PNM Resources, Inc. (NYSE:PNM) Q4 2019 Earnings Conference Call - Final Transcript

Feb 28, 2020 • 11:00 am ET

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PNM Resources, Inc. (NYSE:PNM) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the PNM Resources Fourth Quarter 2019 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

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

Executive
Lisa Goodman

Thank you, Jason, and thank you everyone for joining us this morning for the PNM Resources fourth 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 Don Tarry, our Senior 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 good morning everyone. Thanks for joining us today, for our fourth quarter and year-end 2019 earnings call. Importantly, today is National Public Sleeping Day. But I'd ask that you please don't observe it during our call, because it would really hurt our feelings. With that, I'm going to begin on Slide 4.

GAAP earnings per share in the fourth quarter of 2019 reflect earnings of $0.40, compared to a loss of $0.69 in the fourth quarter of 2018. Ongoing earnings per share are $0.36, compared to $0.18 in the fourth quarter of last year. For the full year, GAAP earnings are $0.97 in 2019, compared with $1.07 in 2018, and ongoing earnings are $2.16, compared to $2.00 in 2018. Considering the significant New Mexico weather impacts, that we experienced in the second quarter, these results demonstrate how well the team adapts our operations to changing business conditions. We are affirming our 2020 guidance of $2.16 to $2.26. Don will provide further details on the financials in a few minutes.

As we review our overall results for 2019, we've had some pretty significant highlights. In March, the New Mexico Legislature passed the Energy Transition Act, and the Governor then signed it into law. It established future RPS requirements, and a 2045 carbon-free mandate, and it allowed securitization as a tool to aid in the transition. The final bill was a result of key partnerships and collaborations, and the bill and the Governor received national attention and accolades.

Our team went back and evaluated, what it would take