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
Mystic Dam Acquisition of PPL Montana Montana’s s Baseload Hydro Assets September 27th 2013
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 safe harbor” harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often address our expected future business and fin
Slide 3: Presenters
Presenters Robert C. Rowe President and Chief Executive Officer Brian B. Bird Vice President and Chief Financial Officer John D. D Hines Vice President – Supply 3
Slide 4: Transaction Highlights
Transaction Highlights • 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 reliable energy for our customers for generations to Transaction and come Purchase Price •
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. • Opportunity to acquire clean, reliable, long-lived generation assets near the bottom of commodity p
Slide 6: Overview of PPL Montana Hydro Facilities
Overview of PPL Montana Hydro Facilities Overview of Hydro Facilities(1) Pro Forma NorthWestern Facilities (Montana) Net FERC 5-Yr Avg. Capacity License Capacity Plant (MW) Ownership% COD River Source Expiration Factor(2) Missouri Missouri MissouriRiver Missouri Missouri Missouri River River River R
Slide 7: Pro Forma Generation Profile
Pro Forma Generation Profile Owned Resources for Retail Use as 12/31/2012 (Percentage by MWh) 140% 93% Peer Average 120% 100% 127% 122% 0% 120% 80% 105% 102% 98% 97% 91% 84% 60% 78% 77% 40% 64% 60% 60% 53% 20% 44% 0% WR GXP EE CNL UNS IDA EDE VVC ALE AVA UIL MGEE PNM BKH POR NWE Owned Resources - NW
Slide 8: Meeting Customer Demand
Meeting 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 to meet demand during heavy load periods Heavy y Load Hours 500,000 Conveyance of Kerr Dam to CSKT 400,000 MWhs 300,000 200,000
Slide 9: A Great Investment for the Future
A Great Investment for the Future Jurisdictional Rate Base Electric vs. Gas Rate Base ($ in billions) ($ in billions) $2.9 $2.9 $0.3 $0.4 $2.0 $2.0 $0.9 $0.9 $0.3 $ $0.4 $1.7 $1.7 $1.5 $1.5 2012 Pro forma for Transaction 2012 Pro forma for Transaction Rate Base Rate Base Montana MT Hydro Nebraska So
Slide 10: Financing Strategy
Financing Strategy Low Risk Financing Strategy • Assets will become fully regulated by MPSC as part of NorthWestern rate base upon closing • Fully F ll committed itt d iinitial iti l b bridge id ffrom C Credit dit S Suisse i and dBBank k off A America i M Merrill ill L Lynch h ffor ffullll $900 mill
Slide 11: Compelling Value Proposition
Compelling Value Proposition Levelized cost less than all new build alternatives Implied multiples well within the range of recent comparable hydroelectric transactions Expected immediate earnings accretion in line with an asset acquisition of this size E i Earnings accretion ti supports t o
Slide 12: Questions and Answers
Questions and Answers Ryan Dam 12
Slide 13: Precedent Hydro Transaction Multiples
Precedent Hydro Transaction Multiples 1 Brookfield Renewable Energy Partners acquiring a 351 ($ / kW) MW portfolio from NextEra Energy (12/21/12) 2 Innergex Renewable Energy acquiring 28 MW (operating only) Magpie facility (7/26/12) 3 3 Brookfield Renewable Energy Partners acquiring the 351 $1,709 M
Slide 14: Levelized Cost Less Than All New Build Alternatives
Levelized Cost Less Than All New Build Alternatives New build alternatives (30-year levelized cost of energy – 2013$) ($ / MWh) Expected 30-year levelized cost of hydro acquisition: $60 / MWh The hydro acquisition provides long-term energy certainty at lower levelized costs without a carbon footprin
Slide 15: Delivering a bright future
U Delivering a bright future NorthWesterni Energy
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