Northwest Natural pany(NWN) - 2025 Q3 - Quarterly Results

Financial Performance - Reported a net loss of $0.73 per share for Q3 2025, compared to a net loss of $0.71 per share in Q3 2024[3] - Achieved net income of $1.36 per share for the first nine months of 2025, up from $0.88 per share in the same period of 2024[3] - Net income for the nine months ended September 30, 2025, was $55,526,000, a 63.9% increase from $33,869,000 in 2024[46] - The company reported a GAAP net loss of $29,890,000 for Q3 2025, compared to a loss of $27,167,000 in Q3 2024[49] - Adjusted net income for the nine months ended September 30, 2025, was $62,203,000, compared to $33,869,000 in 2024, representing an 83.8% increase[49] Revenue and Growth - Operating revenues for Q3 2025 reached $164.728 million, a 20.2% increase from $136.934 million in Q3 2024[43] - NWN Gas Utility net income increased by $25.4 million (or $0.58 per share) primarily due to new rates in Oregon[16] - NWN Water net income increased by $6.3 million (or $0.14 per share) year-to-date, driven by an $11.2 million increase in operating revenues from new rates and acquisitions[22] - NWN Water's operating revenues rose by $3.2 million in Q3 2025, mainly due to new rates at its largest utility in Arizona[21] - The increase in NWN Gas Utility's margin was $68.1 million, primarily from the Oregon rate case[16] Capital Expenditures and Investments - Invested $333 million in gas and water systems in the first nine months of 2025 to enhance growth and reliability[3] - Total capital expenditures for the nine months ended September 30, 2025, were $332,652,000, up from $294,261,000 in 2024, indicating a 13.0% increase[46] - Long-term debt issued in 2025 amounted to $560,000,000, significantly higher than $150,000,000 in 2024[46] - Cash used in investing activities for the nine months ended September 30, 2025, was $667,480,000, compared to $326,295,000 in 2024, reflecting a 104.0% increase[46] Debt and Equity - Issued $185 million of inaugural investment-grade bonds at SiEnergy, refinancing existing debt[3] - Long-term debt increased to $2.128 billion in Q3 2025 from $1.555 billion in Q3 2024, reflecting a rise of 37.0%[45] - Common stock equity as a percentage of total capital structure decreased to 37.0% in Q3 2025 from 43.9% in Q3 2024[43] Dividends and Shareholder Returns - Increased annual indicated dividend rate to $1.97 per share, marking the 70th consecutive year of dividend increases[3] Future Outlook - Expects 2025 results to be above the midpoint of updated GAAP EPS guidance range of $2.59 to $2.79[3] - Reaffirmed long-term EPS growth rate target of 4% to 6% compounded annually[8] - GAAP EPS guidance for 2025 is projected between $2.59 and $2.79, with adjusted EPS guidance between $2.75 and $2.95[48] Utility Connections and Service Expansion - Added over 95,000 gas and water utility connections in the last 12 months, resulting in a combined growth rate of 10.9% as of September 30, 2025[3] - NWN Water serves approximately 197,000 people through about 79,000 meters and provides services to an additional 38,000 connections[34] - SiEnergy Gas Utility serves nearly 87,000 meters in the greater metropolitan areas of Houston, Dallas, and Austin, Texas[33] Operating Expenses - Total operating expenses for Q3 2025 were $177.151 million, up from $156.266 million in Q3 2024, representing a 13.4% increase[43] - Operations and maintenance expenses for NWN Water increased by $3.6 million due to the addition of ICH activities[22] Cash Flow - Cash provided by operating activities increased to $265,852,000 in 2025 from $219,697,000 in 2024, reflecting a 20.9% growth[46] - Cash and cash equivalents decreased to $32.203 million in Q3 2025 from $35.047 million in Q3 2024, a decline of 5.3%[45] - Cash, cash equivalents, and restricted cash at the end of the period were $35,830,000, down from $46,808,000 at the end of the same period in 2024[46]