Exhibit 99.1 PNM Resources Earns $25.0 Million in First Quarter Lower wholesale power prices reduced revenues and earnings ALBUQUERQUE, N.M. April 23, 2002 -PNM Resources (NYSE:PNM) today reported net earnings of $25.0 million, or $0.63 per diluted share, for the quarter ended March 31, 2002, compared to net earnings of $63.6 million, or $1.60 per diluted share, for the first quarter of 2001. Total operating revenues for the quarter were $314.0 million, compared to $736.5 million for the same period last year. There were no one-time items or non-recurring gains or losses included in earnings for the first quarter 2002. In the comparable quarter last year, the company recorded non-recurring losses related to the impairment of a technology investment and transaction costs for the terminated Western Resources transaction that reduced earnings by $0.18 cents per share; ongoing earnings for the first quarter 2001 were $1.78 per diluted share. Power Marketing Lower wholesale power prices compared to the same period last year were primarily responsible for the overall decline in revenues and earnings in the latest quarter. Wholesale revenues averaged $24 per megawatt-hour (MWh) for the quarter, compared to an average of $135 per MWh in the same period in 2001. "A weak regional economy and mild weather in the Western US reduced prices for power below last year's levels," said PNM Resources Chairman, President and Chief Executive Officer Jeff Sterba. "Although we have seen some recovery in the wholesale market from the lows reached at the end of last year, margins and marketing activity are still significantly below the record levels they reached in the first quarter of 2001." Forward power prices trended upward through the first quarter, although still substantially below last year. As the region enters the summer period of peak power demand, pricing levels and activity in the wholesale market will depend upon: - temperatures in the Western states, - the strength of the economic recovery now underway, - the availability of generation resources to meet the growing demand for power, and - regulatory policy. Wholesale electric volume for the latest quarter was 2.3 million MWh, down 26 percent from the 3.2 million MWh in wholesale sales during the comparable period in 2001. Fuel and purchased power expense for first quarter 2002 was down 74 percent from the same period last year, primarily due to the reduced trading volume. Total non-fuel operations and maintenance expense for the quarter was up 3.1 percent, to $40.6 million, primarily due to increased labor expenses and an increase in costs associated with the Four Corners Generating Station, in which PNM is a part owner. 4 Exhibit 99.1 (continued) Utility Operations PNM's electric and gas utility, which serves 382,000 electric and 444,000 gas customers in New Mexico, reported an 0.7 percent increase in electric revenues for the period, to $135.2 million. Gas revenues, which include the cost of gas passed through to customers, declined 43.1 percent for the quarter, to $109.2 million, primarily as the result of lower natural gas prices during the first quarter of 2002 as compared to the same period in the previous year. Weather for the quarter in PNM's New Mexico service territory was relatively unchanged from the previous year. Retail electric sales increased 1.2 percent for the quarter. Earnings Guidance Based on first quarter results and management's forecast of wholesale price trends through the remainder of the year, PNM Resources has revised its 2002 earnings guidance to between $2.60 and $2.85 per diluted share, down from the previous guidance in the range of $3.00. Factors that could affect results include: prices prevailing in the wholesale power market and the cost of natural gas; the level of trading activity in the market; and relative amount of price movement within the market over the course of the year. PNM Resources is an energy holding company based in Albuquerque, New Mexico. Its principal subsidiary is 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 US. PNM Resources stock is traded primarily on the NYSE under the symbol PNM. The PNM Resources first quarter conference call with financial analysts and investors will be broadcast live over the Internet at 9:00 a.m. EDT on Wednesday, April 24. The webcast can be accessed through the company website at pnm.com. 5 Exhibit 99.1 (continued) PNM RESOURCES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EARNINGS Three Months Ended March 31 --------------------------------- 2002 2001 --------------- --------------- (Unaudited) (In thousands except per share) amounts) Operating Revenues Electric..................................... $203,963 $544,594 Gas.......................................... 109,201 191,936 Unregulated.................................. 832 - --------------- --------------- Total operating revenues................... 313,996 736,530 --------------- --------------- Operating Expenses Cost of energy sold.......................... 155,784 497,098 Operation and maintenance expenses........... 82,896 89,790 Depreciation and amortization................ 24,778 24,219 Taxes, other than income taxes............... 8,484 7,217 Income taxes, net............................ 9,366 40,906 --------------- --------------- Total operating expenses................... 281,308 659,230 --------------- --------------- Operating income........................... 