PNM resources expects low power prices will reduce 2002 earnings

ALBUQUERQUE, N.M., April 5, 2002 — Thinner profit margins in the wholesale power market are likely to adversely impact 2002 earnings for PNM Resources.

In reaction to the news, PNM Resources’ stock price fell $2.61 or 8.8 percent to $26.99 , CBS MarketWatch reported.

“Although first quarter earnings are expected to meet Wall Street’s expectations, the continuing depressed price levels in the power market make it more difficult to achieve our previous earnings forecast of $3.00 per share in 2002,” PNM Resources Chairman, President and Chief Executive Officer Jeff Sterba said today.

“Our previous earnings guidance was premised on, first, normal weather conditions in the region; second, an economic upturn in the Western US; and third, the re-emergence of liquidity in the wholesale market,” Sterba continued.

“Although we have seen some improvement in all these factors, the indications for the rest of the year are not as positive as we anticipated they would be by this point. As a result, although our electric and gas utility operations have been performing better than expected so far this year, our wholesale marketing group has not been meeting the targets originally set.”

The company is now in the process of revising its market forecast and reviewing its business operations for the remainder of 2002. Based on that analysis, management will provide updated earnings guidance when first quarter earnings are announced April 23.

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 U.S. PNM Resources stock is traded primarily on the NYSE under the symbol PNM. For more information about our company, see our web site at www.pnm.com.


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