Why Invest

NYSE:EE 67.27 +0.02 +0.03% Volume: 71,070 Learn more November 12, 2019

EE Overview

A vertically integrated regulated utility providing service to customers in a 10,000 square mile area of the Rio Grande valley in west Texas and southern New Mexico

Demand is increasing and the number of customers has grown over the past ten years at a rate that far exceeds the national average

Planning significant capital investments in generation resources over the next five years

Increased the annual cash dividend paid every year since 2011

A coal free utility with no coal fired owned generation and a low carbon footprint

EE-Listed
NYSE

Customer growth

Capital expenditures growth

Dividend growth

Go green

Residential Customer Growth

  • Refrigerated air conditioning is being installed in 99% of new homes
  • Majority of customers within our service territory utilize evaporative coolers
  • Refrigerated air conditioning uses 85% less water and three times more electricity than evaporative coolers
  • Usage per customer impacted by increased energy efficiency and conservation initiatives
customer growth
10 Year CAGR (2006-2016) - Avg. No. Residential Customers
EE Industry*
Usage per Customer 1.24% -0.34%
Customer Growth 1.62% 0.86%

* Source EEI-2017 Statistical Yearbook for the years 2006-2016

Five Year Cash Capital Expenditures

  • Growth in peak demand has required the Company to construct generating resources and transmission and distribution infrastructure to be able to meet our customer’s demands and to maintain grid reliability.
  • Over the next five years we currently anticipate spending approximately $1.3 billion in capital expenditures to meet this growing demand.
capital expenditures growth

(1) Includes the construction of a 226 MW natural gas combustion turbine generating unit at the Company's Newman Power Station with an anticipated operational date of 2023 at an expected cost of $143 million.

(2) Excludes PPAs for 200 MW of utility scale solar resources and 100 MW of battery storage.

(3) In the 2017 Texas rate case, EE established baseline revenue requirements for transmission and distribution investment costs. The first filings for recovery of T&D investments occurred on January 25, 2019 for the TCRF and is anticipated to occur in late March for the DCRF.

(4)Estimates reflect approximately $85 million of initial project costs of AMI, including deployment of the back-office systems and meters. Legislative proposals regarding the clarification of the regulatory process to implement AMI are anticipated during the Texas legislative session that convened in January 2019. With legislative clarification, EE woudl then have the opportunity to request regulatory approval for the deployment of AMI. Estimates are subject to change based on legislative and regulatory approvals.

Increasing Cash Returns

  • In Q2 2011, EE re-initiated a quarterly cash dividend of $0.22 per share, which has increased by 75% to $0.385 per share since 2011
  • The timing and amount of future dividend increases will be based on the Board’s continual review of our return of capital policies in the context of our operating performance, financial condition, capital needs and other relevant factors in the Board’s determination
  • EE’s goal is to achieve an annual 55% - 65% dividend payout ratio by 2020
dividend growth

Low Carbon Footprint

  • Our coal-free generating portfolio minimizes exposure to Federal and State proposals to reduce carbon dioxide emissions
  • Became a coal-free utility on July 6, 2016, which has reduced one billion pounds of carbon dioxide from our annual emissions
  • Costs associated with future retrofits required for coal generation by environmental regulation will be avoided
  • Holloman Air Force Base Solar Facility (5MW) became operational in Q4 2018
  • Anticipate seeking approval for:
    • New Mexico Community Solar Facility (2 MW)
    • Expansion of the Texas Community Solar Program

EE vs. U.S. Avg. Carbon Footprint

(Short tons CO2 equivalent emissions/MWH)
footprint
2016 EE
0.28
go green
2016 National Average
0.51