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NW Natural Holdings Reports Solid First Quarter 2025 Results

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Signed Agreement to Acquire Another Texas Gas Utility; Reaffirmed 2025 Adjusted EPS Guidance

PORTLAND, Ore.--(BUSINESS WIRE)-- Northwest Natural Holding Company (NYSE: NWN) (NW Natural Holdings) reported financial results and highlights, including:

  • Reported earnings per share (EPS) of $2.18 and achieved adjusted EPS1 of $2.28 for the first quarter of 2025, compared to EPS of $1.69 for the same period in 2024
  • Closed the acquisition of SiEnergy, a Texas high-growth gas utility, in early January 2025
  • Signed agreement to purchase Hughes Gas Resources, Inc. (Hughes), adding scale to the SiEnergy gas utility platform in Texas
  • Added nearly 84,000 gas and water utility connections in the last 12 months for a combined growth rate of 9.6% as of March 31, 2025, mainly driven by the acquisition of SiEnergy
  • Strong first quarter organic customer growth of 2.2% (annualized) on a consolidated basis with new meter sets on track for the year and growth driven by SiEnergy
  • Oregon gas customers received bill credits totaling over $15 million in early 2025 related to strong gas supply management from our storage assets and pipeline capacity optimization. Over the last 20 years, we've credited NW Natural customers' bills with cumulative savings of over $280 million, helping keep rates affordable
  • Invested $102 million in our gas and water systems in the first quarter of 2025 to support growth and greater reliability and resiliency
  • For the fourth year in a row, honored as one of the World's Most Ethical Companies® by Ethisphere2
  • Updated 2025 GAAP EPS guidance to $2.65 to $2.85 and reaffirmed adjusted 2025 EPS1 guidance of $2.75 to $2.953
  • Reaffirmed long-term EPS growth rate target of 4% to 6% from our expected 2025 adjusted EPS1,3

"We are off to a good start in 2025 with solid first quarter financial results," said Justin B. Palfreyman, President and CEO of NW Natural Holdings. "Our gas utilities operated safely and reliably over the winter heating season, serving customers well and highlighting the value of our infrastructure. Our financial results reflect the strength of our collective utilities, including the SiEnergy acquisition that was completed in early January 2025. The SiEnergy integration has gone well, and they have met their growth targets for the first quarter of 2025. I'm excited to announce an additional bolt-on acquisition that further enhances the scale and growth of our Texas utilities. We are well-positioned to deliver on our 2025 guidance and focused on creating long-term shareholder value."

Net income increased $24.1 million to $87.9 million (or $2.18 per share) for the first quarter of 2025, compared to $63.8 million (or $1.69 per share) for the same period in 2024. Adjusted net income was $91.8 million1 (or $2.28 per share1) for the first quarter of 2025 excluding transaction costs associated with the SiEnergy acquisition. The increase reflected strong results across all business segments, including new rates for our gas utility in Oregon, contributions from SiEnergy, higher net income from our NWN Water utility related to new rates at our largest utility in Arizona and the Puttman acquisition, and a full quarter of revenues from NWN Renewables. These items were partially offset by higher depreciation and interest expense.

SIGNED AGREEMENT TO PURCHASE GROWING GAS UTILITY IN TEXAS

In May 2025, SiEnergy entered into an agreement to acquire Hughes from EPCOR USA Inc. for $60 million, subject to customary purchase price adjustments. We estimate rate base of approximately $46 million at year end 2025. Upon closing the transaction, Hughes will become a wholly owned subsidiary of SiEnergy.

1

Ìý

See "Non-GAAP Financial Measures", "Q1 2025 Reconciliation to GAAP" and "2025 Guidance Reconciliation to GAAP" for additional information. The 2025 adjusted consolidated net income and adjusted EPS are non-GAAP and exclude the effects of transaction costs.

2

Ìý

“World’s Most Ethical Companies� and “Ethisphere� names and marks are registered trademarks of Ethisphere LLC.

3

Ìý

Adjusted EPS growth forecasted for period 2025 � 2030 compounded annually; EPS growth rate uses adjusted 2025 EPS as base year. NW Natural Holdings does not provide a reconciliation of adjusted EPS growth rate target to the most directly comparable GAAP measures due to the inherent difficulty in forecasting and quantifying certain significant items. These items are uncertain, depend on various factors and could have a material impact on GAAP reported results for the relevant period.

Hughes serves approximately 6,900 residential and commercial customers in the greater Houston metropolitan area. With a similar business model as SiEnergy, Hughes has grown organically by providing infrastructure to residential and commercial developments in high-growth areas.

This acquisition further expands our regulated gas utility business in Texas with a contracted customer backlog of approximately 11,000. The transaction is expected to close in the second quarter of 2025 and be accretive in the first full year of operations. Hughes is regulated by the Railroad Commission of Texas. No approvals are needed to close this transaction.

2025 GUIDANCE AND LONG-TERM TARGETS

NW Natural Holdings updated 2025 GAAP EPS guidance to $2.65 to $2.85 (from the previous range of $2.66 to $2.86) as a result of the expected transaction costs from the Hughes acquisition. NW Natural Holdings reaffirmed adjusted EPS guidance of $2.75 to $2.95 on a non-GAAP1 basis excluding the $5.8 million pre-tax transaction costs associated with the acquisitions of SiEnergy and Hughes (approximately $4.3 million or $0.10 per share after-tax2). This guidance assumes continued customer growth, average weather conditions, and no significant changes in prevailing regulatory policies, mechanisms, or assumed outcomes, or significant local, state or federal laws, legislation or regulations.

