Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — AGA Financial Forum (May 2005)
21 slides from Northwestern Energy's conference presentation, May 3, 2005
Slide 1: NorthWestern Energy - AGA Financial Forum
NorthWestern Energy AGA Financial Forum Michael J. Hanson President Brian B. Bird Chief Financial Officer New Orleans, La. May 2, 2005
Slide 2: Michael J. Hanson, President
Michael J. Hanson President North Western
Slide 3: 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 4: 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 Ne
Slide 5: Company Overview
Company Overview + NorthWestern Corporation, headquartered in Sioux Falls, S.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 6: Service Territory
Service Territory LEGEND © Electric Only ‘A Gas Only Gas and Electric — eect Transmision Lines — Gu hpatnes conga Bc Generating Pat eaves . ((ineernal combustion) NorthWes tern
Slide 7: First Quarter 2005 Highlights
First Quarter 2005 Highlights Consolidated Operations (millions) First First Quarter Quarter 2005 2004 Increase Gross Margin $144.7 $132.7 9.0% Income from Continuing Operations 18.4 124 52.5% Net Income 18.9 17.0 11.4% +» Nearly $94 million provided by cash flow from operations in first quarter of
Slide 8: 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 s
Slide 9: Brian B. Bird, Chief Financial Officer
Brian B. Bird Chief Financial Officer
Slide 10: 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 reorganization items * Gross margin was $475.2 million compared to $476.8 million in 2003 * Nearly $175 millio
Slide 11: 2004 Electric and Natural Gas Operations
2004 Electric and Natural Gas Operations 2004 Revenues 2004 Gross Margin (millions) (millions) $137 $61.8 a8 $89 C ; $572 10s. (oo 28% $312 Regulated Electric Regulated Gas Unregulated Electric Unregulated Natural Gas acmn Ne orthWeste om
Slide 12: 2004 P&L Summary
2004 P&L Summary UNAUDITED ‘Successor Reorganization ‘and Impacts Predecessor and Other Combined Significant 2004 (in tons) Dec. 31, 2008 toms. as Adjusted OPERATING REVENUES $s 10390 § = $ 1,038.0 COST OF SALES 563.8 (10.0) 553.8 GROSS MARGIN 4752 10.0 4852 OPERATING EXPENSES ‘Operating, general an
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: First Quarter 2005 Financial Overview
First Quarter 2005 — Financial Overview Consolidated Operations (millions) Q1 2005 Q1 2004 + Gross Margin $144.7 $132.7 $4.9 million due to higher market prices Increase = Increase due to a gain on amendment to a Montana Qualifying Facility of approximately = Unregulated electric segment (Colstrip 4
Slide 15: First Quarter 2005 P&L Summary
First Quarter 2005 — P&L Summary ‘Successor Predecessor Company Company ‘Three Months Ended March 31, (000's) 2005 2004 Operating Revenues $ 335,093 $305,627 Cost of Sales 190,381 472,918 Operating Expenses Operating, general and administrative 56,805 Property and other taxes 17,903 Depreciation 18,
Slide 16: Electric and Natural Gas Operations
nd Natural Gas Operations Q1 2005 Revenues (millions) Q1 2005 Gross Margin (millions) $25 rt $180 $154.4 Regulated Electric Regulated Gas Unregulated Electric Unregulated Natural Gas NorthWé
Slide 17: First Quarter 2005 Segment Information
First Quarter 2005 — Segment Information Three Months Ended March 31, 2005 (thousands) Regulated Unregulated Electric NaturalGas ~ Electric NaturalGas _ Other Total Gross Margin $ 84296 $ 40,190 $ 18,066 $ 2576 $ (416) 144,712 Operating Income $27,333 «$16,581 «$ (7,519 $ 1,606 $ (5,240) 47,798 mwit
Slide 18: First Quarter 2005 Balance Sheet
First Quarter 2005 — Balance Sheet ‘Successor Company (000's) Mar. 31, Dec. 37, 2005 2004 ASSETS Cash S$ 77,314 $ 17,058 Other Current Assets 294,518 330,620 Property, Plant and Equipment, Net 1,378,468 4,379,060 Goodwill 435,076 435,076 Regulatory Assets 218,964 224,192 Other Noncurrent Assets 29,4
Slide 19: First Quarter 2005 Cash Flow
First Quarter 2005 — Cash Flow Successor Predecessor Company Company Three Months Ended March 31, (000's) 2005 2004 Net Income $ 18,918 $ 16,981 Depreciation 18,690 18,176 (Gain) Loss on QF Contract Restructuring (4,888) * Deferred Income Taxes. 13,387 (916) (Income) Loss on Disco. Ops., Net (524) (
Slide 20: Rating Agency Update
Rating Agency Update s d f Unsecured Rating Outlook Rating Outlook Fitch BB+ Positive NIA N/A Moody’s Bai Stable Ba2 Stable S&P BB Positive BB- Positive Steps necessary for investment grade rating 1. Financial performance track record 2. Asset sales proceeds received 3. Progress on outstanding litig
Slide 21: Searchable text section of graphics
Searchable text section of graphics shown above [ GRA PHIC] [LOGO] AGA Financial Forum Michael J. Hanson President Brian B. Bird Chief Financial Officer New Orleans, La. May 2, 2005 Mic hael J. Hanson President [LOGO] For ward-Looking Statement During the course of this presentation today, we will b