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TXNM Energy completes name change from PNM Resources

EditorAhmed Abdulazez Abdulkadir
Published 05/08/2024, 11:46
TXNM
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ALBUQUERQUE - TXNM Energy, Inc. (NYSE: TXNM), formerly known as PNM Resources, announced the completion of its company name change as of last Friday. The common stock will continue to be listed on the New York Stock Exchange under the ticker "TXNM" from today.

The company's CUSIP number for the common stock remains the same at 69349H107. According to the announcement, the name change does not entail any significant structural changes or organizational impacts. Shareholders of the former PNM Resources do not need to take any action, as all outstanding shares have automatically transitioned to TXNM Energy shares.

In line with the rebranding, TXNM Energy has launched a new website accessible at www.txnmenergy.com. The energy holding company, headquartered in Albuquerque, New Mexico, provides energy to over 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM.

In other recent news, PNM Resources reported earnings per share of $0.60 in its second quarter 2024 earnings call, affirming its guidance range of $2.65 to $2.75 per share for the year. The company is preparing for infrastructure investments in Texas and New Mexico, with a system resiliency plan estimated at $600 million. In response to Hurricane Beryl and increased demand, PNM Resources implemented 6-megawatt batteries and plans for an additional 30 megawatts.

The company is exploring transmission expansion and mobile generation in Texas and new resources in New Mexico. PNM Resources has also completed a planned issuance of junior subordinated convertible notes and intends to issue $100 million of equity annually through 2028.

In terms of regulatory updates, PNM Resources is awaiting approval for its resiliency filing, expected in the first quarter of 2025. The company is also anticipating interveners' questions before settlement discussions in the New Mexico rate case process.

In terms of future plans, PNM Resources is developing a 20-year transmission plan to meet growing demand and plans to file a proposal for new resources to be in service by 2028. The company is also conducting a study with ERCOT for transmission development in West Texas. These are among the recent developments for the company.

InvestingPro Insights

As TXNM Energy, Inc. (NYSE: TXNM) embarks on a new chapter with its recent rebranding, investors may be interested in how the company's financial health and market performance align with this change. According to InvestingPro data, TXNM has demonstrated a commitment to shareholder returns, having raised its dividend for 12 consecutive years, which is a testament to its financial stability and management's confidence in the company's future cash flows.

InvestingPro Tips suggest that TXNM is expected to see net income growth this year. This potential increase in profitability is a positive sign for investors, especially when considering the company's track record of maintaining dividend payments for 29 consecutive years. However, it's worth noting that TXNM operates with a significant debt burden, which could pose risks to future financial flexibility.

InvestingPro Data highlights include:

  • TXNM's net income growth projection for the current year.
  • The company's 12-year streak of dividend increases.
  • The fact that TXNM has maintained dividend payments for nearly three decades.

For those considering an investment in TXNM Energy, additional InvestingPro Tips are available, including insights on the company's cash burn rate and valuation multiples. There are 14 additional tips listed on InvestingPro, which can be accessed for a more comprehensive analysis at https://www.investing.com/pro/TXNM.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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