ALBUQUERQUE, N.M.--(BUSINESS WIRE)--
PNM Resources (NYSE: PNM)
2007 SECOND QUARTER SUMMARY
-- GAAP (generally accepted accounting principles) earnings of
$0.26 per diluted share, up from $0.23 per diluted share in
2006
-- Favorable IRS decision improves GAAP earnings
-- Ongoing earnings of $0.13 per diluted share, including
mark-to-market impacts, compared with $0.25 per diluted share
in 2006
-- Increased coal costs and lower Four Corners production impact
earnings
-- Cooler weather impacts all operating units
-- Lower First Choice Power earnings
PNM Resources (NYSE: PNM) today reported second quarter 2007
unaudited consolidated ongoing earnings of $0.13 per diluted share,
compared with $0.25 for the same period in 2006. The company also
reported second quarter 2007 unaudited consolidated GAAP earnings of
$0.26 per diluted share, compared with $0.23 for the quarter in 2006.
Ongoing earnings exclude non-recurring gains and charges. A
reconciliation of ongoing earnings to GAAP earnings is provided on
Schedule 1. All reported results are unaudited.
"This has been a challenging and disappointing quarter and year
for us so far," said Jeff Sterba, PNM Resources president, chairman
and CEO. "For example, while we had improved performance at the Palo
Verde Nuclear Generating Station, the plant still is not operating at
expected and acceptable levels. And its improvement was offset by
other outages, particularly at the Four Corners Plant.
"In light of our performance year-to-date, we have developed
action plans to improve our operations and streamline our cost
structure even more," he said. "Top priorities include strengthening
our core utilities to increase their ability to earn their cost of
capital, and maximizing the potential within our competitive
businesses to produce sustainable growth for shareholders."
SECOND QUARTER CONSOLIDATED PERFORMANCE SUMMARY
PNM Resources reported ongoing earnings of $10.2 million, or $0.13
per diluted share. Ongoing earnings include net mark-to-market losses
of $13.3 million, or $0.10 per diluted share. GAAP earnings were $20.2
million, or $0.26 per diluted share, compared with $16.0 million, or
$0.23 per diluted share, in 2006. A favorable decision by the Internal
Revenue Service increased GAAP earnings by $16.0 million. GAAP
earnings also include non-recurring items related to the contribution
of Twin Oaks Power to EnergyCo and the formation of EnergyCo.
The impacts of solid performance at the PNM San Juan Generating
Station and improved performance at the Palo Verde Nuclear Generating
Station were offset by outages at Four Corners. In addition, higher
coal costs increased expenses by $4.2 million, or $0.03 per diluted
share.
Considerably cooler weather impacted all operating units. PNM's
service territory experienced a 31.4 percent drop in cooling-degree
days and TNMP's system had a 20.4 percent decrease, comparing 2007
with 2006.
YEAR-TO-DATE CONSOLIDATED PERFORMANCE SUMMARY
For the six months ended June 30, 2007, ongoing earnings totaled
$40.6 million, or $0.52 per diluted share. Ongoing earnings include
net mark-to-market losses of $11.4 million, or $0.09 per diluted
share, most of which will reverse by year-end. However, higher energy
costs are expected because of fixed-price hedged positions. For the
same period in 2006, the company reported ongoing earnings of $43.7
million, or $0.63 per diluted share.
GAAP earnings for the first six months of 2007 totaled $49.9
million, or $0.64 per diluted share. For the first six months of 2006,
GAAP earnings were $42.0 million, or $0.61 per diluted share.
While Palo Verde's performance improved significantly over 2006
with the first half of the year having an equivalent availability
factor, or EAF, of 82.2 percent, performance was below the company's
expectations of at least 85 percent. For the same period last year,
Palo Verde had a 59.2 percent EAF. For the period, San Juan's
performance remained consistent and Four Corners' EAF dropped to 66.9
percent, compared with 92.4 percent in 2006.
