Northwestern Energy Group Inc Q3 FY2025 earnings call

• Integrated Energy West natural gas assets acquisition. - Announced all-stock merger with Black Hills, filed joint applications for transaction approval in Montana, Nebraska, and South Dakota. - Filed tariff waiver request with MPSC for recovery of operating costs related to Avista Colstrip interest. - Submitted 131-megawatt natural gas generation project expedited study. - Declared dividend of $0.66 per share payable December 31, 2025. - Margin improvement: rate drove $0.35, customer usage $0.08, electric/gas transmission/transportation $0.05; offset by market sales impact and Montana property tax legislation. - Merger with Black Hills: filed filings in 3 states, working on S-4 and joint proxy statement, early transition planning, expected close in second half of 2026. - Data centers: 3 parties in high-level assessment, entered development agreements with some, others expected by year-end. - Colstrip transaction: acquired Avista and Puget interests to increase ownership, filed tariff waiver and PPA, expecting FERC approval for Puget portion.

For the quarter, GAAP diluted EPS was $0.62 per share, non-GAAP diluted EPS was $0.79 per share. Margin improvement was $0.52, with rate driving $0.35 of that, customer usage $0.08, and electric and gas transmission/transportation $0.05. Offsets included market sales impact in PCCAM and Montana property tax legislation detriments. Year-to-date, GAAP EPS was $2.22 vs $2.34 last year, non-GAAP was $2.41 vs $2.27 last year.

• Affirmed 2025 earnings guidance range of $3.53 to $3.65. - Expect to provide 2026 outlook during year-end call in February. - Merger with Black Hills expected to close in second half of 2026. - Capital plan roll forward and update expected on Q4 call in February.

• Regulatory uncertainty related to merger approvals. - Uncertainty in Montana rate review outcome. - Market risks associated with Colstrip facility operations and data center project progress.

Q: Could you clarify data center activity conversion from request to high-level assessment and timeline for converting high-level assessments to LOIs?

A: Data center queue count increased, net-net, high-level assessment count increased by 3. Can't give specific time, but at least one could move to LOI/development agreement soon.

Q: Pivoting to South Dakota, timeline for gas plant approval and how it flows into CapEx/rate base?

A: Submitted natural gas project study, received initial SPP feedback, expect transmission piece feedback in early 2026, will wait to include in capital plan until Q4 call/February refresh.