TXNM Energy Reports Second Quarter 2025 Results
-
2025 second quarter GAAP earnings of
$0.22 per diluted share -
2025 second quarter ongoing earnings of
$0.25 per diluted share - Proposed transaction with Blackstone Infrastructure expected to close in the second half of 2026
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Q2 2025 |
Q2 2024 |
YTD 2025 |
YTD 2024 |
GAAP net earnings attributable |
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GAAP diluted EPS |
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Ongoing net earnings |
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Ongoing diluted EPS |
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"During the second quarter, we achieved constructive regulatory outcomes with significant benefits for our customers, including an unopposed rate stipulation at PNM," said
TRANSACTION UPDATE
On
The transaction is subject to shareholder approval, along with federal and state-level approvals, and is expected to close in the second half of 2026.
REGULATORY UPDATE
TNMP's first Distribution Cost Recovery Factor ("DCRF") filing for 2025 was approved and implemented in the second quarter, providing recovery for
At PNM, the first phase of PNM's previously approved
SEGMENT REPORTING OF 2025 SECOND QUARTER EARNINGS
-
PNM – a vertically integrated electric utility in
New Mexico with distribution, transmission and generation assets. -
TNMP – an electric transmission and distribution utility in
Texas . -
Corporate and Other
– reflects the
TXNM Energy holding company and other subsidiaries.
EPS Results by Segment
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GAAP Diluted EPS |
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Ongoing Diluted EPS |
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Q2 2025 |
Q2 2024 |
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Q2 2025 |
Q2 2024 |
PNM |
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TNMP |
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Corporate and Other |
( |
( |
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( |
( |
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Consolidated |
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Net changes to GAAP and ongoing earnings in the second quarter of 2025 compared to the second quarter of 2024 include:
- PNM: Higher retail load and the timing of plant outages was more than offset by lower weather-related usage, increased insurance premiums, the timing of excess deferred income taxes, higher depreciation, property tax and interest expense associated with new capital investments and increased demand charges from energy storage agreements added in late 2024.
- TNMP: Rate recovery through the Distribution Cost Recovery Factor (DCRF) rate mechanism and higher retail load were partially offset by lower weather-related usage and depreciation and interest expense associated with new capital investments.
GAAP and ongoing earnings per share were reduced in the second quarter of 2025 by additional shares issued in
In addition, GAAP earnings in the second quarter of 2025 included
Background:
CONTACTS: |
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Analysts |
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Media |
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Lisa Goodman |
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Corporate Communications |
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(505) 241-2160 |
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(505) 241-2743 |
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this press release 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. These forward-looking statements generally include statements regarding the potential transaction between
Non-GAAP Financial Measures
GAAP refers to generally accepted accounting principles in the
Schedule 1 Reconciliation of GAAP to Ongoing Earnings (Unaudited) |
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PNM |
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TNMP |
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Corporate |
|
TXNM |
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|
(in thousands) |
||||||
Three Months Ended |
|
|
|
|
|
|
|
|
GAAP Net Earnings (Loss) Attributable to TXNM |
|
$ 24,362 |
|
$ 20,968 |
|
$ (23,754) |
|
$ 21,576 |
Adjusting items before income tax effects: |
|
|
|
|
|
|
|
|
Net change in unrealized (gains) losses on investment securities2a |
|
(16,617) |
|
— |
|
— |
|
(16,617) |
Rate Request settlement2b |
|
1,500 |
|
— |
|
— |
|
1,500 |
Pension expense related to previously disposed of gas distribution business2c |
|
784 |
|
— |
|
— |
|
784 |
Process improvement initiatives2d |
|
227 |
|
— |
|
155 |
|
382 |
Merger related costs2e |
|
17 |
|
6,771 |
|
12,751 |
|
19,539 |
Total adjustments before income tax effects |
|
(14,089) |
|
6,771 |
|
12,906 |
|
5,588 |
