Core Viewpoint - NorthWestern (NWE) reported quarterly earnings of $0.4 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, but down from $0.53 per share a year ago, indicating a mixed performance in earnings [1][2] Financial Performance - The company achieved revenues of $342.7 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.72% and showing an increase from $319.9 million year-over-year [2] - Over the last four quarters, NorthWestern has exceeded consensus EPS estimates two times and topped revenue estimates three times [2] Stock Performance - NorthWestern shares have declined approximately 1.7% since the beginning of the year, contrasting with the S&P 500's gain of 8.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.81 on revenues of $377.21 million, and for the current fiscal year, it is $3.60 on revenues of $1.59 billion [7] - The trend of earnings estimate revisions is mixed ahead of the earnings release, which may influence future stock performance [6] Industry Context - The Utility - Electric Power industry, to which NorthWestern belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

[Special Note Regarding Forward-Looking Statements](index=3&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section outlines the nature of forward-looking statements, identifies key risks, and clarifies the company's update policy [Special Note Regarding Forward-Looking Statements](index=3&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section outlines the nature of forward-looking statements, identifies key risks, and clarifies the company's update policy - The report contains forward-looking statements, identified by specific terminology, subject to various risks and uncertainties[11](index=11&type=chunk)[12](index=12&type=chunk) - Key factors that could cause material differences include adverse regulatory outcomes, extraordinary events, cybersecurity threats, supply chain issues, and economic conditions[15](index=15&type=chunk) - The company undertakes no obligation to update forward-looking statements, directing investors to subsequent SEC filings for disclosures[17](index=17&type=chunk) [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements, including income, balance sheets, and cash flows, with notes on key events [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2025 revenues increased to **$342.7 million**, but net income decreased to **$21.2 million**, while H1 net income slightly rose to **$98.2 million** Income Statement Highlights (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $342,713 | $319,929 | $809,343 | $795,271 | | **Operating Income** | $60,786 | $61,612 | $185,513 | $163,692 | | **Net Income** | $21,228 | $31,654 | $98,168 | $96,740 | | **Diluted EPS** | $0.35 | $0.52 | $1.60 | $1.58 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$8.14 billion** as of June 30, 2025, driven by property, plant, and equipment, with liabilities rising to **$5.26 billion** Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $403,080 | $418,186 | | **Property, Plant, and Equipment, net** | $6,531,509 | $6,398,275 | | **Total Assets** | $8,135,967 | $7,997,524 | | **Total Current Liabilities** | $537,432 | $802,200 | | **Long-term Debt** | $3,029,611 | $2,695,343 | | **Total Liabilities** | $5,256,291 | $5,139,824 | | **Total Shareholders' Equity** | $2,879,676 | $2,857,700 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was **$211.6 million** for H1 2025, with **$226.8 million** used in investing and **$12.7 million** provided by financing activities Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Cash Provided by Operating Activities** | $211,601 | $223,943 | | **Cash Used in Investing Activities** | $(226,756) | $(248,278) | | **Cash Provided by Financing Activities** | $12,686 | $30,186 | | **(Decrease) Increase in Cash** | $(2,469) | $5,851 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail key accounting policies, including the **$36.5 million** Energy West acquisition, ongoing rate reviews, **$500 million** in new bond issuances, and EPA rule challenges - On July 1, 2025, the company acquired Hope Utilities' Energy West natural gas distribution system for approximately **$36.5 million** in cash[38](index=38&type=chunk)[39](index=39&type=chunk) - The company is undergoing a Montana rate review, with interim rates implemented and settlement agreements filed, seeking a total revenue increase of **$14.6 million** for electric and **$18.1 million** for natural gas[40](index=40&type=chunk)[47](index=47&type=chunk) - In March and May 2025, the company issued **$400.0 million** and **$100.0 million** in First Mortgage Bonds for refinancing and general utility purposes[60](index=60&type=chunk)[62](index=62&type=chunk) - The company is challenging EPA rules on GHG and MATS emissions, with a presidential proclamation providing temporary exemptions and proposed rule changes[82](index=82&type=chunk)[84](index=84&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, noting a Q2 2025 net income decrease to **$21.2 million** but H1 increase to **$98.2 million**, covering segment performance, liquidity, and key developments [Overall Consolidated Results](index=29&type=section&id=OVERALL%20CONSOLIDATED%20RESULTS) Q2 2025 consolidated net income decreased to **$21.2 million** due to lower volumes and higher costs, while H1 net income increased to **$98.2 million** Net Income Reconciliation - Q2 2025 vs. Q2 2024 (in millions) | Description | Impact on Net Income | | :--- | :--- | | **Q2 2024 Net