PNM Resources : Q1 2021 Presentation and Appendix

Q1 2021 Earnings Review

April 30, 2021

Contact Information and Safe Harbor Statement

Investor Relations Contact Information

Lisa Goodman

Director, Investor Relations and Shareholder Services

U.S. 1-505-241-2160

[e-mail]

Beilen Middleton

Senior Investor Relations Specialist

U.S. 1-505-241-2135

[e-mail]

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements made in this news release for PNM Resources, Inc. ("PNMR"), Public Service Company of New Mexico ("PNM"), or Texas-New Mexico Power Company ("TNMP") (collectively, the "Company") that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. PNMR, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR's, PNM's, and TNMP's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. Additionally, there are risks and uncertainties in connection with the proposed acquisition of us by AVANGRID which may adversely affect our business, future opportunities, employees and common stock, including without limitation, (i) the expected timing and likelihood of completion of the pending Merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending Merger that could reduce anticipated benefits or cause the parties to abandon the transaction, (ii) the failure by AVANGRID to obtain the necessary financing arrangement set forth in commitment letter received in connection with the Merger, (iii) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (iv) the risk that the parties may not be able to satisfy the conditions to the proposed Merger in a timely manner or at all, (v) risks related to disruption of management time from ongoing business operations due to the proposed Merger, and (vi) the risk that the proposed transaction and its announcement could have an adverse effect on the ability of PNMR to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company's Form 10-K, Form 10-Q filings and the information included in the Company's Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.

Non-GAAP Financial Measures

For an explanation of the non-GAAP financial measures that appear on certain slides in this presentation (ongoing earnings, ongoing earnings per diluted share and ongoing earnings guidance measures), as well as a reconciliation to GAAP measures, please refer to the Company's website at http://www.pnmresources.com/investors/results.cfm. Since the future differences between GAAP and ongoing earnings are frequently outside the control of the Company, management is generally not able to estimate the impact of the reconciling items between forecasted GAAP net earnings and ongoing earnings guidance, nor their probable impact on GAAP net earnings without unreasonable effort, therefore, management is generally not able to provide a corresponding GAAP equivalent for ongoing earnings guidance.

AVANGRID and PNM Resources Strategic Merger Update

Merger announced October 21, 2020,

expected to close in the second half of 2021

Approvals and expected timeframes:

Filing	Date Filed	Docket No.	Approvals/Clearances
Proxy filing / Shareholder approval	1/5/2021	N/A	Approved 2/12/2021
Department of Justice (Hart-Scott-	12/21/2020	20210767	Waiting period expired 1/20/2021
Rodino Clearance)
Committee on Foreign Investment	12/11/2020	20-191	Clearance received 2/01/2021
in the United States (CFIUS)

Federal Communications

Commission

Federal Energy Regulatory Commission (FERC)

Nuclear Regulatory Commission

Public Utility Commission of Texas (PUCT)

New Mexico Public Regulation Commission (NMPRC)

1/25/2021	PNM: 0009366813
TNMP: 0009366682
11/23/2020 EC21-25-000
12/2/2020	STN 50-528,50-529
and 50-530
11/23/2020	51547
11/23/2020	20-00222-UT

Approved 3/11/2021

Approved 4/20/2021

Expected May-June

Expected May-June: Docket on May 6 PUCT agenda, unanimous settlement filed March 30

Expected second half of 2021: Settlement discussions continue

3

Overview and Highlights

Q1 2021 Financial Results and Company Updates

Q1 results show signs of

recovery from COVID

impacts at PNM and TNMP

2021 guidance affirmed

PNM takes additional steps toward transition to clean energy

TNMP TCOS and DCOS filings recover critical infrastructure investments

Financial Results

Q1 2021	Q1 2020
GAAP EPSClean Energy$0.20	($0.19)
Ongoing EPS Focus$0.32	Strong	Financial
$0.18	Profile

2021 Ongoing EPS Guidance $2.27 - $2.37 affirmed

2021 Company Updates

• Settlements filed in PNM and TNMP merger applications
• PNM joined Western Energy Imbalance Market April 1
• Regulatory Updates:
• • PNM filed amended application to exit the Four Corners coal plant in 2024, included plans for seasonal operation beginning in 2023
  • PNM filed to abandon and replace 114 MWs of leased capacity at Palo Verde Nuclear Generating Station (previously announced) with solar and storage resources
  • TNMP Transmission Cost of Service increase approved and implemented March 12, 2021
  • TNMP annual Distribution Cost of Service increase filed

on April 5, 2021

Note: Q1 2021 EPS presented on diluted basis, Q1 2020 EPS presented using a non-diluted basis	5
due to the GAAP net loss; for a reconciliation of GAAP to Ongoing EPS, including a description of

adjustments, see earnings release issued April 30, 2021