Core Viewpoint - Northwest Natural (NWN) has shown a downtrend recently, losing 7.3% over the past four weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be subsiding, which is a bullish signal for the stock [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a downtrend, buyers are starting to push the price up towards the opening price [4][5]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may be losing control, indicating a potential trend reversal [5]. Fundamental Analysis - There has been a recent upward trend in earnings estimate revisions for NWN, which is a bullish indicator as it correlates strongly with near-term stock price movements [7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 0.4%, indicating that analysts expect better earnings than previously predicted [8]. - NWN currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9].

Financial Performance - Operating revenues increased to $494,284,000 in Q1 2025 from $433,470,000 in Q1 2024, representing a growth of 14.0%[13] - Net income rose to $87,916,000 in Q1 2025, up from $63,823,000 in Q1 2024, marking an increase of 37.7%[13] - The company reported a basic earnings per share of $2.18 for Q1 2025, up from $1.69 in Q1 2024, an increase of 29.1%[13] - Net income for Q1 2025 was $91,039,000, compared to $67,558,000 in Q1 2024, reflecting a significant increase of 34.8%[20] - Total operating revenues for NW Holdings reached $494.3 million in the first quarter of 2025, compared to $433.5 million in the same quarter of 2024, indicating a growth of 14.0%[64] - Total operating revenues for NW Natural for Q1 2025 were $448,813,000, up from $422,775,000 in Q1 2024, indicating a growth of 6.2%[76] Assets and Liabilities - Total assets reached $5,706,892,000 as of March 31, 2025, compared to $4,849,066,000 a year earlier, reflecting a growth of 17.6%[15] - Total current liabilities decreased to $513,956,000 as of March 31, 2025, from $649,017,000 a year earlier, a reduction of 20.8%[17] - Total shareholder's equity increased to $1,516,205,000 as of March 31, 2025, compared to $1,282,362,000 in the same period last year, a growth of 18.3%[25] - As of March 31, 2025, NW Holdings' long-term debt totaled $2,193.1 million, an increase from $1,574.7 million as of March 31, 2024[120] - NW Holdings' gross long-term debt increased to $2,244,343 thousand as of March 31, 2025, from $1,586,189 thousand as of December 31, 2024[130] Cash Flow and Investments - Cash provided by operating activities was $179,610,000 in Q1 2025, compared to $125,039,000 in Q1 2024, an increase of 43.7%[19] - Cash provided by operating activities rose to $181,230,000 in Q1 2025, compared to $117,983,000 in Q1 2024, marking an increase of 53.4%[26] - The company reported a capital contribution from the parent of $120,000,000 in Q1 2025, which was not present in Q1 2024[25] - NW Holdings raised $1.0 million through the ATM equity program by issuing 22,954 shares in Q1 2025, with $150.6 million remaining available for issuance[74] Capital Expenditures - Capital expenditures for Q1 2025 amounted to $102,184,000, up from $82,217,000 in Q1 2024, indicating a rise of 24.3%[19] - Capital expenditures for NW Holdings totaled $102.2 million in Q1 2025, compared to $82.2 million in Q1 2024, representing a 24.4% increase[64] Acquisitions and Goodwill - The company acquired SiEnergy Operating, LLC on January 7, 2025, expanding its regulated natural gas distribution activities into Texas[28] - Preliminary goodwill of $171.0 million was recognized from the SiEnergy acquisition, reflecting strategic benefits and service territory expansion[148] - Total goodwill from all acquisitions reached $354.5 million as of March 31, 2025, with significant contributions from gas utility and water acquisitions[158] Regulatory and Compliance - NW Holdings and NW Natural's businesses are subject to various regulatory frameworks, which impact their financial reporting and operational strategies, ensuring compliance with state and federal regulations[33] - The allowance for uncollectible accounts is adjusted quarterly based on economic conditions, customer creditworthiness, and natural gas prices, indicating a proactive approach to managing receivables[40] Environmental Liabilities - The estimated total cost for the Portland Harbor Superfund site cleanup is approximately $1.05 billion, with NW Natural's potential liability being a portion of these costs[190] - NW Natural recorded a liability of $52.4 million for the Gasco sediment clean-up, reflecting the low end of the estimated range of $52.4 million to $350 million[194] - The total environmental liabilities recorded in current and non-current liabilities amounted to $35.5 million and $117.3 million as of March 31, 2025, respectively[189] Interest and Debt Management - The weighted average interest rate on NW Holdings' long-term debt was 5.7% as of March 31, 2025, compared to 5.8% a year earlier[120] - NW Holdings borrowed a $50.0 million senior unsecured term loan, due on April 6, 2026, for working capital and general corporate purposes[124] - The interest rate on the Term Loan Agreement is based on term SOFR plus an adjustment of 0.10% or the Alternate Base Rate plus an applicable margin of 0.90%[125][126] Segment Performance - NWN Gas Utility margin for Q1 2025 was $256,822,000, an increase of 17.7% from $218,150,000 in Q1 2024[67] - SiEnergy Gas Utility margin for Q1 2025 was $13,584,000, with total operating revenues of $22,666,000[70] - NW Water operating revenues increased to $13,909,000 in Q1 2025 from $10,695,000 in Q1 2024, marking a growth of 30.6%[72] Legal Matters - NW Natural is involved in ongoing litigation related to climate change impacts, defending against claims brought by Multnomah County[211] - A lawsuit has been filed against NW Natural regarding its Smart Energy program, seeking class certification for enrolled customers over the past six years[212]

