Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Barclays 39th Annual Energy-Power Conference 2025
53 slides from Northwestern Energy's conference presentation, Sep 3, 2025
Slide 1: Barclays 39th Annual Energy-Power Conference September 2025
Barclays 39th Annual Energy-Power Conference September 2025 8-K Date: September 3, 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 Return >11% Total Return 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 ~42% in 2024. (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 an average for 2024 - total residential revenues divided by total reside
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 10-K’s, 2022/2023 EEI Statistical Yearbook – Table
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 have facilitate
Slide 13: Best Practices Governance
Best Practices Governance 13 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 14: Financial & Regulatory Update
Thank youFinancial & Regulatory Update 14
Slide 15: Credit, Cash Flow, and Financing Plans
Credit, Cash Flow, and Financing Plans 15 S&P upgraded outlook to Positive1, Moody’s and Fitch remain Stable. 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
Slide 16: Montana Electric Rate Review
16 Montana Electric Rate Review MPSC approval of the partial Joint Party Settlement, along with NorthWestern’s proposals for YCGS and PCCAM, would allow for recovery of increased operating costs and an opportunity to earn a fair return on the investment that funds the critical energy infrastructure
Slide 17: Montana Natural Gas Rate Review
Key Dates • 6/9/25 - 6/18/25: MPSC Public Hearings • 7/2/25: Interim rates remain in place as implemented Dec. 1, 2024 ($17.4 million subject to refund) • 7/21/25: NWE opening brief submitted • 8/11/25: Intervenor response briefs due • 8/26/25: NWE response submitted MPSC approval of the Joint Party
Slide 18: Affirming 2025 Non-GAAP EPS Guidance
18 Affirming 2025 Non-GAAP EPS Guidance1 of $3.53 - $3.65 per diluted share ✓ Affirming long-term growth rates from 2024 base2 • EPS growth of 4% to 6% • Rate base growth of 4% to 6% • Continued focus on closing the gap between earned & authorized returns ✓ No equity expected to fund the current 5-y
Slide 19: 2025 Earnings Bridge
19 2025 Earnings Bridge This guidance range is based upon, but not limited to, the following major assumptions: • Final approval of all material aspects of NorthWestern's settlement position in the currently pending Montana general rate review; • Normal weather in our service territories; • An effec
Slide 20: Track Record of Growing Capital Investment
Track Record of Growing Capital Investment 20 * 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”
Slide 21: Solid Balance Sheet
Solid Balance Sheet 21 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 22: Disciplined Expense Program
22 Disciplined Expense Program Per Customer… Per Employee… Per Rate Base… NorthWestern ranks favorably among our regional peers for electric expense efficiency. Source: FERC Form 1 Reports - 2024 expenses through S&P Capital IQ Pro, company 10-Ks, and company investor presentations. Non-Fuel O&M and
Slide 23: Large Load Customers
✓ Montana ▪ Expected to be served by overall utility portfolio, which is projected to be long capacity beginning in 2026 ▪ Current generating portfolio over 60% carbon free ▪ If data center demand interest develops beyond existing capacity, we will work with the Montana Public Service Commission to
Slide 24: NWE - BKH Merger & Other Updates
Thank youNWE - BKH Merger & Other Updates 24
Slide 25: Merger with Black Hills Benefits Stakeholders
25 Merger with Black Hills Benefits Stakeholders Strategic combination represents a highly attractive value creation opportunity for both companies. Increases Scale Position and Growth Increases the combined company target EPS growth rate to 5-7%, supported by the doubling of each company’s rate bas
Slide 26: Montana Wildfire Bill
26 Montana Wildfire Bill No Strict Liability: • Confirms strict liability cannot be applied to utility operations related to wildfire Legal Protections for Providers: • Negligence standard based on Montana specific circumstances • Rebuttable presumption utility acted reasonably if it substantially f
Slide 27: Transmission Bill
27 Transmission Bill Allows Certificate of Public Convenience & Necessity (CPCN) for electric transmission to be issued by the Montana Public Service Commission (MPSC) • Greater confidence of fair and equitable return Bill allows greater confidence for investors providing the critical capital necess