32,688 77,300 --------------- --------------- Other Income and Deductions, Net of Tax......... 7,387 2,634 --------------- --------------- Income before interest charges............. 40,075 79,934 Net Interest Charges............................ 15,126 16,382 --------------- --------------- Net Earnings.................................... 24,949 63,552 Preferred Stock Dividend Requirements........... 146 146 --------------- --------------- Net Earnings Applicable to Common Stock......... $ 24,803 $ 63,406 =============== =============== Earnings Per Share of Common Stock (Basic)...... $ 0.63 $ 1.62 =============== =============== Average Shares Outstanding (Basic).............. 39,118 39,118 =============== =============== Earnings Per Share of Common Stock (Diluted).... $ 0.63 $ 1.60 =============== =============== Average Shares Outstanding (Diluted)............ 39,649 39,599 =============== =============== Dividends Paid Per Share of Common Stock........ $ 0.20 $ 0.20 =============== =============== 6 Exhibit 99.1 (continued) PNM RESOURCES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31, December 31, ---------------- ------------------ 2002 2001 ---------------- ------------------ (Unaudited) (In thousands) ASSETS Total utility plant......................................... $2,748,636 $2,738,990 Accumulated depreciation and amortization................... (1,254,787) (1,234,629) Construction work in progress............................... 301,646 249,656 Nuclear fuel, net of accumulated amortization............... 25,817 26,940 ---------------- ------------------ Net Utility Plant......................................... 1,821,312 1,780,957 ---------------- ------------------ Other Property and Investments................................ 441,824 554,237 ---------------- ------------------ Current Assets Cash and cash equivalents................................... 9,979 26,057 Accounts receivables, net of allowance for uncollectible accounts................................... 120,599 147,787 Other receivables........................................... 44,495 52,158 Inventories................................................. 37,259 36,483 Short-term investments...................................... 152,687 45,111 Other current assets........................................ 33,761 41,901 ---------------- ------------------ Total Current Assets...................................... 398,780 349,497 ---------------- ------------------ Deferred Charges............................................... 268,543 249,947 ---------------- ------------------ Total Assets.............................................. $2,930,459 $2,934,638 ================ ================== 7 Exhibit 99.1 (continued) PNM RESOURCES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31, December 31, ---------------- ------------------ 2002 2001 ---------------- ------------------ (Unaudited) (In thousands) CAPITALIZATION AND LIABILIITES Capitalization Common stock..................................................... $ 623,149 $ 625,632 Accumulated other comprehensive income, net of tax............... (26,422) (28,996) Retained earnings................................................ 431,586 415,388 Minority interest................................................ 11,053 11,652 Preferred stock.................................................. 12,800 12,800 Long-term debt, less current maturities.......................... 953,897 953,884 ---------------- ------------------ Total Capitalization........................................... 2,006,063 1,990,360 ---------------- ------------------ Current Liabilities Short-term debt.................................................. 77,800 35,000 Accounts payable................................................. 99,592 120,918 Accrued interest and taxes....................................... 53,050 72,022 Other current liabilities........................................ 86,774 101,697 ---------------- ------------------ Total Current Liabilities...................................... 317,216 329,637 ---------------- ------------------ Deferred Credits Accumulated deferred income taxes................................ 120,359 120,153 Accumulated deferred investment tax credits...................... 43,931 44,714 Other deferred credits........................................... 442,890 449,774 ---------------- ------------------ Total Deferred Credits......................................... 607,180 614,641 ---------------- ------------------ Total Capitalization and Liabilities........................... $ 2,930,459 $ 2,934,638 ================ ================== 8 Exhibit 99.1 (continued) PNM RESOURCES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS Three Months Ended March 31, --------------------------------- 2002 2001 --------------- --------------- (Unaudited) (In thousands) Cash Flows From Operating Activities: Net earnings........................................................... $ 24,949 $ 63,552 Adjustments to reconcile net earnings to net cash flows from operating activities: Depreciation and amortization...................................... 27,352 25,080 Other, net......................................................... (25,853) 6,462 Changes in certain assets and liabilities: Accounts receivables............................................. 27,188 (33,388) Other assets..................................................... (6,279) 23,630 Accounts payable................................................. (21,326) (40,075) Other liabilities................................................ (31,846) 64,251 --------------- --------------- Net cash flows (used) provided from operating activities... (5,815) 109,512 --------------- --------------- Cash Flows From Investing Activities: Utility plant additions................................................ (69,420) (55,820) Return of principle of PVNGS lease lessor notes........................ 8,996 8,535 Other investing........................................................ 18,413 109 --------------- --------------- Net cash flows used in investing activities................ (42,011) (47,176) --------------- --------------- Cash Flows From Financing Activities: Borrowings............................................................. 42,800 - Dividends paid......................................................... (7,970) (7,965) Other Financing........................................................ (3,082) (761) --------------- --------------- Net cash flows used by financing activities........................ 31,748 (8,726) --------------- --------------- Increase (Decrease) in Cash and Cash Equivalents....................... (16,078) 53,610 Beginning of Period.................................................... 26,057 107,691 --------------- --------------- End of Period.......................................................... $ 9,979 $ 161,301 =============== =============== Supplemental Cash Flow Disclosures: Interest paid.......................................................... $ 16,183 $ 17,748 =============== =============== Income taxes paid, net of refunds...................................... $ 38,283 $ 3,400 =============== =============== 9 Exhibit 99.1 (continued) PNM RESOURCES, INC. AND SUBSIDIARIES COMPARATIVE OPERATING STATISTICS The following table shows electric revenues by customer class and average customers: Electric Revenues (Thousands of dollars) Three Months Ended March 31, ------------------------------ 2002 2001 ------------- -------------- Residential................................... $50,722 $49,197 Commercial.................................... 55,005 54,137 Industrial.................................... 19,628 19,837 Other......................................... 10,066 11,352 ------------- -------------- ------------- -------------- $135,421 $134,523 ============= ============== Average Customers............................. 382,000 375,000 ============= ============== The following table shows electric sales by customer class: Electric Sales (Megawatt hours) Three Months Ended March 31, 2002 2001 ------------ ------------ Residential.................................. 588,996 572,199 Commercial................................... 711,259 713,198 Industrial................................... 392,346 388,135 Other........................................ 46,874 45,033 ------------ ------------ 1,739,475 1,718,565 ============ ============ 10 Exhibit 99.1 (continued) PNM RESOURCES, INC. AND SUBSIDIARIES COMPARATIVE OPERATING STATISTICS The following table shows gas revenues by customer and average customers: Gas Revenues (Thousands of dollars) Three Months Ended March 31, ---------------------------- 2002 2001 ------------- ------------- Residential................................... $72,112 $121,589 Commercial.................................... 22,399 36,797 Industrial.................................... 649 13,537 Transportation*............................... 3,611 4,002 Other......................................... 10,430 16,011 ------------- ------------- $109,201 $191,936 ============= ============= Average customers............................. 444,000 435,000 ============= ============= *Customer-owned gas. The following table shows gas throughput by customer class: Gas Throughput (Thousands of decatherms) Three Months Ended March 31, ---------------------------- 2002 2001 ----------- ----------- Residential.................................. 13,516 12,481 Commercial................................... 4,970 4,207 Industrial................................... 172 1,980 Transportation*.............................. 7,397 9,178 Other........................................ 1,990 1,667 ----------- ----------- 28,045 29,513 =========== =========== *Customer-owned gas. 11 Exhibit 99.1 (continued) PNM RESOURCES, INC. AND SUBSIDIARIES COMPARATIVE OPERATING STATISTICS The following table shows revenues by customer class: Generation and Trading Revenues By Market (Thousands of dollars) Three Months Ended March 31, -------------------------------- 2002 2001 -------------- --------------- Intersegment sales.................... $ 81,950 $ 80,917 Long-term contracts................... 14,337 28,814 Trading *............................. 51,476 378,051 Other................................. 2,907 3,383 -------------- --------------- $ 150,670 $491,165 ============== =============== *Includes mark-to-market gains/(losses). The following table shows sales by customer class: Generation and Trading Sales By Market (Megawatt hours) Three Months Ended March 31, -------------------------------- 2002 2001 -------------- --------------- Intersegment sales....................... 1,739,475 1,718,565 Long-term contracts...................... 281,153 478,053 Trading.................................. 2,060,242 2,680,078 -------------- --------------- 4,080,870 4,876,696 ============== =============== 12