Northwest Natural Company (NWN) Q1 2025 Earnings Call May 06, 2025 11:00 AM ET Company Participants Nikki Sparley - Director of Investor RelationsJustin Palfreyman - President & CEORaymond Kaszuba - SVP & CFO Conference Call Participants None - Analyst Operator Thank you all for standing by for the North West Natural Holdings Company's First Quarter twenty twenty five Earnings Call. Today's call will be starting in around four minutes' time. Thank you for standing by. And if you do wish to remove it, you ca ...

Northwest Natural Company (NWN) Q1 2025 Earnings Call May 06, 2025 11:00 AM ET Speaker0 Thank you all for standing by for the North West Natural Holdings Company's First Quarter twenty twenty five Earnings Call. Today's call will be starting in around four minutes' time. Thank you for standing by. And if you do wish to remove it, you can press 2. Speaker1 Thank you. Speaker0 Thank you all for attending. I would like to welcome you all to today's call, the North West Natural Holdings Company's Q1 twenty twen ...

Northwest Natural (NWN) came out with quarterly earnings of $2.28 per share, beating the Zacks Consensus Estimate of $2.09 per share. This compares to earnings of $1.69 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this natural gas distributor would post earnings of $1.42 per share when it actually produced earnings of $1.41, delivering a surprise of -0.70%.Over the last four quarte ...

Exhibit 99.1 For Immediate Release May 6, 2025 NW Natural Holdings Reports Solid First Quarter 2025 Results Signed Agreement to Acquire Another Texas Gas Utility; Reaffirmed 2025 Adjusted EPS Guidance PORTLAND, ORE. — Northwest Natural Holding Company (NYSE: NWN) (NW Natural Holdings) reported financial results and highlights, including: 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 i ...