Income** | **$31.7** | | Rates | $14.5 | | Operating, maintenance, and administrative | $(7.5) | | Depreciation | $(4.1) | | Interest expense | $(3.3) | | Natural gas retail volumes | $(3.0) | | Montana property tax tracker collections | $(3.2) | | Electric retail volumes | $(2.2) | | **Q2 2025 Net Income** | **$21.2** | Utility Margin Change - H1 2025 vs. H1 2024 (in millions) | Description | Change in Utility Margin | | :--- | :--- | | Interim rates (subject to refund) | $30.1 | | Transmission revenue | $9.9 | | Base rates | $5.8 | | Electric retail volumes | $4.1 | | Montana property tax tracker collections | $(6.8) | | **Total Increase in Utility Margin** | **$51.8** | [Electric Segment](index=38&type=section&id=ELECTRIC%20SEGMENT) Electric segment utility margin increased by **$20.6 million** in Q2 2025 to **$219.9 million**, driven by interim rates and transmission revenue, despite lower retail volumes Electric Segment Utility Margin (in millions) | Period | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Q2** | $219.9 | $199.2 | $20.6 | 10.3% | | **H1** | $462.6 | $427.1 | $35.5 | 8.3% | - Primary drivers for the Q2 utility margin increase were interim rates of **$14.7 million** and a **$5.7 million** increase in transmission revenue[171](index=171&type=chunk) - Lower Q2 retail volumes resulted from unfavorable spring weather and reduced commercial/industrial demand, partially offset by customer growth[172](index=172&type=chunk) [Natural Gas Segment](index=42&type=section&id=NATURAL%20GAS%20SEGMENT) Natural Gas segment utility margin increased by **$3.4 million** in Q2 2025 to **$47.6 million**, driven by interim rates and transportation revenue, despite lower retail volumes Natural Gas Segment Utility Margin (in millions) | Period | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Q2** | $47.6 | $44.2 | $3.4 | 7.6% | | **H1** | $133.3 | $117.0 | $16.3 | 13.9% | - The Q2 utility margin increase was driven by interim rates of **$3.2 million** and Montana natural gas transportation revenue of **$1.6 million**[193](index=193&type=chunk) - Lower Q2 retail volumes resulted from warmer weather across all jurisdictions, partially offset by customer growth[195](index=195&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) As of June 30, 2025, the company maintained **$317.9 million** in liquidity, funding operations through cash flow, borrowing capacity, and future debt/equity issuances - Total net liquidity was approximately **$317.9 million** as of June 30, 2025, including **$2.9 million** cash and **$315.0 million** revolving credit facility availability[207](index=207&type=chunk) Consolidated Cash Flows - Six Months Ended June 30 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Cash Provided by Operating Activities** | $211.6 | $223.9 | | **Cash Used in Investing Activities** | $(226.8) | $(248.3) | | **Cash Provided by Financing Activities** | $12.7 | $30.2 | - The company maintains investment-grade credit ratings from Fitch (BBB), Moody's (Baa2), and S&P (BBB) for its primary operating subsidiaries[222](index=222&type=chunk) - Total contractual cash obligations and commitments as of June 30, 2025, are estimated at **$9.28 billion**[225](index=225&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks, including interest rates and commodity prices, with no material changes since the 2024 Annual Report - The company's primary market risks relate to interest rates, energy commodity prices, and counterparty credit[235](index=235&type=chunk) - There have been no material changes in the company's market risks since its 2024 Annual Report[235](index=235&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Disclosure controls and procedures were concluded to be effective by principal officers as of the end of the reporting period[237](index=237&type=chunk) - No material changes occurred in internal control over financial reporting during the most recent fiscal quarter[238](index=238&type=chunk) [PART II. OTHER INFORMATION](index=52&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part provides additional information including legal proceedings, risk factors, other disclosures, and exhibits [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is detailed in Note 11 - Commitments and Contingencies, to the Financial Statements - Information regarding legal proceedings is provided in Note 11 - Commitments and Contingencies, to the Financial Statements[241](index=241&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the 2024 Annual Report on Form 10-K - There have been no material changes to the company's risk factors since the disclosure in the 2024 Annual Report on Form 10-K[242](index=242&type=chunk) [Other Information](index=52&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading plan during Q2 2025 - During the second quarter of 2025, no director or officer adopted or terminated a Rule 10b5-1 trading agreement[243](index=243&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including supplemental indentures, officer certifications, and Inline XBRL data files - Exhibits filed include officer certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and various Inline XBRL documents[244](index=244&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk) [Signatures](index=54&type=section&id=SIGNATURES) The report was formally signed by Crystal Lail, Vice President and Chief Financial Officer, on July 31, 2025 - The report was signed on July 31, 2025, by Crystal Lail, Vice President and Chief Financial Officer[250](index=250&type=chunk)

