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Northwest Natural pany(NWN) - 2024 Q4 - Annual Results
NWNNorthwest Natural pany(NWN)2025-02-27 23:18

Financial Performance - NW Natural Holdings reported net income of 78.9million(78.9 million (2.03 per share) for 2024, down from 93.9million(93.9 million (2.59 per share) in 2023, primarily due to regulatory lag and increased expenses[1]. - Adjusted net income for 2024 was 90.6million(90.6 million (2.33 per share), reflecting a decrease of 3.2millioncomparedto2023[1].−NetincomeforQ42024was3.2 million compared to 2023[1]. - Net income for Q4 2024 was 45,002,000, a slight increase of 1% from 44,640,000inQ42023,butannualnetincomedecreasedby1644,640,000 in Q4 2023, but annual net income decreased by 16% to 78,871,000 from 93,868,000[35].−GAAPnetincomeforthetwelvemonthsendedDecember31,2024,was93,868,000[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,reflectingadecreaseinGAAPnetincomebutstableadjustedfigurescomparedto2023[40].−ThedilutedearningspershareforQ42024was90,626,000, 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 1.21inQ42023,whiletheannualdilutedearningspersharedecreasedto1.21 in Q4 2023, while the annual diluted earnings per share decreased to 2.03 from 2.59[35].−Cashprovidedbyoperatingactivitiesdecreasedto2.59[35]. - Cash provided by operating activities decreased to 200,282,000 in 2024 from 279,949,000in2023,reflectingadeclineofapproximately28279,949,000 in 2023, reflecting a decline of approximately 28%[37]. Guidance and Projections - The company initiated 2025 GAAP EPS guidance of 2.66 to 2.86andadjustedEPSguidanceof2.86 and adjusted EPS guidance of 2.75 to 2.95,excludingtransactioncostsrelatedtotheSiEnergyacquisition[2].−Thecompanyprovided2025EPSguidanceof2.95, excluding transaction costs related to the SiEnergy acquisition[2]. - The company provided 2025 EPS guidance of 2.66 to 2.86,withadjustedEPSguidanceof2.86, with adjusted EPS guidance of 2.75 to 2.95,indicatingafocusonmaintainingprofitability[39].CapitalExpendituresandInvestments−Capitalexpendituresfor2025areexpectedtobebetween2.95, indicating a focus on maintaining profitability[39]. Capital Expenditures and Investments - Capital expenditures for 2025 are expected to be between 450 million and 500million,withatotalrangeof500 million, with a total range of 2.5 billion to 2.7billionprojectedfrom2025to2030[2].−Thecompanygenerated2.7 billion projected from 2025 to 2030[2]. - The company generated 200.3 million in operating cash flow and invested 394.4millioninutilitycapitalexpendituresforgrowthandsafetyin2024[21].−Capitalexpendituresincreasedto394.4 million in utility capital expenditures for growth and safety in 2024[21]. - Capital expenditures increased to 394,400,000 in 2024, up from 327,347,000in2023,representingariseofabout20327,347,000 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 355,714,000inQ42023,whileannualrevenuesdecreasedby4355,714,000 in Q4 2023, while annual revenues decreased by 4% to 1,152,994,000 from 1,197,475,000[35].−TotaloperatingexpensesforQ42024were1,197,475,000[35]. - Total operating expenses for Q4 2024 were 285,935,000, a 2% increase from 280,547,000inQ42023,withanotable25280,547,000 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 1,136,400,000in2023[35].AssetsandLiabilities−TotalassetsasofDecember31,2024,increasedto1,136,400,000 in 2023[35]. Assets and Liabilities - Total assets as of December 31, 2024, increased to 5,234,316,000 from 4,867,092,000in2023,indicatinggrowthinthecompany′sassetbase[36].−Long−termdebtroseto4,867,092,000 in 2023, indicating growth in the company's asset base[36]. - Long-term debt rose to 1,679,355,000 in 2024 from 1,425,435,000in2023,reflectingasignificantincreaseinleverage[36].−Cashandcashequivalentsincreasedto1,425,435,000 in 2023, reflecting a significant increase in leverage[36]. - Cash and cash equivalents increased to 38,490,000 in 2024 from 32,920,000in2023,indicatingimprovedliquidity[36].ShareholderReturns−NWNaturalHoldingsincreaseditsannualdividendforthe69thconsecutiveyearto32,920,000 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 13,700,000tonetincomein2024,impactingearningspersharepositivelyby13,700,000 to net income in 2024, impacting earnings per share positively by 0.35[40]. - The SiEnergy transaction costs were 2,292,000,affectingadjustednetincomeby2,292,000, affecting adjusted net income by 0.06 per share[40].