Commission file number | 1-38681 | Commission file number | 1-15973 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NORTHWEST NATURAL HOLDING COMPANY | NORTHWEST NATURAL GAS COMPANY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oregon | 82-4710680 | Oregon | 93-0256722 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
250 S.W. Taylor Street | Portland | Oregon | 97204 | 250 S.W. Taylor Street | Portland | Oregon | 97204 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Address of principal executive offices) | (Zip Code) | (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Registrant’s telephone number, including area code: (503) 226-4211 | Registrant’s telephone number, including area code: (503) 226-4211 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Registrant | Title of each class | Trading Symbol | Name of each exchange on which registered | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Northwest Natural Holding Company | Common Stock | NWN | New York Stock Exchange | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Northwest Natural Gas Company | None | None | None | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities registered pursuant to Section 12(g) of the Act: None. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NORTHWEST NATURAL HOLDING COMPANY | Yes | ☒ | No | ☐ | NORTHWEST NATURAL GAS COMPANY | Yes | ☐ | No | ☒ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NORTHWEST NATURAL HOLDING COMPANY | Yes | ☐ | No | ☒ | NORTHWEST NATURAL GAS COMPANY | Yes | ☐ | No | ☒ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NORTHWEST NATURAL HOLDING COMPANY | Yes | ☒ | No | ☐ | NORTHWEST NATURAL GAS COMPANY | Yes | ☒ | No | ☐ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NORTHWEST NATURAL HOLDING COMPANY | Yes | ☒ | No | ☐ | NORTHWEST NATURAL GAS COMPANY | Yes | ☒ | No | ☐ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NORTHWEST NATURAL HOLDING COMPANY | NORTHWEST NATURAL GAS COMPANY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Large Accelerated Filer | ☒ | Large Accelerated Filer | ☐ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accelerated Filer | ☐ | Accelerated Filer | ☐ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-accelerated Filer | ☐ | Non-accelerated Filer | ☒ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Smaller Reporting Company | ☐ | Smaller Reporting Company | ☐ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Emerging Growth Company | ☐ | Emerging Growth Company | ☐ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NORTHWEST NATURAL HOLDING COMPANY | Yes | ☒ | No | ☐ | NORTHWEST NATURAL GAS COMPANY | Yes | ☐ | No | ☒ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NORTHWEST NATURAL HOLDING COMPANY | Yes | ☐ | No | ☒ | NORTHWEST NATURAL GAS COMPANY | Yes | ☐ | No | ☒ |
Item | Page | |||||||||||||||||||||||
PART I | ||||||||||||||||||||||||
Item 1. | ||||||||||||||||||||||||
Item 1A. | ||||||||||||||||||||||||
Item 1B. | ||||||||||||||||||||||||
Item 2. | ||||||||||||||||||||||||
Item 3. | ||||||||||||||||||||||||
Item 4. | ||||||||||||||||||||||||
PART II | ||||||||||||||||||||||||
Item 5. | ||||||||||||||||||||||||
Item 6. | ||||||||||||||||||||||||
Item 7. | ||||||||||||||||||||||||
Item 7A. | ||||||||||||||||||||||||
Item 8. | ||||||||||||||||||||||||
Item 9. | ||||||||||||||||||||||||
Item 9A. | ||||||||||||||||||||||||
Item 9B. | ||||||||||||||||||||||||
Item 9C. | ||||||||||||||||||||||||
PART III | ||||||||||||||||||||||||
Item 10. | ||||||||||||||||||||||||
Item 11. | ||||||||||||||||||||||||
Item 12. | ||||||||||||||||||||||||
Item 13. | ||||||||||||||||||||||||
Item 14. | ||||||||||||||||||||||||
PART IV | ||||||||||||||||||||||||
Item 15. | ||||||||||||||||||||||||
Item 16. | ||||||||||||||||||||||||
AFUDC | Allowance for Funds Used During Construction | |||||||
AOCI / AOCL | Accumulated Other Comprehensive Income (Loss) | |||||||
Accounting Standards Codification | ||||||||
ASU | Accounting Standards Update as issued by the FASB | |||||||
Average Weather | The 25-year average of heating degree days based on temperatures established in our last Oregon general rate case | |||||||
Bcf | Billion cubic feet, a volumetric measure of natural gas, where one Bcf is roughly equal to 10 million therms | |||||||
CNG | Compressed Natural Gas | |||||||
CODM | Chief Operating Decision | |||||||
Core | Residential, commercial, and industrial customers receiving firm service from the | |||||||
Cost of Gas | The delivered cost of natural gas sold to customers, including the cost of gas purchased or withdrawn/produced from storage inventory or reserves, gains and losses from gas commodity hedges, pipeline demand costs, seasonal demand cost balancing adjustments, renewable thermal certificate costs and regulatory gas cost deferrals | |||||||
