Northwest Natural Holding Co. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Northwest Natural Holding Co. has filed its Q1 2024 10-Q report, detailing financial performance and operational data.</b>

AI Summary

Northwest Natural Holding Co (NWN) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. Northwest Natural Holding Co. filed its quarterly report (10-Q) for the period ending March 31, 2024. The filing covers the first quarter of the fiscal year 2024. The company's principal business is natural gas distribution. The filing includes financial data for the periods ending March 31, 2024, and March 31, 2023. The company is incorporated in Oregon and its fiscal year ends on December 31.

Why It Matters

For investors and stakeholders tracking Northwest Natural Holding Co, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational status of Northwest Natural Holding Co. for the first quarter of 2024, enabling informed investment decisions. Understanding the company's financial health and operational segments as presented in this report is crucial for assessing its current market position and future prospects in the natural gas distribution industry.

Risk Assessment

Risk Level: low — Northwest Natural Holding Co shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant deviations from typical reporting for a company in this sector.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to understand revenue trends, cost structures, and any specific operational highlights or challenges for Q1 2024.

Key Numbers

• 2024-03-31 — Reporting Period End Date (The 10-Q covers the period ending March 31, 2024.)
• 2023-03-31 — Prior Period End Date (Comparative financial data is provided as of March 31, 2023.)
• 1231 — Fiscal Year End (The company's fiscal year ends on December 31.)

Key Players & Entities

• Northwest Natural Holding Co. (company) — Filer of the 10-Q report.
• Northwest Natural Gas Co (company) — Another entity name associated with the filer.
• 2024-03-31 (date) — End of the reporting period for the 10-Q.
• 2023-03-31 (date) — Comparative period end date.
• Portland, OR (location) — Location of the company's business and mailing address.

FAQ

Industry Context

Northwest Natural Holding Co. operates in the natural gas distribution sector, providing essential energy services to residential, commercial, and industrial customers.

Regulatory Implications

The company is subject to regulatory oversight typical for utility providers, which can impact rates, service territories, and operational standards.

What Investors Should Do

1. Analyze the balance sheet and income statement for Q1 2024 compared to Q1 2023.
2. Identify any new or updated risk factors disclosed in the filing.
3. Examine management's discussion and analysis (MD&A) for insights into performance drivers and outlook.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-06: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the first quarterly report for fiscal year 2024, providing updated financial information compared to the previous year's filings.

Filing Documents

• nwn-20240331.htm (10-Q) — 2297KB
• ex3112024q1.htm (EX-31.1) — 8KB
• ex3122024q1.htm (EX-31.2) — 8KB
• ex3132024q1.htm (EX-31.3) — 8KB
• ex3142024q1.htm (EX-31.4) — 8KB
• ex3212024q1.htm (EX-32.1) — 6KB
• ex3222024q1.htm (EX-32.2) — 6KB
• nwn-20240331_g1.jpg (GRAPHIC) — 56KB
• nwn-20240331_g2.jpg (GRAPHIC) — 38KB
• 0001733998-24-000075.txt (&nbsp;) — 11515KB
• nwn-20240331.xsd (EX-101.SCH) — 65KB
• nwn-20240331_cal.xml (EX-101.CAL) — 106KB
• nwn-20240331_def.xml (EX-101.DEF) — 535KB
• nwn-20240331_lab.xml (EX-101.LAB) — 711KB
• nwn-20240331_pre.xml (EX-101.PRE) — 603KB
• nwn-20240331_htm.xml (XML) — 2062KB

Forward-Looking Statements

Forward-Looking Statements 3 Item 1. Unaudited Financial Statements: Consolidated Statements of Comprehensive Income of Northwest Natural Holding Company for the three months ended March 31, 2024 and 2023 5 Consolidated Balance Sheets of Northwest Natural Holding Company at March 31, 2024 and 2023 and December 31, 2023 6 Consolidated Statements of Shareholders' Equity of Northwest Natural Holding Company for the three months ended March 31, 2024 and 2023 8 Consolidated Statements of Cash Flows of Northwest Natural Holding Company for the three months ended March 31, 2024 and 2023 9 Consolidated Statements of Comprehensive Income of Northwest Natural Gas Company for the three months ended March 31, 2024 and 2023 10 Consolidated Balance Sheets of Northwest Natural Gas Company at March 31, 2024 and 2023 and December 31, 2023 11 Consolidated Statements of Shareholder's Equity of Northwest Natural Gas Company for the three months ended March 31, 2024 and 2023 13 Consolidated Statements of Cash Flows of Northwest Natural Gas Company for the three months ended March 31, 2024 and 2023 14 Notes to Unaudited Consolidated Financial Statements 15 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 38 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 61 Item 4.

Controls and Procedures

Controls and Procedures 61

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 61 Item 1A.

