Latest news with #SiEnergy
Globe and Mail
15-07-2025
- Business
- Globe and Mail
NW Natural Holdings Schedules Second Quarter Earnings Release and Conference Call for Tuesday, August 5
Northwest Natural Holding Company (NYSE: NWN) (NW Natural Holdings) announced today it will issue its second quarter 2025 earnings release and conduct an analyst conference call and webcast to review results at 8 a.m. Pacific Time (11 a.m. Eastern Time) on Tuesday, Aug. 5, 2025. To hear the conference by webcast, log on to NW Natural Holdings' corporate website at To hear the conference call by phone, please dial 1-833-470-1428 within the United States and enter the conference access code 546522. To access the conference replay, please call 1-866-813-9403 within the United States and enter the conference identification access code 198960. About NW Natural Holdings Northwest Natural Holding Company, (NYSE: NWN) (NW Natural Holdings), is headquartered in Portland, Oregon and has been doing business for over 166 years. It owns Northwest Natural Gas Company (NW Natural), SiEnergy Operating (SiEnergy Gas Utility), NW Natural Water Company (NW Natural Water Utility), NW Natural Renewables Holdings (NW Natural Renewables), and other business interests. NW Natural Holdings provides critical energy and delivers essential water and wastewater services to nearly one million customers across seven states. We have a longstanding commitment to safety, environmental stewardship, and taking care of our employees and communities. NW Natural Holdings was recognized by Ethisphere® for four years running as one of the World's Most Ethical Companies®. NW Natural consistently leads the industry with high J.D. Power & Associates customer satisfaction scores. NWN Gas Utility is a local distribution company that currently provides natural gas service to approximately 2 million people in more than 140 communities through approximately 807,000 meters in Oregon and Southwest Washington with one of the most modern pipeline systems in the nation. NW Natural owns and operates 21.6 Bcf of underground gas storage capacity in Oregon. SiEnergy Gas Utility is one of the fastest growing natural gas distribution utilities in the nation serving approximately 82,000 customers in the greater metropolitan areas of Houston, Dallas, and Austin, Texas. NWN Water Utility provides water distribution and wastewater services to communities throughout the Pacific Northwest, Texas, Arizona, and California. Today NW Natural Water serves an estimated 194,000 people through approximately 78,000 meters. Learn more about our water business. NW Natural Renewables is committed to leading in the energy transition by providing renewable fuels to support the utility, commercial, industrial and transportation sectors. Learn more about our renewable business. Additional information is available at
Yahoo
23-06-2025
- Business
- Yahoo
Stifel Raised Price Target on Northwest Natural Gas After Strong Q1 and Reporting Restructure
Stifel raised its price target on Northwest Natural Gas (NYSE:NWN) from $45 to $49 and maintained a Buy rating on the stock in early June. It followed the first-quarter report that came in ahead of expectations once one-time items were accounted for. What made this note stand out wasn't just the earnings beat; it was the firm's reaction to NWN's new reporting structure. The company has started breaking out results for its Water Utility and SiEnergy segments separately. Stifel analyst viewed this as a meaningful improvement and noted it as a necessary step for investors to follow what it sees as the most promising parts of NWN's business. A technician inspecting a bundle of natural gas piping in a refinery. The valuation shift, now based on 2026 estimates instead of earlier years, also marks a longer-range perspective. In Stifel's view, the story's not just about stable earnings now, but about having a clearer window into growth that had previously been bundled and obscured. While we acknowledge the potential of NWN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Business Wire
03-06-2025
- Business
- Business Wire
NW Natural Holdings Closes Acquisition of Texas Natural Gas Utility
PORTLAND, Ore.--(BUSINESS WIRE)--SiEnergy Operating, LLC (SiEnergy), a wholly owned subsidiary of Northwest Natural Holding Company (NYSE: NWN) (NW Natural Holdings), has completed the acquisition of 100% of the capital stock of Hughes Gas Resources, Inc. (Hughes) from EPCOR USA Inc. for $60 million. Hughes serves approximately 6,900 connections in 12 communities northeast of Houston and is expected to have a rate base of approximately $46 million at the end of 2025. With a similar business model as SiEnergy, Hughes has grown organically by providing infrastructure to residential and commercial developments in high-growth areas. Hughes further expands SiEnergy's regulated gas utility business in Texas with a contracted customer backlog of approximately 11,000. The transaction is expected to be accretive in the first full year of operations. 'Hughes is a great fit for us and a logical step as we expand our Texas utilities,' said Justin B. Palfreyman, president and CEO of NW Natural Holdings. 