Demand Cost | A component in | |||||||
EE/CA | Engineering Evaluation / Cost Analysis | |||||||
Encana | Encana Oil & Gas (USA) Inc. | |||||||
Energy Corp | Northwest Energy Corporation, a wholly-owned subsidiary of | |||||||
EPA | Environmental Protection Agency | |||||||
EPS | Earnings per share | |||||||
Environmental Cost Recovery Mechanism, a billing rate mechanism for recovering prudently incurred environmental site remediation costs allocable to Washington customers through NGD customer billings | ||||||||
FASB | Financial Accounting Standards Board | |||||||
FERC | Federal Energy Regulatory Commission; the entity regulating interstate storage services offered by the Mist gas storage facility | |||||||
Firm Service | Natural gas service offered to customers under contracts or rate schedules that will not be disrupted to meet the needs of other customers | |||||||
FMBs | First Mortgage Bonds | |||||||
General Rate Case | A periodic filing with state or federal regulators to establish billing rates for utility customers | |||||||
GHG | Greenhouse gases | |||||||
Gas Transmission Northwest, LLC which owns a transmission pipeline serving California and the Pacific Northwest | ||||||||
Heating Degree Days | Units of measure reflecting temperature-sensitive consumption of natural gas, calculated by subtracting the average of a day’s high and low temperatures from 59 degrees Fahrenheit | |||||||
Interruptible Service | Natural gas service offered to customers (usually large commercial or industrial users) under contracts or rate schedules that allow for interruptions when necessary to meet the needs of firm service customers | |||||||
Interstate Storage Services | The portion of the Mist gas storage facility not used to serve NGD customers, instead serving utilities, gas marketers, electric generators, and large industrial users | |||||||
IPUC | Public Utility Commission of Idaho; the entity that regulates NW Holdings' | |||||||
IRP | Integrated Resource Plan |
KB | Kelso-Beaver Pipeline, of which 10% is owned by KB Pipeline Company, a subsidiary of NNG Financial Corporation | |||||||
London Interbank Offered Rate |
LNG | Liquefied Natural Gas, the cryogenic liquid form of natural gas. To reach a liquid form at atmospheric pressure, natural gas must be cooled to approximately negative 260 degrees Fahrenheit | |||||||
Moody's | Moody's Investors Service, Inc., credit rating agency | |||||||
NAV | Net Asset Value | |||||||
NGD | Natural Gas Distribution, a segment of | |||||||
NGD Margin | A financial measure used by NW Natural's CODM consisting of NGD operating revenues less the associated cost of gas, | |||||||
NNG Financial | NNG Financial Corporation, a wholly-owned subsidiary of NW Holdings | |||||||
NOL | Net Operating Loss | |||||||
NRD | Natural Resource Damages | |||||||
NW Holdings | Northwest Natural Holding Company | |||||||
NW Natural | Northwest Natural Gas Company, a wholly-owned subsidiary of NW Holdings | |||||||
NW Natural Renewables | NW Natural Renewables Holdings, LLC, a wholly-owned subsidiary of NW Holdings | |||||||
NWN Energy | NW Natural Energy, LLC, a wholly-owned subsidiary of NW Holdings | |||||||
NWN Gas Reserves | NWN Gas Reserves LLC, a wholly-owned subsidiary of Energy Corp | |||||||
NWN Gas Storage | NW Natural Gas Storage, LLC, a wholly-owned subsidiary of NWN Energy | |||||||
NW Natural Water Company, LLC, a wholly-owned subsidiary of NW Holdings | ||||||||
ODEQ | Oregon Department of Environmental Quality | |||||||
OPEIU | Office and Professional Employees International Union Local No. 11, AFL-CIO, | |||||||
OPUC | Public Utility Commission of Oregon; the entity that regulates our Oregon natural gas and regulated water | |||||||
PBGC | Pension Benefit Guaranty Corporation | |||||||
Purchased Gas Adjustment, a regulatory mechanism | ||||||||
Portland General | Portland General Electric; primary customer of the North Mist gas storage | |||||||
PHMSA | U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration | |||||||
PRP | Potentially Responsible Parties | |||||||
PUCT | Public Utility Commission of Texas; the entity that regulates NW Holdings' regulated water businesses with respect to rates and terms of service, among other matters | |||||||
RI/FS | Remedial Investigation / Feasibility Study | |||||||
Renewable Natural Gas, a source of natural gas derived from organic materials which may be captured, refined, and distributed on natural gas pipeline systems | ||||||||
RNG Hold Co | NW Natural RNG Holding Company, LLC, a wholly-owned subsidiary of Northwest Natural Gas Company | |||||||