Company Overview - NorthWestern (NWE) is expected to report a year-over-year decline in earnings, with a projected EPS of $0.38, reflecting a decrease of 28.3% compared to the previous year [3] - Revenues are anticipated to be $328.81 million, which represents a 2.8% increase from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for July 30, and the stock may rise if the results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has been revised down by 1.22% over the last 30 days, indicating a bearish sentiment among analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for NorthWestern is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.33%, which complicates predictions of an earnings beat [12] - NorthWestern currently holds a Zacks Rank of 3, suggesting a hold position, which further complicates the outlook for beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, NorthWestern had an EPS of $1.22, surpassing the expected $1.16, resulting in a surprise of +5.17% [13] - Over the past four quarters, the company has beaten consensus EPS estimates two times [14] Industry Comparison - DTE Energy, a peer in the utility sector, is expected to report an EPS of $1.54 for the same quarter, indicating a year-over-year increase of 7.7% [18] - DTE Energy's revenues are projected to be $3.02 billion, up 5% from the previous year, but it also has a negative Earnings ESP of -3.8% [19]

Financial Data and Key Metrics Changes - The company reported GAAP diluted EPS of $1.25 and non-GAAP diluted EPS of $1.22 for Q1 2025, compared to $1.06 in Q1 2024, reflecting a significant increase in earnings driven by rate recovery and colder weather [6][9][10] - The company affirmed its long-term rate base and earnings per share growth rate targets of 4% to 6% [6][19] Business Line Data and Key Metrics Changes - The Electric and Gas segments contributed strongly to the earnings, with margin improvements driven by new rates and favorable weather conditions [9][10] - New rates contributed $0.20 to margin improvement, while favorable loads added $0.13, resulting in a total margin increase [10][11] Market Data and Key Metrics Changes - The Montana rate review is nearing completion, with a full natural gas settlement and a partial electric settlement reached [7][14] - The average bill impact from the gas case is approximately 9%, maintaining rates below the national average [18] Company Strategy and Development Direction - The company is focusing on opportunities with data centers and new large load opportunities, potentially achieving greater than 6% EPS growth [8] - The company is committed to maintaining a 5% dividend yield and a total growth profile of 9% to 11% over the next five years [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on earnings and rate-based growth commitments over the long term, despite not providing specific 2025 earnings guidance until the conclusion of the Montana rate review [19][20] - The company expects a lower contribution to overall earnings in Q2 2025 due to the timing of rate implementations [20] Other Important Information - The Montana legislature has passed wildfire and other constructive bills, which are pending the governor's approval, providing significant legal protections for the company [22][24] - The company has successfully priced $500 million of long-term debt to address its financing needs for 2025 [13][14] Q&A Session Summary Question: On the tariff proceeding and data centers - The company is in discussions with multiple parties regarding data centers and expects to finalize contracts with two parties, Atlas and Sabey, by the end of Q2 2025 [40][43][44] Question: EPS guidance for 2025 - Management expects to stay within the 4% to 6% EPS range long-term but acknowledges variability in achieving this target [50] Question: Changes in electric average customer counts - The change in customer counts was due to a new system for counting street lighting districts, with overall customer growth remaining around 1.5% [54][55] Question: Long-term capacity planning - The company is considering natural gas or nuclear as potential replacements for Colstrip, depending on regulatory timelines [64][66] Question: SB301 and approval processes - The 90-day cost prudency review is deemed appropriate, with no overlapping of approval processes expected [68]

Financial Data and Key Metrics Changes - The company reported GAAP diluted EPS of $1.25 and non-GAAP diluted EPS of $1.22 for Q1 2025, compared to $1.06 in Q1 2024, reflecting a solid earnings improvement driven by rate recovery and colder weather [6][9][10] - The company affirmed its long-term rate base and earnings per share growth rate targets of 4% to 6% [6][20] - A dividend of $0.66 per share was declared, payable on June 30, 2025, to shareholders of record as of June 13, 2025 [6] Business Line Data and Key Metrics Changes - The Electric and Gas segments contributed strong margins, with new rates driving a $0.20 margin improvement across all jurisdictions [10][12] - Favorable loads contributed an additional $0.13 to margins due to colder weather, customer growth, and increased usage [10] - Transition revenues added approximately $0.05 to the quarter's earnings [10] Market Data and Key Metrics Changes - The Montana rate review is nearing completion, with a full natural gas settlement and a partial electric settlement reached [7][19] - The average bill impact from the gas case is approximately 9%, maintaining rates below the national average [19] Company Strategy and