Financial Data and Key Metrics Changes - For 2024, the company achieved adjusted net income of $90.6 million or $2.33 per share, a decrease from $93.9 million or $2.59 per share in 2023, primarily due to regulatory lag until new Oregon gas utility rates were effective [27][97] - Cash provided by operating activities was $200 million, with capital investments totaling $394 million, of which nearly 90% was for the gas utility [30][100] - The company initiated 2025 adjusted earnings guidance in the range of $2.75 to $2.95 per share, reflecting strong contributions from other businesses [31][101] Business Line Data and Key Metrics Changes - The Natural Gas Distribution segment saw a utility margin increase of $26.3 million mainly due to new rates in Oregon, while gas utility O&M decreased by $2.1 million [28][98] - Other businesses' net income increased by $3.6 million, primarily due to a $4.4 million increase in net income from the Water and Waste utility business [29][99] - The water and wastewater customer base grew by 4.6% last year, including organic growth and acquisitions [12][83] Market Data and Key Metrics Changes - The company completed the largest Oregon gas utility rate case in its history, with a revenue requirement increase of $93.3 million and a rate base increase of $334 million to $2.1 billion [16][86] - C Energy, a newly acquired Texas gas utility, has produced strong customer growth of 22% from 2021 to 2024 compounded annually [24][94] - The company expects customer growth projections for C Energy to be backstopped by a backlog of nearly 190,000 connections under contract [104] Company Strategy and Development Direction - The company aims to capture growth from C Energy, expecting double-digit growth for years to come [42][112] - There is a focus on reaching constructive completion of the Oregon general rate case to ensure strong returns on invested capital [42][112] - The company plans to continue evaluating acquisitions and assess rate case filings to recover crucial safety investments while maintaining affordability [43][113] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position and readiness for continued growth, especially with the transition to new leadership [46][115] - The company is monitoring regulatory changes and potential tariffs that could impact costs, but does not anticipate significant effects on customer pricing [56][126] - Management highlighted the importance of natural gas in the energy mix, especially during peak demand periods, and noted voter support for diversified energy solutions [19][90] Other Important Information - The company plans to begin separately disclosing financial results for Northwest Natural Water and C Energy starting with the first quarter of 2025 [40][111] - The capital expenditure guidance for 2025 is expected to be in the range of $450 million to $500 million, with significant investments in gas utilities and C Energy [32][102] Q&A Session Summary Question: Strategic thoughts on data centers and electric load growth in Washington - Management is evaluating opportunities to connect data centers to their systems and is monitoring regulatory changes closely [51][124] Question: Clarification on C Energy's net income growth and rate case filings - The projected CAGR for C Energy includes assumptions about rate case adjustments and capital structure improvements [59][131] - There are no immediate plans for rate case filings as the focus is on integrating the newly acquired company [62][133] Question: Breakdown of capital expenditures by segment - Capital expenditures are projected at approximately $350 million for Northwest Natural gas, $80 million for C Energy, and $60 million for water utilities [66][138]