<Page>
Exhibit 99.2
UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION
The following presents our unaudited pro forma combined financial
information as of September 30, 2001 and for the year ended December 31, 2000
and for the nine months ended September 30, 2001. The unaudited pro forma
combined statements of income for the year ended December 31, 2000 and the nine
months ended September 30, 2001 give effect to the following transactions as if
each transaction had occurred as of the beginning of the period presented and
the unaudited pro forma combined balance sheet as of September 30, 2001 gives
effect to the following transactions as if each transaction had occurred on
September 30, 2001:
- the sale of 3,680,000 shares of our common stock issued in October 2001
at $21.25 per share and the use of the net proceeds therefrom;
- the proposed sale of 4,000,000 shares of trust preferred securities,
assuming an offering of $100 million aggregate amount of securities and
assuming a dividend rate of 8-1/4% thereon and the use of the net proceeds
therefrom;
- our pending acquisition of the utility business of Montana Power (the
"MPC Utility"), which includes regulated electric and natural gas
distribution and transmission operations and certain unregulated,
energy-related businesses that provide products and services to
industrial, institutional and commercial customers, for a purchase price
of $1.1 billion, including the assumption of approximately $488 million
in existing debt and preferred stock of The Montana Power Company
("Montana Power"); and
- our anticipated initial financing of the acquisition of the MPC Utility,
assuming the equity purchase price is fully funded via an acquisition
facility and assuming interest rates on such facility as of December 6,
2001.
The unaudited pro forma combined financial information is based upon
currently available information and assumptions that our management believes are
reasonable. The unaudited pro forma combined financial information is prepared
for illustrative purposes only and is not necessarily indicative of the
operating results or financial condition of the company that would have occurred
had the transactions occurred at the periods presented, nor is the unaudited pro
forma combined financial information necessarily indicative of future operating
results or the financial position of the combined companies. Pro forma results
for the nine months ended September 30, 2001 are not necessarily indicative of
the results that may be expected for a full year.
You should read the following tables in conjunction with "Montana Power
Company Utility Unaudited Pro Forma Combined Condensed Financial Data"
included in Exhibit 99.3 hereto, the consolidated financial statements and
notes thereto of NorthWestern and the combined financial statements and notes
thereto of the Utility of The Montana Power Company included in Exhibit 99.1
hereto.
1
<Page>
NORTHWESTERN CORPORATION
UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME
(in thousands, except for per share amounts)
<Table>
<Caption>
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001
-----------------------------------------------
TRUST PREFERRED
NORTHWESTERN COMMON STOCK SECURITIES
CORPORATION OFFERING OFFERING
ACTUAL ADJUSTMENT(1) ADJUSTMENT(2)
------------ -------------- ---------------
OPERATING REVENUES........... $3,440,336
COST OF SALES................ 2,784,079
-----------
GROSS MARGIN................. 656,257
-----------
OPERATING EXPENSES:
Selling, general and
administrative
expenses................. 607,596
Depreciation and
amortization............. 91,300
-----------
698,896
-----------
OPERATING INCOME (LOSS)...... (42,639)
Interest expense............. (66,253) $1,325 $3,110
Investment income and
other...................... 4,130
----------- ---------- ----------
INCOME (LOSS) BEFORE INCOME
TAXES AND MINORITY
INTERESTS.................. (104,762) 1,325 3,110
Benefit (provision) for
income taxes............... 17,247 (517) 1,200
----------- ---------- ----------
INCOME (LOSS) BEFORE MINORITY
INTERESTS.................. (87,515) 808 4,310
Minority interests........... 126,956
----------- ---------- ----------
NET INCOME................... 39,441 808 4,310
Minority interest on
preferred securities of
subsidiary trust........... (4,950) (6,188)
Dividends on cumulative
preferred stock............ (144)
----------- ---------- ----------