ROD | Record of Decision | |||||||
ROE | Return on Equity, a measure of corporate profitability, calculated as net income or loss divided by average common | |||||||
ROR | Rate of Return, a measure of return on utility rate base. Authorized ROR refers to the rate of return approved by a regulatory agency and is generally discussed in the context of ROE and capital structure | |||||||
RTCs | Renewable Thermal Certificates | |||||||
S&P | Standard & Poor's Financial Services LLC, a credit rating agency and | |||||||
Sales Service | Service provided whereby a customer purchases both natural gas commodity supply and transportation from the | |||||||
SEC | U.S. Securities and Exchange Commission | |||||||
SRRM | Site Remediation and Recovery Mechanism, a billing rate mechanism for recovering prudently incurred environmental site remediation costs allocable to Oregon through NGD customer billings, subject to an earnings test | |||||||
Therm | The basic unit of natural gas measurement, equal to one hundred thousand British thermal units | |||||||
Transportation Service | Service provided whereby a customer purchases natural gas directly from a supplier but pays the utility to transport the gas over its distribution system to the customer’s facility | |||||||
U.S. GAAP | Accounting principles generally accepted in the United States of America | |||||||
WARM | An Oregon billing rate mechanism applied to natural gas residential and commercial customers to adjust for temperature variances from average weather | |||||||
WUTC | Washington Utilities and Transportation Commission, the entity that regulates our Washington natural gas and regulated water |
Number of Meters | % of Volumes | % of Margin (1) | |||||||
Residential | 680,134 | 37 | % | 65 | % | ||||
Commercial | 69,259 | 22 | % | 27 | % | ||||
Industrial | 1,028 | 41 | % | 8 | % | ||||
Other | N/A | N/A | — | % | |||||
Total | 750,421 | 100 | % | 100 | % |
Number of Meters | % of Volumes | % of Margin | ||||||||||||||||||
Residential | 715,958 | 38 | % | 65 | % | |||||||||||||||
Commercial | 68,961 | 21 | % | 24 | % | |||||||||||||||
Industrial | 978 | 41 | % | 7 | % | |||||||||||||||
Other(1) | N/A | N/A | 4 | % | ||||||||||||||||
Total | 785,897 | 100 | % | 100 | % |
Therms in millions | Therms | Percent | ||||||||||||
Sources of NGD supply: | ||||||||||||||
Firm supply purchases | 3.4 | 34 | % | |||||||||||
Mist underground storage (NGD only) | 3.1 | 31 | % | |||||||||||
Company-owned LNG storage | 1.9 | 19 | % | |||||||||||
Off-system storage contract | 0.5 | 5 | % | |||||||||||
Pipeline segmentation capacity | 0.6 | 6 | % | |||||||||||
Recall agreements | 0.4 | 4 | % | |||||||||||
Peak day citygate deliveries | 0.1 | 1 | % | |||||||||||
Total | 10.0 | 100 | % |
Maximum Daily Deliverability (therms in millions) | Designed Storage Capacity (Bcf) | |||||||||||||
Gas Storage Facilities | ||||||||||||||
Owned Facility | ||||||||||||||
Mist, Oregon (Mist Facility)(1) | 3.1 | 11.3 | ||||||||||||
Mist, Oregon (North Mist Facility)(2) | 1.3 | 4.1 | ||||||||||||
Contracted Facility | ||||||||||||||
Jackson Prairie, Washington(3) | 0.5 | 1.1 | ||||||||||||
LNG Facilities | ||||||||||||||
Owned Facilities | ||||||||||||||
Newport, Oregon | 0.6 | 1.0 | ||||||||||||
Portland, Oregon | 1.3 | 0.6 | ||||||||||||
Total | 6.8 | 18.1 |
Maximum Daily Deliverability (therms in millions) | Designed Storage Capacity (Bcf) | |||||
Gas Storage Facilities | ||||||
Owned Facility | ||||||
Mist, Oregon(1) | 3.1 | 10.6 | ||||
Contracted Facility | ||||||
Jackson Prairie, Washington(2) | 0.5 | 1.1 | ||||
LNG Facilities | ||||||
Owned Facilities | ||||||
Newport, Oregon | 0.6 | 1.0 | ||||
Portland, Oregon | 1.3 | 0.6 | ||||
Total | 5.5 | 13.3 |
Contract Duration (primary term) | Percent of Purchases | ||||
Long-term (one year or longer) | % | ||||
Short-term (more than one month, less than one year) | |||||
Spot (one month or less) | |||||
Total | 100 | % |
NW Natural: | |||||
Unionized | |||||
Total NW Natural | |||||
Water company employees | 61 | ||||
Other | 3 | ||||
Total other entities | 64 | ||||
Total Employees | 1,237 |
Issuer Purchases of Equity Securities | ||||||||||||||||||||||||||
Period | Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(2) | ||||||||||||||||||||||
Balance forward | 2,124,528 | $ | 16,732,648 | |||||||||||||||||||||||
10/01/21-10/31/21 | 3,728 | $ | 46.96 | — | — | |||||||||||||||||||||
11/01/21-11/30/21 | 2,200 | 46.34 | — | — | ||||||||||||||||||||||
12/01/21-12/31/21 | — | — | — | — | ||||||||||||||||||||||
Total | 5,928 | 2,124,528 | $ | 16,732,648 |
Issuer Purchases of Equity Securities | ||||||||||||||
Period | Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(2) | ||||||||||
