NorthWestern Reports 2024 Financial Results
NorthWestern Energy (NWE) reported strong financial results for 2024, with diluted GAAP EPS of $3.65, up from $3.22 in 2023. The company's adjusted non-GAAP EPS reached $3.40, compared to $3.27 in 2023. Net income increased to $224.1 million from $194.1 million in the previous year.
Key developments include: completion of the 175MW Yellowstone County Generating Station, announcement of a $2.7 billion 5-year capital plan (11% increase over prior plan), and agreements to acquire additional Colstrip Units 3 & 4 interests. The company increased its quarterly dividend by 1.5% to $0.66 per share and affirmed its 4-6% long-term EPS growth target.
Earnings were driven by rate review resolutions in Montana and South Dakota, higher electric transmission revenues, and income tax benefits, though partially offset by non-recoverable electric supply costs, mild weather, and increased insurance, depreciation, and interest expenses.
NorthWestern Energy (NWE) ha riportato risultati finanziari solidi per il 2024, con un utile per azione GAAP diluito di $3,65, in aumento rispetto a $3,22 nel 2023. L'utile per azione non-GAAP rettificato della società ha raggiunto $3,40, rispetto a $3,27 nel 2023. L'utile netto è aumentato a $224,1 milioni rispetto ai $194,1 milioni dell'anno precedente.
Sviluppi chiave includono: completamento della centrale di generazione Yellowstone County da 175MW, annuncio di un piano di capitali di $2,7 miliardi per 5 anni (aumento dell'11% rispetto al piano precedente) e accordi per acquisire interessi aggiuntivi nelle Unità 3 e 4 di Colstrip. La società ha aumentato il suo dividendo trimestrale dell'1,5% a $0,66 per azione e ha confermato il suo obiettivo di crescita dell'utile per azione a lungo termine del 4-6%.
I guadagni sono stati sostenuti da risoluzioni di revisione delle tariffe in Montana e South Dakota, maggiori ricavi dalla trasmissione elettrica e benefici fiscali, sebbene parzialmente compensati da costi di fornitura elettrica non recuperabili, clima mite e aumento delle spese per assicurazione, ammortamento e interessi.
NorthWestern Energy (NWE) reportó resultados financieros sólidos para 2024, con un EPS GAAP diluido de $3.65, un aumento desde $3.22 en 2023. El EPS no-GAAP ajustado de la compañía alcanzó $3.40, en comparación con $3.27 en 2023. El ingreso neto aumentó a $224.1 millones desde $194.1 millones en el año anterior.
Los desarrollos clave incluyen: la finalización de la Estación Generadora del Condado de Yellowstone de 175MW, el anuncio de un plan de capital de $2.7 mil millones a 5 años (un aumento del 11% sobre el plan anterior) y acuerdos para adquirir intereses adicionales en las Unidades 3 y 4 de Colstrip. La compañía incrementó su dividendo trimestral en un 1.5% a $0.66 por acción y reafirmó su objetivo de crecimiento del EPS a largo plazo del 4-6%.
Las ganancias fueron impulsadas por resoluciones de revisión de tarifas en Montana y Dakota del Sur, mayores ingresos por transmisión eléctrica y beneficios fiscales, aunque parcialmente compensadas por costos de suministro eléctrico no recuperables, clima templado y aumento de los gastos por seguros, depreciación e intereses.
NorthWestern Energy (NWE)는 2024년 강력한 재무 실적을 보고했으며, 희석된 GAAP 주당 순이익(EPS)은 $3.65로, 2023년의 $3.22에서 증가했습니다. 회사의 조정된 비GAAP EPS는 $3.40에 도달했으며, 이는 2023년의 $3.27과 비교됩니다. 순이익은 전년의 $194.1백만에서 $224.1백만으로 증가했습니다.
주요 개발 사항으로는: 175MW 옐로우스톤 카운티 발전소의 완공, 5년간 27억 달러 규모의 자본 계획 발표(이전 계획 대비 11% 증가) 및 콜스트립 유닛 3 및 4의 추가 지분 인수 계약이 포함됩니다. 회사는 분기 배당금을 1.5% 증가시켜 주당 $0.66로 하였으며, 장기 EPS 성장 목표를 4-6%로 확정했습니다.
수익은 몬태나와 사우스다코타의 요금 검토 해결, 전기 전송 수익 증가 및 소득세 혜택에 의해 증가했으나, 부분적으로는 회수 불가능한 전기 공급 비용, 온화한 날씨, 보험, 감가상각 및 이자 비용 증가로 상쇄되었습니다.
NorthWestern Energy (NWE) a annoncé de solides résultats financiers pour 2024, avec un BPA GAAP dilué de 3,65 $, en hausse par rapport à 3,22 $ en 2023. Le BPA non-GAAP ajusté de l'entreprise a atteint 3,40 $, contre 3,27 $ en 2023. Le revenu net a augmenté à 224,1 millions $ contre 194,1 millions $ l'année précédente.
