UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest events reported) January 15, 2004
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(January 15, 2004)
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Commission Name of Registrants, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
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333-32170 PNM Resources, Inc. 85-0468296
(A New Mexico Corporation)
Alvarado Square
Albuquerque, New Mexico 87158
(505) 241-2700
1-6986 Public Service Company of New Mexico 85-0019030
(A New Mexico Corporation)
Alvarado Square
Albuquerque, New Mexico 87158
(505) 241-2700
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(Former name, former address and former fiscal year,
if changed since last report)
Item 9. Regulation FD Disclosure
The following is a press release issued by the Company on January 15, 2004 and
other select financial information.
PNM Resources Forecasts 2004 Earnings of $1.90 to $2.15 per Share
ALBUQUERQUE, N.M., January 15, 2004 -PNM Resources (NYSE: PNM) today issued
earnings guidance for 2004. The company estimates that ongoing earnings, without
any one-time gains or charges, will range between $1.90 and $2.15 per share in
2004. This compares to a 2003 earnings range of $1.80 to $2.05. PNM plans to
announce 2003 fourth quarter and full year earnings on February 10, 2004.
Key Factors for 2004 Results
Key drivers expected to generate earnings growth in 2004 include: improving
long-term wholesale electric sales, the implementation of the new gas rates,
lower fuel costs, reduced interest costs, growth in gas and electric load and
continued efficiencies in managing operating costs. These potential improvements
will be partially offset by the impact of the electric rate reduction
implemented in September 2003, lower wholesale electric market prices and higher
benefits costs in 2004.
"The completion of our gas rate case, strong growth in our long-term contract
business and continued progress on cost control in a fixed rate environment are
expected to provide a strong base for growth in 2004", said PNM Resources' CEO
Jeff Sterba.
Volatility Factors Affecting 2004 Earnings Performance
Earnings variability within the expected range of $1.90 to $2.15 for 2004 will
be affected by a number of factors, including:
o Prices and liquidity in the wholesale power market and the company's
ability to expand its portfolio of long-term sales contracts in that
market.
o Weather in New Mexico over the course of the year and growth in PNM's
retail electric and gas utility in New Mexico.
o The performance of PNM generating plants and fuel costs for those
plants.
o Management's continued ability to efficiently manage operating costs
throughout the company.
These and other significant variables underlying the company's current 2004
earnings forecast are discussed in more detail in the investor section of the
PNM website at pnm.com.
PNM Resources is an energy holding company based in Albuquerque, New Mexico.
PNM, the principal subsidiary of PNM Resources, serves about 450,000 natural gas
customers and 390,000 electric customers 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. For more information about our
company, see our web site at www.pnm.com.
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PNM Resources
Financial Information Issued January 15, 2004
Earnings Guidance for 2004
2004 Earnings Range: $1.90 - $2.15
Low End Assumptions
o Average wholesale price $37/MWh
o Merchant sales velocity 1.7x
o Retail electric load growth 1.0%
o Retail gas customer growth 1.8%
EPS Opportunities/Risks
o Wholesale price $1 +/- = $0.02
o Merchant sales velocity 0.1x +/- = $0.005
o Retail electric growth 1% +/- = $0.03
o Retail gas growth 1% +/- = $0.02
Please note that these are annualized simplifying guidelines that attempt to
quantify a number of complex and interdependent factors affecting the company's
earnings. These are provided to generally assist investors in developing their
own independent assessment of the company's future earnings prospects.
2003 Estimated Performance vs. 2004 Assumptions Guidance
2003 Estimated 2004 Low End
Performance Assumptions
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Average wholesale price $42/MWh $37/MWh
Merchant sales velocity 1.95x 1.7x
Retail electric load growth 3.0% 1.0%
Retail gas growth 1.8% 1.8%
Weather Information
Heating Degree Days/Cooling Degree Days
2003 Q1 Q2 Q3 Q4 2003 Total
---- -- -- -- -- ----------
HDD 1,868 294 1 1,529 3,692
CDD 0 447 1,198 26 1,671
10 year
Average average total
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HDD 1,977 280 956 4 3,941
CDD 0 380 956 4 1,340
The cooling degree day (CDD) value is the accumulation in degrees that the daily
mean temperature was above 65 degrees F. The heating degree day (HDD) value is
the accumulation in degrees that the daily mean temperature was below 65 degrees
F.
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
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Statements made in this filing and documents the Company files with the SEC that
relate to future events or the Company expectations, projections, estimates,
intentions, goals, targets and strategies are made pursuant to the Private
Securities Litigation Reform Act of 1995. You are cautioned that all
forward-looking statements are based upon current expectations and estimates and
we assume no obligation to update this information. Because actual results may
differ materially from those expressed or implied by the forward-looking
statements, PNM Resources cautions you not to place undue reliance on these
statements. Many factors could cause actual results to differ, and will affect
the Company's future financial condition, cash flow and operating results. These
factors include interest rates, weather, fuel costs, changes in supply and
demand in the market for electric power, wholesale power prices, market
liquidity, the competitive environment in the electric and natural gas
industries, the performance of generating units and transmission system, state
and federal regulatory and legislative decisions and actions, the outcome of
legal proceedings and the performance of state, regional and national economies.
For a detailed discussion of the important factors that affect PNM Resources and
that could cause actual results to differ from those expressed or implied by the
Company's forward-looking statements, please see "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the Company's
current and future Annual Reports on Form 10-K and Quarterly Reports on Form
10-Q and the Company's current and future Current Reports on Form 8-K, filed
with the SEC.
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PNM RESOURCES, INC. AND
PUBLIC SERVICE COMPANY OF NEW MEXICO
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(Registrants)
Date: January 15, 2004 /s/ Thomas Sategna
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Thomas Sategna
Vice President and Corporate Controller
(Officer duly authorized to sign this report)
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