Christopher Ellinghaus • Siebert Williams Shank & Co.

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President and CEO Jeffrey Householder stated that tariff impacts have been minimal so far, though they contributed to cost increases for the WRU project. He expressed confidence in managing the ~$3 million WRU margin impact for the year through operational efficiencies and noted no significant impact on tourism or housing starts yet. EVP and CFO Beth Cooper added that earnings seasonality should revert closer to historical patterns by 2027, but will always be influenced by the timing of large capital projects and regulatory outcomes.

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CEO Jeffrey Householder and EVP James Moriarty explained that recent executive orders are viewed as favorable and do not alter their core three-pronged strategy. Regarding the RSAM issue, they noted the company has proactively moved to a traditional depreciation study, making the court's decision less impactful. Moriarty clarified the FERC filing was made promptly after careful review. CFO Beth Cooper added that while the quarter started mild, colder weather in late December positively impacted propane results.

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Jeffrey Householder, Chair, President & CEO, noted that FCG opportunities have been more robust than anticipated, citing the $70 million Miami Inner Loop project as an example, with construction expected to start in Q1. Beth Cooper, EVP & CFO, attributed the 'additional opportunities' to synergies, business transformation efforts like the new SAP system, and regulatory successes. Both executives credited the Marlin business improvement to a strategic shift toward longer-term contracts and growing involvement in RNG transportation.

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President and CEO Nicole Kivisto explained that the capital-light model for data centers was a unique, accretive opportunity in a constrained area that benefited both earnings and retail customers. She affirmed a long-term positive outlook on the Bakken, driven by an increasing gas-to-oil ratio and the need for takeaway capacity. While acknowledging Idaho's high growth, she emphasized the company's focus on achieving 7-8% rate base growth. Executive Jason Vollmer clarified that restated financials primarily reflect the removal of Everus as a discontinued operation, with related dis-synergy costs remaining in continuing operations.

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Nicole Kivisto, President & CEO, attributed the guidance increase to strong year-to-date performance, favorable weather, and significant momentum in the pipeline business. She and Rob Johnson, President of WBI Energy, confirmed that while new rates and transportation volumes were strong, outsized performance in the gas storage market was the primary driver of the pipeline's success. Johnson also detailed that the small pipeline acquisition is a strategic fit expected to generate approximately $3 million in annual earnings. Regarding Montana, Kivisto noted that while the company is pursuing its rate request, the state represents only 5% of the total rate base, highlighting the benefit of MDU's jurisdictional diversity.

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CEO Lisa Grow and executive Adam Richins stated it was too early to see major economic impacts on agriculture, noting positive water conditions. Grow confirmed that frequent rate cases will likely continue given capital plans, unless new mechanisms are approved. Regarding multi-year plans, VP Tim Tatum said it's an option but not currently being pursued. On wildfire, General Counsel Jae Hilton noted that existing state damage caps are favorable. Richins confirmed dispatchable resources are planned for 2029 and 2030. Finally, Grow and Richins described a steady and strong flow of inquiries from large load customers.

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President and CEO Lisa Grow stated they are monitoring executive orders, hoping for streamlined permitting, but do not currently see a change to their least-cost resource planning. Executive Adam Richins noted potential for fewer restrictions on thermal generation. On customer growth, Lisa Grow explained that the forecast is conservative, only including projects with signed agreements, and that growth is heavily skewed to large commercial and industrial customers. CFO Brian Buckham quantified the property tax refund as a pretax amount of approximately $10 million recorded in 2024.

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SVP & CFO Brian Buckham explained that the dividend growth rate was slowed to reinvest in the business, with a long-term goal of returning to a 60-70% payout ratio, but growth won't necessarily track earnings lumpiness. He clarified the ADITC amortization is adjusted quarterly to meet the year-end target based on operating performance. President & CEO Lisa Grow attributed the modest irrigation sales growth to the cadence of the growing season. Idaho Power President & COO Adam Richins stated they hope to hear from the prospective large customers within the next couple of months.

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Travis Meyer, Director of Corporate Development and Investor Relations, clarified that the customer account change was a reporting adjustment for street lighting and the heating degree day metric is a rolling 10-year average. President and CEO Brian Bird stated they will not specify new capacity needs until LOIs are converted to contracts. He confirmed there is adequate land at or around Colstrip for a future gas or nuclear replacement. He also affirmed the 90-day prudency review timeline in the new legislation is appropriate and does not overlap with the initial approval process.

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CEO Brian Bird noted that while interim rate timing has varied historically, the company can implement rates after 270 days. He believes the commission should understand the stock's underperformance from its high dividend yield. CFO Crystal Lail added that they consistently argue that a strong regulatory framework lowers customer costs. Regarding the North Plains Connector, Bird confirmed they are actively evaluating their position.

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President and CEO Christian Brown responded that the primary focus is on driving profitable volume growth, not margin expansion, with the exception of normalizing gas margins. He explained the 3-year storm revenue average is a cautious baseline to enforce discipline in growing the core business. While the year-end gas spending was largely a budget catch-up, CFO Greg Izenstark noted that the gas segment constitutes over 50% of the current new business pipeline, indicating strong future opportunities.

