PNM Resources Management to Meet with Investors
2011 ongoing earnings guidance range affirmed during meetings
ALBUQUERQUE, N.M.--(BUSINESS WIRE)--
PNM Resources (NYSE: PNM) management will meet with institutional
investors during several meetings today and tomorrow in Wisconsin,
Michigan and Illinois.
During the meetings, management will affirm the company's 2011
consolidated ongoing earnings guidance range of $1.00 to $1.05 per
diluted share. Supporting material for the investor meetings is
available on PNM Resources' Web site at http://pnm.client.shareholder.com/investors/events.cfm.
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in
Albuquerque, N.M., with 2010 consolidated operating revenues of $1.7
billion. Through its regulated utilities, PNM Resources has
approximately 2,530 megawatts of generation capacity and serves
electricity to more than 735,000 homes and businesses in New Mexico and
Texas. For more information, visit the company's Web site at www.PNMResources.com.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995
Statements made in this news release that relate to future events or PNM
Resources', Public Service Company of New Mexico's ("PNM"), or Texas-New
Mexico Power Company's ("TNMP") (collectively, the "Company")
expectations, projections, estimates, intentions, goals, targets, and
strategies, are made pursuant to the Private Securities Litigation
Reform Act of 1995. Readers are cautioned that all forward-looking
statements are based upon current expectations and estimates and PNM
Resources, PNM, and TNMP assume no obligation to update this
information. Because actual results may differ materially from those
expressed or implied by these forward-looking statements, PNM Resources,
PNM, and TNMP caution readers not to place undue reliance on these
statements. PNM Resources', PNM's, and TNMP's business, financial
condition, cash flow, and operating results are influenced by many
factors, which are often beyond their control, that can cause actual
results to differ from those expressed or implied by the forward-looking
statements. These factors include: the ability of PNM and TNMP to
recover their costs and earn their allowed returns in their regulated
jurisdictions; the ability of the Company to successfully forecast and
manage its operating and capital expenditures, particularly in the
context of a future test year rate case with respect to PNM; the
performance of state, regional, and national economies and the resulting
impacts on the electricity usage of the Company's customers; the
performance of generating units, including the Palo Verde Nuclear
Generating Station ("PVNGS"), the San Juan Generating Station ("SJGS"),
and the Four Corners Plant, transmission systems, and distribution
systems, which could be negatively affected by major equipment failures,
major weather disruptions, disruptions in fuel supply, cyber and
physical security breaches, and other significant operational issues;
state and federal regulation or legislation relating to climate change,
reduction of greenhouse gas emissions, coal combustion byproducts,
nitrogen oxides, and other power plant emissions, including the risk
that the Company may have to commit to substantial capital investments
and additional operating costs to comply with new environmental
requirements, including possible future requirements to address regional
haze regulations and related best available retrofit technology
requirements and concerns about global climate change, and the resultant
impacts on the operations and economic viability of generating plants in
which PNM has interests; uncertainties surrounding the mine fire
incident at the mine supplying coal to SJGS, including potential impacts
on the operations of SJGS, the costs of fuel, and the cap on the annual
amounts recoverable through PNM's fuel and purchase power adjustment
clause ("FPPAC"); state and federal regulatory, legislative, and
judicial decisions and actions, including the outcomes of PNM's pending
transmission and firm requirements power rate cases and appeals of prior
regulatory proceedings; uncertainty surrounding the status of PNM's
participation in jointly-owned generation projects resulting from the
scheduled expiration of the operational documents for the projects
beginning in 2016 and potential changes in the objectives of the
participants in the projects; uncertainty regarding the requirements and
related costs of decommissioning power plants owned or partially owned
by PNM and coal mines supplying certain PNM power plants, as well as the
ability to recover decommissioning costs from customers; financial and
operational risks at PVNGS relating to any increased regulatory review
and actions in response to the events at the Fukushima Daiichi Nuclear
Power Plant in Japan; the risk that recently enacted reliability
standards regarding available transmission capacity may reduce certain
