| | NorthWestern Corporation d/b/a NorthWestern Energy 3010 W. 69th Street Sioux Falls, SD 57108 www.northwesternenergy.com |
NYSE: NWE News Release FOR IMMEDIATE RELEASE | Media Contact: Claudia Rapkoch (866) 622-8081 claudia.rapkoch@northwestern.com Investor Relations Contact: Dan Rausch (605) 978-2902 daniel.rausch@northwestern.com |
NORTHWESTERN REPORTS SECOND QUARTER 2009 RESULTS
Reports diluted EPS of $.17/share compared with $.24/share in 2Q 2008
Reduces guidance for 2009 to be $1.75 - $1.85 per fully diluted share from $1.85 - $2.00 per fully diluted share
SIOUX FALLS, S.D. – July 29, 2009 – NorthWestern Corporation d/b/a NorthWestern Energy (NYSE: NWE) reported financial results for the quarter ended June 30, 2009.
Significant achievements for the quarter include:
| • | Received approval from the MPSC to construct the proposed 150 MW Mill Creek Generating Station project with a 50% debt and 50% equity capital structure, return on equity at 10.25% and debt at 6.5%; and |
| • | Amended and restated the revolving credit facility to increase the amount to $250 million from the current $200 million and to extend the maturity date to June 30, 2012 from November 1, 2009. |
Financial Results
Consolidated net income was $6.1 million or $.17 per diluted share for the quarter ended June 30, 2009, compared with consolidated net income of $9.5 million or $.24 per diluted share for the quarter ended June 30, 2008. Computed diluted shares were 36.3 million at June 30, 2009 compared with 39.4 million diluted shares at June 30, 2008.
Consolidated net income for the six months ended June 30, 2009 was $28.9 million, a decrease of $4.1 million or 12.4%, from $33.0 million in 2008.
“During the second quarter of 2009, we experienced economy-driven weakness in non-firm wholesale transmission revenues in Montana and wholesale power prices in South Dakota when compared with the second quarter of 2008,” said Bob Rowe, President and CEO. “We continue to maintain a strong balance sheet. We recently bolstered our liquidity by issuing debt to facilitate execution of our capital projects, specifically including the Mill Creek Generating Station currently under construction. Finally, we are continuing to work to take actions now to focus on discretionary spending to address the declining gross margins.”
Consolidated gross margin for the second quarter of 2009 was $128.9 million compared with $127.2 million for the second quarter of 2008. The improvement in consolidated gross margin was substantially due to the transfer of our interest in Colstrip Unit 4 to Montana utility rate base
NorthWestern Reports Second Quarter 2009 Financial Results
July 29, 2009
Page 2
and represents our return on rate base. This improvement was offset by decreases in electric transmission, electric wholesale and natural gas margins primarily due to lower demand, as a result of economic conditions and mild weather.
Consolidated gross margin for the six months ended June 30, 2009 was $291.8 million compared with $284.0 million in the same period of 2008.
Consolidated operating, general and administrative expenses increased to $60.9 million for the quarter ended June 30, 2009 as compared with $53.9 million for the quarter ended June 30, 2008. The increase was due primarily to increased labor and benefit costs due to compensation increases, severance costs, and higher post-retirement benefit costs combining for an increase of approximately $3 million. In addition, the Company experienced approximately $2.9 million higher pension expense in the second quarter of 2009 compared with the second quarter of 2008 based on our funding projections and a revised MPSC pension accounting order issued during the fourth quarter of 2008. The Company also recorded a $3.5 million insurance recovery during the second quarter of 2009 related to previously incurred Montana generation related environmental remediation costs, partially offset by a $1.8 million insurance recovery during the second quarter of 2008.
Consolidated operating, general and administrative expenses were $126.3 million for the six months ended June 30, 2009 as compared with $113.9 million in same period of 2008.
Property and other taxes were $18.2 million for the three months ended June 30, 2009 as compared with $20.5 million in the second quarter of 2008. For the six months ended June 30, 2009, property and other taxes were $42.5 million compared with $44.2 million in the same period of 2008. The decreases were due to lower assessed property valuations.
Depreciation expense was $22.3 million for the three months ended June 30, 2009 as compared with $21.2 million in the second quarter of 2008. For the six months ended June 30, 2009, depreciation expense was $45.0 million compared with $42.3 million in the same period of 2008. These increases were primarily due to plant additions.
