PNM Resources : Q1 2022 Presentation and Appendix

Contact Information and Safe Harbor Statement

Investor Relations Contact Information

Lisa Goodman Director, Investor Relations and Shareholder Services [e-mail]

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

Statements made in this presentation 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 and apply only as of the date of this report. 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 remaining required governmental and regulatory approvals of the pending Merger that could reduce anticipated benefits or cause the parties to abandon the transaction, (ii) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (iii) the risk that the parties may not be able to satisfy the conditions to the proposed Merger in a timely manner or at all, and (iv) the risk that the proposed transaction 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 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 athttp://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.

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Overview and Highlights

Financial Results and Company Updates

Financial Results and Guidance

$0.20Strong Financial

Profile

• • 2022 Ongoing EPS Guidance affirmed $2.50 - $2.60

• • 2023 Ongoing EPS Guidance affirmed $2.60 - $2.75

Company Updates

Merger Updates

• • PNM Merger Appeal Brief-in-Chief filed April 7, 2022

Regulatory Updates

• • TNMP Transmission Cost of Service increase approved and implemented March 25, 2022

• • TNMP annual Distribution Cost of Service increase filed April 5, 2022

• • PNM Decoupling Declaratory Order issued April 27, 2022

• • PNM Four Corners Abandonment and Securitization Appeal Brief-in-Chief filed March 24, 2022

Note: EPS is presented on diluted basis. For a reconciliation of GAAP to Ongoing EPS, including a description of adjustments, see earnings release issued April 28, 2022.

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Executing the Transition to Clean Energy

Measured, Multifaceted Approach to PNM's Clean Energy TransitionEnvironmental BenefitsCustomer

Cost ReductionsCommunity Support

Next Steps:

Accelerated Exit from Coal:

 Completed

Prefund portion of community support

• • Replacement power (PPAs) implementation

• • Fund remaining community support

• • Issue securitization bonds

• • Adjust customer base rates through general rate review

• • Approval for abandonment/ securitization (New Mexico Supreme Court Appeal)

• • Replacement power filing, approval and implementation

• • Issue securitization bonds, fund community support

• • Adjust customer base rates through general rate review

New Mexico Energy Transition Act: landmark energy legislation

• • Enacted in 2019

• • Increases Renewable Portfolio Standards up to 80% by 2040

• • Encourages early exit of coal through recovery of undepreciated investment

• • Lower-cost financing through securitization

• • Supports customers and communities impacted by transition out of coal

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