Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $1.62 in Q1 2025, an 8% decline from the same period last year, but in line with expectations [31] - The Electric segment saw a 10% increase in earnings due to favorable weather conditions and increased sales volumes, while the Manufacturing segment's earnings decreased due to lower sales volumes and increased production costs [31][32] - The Plastics segment produced diluted earnings per share of $1.03, a decrease of 7% compared to the first quarter last year, driven by an 11% decline in average sales prices of PVC pipe [33] Business Line Data and Key Metrics Changes - The Electric segment's earnings growth was attributed to favorable weather and increased rider revenues from capital investments [31] - The Manufacturing segment faced challenges with soft end market demand, particularly in recreational vehicles and agriculture, leading to decreased earnings [32][23] - The Plastics segment experienced a 13% increase in sales volumes, offsetting some of the decline in pricing [33][26] Market Data and Key Metrics Changes - The company noted heightened uncertainty in the operating environment due to U.S. trade policy and macroeconomic conditions, impacting its businesses [7][8] - Domestic steel prices have increased due to tariffs, which are expected to impact raw material costs in the second half of 2025, but the company anticipates being able to pass these costs onto customers [11] - The company is monitoring end market conditions, particularly in housing starts and builder sentiment, which could affect sales volumes in the second half of the year [49] Company Strategy and Development Direction - The company is affirming its 2025 earnings guidance with a midpoint of $5.88 per share, focusing on capital investments in the Electric segment to drive growth [7][35] - Otter Tail Power aims to attract large loads, with over 1,000 megawatts of potential new loads in the pipeline, which could benefit existing customers by spreading fixed costs [20][22] - The company is committed to maintaining affordable electric service rates, with rates 30% below the national average [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current economic uncertainty, citing a strong balance sheet and ample liquidity [7][35] - The company is closely monitoring potential changes in tax policy that could impact renewable energy investments, particularly under the Inflation Reduction Act [11][12] - Management remains optimistic about the long-term fundamentals of the Manufacturing segment despite current challenges [25] Other Important Information - The company completed the expansion of its BTD Georgia facility, which is expected to increase production capacity and annual sales [29] - The Electric segment's capital investment plan is projected to produce a compounded annual growth rate of 9% through 2029 [15] - The company has a strong balance sheet with a consolidated equity layer of 62% and over $600 million in available liquidity [34] Q&A Session Summary Question: What kind of volumes are assumed in the guidance for the Plastics segment this year? - The company expects a lower single-digit increase in volume for the year, factoring in potential downturns in the second half due to housing starts and builder sentiment [48] Question: Why expect continued product price declines despite inflationary increases in input costs? - The company anticipates reverting to pre-2021 gross margin percentages, expecting a convergence of costs and prices by the end of 2027 [49] Question: Are there any impacts from competitors expanding capacity in core regions? - The company does not have complete visibility but anticipates competitors are likely adding incremental line capacity similar to its own efforts [51]

Financial Performance & Outlook - The company affirmed its 2025 earnings guidance of $5.68 to $6.08 per share[9] - Q1 2025 earnings reached $68.1 million, with a diluted EPS of $1.62[10] compared to $74.3 million and $1.77 diluted EPS in Q1 2024[12] representing an 8% decrease in net income[12] - The company projects a 14.2% Return on Equity (ROE) for 2025[13] - The electric segment is expected to have 7% earnings growth in 2025[13] Electric Segment & Rate Base - A net revenue increase of $13.1 million (6.18% increase) was achieved in the North Dakota rate case, implemented in March 2025[10, 19] - The North Dakota rate case resulted in an increased ROE to 10.1% (from 9.77%) and an equity layer of 53.5% (from 52.5%)[19] - The company anticipates significant rate base growth with a Compound Annual Growth Rate (CAGR) of 9.0%[22] Manufacturing & Plastics Segments - Sales prices in the plastics segment decreased by 11% in Q1 2025, while sales volumes increased by 13%[41] - Material input costs for the plastics segment decreased by 89%[41] - The BTD Georgia facility expansion was completed in Q1 2025, with the potential to generate up to $35 million in incremental annual revenue[10, 47] Capital Investments & Financing - The company plans total capital expenditures of $278 million in 2025[63] - Long-term debt issuances for Otter Tail Power Company are projected at $100 million for 2025[65] - The company anticipates normalized plastics earnings of $45-$50 million in 2028[70]