Income tax impact of above adjustments1 |
|
3,578 |
|
(1,422) |
|
(3,278) |
|
(1,122) |
Timing of statutory and effective tax rates on non-recurring items4 |
|
(2,753) |
|
84 |
|
1,129 |
|
(1,540) |
Total income tax impacts3 |
|
825 |
|
(1,338) |
|
(2,149) |
|
(2,662) |
Adjusting items, net of income taxes |
|
(13,264) |
|
5,433 |
|
10,757 |
|
2,926 |
Ongoing Earnings (Loss) |
|
$ 11,098 |
|
$ 26,401 |
|
$ (12,997) |
|
$ 24,502 |
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|
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|
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Six Months Ended |
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|
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GAAP Net Earnings (Loss) Attributable to TXNM |
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$ 25,307 |
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$ 43,251 |
|
$ (38,059) |
|
$ 30,499 |
Adjusting items before income tax effects: |
|
|
|
|
|
|
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Net change in unrealized (gains) losses on investment securities2a |
|
(8,383) |
|
— |
|
— |
|
(8,383) |
Rate Request settlement2b |
|
1,500 |
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— |
|
— |
|
1,500 |
Pension expense related to previously disposed of gas distribution business2c |
|
1,568 |
|
— |
|
— |
|
1,568 |
Process improvement initiatives2d |
|
443 |
|
— |
|
155 |
|
598 |
Merger related costs2e |
|
17 |
|
6,771 |
|
14,364 |
|
21,152 |
Total adjustments before income tax effects |
|
(4,855) |
|
6,771 |
|
14,519 |
|
16,435 |
Income tax impact of above adjustments1 |
|
1,233 |
|
(1,422) |
|
(3,689) |
|
(3,878) |
Timing of statutory and effective tax rates on non-recurring items4 |
|
(1,668) |
|
25 |
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1,215 |
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(428) |
Total income tax impacts3 |
|
(435) |
|
(1,397) |
|
(2,474) |
|
(4,306) |
Adjusting items, net of income taxes |
|
(5,290) |
|
5,374 |
|
12,045 |
|
12,129 |
Ongoing Earnings (Loss) |
|
$ 20,017 |
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$ 48,625 |
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$ (26,014) |
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$ 42,628 |
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1 Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments |
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2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statements of Earnings as follows: |
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a Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements |
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b Increases in "Administrative and general" |
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c Increases in "Other (deductions)" |
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d Increases in "Energy production costs" of less than |
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e Increases in "Administrative and general" of |
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3 Increases (decreases) in "Income Taxes (Benefits)" |
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4 Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average |
Schedule 2 Reconciliation of GAAP to Ongoing Earnings (Unaudited) |
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PNM |
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TNMP |
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Corporate |
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TXNM |
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(in thousands) |
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Three Months Ended |
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GAAP Net Earnings (Loss) Attributable to TXNM |
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$ 30,787 |
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$ 29,925 |
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$ (12,663) |
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$ 48,049 |
Adjusting items before income tax effects: |
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|
|
|
|
|
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Net change in unrealized (gains) losses on investment securities2a |
|
5,573 |
|
— |
|
— |
|
5,573 |
Regulatory disallowances2b |
|
246 |
|
— |
|
— |
|
246 |
Pension expense related to previously disposed of gas distribution business2c |
|
433 |
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— |
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— |
|
433 |
Merger related costs2d |
|
131 |
|
(26) |
|
800 |
|
905 |
Total adjustments before income tax effects |
|
6,383 |
|
(26) |
|
800 |
|
7,157 |
Income tax impact of above adjustments1 |
|
(1,621) |
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5 |
|
(203) |
|
(1,819) |
