XML 63 R44.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Fair Value of Derivative and Other Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value of Derivative and Other Financial Instruments [Abstract]  
Summary of Derivatives
PNM’s commodity derivative instruments that are recorded at fair value, all of which are accounted for as economic hedges and considered Level 2 fair value measurements, are presented in the following line items on the Condensed Consolidated Balance Sheets:
Economic Hedges
March 31,
2024		December 31,
2023
(In thousands)
Other current assets$835 $826 
Other current liabilities— — 
Net$835 $826 
Schedule of Commodity Contract Volume Positions Commodity contract volume positions are presented in MMBTU for gas related contracts and in MWh for power related contracts. The table below presents PNM’s net buy (sell) volume positions:
Economic Hedges
MMBTUMWh
March 31, 2024—(15,360)
December 31, 2023—(15,360)
Schedule of Gross Realized Gains and Losses
Gains and losses recognized on the Condensed Consolidated Statements of Earnings related to investment securities in the NDT, SJGS decommissioning, and coal mine reclamation trusts are presented in the following table:

Three Months Ended
March 31,
20242023
(In thousands)
Equity securities:
Net gains (losses) from equity securities sold$9,871 $(844)
Net gains (losses) from equity securities still held(1,205)7,477 
Total net gains on equity securities
8,666 6,633 
Available-for-sale debt securities:
Net gains (losses) on debt securities
9,332 (191)
Net gains on investment securities
$17,998 $6,442 
Gross realized losses shown below exclude the (increase)/decrease in realized impairment losses of $13.4 million and $2.0 million for the three months ended March 31, 2024 and 2023.

Three Months Ended
March 31,
20242023
(In thousands)
Proceeds from sales
$302,510 $91,211 
Gross realized gains
13,679 3,428 
Gross realized (losses)
(7,912)(6,471)
Investments Classified by Contractual Maturity Date
At March 31, 2024, the available-for-sale debt securities held by PNM, had the following final maturities:

Fair Value
(In thousands)
Within 1 year
$34,176 
After 1 year through 5 years
11,915 
After 5 years through 10 years
8,634 
After 10 years through 15 years
9,998 
After 15 years through 20 years
5,626 
After 20 years
3,953 
$74,302 
Schedule of Investments
Items recorded at fair value by PNM on the Condensed Consolidated Balance Sheets are presented below by level of the fair value hierarchy along with gross unrealized gains on investments in available-for-sale debt securities:

GAAP Fair Value Hierarchy
TotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Unrealized Gains
(In thousands)
March 31, 2024
Cash and cash equivalents$122,332 $122,332 $— 
Equity securities:
Corporate stocks, common81,045 81,045 — 
Corporate stocks, preferred— — — 
Mutual funds and other131,306 131,306 — 
Uncategorized Collective Investment Trusts
39,179 
Available-for-sale debt securities:
     U.S. government27,041 27,041 — $1,874 
     International government— — — 
     Municipals35,260 — 35,260 1,227 
     Corporate and other12,001 12,001 795 
          $448,164 $361,724 $47,261 $3,896 
December 31, 2023
Cash and cash equivalents$93,873 $93,873 $— 
Equity securities:
Corporate stocks, common77,422 77,422 — 
Corporate stocks, preferred4,323 504 3,819 
Mutual funds and other57,966 57,966 — 
Available-for-sale debt securities:
     U.S. government35,113 34,522 591 $2,055 
     International government8,735 — 8,735 104 
     Municipals53,436 — 53,436 2,872 
     Corporate and other113,540 — 113,540 9,285 
          $444,408 $264,287 $180,121 $14,316 
Schedule of Carrying Amount and Fair Value of Items Not Recorded at Fair Value
The carrying amounts and fair values of long-term debt, all of which are considered Level 2 fair value measurements and are not recorded at fair value on the Condensed Consolidated Balance Sheets, are presented below:

Carrying AmountFair Value
March 31, 2024(In thousands)
PNMR$4,638,825 $4,335,572 
PNM2,262,325 2,086,662 
TNMP1,377,255 1,248,910 
December 31, 2023
PNMR$4,521,811 $4,260,509 
PNM2,261,780 2,107,588 
TNMP1,260,880 1,152,922 
Schedule Of Commodity Contract Contingent Consideration PNM has contingent requirements to provide collateral under certain commodity contracts having an objectively determinable collateral provision, that are in net liability positions, and that are not fully collateralized with cash. Contractual liability represents those commodity derivative contracts recorded at fair value on the balance sheet, determined on an individual contract basis without offsetting amounts for individual contracts that are in an asset position and could be offset under master netting agreements with the same counterparty. Cash collateral posted under these contracts does not reflect letters of credit under the Company’s revolving credit facilities that may have been issued as collateral. Net exposure is the net contractual liability for all contracts, including those designated as normal purchase and normal sale, offset by existing collateral and by any offsets available under master netting agreements, including both assets and liability positions. At March 31, 2024 and December 31, 2023, PNM had zero contractual liability, zero posted cash collateral, and no such contracts in a net liability position.