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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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]

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][97] - Cash provided by operating activities was $200 million, with capital investments totaling $394 million, of which nearly 90% was for the gas utility [30][100] - 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][101] 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][98] - Other businesses' net income increased by $3.6 million, primarily due to a $4.4 million increase in net income from the Water and Waste utility business [29][99] - The water and wastewater customer base grew by 4.6% last year, including organic growth and acquisitions [12][83] Market Data and Key Metrics Changes - The company completed the largest Oregon gas utility rate case in its history, with a revenue requirement increase of $93.3 million and a rate base increase of $334 million to $2.1 billion [16][86] - C Energy, a newly acquired Texas gas utility, has produced strong customer growth of 22% from 2021 to 2024 compounded annually [24][94] - The company expects customer growth projections for C Energy to be backstopped by a backlog of nearly 190,000 connections under contract [104] Company Strategy and Development Direction - The company aims to capture growth from C Energy, expecting double-digit growth for years to come [42][112] - There is a focus on reaching constructive completion of the Oregon general rate case to ensure strong returns on invested capital [42][112] - The company plans to continue evaluating acquisitions and assess rate case filings to recover crucial safety investments while maintaining affordability [43][113] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position and readiness for continued growth, especially with the transition to new leadership [46][115] - The company is monitoring regulatory changes and potential tariffs that could impact costs, but does not anticipate significant effects on customer pricing [56][126] - Management highlighted the importance of natural gas in the energy mix, especially during peak demand periods, and noted voter support for diversified energy solutions [19][90] Other Important Information - The company plans to begin separately disclosing financial results for Northwest Natural Water and C Energy starting with the first quarter of 2025 [40][111] - The capital expenditure guidance for 2025 is expected to be in the range of $450 million to $500 million, with significant investments in gas utilities and C Energy [32][102] Q&A Session Summary Question: Strategic thoughts on data centers and electric load growth in Washington - Management is evaluating opportunities to connect data centers to their systems and is monitoring regulatory changes closely [51][124] 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 [59][131] - There are no immediate plans for rate case filings as the focus is on integrating the newly acquired company [62][133] 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 utilities [66][138]

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].

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].

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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]