Interest expense for the three months ended June 30, 2009 was $18.0 million, an increase of $2.2 million from the second quarter of 2008. For the six months ended June 30, 2009, interest expense was $33.1 million compared with $31.8 million in the same period of 2008. These increases were primarily related to an increase in long-term debt outstanding.
Income tax expense for the three months ended June 30, 2009 was $3.6 million as compared with $6.0 million in the second quarter of 2008. Our effective tax rate for 2009 was 36.9% as compared with 38.7% for 2008. For the six months ended June 30, 2009, income tax expense was $16.7 million compared with $19.2 million in the same period of 2008.
Results from Regulated Operations
Regulated electric gross margin for the quarter ended June 30, 2009 was $101.8 million, up 10.9%, compared with $91.8 million for the same period of 2008. This improvement is primarily due to the transfer of Colstrip Unit 4 from the unregulated electric segment to the regulated utility, which will help provide rate stability for our customers. This transfer is reflected as an increase in retail revenue and a reduction to cost of sales. Prior to the transfer of Colstrip Unit 4, all of our Montana electric supply costs were based on power purchase agreements, which are passed through to customers at actual cost with no return component. In addition, the
NorthWestern Reports Second Quarter 2009 Financial Results
July 29, 2009
Page 3
unregulated electric margin for the same period of 2008 included an unrealized loss on a forward electric sales contract of $5.2 million. This increase in electric margin was offset in part by lower transmission volumes with less demand to transmit energy for others across our lines, a decrease in wholesale margin due to lower sales at lower average prices, and higher qualifying facility (QF) supply costs based on actual QF pricing and output.
Regulated retail electric volumes for the quarter ended June 30, 2009 totaled 2,298,000 megawatt hours compared with 2,370,000 megawatt hours for the quarter ended June 30, 2008, a 3.0% decrease. The decrease was due to a combination of economic conditions and mild weather partially offset by growth in the number of residential and commercial customers. Wholesale electric volumes were 154,000 megawatt hours for the quarter ended June 30, 2009, an increase from 82,000 megawatt hours for the same period in 2008. The increase was primarily due to the transfer of Colstrip Unit 4 to the regulated utility, partially offset by a decrease in South Dakota wholesale volumes from lower plant availability.
Regulated electric gross margin for the six months ended June 30, 2009 was $215.1 million, up 16.1%, compared with $185.3 million for the same period of 2008 generally for the same reasons as the increase in the second quarter discussed above.
Regulated retail electric volumes for the six months ended June 30, 2009 totaled 4,961,000 megawatt hours compared with 5,005,000 megawatt hours for the six months ended June 30, 2008. Wholesale electric volumes were 397,000 megawatt hours for the six months ended June 30, 2009, an increase from 131,000 megawatt hours for the same period in 2008.
Regulated natural gas gross margin was $28.5 million for the quarter ended June 30, 2009 compared with $30.6 million during the second quarter of 2008. Regulated retail natural gas volumes were 5,417,000 dekatherms for the quarter ended June 30, 2009 compared with 6,055,000 dekatherms for the same period in 2008. The decline in gross margin and volumes is primarily due to warmer weather in all service territories.
Regulated natural gas gross margin was $78.4 million for the six months ended June 30, 2009 compared with $81.0 million during the same period of 2008.
Regulated retail natural gas volumes were 19,287,000 dekatherms for the six months ended June 30, 2009 compared with 20,227,000 dekatherms for the same period in 2008. The decline in gross margin and volumes is primarily due to warmer weather in Montana and Nebraska.
Liquidity and Capital Resources
As of June 30, 2009, cash and cash equivalents were $23.0 million compared with $11.3 million at Dec. 31, 2008. As of June 30, 2009, our total net liquidity was approximately $269.3 million, compared with $ 86.2 million at Dec. 31, 2008. The increase in liquidity was due primarily to issuance of $250 million of Montana First Mortgage Bonds in March 2009 and an amendment to the unsecured revolving line of credit that increased the availability under that line from $200 million to $250 million.
Cash provided by operating activities totaled $85.4 million for the six months ended June 30, 2009 as compared with $124.6 million during the six months ended June 30, 2008. This decrease in operating cash flows is primarily related to increased pension funding of approximately $41.3 million and a $10.8 million prepayment of a power purchase agreement,
NorthWestern Reports Second Quarter 2009 Financial Results
July 29, 2009
Page 4
offset by lower commodity prices reflected in the change in accounts receivable and accounts payable, as well as decreased cash outflows for natural gas storage injections.
