PNM Resources Reports 2007 First Quarter Earnings.Contribution of Twin Oaks Twin Oaks may refer to any of the following:
Proceeds to Reduce Debt ALBUQUERQUE, N.M. -- PNM Resources PNM Resources NYSE: PNM is an energy holding company based in the U.S. state of New Mexico. Headquartered in Albuquerque, PNM Resources supplies electricity to 725,000 homes and businesses in New Mexico and Texas and natural gas to 471,000 customers in New Mexico through its (NYSE NYSE See: New York Stock Exchange : PNM PNM Public Service Company of New Mexico PNM People's National Movement (Trinidad) PNM Perpustakaan Negara Malaysia (National Library, Malaysia) PNM Price Negotiation Memorandum ) 1(st) QUARTER HIGHLIGHTS * GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). earnings of $0.38 per diluted share * Ongoing earnings of $0.39 per diluted share * First Choice Power customer growth and sales volumes improve earnings * 2007 earnings guidance range affirmed PNM Resources (NYSE: PNM) today reported unaudited first quarter 2007 consolidated ongoing earnings per diluted share of $0.39. The company also reported quarterly GAAP (generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ) earnings of $0.38 per diluted share. Both ongoing and GAAP earnings per diluted share equaled 2006 quarterly results of $0.39 and $0.38, respectively. Ongoing earnings exclude acquisition-related costs and other non-recurring charges and revenue. A reconciliation of GAAP to ongoing earnings is provided on Schedule 1. Quarterly ongoing earnings available for common stock increased 14.2 percent to $30.7 million. However, a 12.6 percent increase in the average number of common shares outstanding resulted in overall ongoing earnings per diluted share to remain the same as the first quarter of 2006. "We continued to demonstrate strong growth in net earnings, although this performance was not reflected in earnings per share results. We saw significant improvement at the Palo Verde Nuclear Generating Station The Palo Verde Nuclear Generating Station, a nuclear power plant located in Wintersburg, Arizona, about 45 miles (80 km) west of central Phoenix, is currently the largest nuclear generation facility in the United States, producing over 30,000 gigawatt hours of electricity annually this quarter," said Jeff Sterba, PNM Resources chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "In addition, we had continued good performance from First Choice Power - the result of its growth strategy in action. Negatively impacting our earnings were increased coal costs and reduced availability at our base load coal plants. "Our energy joint venture is progressing and a strong, core management team is being established. The building blocks soon will be in place for additional growth with the planned contribution of Twin Oaks Power during the second quarter." Palo Verde had strong performance during the quarter with an equivalent availability factor The availability factor of a power plant is the amount of time that it is able to produce electricity over a certain period, divided by the amount of the time in the period. Occasions where only partial capacity is available may or may not be deducted. of 92.5 percent, compared with 70.5 percent during the same period in 2006. However, an extended maintenance outage for Unit 2 at the San Juan San Juan, city, Argentina San Juan (săn wän, Span. sän hwän), city (1991 pop. 353,476), capital of San Juan prov., W Argentina. It is a commercial and industrial center in an agricultural region. Generating Station and forced outages at the Four Corners Plant partially offset Palo Verde's contribution. FIRST QUARTER 2007 SEGMENT REPORTING segment reporting A type of financial reporting in which the firm discloses information by identifiable industry segments. For example, Union Pacific Corporation reports revenues, income, assets, depreciation, and capital expenditures for each of four Regulated Operations PNM - a natural gas and vertically integrated electric and gas utility in New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). with distribution, transmission and generation assets. Electric: Beginning in 2007, the PNM Electric segment includes the territory in southern New Mexico formerly served by Texas-New Mexico Power Co. * PNM Electric reported earnings per diluted share of $0.13, unchanged from the first quarter of 2006. Earnings increased $1.5 million, or 17.6 percent, to $10.3 million and gross margin increased $10.8 million, or 11.0 percent, to $109.3 million. * Increases in earnings and margin were driven primarily by improved Palo Verde performance and a 3.2 percent increase in load growth, which was partially offset by the rising costs to serve increased demand. The addition of TNMP-New Mexico operations also improved earnings. Earnings were reduced by an increase in coal costs, and planned and forced outages at San Juan and Four Corners, respectively. Gas: * PNM Gas reported earnings per diluted