'I'm excited the team has completed this acquisition, which enhances the scale of SiEnergy and positions the Company for further growth.' 'I'm pleased to close this acquisition and begin serving additional customers in Texas,' said June Dively, president of SiEnergy. 'Our gas utilities share a laser focus on providing safe, reliable service to benefit our customers and communities. I'm thrilled to welcome Hughes into our family and look forward to continued growth.' After closing, Hughes is expected to be rebranded to Pines Holdings, Inc. About NW Natural Holdings Northwest Natural Holding Company (NYSE: NWN) (NW Natural Holdings) is headquartered in Portland, Oregon and has been doing business for over 166 years. NW Natural Holdings through its subsidiaries provides critical energy and delivers essential water and wastewater services to nearly one million meters across seven states. We have a longstanding commitment to safety, environmental stewardship, and the energy transition, and taking care of our employees and communities. NW Natural Holdings was recognized by Ethisphere® for four years running as one of the World's Most Ethical Companies®. NW Natural Gas Company consistently leads the industry with high J.D. Power & Associates customer satisfaction scores. Forward-Looking Information This press release, and other presentations made by NW Natural Holdings from time to time, may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipates," "assumes," 'continues,' 'could,' "intends," "plans," "seeks," "believes," "estimates," "expects," 'forecasts,' "will" and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, objectives, assumptions, estimates, expectations, forecasts, outlook, timing, goals, visions, strategies, commitments, future events, financial positions, acquisition strategy, acquisitions and integration thereof, investments, expected rate base, strategic fit, performance, risks, risk profile, stability, the likelihood and success associated with any transaction, customer and business growth, growth opportunities, investment strategy, and financial effects and earnings impact of acquisitions, shareholder return and value, financial results, revenues and earnings, earnings guidance and estimated future growth rates, regulatory strategy, performance, timing, outcome, or effects of regulatory proceedings or mechanisms or approvals, accounting treatment of future events, economic and political conditions, effects of legislation or changes in laws or regulations, and other statements that are other than statements of historical facts. Forward-looking statements are based on current expectations and assumptions regarding its business, the economy, geopolitical factors, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. You are therefore cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future operational, economic or financial performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed by reference to the factors described in Part I, Item 1A "Risk Factors", and Part II, Item 7 and Item 7A "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosure about Market Risk" in the most recent Annual Report on Form 10-K and in Part I, Items 2 and 3 "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk", and Part II, Item 1A, "Risk Factors", in the quarterly reports filed thereafter. All forward-looking statements made in this report and all subsequent forward-looking statements, whether written or oral and whether made by or on behalf of NW Natural Holdings, are expressly qualified by these cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is made, and NW Natural Holdings undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. New factors emerge from time to time and it is not possible to predict all such factors, nor can it assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements.
Business Wire
06-05-2025
- Business
- Business Wire
NW Natural Holdings Reports Solid First Quarter 2025 Results
PORTLAND, Ore.--(BUSINESS WIRE)--Northwest Natural Holding Company (NYSE: NWN) (NW Natural Holdings) reported financial results and highlights, including: Reported earnings per share (EPS) of $2.18 and achieved adjusted EPS 1 of $2.28 for the first quarter of 2025, compared to EPS of $1.69 for the same period in 2024 Closed the acquisition of SiEnergy, a Texas high-growth gas utility, in early January 2025 Signed agreement to purchase Hughes Gas Resources, Inc. (Hughes), adding scale to the SiEnergy gas utility platform in Texas Added nearly 84,000 gas and water utility connections in the last 12 months for a combined growth rate of 9.6% as of March 31, 2025, mainly driven by the acquisition of SiEnergy Strong first quarter organic customer growth of 2.2% (annualized) on a consolidated basis with new meter sets on track for the year and growth driven by SiEnergy Oregon gas customers received bill credits totaling over $15 million in early 2025 related to strong gas supply management from our storage assets and pipeline capacity optimization. Over the last 20 years, we've credited NW Natural customers' bills with cumulative savings of over $280 million, helping