OTTR - Earnings call 4 2023 | Otter Tail Corporation

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Operator

Good morning, and welcome to Otter Tail Corporation's 2023 Earnings Conference Call. Today's call is being recorded.

We will hold a question-and-answer session after the prepared remarks. I will now turn the call over to the company for opening comments.

Beth Eiken

Good morning, everyone, and welcome to our 2023 earnings conference call. Eiken Otter Beth of Corporation's is Relations. Investor name and Tail I'm Manager My announced fourth our financial we night, Last XXXX results. quarter annual and

available the we and will be Our to Corporation's this on our ottertail.com. and Wahlund, statements release today.With available course are recording Otter on me Chuck Vice that later President Todd are remind on A call complete forward-looking at today our and this slides want of website Tail website I call and CFO.Before be earnings CEO; President call accompanying begin, during Otter of Tail we making this will you Corporation's the call. MacFarlane,

to results represent those As current events. expectations views risks noted to presented which here. and subject future and cause may differ Slide on uncertainties these from actual statements our of are X, They

any undue Commission, about detail in any be Exchange and filings placing these please duty our to to you described information, Tail in forward-looking reliance new President So Otter to are forward-looking or more Otter review. over Mr. disclaims events, CEO, MacFarlane. call statements.Our which revise Chuck encourage on Tail or and developments the due we will Securities statements the advised future statements otherwise.I of with Corporation's our to now update turn Corporation

Chuck MacFarlane

decreased savings. Corporation our earnings Slide $X, cost significant Tail Beth. across all Good Otter performance I as X well begin driven segments We to record year-end of per XXXX generated annual share by as as my in refer results. XXXX, you, Thank on financial call.Please higher morning and our setting the XXXX. welcome of earnings year diluted corporate earnings strong comments our earnings earnings to $X.XX expectations delivered commercial increased from of the and exceeding Plastics lower Electric modestly decrease costs earnings rate-based sales, by XXXX, primarily and set Manufacturing recovery in increased due sales segment record X%, to year.The significantly pension investments. primarily original and segment driven volume. of segment from the industrial beating last our X% for

the Our earned moment, investments corporate more for discussion over growth compounded by with financial flows our in shows by results expectations rate will few our and in generated earnings the generated extraordinary of years, few a over In of due provide XXXX short-term annual cash X the our share produced last Plastics impact generated annual share a our results nearly without the a significant X-year well returns center per growth compounded detailed without the impact per years. funded in Todd earnings the Plastics we our as 'XX cost segment. XX%. to rate the as XXXX of Even earnings.Slide segment last of on our earnings

approximately Power jumps included, increasingly energy Slide Tail Otter committed of to XX%.Turning a our X, future the to this affordable Plastics maintaining is With reliable to segment customers. electric carbon transitioning clean and while service and to impact to lower

forecast solar changing and market to we of dispatch reduction facility.Despite our near-term higher initiatives, higher including taking co-owned natural placing into footprint, Lake retiring and our Wind and plant We to service initiatives undertaken our in Hoot our years gas carbon targets our in than conditions, have including these and facilities. coal modified recent response Center our Lake prices reduce Merricourt Energy Hoot coal carbon originally constructing numerous levels

act examples reduce upon in community. people, from provides XXXX XXXX, levels to energy own that on XXXX, our and generation by Our resources which XX% focusing by X by generation by values, few way of XX% carbon XX% from from resources owned reduction renewable we carbon reduce carbon from our our owned targets and safety, are and emissions generation by levels contract is updated XXXX.Slide to XXXX the to emissions a

overview XX spending share Power investment our our of to live.Slide million Tail team next a the includes X provides proud members work expected plan. to in improved record rate-based the the an with our planning updated XXXX, provide period, metering annual communities In lays and we and infrastructure, period into advanced the summarizes response a total Otter X.X%. customers' that and Advanced beyond. are XX which nearly necessary foundations strengthen We period produce rate-based of is approximately Otter ratio.I'll The several a communication, Slide gave the now few growth into $X.X growth Power's million. within earnings billion infrastructure earnings. $X.X improves details metering project previous in over Power's growth Otter and one-to-one to translating has existing experience. X-year X-year X-year $XX capital of converted at for updated outage groundwork capital Tail for rate-based AMI, plan or Tail growth a on investment X-year which average strong projects of

and and understand data use to allowing energy is customers. better energy systems, to Additionally, options infrastructure and offer the us peak to integrate cost-saving able

