PNM Resources Introduces COVID Customer Relief Programs, Raises 2020 Ongoing Earnings Guidance

Rhea-AI Summary

Public Service Company of New Mexico (PNM) is launching COVID Customer Relief Programs to aid income-qualified residential and small business customers affected by the pandemic, funded by a $2.0 million contribution. PNM has raised its 2020 ongoing earnings guidance to a range of $2.23 - $2.31, with a midpoint of $2.27, reflecting higher residential loads and debt refinancing savings. The third quarter earnings call on October 30, 2020 will provide further details, including investment plans and earnings updates.

Positive

• Raised ongoing earnings guidance to $2.23 - $2.31, midpoint $2.27, up from $2.16 - $2.26.
• Higher residential loads due to COVID-19 and summer temperatures are driving earnings growth.
• Interest savings from refinancing debt are expected to benefit customers in the long term.
• Earnings growth target set at 5-6% through 2023.

Negative

• None.

ALBUQUERQUE, N.M., Oct. 1, 2020 /PRNewswire/ -- Public Service Company of New Mexico (PNM), the wholly-owned regulated New Mexico subsidiary of PNM Resources (NYSE: PNM) is announcing additional efforts to support customers this year with the introduction of its COVID Customer Relief Programs. The programs are being funded with a $2.0 million company contribution to support income-qualified residential customers and small business customers who have been impacted by the financial challenges created by the pandemic and have past due electric bills.

Customer programs demonstrate the Company's support for customers and communities as part of its commitment to environmental, social and governance (ESG) principles. This support has become increasingly essential to customers in response to COVID-19. Other customer programs modified during the pandemic include implementation of more flexible customer payment plans, transition to online customer assistance programs and implementation of a virtual PNM Home Energy Checkup program, one of the many energy efficiency programs designed to reduce customers' electricity usage. PNM was the first utility in the Southwest to begin providing a virtual option for this type of program.

"People are the core of our business and our communities," said Pat Vincent-Collawn, PNM Resources' chairman, president and CEO. "Our teams moved quickly this year to ensure our long-standing customer programs remained available during the pandemic to help customers access financial assistance and manage their energy usage as temperatures and energy usage peaked. As pandemic impacts continue into fall, we look for additional ways to support customers during this unprecedented time and are creating new programs to help pay down summer electric bills. Our communities are stronger when our customers are supported."

The third quarter earnings call will highlight the Company's continued focus on ESG principles that benefit customers, communities and the environment.

PNM Resources 2020 Ongoing Earnings Guidance
PNM Resources is raising its 2020 ongoing earnings guidance to $2.23 - $2.31, targeting a midpoint of $2.27, compared to its previous range of $2.16 - $2.26. The increase reflects higher residential loads resulting from COVID-19 and hotter summer temperatures, along with interest savings from the refinancing of debt in 2020 that will benefit customers long-term. Third quarter results support the guidance revision and the Company's earnings growth target of five to six percent through 2023.

PNM Resources 2020 Third Quarter Earnings Call
More information will be provided during the Company's 2020 third quarter earnings announcement on October 30, 2020, including more details on the guidance along with an update to investment plans and earnings power to incorporate 2024. The earnings news release will be issued at 6:30 a.m. Eastern and also will be posted on the company's website at www.PNMResources.com. Management will host a live conference call at 11 a.m. Eastern to discuss financial results and other company updates.

Investors and analysts can participate in the live conference call by pre-registering using the following link to receive a special dial-in number and PIN: http://dpregister.com/10148353.

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 referencing "the PNM Resources third quarter conference call." Listeners are encouraged to visit the website at least 30 minutes before the event to register, download and install any necessary audio software.

A live webcast of the call will be available at http://www.pnmresources.com/investors/events.cfm.

Background:
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2019 consolidated operating revenues of $1.5 billion. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,811 megawatts of generation capacity and provides electricity to approximately 790,000 homes and businesses in New Mexico and Texas. For more information, visit the company's website at www.PNMResources.com.

CONTACTS:
Analysts
Lisa Goodman
(505) 241-2160

Media
Ray Sandoval
(505) 241-2782

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 are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. PNMR, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR's, PNM's, and TNMP's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company's Form 10-K and Form 10-Q filings with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.

Non-GAAP Financial Measures
GAAP refers to generally accepted accounting principles in the U.S. Ongoing earnings is a non-GAAP financial measure that excludes the impact of net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, pension expense related to previously disposed of gas distribution business, and certain non-recurring, infrequent, and other items that are not indicative of fundamental changes in the earnings capacity of the Company's operations. The Company uses ongoing earnings and ongoing earnings per diluted share (or ongoing diluted earnings per share) to evaluate the operations of the Company and to establish goals, including those used for certain aspects of incentive compensation, for management and employees. While the Company believes these financial measures are appropriate and useful for investors, they are not measures presented in accordance with GAAP. The Company does not intend for these measures, or any piece of these measures, to represent any financial measure as defined by GAAP. Furthermore, the Company's calculations of these measures as presented may or may not be comparable to similarly titled measures used by other companies. The Company uses ongoing earnings guidance to provide investors with management's expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. Since the future differences between GAAP and ongoing earnings are frequently outside the control of the Company, management is generally not able to estimate the impact of the reconciling items between forecasted GAAP net earnings and ongoing earnings guidance, nor their probable impact on GAAP net earnings without unreasonable effort, therefore, management is generally not able to provide a corresponding GAAP equivalent for ongoing earnings guidance.

 

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SOURCE PNM Resources, Inc.

FAQ

What is PNM's ongoing earnings guidance for 2020?

PNM has raised its ongoing earnings guidance for 2020 to a range of $2.23 - $2.31, with a midpoint of $2.27.

When will PNM announce its third quarter earnings results?

PNM will announce its third quarter earnings results on October 30, 2020.

What financial impact does the COVID Customer Relief Programs have?

The COVID Customer Relief Programs are funded by a $2.0 million contribution, aimed at helping customers with past due electric bills.

How is PNM supporting customers during the pandemic?

PNM is providing flexible payment plans and virtual assistance programs to support customers impacted by COVID-19.