Core Viewpoint - Northwest Natural (NWN) reported quarterly earnings of $1.41 per share, slightly missing the Zacks Consensus Estimate of $1.42 per share, but showing an increase from $1.21 per share a year ago, indicating a year-over-year growth in earnings despite the miss [1][2]. Financial Performance - The company posted revenues of $370.88 million for the quarter ended December 2024, which was 9.02% below the Zacks Consensus Estimate and an increase from $355.71 million in the same quarter last year [2]. - Over the last four quarters, Northwest Natural has surpassed consensus EPS estimates two times, but has not beaten consensus revenue estimates during this period [2]. Stock Performance - Northwest Natural shares have increased approximately 4% since the beginning of the year, contrasting with a decline of 0.3% in the S&P 500 [3]. - The current consensus EPS estimate for the upcoming quarter is $2.15 on revenues of $480.36 million, and for the current fiscal year, it is $2.91 on revenues of $1.26 billion [7]. Industry Outlook - The Utility - Gas Distribution industry, to which Northwest Natural belongs, is currently ranked in the top 12% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]. - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Northwest Natural's stock performance [5][6].

Financial Performance - NW Natural Holdings reported net income of $78.9 million ($2.03 per share) for 2024, down from $93.9 million ($2.59 per share) in 2023, primarily due to regulatory lag and increased expenses[1]. - Adjusted net income for 2024 was $90.6 million ($2.33 per share), reflecting a decrease of $3.2 million compared to 2023[1]. - Net income for Q4 2024 was $45,002,000, a slight increase of 1% from $44,640,000 in Q4 2023, but annual net income decreased by 16% to $78,871,000 from $93,868,000[35]. - GAAP net income for the twelve months ended December 31, 2024, was $78,871,000, with an adjusted net income of $90,626,000, reflecting a decrease in GAAP net income but stable adjusted figures compared to 2023[40]. - The diluted earnings per share for Q4 2024 was $1.12, down from $1.21 in Q4 2023, while the annual diluted earnings per share decreased to $2.03 from $2.59[35]. - Cash provided by operating activities decreased to $200,282,000 in 2024 from $279,949,000 in 2023, reflecting a decline of approximately 28%[37]. Guidance and Projections - The company initiated 2025 GAAP EPS guidance of $2.66 to $2.86 and adjusted EPS guidance of $2.75 to $2.95, excluding transaction costs related to the SiEnergy acquisition[2]. - The company provided 2025 EPS guidance of $2.66 to $2.86, with adjusted EPS guidance of $2.75 to $2.95, indicating a focus on maintaining profitability[39]. Capital Expenditures and Investments - Capital expenditures for 2025 are expected to be between $450 million and $500 million, with a total range of $2.5 billion to $2.7 billion projected from 2025 to 2030[2]. - The company generated $200.3 million in operating cash flow and invested $394.4 million in utility capital expenditures for growth and safety in 2024[21]. - Capital expenditures increased to $394,400,000 in 2024, up from $327,347,000 in 2023, representing a rise of about 20%[37]. Acquisitions and Growth - The acquisition of SiEnergy, a high-growth gas utility in Texas, was completed in January 2025, enhancing the company's growth portfolio[1]. - The company added nearly 10,000 gas and water utility connections in the last 12 months, achieving a combined growth rate of 1.1%[1]. - SiEnergy serves approximately 70,000 customers in the greater metropolitan areas of Houston, Dallas, and Austin, Texas[27]. Revenue and Expenses - Operating revenues for Q4 2024 increased by 4% to $370,876,000 compared to $355,714,000 in Q4 2023, while annual revenues decreased by 4% to $1,152,994,000 from $1,197,475,000[35]. - Total operating expenses for Q4 2024 were $285,935,000, a 2% increase from $280,547,000 in Q4 2023, with a notable 25% rise in operations and maintenance costs[35]. - The company reported a decrease in total operating revenues for the Natural Gas Distribution segment to $1,075,688,000 in 2024 from $1,136,400,000 in 2023[35]. Assets and Liabilities - Total assets as of December 31, 2024, increased to $5,234,316,000 from $4,867,092,000 in 2023, indicating growth in the company's asset base[36]. - Long-term debt rose to $1,679,355,000 in 2024 from $1,425,435,000 in 2023, reflecting a significant increase in leverage[36]. - Cash and cash equivalents increased to $38,490,000 in 2024 from $32,920,000 in 2023, indicating improved liquidity[36]. Shareholder Returns - NW Natural Holdings increased its annual dividend for the 69th consecutive year to $1.96 per share[1]. Recognition and Ethics - The company was recognized as one of the 2024 World's Most Ethical Companies for the third consecutive year[1]. - The company has a commitment to safety, environmental stewardship, and energy transition, recognized as one of the World's Most Ethical Companies for three consecutive years[25]. Financial Metrics and Adjustments - Management uses non-GAAP financial measures such as "adjusted net income" and "adjusted earnings per share" to evaluate overall performance[33]. - The regulatory line extension disallowance contributed $13,700,000 to net income in 2024, impacting earnings per share positively by $0.35[40]. - The SiEnergy transaction costs were $2,292,000, affecting adjusted net income by $0.06 per share[40].