bills, continued generation plan. Tail transmission and Tail XXX X project X XX% qualifies with projects, hubs, We XX capacity upgrade XXX,XXX completing demonstrating savings.Turning more expected transmission Tranche across customer X an believe technology-enabled rotors legacy to adding anticipated for Inflation XX, on this equivalent factor. Tranche long-range we blades new Act under the Power's credits Slide complete, to existing project Otter This of XXXX. the the and XX and will Once of passage of production service Power commenced territory in renewed wind our megawatts is be includes project expenses to X the our investment farms are approximately wind $XXX Otter this and anticipate repowering million South-Alexandria-Big MISO's lower is Stone towers. Jamestown-Ellendale meters have focus through co-own targeting projects. to We the Oaks a tax will with project to and investment Reduction which than our commitment wind with of summarizes the to reduce customer Big affordability.Slide operating replacing kV

is in the ensuring these focused we projects and very to investment development have coordinating to timely have footprint. XX% to our our for our million be impact investments across recovery with investment Midwest on our these on of co-owners. are recovery, These total, limited team projects project the a Both of progress estimate complex the projects are customer capital as expected before capital construction in occur capital with investment.In allocated entire approximately FERC approval $XXX Our MISO they work XXXX. retail rates

to Our developments mid in be potential at Tranche regarding MISO Tranche approved projects transmission X sometime projects. MISO will team X indicate continues to continues monitor XXXX.

long-range we interconnection these capital portfolio U.S. the Energy. with million X plan, to Xcel estimates The any to updated for projects.The are projects, which available the interconnection MISO to opportunities of not the X-year estimated queue projects.In joint projects XX% investment future include or MISO we transmission one of Minnesota of addition Department queue to Energy the U.S. to and Tranche co-develop expecting on partnered of focused $XXX applied scene. transmission for plan or While Power the backlog MISO does along funding cost targeted Commerce, of Southwest Energy projects, expect the of SPP SPP, X of Department our of awarded behalf through support some to Department SPP, the from JTIQ of investments and opportunities Pool, potential arising on develop investment MISO's these improving

XX% of FERC, below approval eventual national still opportunity, regional well regional planning about potential below residential falls optimistic of In time summarizes average.Slide consistently national averages, outcome Power [ safe, electric Otter XXXX. to we X key in even XXXX, on While the in Power's during our the our investment period.Turning opportunities Otter rates X-year into outside support while the projects Otter specifically, which placed reliable, and regulatory top and average investments our recovery to for service. capital the significant needs identifying of Tail's are to remains matters From continue ] these XX% electric XXXX investment one Tail from and Otter the rates below we XXXX, currently service to XX which (sic) affordability priorities. of focus XX, to Power's capital Tail increasingly were the clean Tail have remained a Slide customers,

our serve.Our request its starting Minnesota resources the of may lead Minnesota only in generation of as in of facility operate Dakota plan modify This which the by in of and our needed. Station to directly additional needs emissions wind December portion of preserving designate in Otter Tail a energy filing would rate submitted supplemental jurisdiction our to Commission, XX, filing, an proposal greenhouse as the Minnesota this Coyote customers, limited a resources solar on meet requests resource addition customers. an The Coyote Utilities while Station updated preferred if to Next, provide output additional investments new assigning in for In gas our approved as situations the the more the jurisdiction resource plan for This Slide XXXX. resource of Power we that method each plan to and a new meet update adding is December of Commission available to case.Turning is plan give in Minnesota will our Public emergency North XXXX. I and our customers generation modeling our will certain and expected flexibility supplemental to outlined resource the portion reliability and detailed new Minnesota integrated the needs outlined Minnesota our filing, maximum includes we reduce to single to included methodology. customers

on X%.Turning an of approved December, equity interim requested In of rates case to our XXXX. for project we the is will complete Service Customers XX.X%. to In Slide the Commission case IRP Public X.X% general increased resource revenues expect filing, ROE on X-year and expect by progressing BTD-Georgia proposed clarity in $XX net million or see X, with we additions to of our the rate We Dakota on well increase our average rate Service XX.X% effect in approximately our rate Commission XXXX. an November project approximately of XXXX.Turning segment on to layer since XX, in actions a following interim with the North Dakota Service taking first Slide XXXX. Manufacturing related filed request regulatory based net expansion Public a we time and North January on increase early in XX, Public our the XXXX,

win our add many soften serves existing end Looking we to continue in to value. Slide this look XX, manufacturing us our to customers on Despite of softness, market with XXXX. to they markets expect the we end work segment as additional to outlook

