NorthWestern Energy Group, Inc. · NASDAQ:NWE
NorthWestern Energy — Shareholder Meeting (April 2013)
24 slides from NorthWestern Energy's shareholder meeting presentation, Apr 25, 2013
Slide 1: NorthWestern Corporation Annual Meeting of Stockholders
1 NorthWestern Corporation Annual Meeting of Stockholders April 25, 2013
Slide 2: Forward Looking Statement
2 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: About NorthWestern
3 ABOUT NORTHWESTERN Our Vision: Enriching lives through a safe, sustainable energy future Our Mission: Working together to deliver safe, reliable and innovative energy solutions Our Values: S - safety E - excellence R - respect V - value I - integrity C - community E - environment
Slide 4: NWE: An Investment for the Long Term
4 NWE: AN INVESTMENT FOR THE LONG TERM We’re a fully regulated and financially solid utility; with – Diversity across states, service type and customer segments – A 100 year history of competitive customer rates, system reliability and customer satisfaction – 5 years of significant earnings and divi
Slide 5: 2012 System Statistics
5 2012 SYSTEM STATISTICS (2) (1) •MT electric supply increased 40 MW in 2012 due to the addition of Spion Kop wind. •MT NG reserves includes 13.4 Bcf Bear Paw acquisition in 2012. Note: Statistics above are as of 12/31/2012 (1) Includes 60 MW Aberdeen Peaker to be placed in service during 2013 (2) N
Slide 6: One Hundred Years Later
6 ONE HUNDRED YEARS LATER. . . . After One Hundred Years, Electricity is still a great value
Slide 7: A Strong & Well Rounded Board & Executive Team
7 A STRONG & WELL ROUNDED BOARD & EXECUTIVE TEAM
Slide 8: NWE Corporate Responsibility
8 NWE CORPORATE RESPONSIBILITY
Slide 9: A Diversified Electric and Gas Utility
9 A DIVERSIFIED ELECTRIC AND GAS UTILITY The “80/20” rules of NorthWestern Gross Margin in 2012: Electric: $528M Natural Gas: $146M Gross Margin in 2012 Other $ 1M Montana: $570M South Dakota: $ 95M Nebraska: $ 10M Average Customers in 2012: Residential: 557k Above data reflects full year 2012 resul
Slide 10: 2013 Earnings Guidance
10 2013 EARNINGS GUIDANCE 2013 Diluted GAAP EPS Range of $2.40-2.55 1 Midpoint 2013 guidance range of $2.40-$2.55 based upon, but not limited to, the following major assumptions and expectations: • A consolidated income tax rate of approximately 12%; • Colstrip Unit 4, Big Stone, and Coyote generati
Slide 11: 5 Year Track Record of Delivering Results
11 5 YEAR TRACK RECORD OF DELIVERING RESULTS Return on Equity steadily improved each year from 2008 – 2012 and Dividend per Share increased each of the last 5 years. 1 1 2 5 Year (2008-12) Average Return on Equity : 9.8% 5 Year (2008-12) CAGR Dividend: 2.9% Current Dividend Yield Approximately 4.0%
Slide 12: Strong Cash Flows
12 STRONG CASH FLOWS While maintenance capex and dividend payments have continued to grow over the past 5 years (6.5% and 2.1% CAGR respectively), Cash Flow from Operations has continued to outpace maintenance capex and provided approximately $40-60 million of positive Free Cash Flow per year. We an
Slide 13: Balance Sheet Strength and Liquidity
13 BALANCE SHEET STRENGTH AND LIQUIDITY
Slide 14: Hard Assets Providing Real Value
HARD ASSETS PROVIDING REAL VALUE 14 (Left) We believe continued investment in our system to provide safe, reliable, environmentally responsible and cost- effective service for our customers will produce additional value for our shareholders. (Below) NWE Total Shareholder Return has outperformed our
Slide 15: Investing in Infrastructure to Serve Our Customers
15 INVESTING IN INFRASTRUCTURE TO SERVE OUR CUSTOMERS Over the past 5 years we have begun to rebuild our Montana energy supply portfolio and invested to enhance system safety, reliability and capacity. We have made these enhancements while delivering solid earnings growth to our investors with minim
Slide 16: 2012 Montana Natural Gas Rate Filing
16 2012 MONTANA NATURAL GAS RATE FILING We are dedicated to operating a safe and reliable natural gas system that requires ongoing infrastructure investment. -Feb . 8: The Montana Consumer Counsel recommended a $4.1 million increase based upon a 9.0% ROE (45% equity) and other adjustments. -Apr. 15:
Slide 17: Investment Opportunity Outlook
17 INVESTMENT OPPORTUNITY OUTLOOK Energy Supply – Big Stone/Neal pollution control – South Dakota natural gas peaking generation – Montana Spion Kop Wind facility - completed – Other vertical integration opportunities in Montana including gas reserves or base load electric generation Transmissio
Slide 18: Investment Project Summary
18 INVESTMENT PROJECT SUMMARY COMPLETED IN 2012 Note: Color / label indicate NorthWestern Energy's current probability of execution and timing of expenditures. Several opportunities exist to further increase and diversify earnings as compared to our approximately $1.8 billion of rate base today. Add
Slide 19: Natural Gas Needs and Supply
19 NATURAL GAS NEEDS AND SUPPLY Top Left: Approximately 14% of our total natural gas needs go toward electric generation and the remaining 86% is sold to our retail customers Top: We own approximately 11% of our total retail needs in Montana Left: As we continue to add to our natural gas reserves to
Slide 20: Montana Electric Generation Opportunity
20 MONTANA ELECTRIC GENERATION OPPORTUNITY The total load served over our Montana system is approximately 11 million MWh. The load we currently have responsibility for providing supply is approximately 6 million MWh. Our owned generation in Montana, including the addition of Spion Kop in 2013, would
Slide 21: Distribution Investment Outlook
DISTRIBUTION INVESTMENT OUTLOOK 21 Distribution System Integrity Program (DSIP) The Project addresses the emerging issue of our aging infrastructure and prepares our natural gas and electric distribution systems for the next generation of technology. For the electric distribution system, the Program
Slide 22: Capital Spending
CAPITAL SPENDING 22 Capital spending projections do not include potential future electric or natural gas energy supply additions or capital related to our Gas Transmission Infrastructure Plan (GTIP*). Source: 2012 10-K. Energy Supply estimates updated to reflect reduction in Big Stone AQCS budget in
Slide 23: Conclusion
CONCLUSION 23 Fully- Best Financially Strong cash Attractive Realistic regulated practices sound flows dividend investment utility corporate opportunities governance to invest Free Cash Flow
Slide 24: NorthWestern Corporation Annual Meeting of Stockholders
24 NorthWestern Corporation Annual Meeting of Stockholders April 25, 2013