Exhibit 99.2
1........2000 vs. 1999 Fourth Quarter and Year-End Earnings
Three Months Ended Twelve Months Ended
December 31 December 31
2000 1999 2000 1999
------------- ------------- ------------- --------------
Reported Earnings (diluted)...................... $ 0.35 $ 0.41 $ 2.53 $ 2.01
Special Gains or Charges......................... 0.23 0.02 0.05 (0.10)
------------- ------------- ------------- --------------
------------- ------------- ------------- --------------
Ongoing Earnings................................. $ 0.58 $ 0.43 $ 2.58 $ 1.91
============= ============= ============= ==============
2........Itemization of 2000 Special Gains or Charges
2000 Reported Earnings............................. $ 2.53
Acquisition Charge for New Operations and
Long-Term Wholesale Customer....................... $ 0.07 Third Quarter 2000 Maintenance
Legal Settlement................................... $ (0.21) Third Quarter 2000 Other Income
Reversal of Gas Rate Cases Reserves................ $ (0.07) Third Quarter 2000 Other Income
Write-Off of Regulatory Assets..................... $ 0.16 Fourth Quarter 2000 Income Taxes
Third/Fourth Operations and
Merger Related Expenses............................ $ 0.10 Quarter 2000 Maintenance
-----------
2000 Ongoing Earnings.............................. $ 2.58
===========
3........Electric Sales and Revenues
Twelve Months Twelve Months
GWh Sales Ended 12/31/00 Ended 12/31/99 % Change
Retail........................ 7,089 6,803 4.2 %
Wholesale..................... 12,352 11,172 10.6 %
------------ ------------ -----------
Total Sales................... 19,441 17,975 8.2 %
============ ============ ===========
Revenues (In Millions)
Retail........................ $ 518.7 $ 522.5 (0.7)%
Wholesale..................... 748.2 365.4 104.8 %
Other......................... 22.3 24.1 (7.3)%
------------ ------------ -----------
Total Revenues................ $ 1,289.2 $ 912.0 41.4 %
============ ============
7
4........2000 Quarterly Stock Data and Retained Earnings (unaudited)
In thousands except per share amounts
3/31/00 6/30/00 9/30/00 12/31/00 Year-End
Book Value per Common Share.......................$ 22.31 $ 22.55 $ 23.54 $ 23.64 -
Market Price per Common Share.....................$ 15.75 $ 15.44 $ 25.89 $ 26.81 -
Cash Flow per Share (a)...........................$ 0.68 $ 1.42 $ 1.51 $ 1.37 4.98
Retained Earnings Balance........................$241,836 $251,768 $290,718 $296,843 -
Average Shares
Outstanding - diluted............................. 40,002 39,597 39,651 39,598 39,710
Actual Shares Outstanding......................... 39,536 39,536 39,083 39,083 -
(a) preliminary
5........2001 Earnings' Drivers
Ongoing 2000 Earnings...................................... $ 2.58
Major changes from 2000:
- Electric Retail sales growth (3-3.5%).............. 0.15 - 0.17
- Gas sales growth & 2000 rate increase.............. 0.10 - 0.12
- Wholesale sales growth............................. 0.20 - 0.25
- Inflation (4%) and growth initiatives.............. (0.40)
- Depreciation....................................... (0.15)
- Operating improvements............................. 0.12
- 2000 Share repurchase.............................. 0.02
- Weather/Other...................................... Unknown
2001 Expectation........................................... $2.60 - $2.70
6........Issues Update
Issue Status
Effect of California PNM has historically sold about 7% of it's total
Energy Crisis on PNM wholesale sales into the California market. The
Wholesale Power Sales Company's market strategy has been successful
in high and low price markets. We make premium
margins because of our niche products and services
and have recorded substantial gains in the
wholesale arena since 1995.
Restructuring in New The energy crisis in California has created concern
Mexico in New Mexico and many are seeking a delay in open
access. A variety of legislative proposals are
likely to be introduced during the current
session. PNM is working with all parties to
ensure a competitive supply market and business
flexibility.
Merger with On November 9, 2000, PNM and Western Resources
Western Resources entered into an agreement whereby PNM would acquire
Western Resources' electric utility operations.
The proposed merger will enable PNM to become a
leading provider of energy services in the
Southwest and Midwest regions. It also increases
growth and cash flow stability. The company hopes
to finalize this transaction by early 2002.
8