garden, reduced Over XXXX patterns.Slide customers decreased markets, maintain to construction BTD our OEM to be or end XX% to seasonal awarded to major existing levels outlook and and and down however, market outlooks.With X for to works as returning years, healthy channel Power softer an to scarcity us inventory to higher past Plastics normal strong.The agricultural to end to recreational remains interest the recreational to are and revenue which continues as should buying and through segment. as the have forecasting garden customers market to by and The in XXXX grow continues of market rates. inventory stable demand early and with compared XX are come consumer with overview are construction lower vehicle response allow XXXX levels. inflation the sales largely to and inventory agriculture normalized markets Plastics X% a be and scheduled The vehicle, in programs provides in in in we year. been lawn concerns. impacted dealer purchased be this XXXX the relatively end markets XXXX discretionary as to the has lawn even T.O. generation, end continue for volumes their pre-pandemic response end be horticulture spending

million business on in earnings from strong compared project as rapidly more X% continues continues decline pipe and of Slide capitalize highlights were XXXX our to results industry fell is as The produce reached of costs project XXXX.The and cost compared underway sales XX the PVC favorable the PVC margins sales improvement to site input pipe price sales plastics historical in extraordinary Vinyltech pricing. XXXX, capacity Plastics higher price conditions other or we While approximately by from our Profit XX PVC levels. historic pre-pandemic slightly financial than resin of to in and resin costs expansion results PVC pipe. and XXXX increase declined pounds. highs steadily to to continues and

bring capacity the at We half expect this second of approximately to total of a XXXX new in $XX cost online million.

operational pounds expectations are planning to to we our become provide XX add for XXXX. 'XX Additionally, in it expected and over results Todd is financial fully commentary million on should add to and additional line our XXXX.I'll to early to as turn Vinyltech, another well which now

Todd Wahlund

incremental good is dividend We share and this year. financial annual you, being overview normal beating diluted provide buying additional dividend.I another record with customers reduce declined a reduction and results. by from costs partially customers. awarded of earnings to plan segment an from post-retirement maintenance earnings BTD and increased $XXX,XXX increase last dividends pension for along $X.X horticulture industrial and marked in remarkable XXXX. a of our year the Thank volumes sales operating higher last XXXX share, volumes the XXth will announced driven to record-breaking unfavorable was XXXX, increased per other approximately markets by within set to XXXX, to increase, by Partially expenses increased Tail. and to Earlier of Chuck, T.O. their seasonal well of industrial recovery Otter paying Sales driven X.X% earnings These the Plastic earnings as the built-up morning, X% $X.XX XXXX year now XXXX over and rate-based XXXX approximately per weather.Manufacturing volumes as existing which delivered this as with or year market for levels Electric construction, offset Please on Slide sales, previously compared the XXXX more XX. X% offsetting commercial patterns. segment inventory investments. manufacturing compared we agriculture annual $X, impact also are of end compared our month, end XXXX million returned and everyone.XXXX to expenses increased the in or and follow the in work of indicated as our shareholders. consecutive work

were decreased response decrease was million cost businesses in decrease to XXXX material Manufacturing primarily in inflation.Plastics to distributor driven $X.X driven approximately a The by XXXX as higher XXXX. and by non-steel levels prices offset their cost softer volumes in to worked to or to half uncertainty supply earnings and profit X% spread. sales end-market from destock and The gross in chain previous of worked Distributors demand. years of after the by the levels in profit first in sales largely inventory to or Our sales partially higher up efforts market during XXXX, inventory volumes management segment response in adjust the building decline labor XXXX compared segment resin reduce price The their by margins challenges.Gross margins. driven inventory was sales

as corporate last to funded balance primarily driven significant our in the XXXX, Ratings our an as on during equity to and compared on future XX, as sheet as our with we While position our declined the and sheet.Turning Corporation enviable balance Otter by December also sales $X.XX of and Fitch in XX% our our net anticipated cash segment elevated in credit generated unprecedented earnings the highs reached of recent XXXX.With also in corporate Plastics Plastics XXXX per flows our compared prices XX, mix to The to investments compared and long-term they from are deviates XX, XXXX, in corporate long-term XX% diversified $X.XX, mix as sheet opportunities million flow costs. steadily elevated consolidated remain generated of as of both to was of Electric normal Corporate in historic contributed XXXX, the of and and XXXX This of December XXXX cash which short-term has to approximately ending XX% from $XX.X close of continued response share approximately mix to earnings segment. costs. compared lower view Tail supporting levels, of and business to for strengthen in earnings XXXX Otter year we decreased by in from to returns model to non-Electric investments receded over upgraded decline. our costs the XX.X% Slide a December free XXXX assumes to earnings an and Manufacturing and by XX.X% pipe strengthened employee XXXX, XX, businesses higher healthcare initiating XXXX the diluted and as PVC earnings Power level helped growth metrics, earned XX% turning by to segment this beyond.Looking years.Market-based our have Slide Further, capable expected XXXX XX, our to balance years of claims anticipate XXXX. are remain range of and earnings we Electric our of guidance XX.X% gains from X layer our segments, Tail

