PNM Resources, a leading energy holding company, has announced the termination of its merger agreement with Avangrid. Following this news, the company's stock experienced a -6.4% movement, with shares now trading at $38.92.
Pat Vincent-Collawn, the Chairman and CEO of PNM Resources, expressed disappointment at Avangrid's decision, stating, "We are greatly disappointed with Avangrid's decision to terminate the merger agreement and its proposed benefits to our customers, communities and shareholders." He further emphasized the company's commitment to its strategic plans, focusing on infrastructure investments to meet future energy needs and targeting long-term earnings growth of 5%.
The merger agreement, initially announced in October 2020, had been extended through December 31, 2023, pending a decision from the New Mexico Supreme Court. All other federal and state approvals for the merger had been obtained in 2021.
Looking ahead, PNM Resources has scheduled a financial update conference call on February 6, 2024. During this call, the company will provide a financial update, including preliminary 2023 results, 2024 guidance, and the continued 5% long-term earnings growth target. Management will also discuss other company updates during the call.
PNM Resources, through its regulated utilities PNM and TNMP, provides electricity to over 800,000 homes and businesses in New Mexico and Texas. The company aims to achieve 100% emissions-free energy by 2040.
Investors and analysts can participate in the conference call by pre-registering, and a live webcast of the call will be available on the company's website.
For additional information, the company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $1,437 | $1,458 | $1,523 | $1,780 | $2,250 | $2,103 |
| Revenue Growth | n/a | 1.46% | 4.49% | 16.87% | 26.39% | -6.52% |
| Operating Margins | 16% | 10% | 19% | 17% | 18% | 16% |
| Net Margins | 7% | 6% | 12% | 12% | 8% | 8% |
| Net Income (MM) | $101 | $92 | $187 | $212 | $185 | $173 |
| Net Interest Expense (MM) | $127 | $121 | $114 | $97 | $128 | $175 |
| Depreciation & Amort. (MM) | $276 | $301 | $315 | $320 | $341 | $348 |
| Earnings Per Share | $1.07 | $0.97 | $2.15 | $2.27 | $1.97 | $1.79 |
| EPS Growth | n/a | -9.35% | 121.65% | 5.58% | -13.22% | -9.14% |
| Diluted Shares (MM) | 80 | 80 | 80 | 86 | 86 | 86 |
| Free Cash Flow (MM) | -$73 | -$113 | -$193 | -$387 | -$345 | -$465 |
| Capital Expenditures (MM) | $501 | $616 | $679 | $935 | $913 | $1,018 |
| Current Ratio | 0.59 | 0.3 | 0.39 | 0.49 | 0.46 | 0.33 |