Balance forward | 2,124,528 | $ | 16,732,648 | |||||||||||
10/01/18-10/31/18 | — | $ | — | — | — | |||||||||
11/01/18-11/30/18 | 1,147 | 69.02 | — | — | ||||||||||
12/01/18-12/31/18 | — | — | — | — | ||||||||||
Total | 1,147 | 2,124,528 | $ | 16,732,648 |
NORTHWEST NATURAL HOLDING COMPANY SELECTED FINANCIAL DATA | ||||||||||||||||||||
For the year ended December 31, | ||||||||||||||||||||
In thousands, except per share data | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Operating revenues | $ | 706,143 | $ | 755,038 | $ | 668,173 | $ | 717,888 | $ | 747,251 | ||||||||||
Earnings from continuing operations | 67,311 | 72,073 | 62,419 | 60,026 | 66,006 | |||||||||||||||
Loss from discontinued operations, net of tax | (2,742 | ) | (127,696 | ) | (3,524 | ) | (6,323 | ) | (7,314 | ) | ||||||||||
Net income (loss) | 64,569 | (55,623 | ) | 58,895 | 53,703 | 58,692 | ||||||||||||||
Earnings from continuing operations per share of common stock: | ||||||||||||||||||||
Basic | $ | 2.34 | $ | 2.51 | $ | 2.26 | $ | 2.19 | $ | 2.43 | ||||||||||
Diluted | 2.33 | 2.51 | 2.25 | 2.19 | 2.42 | |||||||||||||||
Loss from discontinued operations per share of common stock: | ||||||||||||||||||||
Basic | $ | (0.10 | ) | $ | (4.45 | ) | $ | (0.13 | ) | $ | (0.23 | ) | $ | (0.27 | ) | |||||
Diluted | (0.09 | ) | (4.44 | ) | (0.13 | ) | (0.23 | ) | (0.26 | ) | ||||||||||
Earnings (Loss) per share of common stock: | ||||||||||||||||||||
Basic | $ | 2.24 | $ | (1.94 | ) | $ | 2.13 | $ | 1.96 | $ | 2.16 | |||||||||
Diluted | 2.24 | (1.93 | ) | 2.12 | 1.96 | 2.16 | ||||||||||||||
Dividends paid per share of common stock | 1.89 | 1.88 | 1.87 | 1.86 | 1.85 | |||||||||||||||
Total assets, end of period | $ | 3,242,662 | $ | 3,039,746 | $ | 3,079,801 | $ | 3,069,410 | $ | 3,056,326 | ||||||||||
Total equity | 762,634 | 742,776 | 850,497 | 780,972 | 767,321 | |||||||||||||||
Long-term debt(1) | 706,247 | 683,184 | 679,334 | 569,445 | 593,095 |
NORTHWEST NATURAL GAS COMPANY SELECTED FINANCIAL DATA | ||||||||||||||||||||
For the year ended December 31, | ||||||||||||||||||||
In thousands, except per share data | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Operating revenues | $ | 705,571 | $ | 755,038 | $ | 667,949 | $ | 717,664 | $ | 747,027 | ||||||||||
Earnings from continuing operations | 68,049 | 71,720 | 62,835 | $ | 60,511 | $ | 66,504 | |||||||||||||
Loss from discontinued operations, net of tax | (1,723 | ) | (127,343 | ) | (3,940 | ) | $ | (6,808 | ) | $ | (7,812 | ) | ||||||||
Net income (loss) | 66,326 | (55,623 | ) | 58,895 | $ | 53,703 | $ | 58,692 | ||||||||||||
Total assets, end of period | $ | 3,192,736 | $ | 3,043,676 | $ | 3,081,470 | $ | 3,072,100 | $ | 3,063,712 | ||||||||||
Total equity | 715,668 | 742,776 | $ | 850,497 | $ | 780,972 | $ | 767,321 | ||||||||||||
Long-term debt(1) | 704,134 | 683,184 | $ | 679,334 | $ | 569,445 | $ | 593,095 |
NW HOLDINGS NON-GAAP RECONCILIATIONS | |||||||||||||||||||||
2018 | 2017 | 2016 | |||||||||||||||||||
In millions, except per share data | Amount | Per Share | Amount | Per Share | Amount | Per Share | |||||||||||||||
Net income from continuing operations | $ | 67.3 | $ | 2.33 | $ | 72.1 | $ | 2.51 | $ | 62.4 | $ | 2.25 | |||||||||
Adjustments: | |||||||||||||||||||||
Regulatory environmental disallowance(1) | — | — | — | — | 3.3 | 0.12 | |||||||||||||||
Tax effects of 2017 TCJA remeasurement(2) | — | — | (3.4 | ) | (0.12 | ) | — | — | |||||||||||||
Tax effects of non-GAAP adjustment | — | — | — | — | (1.3 | ) | (0.05 | ) | |||||||||||||
Adjusted net income from continuing operations | $ | 67.3 | $ | 2.33 | $ | 68.7 | $ | 2.39 | $ | 64.4 | $ | 2.32 | |||||||||
NGD segment net income from continuing operations | $ | 57.5 | $ | 1.99 | $ | 60.5 | $ | 2.10 | $ | 54.6 | $ | 1.96 | |||||||||
Adjustments: | |||||||||||||||||||||
Regulatory environmental disallowance(1) | — | — | — | — | 3.3 | 0.12 | |||||||||||||||
Tax effects of 2017 TCJA remeasurement(2) | — | — | 1.0 | 0.03 | — | — | |||||||||||||||
Tax effects of non-GAAP adjustment | — | — | — | — | (1.3 | ) | (0.05 | ) | |||||||||||||
Adjusted NGD segment net income from continuing operations | $ | 57.5 | $ | 1.99 | $ | 61.5 | $ | 2.13 | $ | 56.6 | $ | 2.03 | |||||||||
Other net income from continuing operations | $ | 9.8 | $ | 0.34 | $ | 11.6 | $ | 0.41 | $ | 7.9 | $ | 0.29 | |||||||||
Adjustments: | |||||||||||||||||||||
Tax effects of 2017 TCJA remeasurement(2) | — | — | (4.4 | ) | (0.15 | ) | — | — | |||||||||||||
Adjusted other net income from continuing operations | $ | 9.8 | $ | 0.34 | $ | 7.2 | $ | 0.26 | $ | 7.9 | $ | 0.29 |
NW NATURAL NON-GAAP RECONCILIATIONS | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