Cash used in investing activities during the six months ended June 30, 2009 increased by approximately $3.5 million as compared with 2008 due to increased property, plant and equipment additions. Capital expenditures for the six months ended June 30, 2009 were $46.9 million as compared with $43.1 million in the same period of 2008.
Cash used in financing activities totaled approximately $27.2 million during the six months ended June 30, 2009 as compared with $70.1 million during the six months ended June 30, 2008. During the first half of 2009, the Company received net proceeds from the issuance of debt of $249.8 million, made net debt repayments of $243.0 million, paid deferred financing costs of $9.9 million and paid dividends on common stock of $24.1 million. During the six months ended June 30, 2008, the Company made net debt repayments of $42.9 million and paid dividends on common stock of $25.7 million.
2009 Earnings Outlook
NorthWestern reduces its earnings outlook for 2009 to be $1.75 - $1.85/fully diluted share from previous guidance of $1.85 - $2.00/fully diluted share.
The major assumptions include, but are not limited to, the following expectations:
| • | Reduced off-system transmission revenues in Montana for the remainder of 2009 |
| • | 2009 net income will increase by approximately $9 million or $.25 per share as a result of the inclusion of our interest in Colstrip Unit 4 in regulated electric rate base; |
| • | Pension expense based on an assumed 8% return on plan assets for 2009; |
| • | Retail electric volumes will be flat compared with 2008 volumes; |
| • | Wholesale electric volumes in South Dakota will decrease due to pricing and volume reductions; |
| • | Residential and Commercial natural gas volumes will be relatively flat compared with 2008 volumes; |
| • | Fully diluted average shares outstanding of 36.5 million; and |
| • | Normal weather in the Company’s electric and natural gas service territories for the rest of 2009. |
Company Hosting Investor Conference Call
NorthWestern will host an investor conference call today at 2:30 pm Eastern Time to review its financial results for the quarter ended June 30, 2009.
The conference call will be webcast live on the Internet at http://www.northwesternenergy.com under the “Investor Information” heading. To listen, please go to the site at least 10 minutes in advance of the call to register. An archived webcast will be available shortly after the call.
A telephonic replay of the call will be available beginning at 4:30 pm Eastern Time today through August 29, 2009, at 800-475-6701, access code 107524.
About NorthWestern Energy
NorthWestern Reports Second Quarter 2009 Financial Results
July 29, 2009
Page 5
NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 656,000 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the Company's Web site at www.northwesternenergy.com.
SPECIAL NOTE REGARDING FORWARD—LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, the information under “2009 Earnings Outlook”. 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.” These statements are based upon our current expectations and speak only as of the date hereof. Our actual future business and financial performance may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including, but not limited to:
| • | potential adverse federal, state, or local legislation or regulation or adverse determinations by regulators could have a material adverse effect on our liquidity, results of operations and financial condition; |
| • | unanticipated changes in availability of trade credit, usage, commodity prices, fuel supply costs or availability due to higher demand, shortages, weather conditions, transportation problems or other developments, may reduce revenues or may increase operating costs, each of which would adversely affect our liquidity; |
| • | unscheduled generation outages or forced reductions in output, maintenance or repairs, which may reduce revenues and increase operating costs or may require additional capital expenditures or other increased operating costs; and |
| • | adverse changes in general economic and competitive conditions in the U.S. financial markets and in our service territories. |
Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition.
