Ongoing Earnings Guidance and Other Financial Guidance Measures

TXNM Energy ("the Company") uses ongoing earnings guidance to provide investors with management's expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. 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; therefore, management is generally not able to provide a corresponding GAAP equivalent for ongoing earnings guidance.

In addition the Company may use additional financial guidance measures, such as ongoing EBITDA guidance or cash earnings guidance, to provide investors with management’s expectations of additional indicators of ongoing financial performance over the period presented. Since forecasted EBITDA and cash earnings are derived from forecasted ongoing earnings, management is generally not able to provide a corresponding GAAP equivalent to these measures.