NW Natural Holdings reaffirmed its long-term EPS growth rate target of 4% to 6% compounded annually from the expected 2025 adjusted EPS3.

We expect NW Natural Holdings capital expenditures for 2025 to be in the range of $450 - $500 million. The timing and amount of the capital expenditures and projects for 2025 or additional investments in our infrastructure during or after 2025 could change based on customer growth, significant changes in prevailing regulatory policies or outcomes, or significant local, state or federal laws, legislation or regulations, or cost estimates. Required funds for the investments are expected to be internally generated or financed with long-term debt or equity, as appropriate.

DIVIDEND DECLARED

The board of directors of NW Natural Holdings declared a quarterly dividend of $0.49 per share on the Company’s common stock. The dividend is payable on May 15, 2025 to shareholders of record on April 30, 2025. The Company's current indicated annual dividend rate is $1.96 per share. Future dividends are subject to board of director discretion and approval.

1

Ìý

See "Non-GAAP Financial Measures" and "2025 Guidance Reconciliation to GAAP" for a definition and further information on adjusted EPS. Adjusted EPS excludes transaction related costs including the effects of SiEnergy transaction costs of $3.9 million after tax recorded in first quarter 2025 and the expected $0.4 million after tax from the acquisition of Hughes anticipated in the second quarter of 2025.

2

Ìý

Effect on EPS assumes average diluted shares of 41.1 million and an income tax rate of 26.5%.

3

Ìý

Adjusted EPS growth forecasted for period 2025 � 2030 compounded annually; EPS growth rate uses adjusted 2025 EPS as base year. NW Natural Holdings does not provide a reconciliation of adjusted EPS growth rate target to the most directly comparable GAAP measures due to the inherent difficulty in forecasting and quantifying certain significant items. These items are uncertain, depend on various factors and could have a material impact on GAAP reported results for the relevant period.

FIRST QUARTER RESULTS

NW Natural Holdings' first quarter results are summarized by business segment in the table below:

Ìý

Three Months Ended March 31,

Ìý

2025

Ìý

2024

Ìý

Change

In thousands, except per share data

Amount

Per Share1

Ìý

Amount

Per Share1

Ìý

Amount

Per Share

Net income:

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

NWN Gas Utility

$

87,166

Ìý

$

2.16

Ìý

Ìý

$

65,715

Ìý

$

1.74

Ìý

Ìý

$

21,451

Ìý

$

0.42

Ìý

SiEnergy Gas Utility

Ìý

5,505

Ìý

Ìý

0.14

Ìý

Ìý

Ìý

�

Ìý

Ìý

�

Ìý

Ìý

Ìý

5,505

Ìý

Ìý

0.14

Ìý

NWN Water Utility

Ìý

1,688

Ìý

Ìý

0.04

Ìý

Ìý

Ìý

(746

)

Ìý

(0.02

)

Ìý

Ìý

2,434

Ìý

Ìý

0.06

Ìý

Other

Ìý

(6,443

)

Ìý

(0.16

)

Ìý

Ìý

(1,146

)

Ìý

(0.03

)

Ìý

Ìý

(5,297

)

Ìý

(0.13

)

Consolidated

$

87,916

Ìý

$

2.18

Ìý

Ìý

$

63,823

Ìý

$

1.69

Ìý

Ìý

$

24,093

Ìý

$

0.49

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Adjusted Other2

$

(2,557

)

$

(0.06

)

Ìý

$

(1,146

)

$

(0.03

)

Ìý

$

(1,411

)

$

(0.03

)

Adjusted Consolidated2

Ìý

91,802

Ìý

Ìý

2.28

Ìý

Ìý

Ìý

63,823

Ìý

Ìý

1.69

Ìý

Ìý

Ìý

27,979

Ìý

Ìý

0.59

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Diluted Shares

Ìý

Ìý

40,304

Ìý

Ìý

Ìý

Ìý

37,796

Ìý

Ìý

Ìý

Ìý

2,508

Ìý

1

Ìý

Segment EPS is a non-GAAP financial measure, which takes segment net income calculated in accordance with GAAP and divides it by the diluted shares outstanding of NW Natural Holdings. See "Non-GAAP Financial Measures" for additional information. The reconciliation of segment EPS to Consolidated NW Natural Holdings EPS is shown in the table above.

2

Ìý

See "Non-GAAP Financial Measures" and "Q1 2025 Reconciliation to GAAP" for additional information. Adjusted 2025 other and consolidated net income are non-GAAP financial measures and exclude the effects of SiEnergy transaction costs of $3.9 million after-tax. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures calculated in accordance with U.S. GAAP. Non-GAAP financial measures are used to analyze our financial performance because we believe they provide useful information to our investors and creditors in evaluating our financial condition and results of operations.

NWN Gas Utility

NWN Gas Utility is a regulated utility principally engaged in the delivery of natural gas to customers in Oregon and southwest Washington. The segment also includes the portion of the Mist underground storage facility used to serve gas utility customers, the North Mist gas storage expansion, and renewable natural gas development and procurement for the utility.