We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
# # #
NorthWestern Reports Second Quarter 2009 Financial Results
July 29, 2009
Page 6
NORTHWESTERN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
| | Three Months Ended June 30, | | Six Months Ended June 30, | |
| | 2009 | | 2008 | | 2009 | | 2008 | |
Revenues | | | | | | | | | | | |
Electric | | $ | 173,463 | | $ | 178,967 | | $ | 381,450 | | $ | 375,586 | |
Gas | | 61,330 | | 80,531 | | 220,133 | | 252,174 | |
Other | | 920 | | 17,008 | | 5,033 | | 34,721 | |
Total Revenues | | 235,713 | | 276,506 | | 606,616 | | 662,481 | |
Operating Expenses | | | | | | | | | |
Cost of sales | | 106,840 | | 149,354 | | 314,850 | | 378,438 | |
Operating, general and administrative | | 60,898 | | 53,866 | | 126,317 | | 113,937 | |
Property and other taxes | | 18,246 | | 20,540 | | 42,535 | | 44,180 | |
Depreciation | | 22,260 | | 21,225 | | 44,982 | | 42,316 | |
Total Operating Expenses | | 208,244 | | 244,985 | | 528,684 | | 578,871 | |
Operating Income | | 27,469 | | 31,521 | | 77,932 | | 83,610 | |
Interest Expense | | (18,002 | ) | (15,848 | ) | (33,136 | ) | (31,849 | ) |
Other Income (Expense) | | 198 | | (161 | ) | 789 | | 422 | |
Income Before Income Taxes | | 9,665 | | 15,512 | | 45,585 | | 52,183 | |
Income Tax Expense | | (3,567 | ) | (6,009 | ) | (16,674 | ) | (19,229 | ) |
Net Income | | $ | 6,098 | | $ | 9,503 | | $ | 28,911 | | $ | 32,954 | |
Average Common Shares Outstanding | | 35,940 | | 38,973 | | 35,937 | | 38,973 | |
Basic Earnings per Average Common Share | | $ | 0.17 | | $ | 0.24 | | $ | 0.80 | | $ | 0.85 | |
Diluted Earnings per Average Common Share | | $ | 0.17 | | $ | 0.24 | | $ | 0.80 | | $ | 0.84 | |
Dividends Declared per Average Common Share | | $ | 0.335 | | $ | 0.33 | | $ | 0.67 | | $ | 0.66 | |
NorthWestern Reports Second Quarter 2009 Financial Results
July 29, 2009
Page 7
NORTHWESTERN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
(in thousands)
| | | June 30, | | | December 31, | |
2009 | 2008 |
ASSETS | | | | | | | |
Current Assets | | $ | 260,374 | | $ | 313,417 | |
Property, Plant, and Equipment, Net | | | 1,852,378 | | | 1,839,699 | |
Goodwill | | | 355,128 | | | 355,128 | |
Regulatory Assets | | | 223,380 | | | 233,102 | |
Other Noncurrent Assets | | | 28,710 | | | 20,691 | |
Total Assets | | $ | 2,719,970 | | $ | 2,762,037 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | |
Current Maturities of Long-term Debt and Capital Leases | | $ | 7,310 | | $ | 229,238 | |
Current Liabilities | | | 313,313 | | | 359,339 | |
Long-term Capital Leases | | | 36,202 | | | 36,798 | |
Long-term Debt | | | 862,997 | | | 634,011 | |
Noncurrent Regulatory Liabilities | | | 234,612 | | | 222,969 | |
Deferred Income Taxes | | | 143,233 | | | 114,707 | |
Other Noncurrent Liabilities | | | 353,342 | | | 401,442 | |
Total Liabilities | | | 1,951,009 | | | 1,998,504 | |
Total Shareholders’ Equity | | | 768,961 | | | 763,533 | |
Total Liabilities and Shareholders’ Equity | | $ | 2,719,970 | | $ | 2,762,037 | |
NorthWestern Reports Second Quarter 2009 Financial Results
July 29, 2009
Page 8
NORTHWESTERN CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
(in thousands)
| | Six Months Ended June 30, | |
| | 2009 | | 2008 | |
Operating Activities | | | | | |