Timing of statutory and effective tax rates on non-recurring items5 |
|
1,626 |
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(83) |
|
(593) |
|
950 |
Total income tax impacts4 |
|
5 |
|
(78) |
|
(796) |
|
(869) |
Adjusting items, net of income taxes |
|
6,388 |
|
(104) |
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4 |
|
6,288 |
Ongoing Earnings (Loss) |
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$ 37,175 |
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$ 29,821 |
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$ (12,659) |
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$ 54,337 |
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Six Months Ended |
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|
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GAAP Net Earnings (Loss) Attributable to TXNM |
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$ 72,707 |
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$ 44,508 |
|
$ (21,976) |
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$ 95,239 |
Adjusting items before income tax effects: |
|
|
|
|
|
|
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Net change in unrealized (gains) losses on investment securities2a |
|
(6,658) |
|
— |
|
— |
|
(6,658) |
Regulatory disallowances2b |
|
4,705 |
|
— |
|
— |
|
4,705 |
Pension expense related to previously disposed of gas distribution business2c |
|
866 |
|
— |
|
— |
|
866 |
Merger related costs2d |
|
134 |
|
(22) |
|
1,650 |
|
1,762 |
Sale of NMRD3 |
|
— |
|
— |
|
15,097 |
|
15,097 |
Total adjustments before income tax effects |
|
(953) |
|
(22) |
|
16,747 |
|
15,772 |
Income tax impact of above adjustments1 |
|
243 |
|
4 |
|
(4,254) |
|
(4,007) |
Sale of NMRD3 |
|
— |
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— |
|
(15,712) |
|
(15,712) |
Total income tax impacts4 |
|
243 |
|
4 |
|
(19,966) |
|
(19,719) |
Adjusting items, net of income taxes |
|
(710) |
|
(18) |
|
(3,219) |
|
(3,947) |
Ongoing Earnings (Loss) |
|
$ 71,997 |
|
$ 44,490 |
|
$ (25,195) |
|
$ 91,292 |
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1Tax effects calculated using a tax rate of 21.0% for TNMP and 25.4% for other segments |
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2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statement of Earnings as follows: |
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a Changes in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements |
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b Decreases in "Electric Operating Revenue" of |
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c Increases in "Other (deductions)" |
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d Increases (decreases) in "Administrative and general" |
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3 Net gain of |
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4 Increases (decreases) in "Income Taxes (Benefits)" |
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5 Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average |
Schedule 3 Reconciliation of GAAP to Ongoing Earnings Per Diluted Share (Unaudited) |
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PNM |
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TNMP |
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Corporate |
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TXNM |
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(per diluted share) |
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Three Months Ended |
|
|
|
|
|
|
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GAAP Net Earnings (Loss) Attributable to TXNM |
|
$ 0.25 |
|
$ 0.22 |
|
$ (0.25) |
|
$ 0.22 |
Adjusting items, net of income tax effects: |
|
|
|
|
|
|
|
|
Net change in unrealized (gains) losses on investment securities |
|
(0.13) |
|
— |
|
— |
|
(0.13) |
Rate Request settlement |
|
0.01 |
|
— |
|
— |
|
0.01 |
Pension expense related to previously disposed of gas distribution business |
|
0.01 |
|
— |
|
— |
|
0.01 |
Merger related costs |
|
— |
|
0.05 |
|
0.10 |
|
0.15 |
Timing of statutory and effective tax rates on non-recurring items |
|
(0.02) |
|
— |
|
0.01 |
|
(0.01) |
Total Adjustments |
|
(0.13) |
|
0.05 |
|
0.11 |
|
0.03 |
Ongoing Earnings (Loss) |
|
$ 0.12 |
|
$ 0.27 |
|
$ (0.14) |
|
$ 0.25 |
Average Diluted Shares Outstanding: 96,196,269 |
|
|
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|
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|
|
|
|
|
|
|
|
|
|
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Six Months Ended |
|
|
|
|
|
|
|
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GAAP Net Earnings (Loss) Attributable to TXNM |
|
$ 0.27 |
|
$ 0.46 |
|
$ (0.41) |
|
$ 0.32 |
Adjusting items, net of income tax effects: |
|
|
|
|
|
|
|
|
Net change in unrealized (gains) losses on investment securities |
|
(0.07) |
|
— |
|
— |
|
(0.07) |
Rate Request settlement |