Ìý

Three Months Ended March 31,

In thousands, except EPS

2025

Ìý

2024

Ìý

Change

Margin

$

256,822

Ìý

$

218,150

Ìý

$

38,672

Net income

Ìý

87,166

Ìý

Ìý

65,715

Ìý

Ìý

21,451

EPS1

$

2.16

Ìý

$

1.74

Ìý

$

0.42

1

Ìý

See "Non-GAAP Financial Measures" for additional information and the table under "First Quarter Results" for a reconciliation to Consolidated NW Natural Holdings EPS. Segment EPS is a non-GAAP financial measure which takes NWN Gas Utility segment net income calculated in accordance with GAAP and divides it by the diluted shares outstanding of NW Natural Holdings.

NWN Gas Utility net income increased $21.5 million (or $0.42 per share) primarily reflecting new rates in Oregon. Margin increased $38.7 million primarily due to a $42.6 million increase from the Oregon rate case partially offset by lower deferral amortizations of $5.0 million.

Operations and maintenance expense increased $2.2 million primarily due to higher payroll and benefit expense. Depreciation and general taxes collectively increased by $4.8 million primarily due to continued investment in our system. Other expense reflected a $1.4 million increase primarily from higher pension expense. Income taxes increased $9.3 million dollars due to higher pre-tax results.

SiEnergy Gas Utility

SiEnergy Gas Utility (or SiEnergy) is a regulated natural gas distribution utility serving customers in the greater metropolitan areas of Houston, Dallas, and Austin, Texas.

Ìý

Three Months Ended March 31,

In thousands, except EPS

2025

Ìý

2024

Ìý

Change

Margin

$

13,584

Ìý

$

�

Ìý

$

13,584

Net income

Ìý

5,505

Ìý

Ìý

�

Ìý

Ìý

5,505

EPS1

$

0.14

Ìý

$

�

Ìý

$

0.14

1

Ìý

See "Non-GAAP Financial Measures" for additional information and the table under "First Quarter Results" for a reconciliation to Consolidated NW Natural Holdings EPS. Segment EPS is a non-GAAP financial measure which takes SiEnergy Gas Utility segment net income calculated in accordance with GAAP and divides it by the diluted shares outstanding of NW Natural Holdings.

SiEnergy was acquired on January 7, 2025 and subsequently provided net income of $5.5 million (or $0.14 per share) in the first quarter of 2025. Margin results met management's expectations and reflected strong customer growth.

NWN Water Utility

NWN Water Utility (or NWN Water) provides water distribution and wastewater services to communities throughout the Pacific Northwest, Texas, Arizona, and California.

Ìý

Three Months Ended March 31,

In thousands, except EPS

2025

Ìý

2024

Ìý

Ìý

Change

Income from operations

$

3,043

Ìý

$

454

Ìý

Ìý

$

2,589

Net income

Ìý

1,688

Ìý

Ìý

(746

)

Ìý

Ìý

2,434

EPS1

$

0.04

Ìý

$

(0.02

)

Ìý

$

0.06

1

Ìý

See "Non-GAAP Financial Measures" for additional information and the table under "First Quarter Results" for a reconciliation to Consolidated NW Natural Holdings EPS. Segment EPS is a non-GAAP financial measure which takes NWN Water Utility segment net income calculated in accordance with GAAP and divides it by the diluted shares outstanding of NW Natural Holdings.

NWN Water net income increased $2.4 million (or $0.06 per share) mainly reflecting a $3.2 million increase in operating revenues primarily due to new rates at its largest utility in Arizona and incremental revenues from the Puttman/Infrastructure Capital Holdings water utilities after the acquisition in September 2024. Operating expenses increased $0.6 million from higher operations and maintenance expenses primarily related to reflecting the Puttman/Infrastructure Capital Holdings activities in results after the acquisition in 2024. Interest expense decreased $0.7 million from lower long-term debt balances as $50.0 million of NWN Water debt matured in March 2024 and was not refinanced at NWN Water.

Other

Other business activities are reported through "Other" results and primarily include Interstate Storage Services and third-party asset management services for the Mist facility in Oregon; NWN Renewables, which is a renewable fuels business; and corporate financing activities, consolidation entries, and other activities.

Ìý

Three Months Ended March 31,

In thousands, except EPS

2025

Ìý

2024

Ìý

Change

Net loss

$

(6,443

)

Ìý

$

(1,146

)

Ìý

$

(5,297

)

EPS1

Ìý

(0.16

)

Ìý

Ìý

(0.03

)

Ìý

Ìý

(0.13

)

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Adjusted net loss2

$

(2,557

)

Ìý

$

(1,146

)

Ìý

$

(1,411

)

Adjusted EPS1,2

Ìý

(0.06

)

Ìý

Ìý

(0.03

)

Ìý

Ìý

(0.03

)

1

Ìý

See "Non-GAAP Financial Measures" for additional information and the table under "First Quarter Results" for a reconciliation to Consolidated NW Natural Holdings EPS. Segment EPS is a non-GAAP financial measure which takes Other net income calculated in accordance with GAAP and divides it by the diluted shares outstanding of NW Natural Holdings.

2

Ìý

See "Non-GAAP Financial Measures" and "Q1 2025 Reconciliation to GAAP" for additional information. Adjusted 2025 other and consolidated net income are non-GAAP financial measures and exclude the effects of SiEnergy transaction costs of $3.9 million after-tax.