Net income | | $ | 28,911 | | $ | 32,954 | |
Non-cash items | | 64,628 | | 73,001 | |
Changes in operating assets and liabilities | | (8,008 | ) | 18,699 | |
Cash Provided by Operating Activities | | 85,531 | | 124,654 | |
| | | | | |
Cash Used in Investing Activities | | (46,660 | ) | (43,058 | ) |
| | | | | |
Cash Used In Financing Activities | | (27,200 | ) | (70,127 | ) |
| | | | | |
Net Increase in Cash and Cash Equivalents | | $ | 11,671 | | $ | 11,469 | |
Cash and Cash Equivalents, beginning of period | | $ | 11,292 | | $ | 12,773 | |
Cash and Cash Equivalents, end of period | | $ | 22,963 | | $ | 24,242 | |
NorthWestern Reports Second Quarter 2009 Financial Results
July 29, 2009
Page 9
NORTHWESTERN CORPORATION
REGULATED ELECTRIC SEGMENT
Three Months Ended June 30, 2009
(Unaudited)
| | Results | |
| | 2009 | | 2008 | | Change | | % Change | |
| | (in millions) | |
Retail revenue | | 151.1 | | 166.0 | | (14.9 | ) | (9.0 | )% |
Transmission | | 10.3 | | 12.8 | | (2.5 | ) | (19.5 | ) |
Wholesale | | 10.6 | | 3.8 | | 6.8 | | 178.9 | |
Other | | 1.5 | | (3.6 | ) | 5.1 | | 141.7 | |
Total Revenues | | 173.5 | | 179.0 | | (5.5 | ) | (3.1 | ) |
Total Cost of Sales | | 71.7 | | 87.2 | | (15.5 | ) | (17.8 | )% |
Gross Margin | | $ | 101.8 | | $ | 91.8 | | $ | 10.0 | | 10.9 | % |
| | | | | | | | | | | | |
| | Revenues | | Volumes MWH | | Avg. Customer Counts | |
| | 2009 | | 2008 | | 2009 | | 2008 | | 2009 | | 2008 | |
| | (in thousands) | | | | | | | | | |
Retail Electric | | | | | | | | | | | | | |
Montana | | $ | 47,366 | | $ | 53,269 | | 488 | | 498 | | 268,627 | | 265,820 | |
South Dakota | | 9,496 | | 9,802 | | 108 | | 105 | | 48,181 | | 47,882 | |
Residential | | 56,862 | | 63,071 | | 596 | | 603 | | 316,808 | | 313,702 | |
Montana | | 64,402 | | 69,587 | | 749 | | 756 | | 60,316 | | 59,449 | |
South Dakota | | 14,748 | | 15,375 | | 202 | | 200 | | 11,701 | | 11,522 | |
Commercial | | 79,150 | | 84,962 | | 951 | | 956 | | 72,017 | | 70,971 | |
Industrial | | 8,267 | | 11,622 | | 702 | | 773 | | 72 | | 71 | |
Other | | 6,840 | | 6,351 | | 49 | | 38 | | 5,843 | | 5,559 | |
Total Retail Electric | | $ | 151,119 | | $ | 166,006 | | 2,298 | | 2,370 | | 394,740 | | 390,303 | |
Wholesale Electric | | | | | | | | | | | | | |
Montana | | $ | 9,068 | | $ | — | | 96 | | — | | N/A | | N/A | |
South Dakota | | 1,485 | | 3,780 | | 58 | | 82 | | N/A | | N/A | |
Total Wholesale Electric | | $ | 10,553 | | $ | 3,780 | | 154 | | 82 | | N/A | | N/A | |
| | | | | | | | | | | | | | | | | |
| | 2009 as compared with: | |
Cooling Degree-Days | | 2008 | | Historic Average | |
Montana | | 9% colder | | 27% colder | |
South Dakota | | 132% warmer | | 38% colder | |
NorthWestern Reports Second Quarter 2009 Financial Results
July 29, 2009
Page 10
REGULATED ELECTRIC SEGMENT
Six Months Ended June 30, 2009
(Unaudited)
| | Results | |
| | 2009 | | 2008 | | Change | | % Change | |
| | (in millions) | |
Retail revenue | | $ | 331.6 | | $ | 347.3 | | $ | (15.7 | ) | (4.5 | )% |
Transmission | | 22.3 | | 23.9 | | (1.6 | ) | (6.7 | ) |
Wholesale | | 21.7 | | 5.8 | | 15.9 | | 274.1 | |
Other | | 5.9 | | (1.4 | ) | 7.3 | | 521.4 | |
Total Revenues | | 381.5 | | 375.6 | | 5.9 | | 1.6 | |
Total Cost of Sales | | 166.4 | | 190.3 | | (23.9 | ) | (12.6 | ) |
