Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Investor Presentation (April 2025)
49 slides from Northwestern Energy's investor presentation, Apr 10, 2025
Slide 1: Investor Update April 2025
1 Investor Update April 2025 8-K Date: April 10, 2025
Slide 2: Forward Looking Statements
NorthWestern Energy 2 Forward Looking Statements During the course of this presentation, there will be forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements often address our expected future
Slide 3: Overview
Thank youOverview 3
Slide 4: NWE – An Investment for the Long Term
NWE – An Investment for the Long Term 4 • Recent and ongoing rate reviews in all jurisdictions aid earnings, cash flow, and balance sheet strength • NOLs and tax credits expected to mitigate future cash tax obligations • History of consistent annual dividend growth • 100% pure electric and natural g
Slide 5: About NorthWestern
About NorthWestern 5 Montana Operations Electric 413,400 customers 25,390 miles – transmission & distribution lines 1,065 MW maximum capacity owned power generation Natural Gas 214,500 customers 7,354 miles of transmission and distribution pipeline 17.85 Bcf of gas storage capacity Own 28.2 Bcf of p
Slide 6: The NorthWestern Value Proposition
9%-11% Total Growth >11% Total Growth Incremental Opportunities: > 6% EPS Growth ~5% Dividend Yield Base Capital Plan: 4%-6% EPS Growth ✓ Data centers & new large- load opportunities ✓ FERC Regional Transmission ✓ Incremental generating capacity (subject to successful resource procurement bids) $2.7
Slide 7: A Diversified Electric and Gas Utility
A Diversified Electric and Gas Utility 7 NorthWestern’s ‘80/20’ rules: Approximately 80% Electric and 80% Montana. Nearly $5.4 billion of rate base investment to serve our customers. Data as reported in our 2024 10-K
Slide 8: Highly Carbon-Free Supply Portfolio
NWE SD Highly Carbon-Free Supply Portfolio Based upon 2024 MWh’s of owned and long-term contracted resources. Approximately 58% of our total company owned and contracted supply is carbon-free – better than the national average of ~41% in 2023. (eia.gov table 7.2b) Contracted energy from Colstrip Ene
Slide 9: Strong Utility Foundation
Strong Utility Foundation 9 • Solid JD Power Overall Customer Satisfaction Scores • Solid electric system reliability • Residential rates below national average1 • Better than average natural gas leaks per mile 1) NWE rates are average for 2024 - total residential revenues divided by total residenti
Slide 10: Solid Economic Indicators
Solid Economic Indicators 10 • Customer growth rates historically exceed National Averages. • Projected population growth in our service territories better than the National Average. • Unemployment rates better than National Average Source: Company 10K’s, 2022/2023 EEI Statistical Yearbook – Table 7
Slide 11: NorthWestern's Combo Advantage
• Investment in production*, transmission, & distribution • Extreme winters necessitate economical gas heating • Energy Choice (Ban the Ban) laws in MT, SD, & NE • Access to low & less volatile natural gas pricing • AECO & Henry Hub (Ventura) *Proven and producing reserves only (no exploration) Nort
Slide 12: Natural Gas LDC – AECO Advantage to Customers
Natural Gas LDC – AECO Advantage to Customers 12 Natural gas is one of the most affordable energy sources, and NWE has access to some of the lowest and most stable natural gas prices in the nation through the Alberta Energy Company (AECO) and Henry trading hubs. Source: S&P Global We recently partne
Slide 13: Corporate Sustainability
Corporate Sustainability 13 Environmental Social Governance These eight publications provide valuable insight into NorthWestern Energy’s Sustainability practices. The Sustainability Report includes Sustainability Accounting Standards Board (SASB) and Task Force on Climate-Related Financial Disclosur
Slide 14: Best Practices Governance
Best Practices Governance 14 America’s Most Responsible Companies Recognized by Newsweek as one of the most responsible companies in 2023. One of only eleven EEI member utilities selected. Board of Directors Executive Team 5th Best Score Among 50 Publicly Traded North American Utility and Power Comp
Slide 15: Financial & Regulatory Update
Thank youFinancial & Regulatory Update 15
Slide 16: Strong Growth Outlook
Strong Growth Outlook 16 ✓ 2025 EPS guidance expected to be provided following the outcome of our pending Montana rate review ✓ Affirming long-term growth rates from 2024 base1 • EPS growth of 4% to 6% • Rate base growth of 4% to 6% • Continued focus on closing the gap between earned & authorized re