In millions | Amount | Amount | Amount | |||||||||
Net income from continuing operations | $ | 68.0 | $ | 71.7 | $ | 62.8 | ||||||
Adjustments: | ||||||||||||
Regulatory environmental disallowance(1) | — | — | 3.3 | |||||||||
Tax effects of 2017 TCJA remeasurement(2) | — | (3.0 | ) | — | ||||||||
Tax effects of non-GAAP adjustment | — | — | (1.3 | ) | ||||||||
Adjusted net income from continuing operations | $ | 68.0 | $ | 68.7 | $ | 64.8 | ||||||
NGD segment net income from continuing operations | $ | 57.5 | $ | 60.5 | $ | 54.6 | ||||||
Adjustments: | ||||||||||||
Regulatory environmental disallowance(1) | — | — | 3.3 | |||||||||
Tax effects of 2017 TCJA remeasurement(2) | — | 1.0 | — | |||||||||
Tax effects of non-GAAP adjustment | — | — | (1.3 | ) | ||||||||
Adjusted NGD segment net income from continuing operations | $ | 57.5 | $ | 61.5 | $ | 56.6 | ||||||
Other net income from continuing operations | $ | 10.6 | $ | 11.2 | $ | 8.3 | ||||||
Adjustments: | ||||||||||||
Tax effects of 2017 TCJA remeasurement(2) | — | (4.0 | ) | — | ||||||||
Adjusted other net income from continuing operations | $ | 10.6 | $ | 7.2 | $ | 8.3 |
2018 | 2017 | 2016 | |||||||||||||||||||
In millions, except per share data | Amount | Per Share | Amount | Per Share | Amount | Per Share | |||||||||||||||
Net income from continuing operations | $ | 67.3 | $ | 2.33 | $ | 72.1 | $ | 2.51 | $ | 62.4 | $ | 2.25 | |||||||||
Loss from discontinued operations, net of tax | (2.7 | ) | (0.09 | ) | (127.7 | ) | (4.44 | ) | (3.5 | ) | (0.13 | ) | |||||||||
Consolidated net income (loss) | $ | 64.6 | $ | 2.24 | $ | (55.6 | ) | $ | (1.93 | ) | $ | 58.9 | $ | 2.12 | |||||||
Adjusted net income from continuing operations(1) | $ | 67.3 | $ | 2.33 | $ | 68.7 | $ | 2.39 | $ | 64.4 | $ | 2.32 | |||||||||
Natural gas distribution margin | $ | 383.7 | $ | 392.6 | $ | 376.6 |
2021 | 2020 | 2019 | ||||||||||||||||||||||||
In millions | Amount | Per Share | Amount | Per Share | Amount | Per Share | ||||||||||||||||||||
Net income from continuing operations | $ | 78.7 | $ | 2.56 | $ | 70.3 | $ | 2.30 | $ | 65.3 | $ | 2.19 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 6.5 | 0.21 | (3.6) | (0.12) | ||||||||||||||||||||
Consolidated net income | $ | 78.7 | $ | 2.56 | $ | 76.8 | $ | 2.51 | $ | 61.7 | $ | 2.07 | ||||||||||||||
2018 | 2017 | 2016 | ||||||||||
In millions, except per share data | Amount | Amount | Amount | |||||||||
Net income from continuing operations | $ | 68.0 | $ | 71.7 | $ | 62.8 | ||||||
Loss from discontinued operations, net of tax | (1.7 | ) | (127.3 | ) | (3.9 | ) | ||||||
Consolidated net income (loss) | $ | 66.3 | $ | (55.6 | ) | $ | 58.9 | |||||
Adjusted net income from continuing operations(1) | $ | 68.0 | $ | 68.7 | $ | 64.8 |
2021 | 2020 | 2019 | |||||||||||||||
In millions | Amount | Amount | Amount | ||||||||||||||
Consolidated net income | $ | 81.2 | $ | 70.6 | $ | 69.0 | |||||||||||
Natural gas distribution margin | $ | 479.8 | $ | 438.1 | $ | 422.7 |
Per common share | 2021 | 2020 | 2019 | |||||||||||||||||
Dividends paid | $ | 1.9225 | $ | 1.9125 | $ | 1.9025 |
Per common share | 2018 | 2017 | 2016 | |||||||||
Dividends paid | $ | 1.8925 | $ | 1.8825 | $ | 1.8725 |
OR | WA | Oregon | Washington | ||||||||||||||||||
2012 Rate Case | 2018 Rate Case (effective 11/1/2018) | 2009 Rate Case | 2018 Rate Case | 2020 Rate Case (effective 11/1/2020) | 2019 Rate Case (effective 11/1/2019) | 2021 Rate Case (effective 11/1/2021) | |||||||||||||||
Authorized Rate Structure: | Authorized Rate Structure: | ||||||||||||||||||||
ROE | 9.5% | 9.4% | 10.1% | ROE | 9.4% | 9.4% | ** | ||||||||||||||
ROR | 7.8% | 7.3% | 8.4% | ROR | 7.3% | 7.0% | 7.2% | 6.8% | |||||||||||||
Debt/Equity Ratio | 50%/50% | 49%/51% | Debt/Equity Ratio | 50%/50% | 51%/49% | ** | |||||||||||||||
Key Regulatory Mechanisms: | Key Regulatory Mechanisms: | ||||||||||||||||||||
PGA | X | X | |||||||||||||||||||
Purchased Gas Adjustment (PGA) | Purchased Gas Adjustment (PGA) | X | X | ||||||||||||||||||
Gas Cost Incentive Sharing | X | Gas Cost Incentive Sharing | X | ||||||||||||||||||
Decoupling | X | Decoupling | X | ||||||||||||||||||
WARM | X | ||||||||||||||||||||
Environmental Cost Deferral | X | X | |||||||||||||||||||
Environmental Cost Recovery (SRRM) | X | ||||||||||||||||||||
Pension Balancing | X | ||||||||||||||||||||
Weather Normalization (WARM) | Weather Normalization (WARM) | X | |||||||||||||||||||
Environmental Cost Recovery | Environmental Cost Recovery | X | X | ||||||||||||||||||
Interstate Storage and Asset Management Sharing | X | X | Interstate Storage and Asset Management Sharing | X | X | ||||||||||||||||
