Northwest Natural pany(NWN) - 2024 Q3 - Quarterly Results

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]