A 13.1 percent increase in the average number of common shares
outstanding lowered earnings per share by $0.07.
SECOND QUARTER SEGMENT REPORTING
Regulated Operations
PNM - a vertically integrated electric and natural gas utility in
New Mexico with distribution, transmission and generation assets.
Electric:
Beginning on Jan. 1, 2007, the PNM Electric segment includes the
territory in southern New Mexico formerly served by TNMP.
-- PNM Electric reported earnings of $0.07 per diluted share,
compared with $0.10 per diluted share in 2006. Earnings
decreased $1.3 million to $5.4 million and gross margin
increased $7.1 million to $101.6 million.
-- A modest increase in load growth of 1.2 percent, the addition
of TNMP-New Mexico operations and better Palo Verde
performance contributed to earnings. Those increases were
offset by reduced performance at Four Corners and a $3.6
million increase in coal costs.
Gas:
-- PNM Gas reported losses of $0.04 per diluted share, compared
with losses of $0.07 per diluted share in 2006. Losses were
$3.2 million in 2007 compared with losses of $4.7 million in
2006. Gross margin increased $3.3 million to $30.1 million.
-- Colder weather and customer growth of 2.1 percent decreased
losses compared with 2006.
TNMP - a transmission and distribution company in Texas.
Beginning in 2007, the TNMP Electric segment consists only of
transmission and distribution operations located in Texas.
-- TNMP reported earnings of $0.05 per diluted share, compared
with $0.04 per diluted share in 2006. Earnings increased $1.4
million to $4.2 million and gross margin decreased $2.5
million to $36.3 million.
-- Modest load growth and the collection of the competitive
transition charge, which began in December 2006, were
partially offset by a 20.4 percent decrease in cooling-degree
days and the transfer of the southern New Mexico operations to
PNM, which significantly reduced revenue and sales volumes by
29.2 percent and 17.0 percent, respectively.
Unregulated Operations
Wholesale - a business segment consisting of the generation and
sale of electricity into wholesale markets.
-- Wholesale reported earnings of $0.02 per diluted share,
compared with $0.08 per diluted share in 2006. Gross margin
decreased $11.1 million to $32.0 million.
-- Improved performance at Palo Verde increased earnings by $8.8
million, which was more than offset by poor Four Corners
performance and mark-to-market changes totaling $13.3 million.
First Choice Power - a competitive retail electric provider in
Texas.
-- First Choice Power reported earnings of $0.08 per diluted
share, compared with $0.19 per diluted share in 2006. Earnings
decreased to $6.4 million from $13.3 million and gross margin
decreased to $24.2 million from $36.8 million.
-- An 8.4 percent increase in customer growth was more than
offset by higher purchase power costs, a change in customer
mix and cooler temperatures, which resulted in lower 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 to PNM Resources
and its subsidiaries.
-- Ongoing losses were $0.07 per diluted share in 2007, improving
from a loss of $0.09 per diluted share in 2006. GAAP earnings
were $0.06 per diluted share, improving from a loss of $0.12
per diluted share in 2006. The favorable IRS decision improved
earnings.
EnergyCo - a business segment that is comprised of the joint
venture between PNM Resources and a subsidiary of Cascade Investment,
L.L.C.
-- EnergyCo contributed $2.3 million, or $0.02 per diluted share,
to consolidated ongoing earnings.
EARNINGS GUIDANCE LOWERED
The company today lowered its 2007 ongoing earnings guidance and
now estimates that earnings for the year ending Dec. 31, 2007, will be
in the range of $1.30 to $1.40 per diluted share. The previous
estimate range was $1.80 to $2.00 per diluted share. The main drivers
leading to the company's revised earnings guidance include:
-- Year-to-date and projected reduced performance at base load
plants
-- Higher energy costs
-- Increased coal costs at San Juan and Four Corners
-- Lost sales and increased power purchases as a result of the
Afton Generating Station start-up delay to mid August
-- The lower-than-requested amount allowed in PNM's gas rate
case, which was ordered by the New Mexico Public Regulation
Commission on June 29, 2007.
