Northwest Natural Holding Co Q2 2024 10-Q Filing

Ticker: NWN · Form: 10-Q · Filed: 2024-08-02T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, earnings, utility

Related Tickers: NWN

TL;DR

**NWN files Q2 10-Q. All systems go.**

AI Summary

Northwest Natural Holding Company filed its 10-Q for the period ending June 30, 2024. The company, headquartered in Portland, Oregon, operates in the natural gas distribution sector. This filing provides an update on its financial performance and operational status for the second quarter of 2024.

Why It Matters

This filing provides investors and analysts with the latest financial and operational data for Northwest Natural Holding Co, crucial for understanding the company's performance and future outlook.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Players & Entities

FAQ

What is the primary business of Northwest Natural Holding Co?

Northwest Natural Holding Co is primarily involved in natural gas distribution, as indicated by its Standard Industrial Classification code [4924].

Where is Northwest Natural Holding Co headquartered?

The company is headquartered at 250 SW Taylor Street, Portland, OR 97204.

What period does this 10-Q filing cover?

This 10-Q filing covers the period ending June 30, 2024.

What is the IRS number for Northwest Natural Holding Co?

The IRS number for Northwest Natural Holding Co is 824710680.

What is the SEC file number for Northwest Natural Holding Co?

The SEC file number for Northwest Natural Holding Co is 001-38681.

Filing Stats: 4,351 words · 17 min read · ~15 pages · Grade level 20 · Accepted 2024-08-02 13:05:52

Filing Documents

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 and six months ended June 30, 2024 and 2023 5 Consolidated Balance Sheets of Northwest Natural Holding Company at June 30, 2024 and 2023 and December 31, 2023 6 Consolidated Statements of Shareholders' Equity of Northwest Natural Holding Company for the three and six months ended June 30, 2024 and 2023 8 Consolidated Statements of Cash Flows of Northwest Natural Holding Company for the six months ended June 30, 2024 and 2023 9 Consolidated Statements of Comprehensive Income of Northwest Natural Gas Company for the three and six months ended June 30, 2024 and 2023 10 Consolidated Balance Sheets of Northwest Natural Gas Company at June 30, 2024 and 2023 and December 31, 2023 11 Consolidated Statements of Shareholder's Equity of Northwest Natural Gas Company for the three and six months ended June 30, 2024 and 2023 13 Consolidated Statements of Cash Flows of Northwest Natural Gas Company for the six months ended June 30, 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 40 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 65 Item 4.

Controls and Procedures

Controls and Procedures 66

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 66 Item 1A.

Risk Factors

Risk Factors 66 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 66 Item 6. Exhibits 67

Signatures

Signatures 69

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 June 30, Six Months Ended June 30, In thousands, except per share data 2024 2023 2024 2023 Operating revenues $ 211,714 $ 237,859 $ 645,184 $ 700,282 Operating expenses: Cost of gas 72,970 102,433 248,687 308,182 Operations and maintenance 64,950 66,819 138,564 138,636 Environmental remediation 2,329 2,140 8,075 7,515 General taxes 11,853 10,889 27,321 25,108 Revenue taxes 9,211 9,185 27,455 28,227 Depreciation 33,762 31,293 66,860 62,758 Other operating expenses 933 1,257 2,689 2,505 Total operating expenses 196,008 224,016 519,651 572,931 Income from operations 15,706 13,843 125,533 127,351 Other income (expense), net 6 6,618 ( 1,128 ) 8,224 Interest expense, net 19,311 18,974 39,842 37,270 (Loss) income before income taxes ( 3,599 ) 1,487 84,563 98,305 Income tax (benefit) expense ( 812 ) 243 23,527 25,390 Net (loss) income ( 2,787 ) 1,244 61,036 72,915 Other comprehensive income (loss): Change in employee benefit plan liability, net of taxes of $ 115 and $ 49 for the three and six months ended June 30, 2024, respectively 115 — ( 134 ) — Amortization of non-qualified employee benefit plan liability, net of taxes of $ 55 and $ 37 for the three months ended and $ 101 and $ 74 for the six months ended June 30, 2024 and 2023, respectively 152 103 279 205 Unrealized gain on interest rate swaps, net of taxes of $ 22 and $ 445 for the three months ended and $ 146 and $ 297 for the six months ended June 30, 2024 and 2023, respectively 58 1,236 404 825 Comprehensive (loss) income $ ( 2,462 ) $ 2,583 $ 61,585 $ 73,945 Average common shares outstanding: Basic 38,260 36,019 38,013 35,815 Diluted 38,260 36,062 38,059 35,845 (Loss) earnings per share of common stock: Basic $ ( 0.07 ) $ 0.03 $ 1.61 $ 2.04 Diluted ( 0.07 ) 0.03 1.60 2.03 See Notes to Unaudited Consolidated Financial St

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,

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