Quarterly Operating Results (Unaudited)

Unaudited operating results by quarters for 2018 and 2017 are presented below. In the opinion of management of the Company, all adjustments (consisting of normal recurring accruals) necessary for a fair statement of the results of operations for such periods have been included.



	Quarter Ended
	March 31		June 30		September 30		December 31			⁽¹⁾
	(In thousands, except per share amounts)
PNMR
2018
Operating revenues	$	317,878	$	352,313	$	422,666	$	343,756
Operating income (loss)	46,132		79,329		127,990		(17,404		)
Net earnings (loss)	18,799		42,449		91,573		(51,539		)
Net earnings (loss) attributable to PNMR	14,990		38,208		87,521		(55,077		)
Net earnings (loss) attributable to PNMR per common share:
Basic	0.19		0.48		1.10		(0.70		)
Diluted	0.19		0.48		1.09		(0.69		)
2017
Operating revenues	$	330,178	$	362,320	$	419,900	$	332,605
Operating income	55,960		85,105		142,484		22,936
Net earnings (loss)	26,446		41,231		78,327		(50,585		)
Net earnings (loss) attributable to PNMR	22,862		37,555		73,739		(54,282		)
Net earnings attributable to PNMR per common share:
Basic	0.29		0.47		0.92		(0.68		)
Diluted	0.29		0.47		0.92		(0.68		)
PNM
2018
Operating revenues	$	236,232	$	264,511	$	331,374	$	259,848
Operating income (loss)	28,292		52,879		102,516		(38,654		)
Net earnings (loss)	11,514		30,781		81,428		(53,400		)
Net earnings (loss) attributable to PNM	7,837		26,672		77,508		(56,806		)
2017
Operating revenues	$	251,558	$	276,097	$	327,254	$	249,321
Operating income	38,331		59,164		113,252		1,778
Net earnings (loss)	20,110		30,476		65,283		(28,456		)
Net earnings (loss) attributable to PNM	16,658		26,932		60,827		(32,021		)
TNMP
2018
Operating revenues	$	81,646	$	87,802	$	91,292	$	83,908
Operating income	18,532		26,829		27,824		23,312
Net earnings	9,413		15,367		16,100		10,711
2017
Operating revenues	$	78,620	$	86,223	$	92,646	$	83,284
Operating income	17,965		26,286		29,474		19,879
Net earnings	7,604		12,204		14,727		1,024

⁽¹⁾ 2018 reflects pre-tax regulatory disallowances and restructuring costs of $63.3 million primarily resulting from the impairment of PNM’s 132 MW and 65 MW interests in SJGS Unit 4 and for an adjustment to PNM’s coal mine reclamation obligation for the mine that serves SJGS. See additional discussion under December 2018 Compliance Filing and under Coal Mine Reclamation in Note 16. 2017 reflects the impacts of changes in federal income tax rate of $57.5 million, $29.6 million, and $7.9 million for PNMR, PNM, and TNMP (Note 18). 2017 also reflects a pre-tax regulatory disallowance resulting from PNM’s NM 2016 Rate Case of $27.9 million (Note 17).