ENERGYCO ACTIVITY
-- EnergyCo and NRG Energy to Expand Houston-Area Power Plant -
PNM Resources also announced today that EnergyCo has agreed
with NRG Energy, Inc. (NYSE: NRG) to jointly develop a
550-megawatt, combined-cycle natural gas unit at the existing
NRG Cedar Bayou Generating Station near Houston.
The project will be located adjacent to the existing three
gas-fired units at NRG's Cedar Bayou facility and will be owned
equally by EnergyCo and NRG. Cedar Bayou 4, which has estimated
construction costs of $390 million, will benefit from existing
infrastructure and, based on an estimated average net output of 550
megawatts, development costs are estimated to be less than $710 per
kilowatt. The unit is expected to be commercially available in the
summer of 2009.
Once Cedar Bayou Unit 4 goes online, approximately 275 megawatts
will be available to EnergyCo's Marketing and Trading division. When
the project is completed, EnergyCo venture will have a generation
portfolio of nearly 1,200 megawatts.
-- Houston Plant Acquisition Completed - EnergyCo has completed
the acquisition of the CoGen Lyondell Power Generation
Facility, now named Altura Cogen, LLC. The acquisition closed
on Aug. 1.
EnergyCo purchased Altura Cogen, a 614-megawatt natural gas-fired
cogeneration plant within the high-demand Houston Zone, from Dynegy
for approximately $467.5 million.
The purchase of Altura Cogen, combined with the ownership of the
305-megawatt, coal-fired Twin Oaks Power facility, brings EnergyCo's
current generation portfolio to nearly 920 megawatts.
"EnergyCo is pursuing selective opportunities to provide long-term
value for both PNM Resources and Cascade," said Sterba, who also
serves as chairman of the EnergyCo board of directors. "Cedar Bayou
and Altura Cogen are examples of strategic assets situated in a
premium ERCOT location. They also underscore our near-term strategy of
building a strong, environmentally responsible ERCOT generation asset
base."
SECOND QUARTER EARNINGS CALL
PNM Resources will conduct its second quarter 2007 earnings
conference call on Friday, Aug. 3, at 9 a.m. Eastern.
Analysts in the United States call: (800) 901-5226
Analysts outside the United States call: (617) 786-4513
Pass code: 51730127
Participating analysts should dial in after 8:45 a.m. Eastern. The
call will be broadcast live and the presentation available at
www.PNMResources.com. A transcript of the call also will be on the Web
site as soon as possible. A replay will be available through Aug. 10,
2007:
Analysts in the United States call: (888) 286-8010
Analysts outside the United States call: (617) 801-6888
Pass code: 60213359
Background:
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 approximately 835,000 homes and businesses in
New Mexico and Texas and natural gas to nearly 490,000 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 2,465 megawatts, PNM Resources and its subsidiaries market
power throughout the Southwest, Texas and the West. In addition, the
joint venture in which the company has a 50-percent ownership owns
approximately 920 megawatts of generation. For more information, visit
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 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 EnergyCo is unable to identify and implement profitable
acquisitions, including development of the Cedar Bayou Generating
Station and implementation of the acquisition of the Lyondell
facility, or that the contribution of assets to EnergyCo by the
Company may not be implemented as expected, the potential
unavailability of cash from the Company's subsidiaries or EnergyCo due
to regulatory, statutory or 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 protocols, changes in the cost of power acquired by First
Choice Power, collections experience, insurance coverage available for
claims made in litigation, fluctuations in interest rates, conditions
affecting the Company's or EnergyCo'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 the Palo Verde Nuclear
Generating Station, the San Juan Generating Station, the Four Corners
Plant, and EnergyCo generating units, and transmission systems, the
ability to secure long-term power sales, the risk that the Company and
its subsidiaries and EnergyCo 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
risks associated with completion of generation, including pollution
control equipment at the SJGS, the expansion of the Afton Generating
Station, and the EnergyCo Cedar Bayou Generating Station,
transmission, distribution, and other projects, including construction
delays and unanticipated cost overruns, state and federal regulatory
and legislative decisions and actions, the outcome of legal
proceedings, 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 of Financial Condition and Results of
Operations" in the Company's current and future Annual Reports on Form
10-K and Quarterly Reports on Form 10-Q and the Company's current and
future Current Reports on Form 8-K, filed with the SEC.
