#United States #TXNM Energy #Albuquerque #earnings report #growth outlook

TXNM Energy's 2024 Earnings Report

TXNM Energy (NYSE: TXNM) has reported its earnings results for 2024, revealing significant improvement and a promising outlook. The company announced a GAAP earnings of $2.67 per diluted share, along with ongoing earnings achieving an impressive $2.74 per diluted share, aligning with their guidance expectations.

Pat Vincent-Collawn, the Chairman and CEO of TXNM Energy, commented on these results, stating, "Our financial expectations are driven by the continued expansion of grid infrastructure supporting growth and reliability in our Texas service area. In New Mexico, we are proposing a settlement in our rate review to help our customers manage the impact effectively."

Enhanced Growth Forecasts

TXNM Energy has increased its long-term earnings growth target to between 7% and 9%. This strategic move demonstrates the company’s commitment to optimizing its operations and capitalizing on growth opportunities in the energy sector.

The company rolled forward its five-year capital investment plan, which now spans 2025 to 2029, rising the expected investment to $7.8 billion—this marks a substantial increase of 26% from the previous plan. These investments will be largely directed towards Texas transmission projects, adhering to recommendations from the ERCOT Permian Basin Reliability Study. The regulated rate base is projected to grow by 12% compared to initial 2025 levels, solidifying TXNM Energy's focus on enhancing service delivery in both Texas and New Mexico.

2025 Earnings Guidance

For 2025, TXNM Energy has introduced guidance for ongoing earnings at a range of $2.74 to $2.84 per diluted share. This reflects the strong growth trajectory of their Texas-based operations and the mid-year rollout of PNM's customer rate phase-in. The anticipated increase in earnings reflects management's confidence regarding continued growth in both sectors.

Notable Earnings Breakdowns

In its financial results, TXNM Energy outlined significant contributions from its subsidiaries:
1. PNM: For 2024, PNM achieved GAAP earnings of $2.12 per share and ongoing earnings of $2.16 per share. The increase can be attributed to enhanced customer usage and new rate implementations.
2. TNMP: Reported GAAP earnings of $1.14 per share, with ongoing earnings similarly improving. Increased rate recovery through their Transmission Cost of Service (TCOS) aided in offsetting certain operational costs.
3. Corporate and Other: Showed a decline in performance, indicating ongoing adjustments needed.

Overall, TXNM Energy's consolidated earnings for 2024 showed a remarkable recovery from the previous year, attributed to improved operational efficiencies and strategic investments.

Future Outlook and Conference Call

Looking ahead, TXNM Energy is poised for robust growth. The company is set to discuss further details during a live conference call scheduled for 11 A.M. Eastern on February 21st. Pat Vincent-Collawn, alongside other executives, will provide insights into earnings forecasts and the company's strategic direction going forward. Interested parties can register to participate via the official TXNM Energy investor relations website.

In conclusion, TXNM Energy's 2024 earnings report and the associated growth targets highlight a positive trajectory for the company, with strong leadership at the helm and a clear vision for the future of energy in Texas and New Mexico.