share of $0.16, compared with $0.15 during the quarter in 2006. Earnings increased $2.4 million to $12.8 million and gross margin increased $5.0 million to $54.8 million. * Colder weather and customer growth of 2.4 percent were partially offset by continued customer conservation and increased maintenance and repair costs. TNMP TNMP Texas New Mexico Power (Company) - a transmission and distribution company in Texas. Beginning in 2007, the TNMP Electric segment consists only of Texas transmission and distribution operations. * TNMP reported earnings per diluted share of $0.01, compared with $0.02 in 2006. Earnings decreased 19.7 percent to $0.9 million and gross margin decreased slightly to $33.8 million. * The collection of the competitive transition charge, which began in December 2006, increased earnings but was more than offset by the transfer of the southern New Mexico operations, and higher transmission and distribution operating costs operating costs npl → gastos mpl operacionales . Unregulated Operations Wholesale - a business segment consisting of the generation and sale of electricity into wholesale markets. * Wholesale reported quarterly earnings per diluted share of $0.09, compared with $0.13 in 2006. Gross margin increased $21.1 million to $52.5 million. Increased operating and maintenance expenses related to plant outages and the additions of Twin Oaks and the Luna Energy Facility reduced earnings. In addition, during the first quarter of 2006 Wholesale significantly benefited from robust forward sales forward sales npl → ventas fpl a término related to hurricane-driven prices that were not replicated in 2007. * Improved performance at Palo Verde added $0.04 to earnings per diluted share while the addition of Twin Oaks added $0.02 to earnings per diluted share. First Choice Power - a competitive retail electric provider in Texas. * First Choice Power reported quarterly earnings per diluted share of $0.08, compared with $0.01 for 2006. Earnings increased substantially to $5.9 million from $0.8 million and gross margin increased $10.0 million to $24.8 million. * Performance largely was driven by strong business and residential customer growth and a 33.1 percent increase in sales volumes. Corporate/Other - a business segment that reflects costs at the holding company, PNM Resources. The segment includes Avistar and PNMR Services Company, which provides corporate services Activities that combine or consolidate certain enterprise-wide needed support services, provided based on specialized knowledge, best practices, and technology to serve internal (and sometimes external) customers and business partners. to PNM Resources and all of its subsidiaries. * Ongoing earnings per diluted share decreased to $(0.08) in 2007 from $(0.05) in 2006, mainly driven by increased financing charges related to short-term borrowings. GAAP earnings per diluted share also decreased $0.03, from $(0.06) in 2006 to $(0.09) in 2007. TWIN OAKS CONTRIBUTION TO ENERGYCO and EARNINGS GUIDANCE PNM Resources today also provided updates regarding EnergyCo, its joint venture with a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Cascade Investment, L.L.C. Chuck Eldred, PNM Resources senior vice president and CFO See Chief Financial Officer. , said the company expects to contribute the Twin Oaks Power plant to the joint venture on or about June 1, 2007. He said PNM Resources and the Cascade subsidiary have agreed on a fair market value for Twin Oaks of approximately $554 million, which includes two existing power sales agreements and the development rights for a possible 600-megawatt expansion. Under the terms of a non-binding letter of intent, the Cascade subsidiary would make a cash contribution to EnergyCo that is equal to 50 percent of Twin Oaks' fair market value, or approximately $277 million. EnergyCo then would distribute the cash to PNM Resources. Eldred said PNM Resources plans to use the approximate $277 million distribution from EnergyCo to reduce its corporate debt. "Contributing Twin Oaks to EnergyCo will improve PNM Resources' financial position," Eldred said. "It also provides a solid foundation for the future growth of EnergyCo. Twin Oaks brings a stable, dependable revenue source with the potential of additional earnings when the current under-market contract expires Sept. 30." When PNM Resources acquired Twin Oaks in April 2006, it assumed two power sales contracts. The first contract called for the delivery of 100 percent of the plant's 305-megawatt capacity through September 2007. The second contract is for 75 percent of Twin Oaks' output from October 2007 through December 2010. Eldred said the June contribution of Twin Oaks is expected to reduce 2007 earnings per diluted share by approximately $0.05. The stated 2007 ongoing earnings guidance range remains unchanged at $1.80 to $2.00 per diluted share. ENERGYCO MANAGEMENT ADDITION Sterba, who also serves as an EnergyCo board member, said EnergyCo