EARNINGS ON COMMON STOCK..... $34,347 $808 $(1,878)
=========== ========== ==========
AVERAGE COMMON SHARES
OUTSTANDING................ 23,604 3,680
EARNINGS PER AVERAGE COMMON
SHARE
Basic...................... $1.46
Diluted.................... 1.45
<Caption>
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001
-----------------------------------------------------------
NORTHWESTERN NORTHWESTERN
PRO FORMA AS PRO FORMA AS
ADJUSTED FOR NORTHWESTERN FURTHER
COMMON STOCK INITIAL MPC ADJUSTED FOR
AND TRUST UTILITY MPC UTILITY
PREFERRED PRO FORMA ACQUISITION ACQUISITION
SECURITIES MPC UTILITY FINANCING AND
OFFERINGS ADJUSTMENT(3) ADJUSTMENT(4) FINANCING
------------ ------------- ------------- ------------
OPERATING REVENUES........... $3,440,336 $490,651 $3,930,987
COST OF SALES................ 2,784,079 248,172 3,032,251
----------- ---------- -----------
GROSS MARGIN................. 656,257 242,479 898,736
----------- ---------- -----------
OPERATING EXPENSES:
Selling, general and
administrative
expenses................. 607,596 124,617 732,213
Depreciation and
amortization............. 91,300 42,765 134,065
----------- ---------- -----------
698,896 167,382 866,278
----------- ---------- -----------
OPERATING INCOME (LOSS)...... (42,639) 75,097 32,458
Interest expense............. (61,818) (24,721) $(21,446) (107,985)
Investment income and
other...................... 4,130 1,707 5,837
----------- ---------- ---------- -----------
INCOME (LOSS) BEFORE INCOME
TAXES AND MINORITY
INTERESTS.................. (100,327) 52,083 (21,446) (69,690)
Benefit (provision) for
income taxes............... 17,930 (18,706) 8,364 7,588
----------- ---------- ---------- -----------
INCOME (LOSS) BEFORE MINORITY
INTERESTS.................. (82,397) 33,377 (13,082) (62,102)
Minority interests........... 126,956 126,956
----------- ---------- ---------- -----------
NET INCOME................... 44,559 33,377 (13,082) 64,854
Minority interest on
preferred securities of
subsidiary trust........... (11,138) (4,119) (15,257)
Dividends on cumulative
preferred stock............ (144) (144)
----------- ---------- ---------- -----------
EARNINGS ON COMMON STOCK..... $33,277 $29,258 $(13,082) $49,453
=========== ========== ========== ===========
AVERAGE COMMON SHARES
OUTSTANDING................ 27,284 27,284
EARNINGS PER AVERAGE COMMON
SHARE
Basic...................... $1.22 $1.81
Diluted.................... 1.21 1.81
</Table>
The accompanying notes are an integral part of these pro forma combined
financial statements
2
<Page>
NORTHWESTERN CORPORATION
UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME
(in thousands, except for per share amounts)
<Table>
<Caption>
FOR THE YEAR ENDED DECEMBER 31, 2000
----------------------------------------------------------------
NORTHWESTERN
PRO FORMA AS
ADJUSTED FOR
COMMON STOCK
TRUST PREFERRED AND
NORTHWESTERN COMMON STOCK SECURITIES TRUST PREFERRED
CORPORATION OFFERING OFFERING SECURITIES
ACTUAL ADJUSTMENT(1) ADJUSTMENT(2) OFFERINGS
------------ ------------- --------------- ---------------
OPERATING REVENUES............ $7,132,090 $7,132,090
COST OF SALES................. 6,295,675 6,295,675
----------- -----------
GROSS MARGIN.................. 836,415 836,415
----------- -----------
OPERATING EXPENSES:
Selling, general and
administrative expenses... 686,814 686,814
Depreciation and
amortization.............. 108,329 108,329
----------- -----------
795,143 795,143
----------- -----------
OPERATING INCOME (LOSS)....... 41,272 41,272
Interest expense.............. (77,207) $2,986 $7,095 (67,126)
Investment income and other... 8,981 8,981
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE INCOME
TAXES AND MINORITY
INTERESTS................... (26,954) 2,986 7,095 (16,873)
Benefit (provision) for income
taxes....................... 4,117 (1,165) 450 3,402
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE MINORITY
INTERESTS................... (22,837) 1,821 7,545 (13,471)
Minority interests............ 73,436 73,436
----------- ----------- ----------- -----------
INCOME BEFORE CUMULATIVE
EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE........ 50,599 1,821 7,545 59,965
Cumulative effect on change in
accounting principle, net of
tax and minority
interests................... (1,046) (1,046)
----------- ----------- ----------- -----------
NET INCOME.................... 49,553 1,821 7,545 58,919
Minority Interest on Preferred
