Northwest Natural Holding Co Files Q3 2024 10-Q

TL;DR

NWN Q3 2024 10-Q filed. Financials and ops details out.

AI Summary

Northwest Natural Holding Company filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the company, which is primarily involved in natural gas distribution. Specific financial figures and operational metrics for the third quarter and year-to-date are presented.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational status of Northwest Natural Holding Co, crucial for understanding its performance in the natural gas sector.

Risk Assessment

Risk Level: medium — As a utility company, Northwest Natural Holding Co is subject to regulatory changes, weather dependency, and infrastructure risks, which can impact its financial stability.

Key Numbers

• 20240930 — Reporting Period End Date (Indicates the end of the fiscal quarter for which the report is filed.)
• 20241112 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• Northwest Natural Holding Co (company) — Filer
• NORTHWEST NATURAL GAS CO (company) — Filer
• 250 SW TAYLOR STREET (location) — Business and Mail Address
• PORTLAND (location) — City
• OR (location) — State
• 97204 (location) — ZIP Code

FAQ

Filing Documents

• nwn-20240930.htm (10-Q) — 2907KB
• ex10a2024q3.htm (EX-10.A) — 13KB
• ex10b2024q3.htm (EX-10.B) — 54KB
• ex10c2024q3.htm (EX-10.C) — 53KB
• ex3112024q3.htm (EX-31.1) — 8KB
• ex3122024q3.htm (EX-31.2) — 8KB
• ex3132024q3.htm (EX-31.3) — 8KB
• ex3142024q3.htm (EX-31.4) — 8KB
• ex3212024q3.htm (EX-32.1) — 6KB
• ex3222024q3.htm (EX-32.2) — 6KB
• image_0.jpg (GRAPHIC) — 17KB
• nwn-20240930_g1.jpg (GRAPHIC) — 56KB
• nwn-20240930_g2.jpg (GRAPHIC) — 38KB
• 0001733998-24-000125.txt ( ) — 14186KB
• nwn-20240930.xsd (EX-101.SCH) — 72KB
• nwn-20240930_cal.xml (EX-101.CAL) — 107KB
• nwn-20240930_def.xml (EX-101.DEF) — 573KB
• nwn-20240930_lab.xml (EX-101.LAB) — 879KB
• nwn-20240930_pre.xml (EX-101.PRE) — 703KB
• nwn-20240930_htm.xml (XML) — 2690KB

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 nine months ended September 30, 2024 and 2023 5 Consolidated Balance Sheets of Northwest Natural Holding Company at September 30, 2024 and 2023 and December 31, 2023 6 Consolidated Statements of Shareholders' Equity of Northwest Natural Holding Company for the three and nine months ended September 30, 2024 and 2023 8 Consolidated Statements of Cash Flows of Northwest Natural Holding Company for the nine months ended September 30, 2024 and 2023 9 Consolidated Statements of Comprehensive Income of Northwest Natural Gas Company for the three and nine months ended September 30, 2024 and 2023 10 Consolidated Balance Sheets of Northwest Natural Gas Company at September 30, 2024 and 2023 and December 31, 2023 11 Consolidated Statements of Shareholder's Equity of Northwest Natural Gas Company for the three and nine months ended September 30, 2024 and 2023 13 Consolidated Statements of Cash Flows of Northwest Natural Gas Company for the nine months ended September 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 43 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 69 Item 4.

Controls and Procedures

Controls and Procedures 69

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 69 Item 1A.

Risk Factors

Risk Factors 69 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 69 Item 5. Other Information 70 Item 6. Exhibits 70

Signatures

Signatures 72

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, 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 and costs; e

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS NORTHWEST NATURAL HOLDING COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, In thousands, except per share data 2024 2023 2024 2023 Operating revenues $ 136,934 $ 141,479 $ 782,118 $ 841,761 Operating expenses: Cost of gas 38,902 49,180 287,589 357,362 Operations and maintenance 63,940 61,524 202,504 200,160 Environmental remediation 1,151 1,032 9,226 8,547 General taxes 10,886 10,577 38,207 35,685 Revenue taxes 5,275 5,523 32,730 33,750 Depreciation 34,552 30,061 101,412 92,819 Other operating expenses 1,560 1,159 4,249 3,664 Total operating expenses 156,266 159,056 675,917 731,987 (Loss) income from operations ( 19,332 ) ( 17,577 ) 106,201 109,774 Other income (expense), net 930 5,004 ( 198 ) 13,228 Interest expense, net 19,060 19,406 58,902 56,676 (Loss) income before income taxes ( 37,462 ) ( 31,979 ) 47,101 66,326 Income tax (benefit) expense ( 10,295 ) ( 8,292 ) 13,232 17,098 Net (loss) income ( 27,167 ) ( 23,687 ) 33,869 49,228 Other comprehensive income (loss): Change in employee benefit plan liability, net of taxes of $ 58 and $ 9 for the three and nine months ended September 30, 2024, respectively ( 58 ) — ( 192 ) — Amortization of non-qualified employee benefit plan liability, net of taxes of $ 54 and $ 37 for the three months ended and $ 155 and $ 111 for the nine months ended September 30, 2024 and 2023, respectively 153 102 432 307 Unrealized (loss) gain on interest rate swaps, net of taxes of $ 279 and $ 62 for the three months ended and $ 133 and $ 359 for the nine months ended September 30, 2024 and 2023, respectively ( 775 ) 174 ( 371 ) 999 Comprehensive (loss) income $ ( 27,847 ) $ ( 23,411 ) $ 33,738 $ 50,534 Average common shares outstanding: Basic 38,394 36,214 38,356 35,950 Diluted 38,394 36,214 38,412 35,980 (Loss) earnings per share of common stock: Basic $ ( 0.71 ) $ ( 0.65 ) $ 0

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 int