Net income from the Company's other business activities decreased $5.3 million (or $0.13 per share) reflecting $3.9 million of transaction expenses (after-tax) related to acquiring SiEnergy. Adjusted net loss, which excludes SiEnergy transaction expenses, increased $1.4 million (or $0.03 per share) related to higher interest expense at the Holding Company, partially offset by higher revenues from the NWN Renewables business as it completed its first full quarter of operations.

CONFERENCE CALL AND WEBCAST

As previously announced, NW Natural Holdings will host a conference call and webcast today to discuss its first quarter 2025 financial and operating results.

Date and Time:

Tuesday, May 6, 2025

8 a.m. PT (11 a.m. ET)

Phone Numbers:

United States 1-833-470-1428

International 1-404-975-4839

Passcode 328787

The call will also be webcast in a listen-only format for the media and general public and can be accessed at . A replay of the conference call will be available on our website and by dialing 1-866-813-9403 (U.S.) and 1-929-458-6194 (international). The replay access code is 591383.

ABOUT NW NATURAL HOLDINGS

Northwest Natural Holding Company (NYSE: NWN) (NW Natural Holdings) is headquartered in Portland, Oregon and has been doing business for over 166 years. It owns Northwest Natural Gas Company (NW Natural), SiEnergy Operating (SiEnergy Gas Utility), NW Natural Water Company (NWN Water Utility), NW Natural Renewables Holdings (NWN Renewables), and other business interests.

NW Natural Holdings through its subsidiaries provides critical energy and delivers essential water and wastewater services to nearly one million meters across seven states. We have a longstanding commitment to safety, environmental stewardship, and the energy transition, and taking care of our employees and communities. NW Natural Holdings was recognized by Ethisphere® for four years running as one of the World’s Most Ethical Companies®. NW Natural consistently leads the industry with high J.D. Power & Associates customer satisfaction scores.

NWN Gas Utility is a local distribution company that currently provides natural gas service to approximately 2 million people in more than 140 communities through approximately 807,000 meters in Oregon and Southwest Washington with one of the most modern pipeline systems in the nation. NW Natural owns and operates 21.6 Bcf of underground gas storage capacity in Oregon.

SiEnergy Gas Utility is one of the fastest growing natural gas distribution utilities in the nation, serving over 73,000 meters in the greater metropolitan areas of Houston, Dallas, and Austin, Texas.

NWN Water Utility provides water distribution and wastewater services to communities throughout the Pacific Northwest, Texas, Arizona, and California. Today NW Natural Water serves an estimated 194,000 people through approximately 78,000 meters and provides operation and maintenance services to an additional 40,000 connections. Learn more about our water business at .

NWN Renewables is committed to leading in the energy transition by providing renewable fuels. Learn more at .

Additional information is available at .

“World’s Most Ethical Companies� and “Ethisphere� names and marks are registered trademarks of Ethisphere LLC

FORWARD-LOOKING STATEMENTS

This press release, and other presentations made by NW Holdings from time to time, may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipates," "assumes," “continues,� “could,� "intends," "plans," "seeks," "believes," "estimates," "expects," "forecasts," "will" and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, objectives, assumptions, estimates, expectations, forecasts, outlooks, timing, goals, strategies, commitments, future events, financial positions, financial performance, investments, valuations, timing and amount of capital expenditures, targeted capital structure, risks, risk profile, stability, acquisitions and timing, approval, completion and integration thereof, the likelihood and success associated with any transaction, strategic fit, utility system, technology and infrastructure investments, system modernization, reliability and resiliency, global, national and local economies, economic and GDP growth, customer and business growth, continued expansion of service territories, rate base growth, customer backlog, growth opportunities, customer satisfaction ratings, weather, performance and service during weather events, customer rates or rate recovery and the timing and magnitude of potential rate changes and the potential outcome of rate cases, environmental remediation cost recoveries, environmental initiatives, decarbonization and the role of natural gas and the gas delivery system, including decarbonization goals and timelines, energy efficiency measures, use of renewable sources, renewable natural gas purchases, projects, investments and other renewable initiatives, and timing, magnitude and completion thereof, unregulated renewable natural gas strategy and initiatives, hydrogen projects or investments and timing, magnitude, approvals and completion thereof, procurement of renewable natural gas or hydrogen for customers, technology and policy innovations, strategic goals and visions, water, wastewater and water services acquisitions, personnel additions, partnerships, investment strategy, regulatory strategy, and financial effects of water, wastewater and water services acquisitions, expected growth and safety benefits of facility upgrade investments, operating plans of third parties, financial targets, financial results, including estimated income, availability and sources of liquidity, capital markets, financing transactions, expenses, positions, revenues, returns, cost of capital, timing, and earnings, earnings guidance and estimated future growth rates, credit ratings, debt and equity issuances and timing, future dividends, commodity costs and sourcing, asset management activities, regulatory environment, performance, timing, outcome, or effects of regulatory proceedings or mechanisms or approvals, rate case execution, regulatory prudence reviews, anticipated regulatory actions or filings, accounting treatment of future events, economic and political conditions, effects of legislation or changes in laws or regulations, impact of the new U.S. presidential administration and Congress, effects, extent, the imposition or announcement of tariffs or trade restrictions, inflation, geopolitical uncertainty and other statements that are other than statements of historical facts.