Financial Performance - Otter Tail Corporation reported earnings of $68.1 million, or $1.62 per diluted share, for Q1 2025, aligning with expectations [2]. - The company maintains its 2025 diluted earnings per share guidance range of $5.68 to $6.08, expecting a return on equity between 13.8% and 14.6% [7][25]. - Net Income for Q1 2025 was $68,099,000, down 8.4% compared to $74,338,000 in Q1 2024 [31]. - Basic Earnings Per Share (EPS) decreased to $1.63 in Q1 2025 from $1.78 in Q1 2024, reflecting a decline of 8.4% [31]. - Operating Income for Q1 2025 was $83,999,000, a decrease of 11.5% from $94,975,000 in Q1 2024 [31]. - Total Operating Revenues for Q1 2025 were $337,353,000, a decrease of 2.1% from $347,068,000 in Q1 2024 [31]. Segment Performance - Operating revenues for the Electric segment increased by $8.2 million, or 5.8%, driven by higher fuel recovery revenues and favorable weather conditions [15][17]. - The Manufacturing segment experienced a revenue decline of $17.7 million, or 17.8%, primarily due to a 13% decrease in sales volumes [19]. - The Plastics segment's operating revenues decreased slightly by $0.3 million, or 0.2%, despite a 13% increase in sales volumes [21]. - Total operating revenues for the electric segment reached $149,720 thousand, an increase from $141,488 thousand in the prior year, reflecting a growth of about 5% [34]. - The manufacturing segment reported operating revenues of $81,685 thousand, compared to $99,380 thousand in the previous year, indicating a decrease of approximately 18% [34]. - Net income for the electric segment was $24,708 thousand, up from $22,470 thousand year-over-year, marking an increase of about 10% [34]. Cash Flow and Liquidity - Consolidated cash provided by operating activities was $39.5 million for Q1 2025, down from $71.9 million in Q1 2024 [10]. - For the three months ended March 31, 2025, net cash provided by operating activities was $39,469 thousand, a decrease from $71,913 thousand in the same period of 2024, representing a decline of approximately 45% [33]. - Available liquidity as of March 31, 2025, was $607 million, including cash and credit facilities [12][14]. - Cash and cash equivalents decreased to $284,814,000 from $294,651,000, a decline of about 3.5% [32]. - The cash and cash equivalents at the end of the period were $284,814 thousand, compared to $238,158 thousand at the end of the previous year, representing an increase of approximately 19.6% [33]. - The company experienced a net change in cash and cash equivalents of $(9,837) thousand, contrasting with a positive change of $7,785 thousand in the same period last year [33]. Expenses and Costs - Total Operating Expenses increased slightly to $253,354,000 in Q1 2025 from $252,093,000 in Q1 2024, representing a 0.5% increase [31]. - Electric Production Fuel costs decreased to $14,321,000 in Q1 2025, down 19.5% from $17,694,000 in Q1 2024 [31]. - Electric Purchased Power costs increased significantly to $30,870,000 in Q1 2025, up 37.1% from $22,521,000 in Q1 2024 [31]. - Interest Expense rose to $11,553,000 in Q1 2025, an increase of 17.3% compared to $9,850,000 in Q1 2024 [31]. Assets and Liabilities - Total current assets increased to $651,274,000 from $630,041,000, representing a growth of approximately 3.9% year-over-year [32]. - Total noncurrent assets rose to $3,045,520,000 from $3,022,041,000, reflecting an increase of approximately 0.8% [32]. - Total assets reached $3,696,794,000, up from $3,652,082,000, indicating a growth of about 1.2% [32]. - Current liabilities totaled $248,420,000, compared to $230,990,000, marking an increase of approximately 7.5% [32]. - Short-term debt decreased to $58,853,000 from $69,615,000, a reduction of about 15.5% [32]. - Total noncurrent liabilities and deferred credits amounted to $737,500,073, showing a slight increase from the previous period [32]. - Shareholders' equity increased to $209,370,209 from $194,040,000, representing an increase of approximately 7.9% [32]. - Regulatory assets rose to $11,539,000 from $9,962,000, an increase of about 15.8% [32]. - Goodwill remained stable at $37,572,000 with no change from the previous year [32]. Capital Expenditures - Capital expenditures for Q1 2025 totaled $58.0 million, primarily focused on the Electric segment's projects [11]. - Capital expenditures for the three months ended March 31, 2025, were $58,012 thousand, down from $74,044 thousand in the same period of 2024, a reduction of approximately 22% [33]. Future Outlook - Otter Tail Power expects a compounded annual growth rate in rate base of 9% from 2025 to 2029, aiming for long-term earnings-per-share growth of 6% to 8% [8]. - The company plans to focus on expanding its electric segment and enhancing operational efficiencies to improve future performance [34].

