The management of PNM Resources (NYSE: PNM) met with analysts and investors in New York and Baltimore a few months ago. The company’s management is expected to confirm its consolidated earnings guidance for 2022 and 2023 of $2.50 to $2.60 and $2.60 to $2.75 per diluted share, respectively. The company’s website provides a link to presentation materials at pnmresources.com/investors/events.cfm.
Background:
In 2021, PNM Resources (NYSE: PNM) is expected to report consolidated operating revenues of $1.8 billion. The company’s regulated utilities, PNM and TNMP, provide electricity to approximately 800,000 customers in New Mexico and Texas. In order to achieve 100% emission-free energy by 2040, PNM provides its customers with a diverse mix of generation and purchased energy resources totaling 3.1 gigawatts.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
A statement about PNM Resources, Inc. (“PNMR”), Public Service Company of New Mexico (“PNM”), or Texas-New Mexico Power Company (“TNMP”) (collectively, the “Company”) that relates to future events, projections, estimates, intentions, goals, targets, and strategies, including preliminary financial results and earnings guidance, is made in accordance with the Private Securities Litigation Reform Act of 1995.
Please note that all forward-looking statements are based on current expectations and estimates and are applicable only as of the date of this report. There is no obligation on the part of PNMR, PNM, and TNMP to update this information.
It is important to note that PNMR, PNM, and TNMP caution readers not to place undue reliance on these forward-looking statements because actual results may differ materially from those expressed or implied by these forward-looking statements.
PNM, PNMR, and TNMP’s business, financial condition, cash flow, and operating results are influenced by many factors beyond their control, which can cause actual results to differ from those expressed or implied in the forward-looking statements.
Furthermore, there are risks and uncertainties associated with the proposed acquisition of us by AVANGRID, which may adversely affect our business, future opportunities, employees, and common stock, including, but not limited to:
(i) The expected timing and the likelihood of completion of the pending Merger, as well as the timing, receipt, and terms and conditions of any remaining government and regulatory approvals that could reduce anticipated benefits or cause the parties to abandon the transaction.
(ii) Any event, change, or other circumstance which could cause the Merger Agreement to be terminated
(iii) Whether the parties will be able to satisfy the conditions to the proposed merger in a timely manner or not
(iv) The possibility that the proposed transaction could adversely affect PNMR’s ability to hire and retain key personnel, maintain relationships with its customers and suppliers, and its operating results and overall operations.
It is important to read the Company’s Form 10-K, and Form 10-Q filings with the Securities and Exchange Commission for additional information regarding risk factors and other important factors affecting forward-looking statements. These factors are specifically incorporated by reference herein.
Non-GAAP Financial Measures
In the United States, GAAP refers to generally accepted accounting principles. As a non-GAAP financial measure, ongoing earnings excludes net unrealized mark-to-market gains and losses on economic hedges, net unrealized gains and losses on investment securities, pension expense resulting from previously disposed of gas distribution businesses, and certain non-recurring, infrequent, and other items not indicative of fundamental changes in the earnings capacity of the Company’s operations.
To evaluate the Company’s operations and set goals for management and employees, including certain aspects of incentive compensation, ongoing earnings, and earnings per diluted share, are used. In spite of the fact that the Company believes these financial measures to be appropriate and useful for investors, they are not measured in accordance with GAAP. Neither these measures nor any part of them is intended to represent any financial measure as defined by GAAP.
In addition, the Company’s calculations of these measures may or may not be comparable to those of other companies that use similarly titled measures. In order to communicate management’s expectation of continuing financial performance, the Company provides investors with ongoing earnings guidance.
Even though the Company considers ongoing earnings guidance an appropriate measure, it is not a measure GAAP requires. According to GAAP, the Company does not intend for ongoing earnings guidance to represent an expectation of net earnings.
Due to the fact that the future differences between GAAP and ongoing earnings are frequently outside the Company’s control, management cannot estimate the impact of reconciling items between forecasted GAAP net earnings and ongoing earnings guidance, nor their probable impact on GAAP net earnings without unreasonable effort. Therefore, management generally cannot provide a corresponding GAAP equivalent for ongoing earnings guidance.
