Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Merger or Acquisition (September 2013)
15 slides from Northwestern Energy's merger presentation, Sep 27, 2013
Slide 1: Acquisition of PPL Montana's Baseload Hydro Assets
Acquisition of PPL Montana’s Baseload Hydro Assets September 27th 2013 Mystic Dam
Slide 2: Safe Harbor Statement
Safe Harbor 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 perfo
Slide 3: Presenters
Presenters 3 Robert C. Rowe President and Chief Executive Officer Brian B. Bird Vice President and Chief Financial Officer John D. Hines Vice President – Supply
Slide 4: Transaction Highlights
Transaction Highlights 633 megawatts of clean, sustainable, hydroelectric generating assets from PPL Montana. • Eleven baseload hydroelectric generating facilities representing 633 megawatts of capacity and one storage reservoir from PPL Montana • Consistent with our vision of providing safe and rel
Slide 5: Supporting our Core Values
Supporting our Core Values Our Vision Statement: Working together to deliver safe, reliable and innovative energy solutions that create value for our customers, communities, employees and investors. The acquisition of these highly valuable assets should allow NorthWestern to further our mission stat
Slide 6: Overview of PPL Montana Hydro Facilities
Overview of PPL Montana Hydro Facilities 6 NY0074ZU_1.wor . 0074 _1. r ..0074 _1. r . 0074 _1. r MONTANA Yellowstone River ll t i r Yellowstone River ll t i r ll t i r Ye lowstone River l t i r Ye lowstone River ll t i r Yellowstone ll t Yellowstone ll t ll t Ye lowstone l t Ye lowstone ll t River i
Slide 7: Pro Forma Generation Profile
127% 122% 120% 105% 102% 98% 97% 91% 84% 78% 77% 64% 60% 60% 53% 44% 0% 20 40% 60 80% 100 120% 140 WR GXP EE CNL UNS IDA EDE VVC ALE AVA UIL MGEE PNM BKH POR NWE 93% Peer Average Pro Forma Generation Profile 7 This transaction will allow us to approximately double owned resources in MT and significa
Slide 8: Meeting Customer Demand
Meeting Customer Demand 8 The addition of the hydro generation assets into our Montana electric portfolio aligns well with forecasted customer demand. We expect to be able to provide nearly all the power during the light load periods with some flexibility to use market purchases or other resources t
Slide 9: A Great Investment for the Future
A Great Investment for the Future 9 Note: Based upon rate base estimates as of year ended 2012 and does not consider future planned investment and South Dakota Peaker assets placed in service in 2013. Numbers may not add due to rounding Furthering our commitment to being a fully regulated utility. E
Slide 10: Financing Strategy
Financing Strategy 10 Conservative, low-risk financing strategy supports earnings and cash flow accretion. Low Risk Financing Strategy • Assets will become fully regulated by MPSC as part of NorthWestern rate base upon closing • Fully committed initial bridge from Credit Suisse and Bank of America M
Slide 11: Compelling Value Proposition
Compelling Value Proposition 11 Levelized cost less than all new build alternatives Implied multiples well within the range of recent comparable hydroelectric transactions Expected immediate earnings accretion in line with an asset acquisition of this size Earnings accretion supports our com
Slide 12: Questions and Answers
Questions and Answers 12 Ryan Dam
Slide 13: Comparable hydro transactions ($/kW)
$1,982 $1,422 $2,165 $2,868 $1,587 $1,682 $3,220 $2,400 $1,709 Hydro acquisition excluding Kerr Hydro acquisition including Kerr (1) ($ / kW) 13 Brookfield Renewable Energy Partners acquiring a 351 MW portfolio from NextEra Energy (12/21/12) Innergex Renewable Energy acquiring 28 MW (operating only)
Slide 14: Levelized Cost Less Than All New Build Alternatives
14 New build alternatives (30-year levelized cost of energy – 2013$) Source: New build levelized costs per Levelized Cost of New Generation Resources in the Annual Energy Outlook 2013 adjusted for Producer Price Index for electric generation. U.S. Energy Information Administration. EIA estimates ass
Slide 15: Delivering a bright future
Upelivering a bright future
NorthWestern — Merger or Acquisition (September 2013) on 6ix