PNM Resources
Schedule 1:
Second Quarter 2007 Reconciliation of Ongoing Earnings to GAAP
Earnings
All ongoing-to-GAAP adjustments are included in the Corporate/Other
segment
Second Quarter
Quarter Ended June 30,
2007 2006
------------------ ------------------
Earnings Diluted Earnings Diluted
(in 000's) EPS (in 000's) EPS
---------- ------- ---------- -------
Net Earnings Available to Common
Shareholders $20,240 $0.26 $15,983 $0.23
Adjustments for Acquisition and
Other Non-Recurring Charges
(net of income tax effects):
Favorable IRS Decision (16,038) (0.20) -- --
Acquisition Integration Costs -- -- 1,140 0.02
Twin Oaks III Impairment 2,042 0.02 -- --
Loss on Contribution of Altura
(Twin Oaks) 2,197 0.03 -- --
JV Formation Costs 1,801 0.02 -- --
---------- ------- ---------- -------
Total Adjustments (9,998) (0.13) 1,140 0.02
---------- ------- ---------- -------
Net Ongoing Earnings Available
to Common Shareholders $10,242 $0.13 $17,123 $0.25
========== ======= ========== =======
Average Diluted Shares 78,793 69,433
Year-to-Date
Year-to-Date June 30,
2007 2006
------------------ ------------------
Earnings Diluted Earnings Diluted
(in 000's) EPS (in 000's) EPS
---------- ------- ---------- -------
Net Earnings Available to Common
Shareholders $49,906 0.64 $41,984 $0.61
Adjustments for Acquisition and
Other Non-Recurring Charges
(net of income tax effects):
Favorable IRS Decision (16,038) (0.20) -- --
Acquisition Integration Costs -- -- 1,709 0.02
Twin Oaks III Impairment 2,042 0.02 -- --
Loss on Contribution of Altura
(Twin Oaks) 2,197 0.03 -- --
JV Formation Costs 2,543 0.03 -- --
---------- ------- ---------- -------
Total Adjustments (9,256) (0.12) 1,709 0.02
---------- ------- ---------- -------
Net Ongoing Earnings Available
to Common Shareholders $40,650 $0.52 $43,693 $0.63
========== ======= ========== =======
Average Diluted Shares 78,446 69,349
PNM RESOURCES, INC. AND SUBSIDIARIES
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- ---------------------
2007 2006 2007 2006
--------- --------- ---------- ----------
(In thousands, except per share
information)
Operating Revenues:
Electric $ 505,376 $ 477,603 $ 942,183 $ 925,819
Gas 75,141 68,869 291,625 276,345
Other 164 197 374 306
--------- --------- ---------- ----------
Total operating revenues 580,681 546,669 1,234,182 1,202,470
--------- --------- ---------- ----------
Operating Expenses:
Cost of energy sold 356,533 306,500 735,053 732,472
Administrative and general 64,341 66,311 135,547 131,616
Energy production costs 52,256 44,038 100,080 81,949
Depreciation and
amortization 39,695 37,953 80,137 72,283
Transmission and
distribution costs 22,194 21,314 44,761 40,364
Taxes, other than income
taxes 19,003 18,261 37,623 35,225
--------- --------- ---------- ----------
Total operating expenses 554,022 494,377 1,133,201 1,093,909
--------- --------- ---------- ----------
Operating income 26,659 52,292 100,981 108,561
--------- --------- ---------- ----------
Other Income and Deductions:
Interest income 7,041 8,916 17,829 19,067
Gains on investments held by
NDT 2,957 1,158 2,917 2,054
Other income 1,890 764 4,013 3,035
Equity in net earnings of
EnergyCo 2,272 - 1,610 -
Carrying charges on
regulatory assets - 2,004 - 3,977
