Northwest Natural pany(NWN) - 2024 Q4 - Annual Results

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].