PART I. FINANCIAL INFORMATION Forward-Looking Statements This section outlines forward-looking statements, emphasizing their basis in current expectations and inherent uncertainties - Forward-looking statements are based on current expectations and assumptions, subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict10 - Examples of forward-looking statements include plans, projections, objectives, economic conditions (inflation, interest rates), earnings, dividends, capital expenditures, climate change matters, regulatory outcomes, and growth9 - Actual results may differ materially from those contemplated by forward-looking statements, and the company undertakes no obligation to publicly update them, except as required by law1011 Item 1. Unaudited Financial Statements This section presents unaudited consolidated financial statements for NW Holdings and NW Natural, including income, balance sheets, equity, and cash flows Consolidated Statements of Comprehensive Income (NW Holdings) Consolidated Statements of Comprehensive Income (NW Holdings, in thousands) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | Change (%) | | :-------------------------- | :------------------------------------------------ | :------------------------------------------------ | :-------------------- | :--------- | | Operating revenues | $433,470 | $462,423 | $(28,953) | -6.26% | | Total operating expenses | $323,643 | $348,915 | $(25,272) | -7.24% | | Income from operations | $109,827 | $113,508 | $(3,681) | -3.24% | | Net income | $63,823 | $71,671 | $(7,848) | -10.95% | | Basic EPS | $1.69 | $2.01 | $(0.32) | -15.92% | | Diluted EPS | $1.69 | $2.01 | $(0.32) | -15.92% | - NW Holdings' net income decreased by $7.85 million, or 10.95%, for the three months ended March 31, 2024, compared to the same period in 2023, primarily due to lower operating revenues and higher interest expense12 Consolidated Balance Sheets (NW Holdings) Consolidated Balance Sheets (NW Holdings, in thousands) | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | March 31, 2023 (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | :------------------------------ | | Total assets | $4,849,066 | $4,867,092 | $4,592,096 | | Total current assets | $537,714 | $601,440 | $576,173 | | Total non-current assets | $4,311,352 | $4,265,652 | $4,015,923 | | Total liabilities and equity | $4,849,066 | $4,867,092 | $4,592,096 | | Total current liabilities | $468,344 | $696,878 | $644,080 | | Long-term debt | $1,574,735 | $1,425,435 | $1,294,590 | | Total equity | $1,343,386 | $1,283,838 | $1,248,307 | - NW Holdings' total assets increased by $256.97 million (5.59%) from March 31, 2023, to March 31, 2024, primarily driven by an increase in property, plant, and equipment, net14 - Long-term debt for NW Holdings increased by $280.14 million (21.64%) from March 31, 2023, to March 31, 202416 Consolidated Statements of Shareholders' Equity (NW Holdings) Consolidated Statements of Shareholders' Equity (NW Holdings, in thousands) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | | :-------------------------------- | :------------------------------------------------ | :------------------------------------------------ | :-------------------- | | Total shareholders' equity, beginning balances | $1,283,838 | $1,175,441 | $108,397 | | Net income | $63,823 | $71,671 | $(7,848) | | Dividends on common stock | $(18,676) | $(17,547) | $(1,129) | | Total shareholders' equity, ending balances | $1,343,386 | $1,248,307 | $95,079 | | Dividends per share of common stock | $0.4875 | $0.4850 | $0.0025 | - NW Holdings' total shareholders' equity increased by $95.08 million year-over-year, reaching $1.34 billion, driven by common stock issuances and retained earnings, despite a decrease in net income17 Consolidated Statements of Cash Flows (NW Holdings) Consolidated Statements of Cash Flows (NW Holdings, in thousands) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | | :-------------------------------- | :------------------------------------------------ | :------------------------------------------------ | :-------------------- | | Cash provided by operating activities | $125,039 | $176,861 | $(51,822) | | Cash used in investing activities | $(82,488) | $(73,018) | $(9,470) | | Cash (used in) provided by financing activities | $(2,917) | $11,187 | $(14,104) | | Increase in cash, cash equivalents and restricted cash | $39,634 | $115,030 | $(75,396) | | Cash, cash equivalents and restricted cash, end of period | $89,258 | $155,994 | $(66,736) | - Cash provided by operating activities for NW Holdings decreased by $51.82 million, while cash used in investing activities increased by $9.47 million, and financing activities shifted from providing cash to using cash, resulting in a significant decrease in overall cash and cash equivalents18 Consolidated Statements of Comprehensive Income (NW Natural) Consolidated Statements of Comprehensive Income (NW Natural, in thousands) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (in thousands) | Change (%) | | :-------------------------- | :------------------------------------------------ | :------------------------------------------------ | :-------------------- | :--------- | | Operating revenues | $422,775 | $454,513 | $(31,738) | -6.98% | | Total operating expenses | $312,144 | $340,385 | $(28,241) | -8.30% | | Income from operations | $110,631 | $114,128 | $(3,497) | -3.06% | | Net income | $67,558 | $75,540 | $(7,982) | -10.57% | - NW Natural's net income decreased by $7.98 million, or 10.57%, for the three months ended March 31, 2024, compared to the same period in 2023, primarily due to lower operating revenues and higher interest expense19 Consolidated Balance Sheets (NW Natural) Consolidated Balance Sheets (NW Natural, in thousands) | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | March 31, 2023 (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | :------------------------------ | | Total assets | $4,494,642 | $4,511,377 | $4,300,635 | | Total current assets | $521,218 | $576,624 |
Northwest Natural pany(NWN) - 2024 Q1 - Quarterly Report