has named its second management team member. Charles Kitowski, who joined First Choice Power in June 2005 as vice president of Portfolio Trading and Energy Supply and for the last year has been co-president of First Choice Power, will serve as EnergyCo's president of Marketing and Trading. Kitowski has more than 15 years of experience in general management, operations and finance in the energy and manufacturing sectors. Prior to joining First Choice Power, he spent more than six years with TXU TXU Texas Utilities (Electric and Gas Company) TXU Transmitter Unit Corporation in various finance and risk management positions, including vice president of Risk Management. He holds a bachelor's degree in mechanical engineering from Texas A&M University, a master's degree master's degree n. An academic degree conferred by a college or university upon those who complete at least one year of prescribed study beyond the bachelor's degree. Noun 1. in material science and engineering from the University of Texas, and a master's degree in business administration from Harvard University Harvard University, mainly at Cambridge, Mass., including Harvard College, the oldest American college. Harvard College Harvard College, originally for men, was founded in 1636 with a grant from the General Court of the Massachusetts Bay Colony. . Kitowski joins Mark Kubow at EnergyCo. Kubow, who most recently served as a vice president at BG Group and launched that company's power business in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , was named EnergyCo president of Generation and Development on April 2. OTHER COMPANY UPDATES * First Choice Power President: Jeff Weiser, who with Kitowski served as co-president of First Choice Power, will now be president of the retail energy provider. Weiser has more than 20 years of experience in general management, sales and marketing, and corporate development, including 11 years in senior management at TXU. Weiser holds a bachelor's degree in economics and Spanish from Northwestern University Northwestern University, mainly at Evanston, Ill.; coeducational; chartered 1851, opened 1855 by Methodists. In 1873 it absorbed Evanston College for Ladies. , as well as a master's degree in finance and marketing from Northwestern's J.L. Kellogg Graduate School of Management. * Investor Relations Investor relations The process by which the corporation communicates with its investors. Director: The company has named Gina Jacobi director of Investor Relations and Shareholder Services. Jacobi has served as director of Modeling and Forecasting for PNM Resources since 2005. She has more than 20 years of experience in financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against and analysis, including serving as director of Finance and Forecasting for TNMP. Jacobi holds a bachelor's degree in management and Spanish from Rice University, and a master's degree in management from Northwestern's J.L. Kellogg Graduate School of Management. * Power Purchase Agreement: PNM has signed a 20-year agreement with Black Hills Corporation to purchase the output of a natural gas-fired power plant to be built in central New Mexico The center of the U.S. state New Mexico. In the center of this region is Albuquerque, the largest city and only metropolitan area. External links
* PNM Gas Rate Case: The company continues to await the recommended decision by a New Mexico Public Regulation Commission hearing examiner An employee of an Administrative Agency who is charged with conducting adjudicative proceedings on matters within the scope of the jurisdiction of the agency. regarding PNM's proposed $20.5 million increase to natural gas rates and services. Once the recommended decision is made, the commissioners must review it with a final decision due no later than June 29. * PNM Electric Rate Case: The procedural schedule regarding PNM's request to increase general electric rates by $68.9 million has been established. Regulatory staff and intervener testimony is due by Aug. 6. A hearing is scheduled for Sept. 5-14 and a final order is due Dec. 23. FIRST QUARTER EARNINGS CALL PNM Resources will conduct its first quarter 2007 earnings conference call on Tuesday, May 8, at 9 a.m. Eastern. Participants within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. call: (866) 831-6267 Participants outside the United States call: (617) 213-8857 Pass code: 53333893 The call will be broadcast live and the presentation available at www.PNMResources.com. A transcript of the call also will be on PNM Resources' Web site as soon as possible. A replay of the conference call will be available through May 15, 2007: Participants within the United States call: (888) 286-8010 Participants outside the United States call: (617) 801-6888 Pass code: 71764615 About PNM Resources PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2006 consolidated operating revenues of $2.5 billion. Through its utility and energy subsidiaries, PNM Resources