Financial Performance - In 2024, Otter Tail Corporation achieved a net income of $301.7 million, or $7.17 per diluted share, representing a 3% increase from $294.2 million, or $7.00 per diluted share, in 2023[208]. - Net income for 2024 increased to $301,662, up 2.5% from $294,191 in 2023[322]. - Basic earnings per share rose to $7.22 in 2024, compared to $7.06 in 2023, reflecting a 2.3% increase[322]. - Total operating revenues for 2024 were $1,330,548, a decrease of 1.3% from $1,349,166 in 2023[322]. - Operating income for 2024 was $380,250, a slight increase from $377,919 in 2023[322]. - Total shareholders' equity rose to $1,668,499 in 2024, an increase of 15.6% from $1,443,006 in 2023[320]. Segment Performance - The Electric segment reported an 8% earnings growth in 2024, increasing from $84.4 million in 2023 to $91.0 million, driven by higher retail revenue from an interim rate increase in North Dakota[209]. - The Manufacturing segment experienced a 36% decline in earnings, dropping from $21.5 million in 2023 to $13.7 million in 2024, primarily due to lower sales volumes and decreased gross profit margins[210]. - The Plastics segment's earnings grew by 7%, from $187.7 million in 2023 to $200.7 million in 2024, attributed to increased sales volumes despite a decrease in gross profit margins[211]. - Net income for the Electric segment in 2024 was $90,963,000, an increase of 7.3% from $84,424,000 in 2023[389]. - Net income for the Manufacturing segment in 2024 was $13,681,000, a decrease of 36.5% from $21,454,000 in 2023[391]. - Net income for the Plastics segment in 2024 was $200,747,000, an increase of 6.5% from $187,748,000 in 2023[392]. Revenue and Expenses - Operating revenues decreased by $18.6 million in 2024, with the Electric segment's revenues down by 1% and the Manufacturing segment's revenues down by 15%[222]. - Operating expenses decreased by $20.9 million in 2024, mainly due to lower purchased power costs in the Electric segment[223]. - Selling, General, and Administrative Expenses in Corporate increased by $12.4 million, or 102.9%, primarily due to increased insurance expenses[239]. - Total operating revenue for the company in 2024 was $1,330,548,000, a decrease of 8.9% from $1,349,166,000 in 2023[399]. Cash Flow and Liquidity - The company reported a net cash provided by operating activities of $452.7 million for 2024, an increase of $48.2 million compared to $404.5 million in 2023[252]. - Net cash used in investing activities rose to $411.4 million in 2024, up by $122.1 million from $289.3 million in 2023, primarily due to increased capital expenditures[255]. - The total available liquidity as of December 31, 2024, was $606.3 million, compared to $479.8 million as of December 31, 2023[251]. - The company has $311.6 million of available liquidity under credit agreements as of December 31, 2024[250]. Capital Expenditures and Investments - Capital expenditures for the Electric segment in 2024 were $301 million, with anticipated total capital expenditures of $1.426 billion from 2025 to 2029[259]. - Capital expenditures increased to $358,650,000 in 2024, compared to $287,134,000 in 2023, reflecting a 25% rise[325]. - The company made a $50.1 million investment in U.S. treasuries in April 2024, maturing in September 2026[401]. Debt and Interest - Interest expense increased by $4.1 million in 2024 due to the issuance of an additional $120.0 million of long-term debt[224]. - As of December 31, 2024, OTP had $947 million of principal outstanding under long-term debt arrangements[270]. - OTP's interest-bearing debt to total capitalization ratio was 0.47 to 1.00 as of December 31, 2024, with an interest and dividend coverage ratio of 3.34 to 1.00[272]. - The weighted-average interest rate on outstanding borrowings was 5.61% as of December 31, 2024[267]. Regulatory and Taxation - The effective tax rate improved to 17.8% in 2024 from 19.1% in 2023, resulting in a $4.1 million decrease in income tax expense[225]. - OTP requested a net increase in annual revenue of $17.4 million, or 8.4%, in its North Dakota rate case filing[242]. - The NDPSC approved a revenue requirement of $225.6 million, with a net increase of $13.1 million, or 6.18%, based on the settlement agreement[243]. Goodwill and Impairment - The company changed its annual goodwill impairment test date to October 1st in 2024 to better align with year-end financial reporting[289]. - No goodwill impairment was identified in the fourth quarter of 2024, with estimated fair values substantially exceeding carrying values[294]. Other Financial Metrics - Total assets increased to $3,652,082 in 2024, up 12.6% from $3,242,568 in 2023[320]. - Total current liabilities remained stable at $309,790 in 2024, slightly up from $309,757 in 2023[320]. - Long-term debt increased to $943,734 in 2024, up 14.5% from $824,059 in 2023[320]. - Regulatory assets decreased from $16,127 in 2023 to $9,962 in 2024, a decline of 38.5%[320]. - Regulatory liabilities increased from $276,547 in 2023 to $288,928 in 2024, reflecting a growth of 4.9%[320].