Gross Margin | | $ | 215.1 | | $ | 185.3 | | $ | 29.8 | | 16.1 | % |
| | | | | | | | | | | | | | |
| | Revenues | | Volumes MWH | | Avg. Customer Counts | |
| | 2009 | | 2008 | | 2009 | | 2008 | | 2009 | | 2008 | |
| | (in thousands) | | | | | | | | | |
Retail Electric | | | | | | | | | | | | | |
Montana | | $ | 113,460 | | $ | 120,563 | | 1,166 | | 1,167 | | 268,815 | | 265,962 | |
South Dakota | | 23,042 | | 22,433 | | 280 | | 264 | | 48,188 | | 47,895 | |
Residential | | 136,502 | | 142,996 | | 1,446 | | 1,431 | | 317,003 | | 313,857 | |
Montana | | 133,294 | | 139,439 | | 1,545 | | 1,555 | | 60,260 | | 59,299 | |
South Dakota | | 31,421 | | 31,059 | | 430 | | 422 | | 11,588 | | 11,427 | |
Commercial | | 164,715 | | 170,498 | | 1,975 | | 1,977 | | 71,848 | | 70,726 | |
Industrial | | 19,213 | | 23,112 | | 1,467 | | 1,534 | | 72 | | 71 | |
Other | | 11,151 | | 10,718 | | 73 | | 63 | | 5,242 | | 5,106 | |
Total Retail Electric | | $ | 331,581 | | $ | 347,324 | | 4,961 | | 5,005 | | 394,165 | | 389,760 | |
Wholesale Electric | | | | | | | | | | | | | |
Montana | | $ | 18,890 | | $ | — | | 299 | | — | | N/A | | N/A | |
South Dakota | | 2,793 | | 5,846 | | 98 | | 131 | | N/A | | N/A | |
Wholesale Electric | | $ | 21,683 | | $ | 5,846 | | 397 | | 131 | | N/A | | N/A | |
| | | | | | | | | | | | | | | | | |
| | 2009 as compared with: | |
Cooling Degree-Days | | 2008 | | Historic Average | |
Montana | | 9% colder | | 27% colder | |
South Dakota | | 132% warmer | | 38% colder | |
NorthWestern Reports Second Quarter 2009 Financial Results
July 29, 2009
Page 11
NORTHWESTERN CORPORATION
REGULATED NATURAL GAS SEGMENT
Three Months Ended June 30, 2009
(Unaudited)
| | Results | |
| | 2009 | | 2008 | | Change | | % Change | |
| | (in millions) | |
Retail revenue | | $ | 50.4 | | $ | 78.5 | | $ | (28.1 | ) | (35.8 | )% |
Wholesale and other | | 10.9 | | 2.0 | | 8.9 | | 445.0 | |
Total Revenues | | 61.3 | | 80.5 | | (19.2 | ) | (23.9 | ) |
Total Cost of Sales | | 32.8 | | 49.9 | | (17.1 | ) | (34.3 | ) |
Gross Margin | | $ | 28.5 | | $ | 30.6 | | $ | (2.1 | ) | (6.9 | )% |
| | | | | | | | | | | | | | |
| | Revenues | | Volumes (Dkt) | | Customer Counts | |
| | 2009 | | 2008 | | 2009 | | 2008 | | 2009 | | 2008 | |
| | (in thousands) | | | | | | | | | |
Retail Gas | | | | | | | | | | | | | |
Montana | | $ | 21,150 | | $ | 33,953 | | 2,133 | | 2,523 | | 157,045 | | 155,546 | |
South Dakota | | 5,744 | | 8,100 | | 550 | | 589 | | 36,571 | | 36,498 | |
Nebraska | | 5,016 | | 6,979 | | 502 | | 526 | | 36,259 | | 36,344 | |
Residential | | 31,910 | | 49,032 | | 3,185 | | 3,638 | | 229,875 | | 228,388 | |
Montana | | 10,143 | | 16,671 | | 1,049 | | 1,234 | | 22,009 | | 21,770 | |
South Dakota | | 4,331 | | 6,243 | | 574 | | 542 | | 5,796 | | 5,760 | |
Nebraska | | 3,649 | | 5,946 | | 565 | | 596 | | 4,496 | | 4,519 | |
Commercial | | 18,123 | | 28,860 | | 2,188 | | 2,372 | | 32,301 | | 32,049 | |
Industrial | | 212 | | 249 | | 22 | | 16 | | 295 | | 305 | |
Other | | 193 | | 338 | | 22 | | 29 | | 142 | | 139 | |
Total Retail Gas | | $ | 50,438 | | $ | 78,479 | | 5,417 | | 6,055 | | 262,613 | | 260,881 | |
| | 2009 as compared with: | |
Heating Degree-Days | | 2008 | | Historic Average | |
Montana | | 15% warmer | | 5% warmer | |
South Dakota | | 2% warmer | | 7% colder | |
