Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Sidoti & Company 16th Annual Investor Forum (March 2012)
31 slides from Northwestern Energy's conference presentation, Mar 19, 2012
Slide 1: Sidoti & Company 16th Annual Investor Forum: Financial Update
Sidoti & Company - 16 th Annual Investor Forum New York, NY March 20, 2012 Financial Update
Slide 2: Outline
Who we are Financial update Investment opportunity outlook Appendix - Financial statements - Regulatory update Outline
Slide 3: Forward looking statements
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 financial
Slide 4: Who we are
Who we are ð Our Vision: Enriching lives through a safe, sustainable energy future ð Our Mission: Working together to deliver safe, reliable and innovative energy solutions ð Our Values: S afety E xcellence R espect V alue I ntegrity C ommunity E nvironment
Slide 5: Geographically positioned for success
Geographically positioned for success ð Our service territory covers some of the best wind regimes in the nation ð We have the opportunity to provide transmission services into two different markets (West and Midwest) Great wind profile Low unemployment rates ð A fully-regulated utility located in s
Slide 6: Service territory statistics
Note: Statistics above are as of 12/31/2011 (1) Nebraska is a natural gas only jurisdiction
Slide 7: The 80/20 rules of NorthWestern
The “80 / 20” rules of NorthWestern. We are approximately 80% electric / 20% natural gas A multi-state electric & natural gas utility Note: Data above reflects full year 2011 results .
Slide 8: A diverse distribution customer base
A diverse distribution customer base
Slide 9: Typical Customer bills
Typical Customer bills With competitive customer rates
Slide 10: Outline
Who we are Financial update Investment opportunity outlook Appendix - Financial statements - Regulatory update Outline
Slide 11: Cash from operations and dividend growth
8.1% Cash From Operations 6.5% Dividend Growth Compounded Annual Growth Rate (CAGR)
Slide 12: Solid pension funding
Solid pension funding NorthWestern Energy’s Pension Assumptions ð Target allocation 50% equity and 50% fixed income ð Expected long-term rate of return of 7.00% ð Discount rate of 4.40 - 4.55% Six remaining identified peers had not yet filed year-end 2011 financial information as of 02/27/12 and are
Slide 13: Credit ratings
A security rating is not a recommendation to buy, sell or hold securities. Such rating may be subject to revision or withdrawal at any time by the credit rating agency and each rating should be evaluated independently of any other rating.
Slide 14: A history of earnings and dividend growth
A history of earnings and dividend growth
Slide 15: Reaffirming 2012 earning guidance
Reaffirming 2012 earning guidance Reaffirming 2012 guidance range of $2.35-$2.50 based upon, but not limited to, the following major assumptions and expectations: • A consolidated income tax rate of approximately 18% - 20% of pre-tax income; • No significant scheduled, or unscheduled, maintenance at
Slide 16: Investment opportunity outlook
Investment opportunity outlook ð Energy Supply – Big Stone/Neal pollution control – South Dakota natural gas peaking generation – Montana Spion Kop Wind facility – South Dakota Titan Wind facility buyout – Other vertical integration opportunities in Montana including gas reserves or base load genera
Slide 17: Montana base load opportunity
Montana base load opportunity Our post PPL supply opportunity is approximately 200 GWh / month or about 280 MWs of capacity
Slide 18: Hard assets providing value
Hard assets providing value 2005-07 valuation affected by pending and ultimately terminated acquisition
Slide 19: Growing investment in our existing system
Growing investment in our existing system
Slide 20: Great investment growth opportunities
Great investment growth opportunities
Slide 21: 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 Montana base load opportunities are currently being evaluated and may be incorporated at the appropriate time. Investment project summary Note: Color /
Slide 22: Another way to slice the pie
Another way to slice the pie (at midpoint of range)
Slide 23: Conclusion
Conclusion Realistic investment opportunities to invest Free Cash Flow Fully- regulated utility Financially Strong cash Attractive sound
Slide 24: Outline
Who we are Financial update Investment opportunity outlook Appendix - Financial statements - Regulatory update Outline
Slide 25: Consolidated statement of income
Consolidated statement of income
Slide 26: Consolidated statement of cash flows
Consolidated statement of cash flows
Slide 27: Balance sheet and capitalization
(thousands) December 31, December 31, 2011 2010 cash 5928 6234 Restricted cash 2,716 12,862 Accounts receivable, net 147,151 143,304 Inventories 59,532 50,701, Other current assets 64872 89,953 Goodwill 355,128 355,128 PP&E and ther non-current assets, 2,565,111 2,379,487 Total Assets x 037, Payable
Slide 28: Wik
g Wik | 2» 88 4 I | Mi i peal i Ee ie ridilliagiads PirliL,aie. |i Pibipt geet Petipa dp Pitibaaabbebe qaatishya eal ae Wee FP 3 ea) qa i : crop eee | ane ey og friar FH Fie nn jal sree | , ce "neon Brat grec oc ee mse reece a 385%
Slide 29: Other miscellaneous earnings items
Other miscellaneous earnings items
Slide 30: State public service commissions
Montana Public Service Commission joners are elected in statewide elections from each of {five districts. Chairperson is elected by fellow Commissioners. Commissioner term is 4 years, Chairperson term is 2 years. ‘Commis Began ‘Term Nome Party Serving Ends Bill Gallagher RR Jon-1-——Jan-15 Gail Gutsc
Slide 31: Plant capacity and ownership, environmental impact
‘Capacity | Ownership| Plant / Unit Fuet_| (Mws) |share (ww)|pm2.5|ozone| soz_| Nox int Owned Facilities" Colstrip 3&4 Coal [2000] Big stone Coal 475) Neal #4 Coal 2) Coyote! Coal 427) [Wholly Owned Facities Dave Gates Generating Station Nat Gas] 150 ‘Aberdeen Fuel Oi Huron Units 1&2 Nat. Gas Recipr
NorthWestern — Sidoti & Company 16th Annual Investor Forum (March 2012) on 6ix