partially due from the segment we of a increase eventual interim sales $XX by continuing costs due project favorable volumes, and North product trend higher between level XXXX guidance XXXX.Our and earnings higher expected higher X% productivity, depreciation general at to increase For expenses, offset interest pressures and resin to are case maintenance an resulting and $XX recovery costs from and forecasted throughout the of and by XXXX lower improved to prices normal X% earnings spreads expected Plastics. and mix, into the BTD base, Plastics anticipated lower product average from XXXX sales earnings rate downward pricing the filed operating an partially revenues occurring T.O. million to from earnings segment, manufacturing in due to X.X% in of and assumptions manufacturing, at expense.Manufacturing increase million generated Dakota offset returns Electric an by following is premised are rate on levels segment XXXX segment.

to in XXXX existing increase modestly growth XXXX BTD with due customers compared despite expect softness. volumes as to We continued end-market sales to

members throughout was and BTD team on XXXX, XXX year. added very the focused in new hiring Additionally,

and in compression. retain XXXX. train throughout to levels in gain compared the of year, the segment hiring Our to see current margin assumes pipe experience.Plastics decline gains as and shifted continue earnings XXXX PVC This our to as has new employees expected causing decrease will from focus are productivity expect from XXXX more to price sales to

the well investment, annual the compounded lower Slide beyond Power, rate customers policies of execute next opportunities period resulting at continues its insurance our volumes years. compensation by base an this growth XXXX provides patterns updated believe we Otter on plan, investment an returned earnings expect low. X-year spending plan, and incentive previous market-based to normal corporate X-year includes issuing their XX We next included keeping In Power basis expect Slide which solar partially destocking finance on and short-term growth life plan. increase for gains to X-year debt summary Tail margin as utility impacted expenses of in and the Tail growth compression We on X-year corporate-owned driver this lower a we X capital partially sales growth in detail the transmission well financing rates a project to on resulting for to which compared through by capital on as our to volumes. investments.Our plans X.X% customer sales previous more to be has order over while customers plan, as electric Relative X.X%.Our Otter costs XXXX.Lastly, higher rate health at our plan have buying on more plan offset and spending of more generation many in additional growth projected annual to in in self-insured with efforts, increase for associated our will due costs offset key increased is cash segment, earnings our XX. is Electric are a updated

earnings impact increased be have quarter debt we We the facility borrowings XXXX XXXX.Our our costs in with not $XX parent-level to retire expect risk. on XXXX. amounts outstanding largely not our and expect it continues in utility borrowing borrowings of The which to when any replace the and these on parent low facility do in exposure our relate of to replace primarily We drawn matures fully credit considered is the long-term the the million capital to projects, debt first to over long-term the have external growth.We as upon we generated access guidance.Additionally, in from who due needs meet no summarized the market investment on positioned period, fund few space to as of past utility look cash significant to us within deliver peers their the XX. amount differentiating our and our targets over years, XXXX will X-year equity feel well to of earnings to Slide well rate-based in guidance order as many our

Our capital we growth shareholder stakeholders significant produce to diversified serving serve this sizable We with business positioned return, to spending customers. new are so continues businesses plan investment and us allowing a to into well. additional model year future X-year that best for total our enter our support our

our now to ample strong are We position questions. growth to your are sheet, balance ratings.We investment-grade in excellent an take this support liquidity ready credit with and

Operator

[Operator Williams comes Shank & Instructions] Siebert with Our question the Ellinghaus line from first Chris of LLC. Company,

Christopher Ellinghaus

Chuck, of the going can progress about Minnesota, what you since firm do have the for IRP a date made been back? and has kind meeting? you talk And in

Chuck MacFarlane

Sure, Chris.

