Northwest Natural pany(US:NWN)2025-11-05 18:34Financial Performance - Operating revenues for Q3 2025 increased to $164.7 million, up 20.3% from $136.9 million in Q3 2024[14] - Net income for the nine months ended September 30, 2025, was $55.5 million, compared to $33.9 million for the same period in 2024, representing a 63.8% increase[14] - The company reported a loss from operations of $12.4 million for Q3 2025, an improvement from a loss of $19.3 million in Q3 2024[14] - Net income for the nine months ended September 30, 2025, increased to $55,526,000, up from $33,869,000 in 2024, representing a growth of 63.9%[20] - Operating revenues for the nine months ended September 30, 2025, reached $776,845,000, compared to $744,156,000 in 2024, reflecting an increase of 4.4%[21] - The company experienced a net loss of $27,080,000 for the three months ended September 30, 2025, compared to a net loss of $26,348,000 in 2024[21] - For the three months ended September 30, 2025, NW Holdings reported operating revenues of $164.7 million, up from $146.7 million in the same period of 2024[161] - The net income for the nine months ended September 30, 2025, was $59.2 million, compared to $19.3 million for the same period in 2024[161] Expenses and Liabilities - Total operating expenses for Q3 2025 were $177.2 million, a 13.3% increase from $156.3 million in Q3 2024[14] - Current liabilities increased to $742.8 million as of September 30, 2025, compared to $567.4 million in 2024, a 30.8% rise[18] - Long-term debt rose to $2.13 billion as of September 30, 2025, compared to $1.56 billion in 2024, indicating a 37.0% increase[18] - Interest paid, net of capitalization, increased to $90,500,000 for the nine months ended September 30, 2025, compared to $57,837,000 in 2024[20] - Interest expense for NW Holdings was $30,435,000 for the three months ended September 30, 2025, compared to $19,060,000 in the same period of 2024[71] Assets and Equity - Total assets as of September 30, 2025, were $5.85 billion, up from $4.94 billion a year earlier, reflecting a 18.3% increase[16] - Total equity increased to $1,470,909,000 as of September 30, 2025, compared to $1,219,886,000 in 2024, reflecting a growth of 20.6%[25] - Total assets as of September 30, 2025, were $4,793,810,000, up from $4,498,485,000 in 2024, showing an increase of 6.6%[23] Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2025, was $265,852,000, an increase from $219,697,000 in 2024, marking a rise of 21%[20] - The company reported a decrease in cash and cash equivalents to $35,830,000 at the end of the period, down from $46,808,000 in 2024[20] - The cash and cash equivalents for NW Holdings decreased to $32.203 million as of September 30, 2025, down from $35.047 million in 2024, representing a decline of 5.4%[40] - NW Natural's cash and cash equivalents increased to $20.265 million as of September 30, 2025, compared to $18.268 million in 2024, reflecting an increase of 10.9%[40] Capital Expenditures - Capital expenditures for the nine months ended September 30, 2025, totaled $332,652,000, compared to $294,261,000 in 2024, indicating an increase of 13%[20] - Capital expenditures for NW Holdings totaled $109,988,000 for the three months ended September 30, 2025, compared to $95,332,000 in the same period of 2024[71] - NW Holdings' total capital expenditures for the nine months ended September 30, 2025, were $262.698 million, compared to $264.673 million in the same period of 2024[73] Acquisitions - The acquisition of SiEnergy Operating, LLC on January 7, 2025, expanded the company's regulated natural gas distribution activities into Texas, serving metropolitan areas including Houston, Dallas, and Austin[29] - NW Holdings acquired SiEnergy Operating, LLC for a total consideration of $271.1 million in cash and $156.1 million of assumed debt, serving approximately 79,000 customers in Texas[153] - Preliminary goodwill of $171.1 million was recognized from the SiEnergy acquisition, primarily due to its natural gas utility service territory and expected growth benefits[156] - The acquisition of Hughes Gas Resources, Inc. (rebranded as Pines Holdings) was completed for $60.8 million in cash, expanding SiEnergy's customer base by approximately 7,000 in Texas[158] Regulatory and Environmental Liabilities - The company has recorded environmental liabilities totaling $115.6 million as of September 30, 2025, compared to $82.2 million in 2024, representing a 40.6% increase[201] - The Portland Harbor Superfund site cleanup is estimated to cost approximately $1.05 billion, with a potential variance of -30% to +50%[202] - NW Natural has recorded a liability of $52.8 million for the Gasco sediment clean-up, reflecting the low end of the estimated costs ranging from $52.8 million to $350 million[206] - The estimated costs for remedial alternatives at the Gasco uplands site range from $41.5 million to $358 million, with NW Natural recording a liability of $41.5 million[213] Shareholder Returns - The company declared dividends of $0.49 per share for Q3 2025, slightly up from $0.4875 per share in Q3 2024[19] - The company paid cash dividends on common stock totaling $57,573,000 for the nine months ended September 30, 2025, compared to $53,760,000 in 2024, an increase of 7.4%[27] Derivatives and Hedging - NW Holdings hedged approximately 80% of forecasted sales volume for the 2024-25 gas year, including 64% in financial hedges[178] - Unrealized losses from natural gas derivatives for the three months ended September 30, 2025, amounted to $31.6 million[179] - For the nine months ended September 30, 2025, NW Natural reported realized net losses of $69.5 million from natural gas financial derivative contracts, compared to net losses of $83.2 million for the same period in 2024, indicating a 16.5% improvement year-over-year[182] Employee Benefits and Compensation - NW Natural made cash contributions of $8.4 million to its defined benefit pension plans for the nine months ended September 30, 2025, compared to $17.9 million for the same period in 2024[141] - The net periodic benefit cost charged to expense for NW Natural was $13.002 million for the nine months ended September 30, 2025, up from $8.270 million in 2024, reflecting an increase of 57.5%[139] - During the nine months ended September 30, 2025, 66,018 RSUs were granted under the LTIP with a weighted-average grant date fair value of $41.68 per share[124] Miscellaneous - The company does not have any material contract assets or liabilities, as net accounts receivable and accrued unbilled revenue balances are unconditional[87] - The company has not posted collateral with counterparties as of September 30, 2025, minimizing liquidity risk through diversification and credit limits[183]