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TXNM Energy - $TXNM - Earnings Analysis: Increased long-term earnings per share growth target to 7% to 9%.

By sagebytes in Business —

Business Model

TXNM Energy delivers energy to homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM.

Revenue Sources

  • Electric Operating Revenues from PNM (New Mexico)
  • Electric Operating Revenues from TNMP (Texas)

Income Statement Analysis

  • Electric Operating Revenues increased by 1.65% year-over-year, indicating growth in the company's core business.
  • The decrease in Cost of Energy by 27.17% significantly contributed to the increased Operating Income.
  • Operating income increased significantly due to regulatory disallowances.
  • Increase in Net Earning attributable to TXNM due to the decline in Net earnings attributable to Valencia Non-controlling Interest.

Balance Sheet Analysis

  • Increase in Long-Term Debt (incl. current portion) indicates continued investment and expansion activities.
  • The growth in Total Debt (incl. short-term) suggests increased financing needs to support operations and investments.

Capital Allocation

TXNM Energy's 5-year capital investment plan increased to $7.8 billion, a 26% increase over the prior 5-year plan, with a focus on grid infrastructure supporting growth and reliability.

Management Commentary

2024 results at high end of guidance

7% - 9% long-term EPS growth target

Overall Sentiment: Positive, focusing on growth, reliability, and infrastructure investments.

Disclaimer: This report is for informational purposes only and not investment advice. The analysis is based on limited information and subject to change. Investing in securities involves risks, including potential loss of principal. Past performance doesn't guarantee future results. Always conduct your own research, understand the risks, and consult a financial professional before making investment decisions.