Earnings Conference Call Q4 2024 Forward Looking Statement Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "can," "could," "estimate," "expect," "future," "goal," "intend," "likely," "may," "opportunity," "outlook," "plan," "possible," "potential," "predict," "probable," "projected," "should," "target," "will," "would ...

Financial Performance - Otter Tail Corporation achieved record annual diluted earnings per share of $7.17 in 2024, up from $6.88 in 2023[2] - The Electric segment generated net income of $90.96 million, a 7.7% increase from $84.42 million in 2023, despite a 0.7% decrease in operating revenues[11] - The Plastics segment reported record earnings of $201 million, driven by a 27% increase in sales volumes, although sales prices decreased by 12% compared to the previous year[17] - The Manufacturing segment experienced a 14.9% decline in operating revenues to $342.59 million, with net income dropping 36.2% to $13.68 million due to a 15% decrease in sales volumes[15] - Operating revenues for the twelve months ended December 2024 are reported at $1.331 billion, a slight decrease from $1.349 billion in 2023[33] - Net income for the twelve months ended December 2024 is $301.662 million, compared to $294.191 million in 2023, indicating a year-over-year increase[33] - Operating income for the three months ended December 2024 is $66.824 million, down from $70.080 million in the same period of 2023[33] - Total operating revenues for the twelve months ended December 2024 were $1,330,548, a decrease of 1.3% from $1,349,166 in 2023[36] - Net income for the twelve months ended December 2024 was $301,662, an increase of 2.5% compared to $294,191 in 2023[36] Cash Flow and Liquidity - Consolidated cash provided by operating activities reached a record $452.7 million in 2024, up from $404.5 million in 2023[8] - The total available liquidity as of December 31, 2024, was $606.3 million, comprising $311.6 million in credit facilities and $294.7 million in cash[9] - Cash and cash equivalents were reported at $294,651,000 in 2024, up from $230,373,000 in 2023, indicating an increase of about 27.9%[34] - Net cash provided by operating activities for the twelve months ended December 2024 was $452,731, compared to $404,499 in 2023[35] - The company reported a net change in cash and cash equivalents of $64,278 for the twelve months ended December 2024[35] Capital Expenditures and Investments - Capital expenditures for 2024 totaled $358.7 million, primarily focused on the Electric segment, with a revised 5-year capital spending plan of $1.4 billion[8] - Total capital expenditures for 2024 are projected at $359 million, with a five-year total of $1.555 billion from 2025 to 2029[27] - The Electric segment's capital expenditures for 2024 are $301 million, contributing to a total of $1.426 billion over the next five years[27] - The Manufacturing and Plastics segments' capital expenditures are projected at $129 million over the next five years, focusing on equipment upgrades and capacity expansion[27] Assets and Liabilities - Total current assets increased to $630,041,000 in 2024 from $570,170,000 in 2023, representing an increase of approximately 10.5%[34] - Total noncurrent assets rose to $3,022,041,000 in 2024, up from $2,672,398,000 in 2023, indicating a growth of about 13.1%[34] - Total assets reached $3,652,082,000 in 2024, compared to $3,242,568,000 in 2023, marking an increase of approximately 12.6%[34] - Current liabilities totaled $309,790,000 in 2024, a decrease from $309,975,000 in 2023, reflecting a slight reduction[34] - Long-term debt stood at $943,734,000 in 2024, compared to $824,059,000 in 2023, showing an increase of about 14.5%[34] - Shareholders' equity increased to $2,091,402,000 in 2024 from $1,855,553,000 in 2023, representing a growth of approximately 12.7%[34] - Regulatory assets decreased to $9,962,000 in 2024 from $16,127,000 in 2023, a decline of approximately 38.5%[34] - Inventories slightly decreased to $148,885,000 in 2024 from $149,701,000 in 2023, reflecting a minor reduction[34] - Other noncurrent assets increased to $66,416,000 in 2024 from $51,377,000 in 2023, indicating a growth of approximately 29.3%[34] Future Outlook - Otter Tail Corporation updated its long-term earnings per share growth rate target to 6-8%, up from 5-7%[6] - The company anticipates 2025 diluted earnings per share to range between $5.68 and $6.08, reflecting a 7% expected growth in the Electric