PNM transmission rights used to transmit its generation resources and
provide access to transmission customers resulting in a need to purchase
additional transmission capacity, reduce sales of transmission capacity,
or operate generation facilities less economically; the risks associated
with completion of generation, transmission, distribution, and other
projects, including construction delays and unanticipated cost overruns;
the ability of PNM to successfully defend the utilization of a future
test year in its electric rate filings with the New Mexico Public
Regulation Commission ("NMPRC"), including PNM's ability to withstand
challenges by regulators and intervenors; the ability of PNM to meet the
renewable energy requirements established by the NMPRC, including the
resource diversity requirement, within the specified cost parameters;
the risk that replacement power costs incurred by PNM related to not
meeting the specified capacity factor for its generating units under its
Emergency FPPAC will not be approved by the NMPRC; the risk that PNM may
not be able to recover a portion of the increased costs of rights-of-way
renewals on Native American lands through rates charged to transmission
customers; conditions affecting the Company's ability to access the
financial markets, including disruptions in the credit markets and
actions by ratings agencies affecting the Company's credit ratings; the
potential unavailability of cash from PNM Resources' subsidiaries due to
regulatory, statutory, or contractual restrictions; the impacts of
decreases in the values of marketable equity securities on the trust
funds maintained to provide nuclear decommissioning funding and pension
and other postretirement benefits, including the levels of funding and
expense; the impacts of the true-up of the purchase price for the sale
of First Choice Power to the actual amounts of certain components of
working capital at closing; uncertainties surrounding the successful
completion of PNM Resources' tender offer to repurchase up to $50.0
million of its outstanding 9.25% senior unsecured notes, due in 2015;
changes in the Electric Reliability Council Of Texas protocols;
collections experience; fluctuations in interest rates; 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; the impact of mandatory energy efficiency measures on
customer energy usage; variability of wholesale power prices and natural
gas prices; volatility and liquidity in the wholesale power markets and
the natural gas markets; uncertainty regarding the ongoing validity of
government programs for emission allowances; changes in the competitive
environment in the electric industry; the outcome of legal proceedings;
the extent of insurance coverage available for claims made in
litigation; and changes in applicable accounting principles.
Non-GAAP Financial Measures
The Company uses ongoing earnings and ongoing earnings per diluted share
(or ongoing diluted earnings per share) and EBITDA (earnings before
interest charges, income taxes, depreciation and amortization) and
ongoing EBITDA to evaluate the operations of the Company and to
establish goals for management and employees. While the Company believes
these financial measures are appropriate and useful for investors, they
are not measures presented in accordance with generally accepted
accounting principles in the U.S. (GAAP). The Company does not intend
for these measures, or any piece of these measures, to represent any
financial measure as defined by GAAP. Furthermore, the Company's
calculations of these measures as presented may or may not be comparable
to similarly titled measures used by other companies. The Company uses
ongoing earnings guidance to provide investors with management's
expectations of ongoing financial performance over the period presented.
While the Company believes ongoing earnings guidance is an appropriate
measure, it is not a measure presented in accordance with GAAP. The
Company does not intend for ongoing earnings guidance to represent an
expectation of net earnings as defined by GAAP. Management is generally
not able to estimate the impact of the reconciling items between ongoing
earnings guidance and forecasted GAAP earnings, nor their probable
impact on GAAP earnings; therefore, management is generally not able to
provide a corresponding GAAP equivalent for earnings guidance. In
addition, The Company uses forecasts of ongoing EBITDA and cash earnings
guidance to provide investors with management's expectations of
additional indicators of ongoing financial performance. Since forecasts
of EBITDA and cash earnings are derived from forecasted ongoing
earnings, management is not able to reconcile these items to a GAAP
equivalent.
PNM Resources
Analysts
Lisa Eden, 505-241-2691
Analysts
& Media
Frederick Bermudez, 505-241-4831
Source: PNM Resources
News Provided by Acquire Media
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