keep rates affordable Invested $102 million in our gas and water systems in the first quarter of 2025 to support growth and greater reliability and resiliency For the fourth year in a row, honored as one of the World's Most Ethical Companies® by Ethisphere 2 Updated 2025 GAAP EPS guidance to $2.65 to $2.85 and reaffirmed adjusted 2025 EPS 1 guidance of $2.75 to $2.95 3 Reaffirmed long-term EPS growth rate target of 4% to 6% from our expected 2025 adjusted EPS 1,3 "We are off to a good start in 2025 with solid first quarter financial results," said Justin B. Palfreyman, President and CEO of NW Natural Holdings. "Our gas utilities operated safely and reliably over the winter heating season, serving customers well and highlighting the value of our infrastructure. Our financial results reflect the strength of our collective utilities, including the SiEnergy acquisition that was completed in early January 2025. The SiEnergy integration has gone well, and they have met their growth targets for the first quarter of 2025. I'm excited to announce an additional bolt-on acquisition that further enhances the scale and growth of our Texas utilities. We are well-positioned to deliver on our 2025 guidance and focused on creating long-term shareholder value." Net income increased $24.1 million to $87.9 million (or $2.18 per share) for the first quarter of 2025, compared to $63.8 million (or $1.69 per share) for the same period in 2024. Adjusted net income was $91.8 million 1 (or $2.28 per share 1) for the first quarter of 2025 excluding transaction costs associated with the SiEnergy acquisition. The increase reflected strong results across all business segments, including new rates for our gas utility in Oregon, contributions from SiEnergy, higher net income from our NWN Water utility related to new rates at our largest utility in Arizona and the Puttman acquisition, and a full quarter of revenues from NWN Renewables. These items were partially offset by higher depreciation and interest expense. SIGNED AGREEMENT TO PURCHASE GROWING GAS UTILITY IN TEXAS In May 2025, SiEnergy entered into an agreement to acquire Hughes from EPCOR USA Inc. for $60 million, subject to customary purchase price adjustments. We estimate rate base of approximately $46 million at year end 2025. Upon closing the transaction, Hughes will become a wholly owned subsidiary of SiEnergy. Hughes serves approximately 6,900 residential and commercial customers in the greater Houston metropolitan area. With a similar business model as SiEnergy, Hughes has grown organically by providing infrastructure to residential and commercial developments in high-growth areas. This acquisition further expands our regulated gas utility business in Texas with a contracted customer backlog of approximately 11,000. The transaction is expected to close in the second quarter of 2025 and be accretive in the first full year of operations. Hughes is regulated by the Railroad Commission of Texas. No approvals are needed to close this transaction. 2025 GUIDANCE AND LONG-TERM TARGETS NW Natural Holdings updated 2025 GAAP EPS guidance to $2.65 to $2.85 (from the previous range of $2.66 to $2.86) as a result of the expected transaction costs from the Hughes acquisition. NW Natural Holdings reaffirmed adjusted EPS guidance of $2.75 to $2.95 on a non-GAAP 1 basis excluding the $5.8 million pre-tax transaction costs associated with the acquisitions of SiEnergy and Hughes (approximately $4.3 million or $0.10 per share after-tax 2). This guidance assumes continued customer growth, average weather conditions, and no significant changes in prevailing regulatory policies, mechanisms, or assumed outcomes, or significant local, state or federal laws, legislation or regulations. NW Natural Holdings reaffirmed its long-term EPS growth rate target of 4% to 6% compounded annually from the expected 2025 adjusted EPS 3. We expect NW Natural Holdings capital expenditures for 2025 to be in the range of $450 - $500 million. The timing and amount of the capital expenditures and projects for 2025 or additional investments in our infrastructure during or after 2025 could change based on customer growth, significant changes in prevailing regulatory policies or outcomes, or significant local, state or federal laws, legislation or regulations, or cost estimates. Required funds for the investments are expected to be internally generated or financed with long-term debt or equity, as appropriate. DIVIDEND DECLARED The board of directors of NW Natural Holdings declared a quarterly dividend of $0.49 per share on the Company's common stock. The dividend is payable on May 15, 2025 to shareholders of record on April 30, 2025. The Company's current indicated annual dividend rate is $1.96 per share. Future dividends are subject to board of director discretion and approval. FIRST QUARTER RESULTS NW Natural Holdings' first quarter results are summarized by business segment in the table below: 1 Segment EPS is a non-GAAP financial measure, which takes segment net income calculated in accordance with GAAP and divides it by the diluted shares outstanding of NW Natural Holdings. See "Non-GAAP Financial Measures" for additional information. The reconciliation of segment EPS to Consolidated NW Natural Holdings EPS is shown in the table above. 