TXNM

Management Statement and Operational Highlights

• Financial Results: Ongoing earnings for Q1 this year are $0.19, keeping on track with 2025 expectations. Affirming guidance for 2025 at a range of $2.74 to $2.84 per share and maintaining long-term EPS growth target of 7% to 9%.
• TNMP Highlights: Rate base growth supported by timely recovery of investments. System resiliency plan approved with $546 million in capital improvements. Interconnection requests up 6%, data center load increased 70 MW with more expected. Capital plan remains focused on supporting growth in Texas with reliable and resilient grid.
• PNM Highlights: Hearing Examiner's recommendation to approve unopposed stipulation in rate review. New Mexico legislative actions, including site readiness bills and wildfire task force creation. Capital plans for both TNMP and PNM unchanged from February, with PNM focusing on transmission development and RFP for new resources.

Guidance

• Affirmed 2025 EPS range of $2.74 to $2.84 per share.
• Maintained long-term EPS growth target of 7% to 9% from 2025 through 2029.
• Anticipates rate implementation in New Mexico in July, with TNMP targeting general rate review filing in Q4 and new rates implementation in Q2 next year.

Segment Performance

• TNMP: Rate base growth supported by timely recovery of investments. First quarter system resiliency plan approved, allowing investment and recovery of $546 million in capital improvements. Interconnection requests were up 6% compared to the first quarter of last year. Demand-based load from traditional customers and data centers had a strong start, with data center load picking up 70 megawatts in the first quarter and existing customers expected to increase demand by another 150 megawatts by year-end.
• PNM: Hearing Examiner's recommendation to approve the unopposed stipulation in rate review is a key highlight. New Mexico's legislative session saw key bills signed, including site readiness bills and a wildfire task force creation. The unopposed stipulation in rate case in New Mexico continues to move forward, with hearings completed in February and hearing examiners recommending approval in April, expected to be decided in May or June ahead of July 1 rate implementation date.

Risks

• Regulatory uncertainties, such as potential changes in legislation or commission decisions that could affect rate recovery and capital plans.

Question and Answer

• Q: About House Bill 5247 and its impact on TNMP's earned ROEs and capital acceleration A: Pat Vincent-Collawn discussed it as beneficial, helping eliminate regulatory lag
• Q: On TNMP base rate case drivers and balance sheet equity ratio A: Don Tarry said rate design and capital structure are drivers, TNMP's equity ratio is 45%
• Q: On TNMP Permian Basin CapEx execution timeline and 765 kV projects A: Don Tarry confident in executing $750M CapEx, no indirect CapEx from 765 kV projects known
• Q: On refinancing parent level debt A: Lisa Eden said term loan majority not expiring until mid-next year, ample time to refinance
• Q: On New Mexico RFP process, tariffs impact, and transmission investment A: Don Tarry discussed RFP progress, Pat Vincent-Collawn said tariffs have ~2% impact on capital plan, Don Tarry mentioned ~$4B transmission investment needed over 20 years
• Q: On Texas legislation HB 5247 qualification for TNMP and Billy Joel message A: Don Tarry confirmed TNMP qualifies, Pat Vincent-Collawn said no hidden message, just big Billy Joel fans