PNM Resources, Inc. (NYSE:PNM) Q3 2019 Earnings Conference Call Transcript

Nov 01, 2019 • 11:00 am ET

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PNM Resources, Inc. (NYSE:PNM) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day and welcome to the PNM Resources Q3 2019 Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Lisa Goodman, Director of Investor Relations. Please go ahead.

Executive
Lisa Goodman

Thank you, Sara, and thank you everyone for joining us this morning for the PNM Resources third quarter 2019 earnings conference call. Please note that the presentation for this conference call and other supporting documents are available on our website at pnmresources.com. Joining me today are PNM Resources' Chairman, President and CEO, Pat Vincent-Collawn and Chuck Eldred, our Executive Vice President and Chief Financial Officer as well as several other members of our executive management team.

Before I turn the call over to Pat, I need to remind you that some of the information provided this morning should be considered forward-looking statements pursuant to the Private Securities Litigation Reform Act of 1995. We caution you that all of the forward-looking statements are based upon current expectations and estimates and that PNM Resources assumes no obligation to update this information.

For a detailed discussion of factors affecting PNM Resources' results, please refer to our current and future annual reports on Form 10-K, quarterly reports on Form 10-Q, as well as reports on Form 8-K filed with the SEC.

With that I will turn the call over to Pat.

Executive
Patricia K. Collawn

Thank you, Lisa, and congratulations on your appointment to Director of Investor Relations. We're all very happy for you. Good morning, everyone. Thank you for joining us today on our third quarter earnings call. It's also National Cook For Your Pets Day today. And some website say its National Men Make Dinner Day, others say National Men Make Dinner Day is next Thursday. So whatever day it is gentlemen start preparing. But let's begin on Slide four.

Our GAAP earnings per share in the third quarter of 2019 reflect earnings of $1.28 compared to earnings of $1.9 in the third quarter of 2018. Ongoing earnings per share $1.29 compared to $1.8 in the third quarter of last year. We are affirming our guidance of $2.05 to $2.11. Chuck will provide further details on the financials in a few minutes. In terms of highlights of the quarter, higher temperatures increased our loads at both PNM and TNMP. At TNMP, this reflects get another all-time record system peak reflecting the growth that continues across Texas. On the regulatory front TNMP filed its second key cost filing in 2019 for recovery of $22 million of transmission investments across its system and this filing was approved in September. These rates were implemented on September 19, and will increase annual revenues by $3.3 million.

In New Mexico PNM received approvals from both FERC and the New Mexico Public Regulation Commission to acquire the Western Spirit Transmission Line in 2021. This is not only a significant investment for PNM, but it is a key project for further in New Mexico's plans to be