2 See "Non-GAAP Financial Measures" and "Q1 2025 Reconciliation to GAAP" for additional information. Adjusted 2025 other and consolidated net income are non-GAAP financial measures and exclude the effects of SiEnergy transaction costs of $3.9 million after-tax. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures calculated in accordance with U.S. GAAP. Non-GAAP financial measures are used to analyze our financial performance because we believe they provide useful information to our investors and creditors in evaluating our financial condition and results of operations. Expand NWN Gas Utility NWN Gas Utility is a regulated utility principally engaged in the delivery of natural gas to customers in Oregon and southwest Washington. The segment also includes the portion of the Mist underground storage facility used to serve gas utility customers, the North Mist gas storage expansion, and renewable natural gas development and procurement for the utility. 1 See "Non-GAAP Financial Measures" for additional information and the table under "First Quarter Results" for a reconciliation to Consolidated NW Natural Holdings EPS. Segment EPS is a non-GAAP financial measure which takes NWN Gas Utility segment net income calculated in accordance with GAAP and divides it by the diluted shares outstanding of NW Natural Holdings. Expand NWN Gas Utility net income increased $21.5 million (or $0.42 per share) primarily reflecting new rates in Oregon. Margin increased $38.7 million primarily due to a $42.6 million increase from the Oregon rate case partially offset by lower deferral amortizations of $5.0 million. Operations and maintenance expense increased $2.2 million primarily due to higher payroll and benefit expense. Depreciation and general taxes collectively increased by $4.8 million primarily due to continued investment in our system. Other expense reflected a $1.4 million increase primarily from higher pension expense. Income taxes increased $9.3 million dollars due to higher pre-tax results. SiEnergy Gas Utility SiEnergy Gas Utility (or SiEnergy) is a regulated natural gas distribution utility serving customers in the greater metropolitan areas of Houston, Dallas, and Austin, Texas. Three Months Ended March 31, In thousands, except EPS 2025 2024 Change Margin $ 13,584 $ — $ 13,584 Net income 5,505 — 5,505 EPS 1 $ 0.14 $ — $ 0.14 Expand 1 See "Non-GAAP Financial Measures" for additional information and the table under "First Quarter Results" for a reconciliation to Consolidated NW Natural Holdings EPS. Segment EPS is a non-GAAP financial measure which takes SiEnergy Gas Utility segment net income calculated in accordance with GAAP and divides it by the diluted shares outstanding of NW Natural Holdings. Expand SiEnergy was acquired on January 7, 2025 and subsequently provided net income of $5.5 million (or $0.14 per share) in the first quarter of 2025. Margin results met management's expectations and reflected strong customer growth. NWN Water Utility NWN Water Utility (or NWN Water) provides water distribution and wastewater services to communities throughout the Pacific Northwest, Texas, Arizona, and California. Three Months Ended March 31, In thousands, except EPS 2025 2024 Change Income from operations $ 3,043 $ 454 $ 2,589 Net income 1,688 (746 ) 2,434 EPS 1 $ 0.04 $ (0.02 ) $ 0.06 Expand 1 See "Non-GAAP Financial Measures" for additional information and the table under "First Quarter Results" for a reconciliation to Consolidated NW Natural Holdings EPS. Segment EPS is a non-GAAP financial measure which takes NWN Water Utility segment net income calculated in accordance with GAAP and divides it by the diluted shares outstanding of NW Natural Holdings. Expand NWN Water net income increased $2.4 million (or $0.06 per share) mainly reflecting a $3.2 million increase in operating revenues primarily due to new rates at its largest utility in Arizona and incremental revenues from the Puttman/Infrastructure Capital Holdings water utilities after the acquisition in September 2024. Operating expenses increased $0.6 million from higher operations and maintenance expenses primarily related to reflecting the Puttman/Infrastructure Capital Holdings activities in results after the acquisition in 2024. Interest expense decreased $0.7 million from lower long-term debt balances as $50.0 million of NWN Water debt matured in March 2024 and was not refinanced at NWN Water. Other Other business activities are reported through "Other" results and primarily include Interstate Storage Services and third-party asset management services for the Mist facility in Oregon; NWN Renewables, which is a renewable fuels business; and corporate financing activities, consolidation entries, and other activities. 1 See "Non-GAAP Financial Measures" for additional information and the table under "First Quarter Results" for a reconciliation to Consolidated NW Natural Holdings EPS. Segment EPS is a non-GAAP financial measure which takes Other net income calculated in accordance with GAAP and divides it by the diluted shares outstanding of NW Natural Holdings. 