Forward-looking statements are based on current expectations and assumptions regarding its business, the economy, geopolitical factors, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. You are therefore cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future operational, economic or financial performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed by reference to the factors described in Part I, Item 1A "Risk Factors", and Part II, Item 7 and Item 7A "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosure about Market Risk" in the most recent Annual Report on Form 10-K and in Part I, Items 2 and 3 "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk", and Part II, Item 1A, "Risk Factors", in the quarterly reports filed thereafter, which, among others, outline legal, regulatory and legislative risks, financial, macroeconomic and geopolitical risks, growth and strategic risks, operational risks, business continuity and technology risks, environmental risks and risks related to our water and renewables businesses.

All forward-looking statements made in this report and all subsequent forward-looking statements, whether written or oral and whether made by or on behalf of NW Holdings or NW Natural, are expressly qualified by these cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is made, and NW Holdings and NW Natural undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. New factors emerge from time to time and it is not possible to predict all such factors, nor can it assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements.

NON-GAAP FINANCIAL MEASURES

Management uses "adjusted net income", "adjusted earnings per share," "adjusted segment net loss," "segment earnings per share� and "adjusted segment earnings per share," each of which are non-GAAP financial measures, when evaluating NW Natural Holdings' overall performance. Management believes that these non-GAAP measures provide meaningful information to investors about NW Natural Holdings' performance because they eliminate the impacts of significant discrete items that are unusual or non-recurring and can affect the comparison of period-over-period results. In addition to presenting the results of operations and earnings amounts in total, certain financial measures are expressed in cents per share, which are non-GAAP financial measures. All references to EPS are on the basis of diluted shares.

Such non-GAAP financial measures are used to analyze our financial performance because we believe they provide useful information to our investors and creditors in evaluating our financial condition and results of operations. Our non-GAAP financial measures should not be considered a substitute for, or superior to, measures calculated in accordance with U.S. GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than how such measures are calculated in this report, limiting the usefulness of those measures for comparative purposes. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the tables below.

NORTHWEST NATURAL HOLDINGS

Consolidated Income Statement and Financial Highlights (Unaudited)

First Quarter 2025

Ìý

Three Months Ended

In thousands, except per share amounts, customer, and degree day data

March 31,

2025

Ìý

2024

Operating revenues

$

494,284

Ìý

Ìý

$

433,470

Ìý

Ìý

Ìý

Ìý

Ìý

Operating expenses:

Ìý

Ìý

Ìý

Cost of gas

Ìý

172,991

Ìý

Ìý

Ìý

175,717

Ìý

Operations and maintenance

Ìý

83,683

Ìý

Ìý

Ìý

73,614

Ìý

Environmental remediation

Ìý

6,253

Ìý

Ìý

Ìý

5,746

Ìý

General taxes

Ìý

15,771

Ìý

Ìý

Ìý

15,468

Ìý

Revenue taxes

Ìý

19,405

Ìý

Ìý

Ìý

18,244

Ìý

Depreciation

Ìý

40,500

Ìý

Ìý

Ìý

33,098

Ìý

Other operating expenses

Ìý

1,327

Ìý

Ìý

Ìý

1,756

Ìý

Total operating expenses

Ìý

339,930

Ìý

Ìý

Ìý

323,643

Ìý

Income from operations

Ìý

154,354

Ìý

Ìý

Ìý

109,827

Ìý

Other expense, net

Ìý

(2,516

)

Ìý

Ìý

(1,134

)

Interest expense, net

Ìý

29,395

Ìý

Ìý

Ìý

20,531

Ìý

Income before income taxes

Ìý

122,443

Ìý

Ìý

Ìý

88,162

Ìý

Income tax expense

Ìý

34,527

Ìý

Ìý

Ìý

24,339

Ìý

Net income

$

87,916

Ìý

Ìý

$

63,823

Ìý

Ìý

Ìý

Ìý

Ìý

Common shares outstanding:

Ìý

Ìý

Ìý

Average diluted for period

Ìý

40,304

Ìý

Ìý

Ìý

37,796

Ìý

End of period

Ìý

40,309

Ìý

Ìý

Ìý

38,027

Ìý

Ìý

Ìý

Ìý

Ìý

Per share of common stock information:

Ìý

Ìý

Ìý

Diluted earnings

$

2.18

Ìý

Ìý

$

1.69

Ìý

Dividends paid per share

Ìý

0.4900

Ìý

Ìý

Ìý

0.4875

Ìý

Ìý

Ìý

Ìý

Ìý

Capital structure, end of period:

Ìý

Ìý

Ìý

Common stock equity

Ìý

38.7

%

Ìý

Ìý

44.5

%

Long-term debt (including junior subordinated notes)

Ìý

58.2

Ìý

Ìý

Ìý

52.3

Ìý

Short-term debt (including current maturities of long-term debt)

