Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — EEI Financial Conference 2025
57 slides from Northwestern Energy's conference presentation, Nov 10, 2025
Slide 1: EEI Financial Conference November 2025
EEI Financial Conference November 2025 8-K Date: November 10, 2025 Madison Dam | Ennis, Montana ** TABLE COPY ** TABLE COPY ** TABLE COPY ** TABLE COPY ** TABLE COPY ** TABLE COPY **
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 Information in this communication, other than statements of historical facts, may constitute forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These
Slide 3: NorthWestern Energy Group corporate information
NorthWestern Energy Group, Inc. dba: NorthWestern Energy Ticker: NWE (Nasdaq) www.northwesternenergy.com Corporate Support Office 3010 West 69th Street Sioux Falls, SD 57108 (605) 978-2900 Director - Corporate Development & Investor Relations Officer Travis Meyer 605-978-2967 travis.meyer@northweste
Slide 4: Recent Highlights
Recent Highlights ✓ Year-to-Date September GAAP diluted EPS of $2.22 vs. $2.34 prior ✓ Non-GAAP diluted EPS of $2.41 vs. $2.27 prior1 ✓ Affirming 2025 earnings guidance range of $3.53 - $3.652 ✓ Integrated Energy West natural gas assets, customers, and employees ✓ Announced Agreement with Black Hill
Slide 5: Overview
Thank youOverview 5
Slide 6: NWE – An Investment for the Long Term
NWE – An Investment for the Long Term 6 • 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 7: About NorthWestern
About NorthWestern 7 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 8: The NorthWestern Value Proposition
8% to 11% Total Return >11% Total Return Incremental Opportunities: > 6% EPS Growth Approximately 4% to 5% Dividend Yield Base Capital Plan: 4% to 6% EPS Growth ✓ Data centers & new large- load opportunities ✓ FERC Regional Transmission ✓ Incremental generating capacity (subject to successful resour
Slide 9: A Diversified Electric and Gas Utility
A Diversified Electric and Gas Utility 9 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 10: 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 11: Strong Utility Foundation
Strong Utility Foundation 11 • 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 resid
Slide 12: Solid Economic Indicators
Solid Economic Indicators 12 • Customer growth rates historically exceed National Averages. • Projected population growth in our service territories better than National Average. • Unemployment rates better than National Average. Source: Company 10-K’s, 2022/2023 EEI Statistical Yearbook – Table 7.2
Slide 13: 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 14: Natural Gas LDC – AECO Advantage to Customers
Natural Gas LDC – AECO Advantage to Customers 14 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 15: Best Practices Governance
Best Practices Governance 15 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 16: Merger, Financial, and Regulatory Update
Thank youMerger, Financial, and Regulatory Update 16
Slide 17: Merger with Black Hills Update
Merger with Black Hills Update 17 ✓ In October, filed joint applications for transaction approval with regulatory commissions in Montana, Nebraska, and South Dakota ✓ Expect to file a joint application with FERC during Q4 2025
Slide 18: Merger with Black Hills Benefits Stakeholders
18 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 19: Credit, Cash Flow, and Financing Plans
Credit, Cash Flow, and Financing Plans 19 FFO: Cash from Operations less Working Capital Adjustments. Debt: Long- & Short-term Debt (including unamortized debt issuance costs and pension liability). S&P upgraded outlook to Positive1, Moody’s and Fitch remain Stable. No equity expected to fund the cu
Slide 20: Montana Electric Rate Review
20 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 21: 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 submitted • 8/26/25: NWE response submitted • Final order expected dur
Slide 22: Affirming 2025 Non-GAAP EPS Guidance
22 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 23: 2025 Earnings Bridge
23 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; • Excludes
Slide 24: Track Record of Growing Capital Investment
Track Record of Growing Capital Investment 24 * 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 25: Solid Balance Sheet
Solid Balance Sheet 25 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 26: Disciplined Expense Program
26 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 27: Other Updates
Thank youOther Updates 27
Slide 28: 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 ▪ We anticipate making a filing with the MPSC to propose a large-load tariff in the fourth quarter of 2025 ✓ South Dakota ▪ Sig
Slide 29: Data Center Process (Montana & South Dakota)
29 Data Center Process (Montana & South Dakota) Data Center Request • Load & Location • Supply Potential • Customer/Developer Required Timing Queue Count: 7 High-Level Assessment • Viability Assessment • Southwest Power Pool Screening • High Level Cost Estimate Queue Count: 7 Energy Service Agreemen
Slide 30: Colstrip Transaction Overview
Colstrip Transaction Overview 30 Announcement: Effective Date: Capacity: Acquisition Price: Status Update: Puget July 2024 December 31, 2025 370 MW (185 MW each of units 3 & 4) $0.0 Anticipate signing contract in Q4 2025 to sell electricity through late 2027. Revenue from the contract is expected to
Slide 31: Colstrip Facility Ownership Overview
Colstrip Facility Ownership Overview 31 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 32: Montana Wildfire Bill
32 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 33: Transmission Bill
33 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 34: Regional Transmission Opportunities
34 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 35: Montana Wildfire Mitigation Plan
Montana Wildfire Mitigation Plan 35 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 36: 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 36 PSPS Guiding Principles: • Uphold our commitment to sustainable, affordable, and reliable
Slide 37: Conclusion
Conclusion 37 Pure Electric & Gas Utility Solid Utility Foundation Best Practices Corporate Governance Attractive Future Growth Prospects Strong Earnings & Cash Flows The pending merger with Black Hills Corporation will combine the strengths of both companies, resulting in an organization with great
Slide 38: Appendix
Thank youAppendix 38
Slide 39: Corporate Sustainability
Corporate Sustainability 39 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 40: 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 41: 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) 41 Appendix
Slide 42: Rate base and authorized returns by jurisdiction
(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 43: 2024 System Statistics
2024 System Statistics 43 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 we consider it a 105 MW (60 MW FERC & 45MW MPSC jurisdictions) peaker Appendix
Slide 44: 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 44
Slide 45: Comparison of Installed Capacity
Comparison of Installed Capacity 45 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 – 2024 Form EIA-860 - Schedule 3.1 for calend
Slide 46: EPS & Dividend History
EPS & Dividend History 46 2010-2024 CAGR’s: GAAP EPS: 3.9% Non-GAAP EPS: 3.6% Dividend: 4.7% See “Non-GAAP Financial Measures” slide in appendix. Appendix
Slide 47: 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 47 3
Slide 48: Electric Wallet Share
Electric Wallet Share Appendix 48
Slide 49: Natural Gas Wallet Share
Natural Gas Wallet Share Appendix 49 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 50: Experienced and Engaged Board of Directors
Experienced and Engaged Board of Directors 50 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 51: Strong Executive Team
Strong Executive Team 51 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 52: Our Commissioners
Our Commissioners 52 Appendix
Slide 53: Year-to-Date 2025 Non-GAAP Earnings
We estimate weather to be a $3.8 million pre-tax detriment as compared to normal and a $1.5 million detriment as compared to the nine months ending third quarter 2024. (1) As a result of the adoption of Accounting Standard Update 2017-07 in March 2018, pension and other employee benefit expense is n
Slide 54: Non-GAAP Financial Measures
Non-GAAP Financial Measures 54 Appendix Pre-Tax Adjustments ($ 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 55: 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 56: Additional Merger Related Disclosures
Additional Merger Related Disclosures 56 Appendix No Offer or Solicitation This document is for informational purposes only and is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval
Slide 57: Thank you
Thank youDelivering a bright future 57
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