BUTTE, Mont. and SIOUX FALLS, S.D., April 6, 2020 /PRNewswire/ -- NorthWestern
Corporation d/b/a NorthWestern Energy (NYSE: NWE) is one of many
companies providing essential services during this national
emergency related to the COVID-19 pandemic. We have implemented a
comprehensive set of actions to help our customers, communities,
and employees, all while maintaining our commitment to reliable
service and continuing to monitor and adapt our financial business
plan for the evolving COVID-19 challenges. In addition to
announcing an incremental $300,000 in
charitable contributions and aid specifically to assist the
communities we serve, we have taken extra precautions for our
employees who work in the field and for employees who continue to
work in our facilities, and we have implemented work from home
policies where appropriate. We do not anticipate any employee
layoffs and are continuing to hire for critical positions to
maintain our high level of reliability and customer service. We
continue to implement strong physical and cyber-security measures
to ensure that our systems remain functional in order to both serve
our operational needs with a remote workforce and keep them running
to ensure uninterrupted service to our customers. We currently
cannot estimate the potential impact to our financial position,
results of operations and cash flows. We have informed both our
retail customers and state regulators that disconnections for
non-payment will be temporarily suspended. Our level of service to
our 734,800 customers remains uninterrupted.
This is a rapidly evolving situation that could lead to extended
disruption of economic activity. As of today, the most significant
impact to NorthWestern Energy's sales volumes has been related to
mild weather and we have not experienced major declines across our
business related to COVID-19. Nonetheless, as a result of the
spread of COVID-19 in our service territories and shelter in place
restrictions, we may experience impacts to our financial results
going forward. We expect to provide an update in our quarterly
report on Form 10-Q and on our first quarter earnings webcast and
call. We remain on track for our approximately $400 million capital plan with little disruption
at this time. There are no significant supply chain issues, so far.
We will continue to closely manage and monitor developments in our
supply chain.
During this time, we continue to maintain adequate liquidity to
operate our business and fund our ongoing capital program. Our
$400 million revolving credit
facility, which expires December 12,
2021, contains an accordion feature that allows NorthWestern
Energy to increase our liquidity another $25
million under certain conditions. We also have a
$25 million credit facility that
provides swing-line borrowing capability, which expires
March 27, 2022. As a precautionary
measure in order to increase our cash position and preserve
financial flexibility in light of current uncertainty in the
markets resulting from the COVID-19 outbreak, we recently entered
into a $100 million 364-day term loan
with two of our relationship banks. This facility will allow us to
temporarily increase our targeted minimum liquidity threshold to
$200 million, up from our
long-standing $100 million level. In
addition, we continue to monitor the capital markets and expect to
issue at least $150 million of
long-term debt during 2020 to fund our currently disclosed capital
investment program and increase revolver availability. As
previously disclosed, we were considering an equity issuance in
late 2020 or early 2021 to maintain and protect our current credit
ratings. Our current plans may delay our anticipated equity
issuance into 2021.
In addition, we sponsor two pension plans, which were
approximately 83% funded on a GAAP basis at December 31, 2019. NorthWestern follows a
de-risked glide-path for its pension plan assets with nearly 60%
and 80% of the portfolio invested in long-dated bonds for our
Montana and South Dakota plans, respectively. As a result,
plan investments have been less impacted and the GAAP funding
status of these plans has remained near the December 31st funded status throughout
the ongoing market volatility. Based on our January 1, 2020 valuation, we do not anticipate
any incremental funding requirements (or expense) for 2020.
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 "Significant Items Not
Contemplated in Earnings". Forward-looking statements often address
our expected future business and financial performance, and often
contain words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," or
"will." These statements are based upon our current
expectations and speak only as of the date hereof. Our
actual future business and financial performance may differ
materially and adversely from those expressed in any
forward-looking statements as a result of various factors and
uncertainties, including, but not limited to:
- adverse determinations by regulators, as well as potential
adverse federal, state, or local legislation or regulation,
including costs of compliance with existing and future
environmental requirements, could have a material effect on our
liquidity, results of operations and financial condition;
- 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 cost
of sales 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.
- the direct or indirect effects resulting from the recent
outbreak of the novel coronavirus (COVID-19) pandemic on our
revenue, our operations and our ability to complete construction
projects;
Our 2019 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.
About NorthWestern Energy (NYSE: NWE)
NorthWestern
Corporation, doing business as NorthWestern Energy, provides
electricity and / or natural gas to approximately 734,800 customers
in Montana, South Dakota and Nebraska. We have generated and distributed
electricity in South Dakota and
distributed natural gas in South
Dakota and Nebraska since
1923 and have generated and distributed electricity and distributed
natural gas in Montana since 2002.
More information on NorthWestern Energy is available on the
company's Web site at www.northwesternenergy.com.
View original
content:http://www.prnewswire.com/news-releases/northwestern-energys-response-to-covid-19-and-announces-entry-into-100-million-364-day-term-loan-301035444.html
SOURCE NorthWestern Energy