** The WUTC Order does not specify the underlying inputs to the cost of capital, including capital structure and return on equity. | ** The WUTC Order does not specify the underlying inputs to the cost of capital, including capital structure and return on equity. |
Annual spend | ||
Less: $5.0 million base rate rider | ||
Prior year carry-over(1) | ||
$5.0 million insurance + interest on insurance | ||
Total deferred annual spend subject to earnings test | ||
Less: over-earnings adjustment, if any | ||
Add: deferred interest on annual spend(2) | ||
Total amount transferred to post-review |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
Oregon | $ | 9.1 | $ | 17.0 | $ | 16.3 | ||||||||||||||
Washington | $ | 3.1 | $ | 0.7 | $ | 1.2 |
Oregon | Washington | ||||||||||
Reinstituting Disconnections for Nonpayment: | |||||||||||
Residential | August 1, 2021 | September 30, 2021 | |||||||||
Small Commercial | December 1, 2020 | September 30, 2021 | |||||||||
Large Commercial/Industrial | November 3, 2020 | October 20, 2020 | |||||||||
Resuming Residential Reconnection Fee Charges | October 1, 2022 | * | March 29, 2022 | ||||||||
Reinstituting Late Fees for Nonpayment: | |||||||||||
Residential | October 1, 2022 | * | March 29, 2022 | ||||||||
Small Commercial | December 1, 2020 | March 29, 2022 | |||||||||
Large Commercial/Industrial | November 3, 2020 | October 20, 2020 | |||||||||
Extended Time Payment Arrangements: | |||||||||||
Residential | Up to 24 months | Up to 18 months | |||||||||
Small Commercial | Up to 6 months | Up to 12 months | |||||||||
Arrearage Management Program | 1% of Retail Revenue | 1% of Retail Revenue |
In millions | 2018 | 2017 | 2016 | |||||||||
Oregon | $ | 11.7 | $ | 11.7 | $ | 9.4 | ||||||
Washington | 1.0 | 1.0 | 1.0 |
Dollars and therms in millions, except EPS data | 2021 | 2020 | 2019 | |||||||||||||||||
NGD net income | $ | 69.0 | $ | 63.6 | $ | 60.8 | ||||||||||||||
Diluted EPS - NGD segment | $ | 2.24 | $ | 2.08 | $ | 2.04 | ||||||||||||||
Gas sold and delivered (in therms) | 1,185 | 1,143 | 1,215 | |||||||||||||||||
NGD margin(1) | $ | 479.8 | $ | 438.1 | $ | 422.7 |
Dollars and therms in millions, except EPS data | 2018 | 2017 | 2016 | |||||||||
NGD net income | $ | 57.5 | $ | 60.5 | $ | 54.6 | ||||||
Adjusted NGD net income(1) | 57.5 | 61.5 | 56.6 | |||||||||
EPS - NGD segment | 1.99 | 2.10 | 1.96 | |||||||||
Adjusted EPS - NGD segment(1) | 1.99 | 2.13 | 2.03 | |||||||||
Gas sold and delivered (in therms) | 1,128 | 1,240 | 1,085 | |||||||||
NGD margin(2) | $ | 383.7 | $ | 392.6 | $ | 376.6 |
Favorable (Unfavorable) | ||||||||||||||||||||||||||||||||
In thousands, except degree day and customer data | 2021 | 2020 | 2019 | 2021 vs. 2020 | 2020 vs. 2019 | |||||||||||||||||||||||||||
NGD volumes (therms): | ||||||||||||||||||||||||||||||||
Residential and commercial sales | 703,054 | 677,271 | 734,347 | 25,783 | (57,076) | |||||||||||||||||||||||||||
Industrial sales and transportation | 481,721 | 465,626 | 480,807 | 16,095 | (15,181) | |||||||||||||||||||||||||||
Total NGD volumes sold and delivered | 1,184,775 | 1,142,897 | 1,215,154 | 41,878 | (72,257) | |||||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Residential and commercial sales | $ | 730,794 | $ | 661,346 | $ | 638,884 | $ | 69,448 | $ | 22,462 | ||||||||||||||||||||||
Industrial sales and transportation | 65,299 | 58,678 | 56,553 | 6,621 | 2,125 | |||||||||||||||||||||||||||
Other distribution revenues | 1,707 | 1,926 | 13,035 | (219) | (11,109) | |||||||||||||||||||||||||||
Other regulated services | 19,087 | 19,122 | 12,056 | (35) | 7,066 | |||||||||||||||||||||||||||
Total operating revenues | 816,887 | 741,072 | 720,528 | 75,815 | 20,544 | |||||||||||||||||||||||||||
Less: Cost of gas | 292,538 | 262,980 | 255,135 | (29,558) | (7,845) | |||||||||||||||||||||||||||
Less: Environmental remediation expense | 9,938 | 9,691 | 12,337 | (247) | 2,646 | |||||||||||||||||||||||||||
Less: Revenue taxes | 34,600 | 30,291 | 30,325 | (4,309) | 34 | |||||||||||||||||||||||||||
NGD margin | $ | 479,811 | $ | 438,110 | $ | 422,731 | $ | 41,701 | $ | 15,379 | ||||||||||||||||||||||
NGD margin(1) | ||||||||||||||||||||||||||||||||
Residential and commercial sales | $ | 430,295 | $ | 385,989 | $ | 366,974 | $ | 44,306 | $ | 19,015 | ||||||||||||||||||||||
Industrial sales and transportation | 32,182 | 30,800 | 31,985 | 1,382 | (1,185) | |||||||||||||||||||||||||||
Gain (loss) from gas cost incentive sharing | (3,381) | 267 | (1,299) | (3,648) | 1,566 | |||||||||||||||||||||||||||
Other margin(2) | 1,633 | 1,938 | 13,021 | (305) | (11,083) | |||||||||||||||||||||||||||
Other regulated services | 19,082 | 19,116 | 12,050 | (34) | 7,066 | |||||||||||||||||||||||||||