Slide 28: Data Center Process (Montana & South Dakota)
28 Data Center Process (Montana & South Dakota) Data Center Request • Load & Location • Supply Potential • Customer/Developer Required Timing High-Level Assessment • Viability Assessment • SPP Screening • High Level $ Estimate • Development Costs Letter of Intent (LOI) • Supply Development Estimates
Slide 29: Regional Transmission Opportunities
29 Regional Transmission Opportunities 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 30: Colstrip Transaction Overview
Colstrip Transaction Overview 30 NorthWestern Energy entered into agreements to acquire Avista and Puget Sound Energy’s ownership interests in Colstrip Units 3 and 4. The acquisitions are subject to customary conditions and approvals, including approval from the FERC. NorthWestern will have the righ
Slide 31: Incremental Colstrip Capacity
31 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. ✓ No cost acquisition of incremental Colstrip ownershi
Slide 32: Colstrip Facility Ownership Overview
Colstrip Facility Ownership Overview 32 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
Slide 33: Montana Wildfire Mitigation Plan
Montana Wildfire Mitigation Plan 33 Reduction of Ignition Potential System and Environmental Monitoring Enhanced Vegetation Maintenance Enriched Public Communication and Outreach ✓ Comprehensive summary of robust wildfire mitigation activities ✓ New plan to be filed every three years (last filed in
Slide 34: Montana Public Safety Power Shutoff Plan
Montana Public Safety Power Shutoff Plan Communication to Stakeholders at each Situation Weather / Environment + System Performance +Customer / Community Impact = Determines PSPS Event PSPS Decision Process 34 PSPS Guiding Principles: • Uphold our commitment to sustainable, affordable, and reliable
Slide 35: Conclusion
Conclusion Pure Electric & Gas Utility Solid Utility Foundation Best Practices Corporate Governance Attractive Future Growth Prospects Strong Earnings & Cash Flows 35
Slide 36: Appendix
Thank youAppendix 36
Slide 37: Corporate Sustainability
Corporate Sustainability 37 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 38: Regulated Utility Five-Year Capital Forecast
$2.74 billion of highly-executable and low-risk critical capital investment Regulated Utility Five-Year Capital Forecast (millions) 38 Appendix
Slide 39: Rate case and rate base summary
(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 40: 2024 System Statistics
2024 System Statistics 40 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 41: 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 42: 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 42
Slide 43: Comparison of Installed Capacity
Comparison of Installed Capacity 43 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 44: EPS & Dividend History
EPS & Dividend History 44 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 45: Wildfire Risk Assessment
• Hardening as needed • Normal assessments • Lower environmental monitoring • All hardening strategies • Maximum assessments • Highest environmental monitoring Wildfire Risk Assessment Distribution Transmission Based on 2024 data. *Percentages shown in quadrants are by system segments. Appendix 45 3
Slide 46: Electric Wallet Share
Electric Wallet Share Appendix 46
Slide 47: Natural Gas Wallet Share
Natural Gas Wallet Share Appendix 47 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 48: Experienced and Engaged Board of Directors
Experienced and Engaged Board of Directors 48 Linda Sullivan Board Chair Dave Goodin Director Sherina Maye Edwards Director Brian Bird Director, President & Chief Executive Officer Britt Ide Director Kent Larson Director Mahvash Yazdi Director Jeffrey Yingling Director Human Resources (Chair), Opera
Slide 49: Strong Executive Team
Strong Executive Team 49 Crystal Lail VP & 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
Slide 50: Our Commissioners
Our Commissioners 50 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 51: Non-GAAP Financial Measures
Non-GAAP Financial Measures 51 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 52: 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 53: Thank you
Thank youDelivering a bright future 53
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