Financial Data and Key Metrics Changes - For the full year 2025, the company reported record-adjusted earnings per share of $2.93, compared to $2.33 per share for 2024, reflecting significant earnings growth driven by new rates in Oregon and strong organic customer growth [18][19] - The company generated approximately $270 million in cash provided by operating activities, about 35% above 2024 [19] - The company invested a record $467 million in systems related to safety, reliability, and technology, with 75% allocated to Northwest Natural Gas [20] Business Line Data and Key Metrics Changes - The Northwest Natural Gas utility segment saw adjusted earnings per share improve by $0.45, primarily due to new rates in Oregon [18] - SiEnergy contributed $0.33 per share for 2025, with 18% organic customer growth and a backlog nearing 250,000 future meters, representing over a 30% increase in customer backlog [11][12] - The water segment contributed $0.35 per share, accounting for 12% of consolidated adjusted earnings per share, driven by new rates and acquisitions [14][19] Market Data and Key Metrics Changes - The company is positioned to address the growing energy demand in the Pacific Northwest, with the MX3 Gas Storage Expansion project expected to enhance regional reliability and capacity [5][9] - The Pacific Northwest Electric Grid faces a potential 9-gigawatt capacity shortfall by 2030, highlighting the importance of the company's storage capabilities [9] Company Strategy and Development Direction - The company aims to diversify into the water utility business and expand into multiple jurisdictions, including Texas, to enhance long-term growth prospects [4][5] - The transition to multi-year rate cases in Oregon and Washington is expected to create a more balanced and predictable earnings profile [7][8] - The company plans to maintain a strong balance sheet while targeting a long-term dividend payout ratio of 55%-65% [16][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and execution, anticipating another record year for capital investment and earnings in 2026 [16][25] - The company expects consolidated capital expenditures of approximately $500 million-$550 million in 2026, with a long-term EPS growth rate of 4%-6% reaffirmed [21][23] Other Important Information - The MX3 Gas Storage Expansion project is estimated to cost approximately $300 million and is expected to be in service by the end of 2029 [10] - The company is committed to returning capital to shareholders, with a focus on steady dividend increases [16][24] Q&A Session Summary Question: Guidance and Growth Range - Management is comfortable with the 4%-6% long-term EPS growth guidance without MX3, expecting to increase it to 5%-7% once the project achieves notice to proceed [27] Question: Notice to Proceed Timeline - The company expects notice to proceed by the end of next year, with several milestones already achieved [28] Question: SiEnergy Growth Expectations - SiEnergy has exceeded expectations with strong growth and record additions to its backlog, despite a slowdown in the Texas housing market [29] Question: Rate Case Considerations - Management is evaluating a rate case for SiEnergy, considering customer affordability and potential benefits from the GRIP mechanism [31][32] Question: Water Business Expansion - The company is focused on both organic growth and opportunistic acquisitions in the water business, with a robust M&A pipeline [33][34] Question: Impact of Mortgage Rates on Growth - Recent reductions in mortgage rates have shown a positive impact on housing development and customer growth in Texas [36][37]