Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Investor Presentation (March 2009)
20 slides from Northwestern Energy's investor presentation, Mar 24, 2009
Slide 1: Investor Update
Investor Update Fort Worth, Austin, and Houston, TX March 24 & 25, 2009
Slide 2: Forward-looking statement
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: Who we are
Located in relatively stable economies with potential grid expansion in the Northwest. who we are… (1) As of 12/31/08 (2) Book capitalization calculated as total debt, excluding capital leases, plus shareholders’ equity. 656,000 customers 392,000 electric 264,000 natural gas Approximately 123,000 sq
Slide 4: NorthWestern's attributes: solid operations with growth prospects
Solid operations with growth prospects. NorthWestern’s attributes … Increasing earnings Colstrip Unit 4 into rates effective Jan. 1, 2009 Expected to add $9 million or $.25/share in earnings over 2008 Rate case to be filed in Montana on electric and gas distribution business in 2Q ‘09 Strong cash fl
Slide 5: Regulatory update
Establishing constructive regulatory regulations in all jurisdictions. regulatory update… Rate case to be filed in Montana in 2009 Filing will include both electric and natural gas distribution businesses Expect to file in 3Q 2009 on 2008 test year Expect decision by July 1, 2010 Mill Creek Generati
Slide 6: Generation growth highlights
In service date for Mill Creek Generation Station = Jan 1, 2011 generation growth highlights… 120-150 MW plant near Anaconda, MT To be built for regulation services to balance supply and load for NWE’s Balancing Area Rate-based cost of service investment Estimated to cost approximately $200 million
Slide 7: Mill Creek timeline
The Mill Creek Generation Station has been filed for pre-approval, with the MPSC w/decision expected in 2Q ’09. Mill Creek timeline…
Slide 8: Our proposed transmission projects
our proposed transmission projects …
Slide 9: Generation plans shifting to wind
New generation in Montana mostly wind and will need to find an end user. generation plans shifting to wind …
Slide 10: Supply - Montana wind potential
Very strong wind regime in Montana. supply - Montana wind potential…
Slide 11: Demand - renewable standards
The current renewable percentage of NorthWestern’s electric supply in Montana is a little more than 8%. demand - renewable standards…
Slide 12: Our transmission developments: Colstrip 500 kV Upgrade
In service date of January 1, 2012. our transmission developments… Line already exists – represents an upgrade Upgrades substation capacity Increases load capacity of existing line by 500-600 MW’s NorthWestern announced joint development agreement with others Portland General Puget Sound Energy Paci
Slide 13: Transmission project developments: 230 kV Collector System
In service date sometime in 2014. transmission project developments… 230 kV “Collector System” Our project with no partners Informational meeting with customers in Spring 2009 Open Season early ‘09 to determine configuration Provides gathering system for new generation to access MSTI and network sys
Slide 14: Transmission project developments cont'd: MSTI
Estimated to be on line early 2014. transmission project developments cont’d… Total project cost estimated from $800 million to $1 billion Considering strategic partners Plan to be operational in 2014 FERC filing in January ’09 Information meeting with FERC in March ‘09 Open Season anticipated in su
Slide 15: Cap ex spending - next few years
Non-discretionary capex is funded 100% by free cash flow. Company doesn’t anticipate needing equity unless we proceed with MSTI. We will move forward with the funding of these projects only when they make economic sense. MSTI project is now slated for early 2014 and capex has been modified according
Slide 16: Growth project potential
Possibility to double and diversify earnings as compared with our existing $1.5 billion rate base as of 1/1/09. growth project potential… (in millions) Timing Mill Creek Generation Station $ to $ 10.0 $ to 10.0 $ Jan 2011 Colstrip 500 kV transmission upgrade ** $ to $ 2.5 $ to 3.0 $ Jan 2012 South D
Slide 17: 2009 income guidance
Expect increase of 5% to 13% over 2008 earnings of $1.77/share . 2009 income guidance… Drivers CU4 increase expected to be approximately $9 million or $.25/share Retail electric and natural gas volumes expected to approximate 2008 Pension expense expected to be flat compared to 2008 Normal weather i
Slide 18: Credit ratings
Fitch upgraded in January 2009 and Moody’s upgraded in March 2009. Debt to total capital ratio is 53%. Plan to maintain a 50%-55% debt to total capitalization ratio. credit ratings… Fitch S&P Moody’s Senior Secured Rating BBB+ A- (MT) Baa1 BBB+ (SD) Senior Unsecured BBB BBB Baa2 Outlook Stable Stabl
Slide 19: 2009 financing plan
Current liquidity of approximately of $130 million and no other significant maturities until 2014 2009 financing plan … Issue up to $350 million of long-term senior debt securities refinance our Colstrip loan maturing in December 2009 finance a portion of the proposed Mill Creek Generation Station a
Slide 20: Summary
Current value with growth opportunities. summary … Value Dividend yield in excess of 6.0% Currently trading at approximately book value Improved regulatory relationships Opportunity for growth January 1, 2009 rate basing our 222 MW interest in CU4 Montana T&D rate case to be filed in 2009 expecting