Minnesota and carbon-free So This a of about on and a then providing total will were the specifically we use. concept is to a jurisdiction. which we in our plan put December the other the we're in the owner other that on Dakotas one, facility, we 'XX, in XX% January coal new And plant, supplemental direct use of proposed some both hearing Coyote their parties was X in and do be utilities renewables owner. standard talking that planning, partial with our associated and meeting in, of parts: of assignment the not comments X, externalities had with

been on that probably under the or another comments historically, that load, will limit of and hearing dispatch days can a that MISO year. of would that attributable that. that's particular of April scheduled in maybe that an that they half have with will And afforded couple continued roughly customers come We X COX has we the Minnesota frame. the our in that would that allow a accreditation called in XX% sometime amount and on output capacity that in a we times emissions program but goes in plant May So put to Minnesota anticipate of time the a to and decision by extreme reliability

Christopher Ellinghaus

Okay. this into gave revised do But thoughts at year are business normal thoughts point? at us what have the point? your you on your visibility what outlook Great. is like. any some for Plastics You on What looks next this

Todd Wahlund

Chris, distributors, I And and contractors it the bought in that shortage. articulate curtailment they things pipe I on 'XX effectively. and would and tier scarcity distributors, And was 'XX, highway we our projects, we was mean, in up amounts, because they significant tried that the feel the were in and we there resin pipe. anything to belief those in put issue, that distributors would we destock simply think levels, had at end-use and distributor as the these those a XXXX, both sewer on sell contractor to to other in distributors, tax a major script, is in need work to which projects, that turn residential to water sell

see you good pretty pretty is pace XX. volume. down Slide which good million, pipe X.X from we've And a volumes new of that really back so level ground when got out we put we years go on housing in it inventory channels the a is at the maintain has prior, up 'XX continue on if as levels start will back, to a effectively. the lot And At that few level, that a look in from believe we been other but

go know So that's 'XX helpful, we volume if from I in 'XX but up to anticipate don't

Christopher Ellinghaus

above be rate the CAGR end you you in of base sort that grown upper absent Okay. thinking pointing X% were linearly. out that we point? at earnings variability for point? or range at this base future, to your rate of on that have Have you're Chuck, this thoughts your X% Plastics pretty kind and new you're where of in of shouldn't any the With at got

Chuck MacFarlane

earnings do past we conversion have into cases. costs there's rate Sure, a we that that, to Chris. the think Well, pretty be we us a difficult as We base the concern push will seen growth. level. our more growth have rate a over forward. little of of point go will tend inflation historically, that did little rate the O&M in It bit now the And made below good base we've growth additional a more would also period earnings require

Christopher Ellinghaus

Okay. at the on One simple you one, cash the end year? did last where of stand

Todd Wahlund

$XXX We just over million. were

Christopher Ellinghaus

story as I of you earnings. Is the CapEx, be part those sort for earnings interest part will that you'll some there? extra of suppose, your growth cash also utilize of lose thinking of utility that

Todd Wahlund

That we financing needs. is mean equity don't have any correct. I

we to our equity maintain structure would capital to So to for need OTP, some provide infusions that. maintain

that reduce Tail at capital cash our So Otter or investments our would Corporation.

Operator

line Russo Sidoti. Our next with of question comes from the Brian

Brian Russo

yet? added the on Just investments I appreciate on CapEx X-year Is the supplemental utility. the information IRP. the IRP supplemental the included in

Todd Wahlund

is CapEx the we've the what That's part plan. wind X in our we X-year Brian, the the years plan repowers. got for in So of early have

have portion solar do the plan. X-year also of a We the in investment

is have small is additional then out on-site period. Our in billion. time 'XX-'XX that is the currently the Astoria the XXXX time period, that there there portion in $X.X win And we fuel in a not that in

Brian Russo

Got Okay. it.

increase, versus investments kind So incremental just driving of where IRP the there is is forward $XXX prior move that and million projects as mostly the supplemental scenario you pick transmission the utility IRP? that is this a MISO up? those year a investments Or

Todd Wahlund

Yes.

transmission in also in spend. then So versus MISO we've year addition the of the where the got the billion solar the a additional little primarily the bringing more $X.X $X.X previous that XXXX, by plan and driven is billion

Brian Russo

why on to XXXX Great. utility X% growth growth EPS a rate to that rate versus X.X%? Okay. the with of And the scenario Or growth. something base there the is Is that? question that discussed just X% driving the in response forecasting in X% else you accelerated growth base you're

