Northwest Natural pany(NWN) - 2022 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For 2022, the company reported net income of $86.3 million or $2.54 per share, an increase of $7.6 million or around 10% compared to net income of $78.7 million or $2.56 per share in 2021 [8][36] - For the fourth quarter, net income was $47.9 million or $1.36 per share compared to $40.5 million or $1.32 per share for the same period in 2021 [32] Business Line Data and Key Metrics Changes - The gas utility contributed an additional $0.10 of earnings in 2022, primarily due to new rates in Oregon and Washington, customer growth, and amortization of deferrals approved in the Oregon rate case [37] - The water and wastewater utilities grew 3.8% over the last 12 months, with Texas posting 8% organic growth and Idaho's water utility providing 4% growth [14][15] Market Data and Key Metrics Changes - In Oregon, employment grew at a strong annualized rate of 4% in the fourth quarter, while unemployment was 4.5% in December 2022, up from a low of 3.5% in July [11][12] - The housing market has moderated, with home sales, new listings, and average prices all down, impacting gas utility customer growth [12] Company Strategy and Development Direction - The company is focused on decarbonization and believes in leveraging existing systems innovatively rather than solely electrifying gas systems [23][28] - The company is investing in renewable natural gas (RNG) and has contracted to invest approximately $50 million in two facilities being developed by EDL [52][53] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation is weighing on households, and they are working closely with commissions to support customers through rate mitigation strategies [16][19] - The company initiated earnings guidance for 2023 in the range of $2.55 to $2.75 per share, assuming continued customer growth and average weather conditions [43] Other Important Information - The company increased dividends for the 67th year and was recognized as one of the world's most ethical companies by Ethisphere [7] - Cash provided by operating activities was $148 million, with nearly $340 million invested into the business, primarily for gas utility capital expenditures [40] Q&A Session Summary - No questions were recorded during the Q&A session, and the call concluded without further inquiries [63]