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Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
The following segment presentation is based on the methodology that management uses for making operating decisions and assessing performance of its various business activities. A reconciliation of the segment presentation to the GAAP financial statements is provided.

PNM

PNM includes the retail electric utility operations of PNM that are subject to traditional rate regulation by the NMPRC. PNM provides integrated electricity services that include the generation, transmission, and distribution of electricity for retail electric customers in New Mexico. PNM also includes the generation and sale of electricity into the wholesale market, which includes the asset optimization of PNM’s jurisdictional capacity, as well as providing transmission services to third parties. FERC has jurisdiction over wholesale power and transmission rates. In 2023, ETBC I, a special purpose entity that is wholly-owned by PNM, was formed for the limited purpose of purchasing, owning, and administering energy transition property, issuing Securitized Bonds, and performing related activities. See Note 6.

TNMP

TNMP is an electric utility providing services in Texas under the TECA. TNMP’s operations are subject to traditional rate regulation by the PUCT. TNMP provides transmission and distribution services at regulated rates to various REPs that, in turn, provide retail electric service to consumers within TNMP’s service area. TNMP also provides transmission services at regulated rates to other utilities that interconnect with TNMP’s facilities.
Corporate and Other

The Corporate and Other segment includes PNMR holding company activities, primarily related to corporate level debt and PNMR Services Company. The activities of PNMR Development and the equity method investment in NMRD are also included in Corporate and Other, until the close of the sale of NMRD on February 27, 2024 (Note 16). Eliminations of intercompany transactions are reflected in the Corporate and Other segment.

The following tables present summarized financial information for PNMR by segment. PNM and TNMP each operate in only one segment. Therefore, tabular segment information is not presented for PNM and TNMP.

PNMR SEGMENT INFORMATION
PNMTNMPCorporate
and Other		PNMR Consolidated
(In thousands)
Three Months Ended June 30, 2024
Electric operating revenues$333,671 $154,431 $— $488,102 
Cost of energy114,772 39,934 — 154,706 
Utility margin218,899 114,497 — 333,396 
Other operating expenses106,578 34,149 (7,427)133,300 
Depreciation and amortization54,230 31,033 9,150 94,413 
Operating income (loss)58,091 49,315 (1,723)105,683 
Interest income (expense)4,443 127 (100)4,470 
Other income (deductions)
3,869 2,705 36 6,610 
Interest charges(25,880)(14,451)(15,497)(55,828)
Segment earnings (loss) before income taxes
40,523 37,696 (17,284)60,935 
Income taxes (benefit)5,821 7,771 (4,621)8,971 
Segment earnings (loss)
34,702 29,925 (12,663)51,964 
Valencia non-controlling interest
(3,783)— — (3,783)
Subsidiary preferred stock dividends
(132)— — (132)
Segment earnings (loss) attributable to PNMR
$30,787 $29,925 $(12,663)$48,049 
Six Months Ended June 30, 2024
Electric operating revenues$641,786 $283,193 $— $924,979 
Cost of energy212,184 74,826 — 287,010 
Utility margin429,602 208,367 — 637,969 
Other operating expenses213,044 66,899 (15,847)264,096 
Depreciation and amortization107,517 61,415 18,668 187,600 
Operating income (loss)109,041 80,053 (2,821)186,273 
Interest income (expense)8,970 296 (216)9,050 
Other income (deductions)
24,415 3,581 (14,999)12,997 
Interest charges(50,996)(27,787)(30,807)(109,590)
Segment earnings (loss) before income taxes
91,430 56,143 (48,843)98,730 
Income taxes (benefit)11,632 11,635 (26,867)(3,600)
Segment earnings (loss)
79,798 44,508 (21,976)102,330 
Valencia non-controlling interest
(6,827)— — (6,827)
Subsidiary preferred stock dividends
(264)— — (264)
Segment earnings (loss) attributable to PNMR
$72,707 $44,508 $(21,976)$95,239 
At June 30, 2024:
Total Assets
$7,060,151 $3,354,923 $168,336 $10,583,410 
Goodwill
$51,632 $226,665 $— $278,297 
PNMTNMPCorporate
and Other		PNMR Consolidated
(In thousands)
Three Months Ended June 30, 2023
Electric operating revenues$338,242 $138,914 $— $477,156 
Cost of energy133,609 38,843 — 172,452 
Utility margin204,633 100,071 — 304,704 
Other operating expenses106,154 33,395 (6,314)133,235 
Depreciation and amortization44,064 27,949 7,126 79,139 
Operating income (loss)54,415 38,727 (812)92,330 
Interest income (expense)5,370 121 (132)5,359 
Other income (deductions)3,695 1,512 655 5,862 
Interest charges(20,766)(11,412)(13,721)(45,899)
Segment earnings (loss) before income taxes
42,714 28,948 (14,010)57,652 
Income taxes (benefit)7,411 4,316 (3,498)8,229 
Segment earnings (loss)
35,303 24,632 (10,512)49,423 
Valencia non-controlling interest
(3,987)— — (3,987)
Subsidiary preferred stock dividends
(132)— — (132)
Segment earnings (loss) attributable to PNMR
$31,184 $24,632 $(10,512)$45,304 
Six Months Ended June 30, 2023
Electric operating revenues$768,407 $252,826 $— $1,021,233 
Cost of energy343,462 70,676 — 414,138 
Utility margin424,945 182,150 — 607,095 
Other operating expenses204,876 66,247 (12,662)258,461 
Depreciation and amortization87,750 55,389 14,074 157,213 
Operating income (loss)132,319 60,514 (1,412)191,421 
Interest income (expense)10,219 235 (252)10,202 
Other income (deductions)10,728 1,648 528 12,904 
Interest charges(38,888)(21,837)(26,097)(86,822)
Segment earnings (loss) before income taxes
114,378 40,560 (27,233)127,705 
Income taxes (benefit)19,240 5,895 (7,126)18,009 
Segment earnings (loss)
95,138 34,665 (20,107)109,696 
Valencia non-controlling interest
(9,114)— — (9,114)
Subsidiary preferred stock dividends
(264)— — (264)
Segment earnings (loss) attributable to PNMR
$85,760 $34,665 $(20,107)$100,318 
At June 30, 2023:
Total Assets
$6,440,357 $2,916,206 $270,407 $9,626,970 
Goodwill
$51,632 $226,665 $— $278,297 