NGD margin | $ | 479,811 | $ | 438,110 | $ | 422,731 | $ | 41,701 | $ | 15,379 | ||||||||||||||||||||||
Degree days(3) | ||||||||||||||||||||||||||||||||
Average(4) | 2,692 | 2,706 | 2,710 | (14) | (4) | |||||||||||||||||||||||||||
Actual | 2,378 | 2,384 | 2,709 | — | % | (12) | % | |||||||||||||||||||||||||
Percent warmer than average weather | (12) | % | (12) | % | — | % | ||||||||||||||||||||||||||
NGD meters - end of period: | ||||||||||||||||||||||||||||||||
Residential meters | 715,958 | 704,675 | 692,012 | 11,283 | 12,663 | |||||||||||||||||||||||||||
Commercial meters | 68,961 | 68,812 | 69,858 | 149 | (1,046) | |||||||||||||||||||||||||||
Industrial meters | 978 | 989 | 1,007 | (11) | (18) | |||||||||||||||||||||||||||
Total number of meters | 785,897 | 774,476 | 762,877 | 11,421 | 11,599 | |||||||||||||||||||||||||||
NGD meter growth: | ||||||||||||||||||||||||||||||||
Residential meters | 1.6 | % | 1.8 | % | ||||||||||||||||||||||||||||
Commercial meters | 0.2 | % | (1.5) | % | ||||||||||||||||||||||||||||
Industrial meters | (1.1) | % | (1.8) | % | ||||||||||||||||||||||||||||
Total meter growth | 1.5 | % | 1.5 | % |
Favorable/(Unfavorable) | ||||||||||||||||||||
In thousands, except degree day and customer data | 2018 | 2017 | 2016 | 2018 vs. 2017 | 2017 vs. 2016 | |||||||||||||||
NGD volumes (therms): | ||||||||||||||||||||
Residential and commercial sales | 661,163 | 740,369 | 609,222 | (79,206 | ) | 131,147 | ||||||||||||||
Industrial sales and transportation | 467,040 | 499,924 | 475,774 | (32,884 | ) | 24,150 | ||||||||||||||
Total NGD volumes sold and delivered | 1,128,203 | 1,240,293 | 1,084,996 | (112,090 | ) | 155,297 | ||||||||||||||
NGD operating revenues: | ||||||||||||||||||||
Residential and commercial sales | $ | 621,782 | $ | 684,214 | $ | 604,390 | $ | (62,432 | ) | $ | 79,824 | |||||||||
Industrial sales and transportation | 58,713 | 63,925 | 59,386 | (5,212 | ) | 4,539 | ||||||||||||||
Other revenues | 153 | 3,872 | 3,812 | (3,719 | ) | 60 | ||||||||||||||
Less: Revenue taxes(1) | — | 19,069 | 17,111 | (19,069 | ) | 1,958 | ||||||||||||||
Total NGD operating revenues | 680,648 | 732,942 | 650,477 | (52,294 | ) | 82,465 | ||||||||||||||
Less: Cost of gas | 255,743 | 325,019 | 260,588 | 69,276 | (64,431 | ) | ||||||||||||||
Less: Environmental remediation expense | 11,127 | 15,291 | 13,298 | 4,164 | (1,993 | ) | ||||||||||||||
Less: Revenue taxes(1) | 30,082 | — | — | (30,082 | ) | — | ||||||||||||||
NGD margin | 383,696 | 392,632 | 376,591 | (8,936 | ) | 16,041 | ||||||||||||||
NGD margin:(2) | ||||||||||||||||||||
Residential and commercial sales | $ | 352,710 | $ | 355,736 | $ | 338,060 | $ | (3,026 | ) | $ | 17,676 | |||||||||
Industrial sales and transportation | 30,817 | 31,847 | 30,989 | (1,030 | ) | 858 | ||||||||||||||
Miscellaneous revenues | 5,542 | 3,865 | 3,796 | 1,677 | 69 | |||||||||||||||
Gain from gas cost incentive sharing | (27 | ) | 1,237 | 3,960 | (1,264 | ) | (2,723 | ) | ||||||||||||
Other margin adjustments(3) | (5,346 | ) | (53 | ) | (214 | ) | (5,293 | ) | 161 | |||||||||||
NGD margin | $ | 383,696 | $ | 392,632 | $ | 376,591 | $ | (8,936 | ) | $ | 16,041 | |||||||||
Degree days(4) | ||||||||||||||||||||
Average(5) | 2,714 | 2,705 | 2,716 | 9 | (11 | ) | ||||||||||||||
Actual | 2,313 | 3,114 | 2,098 | (26 | )% | 48 | % | |||||||||||||
Percent colder (warmer) than average weather(5) | (15 | )% | 15 | % | (23 | )% | ||||||||||||||
NGD Meters - end of period: | ||||||||||||||||||||
Residential meters | 680,134 | 668,803 | 656,855 | 11,331 | 11,948 | |||||||||||||||
Commercial meters | 69,259 | 68,050 | 67,278 | 1,209 | 772 | |||||||||||||||
Industrial meters | 1,028 | 1,021 | 1,013 | 7 | 8 | |||||||||||||||
Total number of meters | 750,421 | 737,874 | 725,146 | 12,547 | 12,728 | |||||||||||||||
NGD Meter growth: | ||||||||||||||||||||
Residential meters | 1.7 | % | 1.8 | % | ||||||||||||||||
Commercial meters | 1.8 | % | 1.1 | % | ||||||||||||||||
Industrial meters | 0.7 | % | 0.8 | % | ||||||||||||||||
Total meter growth | 1.7 | % | 1.8 | % |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
Volumes (therms): | ||||||||||||||||||||
Residential sales | 445.6 | 435.2 | 457.2 | |||||||||||||||||
Commercial sales | 257.5 | 242.1 | 277.1 | |||||||||||||||||
Total volumes | 703.1 | 677.3 | 734.3 | |||||||||||||||||
Operating revenues: | ||||||||||||||||||||
Residential sales | $ | 506.2 | $ | 460.3 | $ | 437.7 | ||||||||||||||
Commercial sales | 224.6 | 201.0 | 201.2 | |||||||||||||||||
Total operating revenues | $ | 730.8 | $ | 661.3 | $ | 638.9 | ||||||||||||||
NGD Margin: | ||||||||||||||||||||
Residential margin | $ | 312.5 | $ | 281.1 | $ | 265.9 | ||||||||||||||
Commercial margin | 117.8 | 104.9 | 101.1 | |||||||||||||||||
