Earnings Per Share

9 Months Ended

Sep. 30, 2011

In accordance with GAAP, dual presentation of basic and diluted earnings per share has been presented in the Condensed Consolidated Statements of Earnings of PNMR. Information regarding the computation of earnings per share is as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
	(In thousands, except per share amounts)
Net Earnings Attributable to PNMR	$	43,662	$	48,552	$	64,366	$	62,981
Average Number of Common Shares:
Outstanding during period	86,673		86,673		86,673		86,673
Equivalents from convertible preferred stock (Note 7)	4,363		4,778		4,638		4,778
Vested awards of restricted stock	164		111		154		105
Average Shares - Basic	91,200		91,562		91,465		91,556
Dilutive Effect of Common Stock Equivalents ⁽¹⁾:
Stock options and restricted stock	542		219		516		258
Average Shares - Diluted	91,742		91,781		91,981		91,814
Net Earnings Per Share of Common Stock:
Basic	$	0.48	$	0.53	$	0.70	$	0.69
Diluted	$	0.48	$	0.53	$	0.70	$	0.69


(1)	Excludes the effect of out-of-the-money options for 1,923,608 shares of common stock at September 30, 2011.