2 See "Non-GAAP Financial Measures" and "Q1 2025 Reconciliation to GAAP" for additional information. Adjusted 2025 other and consolidated net income are non-GAAP financial measures and exclude the effects of SiEnergy transaction costs of $3.9 million after-tax. Expand Net income from the Company's other business activities decreased $5.3 million (or $0.13 per share) reflecting $3.9 million of transaction expenses (after-tax) related to acquiring SiEnergy. Adjusted net loss, which excludes SiEnergy transaction expenses, increased $1.4 million (or $0.03 per share) related to higher interest expense at the Holding Company, partially offset by higher revenues from the NWN Renewables business as it completed its first full quarter of operations. CONFERENCE CALL AND WEBCAST As previously announced, NW Natural Holdings will host a conference call and webcast today to discuss its first quarter 2025 financial and operating results. The call will also be webcast in a listen-only format for the media and general public and can be accessed at A replay of the conference call will be available on our website and by dialing 1-866-813-9403 (U.S.) and 1-929-458-6194 (international). The replay access code is 591383. ABOUT NW NATURAL HOLDINGS Northwest Natural Holding Company (NYSE: NWN) (NW Natural Holdings) is headquartered in Portland, Oregon and has been doing business for over 166 years. It owns Northwest Natural Gas Company (NW Natural), SiEnergy Operating (SiEnergy Gas Utility), NW Natural Water Company (NWN Water Utility), NW Natural Renewables Holdings (NWN Renewables), and other business interests. NW Natural Holdings through its subsidiaries provides critical energy and delivers essential water and wastewater services to nearly one million meters across seven states. We have a longstanding commitment to safety, environmental stewardship, and the energy transition, and taking care of our employees and communities. NW Natural Holdings was recognized by Ethisphere® for four years running as one of the World's Most Ethical Companies®. NW Natural consistently leads the industry with high J.D. Power & Associates customer satisfaction scores. NWN Gas Utility is a local distribution company that currently provides natural gas service to approximately 2 million people in more than 140 communities through approximately 807,000 meters in Oregon and Southwest Washington with one of the most modern pipeline systems in the nation. NW Natural owns and operates 21.6 Bcf of underground gas storage capacity in Oregon. SiEnergy Gas Utility is one of the fastest growing natural gas distribution utilities in the nation, serving over 73,000 meters in the greater metropolitan areas of Houston, Dallas, and Austin, Texas. NWN Water Utility provides water distribution and wastewater services to communities throughout the Pacific Northwest, Texas, Arizona, and California. Today NW Natural Water serves an estimated 194,000 people through approximately 78,000 meters and provides operation and maintenance services to an additional 40,000 connections. Learn more about our water business at NWN Renewables is committed to leading in the energy transition by providing renewable fuels. Learn more at Additional information is available at 'World's Most Ethical Companies' and 'Ethisphere' names and marks are registered trademarks of Ethisphere LLC FORWARD-LOOKING STATEMENTS This press release, and other presentations made by NW Holdings from time to time, may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipates," "assumes," 'continues,' 'could,' "intends," "plans," "seeks," "believes," "estimates," "expects," "forecasts," "will" and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, objectives, assumptions, estimates, expectations, forecasts, outlooks, timing, goals, strategies, commitments, future events, financial positions, financial performance, investments, valuations, timing and amount of capital expenditures, targeted capital structure, risks, risk profile, stability, acquisitions and timing, approval, completion and integration thereof, the likelihood and success associated with any transaction, strategic fit, utility system, technology and infrastructure investments, system modernization, reliability and resiliency, global, national and local economies, economic and GDP growth, customer and business growth, continued expansion of service territories, rate base growth, customer backlog, growth opportunities, customer satisfaction ratings, weather, performance and service during weather events, customer rates or rate recovery and the timing and magnitude of potential rate changes and the potential outcome of rate cases, environmental remediation cost recoveries, environmental initiatives, decarbonization and the role of natural gas and the gas delivery system, including decarbonization goals and timelines, energy efficiency measures, use of renewable sources, renewable natural gas purchases, projects, investments and other renewable initiatives, and timing, magnitude and completion thereof, unregulated renewable natural gas strategy and initiatives, hydrogen