Securities of Subsidiary
Trust....................... (6,601) (8,250) (14,851)
Dividends on Cumulative
Preferred Stock............. (191) (191)
----------- ----------- ----------- -----------
EARNINGS ON COMMON STOCK...... $42,761 $1,821 $(705) $43,877
=========== =========== =========== ===========
AVERAGE COMMON SHARES
OUTSTANDING................. 23,141 3,680 26,821
EARNINGS PER AVERAGE COMMON
SHARE
Basic before cumulative
effect...................... $1.89 $1.67
Cumulative effect of change
in accounting principle... (0.04) (0.04)
Basic....................... 1.85 1.63
Diluted before cumulative
effect.................... 1.87 1.65
Cumulative effect of change
in accounting principle... (0.04) (0.04)
Diluted..................... 1.83 1.61
<Caption>
FOR THE YEAR ENDED DECEMBER 31, 2000
--------------------------------------------
NORTHWESTERN
PRO FORMA
NORTHWESTERN AS FURTHER
INITIAL MPC ADJUSTED FOR
PRO FORMA UTILITY MPC UTILITY
MPC ACQUISITION ACQUISITION
UTILITY FINANCING AND
ADJUSTMENT(3) ADJUSTMENT(4) FINANCING
------------- ------------- ------------
OPERATING REVENUES............ $628,144 $7,760,234
COST OF SALES................. 319,505 6,615,180
---------- -----------
GROSS MARGIN.................. 308,639 1,145,054
---------- -----------
OPERATING EXPENSES:
Selling, general and
administrative expenses... 186,183 872,997
Depreciation and
amortization.............. 54,123 162,452
---------- -----------
240,306 1,035,449
---------- -----------
OPERATING INCOME (LOSS)....... 68,333 109,605
Interest expense.............. (35,880) $(28,595) (131,601)
Investment income and other... 14,481 23,462
---------- ---------- -----------
INCOME (LOSS) BEFORE INCOME
TAXES AND MINORITY
INTERESTS................... 46,934 (28,595) 1,466
Benefit (provision) for income
taxes....................... (16,162) 11,152 (1,608)
---------- ---------- -----------
INCOME (LOSS) BEFORE MINORITY
INTERESTS................... 30,772 (17,443) (142)
Minority interests............ 73,436
---------- ---------- -----------
INCOME BEFORE CUMULATIVE
EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE........ 30,772 (17,443) 73,294
Cumulative effect on change in
accounting principle, net of
tax and minority
interests................... (1,046)
---------- ---------- -----------
NET INCOME.................... 30,772 (17,443) 72,248
Minority Interest on Preferred
Securities of Subsidiary
Trust....................... (5,492) (20,343)
Dividends on Cumulative
Preferred Stock............. (191)
---------- ---------- -----------
EARNINGS ON COMMON STOCK...... $25,280 $(17,443) $51,714
========== ========== ===========
AVERAGE COMMON SHARES
OUTSTANDING................. 26,821
EARNINGS PER AVERAGE COMMON
SHARE
Basic before cumulative
effect...................... $1.97
Cumulative effect of change
in accounting principle... (0.04)
Basic....................... 1.93
Diluted before cumulative
effect.................... 1.94
Cumulative effect of change
in accounting principle... (0.04)
Diluted..................... 1.90
</Table>
The accompanying notes are an integral part of these pro forma combined
financial statements
3
<Page>
NORTHWESTERN CORPORATION
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
(in thousands)
<Table>
<Caption>
AT SEPTEMBER 30, 2001
----------------------------------------------------------------------------------
NORTHWESTERN
PRO FORMA AS
ADJUSTED FOR
COMMON STOCK
TRUST PREFERRED AND
NORTHWESTERN COMMON STOCK SECURITIES TRUST PREFERRED PRO FORMA
CORPORATION OFFERING OFFERING SECURITIES MPC UTILITY
ACTUAL ADJUSTMENT(5) ADJUSTMENT(6) OFFERINGS ADJUSTMENT(7)
------------ --------------- --------------- --------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents... $84,496 $30,072 $114,568 $6,504
Accounts receivable, net.... 388,243 388,243 54,439
Inventories................. 89,290 89,290 11,508
Other....................... 83,556 83,556 106,381
----------- ------------ ------------- -----------
645,585 30,072 675,657 178,832
----------- ------------ ------------- -----------
PROPERTY, PLANT AND EQUIPMENT,
NET......................... 806,236 806,236 1,092,178
GOODWILL AND OTHER INTANGIBLE
ASSETS, NET................. 994,721 994,721 7,561
OTHER ASSETS:
Investments................. 96,733 96,733 25,439
Other assets................ 80,009 $3,650 83,659 226,471
----------- ------------ ------------- -----------
176,742 3,650 180,392 251,910
