Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Midwest Seminar hosted by Berenson & Company and The Williams Capital Group (April 2005)
16 slides from Northwestern Energy's conference presentation, Apr 13, 2005
Slide 1: NorthWestern Energy Midwest Seminar
NorthWestern Energy Midwest Seminar Hosted by: Berenson & Company and The Williams Capital Group April 12, 2005
Slide 2: Forward-Looking Statement
Forward-Looking Statement During the course of this presentation today, we will be discussing certain subjects including those pertaining to our strategy, and our discussions may contain forward-looking information. Although our expectations and beliefs are based on reasonable assumptions, actual re
Slide 3: Introduction
introduction « Following emergence, NorthWestern is a much stronger company « Significantly reduced debt, strong balance sheet, solid cash flow « Focused on our transmission and distribution utility operations «Better positioned to serve our customers «Able to grow with the communities we serve Nort
Slide 4: Company Overview
Company Overview + NorthWestern Corporation, headquartered in Sioux Falls, $.D., is an investor-owned utility and one of the largest providers of electricity and natural gas in the northwest quadrant of the United States + We serve approximately 617,100 customers — 368,200 electric and 248,900 natur
Slide 5: Service Territory
Service Territory LEGEND © Electric Only ‘A Gas Only Gas and Electric — Electric Transmission Lines — casPipatne (omg ‘ed ard upper owned) Eecrc Generating Pant Ds eect Gonerating Plant font cata
Slide 6: Electric and Natural Gas Operations
Electric and Natural Gas Operati Revenues Gross Margin (millions) (millions) sae S17 sets 1 Regulated Electric = Regulated Gas Unregulated Electric |= Unregulated Natural Gas NorthWeste ql
Slide 7: Montana and South Dakota
Montana South Dakota Peak (systemwide) 1,500 MW 275 MW Ave. Daily Load (systemwide) 1,100 MW 135 MW South Dakota Company-owned regulated generation 100% Unregulated Colstrip Unit 4 PPL Qualifying Facilities (QF) Market Purchases Other Small Contracts NorthWester n
Slide 8: Montana Regulated Electric Portfolio
Montana Regulated Electric Portfolio Resource Mix (6 million MWh) Colstrip Unit 4 12% Yearly Resource Cost ($249 million) Other 3% PPL 22M) 47% isit7e OF 11% (26m) Colstrip Unit 4 17% samy 84% of the forecasted energy requirement is under contract through 6/30/07 NorthWest n
Slide 9: Value Drivers
Value Drivers * T&D business focus = Solid and reliable operations = Complete default supply portfolio procurement = Continue to improve regulatory environment = Efficiency improvement and cost control : Asset sales - Attain investment grade rating «Resolve outstanding bankruptcy claims «Develop str
Slide 10: NorthWestern's Value Creation Strategy – Grow the Business
NorthWestern’s Value Creation Strategy — Grow the Business + NorthWestern is looking to take advantage of its strategically located position + Opportunities may exist to expand electric and gas transmission infrastructure to meet increased needs + Evaluate strategic opportunities in northwestern U.S
Slide 11: 2004 Financial Overview
2004 Financial Overview * 2004 results utilize fresh-start reporting = Consolidated net income was $544.4 million in 2004 vs. loss of $128.7 million in 2003 = Earnings improvement primarily result of reorganization items «Gross margins were $475.2 million, compared to $476.8 million in 2003 * Nearly
Slide 12: P&L Summary
P&L Summary uNau oITED Guoseszor Reorganisation ond Impacts Predecessor and Other Combined Significant, 208 (mmion) Des. 31, 2004 heme as Adjusted OPERATING REVENUES $ 1080 ¢ $ 1¢380 COST OF SALES 38 10.1) ___ 538 GROSS MARGIN 752 700 52 OPERATING EXPENSES Cperaing, general and administrative air Pr
Slide 13: 2005 Outlook
2005 Outlook «Projecting earnings from continuing operations of $1.30 to $1.45 per share (basic) = Absent any unusual weather and unforeseen reorganization issues « Bridge from 2004 to 2005 = Significant reduction in interest expense = Reduced G&A expense = Modest increase in margins due to organic
Slide 14: Transmission Investment / Capital Expenditures
+ Transmission Investment + Territory Expansion + Energy-telated Businesses $30-§35 million Asset sales = $65-$70 million * Optimize operations + Improve regulatory environment * Train and retan employees + Maintenance Cap Ex + Service Terrkory Growth $75-$80 million $70-$75 million NorthWestern
Slide 15: Rating Agency Update
Rating Agency Update Rating Outlook Outlook Fitch BB+ Positive Positive* Moody’s Bat Stable Stable SaP BB Positive Positive “Implied by structural subordination Steps necessary for investment grade rating 4. Financial performance track record 2. Asset sales proceeds received 3. Progress on outstandi
Slide 16: Searchable text section of graphics
Searchable text section of graphics shown above [ G RAPHIC] [LOGO] Midwest Seminar Hosted by: Berenson & Company and The Williams Capital Group April 12, 2005 F orward-Looking Statement During the course of this presentation today, we will be discussing certain subjects including those pertaining to