NorthWestern Energy Group, Inc. · NASDAQ:NWE
NorthWestern Energy — Shareholder Meeting (April 2011)
16 slides from NorthWestern Energy's shareholder meeting presentation, Apr 27, 2011
Slide 1: Annual Shareholder Meeting
Annual Shareholder Meeting Grand Island, NE April 27, 2011
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
who we are… 665,000 customers » 399,000 electric » 266,000 natural gas Approximately 123,000 square miles of service territory in Montana, South Dakota, and Nebraska » 27,500 miles of electric T&D lines » 9,200 miles of natural gas T&D pipelines » 20 Bcf natural gas storage » 8.4 Bcf natural gas
Slide 4: NorthWestern's attributes
NorthWestern’s attributes… Solid operations » Cost competitive » Above-average reliability » Award-winning customer service Single A secured credit ratings with a strong balance sheet and liquidity » January 21, 2011 Moody’s upgraded secured and unsecured ratings to A2 and Baa1, respectively » A
Slide 5: Strong credit ratings
strong credit ratings… Agency Secured Unsecured Outlook Standard & Poor's A- BBB Stable Moody's Investor Services A2 Baa1 Stable Fitch Ratings A- BBB+ Stable 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
Slide 6: Strong balance sheet and liquidity
strong balance sheet and liquidity… Total liquidity of approximately $165 million as of February 2011 Total Debt / Total capitalization of 56.6%(1) In past two years refinanced nearly all outstanding debt » In May 2010 we refinanced existing $225 million, 5.875% Senior Secured Notes due 2014 w
Slide 7: Strong cash flows
strong cash flows… (1) Utility maintenance capex only, excludes investment growth projects. (2) 2009 Cash Flow from Operations adjusted to add back pension funding in excess of expense and Ammondson settlement paid.. Earnings trend and NOLs provide strong cash flows to fund future investment. 7
Slide 8: Solid pension funding position
solid pension funding position… As a result of significant contributions to our pension plan over the past several years and solid market returns in 2009 and 2010, we are better positioned than our peers at December 31, 2010. Data source: SNL Financial 8
Slide 9: And sustainable dividend
and sustainable dividend… (1) 2011 estimated payout range assumes midpoint of guidance range $2.25 - $2.40 Goal for dividend payout ratio of 60% - 70%. Current dividend yield about 5% with year-over-year dividend growth. 9
Slide 10: Reaffirming 2011 EPS guidance
reaffirming 2011 EPS guidance… $2.50 NorthWestern Earnings Per Share $2.40 $2.25 $2.00 $2.14 Fully Diluted Earnings Per Share $2.02 $1.77 $1.50 $1.65 $1.44 $1.00 $1.01 $0.50 Low High $0.00 2005 2006 2007 2008 2009 2010 2011 Guidance 10
Slide 11: Constructive regulatory environment
constructive regulatory environment… Montana » Electric and natural gas general rate case ♦ September 2010: Joint stipulation with Montana Consumer Counsel (MCC) filed with MPSC resulting in a net $6.7 million increase to revenue predicated upon a 10.25% ROE and 5.76% cost of debt (7.92% ROR) ♦ De
Slide 12: Regulatory environment con't
regulatory environment con’t… South Dakota » Expect to file natural gas rate cases during 2011 pending 2010 results » Expect to file an environmental rider on the Big Stone & Neal plant for emissions compliance projects Nebraska » Don’t plan to file natural gas rate case during 2011 based on 201
Slide 13: Regulatory milestones in 2011
regulatory milestones in 2011… Montana South Dakota Distribution Infrastructure Natural Gas Rate Case Decision in favor of accounting order (MPSC) Q1 File rate case pending 2010 results (SDPUC) Q2 Prudency Review for Mill Creek Environmental Riders for Big Stone & Neal Interim rate filing (MPSC)
Slide 14: Longer term investment opportunities
longer term investment opportunities… Distribution system enhancements » Incremental rate based investment to enhance safety, reliability and capacity, improve rural service, and prepare the system for adaptation of new technologies. Energy supply » Big Stone and Neal plants’ pollution control e
Slide 15: Potential project summary
potential project summary… Note: Color / label indicate NorthWestern Energy's current probability of execution and timing of expenditures. Opportunity to increase and diversify earnings as compared with our existing $1.8 billion rate base (including Mill Creek). 15
Slide 16: In summary
in summary… Solid operations Single A secured credit ratings with a strong balance sheet and liquidity Positive earnings and ROE trend Strong cash flows Competitive total shareholder return with a dividend that has increased every year since 2005 Constructive regulatory environment For
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