----------- ------------ ------------ ------------- -----------
$2,623,284 $30,072 $3,650 $2,657,006 $1,530,481
=========== ============ ============ ============= ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES:
Current maturities of long-
term debt................. $5,000 $5,000 $3,399
Current maturities of long-
term debt--nonrecourse.... 106,522 106,522
Short-term debt............. 8,000 $(8,000)
Short-term debt of
subsidiaries--nonrecourse... 167,723 167,723
Accounts payable............ 269,002 269,002 37,162
Accrued expenses............ 226,195 226,195 133,556
----------- ------------ ------------- -----------
782,442 (8,000) 774,442 174,117
----------- ------------ ------------- -----------
LONG-TERM LIABILITIES:
Long-term debt.............. 586,350 (1,800) $(96,350) 488,200 419,601
Long-term debt of
subsidiaries--nonrecourse... 491,765 491,765
Deferred income taxes....... 46,663 46,663
Other noncurrent
liabilities............... 58,469 58,469 380,947
----------- ------------ ------------ ------------- -----------
1,183,247 (1,800) (96,350) 1,085,097 800,548
----------- ------------ ------------ ------------- -----------
MINORITY INTERESTS............ 234,552 (35,000) 199,552
PREFERRED STOCK, PREFERENCE
STOCK AND PREFERRED
SECURITIES:
Preferred stock--4 1/2%
series.................... 2,600 2,600
Redeemable preferred stock--
6 1/2% series............. 1,150 1,150
Preference stock............
Company obligated
manditorily redeemable
security of trust holding
solely parent
debentures................ 87,500 100,000 187,500 65,000
----------- ------------ ------------- -----------
91,250 100,000 191,250 65,000
----------- ------------ ------------- -----------
SHAREHOLDERS' EQUITY:
Common stock................ 41,502 6,440 47,942
Paid-in capital............. 172,954 68,432 241,386 490,816
Retained earnings........... 117,838 117,838
Accumulated other
comprehensive income...... (501) (501)
----------- ------------ ------------- -----------
331,793 74,872 406,665 490,816
----------- ------------ ------------ ------------- -----------
$2,623,284 $30,072 $3,650 $2,657,006 $1,530,481
=========== ============ ============ ============= ===========
<Caption>
AT SEPTEMBER 30, 2001
-------------------------------
NORTHWESTERN
NORTHWESTERN PRO FORMA AS
INITIAL MPC FURTHER
UTILITY ADJUSTED FOR
ACQUISITION MPC UTILITY
FINANCING ACQUISITION
ADJUSTMENT(8) AND FINANCING
-------------- --------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents... $121,072
Accounts receivable, net.... 442,682
Inventories................. 100,798
Other....................... 189,937
------------
854,489
------------
PROPERTY, PLANT AND EQUIPMENT,
NET......................... 1,898,414
GOODWILL AND OTHER INTANGIBLE
ASSETS, NET................. $111,184 1,113,466
OTHER ASSETS:
Investments................. 122,172
Other assets................ 310,130
------------ ------------
432,302
------------ ------------
$111,184 $4,298,671
============ ============
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES:
Current maturities of long-
term debt................. $8,399
Current maturities of long-
term debt--nonrecourse.... 106,522
Short-term debt............. --
Short-term debt of
subsidiaries--nonrecourse... 167,723
Accounts payable............ 306,164
Accrued expenses............ 359,751
------------
948,559
------------
LONG-TERM LIABILITIES:
Long-term debt.............. $602,000 1,509,801
Long-term debt of
subsidiaries--nonrecourse... 491,765
Deferred income taxes....... 46,663
Other noncurrent
liabilities............... 439,416
------------ ------------
602,000 2,487,645
------------ ------------
MINORITY INTERESTS............ 199,552
PREFERRED STOCK, PREFERENCE
STOCK AND PREFERRED
SECURITIES:
Preferred stock--4 1/2%
series.................... 2,600
Redeemable preferred stock--
6 1/2% series............. 1,150
Preference stock............
Company obligated
manditorily redeemable
security of trust holding
solely parent
debentures................ 252,500
------------
256,250
------------
SHAREHOLDERS' EQUITY:
Common stock................ 47,942
Paid-in capital............. (490,816) 241,386
Retained earnings........... 117,838
Accumulated other
comprehensive income...... (501)
------------ ------------
(490,816) 406,665
------------ ------------
$111,184 $4,298,671
============ ============
</Table>
The accompanying notes are an integral part of these pro forma combined
financial statements.
