Northwest Natural pany(US:NWN)2024-11-12 20:48Financial 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].