Why Invest

NYSE:EE 55.03 -0.94 -1.68% Volume: 206,537 Learn more December 14, 2018

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
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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) Pending a final decision and regulatory approvals for the all-source Request for Proposal for resources; therefore, estimates are subject to change including the acceleration and/or postponement of projects. As a placeholder, the current estimate includes early construction costs for a 320 MW generating resource, to be placed in service in 2023. Projection also includes approximately $13 million of large scale solar (5 MW for Holloman Air Force Base and 2 MW for New Mexico Community).

(2) Estimates do not reflect any costs associated with Advanced Metering Infrastructure.

(3) In the 2017 Texas rate case, EE established baseline revenue requirements for transmission and distribution investment costs and agreed that the first filing for recovery of these costs through the Transmission Cost Recovery Factor and Distribution Cost Recovery Factor will be on or after January 1, 2019.

Increasing Cash Returns

  • In Q2 2011, EE re-initiated a quarterly cash dividend of $0.22 per share, which has increased by 64% to $0.36 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
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2016 National Average
0.51