Other deductions (5,530) (2,497) (6,518) (4,013)
--------- --------- ---------- ----------
Net other income and
deductions 8,630 10,345 19,851 24,120
--------- --------- ---------- ----------
Interest Charges:
Interest on long-term debt 18,734 24,267 42,743 46,798
Other interest charges 11,158 12,231 24,996 18,263
--------- --------- ---------- ----------
Total interest charges 29,892 36,498 67,739 65,061
--------- --------- ---------- ----------
Earnings before Income Taxes 5,397 26,139 53,093 67,620
Income Taxes (Benefit) (14,975) 10,024 2,923 25,372
Preferred Stock Dividend
Requirements of Subsidiary 132 132 264 264
--------- --------- ---------- ----------
Net Earnings $ 20,240 $ 15,983 $ 49,906 $ 41,984
========= ========= ========== ==========
Net Earnings per Common
Share:
Basic $ 0.26 $ 0.23 $ 0.65 $ 0.61
========= ========= ========== ==========
Diluted $ 0.26 $ 0.23 $ 0.64 $ 0.61
========= ========= ========== ==========
Dividends Declared per Common
Share $ 0.23 $ 0.22 $ 0.46 $ 0.44
========= ========= ========== ==========
The following table shows PNM Electric revenues by customer class,
including intersegment revenues that are eliminated within the
presentation of the preliminary condensed consolidated statements of
earnings, and average number of customers:
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- -------------------------
2007 2006 Variance 2007 2006 Variance
------ ------ ------------ ------ ------ -----------
(In millions, except (In millions, except
customers) customers)
Residential $ 58.4 $ 52.0 $ 6.4 12.3% $126.2 $107.4 $18.8 17.6%
Commercial 73.1 65.6 7.5 11.5 137.8 122.7 15.1 12.4
Industrial 25.8 15.6 10.2 65.4 49.2 30.3 18.9 62.3
Transmission 8.0 7.2 0.8 11.6 16.9 14.2 2.7 18.6
Other 5.8 5.9 (0.1) (3.2) 11.2 10.5 0.7 4.9
------ ------ ------ ----- ------ ------ ----- -----
$171.1 $146.3 $ 24.8 17.0% $341.3 $285.1 $56.2 19.7%
====== ====== ====== ===== ====== ====== ===== =====
Average customers
(thousands)
488.1 428.6 59.5 13.9% 487.6 427.3 60.3 14.1%
====== ====== ====== ===== ====== ====== ===== =====
The following table shows PNM Electric GWh sales by customer class:
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ---------------------------
2007 2006 Variance 2007 2006 Variance
------- ------- ------------ ------- ------- -----------
(Gigawatt hours) (Gigawatt hours)
Residential 704.9 647.4 57.5 8.9% 1,525.6 1,335.9 189.7 14.2%
Commercial 992.6 929.2 63.4 6.8 1,869.5 1,732.9 136.6 7.9
Industrial 494.2 332.6 161.6 48.6 964.5 646.6 317.9 49.2
Other 63.4 71.6 (8.2) (11.4) 119.8 126.4 (6.6) (5.3)
------- ------- ----- ------ ------- ------- ----- -----
2,255.1 1,980.8 274.3 13.9% 4,479.4 3,841.8 637.6 16.6%
======= ======= ===== ====== ======= ======= ===== =====
The following table shows TNMP Electric revenues by customer class,
including intersegment revenues that are eliminated within the
presentation of the preliminary condensed consolidated statements of
earnings, and average number of customers:
Three Months Ended
June 30,
-------------------------------
2007 2006(1) Variance
------ -------- ---------------
(In millions, except customers)
Residential $ 15.6 $ 20.7 $ (5.1) (24.3%)
Commercial 17.7 21.9 (4.2) (18.9)
Industrial 1.8 9.3 (7.5) (80.9)
Other 8.4 9.6 (1.2) (12.5)