Les développements clés incluent : l'achèvement de la centrale de production du comté de Yellowstone de 175 MW, l'annonce d'un plan d'investissement de 2,7 milliards de dollars sur 5 ans (augmentation de 11 % par rapport au plan précédent) et des accords pour acquérir des intérêts supplémentaires dans les unités 3 et 4 de Colstrip. L'entreprise a augmenté son dividende trimestriel de 1,5 % à 0,66 $ par action et a confirmé son objectif de croissance à long terme du BPA de 4 à 6 %.
Les bénéfices ont été soutenus par des résolutions de révision tarifaire dans le Montana et le Dakota du Sud, des revenus de transmission électrique plus élevés et des avantages fiscaux, bien qu'en partie compensés par des coûts de fourniture électrique non récupérables, un temps doux et une augmentation des dépenses d'assurance, d'amortissement et d'intérêts.
NorthWestern Energy (NWE) berichtete über starke Finanzergebnisse für 2024, mit einem verwässerten GAAP EPS von 3,65 $, ein Anstieg von 3,22 $ im Jahr 2023. Das bereinigte Non-GAAP EPS des Unternehmens erreichte 3,40 $, verglichen mit 3,27 $ im Jahr 2023. Der Nettogewinn stieg auf 224,1 Millionen $ von 194,1 Millionen $ im Vorjahr.
Wichtige Entwicklungen umfassen: den Abschluss des 175-MW Yellowstone County Kraftwerks, die Ankündigung eines 2,7 Milliarden Dollar großen Kapitalplans über 5 Jahre (11% Steigerung gegenüber dem vorherigen Plan) und Vereinbarungen zum Erwerb zusätzlicher Anteile an Colstrip Einheiten 3 und 4. Das Unternehmen erhöhte seine vierteljährliche Dividende um 1,5% auf 0,66 $ pro Aktie und bestätigte sein langfristiges EPS-Wachstumsziel von 4-6%.
Die Erträge wurden durch Tarifüberprüfungen in Montana und South Dakota, höhere Einnahmen aus der elektrischen Übertragung und Steuervorteile gestützt, jedoch teilweise durch nicht rückforderbare Kosten für die elektrische Versorgung, mildes Wetter und gestiegene Versicherungs-, Abschreibungs- und Zinsaufwendungen ausgeglichen.
- Net income increased 15.5% to $224.1 million in 2024 from $194.1 million in 2023
- Diluted GAAP EPS grew 13.4% to $3.65 from $3.22 year-over-year
- Announced $2.7 billion 5-year capital plan, representing 11% increase over prior plan
- Increased quarterly dividend by 1.5% to $0.66 per share
- Successfully completed 175MW Yellowstone County Generating Station
- Faced higher non-recoverable electric supply costs
- Increased insurance costs, depreciation, and interest expenses
- Experienced adverse impact from mild weather conditions
- Delay in interim rates implementation in Montana
Insights
NorthWestern Energy's 2024 financial results reflect robust operational execution and strategic positioning for future growth. The 15.4% increase in net income to
The newly announced
The company's operational strategy shows careful balance between reliability and growth. The completion of the Yellowstone County Generating Station and the planned acquisition of additional Colstrip interests (total 592 megawatts) create a robust generation portfolio. However, investors should monitor the impact of new EPA rules, which could require significant facility upgrades as early as 2027.
The 1.5% dividend increase maintains the company's commitment to shareholder returns while preserving financial flexibility for its ambitious capital program. The targeted 60-70% payout ratio provides a sustainable balance between dividends and reinvestment needs. The company's ability to fund its
-
2024 Diluted GAAP EPS of
$3.65 $3.22 -
2024 Adjusted Diluted Non-GAAP EPS of
$3.40 $3.27 -
Affirms
4% to6% long-term EPS growth rate. -
Increases quarterly dividend by
1.5% - to$0.66 -
Announces
$2.7 billion 11% increase over prior plan.
Full-year 2024 earnings were driven by the resolution of rate reviews in
"We are pleased to report a year of strategic progress and strong execution in 2024, reinforcing our commitment to providing safe, reliable, and affordable energy to our customers. It has been a busy year for everyone at NorthWestern as we continue to focus on delivering essential services while making critical investments for the future,” said Brian Bird, President & Chief Executive Officer.
"A key priority this year was ensuring the long-term resilience of our system. We filed rate reviews across all jurisdictions to recover the necessary investments made to support our obligation to provide safe and reliable service to our customers. We substantially completed our 175MW Yellowstone County Generating Station which is already in service and benefiting customers by reducing reliance on volatile and costly power market purchases. Additionally, we announced plans to invest in several regional transmission projects, including the North Plains Connector project, and entered into an agreement to acquire incremental
"Beyond reliability, we made excellent progress in enhancing system safety and sustainability. The release of our Wildfire Mitigation Plan and Public Safety Power Shutoff plan reflects our proactive approach to protecting customers and the beautiful land we call home. Additionally, our planned acquisition of Energy West Montana’s and Cut Bank Gas’s natural gas assets and customers strengthens NorthWestern’s position in
FOURTH QUARTER FINANCIAL RESULTS
Net income for the three months ending December 31, 2024 was
Adjusted diluted non-GAAP earnings per share for the quarter was
FINANCIAL OUTLOOK
Affirming Long-Term EPS Growth and Announcing Capital Plan
We are affirming our long-term (five-year) diluted earnings per share growth guidance of
Additionally, we are announcing a
We plan to fund this capital program through a combination of cash from operations and secured debt issuances. Any incremental investments in generation, transmission, or other strategic growth opportunities may require equity financing.
