financing strategies. The company expects to issue an average of $100 million in equity per year to fund planned capital investments through 2028. Additionally, it aims to refinance the remaining portion of its corporate term loans in a similar favorable manner.

Investor Questions and Future Plans

During the Q&A session, analysts raised questions about resource filings, resiliency investments, and the impact of ERCOT's transmission opportunities on PNM Resources' plans. The company provided insights into its approach to resource filings, the role of mobile generation, and its ongoing efforts to improve system resiliency.

Conclusion

PNM Resources' second quarter earnings call presented a positive outlook for the company, with a focus on financial performance, strategic updates, and future growth opportunities. The company's commitment to system resiliency and infrastructure investments underscores its position as a leader in the energy sector. As PNM Resources moves forward with its plans, investors and analysts will closely monitor its progress and the impact of external factors on its growth trajectory.