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Financial Data and Key Metrics Changes - For 2024, the company achieved adjusted net income of $90.6 million or $2.33 per share, a decrease from $93.9 million or $2.59 per share in 2023, primarily due to regulatory lag until new Oregon gas utility rates were effective [27][28][29] - Cash provided by operating activities was $200 million, with capital investments totaling $394 million, primarily for safety, reliability, and technology [30][31] Business Line Data and Key Metrics Changes - The Natural Gas Distribution segment saw a utility margin increase of $26.3 million mainly due to new rates in Oregon, while gas utility O&M decreased by $2.1 million [28][29] - The water and wastewater customer base grew by 4.6% last year, including organic growth and acquisitions [12][13] Market Data and Key Metrics Changes - The company expects customer growth projections for 2025 to be between 2% to 2.5%, driven largely by C Energy's anticipated growth of 20% or higher [33][34] - The combined annual rate base growth target for utilities has increased from 5%-7% to 6%-8% [32] Company Strategy and Development Direction - The company aims to complete the Oregon general rate case to ensure strong returns on invested capital and capture growth from C Energy, which is expected to provide double-digit growth [42][43] - The company is focused on maintaining affordability while evaluating acquisitions and rate case filings to recover safety investments [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position and readiness for continued growth, emphasizing the importance of a smooth leadership transition as the CEO plans to retire in April 2025 [46][47] - The company is optimistic about the long-term earnings potential of both C Energy and Northwest Natural Water, with expected growth in net income and rate base [40][41] Other Important Information - The company initiated 2025 adjusted earnings guidance in the range of $2.75 to $2.95 per share, reflecting strong contributions from other businesses [31][32] - Capital expenditures for 2025 are expected to be between $450 million to $500 million, with significant investments in gas utilities and C Energy [102][138] Q&A Session Summary Question: Strategic thoughts on data centers and electric load growth in Washington - Management is exploring opportunities to connect data centers to their systems in both the Pacific Northwest and Texas, while monitoring regulatory impacts [51][54][56] Question: Clarification on C Energy's net income growth and rate case filings - The projected CAGR for C Energy includes assumptions about rate case adjustments and capital structure improvements, with no specific timeline for rate case filings yet [59][62][63] Question: Breakdown of capital expenditures by segment - Capital expenditures are projected at approximately $350 million for Northwest Natural gas, $80 million for C Energy, and $60 million for water, totaling $450 to $500 million for 2025 [66][138]

Northwest Natural Holding Company (NYSE:NWN) Q4 2024 Results Conference Call February 28, 2025 11:00 AM ET Company Participants Nikki Sparley - Director of IR David Anderson - CEO Raymond Kaszuba - SVP & CFO Justin Palfreyman - President Conference Call Participants Christopher Ellinghaus - Siebert Williams Shank Selman Akyol - Stifel Brica Good morning, and thank you all for attending the Northwest Natural Holding Company Q4 2024 earnings call. My name is Brica, and I will be the moderator for today's call ...