Dividend Declared
NorthWestern Energy Group’s Board of Directors has declared a quarterly common stock dividend of
Looking ahead, we remain committed to maintaining a dividend payout ratio within our targeted range of 60
Additional information regarding this release can be found in the earnings presentation at https://www.northwesternenergy.com/investors/earnings.
COMPANY UPDATES
Regulatory Update
Rate reviews are necessary to recover the cost of providing safe, reliable service, while contributing to earnings growth and achieving our financial objectives. We regularly review the need for electric and natural gas rate adjustments in each state in which we provide service. Our ongoing rate review activity includes the following:
Montana Rate Review - In July 2024, we filed a
In November 2024, the MPSC partially approved our requested interim rates, which are subject to refund, increasing electric and natural gas base rates by
In January 2025, intervenor testimony was filed and we anticipate filing our rebuttal testimony in March 2025. Based on the procedural schedule developed by the MPSC, a hearing on our rate review request is scheduled to commence on April 22, 2025. If a final order is not received by May 23, 2025, which is 270 days from acceptance of our filing, we intend to implement our requested rates as permitted by the MPSC regulations, which will be subject to refund until a final order is received.
South Dakota Natural Gas Rate Review - In June 2024, we filed a natural gas rate review (2023 test year) with the South Dakota Public Utilities Commission (SDPUC) for an annual increase to natural gas rates totaling approximately
Nebraska Natural Gas Rate Review - In June 2024, we filed a natural gas rate review (2023 test year) with the Nebraska Public Service Commission (NPSC). The filing requests a base rate annual revenue increase of
Electric Resource Planning -
Acquisition of Colstrip Interests - As previously disclosed, in January 2023 and in July 2024, we entered into definitive agreements, the first with Avista Corporation (Avista) and the second with Puget Sound Energy (Puget), to acquire their respective interests in Colstrip Units 3 & 4 for
Acquisition of Avista and Puget's interests would result in our ownership of 55 percent of the facility with the ability to guide operating and maintenance investments. This would provide capacity to help us meet our obligation to provide reliable and cost effective power to our customers in
Environmental Protection Agency (EPA) Rules
In April 2024, the EPA released Greenhouse Gas (GHG) Rules for existing coal-fired facilities and new coal and natural gas-fired facilities as well as Mercury and Air Toxics Standards (MATS) Rules. Compliance with the rules will require expensive upgrades at Colstrip Units 3 and 4 with proposed compliance dates that may not be achievable and / or require technology that is unproven, resulting in significant impacts to costs of the facilities. The final MATS and GHG Rules require compliance as early as 2027 and 2032, respectively. However, the Trump Administration is evaluating energy related regulations impacting reliability and affordability which may impact the EPA rules.
Acquisition of Energy West Montana Assets
In July 2024, we entered into an Asset Purchase Agreement with Hope Utilities to acquire its Energy West natural gas utility distribution system and operations serving approximately 33,000 customers located near
Regional Transmission Development Activities
In August 2024, the
In addition to the Colstrip Transmission System Upgrade, in December 2024, we signed a nonbinding memorandum of understanding (MOU) with North Plains Connector LLC, a wholly owned subsidiary of Grid United, to own 10 percent (300 megawatts) of the NPC Consortium project. The project is entering the permitting phase and initiating regulatory filings with approvals targeted in 2026. Construction is expected to commence in 2028, with the project expected to be operational by 2032. Under the terms of the MOU, Grid United will continue to fund the development of the NPC and we will invest when the regulatory approvals and permits are in place. The project is a critical infrastructure investment that aligns with our commitment to providing reliable and affordable energy to our customers while also supporting broader grid resilience efforts in the region.