------ -------- ------- -------
$ 43.5 $ 61.5 $(18.0) (29.2%)
====== ======== ======= =======
Average customers (thousands) (2)
225.3 272.2 (46.9) (17.2%)
====== ======== ======= =======
Six Months Ended
June 30,
-------------------------------
2007 2006(1) Variance
------ -------- ---------------
(In millions, except customers)
Residential $ 30.4 $ 39.9 $ (9.5) (23.9%)
Commercial 33.7 42.5 (8.8) (20.7)
Industrial 3.5 22.7 (19.2) (84.4)
Other 16.9 19.0 (2.1) (11.7)
------ -------- ------- -------
$ 84.5 $ 124.1 $(39.6) (32.0%)
====== ======== ======= =======
Average customers (thousands) (2)
225.3 271.7 (46.4) (17.1%)
====== ======== ======= =======
(1) The customer class revenues presented above for the three and six
months ended June 30, 2006 have been reclassified from prior year
presentation in order to be consistent with current year
presentation, as a result of change in customer classifications.
Additionally, the average customer count presented above for the
three and six months ended June 30, 2006 has been reclassified from
prior year presentation in order to be consistent with the current
year presentation for the ESI ID customer count methodology used by
the ERCOT.
(2) Under TECA, customers of TNMP Electric in Texas have the ability
to choose First Choice or any other REP to provide energy. The
average customers reported above for the three months ended June 30
include 130,762 and 146,549 customers of TNMP Electric, respectively;
who have chosen First Choice as their REP. The average customers
reported above for the six months ended June 30, 2007 and 2006
include 133,235 and 147,782 customers of TNMP Electric, respectively;
who have chosen First Choice as their REP.
The following table shows TNMP Electric GWh sales by customer class:
Three Months Ended
June 30,
-------------------------------
2007 2006(2) Variance
------- ------- ---------------
(Gigawatt hours (1) )
Residential 579.9 710.4 (130.5) (18.4%)
Commercial 563.7 774.4 (210.7) (27.2)
Industrial 473.9 462.0 11.9 2.6
Other 23.9 31.8 (7.9) (24.4)
------- ------- ------- -------
1,641.4 1,978.6 (337.2) (17.0%)
======= ======= ======= =======
Six Months Ended
June 30,
-------------------------------
2007 2006(2) Variance
------- ------- ---------------
(Gigawatt hours (1) )
Residential 1,118.3 1,238.3 (120.0) (9.7%)
Commercial 1,022.9 1,255.0 (232.1) (18.5)
Industrial 881.2 1,018.1 (136.9) (13.4)
Other 48.1 60.7 (12.6) (20.7)
------- ------- ------- -------
3,070.5 3,572.1 (501.6) (14.0%)
======= ======= ======= =======
(1) The GWh sales reported above for the three months ended June 30,
2007 and 2006 include 487.3 and 635.1 GWhs used by customers of TNMP
Electric respectively, who have chosen First Choice as their REP.
The GWh sales reported above for the six months ended June 30, 2007
and 2006 include 960.3 and 1,110.0 GWhs used by customers of TNMP
Electric respectively, who have chosen First Choice as their REP.
These GWhs are also included below in the First Choice segment.
(2) The customer class sales presented above for the three and six
months ended June 30, 2006 have been reclassified from prior year
presentation in order to be consistent with current year
presentation, as a result of changes in customer classifications.