serves electricity to more than 835,000 homes and businesses in New Mexico and Texas and natural gas to more than 492,000 customers in New Mexico. Its utility subsidiaries are PNM and Texas-New Mexico Power. Other subsidiaries include First Choice Power, a deregulated competitive retail electric provider in Texas, and Avistar, an unregulated energy technology company. With generation resources of more than 2,770 megawatts, PNM Resources and its subsidiaries sell power on the wholesale market throughout the Southwest, Texas and the West. The company also owns a 50-percent share of an energy joint venture with Cascade Investment, L.L.C. For more information, visit www.PNMResources.com. About Cascade Investment Based in Kirkland, Wash., Cascade Investment, L.L.C., oversees the personal investments of William H. Gates III and the investment assets of the Bill & Melinda Gates Foundation. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 Statements made in this earnings release that relate to future events or the Company's expectations, projections, estimates, intentions, goals, targets and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. You are cautioned that all forward-looking statements are based upon current expectations and estimates and the Company assumes no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, the Company cautions you not to place undue reliance on these statements. The Company's business, financial condition, cash flow and operating results are influenced by many factors, which are often beyond its control, that can cause actual results to differ from those expressed or implied by the forward looking statements. These factors include the risk that the new limited liability company in which the Company has a 50% interest, and which temporarily is named "EnergyCo", is unable to identify and implement profitable acquisitions or that the contribution of assets to EnergyCo by PNMR may not be implemented as expected, the potential unavailability of cash from the Company's subsidiaries due to regulatory, statutory and contractual restrictions, the outcome of any appeals of the Public Utility Commission of Texas order in the stranded cost true-up proceeding, the ability of First Choice Power to attract and retain customers, changes in Electric Reliability Council of Texas  The Electric Reliability Council of Texas (ERCOT) formed in 1970, as the successor to the Texas Interconected System (TIS). protocols, changes in the cost of power
acquired by First Choice Power, collections experience, insurance
coverage available for claims made in litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.When a person begins a civil lawsuit, the person enters into a process called litigation. , fluctuations in interest rates, conditions affecting the Company's ability to access the financial markets, weather, water supply, changes in fuel costs, availability of fuel supplies, the effectiveness of risk management and commodity risk transactions, seasonality and other changes in supply and demand in the market for electric power, variability of wholesale power prices and natural gas prices, volatility and liquidity in the wholesale power markets and the natural gas markets, changes in the competitive environment in the electric and natural gas industries, the performance of generating units, including PVNGS PVNGS Palo Verde Nuclear Generating Station , SJGS SJGS San Juan Generating Station (New Mexico) and Four Corners, and transmission systems, , the ability to secure long-term power sales, the risks associated with completion of the construction of generation, including pollution control equipment at the San Juan Generating Station and the expansion of the Afton Generating Station, transmission, distribution and other projects, including construction delays and unanticipated cost overruns, state and federal regulatory and legislative decisions and actions, the risk that the Company and its subsidiaries may have to commit to substantial capital investments and additional operating costs to comply with new environmental control requirements including possible future requirements to address concerns about global climate change, the outcome of legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. , changes in applicable accounting principles and the performance of state, regional and national economies. For a detailed discussion of the important factors that affect the Company and that could cause actual results to differ from those expressed or implied by the Company's forward-looking statements, please see "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" in the Company's current and future Annual Reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. and the Company's current and future Current Reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , filed with the SEC. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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