President Trump issued an Executive Order on January 20, 2025, "Unleashing American Energy," directing all federal executive agency heads to review all agency actions implicating energy reliability and affordability or potentially burdening the development of domestic energy resources. This Executive Order has delayed, for up to 90 days, the disbursement of the funds granted by the
We have also entered into a nonbinding letter of intent with Grid United to continue transmission development to further enhance the grid through the southwest corridor of
Montana Data Centers
In December 2024, we announced two separate nonbinding letters of intent to provide electric supply services for data centers being developed in
CONSOLIDATED STATEMENT OF INCOME |
||||||||
|
Year Ended December 31, |
|||||||
(in millions, except per share amounts) |
2024 |
|
2023 |
|||||
Revenues |
|
|
|
|||||
Electric |
$ |
1,200.7 |
|
|
$ |
1,068.8 |
|
|
Gas |
|
313.2 |
|
|
|
353.3 |
|
|
Total Revenues |
|
1,513.9 |
|
|
|
1,422.1 |
|
|
Operating Expenses |
|
|
|
|||||
Fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion shown separately below) |
|
433.8 |
|
|
|
420.2 |
|
|
Operating and maintenance |
|
227.8 |
|
|
|
220.5 |
|
|
Administrative and general |
|
137.4 |
|
|
|
117.3 |
|
|
Property and other taxes |
|
163.9 |
|
|
|
153.1 |
|
|
Depreciation and depletion |
|
227.6 |
|
|
|
210.5 |
|
|
Total Operating Expenses |
|
1,190.6 |
|
|
|
1,121.7 |
|
|
Operating Income |
|
323.3 |
|
|
|
300.5 |
|
|
Interest Expense, net |
|
(131.7 |
) |
|
|
(114.6 |
) |
|
Other Income, net |
|
23.0 |
|
|
|
15.8 |
|
|
Income Before Income Taxes |
|
214.7 |
|
|
|
201.6 |
|
|
Income Tax Benefit (Expense) |
|
9.4 |
|
|
|
(7.5 |
) |
|
Net Income |
|
224.1 |
|
|
|
194.1 |
|
|
Basic Shares Outstanding |
|
61.3 |
|
|
|
60.3 |
|
|
Earnings per Share - Basic |
$ |
3.66 |
|
|
$ |
3.22 |
|
|
Diluted Shares Outstanding |
|
61.4 |
|
|
|
60.4 |
|
|
Earnings per Share - Diluted |
$ |
3.65 |
|
|
$ |
3.22 |
|
|
|
|
|
|
|||||
Dividends Declared per Common Share |
$ |
2.60 |
|
|
$ |
2.56 |
|
|
Note: Subtotal variances may exist due to rounding. |
||||||||
RECONCILIATION OF PRIMARY CHANGES |
||||||||||||||||
|
Year Ended December 31, 2024 vs. 2023 |
|||||||||||||||
|
Pre-tax Income |
|
Inc. Tax Benefit (Expense)(3) |
|
Net Income |
|
Diluted Earnings Per Share |
|||||||||
|
(in millions) |
|
|
|||||||||||||
December 31, 2023 |
$ |
201.6 |
|
|
$ |
(7.5 |
) |
|
$ |
194.1 |
|
|
$ |
3.22 |
|
|
Variance in revenue and fuel, purchased supply, and direct transmission expense(1) items impacting net income: |
|
|
|
|
|
|
|
|||||||||
Base rates |
|
62.4 |
|
|
|
(15.8 |
) |
|
|
46.6 |
|
|
$ |
0.77 |
|
|
Electric transmission revenue |
|
18.6 |
|
|
|
(4.7 |
) |
|
|
13.9 |
|
|
$ |
0.23 |
|
|
|
|
4.8 |
|
|
|
(1.2 |
) |
|
|
3.6 |
|
|
$ |
0.06 |
|
|
|
|
2.3 |
|
|
|
(0.6 |
) |
|
|
1.7 |
|
|
$ |
0.03 |
|
|
|
|
1.1 |
|
|
|
(0.3 |
) |
|
|
0.8 |
|
|
$ |
0.01 |
|
|
Production tax credits, offset within income tax benefit (expense) |
|
0.2 |
|
|
|
(0.2 |
) |
|
|
— |
|
|
$ |
— |
|
|
Non-recoverable |
|
(7.9 |
) |
|
|
2.0 |
|
|
|
(5.9 |
) |
|
$ |
(0.10 |
) |
|
QF liability adjustment |
|
(4.2 |
) |
|
|
1.1 |
|
|
|
(3.1 |
) |
|
$ |
(0.05 |
) |
|
Natural gas retail volumes |
|
(4.0 |
) |
|
|
1.0 |
|
|
|
(3.0 |
) |
|
$ |
(0.05 |
) |
|
Electric retail volumes |
|
(0.9 |
) |
|
|
0.2 |
|
|
|
(0.7 |
) |
|
$ |
(0.01 |
) |
|
Other |
|
(3.2 |
) |
|
|
0.8 |
|
|
|
(2.4 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
$ |
— |
|
|||||||
Variance in expense items(2) impacting net income: |
|
|
|
|
|
|
$ |
— |
|
|||||||
Operating, maintenance, and administrative |
|
(19.4 |
) |
|
|
4.9 |
|
|
|
(14.5 |
) |
|
$ |
(0.24 |
) |
|
Depreciation |
|
(17.1 |
) |
|
|
4.3 |
|
|
|
(12.8 |
) |
|
$ |
(0.21 |
) |
|
Interest expense |
|
(17.1 |
) |
|
|
4.3 |
|
|
|
(12.8 |
) |
|
$ |
(0.21 |
) |
|
Property and other taxes not recoverable within trackers |
|
(4.4 |
) |
|
|
1.1 |
|
|
|
(3.3 |
) |
|
$ |
(0.06 |
) |
|
Release of unrecognized tax benefits (inclusive of related interest previously accrued) |
|
— |
|
|
|
17.8 |
|
|
|
17.8 |
|
|
$ |
0.29 |
|
|
Gas repairs safe harbor method change |
|
— |
|
|
|
7.0 |
|
|
|
7.0 |
|
|
$ |
0.12 |
|
|
Other |
|
1.9 |
|
|
|
(4.8 |
) |
|
|
(2.9 |
) |
|
$ |
(0.05 |
) |
|
Dilution from higher share count |