Non-GAAP Financial Measures

The Company defines utility margin as electric operating revenues less cost of energy. Cost of energy consists primarily of fuel and purchase power costs for PNM and costs charged by third-party transmission providers for TNMP. The Company believes that utility margin provides a more meaningful basis for evaluating operations than electric operating revenues since substantially all such costs are offset in revenues as fuel and purchase power costs are passed through to customers under PNM’s FPPAC and third-party transmission costs are passed on to consumers through TNMP’s transmission cost recovery factor. Utility margin is not a financial measure required to be presented and is considered a non-GAAP measure. PNM and TNMP do not intend for utility margin to represent any financial measure as defined by GAAP. However, the
calculation of utility margin, as presented, most closely compares to gross margin as defined by GAAP. Reconciliations between utility margin and gross margin are presented below.
PNMTNMPCorporate and OtherPNMR Consolidated
(In thousands)
Three Months Ended June 30, 2024
Gross margin$124,735 $73,763 $— $198,498 
Energy production costs24,584 — — 24,584 
Transmission and distribution costs15,350 9,701 — 25,051 
Depreciation and amortization54,230 31,033 — 85,263 
1
Utility margin$218,899 $114,497 $— $333,396 
Six Months Ended June 30, 2024
Gross margin$245,589 $128,837 $— $374,426 
Energy production costs46,796 — — 46,796 
Transmission and distribution costs29,700 18,115 — 47,815 
Depreciation and amortization107,517 61,415 — 168,932 
1
Utility margin$429,602 $208,367 $— $637,969 
Three Months Ended June 30, 2023
Gross margin$120,215 $61,412 $— $181,627 
Energy production costs25,599 — — 25,599 
Transmission and distribution costs14,755 10,710 — 25,465 
Depreciation and amortization44,064 27,949 — 72,013 
1
Utility margin$204,633 $100,071 $— $304,704 
Six Months Ended June 30, 2023
Gross margin$260,596 $107,742 $— $368,338 
Energy production costs47,957 — — 47,957 
Transmission and distribution costs28,642 19,019 — 47,661 
Depreciation and amortization87,750 55,389 — 143,139 
1
Utility margin$424,945 $182,150 $— $607,095 
1 Corporate and Other depreciation and amortization represents corporate level activities that are billed at cost and reflected as general and administrative expenses at PNM and TNMP and therefore are not a component of gross margin or utility margin. See Note 1.