UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITES EXCHANGE ACT OF 1934
Date of Report (Date of earliest events reported) February 21, 2002
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(February 19, 2002)
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PNM RESOURCES, INC.
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(Formerly known as Manzano Corporation)
(Exact name of registrant as specified in its charter)
New Mexico Commission 85-0468296
---------------------------- File Number 333-32170 -----------------------
(State or Other Jurisdiction --------- (I.R.S. Employer
of Incorporation) Identification) Number)
Alvarado Square, Albuquerque, New Mexico 87158
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(Address of principal executive offices) (Zip Code)
(505) 241-2700
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year,
if changed since last report)
Item 5. Other Events
The following is a press release issued by the Company on February 19, 2002 and
is being filed herewith under Item 5. Other Events.
PNM Resources Raises Dividend
Albuquerque, N.M., February 19, 2002 -- The Board of Directors of PNM Resources
(NYSE:PNM) today approved a 10 percent increase in the PNM Resources common
stock dividend. The increase raises the quarterly dividend to 22 cents per
share, for an indicated annual dividend of 88 cents per share. The new quarterly
dividend will be paid May 17, 2002, to shareholders of record as of May 2, 2002.
"Raising our dividend reinforces our continuing commitment to offering investors
an attractive return while appropriately managing risk," said PNM Resources
Chairman, President and Chief Executive Officer Jeff Sterba. "This increase in
our common stock dividend reflects PNM's strong financial performance and
demonstrates our confidence in the company's future. Over the last year,
significant uncertainties affecting dividend policy have been removed, such as
the delay in retail electric competition in New Mexico until 2007."
The increase is the first since PNM Resources was activated as the parent
company of Public Service Company of New Mexico at the end of 2001. The Board
approved a policy for future dividend increases in the range of 8 to 10 percent
annually, targeting a payout of between 50-60 percent of regulated earnings.
"Last year's record earnings from wholesale activities substantially enhanced
our cash position and boosted retained earnings. We believe the ongoing cash
flow from operations will allow us to fund the planned increase in PNM's
generating capacity, invest to support continued expansion of our electric and
gas distribution system, and sustain the common stock dividend at this higher
level.
"Our financial strategy aims to preserve the investment grade credit rating of
our core utility business as we expand PNM's generation portfolio," Sterba
continued. "We have two new plants coming on line in 2002, adding 215 megawatts
to our existing 1,653 MW capacity. About three quarters of our generation is now
committed under long-term sales contracts, and we plan to continue to add
capacity as market conditions justify the investment."
PNM Resources is an energy holding company based in Albuquerque, New Mexico. Its
principal subsidiary is PNM, Public Service Company of New Mexico, which
provides electric power and natural gas utility services to more than 1.3
million people in New Mexico. The company also sells power on the wholesale
market in the Western U.S. PNM Resources stock is traded primarily on the NYSE
under the symbol PNM.
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release that relate to future events are made
pursuant to the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based upon current expectations and the company
assumes no obligation to update this information. Because actual results may
differ materially from expectations, the company cautions readers not to place
undue reliance on these statements. A number of factors, including weather, fuel
costs, changes in supply and demand in the market for electric power, the
performance of generating units and transmission system and uncertainties
relating to litigation with Western Resources and related costs, and state and
federal regulatory and legislative decisions and actions, including the
wholesale electric power pricing mitigation plan ordered by the Federal Energy
Regulatory Commission (FERC) on June 18, 2001, rulings issued by the New Mexico
Public Regulation Commission (NMPRC) pursuant to the Electric Utility Industry
Restructuring Act of 1999, as amended, and in other cases now pending or which
may be brought before the FERC or NMPRC could cause future events to differ from
what is described in this release. For a detailed discussion of the important
factors affecting PNM Resources, please see "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the PNM Form 10-K
for the year ended December 31, 2000, Form 10-Q for the quarter ended September
30, 2001 and PNM Resources and PNM Form 8-K filings with the Securities and
Exchange Commission.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PNM RESOURCES, INC.
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(Registrant)
Date: February 21, 2002 /s/ John R. Loyack
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John R. Loyack
Vice President, Corporate Controller
and Chief Accounting Officer
(Officer duly authorized to sign this report)
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