Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Shareholder Meeting (April 2009)
21 slides from Northwestern Energy's shareholder meeting presentation, Apr 22, 2009
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders Butte, MT April 22, 2009
Slide 2: Forward-looking statement
forward-looking statement… 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 business and financial
Slide 3: Who we are
Located in relatively stable economies with potential grid expansion in the Northwest. who we are… (1) As of 12/31/08 (2) Book capitalization calculated as total debt, excluding capital leases, plus shareholders’ equity. 656,000 customers 392,000 electric 264,000 natural gas Approximately 123,000 sq
Slide 4: Solid operations with growth prospects
Solid operations with growth prospects. NorthWestern’s attributes… Increasing earnings Colstrip Unit 4 into rates effective Jan. 1, 2009 Expected to add $9 million or $.25/share in earnings over 2008 Rate case to be filed in Montana on electric and gas distribution business in 3Q ‘09 Strong cash flo
Slide 5: Earnings profile is improving
Earnings profile is improving. earnings of company since ’05… 2009 P GAAP earnings per share 1.73 $ 1.06 $ 1.45 $ 1.77 $ $1.85 - $2.00 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 2009 P CAGR = 5.98%
Slide 6: 2009 income guidance
Expect increase of 5% to 13% over 2008 earnings of $1.77/share. 2009 income guidance… Drivers CU4 increase expected to be approximately $9 million or $.25/share Pension expense expected to be flat for 2009 compared to Retail electric volumes expected to approximate 2008 Wholesale electric volumes in
Slide 7: Strong balance sheet
Plan to maintain a 50%-55% debt to total capitalization ratio. strong balance sheet… Audited (Dollars in 000's) December 31 Cash 11,292 12,773 Restricted Cash 14,727 14,482 Accounts Receivable, Net 155,672 143,482 Inventories 70,741 63,586 Other Current Assets 60,985 44,031 Goodwill 355,128 355,128
Slide 8: Liquidity highlights
Nearly all of the long-term debt matures after 2014 liquidity highlights… Total liquidity currently in the $275 million range Recently issued $250 million in First Mortgage Bonds 10 year maturity 6.34% interest rate Refinanced our Colstrip loan maturing in December 2009 Fund utility capital expendit
Slide 9: Credit ratings
Fitch upgraded in January 2009 and Moody’s upgraded in March 2009. Debt to total capital ratio is 53%. Plan to maintain a 50%-55% debt to total capitalization ratio. credit ratings… Fitch S&P Moody’s Senior Secured Rating BBB+ A- (MT) Baa1 BBB+ (SD) Senior Unsecured BBB BBB Baa2 Outlook Stable Stabl
Slide 10: Growth project potential
Possibility to double and diversify earnings as compared with our existing $1.5 billion rate base as of 1/1/09. growth project potential… (in millions) Timing Mill Creek Generation Station $ to $ 10.0 $ to 10.0 $ Jan 2011 Colstrip 500 kV transmission upgrade ** $ to $ 2.5 $ to 3.0 $ Jan 2012 South D
Slide 11: Generation growth highlights
In service date for Mill Creek Generation Station = Jan 1, 2011 generation growth highlights… 120-150 MW plant near Anaconda, MT To be built for regulation services to balance supply and load for NWE’s Balancing Area Rate-based cost of service investment Estimated to cost approximately $200 million
Slide 12: Mill Creek timeline
The Mill Creek Generation Station has been filed for pre-approval, with the MPSC w/decision expected in 2Q ’09. Mill Creek timeline…
Slide 13: Our proposed transmission projects
our proposed transmission projects…
Slide 14: Generation plans shifting to wind
New generation in Montana is mostly wind and will need to reach customers out of state. generation plans shifting to wind…
Slide 15: Supply – Montana wind potential
Very strong wind regime in Montana. supply – Montana wind potential…
Slide 16: Demand – renewable standards
The current renewable percentage of NorthWestern’s electric supply in Montana is a little more than 8%. demand – renewable standards…
Slide 17: Our transmission developments
In service date of January 1, 2012. our transmission developments… Line already exists – represents an upgrade Upgrades substation capacity Increases load capacity of existing line by 500-600 MW’s NorthWestern announced joint development agreement with others Portland General Puget Sound Energy Paci
Slide 18: Transmission project developments
In service date sometime in 2014. transmission project developments… 230 kV “Collector System” Our project with no partners Informational meeting with customers in Spring 2009 Open Season early ‘09 to determine configuration Provides gathering system for new generation to access MSTI and network sys
Slide 19: Transmission project developments, cont'd
Estimated to be on line early 2014. transmission project developments, cont’d… Total project cost estimated from $800 million to $1 billion Considering strategic partners Plan to be operational in 2014 FERC filing in January ’09 Information meeting with FERC in March ‘09 Open Season anticipated in s
Slide 20: Cap ex spending – next few years
Non-discretionary capex is funded 100% by free cash flow. Company doesn’t anticipate needing equity until major capital required for MSTI. We will move forward with the funding of these projects only as they make economic sense. MSTI project is now slated for early 2014 and capex has been modified a
Slide 21: Summary
Current value with growth opportunities. summary… Value Dividend yield in excess of 6.0% Currently trading at approximately book value Improved regulatory relationships Opportunity for growth January 1, 2009 rate basing of our 222 MW interest in CU4 Montana T&D rate case to be filed in 2009 Expectin