4
<Page>
NORTHWESTERN CORPORATION
NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL INFORMATION
The Unaudited Pro Forma Combined Financial Information is based on the following
assumptions:
(1) Reflects the receipt of $74.9 million net proceeds, after deducting offering
expenses, from the sale of 3,680,000 shares of common stock issued in
October 2001 at $21.25 per share and the application of the proceeds
therefrom. Approximately $35.0 million of these net proceeds were
contributed to NorthWestern's Blue Dot Services, Inc. subsidiary for the
redemption of certain preferred stock and common stock pursuant to existing
agreements, and the remainder was used for general corporate purposes,
including reducing short-term debt and amounts drawn under NorthWestern's
existing credit facility.
(2) Reflects the receipt of $96.4 million of net proceeds, after paying the
underwriting commission and the estimated offering expenses of approximately
$500,000, from the proposed sale of NorthWestern's trust preferred
securities, assuming an offering of 4,000,000 trust preferred securities
and assuming a dividend rate of 8-1/4% and the use of proceeds from the sale
for general corporate purposes and to repay a portion of the amounts
outstanding under NorthWestern's existing credit facility. A change of 1/8%
in interest rates on the trust preferred securities would increase or
decrease pre-tax interest expense by $125,000 per annum.
(3) Reflects the results of operations of the MPC Utility for a purchase price
of $1.1 billion, including the assumption of approximately $488 million in
existing Montana Power debt and preferred stock.
(4) Reflects NorthWestern's anticipated initial financing of the acquisition of
the MPC Utility. The initial financing assumes the equity purchase price is
fully funded via an acquisition facility and assuming interest rates on such
acquisition facility as of December 6, 2001. We currently intend to issue a
combination of long term debt and equity following the closing of the
acquisition of the MPC Utility to refinance the initial financing and
provide working capital. A change of 1/8% in interest rates would increase
or decrease pre-tax interest expense by $753,000 per annum.
(5) Reflects the receipt of $74.9 million of net proceeds, after deducting
offering expenses, from the sale of 3,680,000 shares of common stock
issued in October 2001 at $21.25 per share and the application of the
proceeds therefrom. Approximately $35.0 million of these net proceeds were
contributed to NorthWestern's Blue Dot Services, Inc. subsidiary for the
redemption of certain preferred stock and common stock pursuant to
existing agreements, and the remainder was used for general corporate
purposes, including reducing short-term debt and amounts drawn under
NorthWestern's existing credit facility.
(6) Reflects the receipt of $96.4 million of net proceeds, after paying the
underwriting commission and the estimated offering expenses of approximately
$500,000, from the proposed sale of NorthWestern's trust preferred
securities, assuming an offering of $100 million aggregate amount of trust
preferred securities and the use of proceeds from the sale for general
corporate purposes and to repay a portion of the amounts outstanding under
NorthWestern's existing credit facility.
(7) Reflects the balances of the MPC Utility. Purchase adjustments have been
made to the assets and liabilities of the MPC Utility to reflect the effect
of the pending acquisition accounted for under the purchase method of
accounting. Certain pro forma adjustments are based, in part, on the impact
of the terms and conditions of the Unit Purchase Agreement governing our
acquisition of the MPC Utility and we cannot assure you that such terms and
conditions will remain unchanged. Pro forma adjustments exclude certain cash
accounts representing excess proceeds from the MPC Utility's previous sale
of generation assets, which cash will be applied to reduce transition and
stranded costs under the jurisdiction of the MPSC and FERC.
(8) Reflects NorthWestern's anticipated initial financing of the acquisition of
the MPC Utility. We currently intend to issue a combination of long term
debt and equity following the closing of the acquisition of the MPC Utility
to refinance the acquisition term loan and provide working capital. Goodwill
will be recognized, representing the portion of the purchase price in excess
of the fair value of identified assets and liabilities. No amortization of
goodwill is included in the Unaudited Pro Forma Combined Financial
Information, as provided in Statement of Financial Accounting Standards
No. 142, "Goodwill and Other Intangible Assets," for business combinations
completed after June 30, 2001. The allocation of the purchase price will be
based on the fair value of identified assets and liabilities as of the date
the business combination is completed. Accordingly, goodwill will be
adjusted as a result of the determination of such fair value and thus will
differ from the amount reported in the Unaudited Pro Forma Combined
Condensed Balance Sheet. While we believe the historical assets and
liabilities approximate fair value, if we identify any intangible assets
separate from goodwill, they will be subject to amortization.
5