Slide 17: Credit, Cash Flow, and Financing Plans
Credit, Cash Flow, and Financing Plans 17 Credit Ratings Stable Outlook at Moody’s, S&P and Fitch. No equity expected to fund the current $2.74 billion 5-year capital plan. Financing plans (targeting a FFO to Debt ratio > 14%) are expected to maintain our current credit ratings. We expect to pay min
Slide 18: Track Record of Growing Capital Investment
Track Record of Growing Capital Investment 18 * Historical Capital Investment includes property, plant, and equipment additions and AFUDC Credit, both from our cash flow statement, and change in capital expenditures included in accounts payable. ** See Regulated Utility Five-Year Capital Forecast sl
Slide 19: Solid Balance Sheet
Solid Balance Sheet 19 Investment grade credit ratings, liquidity significantly greater than our $100 million target, debt to capitalization within our targeted 50%-55% range, and a manageable schedule of debt maturities. * Liquidity target was raised to $200 million during the height of the Covid p
Slide 20: Disciplined Expense Program
20 Disciplined Expense Program Source: FERC Form 1 Reports - 2023 expenses and company filings through S&P Global IQ. Electric Non-Fuel O&M excludes fuel and steam costs for power generation, water costs for hydro operations, and purchased power cost unless identified in company disclosures. Electri
Slide 21: Rate Reviews
Thank youRate Reviews 21
Slide 22: Rate Review Summary
22 Rate Review Summary Key Dates of Montana procedural Schedule • 3/24/25: Final day to file settlements • 4/22/25: Hearing Commences • 5/23/25: Implementation of requested rates (subject to refund) SD Natural Gas Settlement unanimously approved for base rate increase of approximately $4.6 million a
Slide 23: Strategic Update
Thank youStrategic Update 23
Slide 24: Incremental Colstrip Capacity
24 Incremental Colstrip Capacity NorthWestern’s planned no cost acquisition of 592 MW of additional Colstrip capacity supports the integration of large-load customers, delivering substantial benefits to our customers, communities, and investors. 760 MW Existing Ownership Montana Average Load ✓ No co
Slide 25: Large-Load Data Center Opportunities
MT ✓ Montana ▪ Served by overall utility portfolio, which is expected to be long capacity beginning in 2026 ▪ Over 60% carbon free ▪ If data center demand interest develops beyond existing capacity, we will work with the Montana PSC to structure appropriate tariffs ✓ South Dakota ▪ Significant indic
Slide 26: Regional Transmission Opportunities
Regional Transmission Opportunities 26 Colstrip Transmission System North Plains Connector (NPC) Consortium Project • $3.6 billion, 415-mile, high-voltage direct-current transmission line connecting to Montana's Colstrip substation, bridging the eastern and western U.S. energy grids • Project awarde
Slide 27: Energy West / Cut Bank Natural Gas Acquisition
Energy West / Cut Bank Natural Gas Acquisition 27 Transaction Highlights Purchase Price Approvals and Timing • Two natural gas LDC’s in Montana: Energy West Montana (“EWM”) and Cut Bank Gas Co. (“CBGC”) from Hope Utilities • 33,000 customers in Great Falls area, West Yellowstone and Cut Bank communi
Slide 28: Colstrip Transaction Overview
Colstrip Transaction Overview 28 NorthWestern Energy entered into an agreement to acquire Puget Sound Energy’s ownership interests in Colstrip Units 3 and 4. This transaction is in addition to our previously disclosed agreement with Avista to acquire their ownership interest in Colstrip. Similar to
Slide 29: Colstrip Facility Ownership Overview
Colstrip Facility Ownership Overview 29 In January 2026, we will own 55% of Colstrip Units 3 &4. This allows us to guide investments in operation and maintenance in providing on- demand, 24/7 cost-effective generation for our Montana customers until a viable equivalent, carbon-free energy resource i
Slide 30: Montana Wildfire Mitigation Plan
Montana Wildfire Mitigation Plan 30 Reduction of Ignition Potential System and Environmental Monitoring Enhanced Vegetation Maintenance Enriched Public Communication and Outreach ✓ Comprehensive summary of robust wildfire mitigation activities ✓ Expect to update plan with each electric rate review f
Slide 31: Montana Public Safety Power Shutoff Plan
Montana Public Safety Power Shutoff Plan Guiding Principles: • Uphold our commitment to sustainable, affordable, and reliable service • Ensure the safety of our employees, customers, communities, the public, and the environment • Maintain a robust situational awareness strategy for monitoring and qu
