The PNM Resources Proposition
Delivering Above Industry-Average Earnings and Dividend Growth
PNM Resources’ strategic goal to deliver above industry-average earnings and dividend growth enables investors to realize the value in the Company’s business. PNM Resources’ current target is seven to eight percent earnings growth beginning 2015 through 2019.(1) Earnings growth is based on ongoing earnings, which is a non-GAAP financial measure that excludes certain non-recurring, infrequent, and other items from earnings determined in accordance with GAAP.
(1)Assumes a base year of 2014 for calculation purposes.
Rate Base Growth
Our rate base growth will come from our near term investments in core capital, environmental control equipment, new generation resources and transmission system improvements to meet our evolving customer needs in New Mexico and Texas. Our current capital forecast calls for $1.7 billion worth of investments into our business in the years 2017 through 2020. The expected rate base compound annual growth rates during this time frame is 4% - 6% for PNM and 8% - 10% for TNMP.
We expect to realize the earnings potential in our businesses by continuing to earn our allowed returns and reducing regulatory lag. In New Mexico, we will utilize the future test year filing format to minimize the impacts of regulatory lag. For FERC transmission investments in New Mexico, we have implemented an annual formula rate true-up to recover investments made in the previous year. In Texas, we plan to file a general rate case in 2018 and continue to utilize TCOS and DCOS rate mechanisms to allow for more timely recovery of costs during interim periods between rate cases.
PNM Rources targets a dividend payout ratio of 50% to 60% of its ongoing earnings. On December 13, 2016, the Board of Directors unanimously voted to increase the company’s annual common stock dividend by $0.09, a 10.0 percent increase, to an indicated annual rate of $0.97 per share of common stock.
"Not an offer" Disclaimer:
The information on this webpage is solely for informational purposes and is neither an offer to sell nor a solicitation of an offer to buy any security of PNM Resources. Any offers to sell or solicitations to buy securities of PNM Resources shall be made only by means of a prospectus. Before you invest, you should read the prospectus in the registration statement and other documents PNM Resources has filed with the SEC for more complete information about PNM Resources, its securities and the risks associated therewith. You may obtain these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov, or by clicking here.
Forward Looking Statement Disclaimer:
Information on this webpage may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those that relate to future events or with respect to the expectations, projections, estimates, intentions, goals, targets, and strategies of PNM Resources and its affiliates. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates and that PNM Resources and its affiliates assume no obligation to update this information, and that Readers should consider the statements under the heading "Disclosure Regarding Forward Looking Statements" in PNM Resources' periodic reports filed with the Securities and Exchange Commission.