|
|
|
|
|
|
$ |
(0.06 |
) |
|||||||
December 31, 2024 |
$ |
214.7 |
|
|
$ |
9.4 |
|
|
$ |
224.1 |
|
|
$ |
3.65 |
|
|
Change in Net Income |
|
|
|
|
$ |
30.0 |
|
|
$ |
0.43 |
|
|||||
(1) Exclusive of depreciation and depletion shown separately below |
||||||||||||||||
(2) Excluding fuel, purchased supply, and direct transmission expense |
||||||||||||||||
(3) Income Tax Benefit (Expense) calculation on reconciling items assumes blended federal plus state effective tax rate of |
||||||||||||||||
Note: Subtotal variances may exist due to rounding. |
||||||||||||||||
EXPLANATION OF CONSOLIDATED RESULTS
Year Ended December 31, 2024 Compared with Year Ended December 31, 2023
Consolidated gross margin in 2024 was
|
Year Ended December 31, |
|||||||
(in millions) |
2024 |
|
2023 |
|||||
Reconciliation of gross margin to utility margin: |
|
|
|
|||||
Operating Revenues |
$ |
1,513.9 |
|
|
$ |
1,422.1 |
|
|
Less: Fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion shown separately below) |
|
433.8 |
|
|
|
420.2 |
|
|
Less: Operating and maintenance |
|
227.8 |
|
|
|
220.5 |
|
|
Less: Property and other taxes |
|
163.9 |
|
|
|
154.6 |
|
|
Less: Depreciation and depletion |
|
227.6 |
|
|
|
210.5 |
|
|
Gross Margin |
|
460.8 |
|
|
|
416.3 |
|
|
Operating and maintenance |
|
227.8 |
|
|
|
220.5 |
|
|
Property and other taxes |
|
163.9 |
|
|
|
154.6 |
|
|
Depreciation and depletion |
|
227.6 |
|
|
|
210.5 |
|
|
Utility Margin(1) |
$ |
1,080.1 |
|
|
$ |
1,001.9 |
|
|
(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below. |
||||||||
|
Year Ended December 31, |
||||||||||||||
(in millions) |
2024 |
|
2023 |
|
Change |
|
% Change |
||||||||
|
|
||||||||||||||
Utility Margin |
|
|
|
|
|
|
|
||||||||
Electric |
$ |
871.1 |
|
|
$ |
806.1 |
|
|
$ |
65.0 |
|
|
8.1 |
% |
|
Natural Gas |
|
209.0 |
|
|
|
195.8 |
|
|
|
13.2 |
|
|
6.7 |
|
|
Total Utility Margin(1) |
$ |
1,080.1 |
|
|
$ |
1,001.9 |
|
|
$ |
78.2 |
|
|
7.8 |
% |
|
(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below. |
|||||||||||||||
Consolidated utility margin in 2024 was
Primary components of the change in utility margin include the following:
(in millions) |
Utility Margin
|
|||
Utility Margin Items Impacting Net Income |
|
|||
Base rates |
$ |
62.4 |
|
|
Electric transmission revenue due to market conditions and rates |
|
18.6 |
|
|
|
|
4.8 |
|
|
|
|
2.3 |
|
|
|
|
1.1 |
|
|
Non-recoverable |
|
(7.9 |
) |
|
QF liability adjustment |
|
(4.2 |
) |
|
Natural gas retail volumes |
|
(4.0 |
) |
|
Electric retail volumes |
|
(0.9 |
) |
|
Other |
|
(3.0 |
) |
|
Change in Utility Margin Impacting Net Income |
|
69.2 |
|
|
|
|
|||
Utility Margin Items Offset Within Net Income |
|
|||
Property and other taxes recovered in revenue, offset in property and other taxes |
|
6.4 |
|
|
Operating expenses recovered in revenue, offset in operating and maintenance expense |
|
2.4 |
|
|
Production tax credits, offset in income tax expense |
|
0.2 |
|
|
Change in Items Offset Within Net Income |
|
9.0 |
|
|
Increase in Consolidated Utility Margin(1) |
$ |
78.2 |
|
|
(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below. |
||||
Lower electric residential and commercial retail volumes were driven by unfavorable weather in
Under the PCCAM, net supply costs higher or lower than the PCCAM base rate (PCCAM Base) (excluding QF costs) are allocated 90 percent to
The less favorable adjustment to our electric QF liability (unrecoverable costs associated with contracts covered by the Public Utility Regulatory Policies Act of 1978 (PURPA) as part of a 2002 stipulation with the MPSC and other parties) reflects a
(in millions) |
Year Ended December 31, |
||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
% Change |
||||||||
|
|
||||||||||||||
Operating Expenses (excluding fuel, purchased supply and direct transmission expense) |
|
|
|
|
|
|
|
|
|||||||
Operating and maintenance |
$ |
227.8 |
|
|
$ |
220.5 |
|
|
$ |
7.3 |
|
|
3.3 |
% |
|
Administrative and general |
|
137.4 |
|
|
|
117.3 |
|
|
|
20.1 |
|
|
17.1 |
|
|
Property and other taxes |
|
163.9 |
|
|
|
153.1 |
|
|
|
10.8 |
|
|
7.1 |
|
|
Depreciation and depletion |
|
227.6 |
|
|
|
210.5 |
|
|
|
17.1 |
|
|
8.1 |
|
|
Total Operating Expenses (excluding fuel, purchased supply and direct transmission expense) |
$ |
756.7 |
|
|
$ |
701.4 |
