Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Investor Presentation (June 2012)
17 slides from Northwestern Energy's investor presentation, Jun 12, 2012
Slide 1: Utility Shareholders of SD Regional Meeting, Aberdeen, SD
Utility Shareholders of SD – Regional Meeting – Aberdeen, SD Best Western- Ramkota Hotel June 12, 2012
Slide 2: Forward looking statements
2 Forward looking statements 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 financia
Slide 3: Outline
3 Who we are Financial update Investment opportunity outlook Outline
Slide 4: Who we are
4 Who we are Our Vision: Enriching lives through a safe, sustainable energy future Our Mission: Working together to deliver safe, reliable and innovative energy solutions Our Values: Safety Excellence Respect Value Integrity Community Environment
Slide 5: Geographically positioned for success
5 Geographically positioned for success Our service territory covers some of the best wind regimes in the nation We have the opportunity to provide transmission services into two different markets (West and Midwest) Great wind profile Low unemployment rates A fully-regulated utility located in
Slide 6: We are a fully-regulated utility
6 We are a fully-regulated utility Note: Statistics above are as of 12/31/2011 (1) Nebraska is a natural gas only jurisdiction (1) Energy Supply Transmission Distribution Electric (MW) MT SD Total 2011 Tx for Others MT SD Total Demand MT SD / NE Total Base load coal 222 210 432 Electric (GWh) 9,100
Slide 7: With competitive customer rates
7 With competitive customer rates Electric source: Edison Electric Institute Typical Bills and Average Rates Report, January 1, 2011. Monthly "bundled" costs for supply & delivery Natural gas source: www.eia.doe.gov. - US Natural Gas Sector Report for average cost of gas sold as of January 1, 2011.
Slide 8: One hundred years later…. After a hundred years, electricity is still a great value
8 One hundred years later…. After a hundred years, electricity is still a great value
Slide 9: Outline
9 Who we are Financial update Investment opportunity outlook Outline
Slide 10: A strong credit profile
10 A strong credit profile (1) Total capitalization as of 12/31/11, excluding Basin Creek capital lease / PPA. (2) Excludes outstanding 12/31/11 commercial paper balance of $166.9 million. Significant improvement in our credit profile over the past several years resulting in a low to mid single A de
Slide 11: A history of earnings and dividend growth
11 A history of earnings and dividend growth A history of steady earnings and dividend growth. Targeted dividend payout ratio 60 – 70% and currently a dividend yield of 4-5% 2005 - 2012E* Compounded Annual Growth Rate (CAGR) DIVIDEND 5.8% EPS (Diluted) 5.1%
Slide 12: Solid pension funding
12 Solid pension funding 12 As a result of significant pension contributions and solid market returns in prior years, we were better positioned than nearly all of our peers at December 31, 2011. NorthWestern Energy’s Pension Assumptions Target allocation 50% equity and 50% fixed income Expected
Slide 13: Outline
13 Who we are Financial update Investment opportunity outlook Outline
Slide 14: Growing investment in our existing system
14 Growing investment in our existing system Over the last seven years we have invested approximately $770 million in maintenance & DSIP capital, or $172 million in excess of depreciation.
Slide 15: Investment project summary
15 Investment project summary Several opportunities exist to further increase and diversify earnings as compared to our approximately $1.8 billion of rate base today. Additional opportunities for transmission in South Dakota and baseload generation in Montana are currently being evaluated and may be
Slide 16: Conclusion
16 Conclusion Fully- regulated utility Financially sound Strong cash flows Attractive dividend Realistic investment opportunities to invest Free Cash Flow
Slide 17: Questions?
17 Questions? Thank you from all of us at NorthWestern Energy.