The following table shows PNM Gas revenues by customer class,
including intersegment revenues that are eliminated within the
presentation of the preliminary condensed consolidated statements of
earnings, and average number of customers:
Three Months Ended
June 30,
---------------------------
2007 2006 Variance
------ ------ -------------
(In millions, except
customers)
Residential $ 48.4 $ 38.5 $ 9.9 25.7%
Commercial 15.5 13.4 2.1 15.7
Industrial 0.4 1.5 (1.1) (70.7)
Transportation(1) 3.4 2.8 0.6 19.2
Other 7.5 12.8 (5.3) (41.1)
------ ------ ------ ------
$ 75.2 $ 69.0 $ 6.2 9.0%
====== ====== ====== ======
Average customers (thousands)
490.5 480.5 10.0 2.1%
====== ====== ====== ======
Six Months Ended
June 30,
---------------------------
2007 2006 Variance
------ ------ -------------
(In millions, except
customers)
Residential $200.7 $180.2 $ 20.5 11.4%
Commercial 60.6 57.4 3.2 5.7
Industrial 1.0 2.3 (1.3) (54.4)
Transportation(1) 8.4 7.5 0.9 12.0
Other 21.0 29.1 (8.1) (28.4)
------ ------ ------ ------
$291.7 $276.5 $ 15.2 5.5%
====== ====== ====== ======
Average customers (thousands)
491.2 480.6 10.6 2.2%
====== ====== ====== ======
The following table shows PNM Gas throughput by customer class:
Three Months Ended
June 30,
----------------------------
2007 2006 Variance
------ ------ --------------
(Thousands of Decatherms)
Residential 3,827 3,058 769 25.1%
Commercial 1,515 1,391 124 8.9
Industrial 50 195 (145) (74.4)
Transportation(1) 10,149 9,371 778 8.3
Other 500 1,501 (1,001) (66.7)
------ ------ ------- ------
16,041 15,516 525 3.4%
====== ====== ======= ======
Six Months Ended
June 30,
----------------------------
2007 2006 Variance
------ ------ --------------
(Thousands of Decatherms)
Residential 17,771 15,020 2,751 18.3%
Commercial 6,149 5,557 592 10.7
Industrial 113 267 (154) (57.7)
Transportation(1) 20,949 20,402 547 2.7
Other 1,826 3,067 (1,241) (40.5)
------ ------ ------- ------
46,808 44,313 2,495 5.6%
====== ====== ======= ======
The following table shows Wholesale revenues by class of sales
transactions, including intersegment revenues that are eliminated
within the presentation of the preliminary condensed consolidated
statements of earnings.
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- ----------------------------
2007 2006 Variance 2007 2006 Variance
------ ------ ----------- ------ ------ --------------
(In millions) (In millions)
Long-term sales $ 77.5 $ 73.9 $ 3.6 4.8% $153.0 $105.2 $ 47.8 45.5%
Short-term sales 116.6 80.6 36.0 44.7 175.6 228.8 (53.2) (23.2)
------ ------ ----- ----- ------ ------ ------- ------
$194.1 $154.5 $39.6 25.6% $328.6 $334.0 $ (5.4) (1.6%)
====== ====== ===== ===== ====== ====== ======= ======
The following table shows Wholesale GWh sales by customer class:
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- ------------------------------
2007 2006 Variance 2007 2006 Variance
------- ------- ---------- ------- ------- --------------
(Gigawatt hours) (Gigawatt hours)
Long-term
sales 1,184.4 1,102.4 82.0 7.4% 2,346.6 1,680.9 665.7 39.6%
Short-term
sales 1,700.4 1,569.1 131.3 8.4 3,140.8 3,789.9 (649.1) (17.1)
------- ------- ----- ---- ------- ------- ------- ------
2,884.8 2,671.5 213.3 8.0% 5,487.4 5,470.8 16.6 0.3%
======= ======= ===== ==== ======= ======= ======= ======
The following table shows First Choice electric operating revenues by
customer class, including intersegment revenues that are eliminated
within the presentation of the preliminary condensed consolidated
