PNM Resources, Inc. - PNM STOCK NEWS

The New Mexico Public Regulation Commission (NMPRC) has unanimously rejected the merger agreement between PNM Resources (NYSE: PNM) and AVANGRID, Inc., following a vote of 5-0. This decision comes after a previous denial of a request for oral arguments on the matter. CEO Pat Vincent-Collawn expressed disappointment but emphasized their focus on customer service and shareholder value. With five federal agencies previously approving the merger, the NMPRC's rejection leaves a critical hurdle for the transaction, initially filed in November 2020.

The Board of Directors of Public Service Company of New Mexico, a subsidiary of PNM Resources (NYSE: PNM), declared a quarterly preferred stock dividend of $1.145 per share. This 4.58% cumulative preferred stock dividend is payable on January 14, 2022 to shareholders of record by the close of business on December 27, 2021. PNM Resources operates with 2020 consolidated revenues of $1.5 billion, providing electricity to approximately 800,000 homes and businesses in New Mexico and Texas, with a commitment to achieving 100% emissions-free energy by 2040.

On December 2, 2021, PNM Resources (NYSE: PNM) and AVANGRID (NYSE: AGR) held a news conference to address concerns regarding their proposed merger. Key stakeholders, including various New Mexico organizations, expressed strong support for the merger, highlighting anticipated benefits such as $94 million in customer advantages and a $300 million economic impact. PNM's CEO emphasized the merger's role in achieving renewable energy goals, while AVANGRID executives stressed their commitment to ethical management and local governance. The New Mexico Attorney General called the merger a historic opportunity for the state.

The New Mexico Public Regulation Commission (NMPRC) has commenced discussions on the merger application between PNM Resources (NYSE: PNM) and AVANGRID, Inc. During the meeting, a Hearing Examiner's recommendation was presented, but criticisms arose regarding the incomplete representation of merger benefits. Pat Vincent-Collawn, PNM's CEO, expressed disappointment and emphasized the importance of a balanced review. The Commission intends to address additional filings related to the merger in future meetings, aiming to ensure the transaction's potential benefits for New Mexicans are duly considered.

The New Mexico Public Regulation Commission's Hearing Examiner recommended approval for PNM Resources' application to abandon its minority stake in the Four Corners Power Plant. This would allow PNM to exit coal-fired power operations by 2024, recover undepreciated amounts through securitization, and replace coal with cleaner energy sources. The transition could yield up to $300 million in customer savings and a reduction in emissions by 20-25%. A final decision by the NMPRC is expected by December 15, 2021.

PNM Resources reported its Q3 2021 earnings, showing GAAP earnings of $1.32 per diluted share, down from $1.52 in Q3 2020. Ongoing earnings rose to $1.37 per diluted share, compared to $1.40 last year. The merger with AVANGRID remains on track for 2021 closing pending regulatory approval. Total earnings for Q3 2021 were $113.3 million, a decrease from $121.8 million in Q3 2020. While increased transmission demand supported revenue, higher operational spending and taxes impacted net earnings.

On September 21, 2021, PNM Resources' Board of Directors declared a quarterly dividend of $0.3275 per share on its common stock. This dividend will be payable on November 12, 2021 to shareholders who are on record after November 1, 2021. PNM Resources, based in Albuquerque, NM, reported consolidated operating revenues of $1.5 billion in 2020 and serves approximately 800,000 homes and businesses in NM and TX with a goal of achieving 100% emissions-free energy by 2040.

On September 8, 2021, PNM Resources (NYSE: PNM) announced a quarterly dividend of $1.145 per share for its 4.58% series of cumulative preferred stock. This dividend is payable on October 15, 2021, to shareholders on record as of the close of business on October 1, 2021. PNM Resources provides electricity to about 800,000 customers across New Mexico and Texas, generating 2.8 gigawatts of capacity. The company aims for 100% emissions-free energy by 2040.

AVANGRID (NYSE:AGR) and PNM Resources (NYSE:PNM) reported strong support for their merger, with nearly all 24 intervenors in the NMPRC proceedings either endorsing or not opposing the agreement. The merger promises customer benefits totaling $94 million, including $67 million in rate credits and $10 million for COVID-related relief. Economic development is projected to include 150 new jobs and $25 million in funding for local initiatives. Six governmental approvals have been secured, with NMPRC as the final step needed for completion.