Ìý

3.1

Ìý

Ìý

Ìý

3.2

Ìý

Total

Ìý

100.0

%

Ìý

Ìý

100.0

%

Ìý

Ìý

Ìý

Ìý

Operating Statistics

Ìý

Ìý

Ìý

Meters

Ìý

Ìý

Ìý

NWN gas utility

Ìý

807,426

Ìý

Ìý

Ìý

800,978

Ìý

SiEnergy gas utility

Ìý

73,077

Ìý

Ìý

Ìý

�

Ìý

NWN Water utility

Ìý

78,052

Ìý

Ìý

Ìý

73,738

Ìý

Total Meters - end of period

Ìý

958,555

Ìý

Ìý

Ìý

874,716

Ìý

Ìý

Ìý

Ìý

Ìý

NWN Gas Utility Margin

Ìý

Ìý

Ìý

Operating revenues

$

441,076

Ìý

Ìý

$

417,864

Ìý

Less: Cost of gas

Ìý

159,436

Ìý

Ìý

Ìý

175,773

Ìý

Less: Environmental remediation expense

Ìý

6,253

Ìý

Ìý

Ìý

5,746

Ìý

Less: Revenue taxes

Ìý

18,565

Ìý

Ìý

Ìý

18,195

Ìý

NWN Gas Utility Margin

$

256,822

Ìý

Ìý

$

218,150

Ìý

Ìý

Ìý

Ìý

Ìý

SiEnergy Gas Utility Margin

Ìý

Ìý

Ìý

Operating revenues

$

22,666

Ìý

Ìý

$

�

Ìý

Less: Cost of gas

Ìý

8,303

Ìý

Ìý

Ìý

�

Ìý

Less: Revenue taxes

Ìý

779

Ìý

Ìý

Ìý

�

Ìý

SiEnergy Gas Utility Margin

$

13,584

Ìý

Ìý

$

�

Ìý

NORTHWEST NATURAL HOLDINGS

Ìý

Ìý

Ìý

Ìý

Consolidated Balance Sheets (Unaudited)

Ìý

March 31,

In thousands

Ìý

2025

Ìý

2024

Assets:

Ìý

Ìý

Ìý

Ìý

Current assets:

Ìý

Ìý

Ìý

Ìý

Cash and cash equivalents

Ìý

$

100,050

Ìý

Ìý

$

72,375

Ìý

Accounts receivable

Ìý

Ìý

154,746

Ìý

Ìý

Ìý

128,433

Ìý

Accrued unbilled revenue

Ìý

Ìý

59,936

Ìý

Ìý

Ìý

57,905

Ìý

Allowance for uncollectible accounts

Ìý

Ìý

(4,427

)

Ìý

Ìý

(4,181

)

Regulatory assets

Ìý

Ìý

88,623

Ìý

Ìý

Ìý

127,666

Ìý

Derivative instruments

Ìý

Ìý

4,363

Ìý

Ìý

Ìý

5,746

Ìý

Inventories

Ìý

Ìý

90,334

Ìý

Ìý

Ìý

99,874

Ìý

Other current assets

Ìý

Ìý

46,275

Ìý

Ìý

Ìý

49,896

Ìý

Total current assets

Ìý

Ìý

539,900

Ìý

Ìý

Ìý

537,714

Ìý

Non-current assets:

Ìý

Ìý

Ìý

Ìý

Property, plant, and equipment

Ìý

Ìý

5,268,063

Ìý

Ìý

Ìý

4,660,104

Ìý

Less: Accumulated depreciation

Ìý

Ìý

1,266,222

Ìý

Ìý

Ìý

1,218,580

Ìý

Total property, plant, and equipment, net

Ìý

Ìý

4,001,841

Ìý

Ìý

Ìý

3,441,524

Ìý

Regulatory assets

Ìý

Ìý

371,258

Ìý

Ìý

Ìý

309,173

Ìý

Derivative instruments

Ìý

Ìý

864

Ìý

Ìý

Ìý

3,099

Ìý

Other investments

Ìý

Ìý

82,663

Ìý

Ìý

Ìý

84,081

Ìý

Operating lease right of use asset, net

Ìý

Ìý

70,455

Ìý

Ìý

Ìý

70,547

Ìý

Assets under sales-type leases

Ìý

Ìý

124,623

Ìý

Ìý

Ìý

128,840

Ìý

Goodwill

Ìý

Ìý

354,534

Ìý

Ìý

Ìý

162,966

Ìý

Other non-current assets

Ìý

Ìý

160,754

Ìý

Ìý

Ìý

111,122

Ìý

Total non-current assets

Ìý

Ìý

5,166,992

Ìý

Ìý

Ìý

4,311,352

Ìý

Total assets

Ìý

$

5,706,892

Ìý

Ìý

$

4,849,066

Ìý

Liabilities and equity:

Ìý

Ìý

Ìý

Ìý

Current liabilities:

Ìý

Ìý

Ìý

Ìý

Short-term debt

Ìý

$

81,100

Ìý

Ìý

$

94,700

Ìý

Current maturities of long-term debt

Ìý

Ìý

36,838

Ìý

Ìý

Ìý

869

Ìý

Accounts payable

Ìý

Ìý

132,814

Ìý

Ìý

Ìý

107,888

Ìý

Taxes accrued

Ìý

Ìý

24,115

Ìý

Ìý

Ìý

27,031

Ìý

Interest accrued

Ìý

Ìý

16,297

Ìý

Ìý

Ìý

16,360

Ìý

Regulatory liabilities

Ìý

Ìý

111,050

Ìý

Ìý

Ìý

77,659

Ìý

Derivative instruments

Ìý

Ìý

26,122

Ìý

Ìý

Ìý

52,677

Ìý

Operating lease liabilities

Ìý

Ìý

2,662

Ìý

Ìý

Ìý

2,053

Ìý

Other current liabilities

Ìý

Ìý

82,958

Ìý

Ìý

Ìý

89,107

Ìý

Total current liabilities

Ìý

Ìý

513,956

Ìý

Ìý

Ìý

468,344

Ìý

Long-term debt

Ìý

Ìý

2,193,071

Ìý

Ìý

Ìý

1,574,735

Ìý

Deferred credits and other non-current liabilities:

