Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Investor Presentation (June 2006)
23 slides from Northwestern Energy's investor presentation, Jun 23, 2006
Slide 1: BBI Investor Presentation
BBI Investor Presentation June 2006
Slide 2: Agenda
Agenda 1. Overview of NorthWestern Energy 2. Operations Transmission Distribution Supply 3. Regulatory Environment 4. Financial Summary 5. Growth Opportunities 6. Summary 7. Appendix 1 – Detailed Financials 2
Slide 3: Business Overview
Business Overview Regulated Operations Unregulated Operations NorthWestern Energy Electric - Primarily consists of a lease of One of the largest providers of electricity and natural gas 30% of Colstrip Unit 4, a 740 MW coal-fired in the Upper Midwest and Northwest, serving plant in Montana approxima
Slide 4: NorthWestern Energy Today
NorthWestern Energy Today Utility Service Territory 628,500 customers NWEC electric: 375,000 NWEC gas: 253,500 Approximately 123,000 square miles (319,800 sq. km) of service territory in South Dakota, Montana and Nebraska Allowed Returns: Electric transmission lines Natural gas distribution lines Su
Slide 5: Electric Transmission
Electric Transmission Approx. 123,000 square miles (319,800 sq. km) service territory Electric transmission operations Montana 6,940 circuit miles (11,105 km) of high voltage transmission 53 substations South Dakota 1,293 circuit miles (2,070 km) of high voltage transmission 41 substations Operates
Slide 6: Natural Gas Transmission and Storage
Natural Gas Transmission and Storage Storage: Cobb and Dry Creek – 16.2 Bcf of working gas System Connections: TransCanada (NOVA) Havre Pipeline Colorado Interstate Gas (CIG) Williston Basin Interstate Gas (WBI) Energy West Encana (gathering system) System configured to allow bidirectional transport
Slide 7: Electric and Natural Gas Distribution Operations Overview
Electric and Natural Gas Distribution Operations Overview Kalispell District Havre District Great Falls Division Missoula Division Helena Division Butte Division Bozeman Division Billings Division Aberdeen Huron Electric System Mitchell Brookings 22,500 miles (36,210 km) of distribution lines Yankto
Slide 8: Electric Customer Profile
Electric Customer Profile 2005A Volume (MWh)(1) 2005A Revenue ($MM)(1) (2) Total MWh = 9,598,360 Rate Schedule Revenue(2) = $574.2 MM The 10 largest customers in the regulated electric segment are based in MT and represent about 6% of total rate schedule revenues. The largest customer represents les
Slide 9: Gas Customer Profile
Gas Customer Profile 2005A Volume (MMbtu)(1) 2005A Revenue ($MM)(1) (2) Total MMbtu = 29,107,170 Rate Schedule Revenue(2) = $323.6 MM The 10 largest customers in the regulated gas segment are mainly concentrated in Montana and represent less than 5% of total rate schedule revenues. The largest custo
Slide 10: Regulatory Environment
DEPENDABLE. RELIABLE. RESPONSIVE.
Slide 11: Regulatory Jurisdictions
Regulatory Jurisdictions Federal Energy Regulatory Commission Montana Public Service Commission (FERC) (MPSC) Electric and Natural Gas Distribution Transmission Default Supply Wholesale Generation South Dakota Public Utility Nebraska Public Service Commission Commission (SDPUC) (NPSC) Electric and N
Slide 12: Regulated Return Detail
Regulated Return Detail ($ in millions) Montana South Dakota Nebraska Electric Gas Electric Gas Gas Total Rate Base $692.6 $258.3 $165.7 $42.8 $26.5 $1,185.9 Return on Rate Base Authorized Return on Rate Base 8.46% 8.82% 10.61% 8.53% 8.32% 8.84% 2005 Earned Return on Rate Base 6.76% 7.49% 12.38% 0.8
Slide 13: Financial Highlights
DEPENDABLE. RELIABLE. RESPONSIVE.
Slide 14: Customer & Volume Statistics
Customer & Volume Statistics Electric Customers (000) Electric Volume in MWh (000) CAGR CAGR ’02 to ’05 = 1.6% ’02 to ’05 = 3.7% Electric customer and volume growth has been strong over the last 3 yrs Natural Gas Customers (000) Gas Volume in Therms Sales (MM MMBtu) CAGR CAGR ’02 to ’05 = 1.6% ’02 t
Slide 15: Financial Highlights
Financial Highlights EBITDA(1) Interest Expense ($ in millions) ($ in millions) Cash Flow from Operations(4) Capital Expenditures(2) ($ in millions) ($ in millions) Source: Company reports and SEC filings. Note: Full year 2004 results show combined results for NWEC’s predecessor company from January
Slide 16: Strengthened Balance Sheet
Strengthened Balance Sheet Selected Balance Sheet Data Debt Ratings ($ in millions) 12/31/2004 12/31/2005 3/31/2006 S&P Moody's Fitch Cash 17.1 2.7 12.0 Outlook Negative Positive Stable Restricted Cash 21.4 25.2 26.2 Sr. Secured BBB- Ba1 BBB Receivables 141.4 160.9 134.9 Inventories 37.1 40.9 31.7 S
Slide 17: Growth Opportunities
DEPENDABLE. RELIABLE. RESPONSIVE.
Slide 18: Transmission Investment
Transmission Investment Take advantage of our strategic location Pursue opportunities to expand electric and gas transmission infrastructure to meet increased needs Transmission paths out of Montana are all constrained for entities seeking firm transmission rights Path Ratings: MT-SE 600 MW MT-E 200
Slide 19: Northwestern Energy Summary
Northwestern Energy Summary Attractive Premier regional T&D utility with stable customer growth Transmission & Attractive mix of electric and natural gas customers Distribution Strong competitive position that results from low production and purchased-power costs Business Diversified customer base t
Slide 20: Appendix A Detailed Financials
Appendix A Detailed Financials
Slide 21: 2005 Segment Financials
2005 Segment Financials Source: Company reports. (1) Includes unregulated gas and electric operations. 21
Slide 22: P&L Summary – 2005
P&L Summary – 2005 (000's) Year Ended December 31 2005 2004 * B(W) Operating Revenues 1,165,750 1,038,989 126,761 Cost of Sales 641,755 563,829 (77,926) Gross Margin 523,995 475,160 48,835 Operating Expenses Operating, general & administrative 225,514 221,740 (3,774) Property and other taxes 72,087
Slide 23: Cash Flow Summary
Cash Flow Summary ($ in millions) 2005A 2004A Net Income from Continuing Operations $61.5 $542.4 Deferred Taxes 40.7 (3.9) COD Income and Other Noncash Items 74.3 (450.3) Working Capital (26.0) 48.9 Cash Flow from Operations $150.5 $137.1 Restricted Cash (3.9) 9.3 Capital Expenditures (80.9) (80.1)