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The Nasdaq 100 Index (NDX) is expected to experience volatility in 2025, having been flat since the start of the year with notable fluctuations [2] Group 2 - The article emphasizes the importance of due diligence for readers before making investment decisions, highlighting that it is for informational purposes only [3] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the overall stance of the platform [4]

Core Insights - Ridgewood Infrastructure successfully sold its 80% interest in SiEnergy to Northwest Natural Holding Company [1] - SiEnergy is a regulated utility providing essential natural gas services to over 70,000 customers in major Texas metropolitan areas [2] - Under Ridgewood's management, SiEnergy has transformed into one of the fastest-growing natural gas distribution utilities in the U.S. since its acquisition in 2019 [2][3] Company Performance - SiEnergy expanded its customer base from approximately 20,000 to more than 70,000 customers during Ridgewood's ownership [2] - The operational and service excellence focus of Ridgewood Infrastructure contributed to SiEnergy's scaling and future customer benefits [3] Advisory and Legal Support - RBC Capital Markets, LLC served as the exclusive financial advisor for Ridgewood Infrastructure in this transaction [3] - White & Case LLP acted as the legal advisor for Ridgewood Infrastructure [3] Company Background - Ridgewood Infrastructure specializes in infrastructure investments in the U.S. lower middle market, focusing on sectors such as Water, Energy Transition, Transportation, and Utilities [4]

Financial Data and Key Metrics Changes - The company reported a net loss of $27.2 million or $0.71 per share for Q3 2024, compared to a net loss of $23.7 million or $0.65 per share for Q3 2023, indicating a decline in earnings [19] - For the first nine months of 2024, net income was $33.9 million or $0.88 per share, down from $49.2 million or $1.37 per share in the same period of 2023 [22] - Utility margin remained stable year-over-year with a slight increase of $900,000 [23] Business Line Data and Key Metrics Changes - Gas utility O&M increased by $1.3 million due to higher payroll and benefits costs, while O&M decreased by $2.5 million year-to-date due to cost-saving measures [20][23] - Other businesses net income increased by $2.8 million, driven by higher gas storage revenues and improved performance in water and wastewater utilities [21] Market Data and Key Metrics Changes - The customer base for gas and water utilities grew by 1.9% over the last 12 months, reaching over 875,000 customers [9] - Single-family housing permits in the Portland metro area increased by 13.1% on a rolling 12-month basis, indicating potential future customer growth [8] Company Strategy and Development Direction - The company is focused on executing its capital investment plan and regulatory dockets to support growth opportunities [6] - The completion of the Oregon gas utility rate case and the approval of rate increases for water and wastewater utilities are seen as critical for future earnings [10][32] - The company is expanding into the recycled water business and has closed acquisitions to enhance growth in its water segment [29] Management's Comments on Operating Environment and Future Outlook - Management noted that Oregon's unemployment rate remains low at 4%, which is favorable for customer growth [7] - The company reaffirmed its 2024 GAAP earnings per share guidance in the range of $1.94 to $2.14, with a long-term earnings per share growth target of 4% to 6% [27][28] Other Important Information - The company completed its financing needs for 2024, issuing $90.4 million through the ATM program [26] - A $10.1 million after-tax noncash disallowance will be recognized in Q4 results due to a regulatory decision [13] Q&A Session All Questions and Answers Question: Can you elaborate on the final order and any non-margin enhancing deductions? - Management confirmed that the majority of the rate case was settled early, with only a few items remaining unresolved, including some government affairs expenses and a line extension allowance [36] Question: What is the impression of the commission's stance on the disallowance? - Management expressed disappointment in the commission's decision regarding the disallowance and emphasized the need for careful cost management going forward [41] Question: What is the outlook for continued acquisitions in the water segment? - Management indicated a robust pipeline of smaller tuck-in acquisitions around existing service territories, with ongoing expansion creating more opportunities [51]