Ìý

Ìý

Ìý

Ìý

Deferred tax liabilities

Ìý

Ìý

424,338

Ìý

Ìý

Ìý

394,068

Ìý

Regulatory liabilities

Ìý

Ìý

730,084

Ìý

Ìý

Ìý

700,703

Ìý

Pension and other postretirement benefit liabilities

Ìý

Ìý

127,853

Ìý

Ìý

Ìý

157,812

Ìý

Derivative instruments

Ìý

Ìý

8,224

Ìý

Ìý

Ìý

12,743

Ìý

Operating lease liabilities

Ìý

Ìý

77,226

Ìý

Ìý

Ìý

77,051

Ìý

Other non-current liabilities

Ìý

Ìý

175,922

Ìý

Ìý

Ìý

120,224

Ìý

Total deferred credits and other non-current liabilities

Ìý

Ìý

1,543,647

Ìý

Ìý

Ìý

1,462,601

Ìý

Equity:

Ìý

Ìý

Ìý

Ìý

Common stock

Ìý

Ìý

992,278

Ìý

Ìý

Ìý

905,153

Ìý

Retained earnings

Ìý

Ìý

470,795

Ìý

Ìý

Ìý

445,058

Ìý

Accumulated other comprehensive loss

Ìý

Ìý

(6,855

)

Ìý

Ìý

(6,825

)

Total equity

Ìý

Ìý

1,456,218

Ìý

Ìý

Ìý

1,343,386

Ìý

Total liabilities and equity

Ìý

$

5,706,892

Ìý

Ìý

$

4,849,066

Ìý

NORTHWEST NATURAL HOLDINGS

Ìý

Ìý

Ìý

Ìý

Consolidated Statements of Cash Flows (Unaudited)

Ìý

Three Months Ended March 31,

In thousands

Ìý

2025

Ìý

2024

Operating activities:

Ìý

Ìý

Ìý

Ìý

Net income

Ìý

$

87,916

Ìý

Ìý

$

63,823

Ìý

Adjustments to reconcile net income to cash provided by operations:

Ìý

Ìý

Ìý

Ìý

Depreciation

Ìý

Ìý

40,500

Ìý

Ìý

Ìý

33,098

Ìý

Amortization

Ìý

Ìý

5,583

Ìý

Ìý

Ìý

4,759

Ìý

Deferred income taxes

Ìý

Ìý

23,997

Ìý

Ìý

Ìý

8,041

Ìý

Qualified defined benefit pension plan expense

Ìý

Ìý

2,719

Ìý

Ìý

Ìý

1,082

Ìý

Contributions to qualified defined benefit pension plans

Ìý

Ìý

(2,610

)

Ìý

Ìý

�

Ìý

Deferred environmental expenditures, net

Ìý

Ìý

(6,991

)

Ìý

Ìý

(6,264

)

Environmental remediation expense

Ìý

Ìý

6,253

Ìý

Ìý

Ìý

5,746

Ìý

Asset optimization revenue sharing bill credits

Ìý

Ìý

(15,549

)

Ìý

Ìý

(20,608

)

Other

Ìý

Ìý

3,016

Ìý

Ìý

Ìý

4,692

Ìý

Changes in assets and liabilities:

Ìý

Ìý

Ìý

Ìý

Receivables, net

Ìý

Ìý

15,509

Ìý

Ìý

Ìý

17,839

Ìý

Inventories

Ìý

Ìý

18,279

Ìý

Ìý

Ìý

13,070

Ìý

Income and other taxes

Ìý

Ìý

18,084

Ìý

Ìý

Ìý

21,796

Ìý

Accounts payable

Ìý

Ìý

4,187

Ìý

Ìý

Ìý

(30,930

)

Deferred gas costs

Ìý

Ìý

(16,959

)

Ìý

Ìý

(8,808

)

Asset optimization revenue sharing

Ìý

Ìý

4,357

Ìý

Ìý

Ìý

(108

)

Decoupling mechanism

Ìý

Ìý

(1,422

)

Ìý

Ìý

6,427

Ìý

Cloud-based software

Ìý

Ìý

(2,195

)

Ìý

Ìý

(6,485

)

Regulatory accounts

Ìý

Ìý

2,155

Ìý

Ìý

Ìý

13,335

Ìý

Other, net

Ìý

Ìý

(7,219

)

Ìý

Ìý

4,534

Ìý

Cash provided by operating activities

Ìý

Ìý

179,610

Ìý

Ìý

Ìý

125,039

Ìý

Investing activities:

Ìý

Ìý

Ìý

Ìý

Capital expenditures

Ìý

Ìý

(102,184

)

Ìý

Ìý

(82,217

)

Acquisitions, net of cash acquired

Ìý

Ìý

(270,492

)

Ìý

Ìý

�

Ìý

Purchase of equity method investment

Ìý

Ìý

(1,000

)

Ìý

Ìý

(1,000

)

Other

Ìý

Ìý

(1,299

)

Ìý

Ìý

729

Ìý

Cash used in investing activities

Ìý

Ìý

(374,975

)

