** TABLE COPY **
American Gas Association
Financial Forum | May 20-21, 2024
8-K Date: May 20, 2024
NorthWestern Energy
NorthWestern Energy Group, Inc.
dba: NorthWestern Energy
Ticker: NWE (Nasdaq) www.northwesternenergy.com
Corporate Support Office
3010 West 69th Street Sioux Falls, SD 57108 (605) 978-2900
Director of Corporate Development &
Investor Relations Officer
Travis Meyer
605-978-2967 travis.meyer@northwestern.com
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 performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will."
The information in this presentation is based upon our current expectations as of the date of this document unless otherwise noted. Our actual future business and financial performance may differ materially and adversely from our expectations expressed in any forward-looking statements. We undertake no obligation to revise or publicly update our forward-looking statements or this presentation for any reason. Although our expectations and beliefs are based on reasonable assumptions, actual results may differ materially. The factors that may affect our results are listed in certain of our press releases and disclosed in the Company's 10-K and 10-Q along with other public filings with the SEC.
2
Overview
3
NWE - An Investment for the Long Term
Pure Electric &
Gas Utility
Solid Utility Foundation
Earnings &
Cash Flow
- 100% pure electric & natural gas utility with over 100 years of operating history
- Solid economic indicators in service territory
- Diverse electric supply portfolio ~55% hydro, wind & solar
- Residential electric & gas rates below national average
- Solid system reliability
- Low leaks per 100 miles of pipe
- Solid JD Power Overall Customer Satisfaction scores
- Approved Montana electric & natural gas and South Dakota electric rate reviews aid earnings, cash flow, and balance sheet strength
- NOLs and tax credits expected to mitigate future cash tax obligations
- History of consistent annual dividend growth
Recognized as one of
America's Greatest Workplaces
Attractive
Future Growth
Prospects
Financial Goals
& Metrics
Best Practices
Corporate
4 Governance
- Disciplined maintenance capital investment program focus on reliability, capacity, asset life and compliance
- Further opportunity for energy supply investment to meet significant capacity shortfalls
- Target 4%-6% EPS growth plus dividend yield to provide competitive total return
- Target dividend long-term payout ratio of 60%-70%
- Target debt to capitalization ratio of 50%-55% with liquidity of $100 million or greater
5th Best Governance Score
About NorthWestern
Montana Operations
Electric
405,500 customers
25,274 miles - transmission & distribution lines
887 MW maximum capacity owned power generation
Natural Gas
212,100 customers
7,390 miles of transmission and distribution pipeline
17.85 Bcf of gas storage capacity
Own 31.5 Bcf of proven natural gas reserves
South Dakota Operations
Electric
64,800 customers
3,675 miles - transmission & distribution lines
446 MW nameplate owned power generation
Natural Gas
49,800 customers
1,802 miles of transmission and distribution pipeline
Nebraska Operations
Natural Gas
43,100 customers
826 miles of distribution pipeline
5 Data as of 12/31/2023
The NorthWestern Value Proposition
+ | ~5% Dividend Yield |
+ | |
Base Capital Plan: | Incremental Opportunities: |
4%-6% EPS Growth | 6% + EPS Growth |
FERC Transmission | |
Incremental generating | |
capacity | |
(subject to successful resource | |
procurement bids) | |
Qualifying Facility and / or | |
Power Purchase Agreement | |
buyouts | |
Electrification supporting | |
economic development | |
= | = |
9%-11% Total Growth | 11%+ Total Growth |
Nearly $2.5 billion of highly executable and low-risk capital investment forecasted over the next five years.
This investment is expected to drive annualized earnings and rate base growth of approximately 4% - 6%.
See slide titled "Strong Growth Outlook"
for additional information.
6
A Diversified Electric and Gas Utility
* Reflects settled filings in Montana and South Dakota.
NorthWestern's '80/20' rules:
Approximately 80% Electric
and 80% Montana.
Over $4.8 billion of rate base
investment to serve our
customers
7
Data as reported in our 2023 10-K | (1) Utility Margin is a non-GAAP Measure. See appendix for additional disclosure. |
Highly Carbon-Free Supply Portfolio
MT
NWE
SD
Contracted coke and waste tailings as well as a majority of the contracted wind, hydro and solar are federally mandated Qualifying Facilities, as defined under the Public Utility Regulatory Policies Act of 1978 (PURPA).
NorthWestern does not own all the renewable energy certificates (RECs) generated by contracted wind, and periodically sells its own RECs with proceeds benefiting retail customers. Accordingly, we cannot represent that 100% of carbon-free energy in the portfolio was delivered to our customers.
Based upon 2023 MWH's of owned and long-term contracted resources. | |
Approximately 55% of our total company owned and contracted supply is | |
8 | carbon-free - better than the national average of ~40% in 2022. (eia.gov table 7.2b) |
Strong Utility Foundation
1) NWE rates as of 2/1/2024
Electric source: U.S. EIA -
Average Retail Price of
Electricity, Monthly as of
February 2024
Natural Gas source: U.S. EIA -
U.S. Price of Natural Gas
Delivered to Residential
Customers as of February 2024
Solid and generally improving JD Power Overall | • | Residential rates below national average1 | |
Customer Satisfaction Scores | • | Better than average natural gas leaks per mile | |
9 | Solid electric system reliability |
Solid Economic Indicators
Source: Company 10K's, 2021/2022 EEI Statistical Yearbook - Table 7.2, and EIA.gov | Source: Company 10K's and EIA.gov |
- Customer growth rates historically exceed National Averages.
- Projected population growth in our service territories better than the National Average.
- Unemployment rates better than National Average
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NorthWestern Corporation published this content on 20 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2024 13:22:04 UTC.