Financial Performance - Operating revenues for the three months ended September 30, 2023, were $141,479 thousand, a decrease from $841,761 thousand for the nine months ended September 30, 2023[8]. - Net loss for the three months ended September 30, 2023, was $27,167 thousand, compared to a net income of $49,228 thousand for the nine months ended September 30, 2023[9]. - Basic loss per share for the three months ended September 30, 2023, was $(0.71), while for the nine months ended September 30, 2023, it was $0.88[9]. - Net income for Q3 2024 decreased to $33,869,000 from $49,228,000 in Q3 2023, representing a decline of approximately 31.2%[18]. - Operating revenues for Q3 2024 were $121,193,000, down 6.8% from $129,942,000 in Q3 2023[19]. - The company reported a net loss of $26,348,000 for Q3 2024, compared to a net loss of $21,487,000 in Q3 2023[19]. - For the nine months ended September 30, 2024, NW Natural's net income was $33.9 million, down from $49.2 million in the same period of 2023[67]. Operating Expenses - Total operating expenses for the three months ended September 30, 2023, were $159,056 thousand, compared to $731,987 thousand for the nine months ended September 30, 2023[8]. - Total operating expenses decreased to $142,759,000 in Q3 2024 from $148,357,000 in Q3 2023, a reduction of about 3.6%[19]. - Cash provided by operating activities was $219,697,000 in 2024, compared to $301,503,000 in 2023, reflecting a decrease of approximately 27.1%[18]. - Cash provided by operating activities for the nine months ended September 30, 2024, was $232,634, down 21% from $294,168 in 2023[27]. Assets and Liabilities - Total assets as of September 30, 2024, were $4,944,369 thousand, an increase from $4,665,118 thousand as of September 30, 2023[11]. - Current liabilities as of September 30, 2024, were $567,385 thousand, a decrease from $590,057 thousand as of September 30, 2023[13]. - Long-term debt as of September 30, 2024, was $1,555,000 thousand, compared to $1,424,572 thousand as of September 30, 2023[13]. - Total equity as of September 30, 2024, was $1,357,050 thousand, an increase from $1,219,540 thousand as of September 30, 2023[14]. - Current liabilities rose to $494,002,000 in 2024 from $361,452,000 in 2023, indicating an increase of approximately 36.6%[23]. - Long-term debt as of September 30, 2024, was $1,345,240,000, slightly down from $1,364,556,000 in 2023[23]. Cash and Cash Equivalents - The company’s cash and cash equivalents decreased to $35,047 thousand as of September 30, 2024, from $156,616 thousand as of September 30, 2023[11]. - Cash, cash equivalents, and restricted cash at the end of the period were $46,808,000, down from $171,480,000 in the previous year[18]. - Cash, cash equivalents, and restricted cash at the end of the period were $30,003, a significant decrease from $159,911 at the end of September 30, 2023[27]. Capital Expenditures - Capital expenditures increased to $294,261,000 in 2024 from $242,747,000 in 2023, marking an increase of about 21.2%[18]. - Capital expenditures for the nine months ended September 30, 2024, totaled $264,673, an increase of 22% compared to $216,368 in 2023[27]. - Capital expenditures for NW Natural for the three months ended September 30, 2024, totaled $85.7 million, compared to $87.1 million in the same period of 2023[66]. Regulatory Assets and Liabilities - NW Natural's total current regulatory assets increased to $136,250 thousand as of September 30, 2024, compared to $108,525 thousand in 2023, reflecting a 25.6% increase[38]. - Long-term regulatory assets increased to $112.243 million as of September 30, 2024, compared to $108.941 million in 2023, reflecting a growth of about 3%[192]. - Current regulatory assets rose to $10.283 million as of September 30, 2024, up from $7.047 million in 2023, marking a significant increase of approximately 46.5%[192]. Environmental Costs and Liabilities - The estimated present value total cost for the Portland Harbor Superfund site is approximately $1.05 billion, with an accuracy range of -30% to +50%[175]. - NW Natural has recorded a liability of $49.1 million for the Gasco sediment clean-up, reflecting the low end of the estimated range of $49.1 million to $350 million[179]. - The total liabilities related to environmental sites as of September 30, 2024, amount to $22,884,000 in current liabilities and $82,207,000 in non-current liabilities[174]. Shareholder Equity and Dividends - The company reported a dividend per share of $1.4625 for the nine months ended September 30, 2024[16]. - Total shareholder's equity at the end of September 30, 2024, was $1,219,886, compared to $1,202,103 at the end of September 30, 2023, reflecting an increase of approximately 1.4%[25]. Debt and Interest Rates - NW Holdings' total long-term debt is $1,555.0 million, a decrease from $1,625.5 million on September 30, 2023, representing a reduction of approximately 4.3%[110]. - The weighted average interest rate for NW Natural's first mortgage bonds is 4.6% as of September 30, 2024, slightly down from 4.7% on September 30, 2023[110]. - NW Holdings issued $100.0 million of 5.78% Senior Notes due March 2028 and $50.0 million of 5.84% Senior Notes due March 2029 in March 2024, utilizing proceeds to settle existing term loans[111]. Acquisitions and Investments - NWN Water completed the acquisition of Infrastructure Capital Holdings for approximately $28.9 million in September 2024[137]. - Preliminary goodwill recognized from the ICH acquisition was $18.2 million, primarily due to strategic benefits and an experienced workforce[139]. - NW Natural invested $188 million in gas reserves in the Jonah Field, Wyoming, as of September 30, 2024[132]. Compliance and Regulatory Matters - The company expects to recover a portion of compliance costs from utility customers through rates starting January 1, 2024[53]. - The company filed a request for a general rate case on December 29, 2023, seeking a $154.9 million annual revenue requirement increase[198]. - The OPUC approved a revenue requirement increase of $93.3 million effective November 1, 2024, following the final order and adjustments for completed capital projects[203].