|
|
$ |
55.3 |
|
|
7.9 |
% |
|
Consolidated operating expenses, excluding fuel, purchased supply and direct transmission expense, were
(in millions) |
Operating Expenses |
|||
|
2024 vs. 2023 |
|||
Operating Expenses (excluding fuel, purchased supply and direct transmission expense) Impacting Net Income |
|
|||
Depreciation expense due to plant additions and higher depreciation rates |
$ |
17.1 |
|
|
Labor and benefits(1) |
|
7.9 |
|
|
Insurance expense, primarily due to increased wildfire risk premiums |
|
7.7 |
|
|
Property and other taxes not recoverable within trackers |
|
4.4 |
|
|
Litigation outcome (Pacific Northwest Solar) |
|
2.4 |
|
|
Electric generation maintenance |
|
2.0 |
|
|
Non-cash impairment of alternative energy storage investment |
|
1.7 |
|
|
Technology implementation and maintenance |
|
1.5 |
|
|
Uncollectible accounts |
|
(1.4 |
) |
|
Other |
|
(2.3 |
) |
|
Change in Items Impacting Net Income |
|
41.0 |
|
|
|
|
|||
Operating Expenses Offset Within Net Income |
|
|||
Property and other taxes recovered in trackers, offset in revenue |
|
6.4 |
|
|
Pension and other postretirement benefits, offset in other income(1) |
|
4.8 |
|
|
Operating and maintenance expenses recovered in trackers, offset in revenue |
|
2.4 |
|
|
Deferred compensation, offset in other income |
|
0.7 |
|
|
Change in Items Offset Within Net Income |
|
14.3 |
|
|
Increase in Operating Expenses (excluding fuel, purchased supply and direct transmission expense) |
$ |
55.3 |
|
|
(1) In order to present the total change in labor and benefits, we have included the change in the non-service cost component of our pension and other postretirement benefits, which is recorded within other income on our Condensed Consolidated Statements of Income. This change is offset within this table as it does not affect our operating expenses. |
||||
Consolidated operating income in 2024 was
Consolidated interest expense in 2024 was
Consolidated other income in 2024 was
Consolidated income tax benefit in 2024 was
We currently estimate our effective tax rate will range between 13.0 percent to 17.0 percent in 2025. Based on the significant Net Operating Loss (NOL) income tax position we have, we anticipate paying minimal cash for income taxes into 2028.
The following table summarizes the differences between our effective tax rate and the federal statutory rate:
($ in millions) |
Year Ended December 31, |
|||||||||||||
|
2024 |
|
2023 |
|||||||||||
Income Before Income Taxes |
$ |
214.7 |
|
|
|
|
$ |
201.6 |
|
|
|
|||
|
|
|
|
|
|
|
|
|||||||
Income tax calculated at federal statutory rate |
|
45.1 |
|
|
21.0 |
% |
|
|
42.4 |
|
|
21.0 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Permanent or flow through adjustments: |
|
|
|
|
|
|
|
|||||||
State income taxes, net of federal provisions |
|
0.4 |
|
|
0.2 |
|
|
|
0.6 |
|
|
0.3 |
|
|
Flow-through repairs deductions |
|
(23.1 |
) |
|
(10.8 |
) |
|
|
(25.9 |
) |
|
(12.9 |
) |
|
Release of unrecognized tax benefits (2024 is inclusive of |
|
(21.0 |
) |
|
(9.8 |
) |
|
|
(3.2 |
) |
|
(1.6 |
) |
|
Production tax credits |
|
(11.1 |
) |
|
(5.2 |
) |
|
|
(10.3 |
) |
|
(5.1 |
) |
|
Gas repairs safe harbor method change |
|
(7.0 |
) |
|
(3.3 |
) |
|
|
— |
|
|
— |
|
|
Amortization of excess deferred income taxes |
|
(2.9 |
) |
|
(1.4 |
) |
|
|
(2.2 |
) |
|
(1.1 |
) |
|
Prior year permanent return to accrual adjustments |
|
(0.4 |
) |
|
(0.2 |
) |
|
|
— |
|
|
— |
|
|
Plant and depreciation of flow through items |
|
9.4 |
|
|
4.4 |
|
|
|
6.6 |
|
|
3.3 |
|
|
Unregulated Tax Cuts and Jobs Act excess deferred income taxes |
|
— |
|
|
— |
|
|
|
(3.4 |
) |
|
(1.7 |
) |
|
Reduction to previously claimed alternative minimum tax credit |
|
— |
|
|
— |
|
|
|
3.2 |
|
|
1.6 |
|
|
Other, net |
|
1.2 |
|
|
0.7 |
|
|
|
(0.3 |
) |
|
(0.1 |
) |
|
|
|
(54.5 |
) |
|
(25.4 |
) |
|
|
(34.9 |
) |
|
(17.3 |
) |
|
|
|
|
|
|
|
|
|
|||||||
Income Tax (Benefit) Expense |
$ |
(9.4 |
) |
|
(4.4 |
)% |
|
$ |
7.5 |
|
|
3.7 |
% |
|
Our effective tax rate typically differs from the federal statutory tax rate primarily due to the regulatory impact of flowing through federal and state tax benefits of repairs deductions, state tax benefit of accelerated tax depreciation deductions (including bonus depreciation when applicable) and production tax credits.
