NorthWestern (US:NWE)2021-02-12 23:30Financial Data and Key Metrics Changes - Net income for 2020 was $155.2 million, a decrease of approximately $47 million or 23% compared to 2019 [8][12] - Diluted EPS was $3.06, down $0.92 or 23% from 2019, while non-GAAP adjusted EPS was $3.35, which is $0.07 or 2% lower than in 2019 [8][28] - Operating expenses decreased by $6.8 million or 1%, with a significant reduction in OG&A by over $20 million or down 6.6% [18][19] Business Line Data and Key Metrics Changes - Gross margins decreased by approximately $47 million or 5%, with both electric and gas segments impacted by unfavorable weather and COVID-19 [12][13] - Customer growth partially offset the negative impacts on gross margin, but disallowance on PCCAM resulted in approximately $9 million loss [13][14] Market Data and Key Metrics Changes - Unfavorable weather in 2020 resulted in a pretax detriment of $9.8 million compared to normal and $17.1 million compared to 2019 [15] - The company experienced a significant increase in uncollectible accounts due to COVID-19, costing an additional $3 million [20][31] Company Strategy and Development Direction - The company plans to invest in owned capacity generation in Montana exceeding $200 million over the next three years, pending approval from the Montana Public Service Commission [10][49] - A focus on capital investment is evident, with a total capital forecast of $2.1 billion over five years, including significant generation projects in South Dakota [45][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to operate effectively despite COVID-19 challenges, highlighting a strong safety record and customer satisfaction [9][33] - The company expects to see a recovery in commercial and industrial segments as COVID-19 impacts lessen in the second half of 2021 [36] Other Important Information - The Board of Directors declared a quarterly dividend of $0.62 per share, reflecting a 3.3% increase [8] - The company is utilizing a $200 million three-year ATM program for equity issuance, indicating a strategic approach to financing [37][78] Q&A Session Summary Question: Impact of COVID-19 on 2021 guidance - Management expects COVID-19 effects to linger through the first two quarters of 2021, with a more normalized environment anticipated in the second half [62][66] Question: Potential for more than $200 million CapEx - Management is confident that at least one project will exceed the $200 million threshold in the current RFP, with future RFPs expected to provide additional opportunities [67][70] Question: Rate cases in Montana - Management confirmed plans to file a rate case in Montana, focusing on preapproval filings associated with supply plan implementation [83] Question: Disallowance on Colstrip - The disallowance of $9.4 million is final, and management expressed disappointment with the commission's decision but is focused on future improvements [86][88]