PNM Resources : Q2 2022 Presentation and Appendix

Q2 2022 Earnings Review

August 4, 2022

Contact Information and Safe Harbor Statement

Investor Relations Contact Information

Lisa Goodman Executive Director, Investor Relations and Shareholder Services

1-505-241-2160 [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 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.

Overview and Highlights

Financial Highlights and Strategic Updates

Q2 2022 earnings results

2022 and 2023 earnings

guidance affirmed

Leadership advancements

Merger appeal briefing

process concludes

NMPRC Nominating

Committee established

Financial Results and Guidance

Clean	Q2 2022	Q2 2021	YTD 2022 YTD 2021
		Strong Financial
GAAP EPS		$0.18	$0.62
	$0.36	$0.83
	Focus
Ongoing EPS	$0.57	$0.55	$1.08	$0.88
				Profile

• 2022 Ongoing EPS Guidance affirmed $2.50 - $2.60
• 2023 Ongoing EPS Guidance affirmed $2.60 - $2.75

Strategic Updates

PNM Resources Officer Advancements

• Don Tarry, PNM Resources President and Chief Operating Officer
• Lisa Eden, PNM Resources Senior Vice President, Chief Financial Officer and Treasurer

Merger Appeal Process

• Briefing schedule to be completed August 5, 2022
• Oral argument requested, no statutory timeframe

NMPRC Commission Appointment

• Nominating Committee in place July 1, 2022

• Appointments expected in Q4 2022

Note: EPS is presented on diluted basis. For a reconciliation of GAAP to Ongoing EPS, including a	4
description of adjustments, refer to the earnings release issued August 4, 2022.

Q2 2022 ESG Highlights

CO2 Retirement of

San Juan Unit 1

• PNM retired Unit 1 of the San Juan Generating Station on June 30, 2022
• PNM Generation portfolio capacity is nearly 50% carbon-free, coal generation has been reduced to less than 20% of total capacity
• San Juan Unit 4 scheduled to retire September 30, 2022, reducing coal generation to less than 10% of PNM's total capacity

PNM Joins EPRI

Climate READi™

Initiative

• Climate READi™: Power (REsilience and ADaptation initiative)
• Three-yearinitiative led by the Electric Power Research Institute (EPRI) to develop a comprehensive and consistent approach to physical climate risk
• The Framework will facilitate analysis and application of appropriate climate data among all stakeholders to enhance the planning, design and operation of a resilient power system

Power of

Partnerships

• PNM partnering with UNM to expand internship programs by creating a state-wide coalition of businesses, furthering state education and economic development efforts
• PNM, CNM, Mescalero Apache Telecom Inc. (MATI), The National Guard, U.S. Air Force, and the U.S. Army teamed up for Cyber- Innovative Readiness Training to defend critical infrastructure

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