Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How should we interpret the change in guidance around equity issuance from no-planned equity until 2027 to the current language of no near-term equity issuance? Is there a change there? A: Jason Vollmer, CFO: No real change from what we talked about in November. We updated our capital forecast and increased capital, especially in 2026. We don't expect any equity issuance in 2025, but we would look to see some to facilitate growth projects in 2026.
Q: Can you provide more color around the northwest North Dakota gas potential or pipeline expansion, including customer details, capital volumes, and earnings contribution in 2028? A: Nicole Kivisto, CEO: The project is to serve a natural gas-powered electric-generating station in northwest North Dakota. The capital increase is baked into our five-year capital budget and anticipated in our EPS guidance of 6% to 8%. We haven't quantified the capital specifically but expect a step change in the outer years.
Q: Could you break down the 2025 guidance more detailed, and what could get you to the high end versus the low end? A: Nicole Kivisto, CEO: Key drivers for the higher end include strong storage performance, normal weather, and rate case activity. O&M containment also provides room within the range. Jason Vollmer, CFO: We expect partial year benefits from the Washington rate case and timing of data center load ramp-up could impact the range.
Q: Any insight into the Bakken East non-binding MOU and next steps? Are there preliminary investment amounts? A: Nicole Kivisto, CEO: We completed the non-binding open season and are pleased with the interest. Next steps include moving to binding commitments before deciding on the project. The project would be incremental to our five-year forecast. Rob Johnson, President of WBI Energy: We are finalizing project details to determine size and length.
Q: Are there any other drivers you want to highlight for the year-to-year earnings comparison? A: Jason Vollmer, CFO: We saw a 22% increase year-over-year, setting a high bar for growth. The pipeline and utility segments performed well. We expect continued growth, with a long-term EPS growth rate of 6% to 8%. Nicole Kivisto, CEO: We've delivered an 8% compound annual growth rate over the last five years, giving us confidence in our future growth projections.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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