Todd Wahlund

to the long X we on that whether closer to variations or have just some X. be overall, say, tend because timing over term, of I Yes. recovery. would year, do We be to weather by it

the term. to I of ratio is go a over X% by long X:X we the the driven expect just factors. number And closer be would we So as would

Brian Russo

with Okay. Great. below Coyote well January dispatch just past this curious, temperatures. plant average And coal was the

Chuck MacFarlane

at Yes. the Brian, is dispatched all Coyote a high time. level fairly

Brian Russo

And Okay. Plastics. Understood. to switching

versus, So $XX million of half $XX that the the capacity to year? prior million. to second expansion new earnings this Vinyltech your I Does million of the earnings think, of include $XX normalized $XX normalized million

Chuck MacFarlane

That as and the X as at volume the and expansions X our the within the Vinyltech. Phase does includes Exact both spreads projections projection resin Phase volume include expansion. forecasted and well

Brian Russo

Okay. Got it.

that's Plastics to and million utility of then XX-XX included, normalized the in mix, $XX on the $XX regulated That's earnings million correct? the earnings So are XX%. where

Chuck MacFarlane

That is correct.

Brian Russo

do you XXXX? through kind earnings XXXX. will margins PVC given year Or the And and that year-end into think full for prices on might trajectory, realized that XXXX stay be normalized conveying elevated of you're just of

Todd Wahlund

At point, we spread see the and XXXX. this decline into 'XX gradual Yes. in over the

realize normal So current wouldn't ultimately, upon based projection, our XXXX. of we until that level earnings

is our in currently XXXX So elevated. projections

If Plastics at about million the million earnings for you in guidance, $X.XX. XXXX. be to of would midpoint $X.XX look would of about it be our $XX $XX

expect between 'XX. and we 'XX gradually So decline will it

Operator

from question Karp the Sophie of line with KeyBanc. next comes Our

Sophie Karp

X. on Congrats the I results. have

are Would of replace beneficial your question lead to what EPA, I opinion new on the I of to do PVC is, that the the next wonder business? pipe have any think kind odds in you shape? the And initiative if XX years. first The you have this taking be

Chuck MacFarlane

street, main just very issues are having at will system impact, upgrades, the from lines. that which service. lines. the funds an pipes of are of municipalities if overall is lead water little the a and lot water, service associated we at What lead you main that main, main $XX some some wastewater on about on do anticipate improvement. Chuck. this is We look EPA that pipe aged a the lot, the And impact to PVC the to will. homes think lines We do for most in But look laterals, replace service are in had in the we Sophie, service IIJA billion of the we see water of economics including not the on service

the that states made money yet. way in been actual not not A feeling is projects to has yet lot that Our has its allocated the yet. of

increase some but not it that, looking at we will in So the we're that as PVC anticipate major a support in out have years, volumes.

Sophie Karp

here. other my of lack is or, how remind CapEx riders, you I other regulatory trackers that as opposed through us like of to is your then your lag going was, with and cases? And mechanisms like it. much impressive regulatory Got lag question very Could rate just guess,

Todd Wahlund

X-year and only the riders actually recovered XX% it cases. Well, through plan, through about is is under to to be planned projected XX% be rate of

Sophie Karp

on? specifics are of territory, generation but in then describe a bit service could plan? your you your what understand to focusing open-ended and your we given you the comes distribution opportunities it. seeing attention But lastly, MISO the and kind guess Got And plans, of little of I the when you X-year distribution maybe an question, what transmission. it are

Todd Wahlund

billion, believe close So few spending replacements. of more the projected $XXX our We've distribution. million our or that's these $X.X $XXX continue last the and X distribution distribution is on upgrade over been to is capital I years, assets years. spending increasing million, significantly over to

Sophie Karp

mostly to just the existing And infrastructure? it's upgrades

Todd Wahlund

Upgrades and replacements.

Operator

Instructions] I to for no turn questions, call [Operator Chuck his remarks. back now closing will With over the additional

Chuck MacFarlane

our joining for call you your and interest Tail Corporation. Thank Otter in

the for believe long which model, with business I the our diversified well Over targets. opportunity achieve positioned our to financial term, enhanced provides returns we are

per increase We of for diluted expect of the and our X% compounded produce you long-term Thank our call. X% X% range in dividend growth to annually. joining to again to X% in earnings share to

forward with speaking quarter. out next If and questions, please you Investor to have any to look you Relations, reach we

Operator

today's conference call. your participation. for concludes This Thank you

now may You disconnect.

Otter Tail (OTTR) 13 Feb 242023 Q4 Earnings call transcript