projects or investments and timing, magnitude, approvals and completion thereof, procurement of renewable natural gas or hydrogen for customers, technology and policy innovations, strategic goals and visions, water, wastewater and water services acquisitions, personnel additions, partnerships, investment strategy, regulatory strategy, and financial effects of water, wastewater and water services acquisitions, expected growth and safety benefits of facility upgrade investments, operating plans of third parties, financial targets, financial results, including estimated income, availability and sources of liquidity, capital markets, financing transactions, expenses, positions, revenues, returns, cost of capital, timing, and earnings, earnings guidance and estimated future growth rates, credit ratings, debt and equity issuances and timing, future dividends, commodity costs and sourcing, asset management activities, regulatory environment, performance, timing, outcome, or effects of regulatory proceedings or mechanisms or approvals, rate case execution, regulatory prudence reviews, anticipated regulatory actions or filings, accounting treatment of future events, economic and political conditions, effects of legislation or changes in laws or regulations, impact of the new U.S. presidential administration and Congress, effects, extent, the imposition or announcement of tariffs or trade restrictions, inflation, geopolitical uncertainty and other statements that are other than statements of historical facts. Forward-looking statements are based on current expectations and assumptions regarding its business, the economy, geopolitical factors, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. You are therefore cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future operational, economic or financial performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed by reference to the factors described in Part I, Item 1A "Risk Factors", and Part II, Item 7 and Item 7A "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosure about Market Risk" in the most recent Annual Report on Form 10-K and in Part I, Items 2 and 3 "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk", and Part II, Item 1A, "Risk Factors", in the quarterly reports filed thereafter, which, among others, outline legal, regulatory and legislative risks, financial, macroeconomic and geopolitical risks, growth and strategic risks, operational risks, business continuity and technology risks, environmental risks and risks related to our water and renewables businesses. All forward-looking statements made in this report and all subsequent forward-looking statements, whether written or oral and whether made by or on behalf of NW Holdings or NW Natural, are expressly qualified by these cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is made, and NW Holdings and NW Natural undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. New factors emerge from time to time and it is not possible to predict all such factors, nor can it assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. NON-GAAP FINANCIAL MEASURES Management uses "adjusted net income", "adjusted earnings per share," "adjusted segment net loss," "segment earnings per share' and "adjusted segment earnings per share," each of which are non-GAAP financial measures, when evaluating NW Natural Holdings' overall performance. Management believes that these non-GAAP measures provide meaningful information to investors about NW Natural Holdings' performance because they eliminate the impacts of significant discrete items that are unusual or non-recurring and can affect the comparison of period-over-period results. In addition to presenting the results of operations and earnings amounts in total, certain financial measures are expressed in cents per share, which are non-GAAP financial measures. All references to EPS are on the basis of diluted shares. Such non-GAAP financial measures are used to analyze our financial performance because we believe they provide useful information to our investors and creditors in evaluating our financial condition and results of operations. Our non-GAAP financial measures should not be considered a substitute for, or superior to, measures calculated in accordance with U.S. GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than how such measures are calculated in this report, limiting the usefulness of those measures for comparative purposes. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the tables below. NORTHWEST NATURAL HOLDINGS Consolidated Balance Sheets (Unaudited) March 31, In thousands 2025 2024 Assets: Current assets: Cash and cash equivalents $ 100,050 $ 72,375 Accounts receivable 154,746 128,433 Accrued unbilled revenue 59,936 57,905 Allowance for uncollectible accounts (4,427 ) (4,181 ) Regulatory assets 88,623 127,666 Derivative instruments 4,363 5,746 Inventories 90,334 99,874 Other current assets 46,275 49,896 Total current assets 539,900 537,714 Non-current assets: Property, plant, and equipment 5,268,063 4,660,104 Less: Accumulated depreciation 1,266,222 1,218,580 Total property, plant, and equipment, net 4,001,841 3,441,524 Regulatory assets 371,258 309,173 Derivative instruments 864 3,099 Other investments 82,663 84,081 Operating lease right of use asset, net 70,455 70,547 Assets under sales-type leases 124,623 128,840 Goodwill 354,534 162,966 Other non-current assets 160,754 111,122 Total non-current assets 5,166,992 4,311,352 Total assets $ 5,706,892 $ 4,849,066 Liabilities and equity: Current liabilities: Short-term debt $ 81,100 $ 94,700 Current maturities of long-term debt 36,838 869 Accounts payable 132,814 107,888 Taxes accrued 24,115 27,031 Interest accrued 16,297 16,360 Regulatory liabilities 111,050 77,659 Derivative instruments 26,122 52,677 Operating lease liabilities 2,662 2,053 Other current liabilities 82,958 89,107 Total current liabilities 513,956 468,344 Long-term debt 2,193,071 1,574,735 Deferred credits and other non-current liabilities: Deferred tax liabilities 424,338 394,068 Regulatory liabilities 730,084 700,703 Pension and other postretirement benefit liabilities 127,853 157,812 Derivative instruments 8,224 12,743 Operating lease liabilities 77,226 77,051 Other non-current liabilities 175,922 120,224 Total deferred credits and other non-current liabilities 1,543,647 1,462,601 Equity: Common stock 992,278 905,153 Retained earnings 470,795 445,058 Accumulated other comprehensive loss (6,855 ) (6,825 ) Total equity 1,456,218 1,343,386 Total liabilities and equity $ 5,706,892 $ 4,849,066 Expand NORTHWEST NATURAL HOLDINGS Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, In thousands 2025 2024 Operating activities: Net income $ 87,916 $ 63,823 Adjustments to reconcile net income to cash provided by operations: Depreciation 40,500 33,098 Amortization 5,583 4,759 Deferred income taxes 23,997 8,041 Qualified defined benefit pension plan expense 2,719 1,082 Contributions to qualified defined benefit pension plans (2,610 ) — Deferred environmental expenditures, net (6,991 ) (6,264 ) Environmental remediation expense 6,253 5,746 Asset optimization revenue sharing bill credits (15,549 ) (20,608 ) Other 3,016 4,692 Changes in assets and liabilities: Receivables, net 15,509 17,839 Inventories 18,279 13,070 Income and other taxes 18,084 21,796 Accounts payable 4,187 (30,930 ) Deferred gas costs (16,959 ) (8,808 ) Asset optimization revenue sharing 4,357 (108 ) Decoupling mechanism (1,422 ) 6,427 Cloud-based software (2,195 ) (6,485 ) Regulatory accounts 2,155 13,335 Other, net (7,219 ) 4,534 Cash provided by operating activities 179,610 125,039 Investing activities: Capital expenditures (102,184 ) (82,217 ) Acquisitions, net of cash acquired (270,492 ) — Purchase of equity method investment (1,000 ) (1,000 ) Other (1,299 ) 729 Cash used in investing activities (374,975 ) (82,488 ) Financing activities: Proceeds from common stock issued, net 961 12,218 Long-term debt issued 375,000 150,000 Long-term debt retired (1,511 ) (150,000 ) Changes in other short-term debt, net (94,010 ) 4,920 Cash dividend payments on common stock (19,104 ) (17,746 ) Payment of financing fees (4,307 ) (748 ) Shares withheld for tax purposes (1,536 ) (1,314 ) Other (1,125 ) (247 ) Cash provided (used) by financing activities 254,368 (2,917 ) Increase in cash, cash equivalents and restricted cash 59,003 39,634 Cash, cash equivalents and restricted cash, beginning of period 47,982 49,624 Cash, cash equivalents and restricted cash, end of period $ 106,985 $ 89,258 Supplemental disclosure of cash flow information: Interest paid, net of capitalization $ 30,109 $ 18,044 Income taxes paid, net of refunds 750 1,000 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 100,050 $ 72,375 Restricted cash included in other current and non-current assets 6,935 16,883 Cash, cash equivalents and restricted cash $ 106,985 $ 89,258 Expand NORTHWEST NATURAL HOLDINGS 2025 Guidance Reconciliation to GAAP (Unaudited) 2025 EPS Guidance Reconciliation Table GAAP EPS guidance $2.65 to $2.85 Transaction costs 1 0.10 Adjusted EPS guidance 2 $2.75 to $2.95 Expand 1 Effect on EPS assumes transaction related costs including the effects of SiEnergy transaction costs of $3.9 million after tax recorded in first quarter 2025 and the expected $0.4 million after tax from the acquisition of Hughes anticipated in the second quarter of 2025, average diluted shares of 41.1 million and an income tax rate of 26.5%. 2 See "Non-GAAP Financial Measures" for a definition and further information on adjusted EPS. Expand 1 SiEnergy transaction expenses were recognized in the first quarter of 2025. Tax effect of adjustment was calculated using a combined federal and statutory rate of 26.5%. Expand
Cision Canada
05-05-2025
- Business
- Cision Canada
SiEnergy to Acquire EPCOR's Texas Natural Gas Utility