Nebraska | | 5% warmer | | 2% colder | |
NorthWestern Reports Second Quarter 2009 Financial Results
July 29, 2009
Page 12
REGULATED NATURAL GAS SEGMENT
Six Months Ended June 30, 2009
(Unaudited)
| | Results | |
| | 2009 | | 2008 | | Change | | % Change | |
| | (in millions) | |
Retail revenue | | $ | 194.9 | | $ | 230.4 | | $ | (35.5 | ) | (15.4 | )% |
Wholesale and other | | 25.2 | | 21.8 | | 3.4 | | 15.6 | |
Total Revenues | | 220.1 | | 252.2 | | (32.1 | ) | (12.7 | ) |
Total Cost of Sales | | 141.7 | | 171.2 | | (29.5 | ) | (17.2 | ) |
Gross Margin | | $ | 78.4 | | $ | 81.0 | | $ | (2.6 | ) | (3.2 | )% |
| | | | | | | | | | | | | | |
| | Revenues | | Volumes (Dkt) | | Customer Counts | |
| | 2009 | | 2008 | | 2009 | | 2008 | | 2009 | | 2008 | |
| | (in thousands) | | | | | | | | | |
Retail Gas | | | | | | | | | | | | | |
Montana | | $ | 76,674 | | $ | 94,697 | | 7,516 | | 8,091 | | 157,220 | | 155,652 | |
South Dakota | | 24,433 | | 26,788 | | 2,127 | | 2,196 | | 36,838 | | 36,706 | |
Nebraska | | 20,459 | | 22,146 | | 1,817 | | 1,931 | | 36,536 | | 36,616 | |
Residential | | 121,566 | | 143,631 | | 11,460 | | 12,218 | | 230,594 | | 228,974 | |
Montana | | 38,413 | | 46,936 | | 3,785 | | 3,991 | | 22,027 | | 21,728 | |
South Dakota | | 18,627 | | 20,177 | | 2,070 | | 1,920 | | 5,841 | | 5,799 | |
Nebraska | | 14,592 | | 17,257 | | 1,796 | | 1,880 | | 4,539 | | 4,556 | |
Commercial | | 71,632 | | 84,370 | | 7,651 | | 7,791 | | 32,407 | | 32,083 | |
Industrial | | 1,015 | | 1,537 | | 102 | | 136 | | 297 | | 306 | |
Other | | 669 | | 843 | | 74 | | 82 | | 142 | | 139 | |
Total Retail Gas | | $ | 194,882 | | $ | 230,381 | | 19,287 | | 20,227 | | 263,440 | | 261,502 | |
| | | | | | | | | | | | | | | | |
| | 2009 as compared with: | |
Heating Degree-Days | | 2008 | | Historic Average | |
Montana | | 6% warmer | | 3% warmer | |
South Dakota | | Remained flat | | 5% colder | |
Nebraska | | 7% warmer | | 2% warmer | |
NorthWestern Reports Second Quarter 2009 Financial Results
July 29, 2009
Page 13
NORTHWESTERN CORPORATION
SEGMENT INFORMATION
Three Months Ended June 30, 2009
(Unaudited)
(in thousands)
Three Months Ended | | Regulated | | | | | | | |
June 30, 2009 | | Electric | | Gas | | Other | | Eliminations | | Total | |
Operating revenues | | $ | 173,463 | | $ | 61,330 | | $ | 1,306 | | $ | (386 | ) | $ | 235,713 | |
Cost of sales | | 71,623 | | 32,842 | | 2,375 | | — | | 106,840 | |
Gross margin | | 101,840 | | 28,488 | | (1,069 | ) | (386 | ) | 128,873 | |
Operating, general and administrative | | 44,763 | | 19,290 | | (2,769 | ) | (386 | ) | 60,898 | |
Property and other taxes | | 13,065 | | 5,150 | | 31 | | — | | 18,246 | |
Depreciation | | 17,951 | | 4,301 | | 8 | | — | | 22,260 | |
Operating income (loss) | | 26,061 | | (253 | ) | 1,661 | | — | | 27,469 | |
Interest expense | | (13,757 | ) | (3,317 | ) | (928 | ) | — | | (18,002 | ) |
Other income (expense) | | 182 | | (12 | ) | 28 | | — | | 198 | |
Income tax (expense) benefit | | (4,789 | ) | 1,353 | | (131 | ) | — | | (3,567 | ) |
Net income (loss) | | $ | 7,697 | | $ | (2,229 | ) | $ | 630 | | $ | — | | | 6,098 | |
Three months ended, | | Regulated | | Unregulated | | | | | | | |
June 30, 2008 | | Electric | | Gas | | Electric | | Other | | Eliminations | | Total | |