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President and CEO Karen Haller confirmed that formula rates would likely lead to more linear growth and clarified that the evaluation of the Centuri separation involves all market conditions, not just price. Justin Brown, President of Southwest Gas Corporation, added that the gas adequacy needs in Arizona could indeed represent a CapEx upside as broad economic development benefits their core business.

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President Ted Geisler stated that the priority is finalizing the rate case before extending the CapEx forecast and expressed confidence in the late 2026 timeline. Regarding nuclear, he described the current phase as an early assessment of technology and locations with partners, emphasizing no project has been committed to yet.

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Executive Jeff Thiede stated that the company's diversified model allows it to pivot if markets like renewables are impacted, though he noted that segment is currently growing. He confirmed a continued trend toward utility undergrounding, driven by factors like wildfire risk, but hasn't seen it become a major feature for data centers yet. Regarding storm work, he explained that the company does not provide that level of financial detail and that such work, while important, pulls resources from planned projects.

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Executive Jeff Thiede stated that while the company is monitoring potential impacts like tariffs, its diversified business model allows it to pivot to growing markets. He confirmed a continued trend toward grid undergrounding by utility customers, a core competency for Everus. Regarding storm work, he explained that while the company is honored to provide restoration services, it is not planned for and involves trade-offs by pulling crews from regularly scheduled, profitable work. He did not quantify the specific impact for Q4.

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President & CEO Linn Evans indicated post-2029 growth could require consequential capital for dispatchable resources, transmission, and renewables, potentially under a traditional utility model. He confirmed support for federal wildfire legislation introduced via EEI and noted that while it's early, new federal policies could streamline permitting on federal lands. SVP & CFO Kimberly Nooney added that some of these efforts could positively impact the current 5-year capital plan.

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Linn Evans, President and CEO, described the load growth from existing data center customers as gradual, with Meta coming online in late 2026, and noted increased inbound interest for AI-related projects. He identified transmission and gas storage as key CapEx opportunities. Kimberly Nooney, SVP and CFO, explained that disciplined O&M management, targeting a 2.5% annual increase, is key to offsetting headwinds and achieving full-year guidance. Marne Jones, SVP of Utilities, added that pulling maintenance forward typically advances it by a couple of years.

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CFO Roberto Bel explained that the $0.15 guidance range is consistent with the prior year's width. He detailed the Sunlight Advantage sale's ~$0.30 accretion in FY25 from the one-time gain, with minor dilution that fades to zero over 3-4 years. CEO Steve Westhoven expressed confidence in the CEV project construction schedule and confirmed the 4 Bcf Leaf River capacity expansion will be matched with contracts as it comes online.

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CEO David Anderson explained the rate case outcome, expressing disappointment with the $13.7 million disallowance for line extension allowances but noting the bulk of the case was settled constructively. He acknowledged the need for more clarity from the commission on a multiyear rate plan. CFO Raymond Kaszuba attributed the strength in the "other" segment to higher gas storage revenues and favorable results from the water and wastewater utilities.

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Executive Justin Palfreyman noted that while the water M&A market has slowed due to capital costs, a robust pipeline of tuck-in acquisitions remains. CFO Brody Wilson and CEO David Anderson acknowledged the valuation benefits of separate water segment reporting, stating they are actively considering it. Regarding early guidance, CEO David Anderson confirmed they will consider it after the rate case receives final approval.

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President and CEO Chuck MacFarlane addressed the questions, stating that discussions for new large loads (data centers, clean fuels) are progressing, with potential agreements in the next two quarters. He reiterated the Plastics segment's normalization target of $45-$50 million in net income by 2026. MacFarlane clarified that import pressures from lower freight costs primarily affect T.O. Plastics. He also explained that the new Arizona capacity will improve sales volumes in the Southwest by allowing the company to fulfill complete orders locally.

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President and CEO Chuck MacFarlane stated that he expects developments on new large loads within the next two quarters and reaffirmed the Plastics segment's normalized net income target of $45-$50 million by the 2026 timeframe. He attributed import pressures in the T.O. Plastics business to lower overseas freight costs. Regarding the new Arizona facility, he explained it will improve sales volumes by enabling the fulfillment of complete large-diameter pipe orders locally, which was previously cost-prohibitive to ship from North Dakota.

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President and CEO Brian Gray explained the Northwest backlog decline was due to comparison against an abnormally high prior-year period that included a large project. He noted the Wyoming project was delayed to next year, not canceled. CFO Nathan Ring stated M&A is funded with cash and debt, but the company is open to using stock if it makes sense for a transaction. He also clarified that current M&A costs are considered recurring and not adjusted out.

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President & CEO Maria Pope attributed the 'chunky' growth to the industrial segment, particularly data centers and semiconductors. She explained that strong power cost performance was due to internal generation excellence, resource integration, and favorable regional market dynamics. Pope affirmed that in RFP planning, the company balances reliability, affordability, and clean energy goals to serve all customers effectively.

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