Risk Factors

Risk Factors 61 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 62 Item 5. Other Information 62 Item 6. Exhibits 62

Signatures

Signatures 64

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to the safe harbors created by such Act. Forward-looking statements can be identified by words such as anticipates, assumes, may, intends, plans, projects, seeks, should, believes, estimates, expects, will, could, and similar references (including the negatives thereof) to future periods, although not all forward-looking statements contain these words. Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, projections and predictions; objectives, goals, visions or strategies; assumptions, generalizations and estimates; ongoing continuation of past practices or patterns; future events or performance; trends; risks; uncertainties; timing and cyclicality; economic conditions, including impacts of inflation and interest rates, bank failure, recessionary risk, and general economic uncertainty; earnings and dividends; capital expenditures and allocation; capital markets or access to capital; capital or organizational structure; matters related to climate change and our role in decarbonization or a low-carbon future; renewable natural gas, environmental attributes related thereto, and hydrogen; our strategy to reduce greenhouse gas emissions and the efficacy of communicating that strategy to shareholders, investors, stakeholders and communities; the policies and priorities of the current presidential administration and U.S. Congress; the policies and priorities of the officials elected in the 2024 presidential and congressional elections; growth; customer rates; pandemic and related illness or quarantine and economic conditions related thereto or resulting therefrom; labor relations and workforce succession; commodity costs; desirability and cost competitiveness of natural gas; gas reserves; operational performance

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS NORTHWEST NATURAL HOLDING COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended March 31, In thousands, except per share data 2024 2023 Operating revenues $ 433,470 $ 462,423 Operating expenses: Cost of gas 175,717 205,749 Operations and maintenance 73,614 71,817 Environmental remediation 5,746 5,375 General taxes 15,468 14,219 Revenue taxes 18,244 19,042 Depreciation 33,098 31,465 Other operating expenses 1,756 1,248 Total operating expenses 323,643 348,915 Income from operations 109,827 113,508 Other income (expense), net ( 1,134 ) 1,606 Interest expense, net 20,531 18,296 Income before income taxes 88,162 96,818 Income tax expense 24,339 25,147 Net income 63,823 71,671 Other comprehensive income (loss): Change in employee benefit plan liability, net of taxes of $( 66 ) for the three months ended March 31, 2024 ( 249 ) — Amortization of non-qualified employee benefit plan liability, net of taxes of $ 46 and $ 37 for the three months ended March 31, 2024 and 2023, respectively 127 102 Unrealized gain (loss) on interest rate swaps, net of taxes of $( 124 ) and $ 149 for the three months ended March 31, 2024 and 2023, respectively 346 ( 411 ) Comprehensive income $ 64,047 $ 71,362 Average common shares outstanding: Basic 37,765 35,609 Diluted 37,796 35,708 Earnings per share of common stock: Basic $ 1.69 $ 2.01 Diluted 1.69 2.01 See Notes to Unaudited Consolidated Financial Statements 5 NORTHWEST NATURAL HOLDING COMPANY CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, March 31, December 31, In thousands 2024 2023 2023 Assets: Current assets: Cash and cash equivalents $ 72,375 $ 140,821 $ 32,920 Accounts receivable 128,433 164,157 121,341 Accrued unbilled revenue 57,905 59,542 83,138 Allowance for uncollectible accounts ( 4,181 ) ( 6,760 ) ( 3,455 ) Regulatory assets 127,666 126,546 178,270 Derivative instruments 5,746 8,507 11,380 I

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. ORGANIZATION AND PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements represent the respective, consolidated financial results of Northwest Natural Holding Company (NW Holdings) and Northwest Natural Gas Company (NW Natural) and all respective companies that each registrant directly or indirectly controls, either through majority ownership or otherwise. This is a combined report of NW Holdings and NW Natural, which includes separate consolidated financial statements for each registrant. NW Natural's regulated natural gas distribution activities are reported in the natural gas distribution (NGD) segment. The NGD segment is NW Natural's core operating business and serves residential, commercial, and industrial customers in Oregon and southwest Washington. The NGD segment is the only reportable segment for NW Holdings and NW Natural. All other activities, water, wastewater and water services businesses, and other investments are aggregated and reported as other at their respective registrant. NW Holdings and NW Natural consolidate all entities in which they have a controlling financial interest. Investments in corporate joint ventures and partnerships that NW Holdings does not directly or indirectly control, and for which it is not the primary beneficiary, include NNG Financial's investment in Kelso-Beaver Pipeline and NWN Water's investment in Avion Water Company, Inc., which are accounted for under the equity method. See Note 13 for activity related to investments. NW Holdings and its direct and indirect subsidiaries are collectively referred to herein as NW Holdings, and NW Natural and its direct and indirect subsidiaries are collectively referred to herein as NW Natural. The consolidated financial statements of NW Holdings and NW Natural are presented after elimination of all intercompany balances and transactions. Information presented in these interim consolidated financ