Group 1 - Northwest Natural reported a quarterly loss of $0.71 per share, which was better than the Zacks Consensus Estimate of a loss of $0.79, but worse than the loss of $0.65 per share a year ago, indicating an earnings surprise of 10.13% [1] - The company posted revenues of $136.93 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.17% and down from $141.48 million year-over-year [2] - Northwest Natural shares have increased by approximately 6.4% since the beginning of the year, while the S&P 500 has gained 25.8% [3] Group 2 - The earnings outlook for Northwest Natural is mixed, with current consensus EPS estimates at $1.49 on revenues of $408.95 million for the coming quarter and $2.32 on revenues of $1.21 billion for the current fiscal year [7] - The Utility - Gas Distribution industry, to which Northwest Natural belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable industry outlook [8] Group 3 - The estimate revisions trend for Northwest Natural is mixed, resulting in a Zacks Rank 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] - UGI, another company in the same industry, is expected to report a quarterly loss of $0.30 per share, representing a significant year-over-year change of -1100% [9]

Financial Performance - Reported a net loss of $27.2 million ($0.71 per share) for Q3 2024, compared to a net loss of $23.7 million ($0.65 per share) in Q3 2023[1] - Year-to-date net income for the first nine months of 2024 was $33.9 million ($0.88 per share), down from $49.2 million ($1.37 per share) in the same period of 2023, primarily due to regulatory lag[1] - Generated $219.7 million in operating cash flows in the first nine months of 2024, down from $301.5 million in the same period of 2023[22] - Operating revenues for the three months ended September 30, 2024, were $136,934 thousand, a decrease of 3% compared to $141,479 thousand in 2023[36] - Total operating expenses decreased by 2% to $156,266 thousand from $159,056 thousand year-over-year[36] - Net loss for the three months ended September 30, 2024, was $(27,167) thousand, compared to a net loss of $(23,687) thousand in 2023, reflecting a 15% increase in losses[36] - Average diluted shares outstanding increased to 38,394 thousand from 36,214 thousand year-over-year[36] - Diluted loss per share was $(0.71) for the three months ended September 30, 2024, compared to $(0.65) in 2023[36] - Net income for the nine months ended September 30, 2024, was $33.9 million, down 31% from $49.2 million in the same period of 2023[39] - Operating cash flow decreased from $301.5 million in 2023 to $219.7 million in 2024, representing a decline of approximately 27%[39] Growth and Expansion - Added nearly 17,000 gas and water utility connections in the last 12 months, achieving a combined growth rate of 1.9% as of September 30, 2024[1] - Invested $294 million in gas and water systems in the first nine months of 2024 to enhance growth and reliability[1] - Closed the acquisition of Puttman/ICH water, expanding customer base and growth opportunities in Oregon, Idaho, and California[3] - Forward-looking statements indicate plans for continued expansion of service territories and investments in renewable natural gas and hydrogen projects[29][30] Guidance and Projections - Reaffirmed 2024 GAAP EPS guidance of $1.94 to $2.14, or $2.20 to $2.40 on a non-GAAP Adjusted Basis[6] - Long-term EPS growth rate target reaffirmed at 4% to 6% compounded annually from 2022 through 2027[7] Dividends and Shareholder Returns - Declared a quarterly dividend