Development Direction - The company aims to achieve greater than 6% EPS growth through opportunities with data centers and new large load customers, alongside FERC regional transmission and incremental generating capacity [8][20] - Legislative successes include a wildfire bill providing legal protections and a transmission bill facilitating the approval process for large transmission projects [23][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on earnings and rate-based growth commitments over the long term, despite not providing specific 2025 earnings guidance until the conclusion of the Montana rate review [20][72] - The company anticipates a lower contribution to overall earnings in Q2 2025, estimating it to be approximately 10% of the full year due to the timing of rate implementations [21] Other Important Information - The company successfully priced $500 million of long-term debt in March 2025, addressing its financing needs for the year [14][15] - The company is focused on maintaining reliability and affordability for customers while supporting long-term growth [20][22] Q&A Session Summary Question: How long do you think the tariff proceeding could go for? - Management indicated that there are five levels of process for data centers, with various parties at different stages, and they expect to finalize contracts with two parties by the end of Q2 or early July [40][43] Question: Do you still see yourself within the 4% to 6% EPS range for 2025? - Management acknowledged the question regarding 2025 guidance, indicating they expect to stay within the 4% to 6% range long-term, but noted that it may not be entirely linear [50] Question: Did you change the electric average customer counts? - Management confirmed that the change was due to the way street lighting districts were counted, but overall customer growth remained around 1.5% [54] Question: Is there adequate space at Colstrip for replacement capacity? - Management stated that there is adequate land for potential gas or nuclear plants near Colstrip, with ongoing discussions about nuclear options [61][63]

Financial Data and Key Metrics Changes - The company reported GAAP diluted EPS of $1.25 and non-GAAP diluted EPS of $1.22 for the first quarter of 2025, compared to $1.06 in the same period last year, reflecting a significant increase in earnings driven by rate recovery and colder weather [5][9][10] - The company affirmed its long-term rate base and earnings per share growth rate targets of 4% to 6% [5][20] - A dividend of $0.66 per share was declared, payable on June 30, 2025, to shareholders of record as of June 13, 2025 [5] Business Line Data and Key Metrics Changes - The Electric and Gas segments contributed strongly to the earnings, with margin improvements driven by new rates and favorable weather conditions [9][10] - New rates contributed $0.20 to margin improvement, while favorable loads added $0.13, resulting in a total margin increase [10][12] - Transition revenues contributed approximately $0.05 to the quarter's earnings [10] Market Data and Key Metrics Changes - The Montana rate review is nearing completion, with a full natural gas settlement and a partial electric settlement reached [6][19] - The average bill impact from the gas case is approximately 9%, maintaining rates below the national average [19] Company Strategy and Development Direction - The company aims to achieve greater than 6% EPS growth through opportunities with data centers and new large load opportunities, alongside FERC regional transmission and incremental generating capacity [7][20] - The company is focused on maintaining reliability and affordability for customers while supporting long-term growth [19][22] - Legislative successes include a wildfire bill providing legal protections and a transmission bill facilitating the establishment of CPCNs for large transmission projects [23][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on earnings and rate-based growth commitments over the long term, despite not providing specific 2025 earnings guidance until the conclusion of the Montana rate review [20][21] - The first quarter performance was solid and slightly ahead of expectations, with a lower contribution anticipated from the second quarter due to the timing of rate implementations [21][22] Other Important Information - The company completed $500 million in long-term debt financing to address its financing needs for 2025 [14][15] - The company is currently at over 60% carbon-free energy in Montana and is exploring opportunities for new large load customers [31] Q&A Session Summary Question: Inquiry about tariff proceedings and data center customers - Management indicated that there are nine parties in the early stages of data center requests, with two parties (Atlas and Sabey) in the contractual estimate phase, expecting contracts by the end of Q2 or early July [42][45] Question: EPS guidance for 2025 - Management acknowledged the inquiry about 2025 guidance, indicating expectations to remain within the 4% to 6% range but noted that it may not be linear [51] Question: Changes in electric average customer counts - Management clarified that changes in customer counts were due to a new system for counting street lighting districts, with overall customer growth remaining around 1.5% [55] Question: Long-term capacity planning and Colstrip - Management confirmed that there is adequate land around Colstrip for potential future capacity, including gas or nuclear options, depending on regulatory timelines [62][66]