Consolidated net income in 2024 was
LIQUIDITY AND OTHER CONSIDERATIONS
Liquidity and Capital Resources
As of December 31, 2024, our total consolidated net liquidity was approximately
Earnings Per Share
Basic earnings per share are computed by dividing earnings applicable to common stock by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of common stock equivalent shares that could occur if unvested shares were to vest. Common stock equivalent shares are calculated using the treasury stock method, as applicable. The dilutive effect is computed by dividing earnings applicable to common stock by the weighted average number of common shares outstanding plus the effect of the outstanding unvested restricted stock and performance share awards. Average shares used in computing the basic and diluted earnings per share are as follows:
|
December 31, |
|||||
|
2024 |
|
2023 |
|||
Basic computation |
61,293,052 |
|
60,321,481 |
|
||
Dilutive effect of |
|
|
||||
Performance and restricted share awards(1) |
81,153 |
|
36,312 |
|
||
Forward equity sale(2) |
— |
|
— |
|
||
Diluted computation |
61,374,205 |
|
60,357,793 |
|
||
(1) Performance share awards are included in diluted weighted average number of shares outstanding based upon what would be issued if the end of the most recent reporting period was the end of the term of the award. |
||||||
(2) Forward equity shares are included in diluted weighted average number of shares outstanding based upon what would be issued if the end of the most recent reporting period was the end of the term of the forward sale agreement. |
||||||
Adjusted Non-GAAP Earnings
We reported GAAP earnings of
(in millions, except per share amounts) |
||||||||||||||||||||||||||||||||||||
Actual |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Nine Months Ended September 30, 2024 |
Q4 2024 |
Full Year 2024 |
||||||||||||||||||||||||||||||||||
|
Pre-tax Income |
Net(1)
|
Diluted EPS |
Pre-tax Income |
Net(1)
|
Diluted EPS |
Pre-tax Income |
Net(1)
|
Diluted EPS(2) |
|||||||||||||||||||||||||||
2024 Reported GAAP |
$ |
155.0 |
|
$ |
143.6 |
|
$ |
2.34 |
|
$ |
59.7 |
|
$ |
80.6 |
|
$ |
1.31 |
|
$ |
214.7 |
|
$ |
224.1 |
|
$ |
3.65 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Non-GAAP Adjustments: |
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Add Back Unfavorable Weather |
|
2.3 |
|
|
1.7 |
|
|
0.03 |
|
|
8.3 |
|
|
6.2 |
|
|
0.10 |
|
|
10.6 |
|
|
7.9 |
|
|
0.13 |
|
|||||||||
Impairment of Alternative Energy Storage Investment |
|
4.2 |
|
|
3.1 |
|
|
0.05 |
|
|
— |
|
|
— |
|
|
— |
|
|
4.2 |
|
|
3.1 |
|
|
0.05 |
|
|||||||||
Community Renewable Energy Project Penalty (not tax deductible) |
|
(2.3 |
) |
|
(2.3 |
) |
|
(0.04 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(2.3 |
) |
|
(2.3 |
) |
|
(0.04 |
) |
|||||||||
Natural Gas Repairs Safe Harbor Method Change |
|
— |
|
|
(7.0 |
) |
|
(0.11 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(7.0 |
) |
|
(0.11 |
) |
|||||||||
Release of Unrecognized Tax Benefit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(16.9 |
) |
|
(0.28 |
) |
|
— |
|
|
(16.9 |
) |
|
(0.28 |
) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
2024 Non-GAAP |
$ |
159.2 |
|
$ |
139.1 |
|
$ |
2.27 |
|
$ |
68.0 |
|
$ |
69.9 |
|
$ |
1.13 |
|
$ |
227.2 |
|
$ |
208.9 |
|
$ |
3.40 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 |
Q4 2023 |
Full Year 2023 |
||||||||||||||||||||||||||||||||||
|
Pre-tax Income |
Net(1)
|
Diluted EPS |
Pre-tax Income |
Net(1)
|
Diluted EPS |
Pre-tax Income |
Net(1)
|
Diluted EPS(2) |
|||||||||||||||||||||||||||
2023 Reported GAAP |
$ |
125.1 |
|
$ |
111.0 |
|
$ |
1.85 |
|
$ |
76.6 |
|
$ |
83.1 |
|
$ |
1.37 |
|
$ |
201.6 |
|
$ |
194.1 |
|
$ |
3.22 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Non-GAAP Adjustments: |
|
|
|
|
|
|
||||||||||||||||||||||||||||||
(Deduct) Favorable Weather / Add Back Unfavorable Weather |
|
(0.9 |
) |
|
(0.7 |
) |
|
(0.01 |
) |
|
5.2 |
|
|
3.9 |
|
|
0.06 |
|
|
4.3 |
|
|
3.2 |
|
|
0.05 |
|
|||||||||
Add Back Reduction Related to Previously Claimed AMT Credit |
|
— |
|
|
3.2 |
|
|
0.05 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3.2 |
|
|
0.05 |
|
|||||||||
Release of Unrecognized Tax Benefit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3.2 |
) |
|
(0.05 |
) |
|
— |
|
|
(3.2 |
) |
|
(0.05 |
) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
2023 Non-GAAP |
$ |
124.2 |
|
$ |
113.5 |
|
$ |
1.89 |
|
$ |
81.8 |
|
$ |
83.8 |
|
$ |
1.38 |
|
$ |
205.9 |
|
$ |
197.3 |
|
$ |
3.27 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
(1) Income tax rate on reconciling items assumes blended federal plus state effective tax rate of |
||||||||||||||||||||||||||||||||||||
(2) Due to changes in the quarterly diluted share count, full year EPS may be +/- |
||||||||||||||||||||||||||||||||||||
Company Hosting Earnings Webinar
NorthWestern will host an investor earnings webinar on Thursday, February 13, 2025, at 3:30 p.m. Eastern time to review its financial results for the year ending December 31, 2024. To register for the webinar, please visit www.northwesternenergy.com/earnings-registration. Please go to the site at least 15 minutes in advance of the webinar to register. An archived webinar will be available shortly after the event and remain active for one year.
