PNM Resources, Inc. (Holding Co.)

Good morning and welcome to the PNM Resources 2023 Earnings Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Lisa Goodman with Investor Relations. Please go ahead.

Thank you, Linnea, and thank you everyone for joining us this morning for the PNM Resources 2023 Earnings Call. Please note that the presentation for this conference call and other supporting documents are available on our website at pnmresources.com. Joining me today are PNM Resources Chairman and CEO, Pat Vincent-Colon, President and Chief Operating Officer, Don Terry, and Senior Vice President, Chief Financial Officer and Treasurer, Lisa Eden. Before I turn the call over to Pat, I need to remind you that some of the information provided this morning should be considered forward-looking statements pursuant to the Private Securities Litigation Reform Act of 1995. We caution you that all of the forward-looking statements are based upon current expectations and estimates, and that PNM Resources assumes no obligation to update this information. For a detailed discussion of factors affecting PNM resources results, please refer to our current and future annual reports on Form 10-K, quarterly reports on Form 10-Q, as well as reports on Form 8-K filed with the SEC. With that, I will turn the call over to Pat.

Thank you, Lisa. Good morning, everyone, and thank you for joining us today on Pay a Compliment Day. So even though I can't see any of you, let me just say that you are all looking really good this year. Now I'm going to get started on slide four. Some of you may be joining us for the first time, or possibly the first time in a few years since we announced our merger. While we were disappointed with the outcome, we have continued to advance our standalone business strategy to invest in the infrastructure needed to meet customer needs, enable the clean energy transition, and diversify our rate base. Yes, we're still standing, and we're better than we've ever been. The energy transition, along with customer needs for reliability and resiliency, results in substantial growth for our utility businesses. The continued increase in infrastructure needed to serve customers will more than double our rate base from 2020 to 2028. We have been improving the diversification of our rate base, prioritizing capital to make significant investments at PNMP to support the continued high growth in that service territory. These are recovered through the capital riders in place through the Public Utilities Commission of Texas. At PNM, an increase in transmission investments also benefits FERC customers and are recovered through the formula rate. As a result, more of our investments are recovered through these recovery mechanisms that were designed to encourage these investments. Over time, we've moved our TNMP and FERC rate base from a combined 31% back in 2018 to now more than 50%. And yes, you heard that right, TNMP and FERC rate base are now over half of our consolidated rate base. Turning to slide five, consistent execution of our plans has resulted in a strong track record of achieving our financial targets. We remain flexible, responding to changing conditions each year and making adjustments to stay on track. We hold ourselves accountable to delivering results. We have achieved 6% earnings and dividend growth since 2019 and are positioned to continue this trajectory even in the current market environment. And lastly, I'm still here and the team is still here, and we're focused on continuing to deliver our plans to customers, communities, and shareholders. Both Don and Lisa have been at the company over 20 years and have helped shape the course we've been charting. We had a strong financial profile three years ago, and with our increased diversification, it is even stronger today. Now turning to slide six, we are reporting ongoing earnings today of $2.82 for 2023, once again ahead of expectations. While some pieces of our recent P&M rate decision were disappointing, the questions around recovery of our legacy generation assets are resolved, and we now have a clear path going forward. From a 2024 base, we are targeting 6% to 7% earnings growth through 2028. This is based on a 10% rate-based growth over the same period, and Lisa will walk you through our financing assumptions in the earnings power slide. I know how much you have all missed that slide, and it's back. Our 2024 guidance incorporates the P&M rate decision in our range of 265 to 275. Don will talk more about our regulatory plans moving forward. But before that, let me provide a quick update on our sale of New Mexico Renewable Development, or NMRD. We are still on track to close this month. Our net proceeds are anticipated to be $115 million to reflect our 50% ownership share in the entity as we monetize the cash flows from this unregulated business. With that, Don, I'll turn it over to you.