NorthWestern Energy Group, Inc. · NASDAQ:NWE
NorthWestern Energy — Shareholder Meeting (April 2012)
20 slides from NorthWestern Energy's shareholder meeting presentation, Apr 25, 2012
Slide 1: Annual Shareholders Meeting
Annual Shareholders Meeting Butte, Montana April 25, 2012
Slide 2: Forward looking statements
2 Forward looking statements During the course of this presentation, there will be forward‐looking statements within the meaningg of the “safe harbor” provisions p of the Private Securities Litigation Reform Act of 1995. Forward‐looking statements often address our expected future business and finan
Slide 3: Outline
3 Outline Who we are Financial update Investment opportunity outlook
Slide 4: Who we are
4 Who we are Our Vision: Enriching lives through a safe, sustainable energy future Our Mission: Working together to deliver safe, safe reliable and innovative energy solutions Our Values: Safety Excellence Respect Value Integrity Community Environment
Slide 5: Geographically positioned for success
5 Geographically positioned for success A fully‐regulated utility located in states with relatively stable economies with opportunity for system investment and grid expansion Low unemployment rates Great wind profile Our service territory covers some of the best wind regimes in the nation We h
Slide 6: We are a fully-regulated utility
6 We are a fully‐regulated utility Energy Supply Transmission Distribution (1) Electric (MW) MT SD Total 2011 Tx for Others MT SD Total Demand MT SD / NE Total Base load coal 222 210 432 Electric (GWh) 9,100 100 9,200 Daily MWs 750 172 922 Other resources 150 106 256 Natural Gas (Bcf) 18.3 ‐ 18.3 Pe
Slide 7: With competitive customer rates
7 With competitive customer rates Typical Customer bills Electric source: Edison Electric Institute Typical Bills and Average Rates Report, January 1, 2011. Monthly "bundled" costs for supply & delivery Natural gas source: www.eia.doe.gov. ‐ US Natural Gas Sector Report for average cost of gas sold
Slide 8: One hundred years later....
8 One hundred years later…. After a hundred years, electricity is still a great value
Slide 9: Outline
9 Outline Who we are Fi Financial i l update d Investment opportunity outlook
Slide 10: A strong credit profile
10 A strong credit profile Long‐term targeted total debt to capitalization of 50‐55% with a current capitalization of 55.6%(1) Total liquidity of $136 million as of Dec 3131, ’11 11 Refinanced nearly all debt in the last 2 years – Lowered average coupon on long‐term debt by 1.2% and extended m
Slide 11: Reaffirming 2012 earning guidance
11 Reaffirming 2012 earning guidance Compounded Annual Growth Rate (CAGR) 6 Year ('05 - '11): 6.7% 4 Year ('07 - '11) : 15.1% 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 approxima
Slide 12: A history of strong cash flows
12 A history of strong cash flows Compounded Annual Growth Rate (CAGR) 8.1% Cash From Operations 9.4% Maintenance Capex (2) 6.5% Dividend Growth (1) 2009 CCash h Fl Flow ffrom Operations O ti iis adjusted dj t d tto add dd b backk pension i ffunding di iin excess off expense and dAAmmondson d settle
Slide 13: A history of earnings and dividend growth
13 A history of earnings and dividend growth 2005 ‐ 2012E* Compounded Annual Growth Rate (CAGR) DIVIDEND 5.8% EPS (Diluted) 5.1% A history of steady earnings and dividend growth. Targeted dividend payout ratio 60 – 70% and currently a dividend yield of 4‐5%
Slide 14: Solid pension funding
14 Solid pension funding NorthWestern Energy’s Pension Assumptions Target allocation 50% equity and 50% fixed income Expected long‐term rate of return of 7.00% Discount rate of 4.40 – 4.55% As a result of significant pension contributions and solid market returns in prior years, we were better
Slide 15: Outline
15 Outline Who we are Fi Financial i l update d Investment opportunity outlook
Slide 16: Growing investment in our existing system
16 Growing investment in our existing system Over the last seven years we have invested approximately $770 million in maintenance & DSIP capital, or $172 million in excess of depreciation.
Slide 17: Great investment growth opportunities
17 Great investment growth opportunities Significant reinvestment into our existing system and investment growth opportunities, which improve reliability and stabilize rates for our customers, are estimated to nearly double our 2005 rate base.
Slide 18: Investment project summary
18 Investment project summary Capital Opportunity ($millions) Low High Jurisdiction $130 to $150 SDPUC $15 to $25 SDPUC $65 to $75 SDPUC Changed to Green with MPSC pre‐approval granted Feb ‘12 $86 to $86 MPSC $30 to $50 SDPUC $100 $ to $200 $ MPSC $40 to $75 FERC $450 to $550 FERC $200 to $250 FERC
Slide 19: Conclusion
19 Conclusion Realistic li i Fully‐ investment Financially Strong cash Attractive regulated opportunities sound flows dividend utility to invest Free Cash Flow
Slide 20: Questions?
20 Questions? Thank you from all of us at NorthWestern Energy.
NorthWestern Energy — Shareholder Meeting (April 2012) on 6ix