NorthWestern Energy - Delivering a Bright Future
NorthWestern Energy Group, doing business as NorthWestern Energy, provides essential energy infrastructure and valuable services that enrich lives and empower communities while serving as long-term partners to our customers and communities. We work to deliver safe, reliable, and innovative energy solutions that create value for customers, communities, employees, and investors. We do this by providing low-cost and reliable service performed by highly-adaptable and skilled employees. We provide electricity and / or natural gas to approximately 787,000 customers in
Non-GAAP Financial Measures
This press release includes financial information prepared in accordance with GAAP, as well as other financial measures, such as Utility Margin, Adjusted Non-GAAP pretax income, Adjusted Non-GAAP net income and Adjusted Non-GAAP Diluted EPS that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.
We define Utility Margin as Operating Revenues less fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion) as presented in our Condensed Consolidated Statements of Income. This measure differs from the GAAP definition of Gross Margin due to the exclusion of Operating and maintenance, Property and other taxes, and Depreciation and depletion expenses, which are presented separately in our Condensed Consolidated Statements of Income. A reconciliation of Utility Margin to Gross Margin, the most directly comparable GAAP measure, is included in the press release above.
Management believes that Utility Margin provides a useful measure for investors and other financial statement users to analyze our financial performance in that it excludes the effect on total revenues caused by volatility in energy costs and associated regulatory mechanisms. This information is intended to enhance an investor's overall understanding of results. Under our various state regulatory mechanisms, as detailed below, our supply costs are generally collected from customers. In addition, Utility Margin is used by us to determine whether we are collecting the appropriate amount of energy costs from customers to allow for recovery of operating costs, as well as to analyze how changes in loads (due to weather, economic, or other conditions), rates, and other factors impact our results of operations. Our Utility Margin measure may not be comparable to that of other companies' presentations or more useful than the GAAP information provided elsewhere in this report.
Management also believes the presentation of Adjusted Non-GAAP pre-tax income, Adjusted Non-GAAP net income and Adjusted Non-GAAP Diluted EPS is more representative of normal earnings than GAAP pre-tax income, net income and EPS due to the exclusion (or inclusion) of certain impacts that are not reflective of ongoing earnings. The presentation of these non-GAAP measures is intended to supplement investors' understanding of our financial performance and not to replace other GAAP measures as an indicator of actual operating performance. Our measures may not be comparable to other companies' similarly titled measures.
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 "Adjusted Non-GAAP Earnings." Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. We caution that while we make such statements in good faith and believe such statements are based on reasonable assumptions, including without limitation, management's examination of historical operating trends, data contained in records and other data available from third parties, we cannot assure you that we will achieve our projections. Factors that may cause such differences include, but are not limited to:
- adverse determinations by regulators, such as adverse outcomes from the denial of interim rates or final rates not consistent with a reasonable ability to earn our allowed returns, as well as potential adverse federal, state, or local legislation or regulation, including costs of compliance with existing and future environmental requirements, and wildfire damages in excess of liability insurance coverage, could have a material effect on our liquidity, results of operations and financial condition;
- the impact of extraordinary external events and natural disasters, such as a wide-spread or global pandemic, geopolitical events, earthquake, flood, drought, lightning, weather, wind, and fire, could have a material effect on our liquidity, results of operations and financial condition;
- acts of terrorism, cybersecurity attacks, data security breaches, or other malicious acts that cause damage to our generation, transmission, or distribution facilities, information technology systems, or result in the release of confidential customer, employee, or Company information;
- supply chain constraints, recent high levels of inflation for product, services and labor costs, and their impact on capital expenditures, operating activities, and/or our ability to safely and reliably serve our customers;
- changes in availability of trade credit, creditworthiness of counterparties, 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 could adversely affect our liquidity and results of operations;
- 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 2024 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250212865818/en/
Investor Relations Contact:
Travis Meyer, (605) 978-2967
travis.meyer@northwestern.com
Media Contact:
Jo Dee Black, (866) 622-8081
jodee.black@northwestern.com
Source: NorthWestern Energy Group, Inc.
FAQ
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