statements of earnings, and number of customers:
Three Months Ended
June 30,
-----------------------------
2007 2006(1) Variance
------ -------- -------------
(In millions, except
customers)
Residential $ 88.4 $ 89.2 $(0.8) (0.8%)
Mass-market 18.0 23.7 (5.7) (24.3)
Mid-market 37.8 33.9 3.9 11.7
Mark-to-market(4) 1.7 3.8 (2.1) (55.1)
Other 4.1 4.3 (0.2) (5.8)
------ -------- ------ ------
$150.0 $ 154.9 $(4.9) (3.1)
====== ======== ====== ======
Actual customers (thousands) (2,3)
249.5 230.1 19.4 8.4%
====== ======== ====== ======
Six Months Ended
June 30,
------------------------------
2007 2006(1) Variance
------ -------- --------------
(In millions, except
customers)
Residential $174.0 $ 148.8 $ 25.2 16.9%
Mass-market 34.1 42.5 (8.4) (19.8)
Mid-market 68.4 53.3 15.1 28.2
Mark-to-market(4) (0.3) 5.5 (5.8) (104.7)
Other 9.4 9.9 (0.5) (4.1)
------ -------- ------ -------
$285.6 $ 260.0 $ 25.6 9.8
====== ======== ====== =======
Actual customers (thousands) (2,3)
249.5 230.1 19.4 8.4%
====== ======== ====== =======
(1) The customer class revenues presented above for the three and six
months ended June 30, 2006 have been reclassified from prior year
presentation in order to be consistent with current year
presentation, as a result of change in customer classifications.
Additionally, the customer counts presented above for the three and
six months ended June 30, 2006 have been reclassified from prior year
presentation in order to be consistent with the current year
presentation for the ESI ID customer count methodology used by the
ERCOT.
(2) See note above in the TNMP Electric segment discussion about the
impact of TECA.
(3) Due to the competitive nature of First Choice's business, actual
customer count at June 30 is presented in the table above as a more
representative business indicator than the average customers that are
show in the table for TNMP customers. First Choice had 252,935
average customers and 226,829 average customers for the three months
ended June 30, 2007 and 2006, respectively. First Choice had 254,700
average customers and 223,677 average customers for the six months
ended June 30, 2007 and 2006, respectively. The 226,829 and 223,667
average customers for the three and six months ended June 30, 2006
have been reclassified from prior year presentation in order to be
consistent with the current year presentation for the ESI ID customer
count methodology used by the ERCOT.
(4) Includes financial gas trading.
The following table shows First Choice GWh electric sales by customer
class:
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------- -----------------------------
2007 2006(2) Variance 2007 2006(2) Variance
------- ------- ------------- ------- ------- -------------
(Gigawatt hours (1) ) (Gigawatt hours (1) )
Residential 638.0 636.7 1.3 20.0% 1,252.9 1,064.2 188.7 17.7%
Mass-market 110.8 160.6 (49.8) (31.0) 210.7 281.6 (70.9) (25.2)
Mid-market 329.7 308.4 21.3 6.9 589.6 486.1 103.5 21.3
Other 8.0 13.6 (5.6) (41.6) 17.2 26.6 (9.4) (35.3)
------- ------- ------ ------ ------- ------- ------ ------
1,086.5 1,119.3 (32.8) (2.9%) 2,070.4 1,858.5 211.9 11.4%
======= ======= ====== ====== ======= ======= ====== ======
(1) See note above in the TNMP Electric segment discussion about the
impact of TECA.
(2) The customer class sales presented above for the three and six
months ended June 30, 2006 have been reclassified from prior year
presentation in order to be consistent with current year
presentation, as a result of changes in customer classifications.
Source: PNM Resources