segment[25] - The Electric segment's return on equity was 19.3% for 2024, with a target of 13.8% to 14.6% for 2025[26] - The Electric segment's average rate base is expected to grow from $1.892 billion in 2024 to $2.909 billion by 2029, reflecting an annual growth rate of 9.0%[27] - The average rate base is anticipated to increase by 12% in 2025 compared to 2024, enhancing returns[28] - A planned maintenance outage at Coyote Station is scheduled for 2025, which may impact operational performance[28] - The company expects continued declines in product sales prices throughout 2025, following a retreat from 2022 highs[28] Segment Performance - Electric segment operating revenues for the three months ended December 2024 were $139,818, up 5.5% from $132,362 in 2023[36] - Manufacturing segment net income for the twelve months ended December 2024 was $13,681, down 36.6% from $21,454 in 2023[36] - Plastics segment operating revenues for the three months ended December 2024 were $96,661, an increase of 8.7% from $89,105 in 2023[36]

Core Viewpoint - Otter Tail (OTTR) has experienced a downtrend with a 5.3% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to analysts' positive earnings outlook [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) for OTTR is currently at 28.29, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound [5]. - RSI is a momentum oscillator that ranges from 0 to 100, with a reading below 30 typically indicating that a stock is oversold [2]. - Technical analysis suggests that stocks oscillate between overbought and oversold conditions, and the RSI can help identify potential reversal points [3]. Group 2: Earnings Estimates - There has been a strong consensus among sell-side analysts to raise earnings estimates for OTTR, resulting in a 1.7% increase in the consensus EPS estimate over the last 30 days [7]. - An upward trend in earnings estimate revisions is generally associated with price appreciation in the near term [7]. - OTTR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, indicating a strong potential for a turnaround [8].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Otter Tail (OTTR) as a strong value stock based on its Zacks Rank and valuation metrics [2][3][6] Company Analysis - Otter Tail (OTTR) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is among the best value stocks currently available [3] - The company's price-to-book (P/B) ratio is 2.07, which is lower than the industry average of 2.41, suggesting it may be undervalued [4] - OTTR's P/B ratio has fluctuated between 1.91 and 2.86 over the past 52 weeks, with a median of 2.38 [4] - The price-to-cash flow (P/CF) ratio for OTTR is 8.31, which is also lower than the industry average of 10.81, further indicating potential undervaluation [5] - Over the past year, OTTR's P/CF has ranged from 7.68 to 10.60, with a median of 8.92 [5] - The combination of these metrics suggests that OTTR is likely undervalued and has a strong earnings outlook, making it an attractive investment opportunity [6]

Financial Performance - Operating Revenues decreased by $20.0 million to $338.0 million, a decline of 5.6% compared to the previous year[74]. - Operating Expenses decreased by $6.4 million to $230.5 million, primarily due to lower sales volumes in the Manufacturing segment and reduced fuel costs in the Electric segment[73]. - Interest Expense increased by $2.0 million to $11.2 million, attributed to the issuance of an additional $120.0 million of long-term debt[73]. - Net Income decreased by $6.5 million to $85.5 million, reflecting a decline of 7.1% year-over-year[74]. - Retail Revenues increased slightly by $0.3 million to $110.8 million, while Transmission Services Revenues rose by $1.5 million to $15.2 million[75]. - Wholesale Revenues decreased significantly by $1.6 million to $3.1 million, a drop of 33.9% due to reduced sales volumes[75]. - Operating Income for the Electric segment increased by 10.0% to $36.5 million, supported by favorable weather conditions[80]. - Operating Income for the Manufacturing segment decreased by 69.6% to $2.7 million, primarily due to a 13% decrease in sales volumes[82]. - Consolidated Operating Revenues for the nine months ended September 30, 2024, decreased by $7.4 million, or 0.7%, to $1,027,437, primarily due to decreased sales prices in the Plastics segment and decreased sales volumes in the Manufacturing segment[84]. - Operating Income increased by $5.6 million, or 1.8%, to $313,426, driven by lower operating expenses which decreased by $13.0 million, or 1.8%[84]. - Net Income for the period increased by $10.4 million, or 4.4%, to $246,812, with an effective tax rate decrease from 19.7% to 18.8%[84]. Segment Performance - Electric segment Total Operating Revenues decreased by $11.3 million, or 2.9%, to $384,696, impacted by a $15.4 million decrease in Purchased Power costs due to a 17% decrease in the price of purchased power[85][89]. - Retail Revenues in the Electric segment decreased by $9.0 million, or 2.6%, primarily due to a $14.8 million decrease in fuel recovery revenues and unfavorable weather conditions[87]. - Plastics segment Operating Revenues increased by $37.9 million, or 11.5%, to $366,780, driven by a 28% increase in sales volumes despite a 13% decrease in sales prices[91]. - Operating Income in the Plastics segment increased by $18.3 million, or 9.1%, to $219,136, reflecting strong demand and sales volume growth[91]. Expenses and Income - General and Administrative Expenses surged by $4.4 million to $5.4 million, a 463.1% increase, mainly due to higher insurance and employee benefit costs[83]. - General and Administrative Expenses increased by $5.441 million, or 68.0%, from $8.003 million in 2023 to $13.444 million in 2024[97]. - Operating Loss rose by $5.436 million, or 67.3%, from $8.081 million in 2023 to $13.517 million in 2024[97]. - Other Income increased by $3.0 million to $5.4 million, driven by increased investment income from the Plastics segment[73]. - Other Income increased by $6.7 million, primarily due to increased investment income from short-term cash equivalent investments and long-term marketable securities[84]. Cash Flow and Liquidity - Net Cash Provided by Operating Activities increased by $4.3 million, from $318.495 million in 2023 to $322.775 million in 2024[105]. - Net Cash Used in Investing Activities increased by $80.1 million, from $232.018 million in 2023 to $312.166 million in 2024[106]. - Net Cash Provided by Financing Activities increased by $55.3 million, from a net cash used of $16.259 million in 2023 to $39.038 million in 2024[107]. - Total available liquidity as of September 30, 2024, was $543.8 million, compared to $468.1 million as of September 30, 2023[102]. Capital Expenditures and Investments - The company plans to acquire a solar facility for $23.6 million, with closing expected in the second half of 2025[109]. - The company has a capital expenditure plan that includes investments in electric generation facilities and manufacturing facilities, subject to review based on various factors[108]. Debt and Compliance - The company is in compliance with all financial covenants as of September 30, 2024[102]. - OTP issued $120.0 million of senior unsecured notes in March 2024, consisting of $60.0 million of 5.48% notes due April 1, 2034, and $60.0 million of 5.77% notes due April 1, 2054, to repay short-term borrowings and fund capital expenditures[116]. - As of September 30, 2024, the company had $947.0 million of principal outstanding under long-term debt arrangements, with maturities ranging from 2026 to 2054[116]. - OTC's interest-bearing debt to total capitalization ratio was 0.38 to 1.00, and OTP's was 0.48 to 1.00 as of September 30, 2024, both within the required limits[118]. - OTC's interest and dividend coverage ratio was 10.4 to 1.00, while OTP's was 3.27 to 1.00 as of September 30, 2024, indicating strong coverage[118]. - The company remains in compliance with all financial covenants as of September 30, 2024, with no priority indebtedness outstanding for both OTC and OTP[118]. Regulatory and Market Information - The North Dakota Rate Case filed by OTP requests a net increase in annual revenue of $22.5 million, or 10.9%, to adjust for regulatory changes and cost recovery mechanisms[96]. - There have been no material changes to the company's critical accounting policies and estimates since the last Annual Report on Form 10-K[119]. - The company reported no material changes in market risk from the previous disclosures in the Annual Report on Form 10-K for the year ended December 31, 2023[120].

Q3 2024 Earnings Conference Call November 5, 2024 Forward-Looking Statement Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "can," "could," "estimate," "expect," "future," "goal," "intend," "likely," "may," "outlook," "plan," "possible," "potential," "predict," "probable," "projected," "should," "target," "will," "wou ...