Financial Performance - NorthWestern Energy reported GAAP diluted EPS of $1.25 and non-GAAP diluted EPS of $1.22 for the first quarter of 2025[8] - First quarter GAAP net income increased by $11.8 million or 18.1% compared to the prior period[18] - First quarter non-GAAP net income increased by $8.1 million or 12.1% compared to the prior period[18] - Utility Margin increased by $30.7 million or 10.2% in the first quarter of 2025 compared to the prior year[24] Growth and Investment - The company is affirming long-term rate base and earnings per share growth rates targets of 4% - 6%[8] - The company forecasts $2.74 billion of capital investment over the next five years, expected to drive annualized earnings and rate base growth of approximately 4% - 6%[11] - The company expects to maintain FFO to Debt ratio > 14% in 2025 and beyond[42] Regulatory and Strategic Updates - A full natural gas settlement and a partial electric settlement have been reached in Montana rate review[8] - Montana legislature has passed wildfire and transmission bills, pending the Governor's approval[8] - The company plans no cost acquisition of 592 MW of additional Colstrip capacity[61] - The company announced a memorandum of understanding to own 10% of the North Plains Connector project[70]

Core Viewpoint - NorthWestern (NWE) reported quarterly earnings of $1.22 per share, exceeding the Zacks Consensus Estimate of $1.16 per share, and showing an increase from $1.09 per share a year ago, indicating a 5.17% earnings surprise [1] Financial Performance - The company posted revenues of $466.6 million for the quarter ended March 2025, which was 4.17% below the Zacks Consensus Estimate and a decrease from $475.3 million year-over-year [2] - Over the last four quarters, NorthWestern has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - NorthWestern shares have increased approximately 10% since the beginning of the year, contrasting with a -6% decline in the S&P 500 [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.66 on revenues of $338.33 million, and for the current fiscal year, it is $3.58 on revenues of $1.58 billion [7] Industry Context - The Utility - Electric Power industry, to which NorthWestern belongs, is currently ranked in the top 14% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Points - The article does not provide any relevant information regarding companies or industries Group 1 - No relevant company or industry information is present in the documents [1][2][3]

Financial Data and Key Metrics Changes - The company reported diluted GAAP EPS of $3.65 for the full year 2024, an increase from $3.22 in 2023, representing a 13% growth [10][22]. - For Q4 2024, GAAP earnings were $1.31 compared to $1.37 in the same quarter last year, with adjusted earnings of $1.13 after accounting for weather and tax impacts [17][20]. Business Line Data and Key Metrics Changes - The company completed over $550 million in capital investments, including the launch of the Yellowstone County generating station [9]. - The full-year impact of new base rates contributed $62.4 million to earnings, with continued improvement in transmission revenues [26]. Market Data and Key Metrics Changes - The company experienced a significant impact from mild weather, which reduced Q4 results by $0.10 compared to normal and $0.04 versus the prior period [20][22]. - The company noted that the Montana rate review process is ongoing, which could affect future earnings [41]. Company Strategy and Development Direction - The company is affirming long-term EPS growth targets of 4% to 6% and has announced a $2.74 billion five-year capital plan, an 11% increase over the previous plan [11][36]. - The strategy includes focusing on data centers and large load opportunities, which are expected to drive future growth [12][49]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the lack of interim rate support in Montana, which impacted earnings in 2024 [62]. - The company remains optimistic about future growth opportunities, particularly in regional transmission and large load development [33][34]. Other Important Information - The company has a strong focus on credit quality and plans to improve its financial position to support future growth [30]. - Regulatory updates indicate that the company reached a settlement with the South Dakota PUC regarding gas rates, while the Montana rate review is still in progress [38][39]. Q&A Session Summary Question: Why is 2024 the base year for growth? - Management clarified that 2024 was chosen as it is the most recent completed year, despite being impacted by interim rate issues [61][62]. Question: What is attracting data centers to Montana? - The company highlighted capacity, a cooler climate, and a carbon-free energy portfolio as key factors attracting data centers to Montana [81][82]. Question: When will the company earn its authorized return in Montana? - Management indicated that due to regulatory lag, it is difficult to predict when the authorized return will be achieved, but they are focused on constructive outcomes in the ongoing rate review [95][96]. Question: What are the drivers of the capital expenditure increases? - The capital plan is driven by the need for reliability improvements and system renewals, particularly in Montana Electric and gas transmission systems [129][130]. Question: What is the timeline for the Northpointe Connector project? - The company aims to move from a letter of intent to commercial agreements by mid-year 2025 [90].