Acquisition expands SiEnergy's footprint in Houston area and supports EPCOR's U.S. growth strategy focused on water PORTLAND, Ore. and GLENDALE, Ariz, May 5, 2025 /CNW/ - SiEnergy Operating (SiEnergy), a wholly owned subsidiary of Northwest Natural Holding Company (NYSE: NWN) (NW Natural Holdings), and EPCOR USA Inc. (EPCOR USA) today announced an agreement for SiEnergy to acquire 100% of the capital stock of Hughes Gas Resources, Inc. (EPCOR Texas Gas) for $60 million. The transaction is expected to close in the second quarter of 2025. EPCOR Texas Gas's assets include approximately 6,900 metered connections and 353 miles of pipeline that serve 12 communities northeast of Houston. EPCOR Texas Gas, which has owned and operated the assets since 2017, is expected to have a rate base of approximately $46 million at the end of 2025. "With a similar business model as SiEnergy, Hughes has grown organically by providing infrastructure to residential and commercial developments in high-growth areas surrounding Houston," said NW Natural Holdings CEO Justin Palfreyman. "This is a great fit for us as we continue to expand and diversify our overall utility portfolio in Texas." "Today's announcement reflects a strategic decision by EPCOR USA to focus growth plans in Texas on water opportunities," said John Elford, President and CEO of EPCOR Utilities Inc. "Our natural gas customers and operations teams will also benefit from SiEnergy's scale and experience as a natural gas utility operator, and we look forward to working together to facilitate a seamless transition of service." "SiEnergy and EPCOR share a common focus on providing safe, reliable service to customers and communities," said SiEnergy president June Dively. "We are excited for this opportunity to expand SiEnergy's presence in metro Houston." "SiEnergy is a proven, high-quality natural gas utility founded in the Houston area. Our customers in Texas will benefit from SiEnergy's substantial footprint in natural gas utilities while EPCOR continues to focus on growing its water business in the United States," said Joe Gysel, Senior Vice President of North American Commercial Services for EPCOR. About NW Natural Holdings Northwest Natural Holding Company, (NYSE: NWN) (NW Natural Holdings), is headquartered in Portland, Oregon and has been doing business for over 166 years. It owns Northwest Natural Gas Company (NW Natural), SiEnergy Operating (SiEnergy), NW Natural Water Company (NW Natural Water), NW Natural Renewables Holdings (NW Natural Renewables), and other business interests. NW Natural Holdings through its subsidiaries provides critical energy and delivers essential water and wastewater services to nearly one million meters across seven states. We have a longstanding commitment to safety, environmental stewardship and the energy transition, and taking care of our employees and communities. NW Natural Holdings was recognized by Ethisphere® for four years running as one of the World's Most Ethical Companies®. NW Natural consistently leads the industry with high J.D. Power & Associates customer satisfaction scores. "World's Most Ethical Companies" and "Ethisphere" names and marks are registered trademarks of Ethisphere LLC About EPCOR USA Inc. EPCOR USA Inc. and its U.S. affiliates are wholly owned subsidiaries of North American utility leader EPCOR Utilities Inc. and collectively are among the largest private utilities in the Southwest, providing water, wastewater, wholesale water and natural gas service to approximately 1,005,000 people across 46 communities and 18 counties in Arizona, New Mexico and Texas. EPCOR USA delivers 165.4 billion gallons of water annually and, since entering the U.S. market in 2012, has returned more than 26 billion gallons of clean water to the natural water cycle. About EPCOR Utilities Inc. EPCOR, through its wholly owned subsidiaries, builds, owns and operates electrical, natural gas and water transmission and distribution networks, water and wastewater treatment facilities, sanitary and stormwater systems, and infrastructure in Canada and the United States. EPCOR also provides electricity, natural gas and water products and services to residential and commercial customers. EPCOR, headquartered in Edmonton, is committed to conducting its business and operations safely and responsibly. Environmental stewardship, public health and community well-being are at the heart of EPCOR's mission to provide clean water and safe, reliable energy. EPCOR is an Alberta Top 85 employer, is ranked among Corporate Knights' 2024 Best 50 Corporate Citizens in Canada, and is designated a Utility of the Future Today by the Water Environment Federation. Forward Looking Information Certain information in this media release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated financial performance, events or strategies. When used in this context, words such as "will", "anticipate", "believe", "plan", "intend", "target", and "expect" or similar words suggest future outcomes. The purpose of forward-looking information is to provide investors with management's assessment of future plans and possible outcomes and may not be appropriate for other purposes. Forward looking information includes: (i) expected rate base of EPCOR Texas Gas, and (ii) EPCOR's future growth plans and strategies. NW Natural Holdings Investor Contact: Nikki Sparley Phone: 503-721-2530 Email: [email protected] NW Natural Holdings Media Contact: David Roy Phone: 503-610-7157 Email: [email protected] EPCOR Media Contact: Rebecca Stenholm Phone: 623-445-2424 Email: [email protected] SOURCE Epcor Utilities Inc.