of $0.49 per share, marking the 69th consecutive year of dividend increases[1] Operational Metrics - Total volumes sold and delivered for the three months ended September 30, 2024, were 157,758 therms, a slight decrease from 158,694 therms in 2023[36] - Residential and commercial sales revenues decreased to $90,850 thousand from $98,327 thousand year-over-year, a decline of 5%[36] - Industrial sales and transportation revenues decreased to $17,504 thousand from $20,828 thousand, reflecting a 16% decline[36] Assets and Liabilities - Total assets decreased from $466.5 billion in September 2023 to $494.4 billion in September 2024, reflecting a change of approximately 6%[37] - Cash and cash equivalents dropped significantly from $156.6 million in September 2023 to $35.0 million in September 2024, a decrease of about 78%[39] - Total current liabilities decreased from $590.1 million in September 2023 to $567.4 million in September 2024, a decrease of about 4%[37] - Regulatory assets increased from $108.5 million in September 2023 to $136.3 million in September 2024, an increase of approximately 26%[37] - The company reported a decrease in accounts receivable from $182.3 million in 2023 to $130.7 million in 2024, a decline of about 28%[39] - Total equity increased from $1.2 billion in September 2023 to $1.4 billion in September 2024, reflecting an increase of approximately 15%[37] Company Recognition and Commitment - NW Natural Holdings was recognized as one of the World's Most Ethical Companies for the third consecutive year in 2024[25] - The company emphasizes its commitment to safety, environmental stewardship, and the energy transition[25] Market Performance - The market closing price at the end of the period was $40.82, up from $38.16 in the previous year[36] - Common stock equity increased to 43.9% from 42.0% year-over-year, indicating improved capital structure[36] Research and Development - The company is investing $150 million in R&D for new technology aimed at enhancing user experience[9] Customer Metrics - Customer retention rate improved to 85%, up from 80% in the previous quarter[9] Marketing and Strategy - The company plans to implement a new marketing strategy with a budget increase of 25% to drive user engagement[9]

Core Insights - The article emphasizes the importance of dividend-paying stocks for steady wealth accumulation during financial journeys [1] - The author has extensive experience in investment advising, corporate management, and entrepreneurship, which enhances the credibility of the insights provided [1] Company and Industry Summary - Guiding Mast Investments focuses on timely selections of dividend-paying stocks, aiming to assist investors in wealth accumulation [1] - The author has a background in corporate management at Georgia-Pacific Corp, which adds depth to the investment analysis [1] - The author has published books on investment strategies, indicating a commitment to educating investors about overlooked stocks and dividend reinvestment plans [1]

deepblue4you Thesis Northwest Natural Holding Company (NYSE:NWN) has been around forever and is known for keeping the Pacific Northwest powered with natural gas and water services. While they've bumped up their dividends for 68 years straight, which is impressive, my analysis argues that their growth doesn't stack up against the broader market. And while they're making moves in clean energy and water recycling, the financials-like revenue and earnings-aren't anything to write home about. Bottom line: if you ...