|
0.01 |
|
— |
|
— |
|
0.01 |
Pension expense related to previously disposed of gas distribution business |
|
0.01 |
|
— |
|
— |
|
0.01 |
Process improvement initiatives |
|
— |
|
— |
|
0.01 |
|
0.01 |
Merger related costs |
|
— |
|
0.05 |
|
0.12 |
|
0.17 |
Timing of statutory and effective tax rates on non-recurring items |
|
(0.01) |
|
— |
|
0.01 |
|
— |
Total Adjustments |
|
(0.06) |
|
0.05 |
|
0.14 |
|
0.13 |
Ongoing Earnings (Loss) |
|
$ 0.21 |
|
$ 0.51 |
|
$ (0.27) |
|
$ 0.45 |
Average Diluted Shares Outstanding: 94,637,324 |
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Schedule 4 Reconciliation of GAAP to Ongoing Earnings Per Diluted Share (Unaudited) |
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PNM |
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TNMP |
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Corporate |
|
TXNM |
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|
(per diluted share) |
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Three Months Ended |
|
|
|
|
|
|
|
|
GAAP Net Earnings (Loss) Attributable to TXNM |
|
$ 0.34 |
|
$ 0.33 |
|
$ (0.14) |
|
$ 0.53 |
Adjusting items, net of income tax effects: |
|
|
|
|
|
|
|
|
Net change in unrealized (gains) losses on investment securities |
|
0.05 |
|
— |
|
— |
|
0.05 |
Merger related costs |
|
— |
|
— |
|
0.01 |
|
0.01 |
Timing of statutory and effective tax rates on non-recurring items |
|
0.02 |
|
— |
|
(0.01) |
|
0.01 |
Total Adjustments |
|
0.07 |
|
— |
|
— |
|
0.07 |
Ongoing Earnings (Loss) |
|
$ 0.41 |
|
$ 0.33 |
|
$ (0.14) |
|
$ 0.60 |
Average Diluted Shares Outstanding: 90,552,082 |
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|||
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|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
GAAP Net Earnings (Loss) Attributable to TXNM |
|
$ 0.80 |
|
$ 0.49 |
|
$ (0.24) |
|
$ 1.05 |
Adjusting items, net of income tax effects: |
|
|
|
|
|
|
|
|
Net change in unrealized (gains) losses on investment securities |
|
(0.05) |
|
— |
|
— |
|
(0.05) |
Sale of NMRD |
|
— |
|
— |
|
(0.05) |
|
(0.05) |
Regulatory disallowances |
|
0.04 |
|
— |
|
— |
|
0.04 |
Pension expense related to previously disposed of gas distribution business |
|
0.01 |
|
— |
|
— |
|
0.01 |
Merger related costs |
|
— |
|
— |
|
0.01 |
|
0.01 |
Total Adjustments |
|
— |
|
— |
|
(0.04) |
|
(0.04) |
Ongoing Earnings (Loss) |
|
$ 0.80 |
|
$ 0.49 |
|
$ (0.28) |
|
$ 1.01 |
Average Diluted Shares Outstanding: 90,532,986 |
|
|
|
|
|
Schedule 5 Condensed Consolidated Statements of Earnings (Unaudited) |
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Three Months Ended |
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Six Months Ended |
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|
2025 |
|
2024 |
|
2025 |
|
2024 |
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(In thousands, except per share amounts) |
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|
|
|
|
|
|
|
|
Electric Operating Revenues |
$ 502,420 |
|
$ 488,102 |
|
$ 985,212 |
|
$ 924,979 |
Operating Expenses: |
|
|
|
|
|
|
|
Cost of energy |
167,622 |
|
154,706 |
|
336,804 |
|
287,010 |
Administrative and general |
75,991 |
|
59,581 |
|
136,760 |
|
115,008 |
Energy production costs |
26,081 |
|
24,584 |
|
50,627 |
|
46,796 |
Regulatory disallowances |
— |
|
— |
|
— |
|
4,459 |
Depreciation and amortization |
105,235 |
|
94,413 |
|
209,786 |
|
187,600 |
Transmission and distribution costs |
26,461 |
|
25,051 |
|
51,966 |
|
47,815 |
Taxes other than income taxes |
28,329 |
|
24,084 |
|
54,679 |
|
50,018 |
Total operating expenses |
429,719 |
|
382,419 |
|
840,622 |
|
738,706 |
Operating income |
72,701 |
|
105,683 |
|
144,590 |
|
186,273 |
Other Income and Deductions: |
|
|
|
|
|
|
|
Interest income |
3,872 |
|
4,470 |
|
8,119 |
|
9,050 |
Gains on investment securities |
23,556 |
|
558 |
|
22,315 |
|
18,556 |
Other income |
5,704 |
|
7,688 |
|
10,433 |
|
12,599 |
Other (deductions) |
(6,481) |
|
(1,636) |
|
(8,739) |
|
(18,158) |
Net other income and deductions |
26,651 |
|
11,080 |
|
32,128 |
|
22,047 |
Interest Charges |
72,013 |
|
55,828 |
|
135,564 |
|
109,590 |
Earnings before Income Taxes |
27,339 |
|
60,935 |
|
41,154 |
|
98,730 |
Income Taxes (Benefits) |
1,326 |
|
8,971 |
|
2,344 |
|
(3,600) |
Net Earnings |
26,013 |
|
51,964 |
|
38,810 |
|
102,330 |
(Earnings) Attributable to |
(4,305) |
|
(3,783) |
|
(8,047) |
|
(6,827) |
Preferred Stock Dividend Requirements of Subsidiary |
(132) |
|
(132) |
|
(264) |
|
(264) |
Net Earnings Attributable to TXNM |
$ 21,576 |
|
$ 48,049 |
|
$ 30,499 |
|
$ 95,239 |
Net Earnings Attributable to TXNM per Common Share: |
|
|
|
|
|
|
|
Basic |
$ 0.22 |
|
$ 0.53 |
|
$ 0.32 |
|
$ 1.05 |
Diluted |
$ 0.22 |
|
$ 0.53 |
|
$ 0.32 |
|
$ 1.05 |
Dividends Declared per Common Share |
$ 0.4075 |
|
$ 0.3875 |
|
$ 0.8150 |
|
$ 0.7750 |
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