Ìý

Ìý

(82,488

)

Financing activities:

Ìý

Ìý

Ìý

Ìý

Proceeds from common stock issued, net

Ìý

Ìý

961

Ìý

Ìý

Ìý

12,218

Ìý

Long-term debt issued

Ìý

Ìý

375,000

Ìý

Ìý

Ìý

150,000

Ìý

Long-term debt retired

Ìý

Ìý

(1,511

)

Ìý

Ìý

(150,000

)

Changes in other short-term debt, net

Ìý

Ìý

(94,010

)

Ìý

Ìý

4,920

Ìý

Cash dividend payments on common stock

Ìý

Ìý

(19,104

)

Ìý

Ìý

(17,746

)

Payment of financing fees

Ìý

Ìý

(4,307

)

Ìý

Ìý

(748

)

Shares withheld for tax purposes

Ìý

Ìý

(1,536

)

Ìý

Ìý

(1,314

)

Other

Ìý

Ìý

(1,125

)

Ìý

Ìý

(247

)

Cash provided (used) by financing activities

Ìý

Ìý

254,368

Ìý

Ìý

Ìý

(2,917

)

Increase in cash, cash equivalents and restricted cash

Ìý

Ìý

59,003

Ìý

Ìý

Ìý

39,634

Ìý

Cash, cash equivalents and restricted cash, beginning of period

Ìý

Ìý

47,982

Ìý

Ìý

Ìý

49,624

Ìý

Cash, cash equivalents and restricted cash, end of period

Ìý

$

106,985

Ìý

Ìý

$

89,258

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Supplemental disclosure of cash flow information:

Ìý

Ìý

Ìý

Ìý

Interest paid, net of capitalization

Ìý

$

30,109

Ìý

Ìý

$

18,044

Ìý

Income taxes paid, net of refunds

Ìý

Ìý

750

Ìý

Ìý

Ìý

1,000

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Reconciliation of cash, cash equivalents and restricted cash:

Ìý

Ìý

Ìý

Ìý

Cash and cash equivalents

Ìý

$

100,050

Ìý

Ìý

$

72,375

Ìý

Restricted cash included in other current and non-current assets

Ìý

Ìý

6,935

Ìý

Ìý

Ìý

16,883

Ìý

Cash, cash equivalents and restricted cash

Ìý

$

106,985

Ìý

Ìý

$

89,258

Ìý

NORTHWEST NATURAL HOLDINGS

2025 Guidance Reconciliation to GAAP (Unaudited)

Ìý

Ìý

2025 EPS Guidance Reconciliation Table

Ìý

GAAP EPS guidance

$2.65 to $2.85

Transaction costs1

0.10

Adjusted EPS guidance2

$2.75 to $2.95

1

Ìý

Effect on EPS assumes transaction related costs including the effects of SiEnergy transaction costs of $3.9 million after tax recorded in first quarter 2025 and the expected $0.4 million after tax from the acquisition of Hughes anticipated in the second quarter of 2025, average diluted shares of 41.1 million and an income tax rate of 26.5%.

2

Ìý

See "Non-GAAP Financial Measures" for a definition and further information on adjusted EPS.

NORTHWEST NATURAL HOLDINGS

Q1 2025 Reconciliation to GAAP (Unaudited)

Ìý

Ìý

Ìý

Three Months Ended March 31,

Ìý

Ìý

2025

Ìý

Ìý

2024

Ìý

In thousands, except per share data

Ìý

Amount

Per Share

Ìý

Amount

Per Share

CONSOLIDATED

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

GAAP net income

Ìý

$

87,916

Ìý

$

2.18

Ìý

Ìý

$

63,823

Ìý

$

1.69

Ìý

Transaction costs for acquisition

Ìý

Ìý

5,287

Ìý

Ìý

0.13

Ìý

Ìý

Ìý

Ìý

Income tax effect1

Ìý

Ìý

(1,401

)

Ìý

(0.03

)

Ìý

Ìý

Ìý

Adjusted net income

Ìý

$

91,802

Ìý

$

2.28

Ìý

Ìý

$

63,823

Ìý

$

1.69

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Diluted shares

Ìý

Ìý

$

40,304

Ìý

Ìý

Ìý

$

37,796

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

OTHER

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

GAAP net income (loss)

Ìý

$

(6,443

)

$

(0.16

)

Ìý

$

(1,146

)

$

(0.03

)

Transaction costs for acquisition

Ìý

Ìý

5,287

Ìý

Ìý

0.13

Ìý

Ìý

Ìý

Ìý

Income tax effect1

Ìý

Ìý

(1,401

)

Ìý

(0.03

)

Ìý

Ìý

Ìý

Adjusted net income (loss)

Ìý

$

(2,557

)

$

(0.06

)

Ìý

$

(1,146

)

$

(0.03

)

1

Ìý

SiEnergy transaction expenses were recognized in the first quarter of 2025. Tax effect of adjustment was calculated using a combined federal and statutory rate of 26.5%.

Ìý

Investor Contact:

Nikki Sparley

Phone: 503-721-2530

Email: [email protected]

Media Contact:

David Roy

Phone: 503-610-7157

Email: [email protected]

Source: NW Natural

Northwest Natrl

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1.73%
Utilities - Regulated Gas
Natural Gas Distribution
United States
PORTLAND