NorthWestern Energy Group, Inc. Q3 FY2024 earnings call

• GAAP diluted EPS for the quarter was $0.76, non-GAAP diluted EPS was $0.65.
• Revised 2024 non-GAAP EPS guidance to $3.32 to $3.47 due to delay in Montana interim rates.
• Reaffirmed long-term 5-year rate base and earnings per share growth rate targets of 4% to 6%.
• Dividend of $0.65 per share payable December 31, 2024.
• Yellowstone County Generating Station began serving customers in October 2024.
• U.S. Department of Energy awarded $700 million Grid Resilience and Innovation Partnership grant, with $21 million earmarked for NorthWestern's investment in Colstrip transmission system upgrades.
• Crystal Lail discussed financial performance, noting earnings growth due to rate review outcomes, transmission revenues, and income tax benefit, offset by higher insurance costs, depreciation, and interest. Income tax benefit of $7 million due to IRS final guidance on gas repairs, adjusting prior periods.
• Revising 2024 non-GAAP EPS guidance based on Montana interim rates delay, expecting interim rate relief in December. Capital plans unchanged, no equity needs expected.

No detailed breakdown of product segment financial performance with absolute terms and revenue contribution % provided in the transcript.

• Revised 2024 non-GAAP EPS guidance to $3.32 to $3.47 from original $3.42 to $3.62 due to Montana interim rates delay.
• Reaffirmed long-term 5-year rate base and earnings per share growth rate targets of 4% to 6%.
• Plan to provide 2025 guidance following outcome in Montana rate review.

• Delay in Montana interim rates impacting financial guidance.
• Increasing wildfire coverage costs affecting insurance.
• Regulatory uncertainties in rate reviews, especially in Montana.
• Impact of federal regulations like MATS on Colstrip Generating Station.

Q: Shar at Guggenheim asked about delays in Montana interim rates and confidence in December order, and upside opportunities.

A: Brian and Crystal discussed regulatory process, interim rate request details, and ongoing work on transmission and generation fronts.

Q: Chris Ellinghaus at Siebert Williams asked about interim rates, stock yield, North Plains Connector, and election impact.

A: Brian and Crystal talked about data requests, North Plains Connector status, and expected timing of interim rate docket.

Q: Nick Campanella at Barclays asked about FFO to debt trending and IRP timeline.

A: Crystal discussed FFO to debt impact of rate delays, and IRP plans for 2026.

Q: Brian Russo on for Julian at Jefferies asked about Colstrip and EPA MATS rules.

A: Brian discussed litigation, baghouse investment considerations, and federal election impact.

Q: Dylan at Ladenburg Thalman asked about Colstrip investment and election impact.

A: Brian talked about federal election impact and preliminary baghouse cost estimates.

Q: Anthony Crowdell at Mizuho asked about baghouse capital project certainty and capital plan flex.

A: Brian discussed need for commission support on Colstrip investment and impact of commission decisions on capital allocation.