Operating revenues | | $ | 178,967 | | $ | 80,531 | | $ | 16,569 | | $ | 8,653 | | $ | (8,214 | ) | $ | 276,506 | |
Cost of sales | | 87,196 | | 49,885 | | 11,624 | | 8,395 | | (7,746 | ) | 149,354 | |
Gross margin | | 91,771 | | 30,646 | | 4,945 | | 258 | | (468 | ) | 127,152 | |
Operating, general and administrative | | 34,503 | | 15,735 | | 3,219 | | 877 | | (468 | ) | 53,866 | |
Property and other taxes | | 14,338 | | 5,484 | | 715 | | 3 | | — | | 20,540 | |
Depreciation | | 15,392 | | 4,001 | | 1,823 | | 9 | | — | | 21,225 | |
Operating income (loss) | | 27,538 | | 5,426 | | (812 | ) | (631 | ) | — | | 31,521 | |
Interest expense | | (9,201 | ) | (3,286 | ) | (2,993 | ) | (368 | ) | — | | (15,848 | ) |
Other income (expense) | | 376 | | 281 | | 119 | | (937 | ) | — | | (161 | ) |
Income tax (expense) benefit | | (6,646 | ) | (873 | ) | 1,561 | | (51 | ) | — | | (6,009 | ) |
Net income (loss) | | $ | 12,067 | | $ | 1,548 | | $ | (2,125 | ) | $ | (1,987 | ) | $ | — | | $ | 9,503 | |
NorthWestern Reports Second Quarter 2009 Financial Results
July 29, 2009
Page 14
NORTHWESTERN CORPORATION
SEGMENT RESULTS
Six Months Ended June 30, 2009
(Unaudited)
Six Months Ended | | Regulated | | | | | | | |
June 30, 2009 | | Electric | | Gas | | Other | | Eliminations | | Total | |
Operating revenues | | $ | 381,450 | | $ | 220,133 | | $ | 5,957 | | $ | (924 | ) | $ | 606,616 | |
Cost of sales | | 166,372 | | 141,779 | | 6,699 | | — | | 314,850 | |
Gross margin | | 215,078 | | 78,354 | | (742 | ) | (924 | ) | 291,766 | |
Operating, general and administrative | | 87,741 | | 41,105 | | (1,605 | ) | (924 | ) | 126,317 | |
Property and other taxes | | 31,082 | | 11,378 | | 75 | | — | | 42,535 | |
Depreciation | | 36,342 | | 8,623 | | 17 | | — | | 44,982 | |
Operating income | | 59,913 | | 17,248 | | 771 | | — | | 77,932 | |
Interest expense | | (24,907 | ) | (6,385 | ) | (1,844 | ) | — | | (33,136 | ) |
Other income | | 473 | | 255 | | 61 | | — | | 789 | |
Income tax (expense) benefit | | (12,855 | ) | (4,123 | ) | 304 | | — | | (16,674 | ) |
Net income (loss) | | $ | 22,624 | | $ | 6,995 | | $ | (708 | ) | $ | — | | | 28,911 | |
Six months ended, | | Regulated | | Unregulated | | | | | | | |
June 30, 2008 | | Electric | | Gas | | Electric | | Other | | Eliminations | | Total | |
Operating revenues | | $ | 375,586 | | $ | 252,174 | | $ | 36,973 | | $ | 16,575 | | $ | (18,827 | ) | $ | 662,481 | |
Cost of sales | | 190,251 | | 171,193 | | 18,656 | | 16,159 | | (17,821 | ) | 378,438 | |
Gross margin | | 185,335 | | 80,981 | | 18,317 | | 416 | | (1,006 | ) | 284,043 | |
Operating, general and administrative | | 69,873 | | 33,659 | | 6,896 | | 4,515 | | (1,006 | ) | 113,937 | |
Property and other taxes | | 30,767 | | 11,812 | | 1,594 | | 7 | | — | | 44,180 | |
Depreciation | | 30,787 | | 7,884 | | 3,628 | | 17 | | — | | 42,316 | |
Operating income (loss) | | 53,908 | | 27,626 | | 6,199 | | (4,123 | ) | — | | 83,610 | |
Interest expense | | (18,459 | ) | (6,485 | ) | (6,169 | ) | (736 | ) | — | | (31,849 | ) |
Other income (expense) | | 585 | | 559 | | 132 | | (854 | ) | — | | 422 | |
Income tax (expense) benefit | | (12,333 | ) | (8,163 | ) | (154 | ) | 1,421 | | — | | (19,229 | ) |
Net income (loss) | | $ | 23,701 | | $ | 13,537 | | $ | 8 | | $ | (4,292 | ) | $ | — | | $ | 32,954 | |
