Group 1 - The article emphasizes that now is an opportune time for income investors, particularly in the context of high interest rates affecting the market's perception of dividend stocks [2] - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] Group 2 - The article suggests that the market has not fully adjusted to the implications of high interest rates on dividend stocks, indicating potential investment opportunities [2]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Northwest Natural (NWN) currently highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Earnings Growth - Earnings growth is a critical factor for growth investors, with a preference for double-digit growth rates indicating strong future prospects [4]. - Northwest Natural's projected EPS growth for the current year is 23.4%, significantly surpassing the industry average of 9.2% [5]. Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6]. - Northwest Natural's year-over-year cash flow growth stands at 4.9%, compared to an industry average of -0.1% [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 7.2%, slightly above the industry average of 7% [7]. Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, making them an important consideration for investors [8]. - The current-year earnings estimates for Northwest Natural have increased by 1.4% over the past month, indicating a favorable outlook [8]. Conclusion - Northwest Natural has achieved a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [10].

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].

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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]

Financial Data and Key Metrics Changes - The company reported adjusted net income of $91.8 million or $2.28 per share for Q1 2025, compared to $63.8 million or $1.69 per share for the same period in 2024, reflecting strong results across all business segments [12][25][26] - The combined utility customer growth rate was 9.6% for the twelve months ended March 31, 2025, primarily driven by the acquisition of Sea Energy, which added approximately 73,000 gas meters in Texas [13][26] Business Line Data and Key Metrics Changes - The Northwest Natural Gas Utility segment saw net income increase by $21.5 million or $0.42 per share, with margin increasing by $38.7 million due to new rates effective November 1, 2024 [26] - Sea Energy contributed net income of $5.5 million or $0.14 per share for Q1 2025, meeting expectations for the quarter [27] - The Northwest Natural Water segment's net income increased by $2.4 million or $0.06 per share, driven by new rates and additional revenues from acquisitions [28] Market Data and Key Metrics Changes - The company expects to invest approximately $60 million in water utilities in 2025 to replace aging infrastructure and improve treatment facilities [21] - The company anticipates a quarterly profile for 2025 to be similar to previous years, with the majority of revenues generated in the first and fourth quarters during winter heating months [29] Company Strategy and Development Direction - The company is focused on expanding its customer base and enhancing service reliability through strategic acquisitions, such as the recent acquisition of Hughes Gas Resources for $60 million [18][19] - The company plans to refresh rates at multiple water utilities in 2025, primarily related to recovering critical infrastructure investments [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, reaffirming annual adjusted earnings guidance in the range of $2.75 to $2.95 per share [29] - The company highlighted the importance of its gas distribution and storage infrastructure in the Pacific Northwest, emphasizing its role in providing reliable and cost-effective energy solutions [24] Other Important Information - The company has a liquidity of over $600 million as of March 31, 2025, with significant availability on lines of credit and cash on hand [32] - The company completed a $325 million junior subordinated debenture issuance to secure financing for the Sea Energy transaction [33] Q&A Session Summary Question: What is the outlook for water utilities in 2025? - Management indicated that the increase in Q1 results is largely driven by rate case activity from last year, with expectations for continued growth and earnings contribution from Northwest Natural Water [36][37] Question: Is the Hughes acquisition similar to Sea Energy in terms of customer base? - Management confirmed that the Hughes acquisition primarily consists of residential and commercial customers, similar to Sea Energy, and provides geographic overlap for operational synergies [39][40]

Financial Data and Key Metrics Changes - The company reported adjusted net income of $91.8 million or $2.28 per share for Q1 2025, compared to $63.8 million or $1.69 per share for the same period in 2024, reflecting strong results across all business segments [23][11][24] - The combined utility customer growth rate was 9.6% for the twelve months ended March 31, 2025, primarily driven by the acquisition of Sea Energy, which added approximately 73,000 gas meters in Texas [12][11] Business Line Data and Key Metrics Changes - The Northwest Natural Gas Utility segment saw net income increase by $21.5 million or $0.42 per share, with margin increasing by $38.7 million due to new rates effective November 1, 2024 [24][25] - Sea Energy contributed net income of $5.5 million or $0.14 per share for Q1 2025, meeting expectations for the quarter [25] - The Northwest Natural Water segment's net income increased by $2.4 million or $0.06 per share, driven by new rates and additional revenues from acquisitions [25] Market Data and Key Metrics Changes - The company expects to refresh rates at multiple water utilities in Idaho, Washington, and Oregon in 2025, primarily related to recovery of critical infrastructure investments [19] - The company anticipates a quarterly profile for 2025 to be similar to previous years, with the majority of revenues generated in the first and fourth quarters during winter heating months [28] Company Strategy and Development Direction - The company is focused on expanding its operations in Texas, with the acquisition of Hughes Gas Resources expected to close in Q2 2025, which will enhance operational synergies and customer growth [17][18] - The company plans to invest approximately $60 million in water utilities in 2025 to replace aging infrastructure and improve treatment facilities [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving annual goals and reaffirmed 2025 adjusted earnings guidance in the range of $2.75 to $2.95 per share [28] - The company highlighted the importance of its gas distribution and storage infrastructure in the Pacific Northwest, emphasizing reliability and cost-effectiveness in meeting energy needs [21][22] Other Important Information - The company has a liquidity of over $600 million as of March 31, 2025, with no material debt maturities expected in 2025 [31][32] - The company completed a $325 million junior subordinated debenture issuance to secure financing for the Sea Energy transaction [32] Q&A Session Summary Question: Outlook for water side in 2025 - Management indicated that the increase in Q1 results was largely driven by rate case activity from the previous year, with expectations for continued growth and earnings contribution from Northwest Natural Water [35][36] Question: Details on Hughes acquisition and customer backlog - Management confirmed that the Hughes acquisition primarily consists of residential and commercial customers, similar to Sea Energy, with significant geographic overlap [38][39]

Core Viewpoint - Northwest Natural (NWN) reported quarterly earnings of $2.28 per share, exceeding the Zacks Consensus Estimate of $2.09 per share, and showing an increase from $1.69 per share a year ago, indicating a positive earnings surprise of 9.09% [1][2] Financial Performance - The company achieved revenues of $494.28 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.37%, compared to $433.47 million in the same quarter last year [2] - Over the last four quarters, Northwest Natural has exceeded consensus EPS estimates three times, but has only topped revenue estimates once [2] Stock Performance - Northwest Natural shares have increased approximately 10.1% since the beginning of the year, contrasting with a decline of -3.9% in the S&P 500 [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $234.73 million, while for the current fiscal year, it is $2.83 on revenues of $1.26 billion [7] - The estimate revisions trend for Northwest Natural is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Utility - Gas Distribution industry, to which Northwest Natural belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Another company in the same industry, Atmos Energy (ATO), is expected to report quarterly earnings of $2.92 per share, reflecting a year-over-year increase of +2.5% [9]

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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