Slide 32: Conclusion
Conclusion Pure Electric & Gas Utility Solid Utility Foundation Best Practices Corporate Governance Attractive Future Growth Prospects Strong Earnings & Cash Flows 32
Slide 33: Appendix
Thank youAppendix 33
Slide 34: Regulated Utility Five-Year Capital Forecast
11% increase in 5-year capital investment plan $2.74 billion of highly-executable and low-risk critical capital investment Regulated Utility Five-Year Capital Forecast (millions) 34 Appendix
Slide 35: Rate Base and Authorized Returns Notes
(1) The revenue requirement associated with the FERC regulated portion of Montana electric transmission and ancillary services are included as revenue credits to our MPSC jurisdictional customers. Therefore, we do not separately reflect FERC authorized rate base or authorized returns. (2) The Montan
Slide 36: 2024 System Statistics
2024 System Statistics 36 Note: Statistics above are as of 12/31/2024 (1) Nebraska is a natural gas only jurisdiction (2) Dave Gates Generating Station (DGGS) in Montana is a 150 MW nameplate facility but consider it a 105 MW (60 MW FERC & 45MW MPSC jurisdictions) peaker Appendix
Slide 37: Our Net-Zero Vision
Our Net-Zero Vision Over the past 100 years, NorthWestern Energy has maintained our commitment to provide customers with reliable and affordable electric and natural gas service while also being good stewards of the environment. We have responded to climate change, its implications and risks, by inc
Slide 38: Timeline of Montana Generation Portfolio
Timeline of Montana Generation Portfolio Since 2011, we have added approximately 1,129 MW, both owned and long-term contracted, to our generation portfolio, of which 954 MW (~84%) is from carbon-free resources. Appendix
Slide 39: Comparison of Installed Capacity
Comparison of Installed Capacity 39 California is dealing with significant capacity issues DESPITE having a greater amount of dispatchable generation and fewer renewables than NorthWestern Energy in Montana (as a percentage of the total). Source: EIA.gov – 2023 Form EIA-860 Data - Schedule 3 for cal
Slide 40: EPS & Dividend History
EPS & Dividend History 40 2010-2024 CAGR’s: GAAP EPS: 3.9% Non-GAAP EPS: 3.6% Dividend: 4.7% See appendix for “Non- GAAP Financial Measures” Appendix
Slide 41: Wildfire Risk Assessment
Wildfire Risk Assessment Distribution Transmission Based on 2022 data Note: % shown in quadrants are by line mile Appendix 41
Slide 42: Electric Wallet Share
Electric Wallet Share Appendix 42
Slide 43: Natural Gas Wallet Share
Natural Gas Wallet Share Appendix 43 Note: Montana typical bill is based on 65 therms which translates to ~0.50% lower wallet share than pictured. For consistency with South Dakota and Nebraska, 100 therms is used for Montana in this illustration. Oct. - Sept. Fiscal Year
Slide 44: Experienced and Engaged Board of Directors
Experienced and Engaged Board of Directors 44 Linda Sullivan Board Chair Dave Goodin Director Sherina Edwards Director Brian Bird Director, President & Chief Executive Officer Britt Ide Director Kent Larson Director Mahvash Yazdi Director Jeffrey Yingling Director Human Resources (Chair), Operations
Slide 45: Strong Executive Team
Strong Executive Team 45 Crystal Lail Chief Financial Officer Michael Cashell VP - Transmission Shannon Heim General Counsel & VP – Federal Government Affairs Brian Bird President & Chief Executive Officer Bleau LaFave VP – Asset Management & Business Development Jason Merkel VP - Distribution Bobbi
Slide 46: Our Commissioners
Our Commissioners 46 Appendix Montana – two new commissioners elected, one re-elected. Brad Molnar (R) elected as District 2 commissioner and MPSC President. Molnar previously served on the MPSC from 2004- 2012. Jeff Welborn (R) elected as District 3 commissioner. Welborn served in the MT legislatur
Slide 47: Non-GAAP Financial Measures
Non-GAAP Financial Measures 47 Appendix Pre-Tax Adjustments ($ Millions) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Reported GAAP Pre-Tax Income 181.2$ 156.5$ 176.1$ 178.3$ 182.2$ 144.2$ 190.2$ 182.4$ 201.6$ 214.7$ Non-GAAP Adjustments to Pre-Tax Income: Weather 13.2 15.2 (3.4) (1.3) (7.3) 9.
Slide 48: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes financial information prepared in accordance with GAAP, as well as other financial measures, such as Utility Margin, Adjusted Non-GAAP pretax income, Adjusted Non-GAAP net income and Adjusted Non-GAAP Diluted EPS that are considered “non-GAAP fi
Slide 49: Thank you
Thank youDelivering a bright future 49
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