Customer Base and Distribution - NW Natural serves approximately 806,000 meters, with 88% of customers located in Oregon and 12% in southwest Washington[26]. - Residential customers account for 38% of the total meters but contribute 65% to the NGD margin, while industrial customers account for 39% of volumes but only 6% of margin[29]. - In 2024, natural gas was present in approximately 63% of single-family residential homes in NW Natural's service territory, with single-family new construction being the largest source of customer growth[31]. Gas Supply and Management - For the 2024-25 winter heating season, NW Natural projects a total supply of 10 million therms, with firm supply purchases contributing 34% and Mist underground storage providing 33%[42]. - The company sources 60% of its gas supply from Canada, with the remainder primarily from the U.S. Rocky Mountain region, ensuring reliability and diversity of supply[44]. - In 2024, NW Natural purchased a total of 822 million therms, with 31% from long-term contracts, 45% from short-term contracts, and 24% from spot purchases[49]. - The company employs strategies to manage gas costs, including contracting with an independent energy marketing company to optimize storage and pipeline capacity[52]. - NW Natural has a diverse portfolio of gas supply contracts, including firm and interruptible supplies, to mitigate price risks and ensure stable service[48]. Storage Facilities - The Mist gas storage facility has a maximum daily deliverability of 5.3 million therms and a total designed storage capacity of about 17.5 Bcf, with 3.3 million therms reserved for NGD business customers[47]. - The North Mist gas storage facility, operational since 2019, has a capacity of 4.1 Bcf and is under a 30-year contract with Portland General Electric, with options for 50-year extensions[64][65]. Renewable Energy Initiatives - NW Natural has successfully tested a hydrogen blend of up to 20% in its pipelines, meeting safety protocols established by PHMSA[56]. - The company has contracted to sell renewable natural gas (RNG) produced from EDL facilities, with estimated volumes of approximately 2,430,000 MMbtu over the life of the agreement from 2024 to 2026[76]. - A long-term agreement for RNG sales includes estimated deliveries of 112,500 MMbtu in 2025, 375,000 MMbtu in 2026, and 1,950,000 MMbtu annually from 2027 to 2034[77]. - NW Natural Renewables has established agreements to secure RNG supply from two production facilities, with significant payments made upon completion of these facilities[74][75]. Workforce and Employee Relations - NW Natural's workforce consists of 1,275 employees, with 626 unionized and 649 non-unionized, and a collective bargaining agreement includes a 6% wage increase effective June 1, 2024[80]. - Employee safety is a top priority, with a portion of executive compensation tied to achieving safety metrics[83]. - The company offers competitive compensation and benefits packages, including healthcare, retirement plans, and flexible work schedules[85]. - A significant portion of the workforce is nearing retirement eligibility, prompting efforts to attract and retain skilled workers[86]. - The company has implemented various employee development programs, including mentoring, tuition assistance, and leadership training[87]. Regulatory Environment - The NGD business is regulated by the OPUC and WUTC, which authorize rates and recovery mechanisms to ensure a reasonable return on investment[36]. - Regulatory risks include potential disallowance of cost recovery by state utility regulators, which could adversely impact financial condition[95]. - The company is subject to regulatory authority from multiple agencies, affecting rates charged and recovery of costs[96]. - The company has filed a general rate case with the Oregon Public Utility Commission in December 2024[98]. - Changes in federal, state, or local regulations could significantly impact financial results and operational compliance[101]. Environmental and Climate Risks - NW Natural is subject to compliance with Washington's CCA cap-and-invest program and Oregon's CPP, with pathways modeled in its most recent IRP[57]. - The State of Washington's Climate Commitment Act mandates a 95% reduction in GHG emissions below 1990 levels by 2050, impacting NW Natural's operations[153]. - Oregon's Climate Protection Program aims for a 50% reduction in GHG emissions by 2035 and 90% by 2050 from a 2017-2019 baseline, affecting natural gas utilities[153]. - NW Natural faces potential operational restrictions and additional costs due to new legislation and regulations aimed at reducing natural gas usage[154]. - The company has been named as a defendant in two climate-related lawsuits, which could incur significant legal costs and impact its financial condition[154]. Financial Performance and Risks - Higher natural gas commodity prices and volatility may adversely affect NW Holdings' NGD business, while lower gas price volatility could negatively impact NW Natural's gas storage business[176]. - Temporary or sustained higher gas prices may lead to increased short-term debt and reduced liquidity due to upfront payments to suppliers[179]. - A negative change in NW Holdings' or NW Natural's credit ratings below investment grade could adversely affect borrowing costs and access to liquidity[184]. - Customers' conservation efforts may negatively impact NW Holdings' and NW Natural's revenues, particularly as sales are based on volumetric rates[188]. - Economic slowdowns may lead to lower demand for energy and increased customer payment difficulties, adversely impacting financial results[189]. Cybersecurity and Technology - NW Natural's reliance on technology for operations increases vulnerability to cyber-attacks, which could adversely affect financial results[163]. - The company is undertaking technology upgrades, including a new customer information system, which may involve significant costs and operational risks[160]. - Cybersecurity is a critical focus for NW Holdings, with a comprehensive risk management program in place to address various threats, including those from nation-state actors[201][204]. - The cybersecurity program includes regular risk assessments, employee training, and collaboration with external experts to enhance security measures[207][213]. - NW Holdings' management team is led by a Vice President with 28 years of experience in information technology, emphasizing the importance of cybersecurity leadership[213].