Lease Commitments (Tables)

9 Months Ended

Sep. 30, 2026

Schedule of Assets and Liabilities, Lessee

Information related to the Company’s operating leases recorded on the Condensed Consolidated Balance Sheets is presented below:


	September 30, 2026						December 31, 2025
	PNM		TNMP		TXNM		PNM		TNMP		TXNM
	(In thousands)
Operating leases:
Operating lease assets, net of amortization	$	45,355	$	312	$	46,123	$	107,986	$	39	$	108,517
Current portion of operating lease liabilities	7,203		76		7,324		8,913		15		8,969
Long-term portion of operating lease liabilities	33,903		239		34,572		96,246		24		96,735

Information related to the Company’s financing leases recorded on the Condensed Consolidated Balance Sheets is presented below:


	September 30, 2026						December 31, 2025
	PNM		TNMP		TXNM		PNM		TNMP		TXNM
	(In thousands)
Financing leases:
Non-utility property	$	30,712	$	40,012	$	72,240	$	30,555	$	33,344	$	65,366
Accumulated depreciation	(14,850)		(16,134)		(31,788)		(13,079)		(14,319)		(27,928)
Non-utility property, net	15,862		23,878		40,452		17,476		19,025		37,438

Other current liabilities	$	5,718	$	7,893	$	13,988	$	5,764	$	6,604	$	12,743
Other deferred credits	10,177		16,024		26,562		11,740		12,456		24,786

Information concerning the weighted average remaining lease terms and the weighted average discount rates used to determine the Company’s lease liabilities is presented below:


	September 30, 2026						December 31, 2025
	PNM		TNMP		TXNM		PNM		TNMP		TXNM
Weighted average remaining lease term (years):
Operating leases	10.98		4.01		10.89		15.64		2.63		15.60
Financing leases	3.46		3.62		3.53		3.75		3.48		3.59

Weighted average discount rate:
Operating leases	5.17	%	4.30	%	5.17	%	5.55	%	5.39	%	5.55	%
Financing leases	5.42	%	5.53	%	5.48	%	5.33	%	5.43	%	5.37	%

Schedule of Components of Lease Expense

Information for the components of lease expense is as follows:


	Three Months Ended September 30, 2026						Nine Months Ended September 30, 2026
	PNM		TNMP		TXNM		PNM		TNMP		TXNM
	(In thousands)
Operating lease cost:
Energy storage leases	$	156	$	—	$	156	$	1,406	$	—	$	1,406
Other operating leases	2,139		23		2,181		5,891		69		6,016
Amounts capitalized	—		—		—		—		—		—
Total operating lease expense	2,295		23		2,337		7,297		69		7,422
Financing lease cost:
Amortization of right-of-use assets	1,567		2,086		3,749		4,616		6,185		11,094
Interest on lease liabilities	216		322		549		676		948		1,657
Amounts capitalized	(1,195)		(2,025)		(3,220)		(3,607)		(5,898)		(9,505)
Total financing lease expense	588		383		1,078		1,685		1,235		3,246

Variable lease expense	19,942		—		19,942		55,128		—		55,128
Short-term lease expense	220		10		234		585		26		634
Total lease expense for the period	$	23,045	$	416	$	23,591	$	64,695	$	1,330	$	66,430


	Three Months Ended September 30, 2025						Nine Months Ended September 30, 2025
	PNM		TNMP		TXNM		PNM		TNMP		TXNM
	(In thousands)
Operating lease cost:
Energy storage leases	$	5,493	$	—	$	5,493	$	15,660	$	—	$	15,660
Other operating leases	1,863		105		1,987		5,589		390		6,035
Amounts capitalized	(11)		(81)		(92)		(33)		(317)		(350)
Total operating lease expense	7,345		24		7,388		21,216		73		21,345
Financing lease cost:
Amortization of right-of-use assets	1,255		1,612		2,956		3,686		4,455		8,409
Interest on lease liabilities	189		220		421		553		577		1,171
Amounts capitalized	(941)		(1,527)		(2,468)		(2,719)		(4,177)		(6,897)
Total financing lease expense	503		305		909		1,520		855		2,683

Variable lease expense	6,555		—		6,555		19,690		—		19,690
Short-term lease expense	173		4		182		542		16		605
Total lease expense for the period	$	14,576	$	333	$	15,034	$	42,968	$	944	$	44,323

Schedule of Leases, Supplemental Cash Flows

Supplemental cash flow information related to the Company’s leases is as follows:


	Nine Months Ended						Nine Months Ended
	September 30, 2026						September 30, 2025
	PNM		TNMP		TXNM		PNM		TNMP		TXNM
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,719	$	66	$	8,837	$	22,633	$	43	$	22,725
Operating cash flows from financing leases	214		185		432		196		141		379
Finance cash flows from financing leases	1,470		1,046		2,808		1,319		722		2,296

Non-cash information related to right-of-use assets obtained in exchange for lease obligations:
Operating leases additions	$	—	$	331	$	331	$	57,920	$	9	$	57,930
Operating leases retirements	(57,228)		—		(57,228)		(367)		(26)		(393)
Financing leases	3,133		11,145		14,347		5,562		10,521		16,345

Schedule of Future Expected Lease Payments, Operating Lease

Future expected lease payments are shown below:


	As of September 30, 2026
	PNM						TNMP				TXNM
			Operating										Operating
	Financing		Energy Storage		Other		Financing		Operating		Financing		Energy Storage		Other
	(In thousands)
Remainder of 2026	$	1,778	$	446	$	73	$	2,420	$	22	$	4,304	$	446	$	112
2027	5,945		1,783		7,049		8,375		87		14,718		1,783		7,206
2028	4,424		1,783		7,052		6,689		83		11,327		1,783		7,208
2029	2,890		1,783		7,039		5,185		74		8,135		1,783		7,188
2030	1,313		1,783		164		2,434		76		3,751		1,783		317
Later years	1,039		22,603		3,497		1,163		—		2,202		22,603		3,770
Total minimum lease payments	17,389		30,181		24,874		26,266		342		44,437		30,181		25,801
Less: Imputed interest	1,494		11,259		2,690		2,349		27		3,887		11,259		2,827
Lease liabilities	$	15,895	$	18,922	$	22,184	$	23,917	$	315	$	40,550	$	18,922	$	22,974

Schedule of Future Expected Lease Payments, Finance Lease

Future expected lease payments are shown below:


	As of September 30, 2026
	PNM						TNMP				TXNM
			Operating										Operating
	Financing		Energy Storage		Other		Financing		Operating		Financing		Energy Storage		Other
	(In thousands)
Remainder of 2026	$	1,778	$	446	$	73	$	2,420	$	22	$	4,304	$	446	$	112
2027	5,945		1,783		7,049		8,375		87		14,718		1,783		7,206
2028	4,424		1,783		7,052		6,689		83		11,327		1,783		7,208
2029	2,890		1,783		7,039		5,185		74		8,135		1,783		7,188
2030	1,313		1,783		164		2,434		76		3,751		1,783		317
Later years	1,039		22,603		3,497		1,163		—		2,202		22,603		3,770
Total minimum lease payments	17,389		30,181		24,874		26,266		342		44,437		30,181		25,801
Less: Imputed interest	1,494		11,259		2,690		2,349		27		3,887		11,259		2,827
Lease liabilities	$	15,895	$	18,922	$	22,184	$	23,917	$	315	$	40,550	$	18,922	$	22,974