Total NGD margin | $ | 430.3 | $ | 386.0 | $ | 367.0 |
In millions | 2018 | 2017 | 2016 | |||||||||
Volumes (therms): | ||||||||||||
Residential sales | 411.7 | 465.2 | 379.2 | |||||||||
Commercial sales | 249.5 | 275.2 | 230.0 | |||||||||
Total volumes | 661.2 | 740.4 | 609.2 | |||||||||
Operating revenues: | ||||||||||||
Residential sales | $ | 418.4 | $ | 455.9 | $ | 404.3 | ||||||
Commercial sales | 203.3 | 228.3 | 200.1 | |||||||||
Total operating revenues | $ | 621.7 | $ | 684.2 | $ | 604.4 | ||||||
NGD margin: | ||||||||||||
Residential: | ||||||||||||
Sales | $ | 240.0 | $ | 262.1 | $ | 223.2 | ||||||
Alternative revenues: | ||||||||||||
Weather normalization | 7.6 | (11.9 | ) | 12.7 | ||||||||
Decoupling | (0.6 | ) | (2.4 | ) | 0.8 | |||||||
Amortization of alternative revenue | 1.9 | — | — | |||||||||
Total residential NGD margin | 248.9 | 247.8 | 236.7 | |||||||||
Commercial: | ||||||||||||
Sales | 103.7 | 101.5 | 87.2 | |||||||||
Alternative revenues: | ||||||||||||
Weather normalization | 2.4 | (4.6 | ) | 5.0 | ||||||||
Decoupling | 7.3 | 11.1 | 9.2 | |||||||||
Amortization of alternative revenue | (9.6 | ) | — | — | ||||||||
Total commercial NGD margin | 103.8 | 108.0 | 101.4 | |||||||||
Total NGD margin | $ | 352.7 | $ | 355.8 | $ | 338.1 |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
Volumes (therms): | ||||||||||||||||||||
Firm and interruptible sales | 90.8 | 82.9 | 84.0 | |||||||||||||||||
Firm and interruptible transportation | 390.9 | 382.7 | 396.8 | |||||||||||||||||
Total volumes | 481.7 | 465.6 | 480.8 | |||||||||||||||||
NGD Margin: | ||||||||||||||||||||
Firm and interruptible sales | $ | 12.6 | $ | 11.6 | $ | 12.1 | ||||||||||||||
Firm and interruptible transportation | 19.6 | 19.2 | 19.9 | |||||||||||||||||
Total NGD margin | $ | 32.2 | $ | 30.8 | $ | 32.0 |
In millions | 2018 | 2017 | 2016 | |||||||||
Volumes (therms): | ||||||||||||
Industrial - firm sales | 35.3 | 35.7 | 33.8 | |||||||||
Industrial - firm transportation | 162.7 | 167.7 | 156.9 | |||||||||
Industrial - interruptible sales | 50.6 | 55.1 | 50.4 | |||||||||
Industrial - interruptible transportation | 218.4 | 241.4 | 234.7 | |||||||||
Total volumes | 467.0 | 499.9 | 475.8 | |||||||||
NGD margin: | ||||||||||||
Industrial - sales and transportation | $ | 30.8 | $ | 31.8 | $ | 31.0 |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
North Mist storage services | $ | 19.1 | $ | 19.5 | $ | 11.8 | ||||||||||||||
Other services | — | (0.4) | 0.3 | |||||||||||||||||
Total other regulated services | $ | 19.1 | $ | 19.1 | $ | 12.1 |
In millions | 2018 | 2017 | 2016 | |||||||||
Other NGD revenues | $ | 5.5 | $ | 3.9 | $ | 3.8 |
In millions, except where indicated | 2021 | 2020 | 2019 | |||||||||||||||||
Cost of gas | $ | 292.5 | $ | 263.0 | $ | 255.1 | ||||||||||||||
Volumes sold (therms)(1) | 794 | 760 | 818 | |||||||||||||||||
Average cost of gas (cents per therm) | $ | 0.37 | $ | 0.35 | $ | 0.31 | ||||||||||||||
Gain (loss) from gas cost incentive sharing | $ | (3.4) | $ | 0.3 | $ | (1.3) |
Dollars and therms in millions | 2018 | 2017 | 2016 | |||||||||
Cost of gas | $ | 255.7 | $ | 325.0 | $ | 260.6 | ||||||
Volumes sold (therms) | 747 | 831 | 693 | |||||||||
Average cost of gas (cents per therm) | $ | 0.34 | $ | 0.39 | $ | 0.38 | ||||||
Gain from gas cost incentive sharing | — | 1.2 | 4.0 |
In millions, except EPS data | 2021 | 2020 | 2019 | ||||||||||||||
NW Natural other - net income | $ | 12.2 | $ | 7.0 | $ | 8.1 | |||||||||||
Other NW Holdings activity | (2.5) | (0.3) | (3.6) | ||||||||||||||
NW Holdings other - net income | $ | 9.7 | $ | 6.7 | $ | 4.5 | |||||||||||
Diluted EPS - NW Holdings - other | $ | 0.32 | $ | 0.22 | $ | 0.15 |
In millions, except EPS data | 2018 | 2017 | 2016 | ||||||||
NW Natural other - net income | $ | 10.6 | $ | 11.2 | $ | 8.3 | |||||
Other NW Holdings activity | (0.8 | ) | 0.4 | (0.4 | ) | ||||||
NW Holdings other - net income | 9.8 | 11.6 | 7.9 | ||||||||
EPS - NW Holdings - other | 0.34 | 0.41 | 0.29 |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
NW Natural | $ | 188.8 | $ | 168.9 | $ | 169.1 | ||||||||||||||
Other NW Holdings operations and maintenance | 15.4 | 11.2 | 9.1 | |||||||||||||||||
NW Holdings | $ | 204.2 | $ | 180.1 | $ | 178.2 |
In millions | 2018 | 2017 | 2016 | |||||||||
NW Natural | $ | 155.2 | $ | 152.2 | $ | 136.0 | ||||||
Other NW Holdings operations and maintenance | 1.5 | 0.2 | 0.7 | |||||||||
NW Holdings | $ | 156.7 | $ | 152.4 | $ | 136.7 |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
NW Natural | $ | 110.5 | $ | 101.6 | $ | 90.4 | ||||||||||||||
Other NW Holdings depreciation and amortization | 3.0 | 2.1 | 1.1 | |||||||||||||||||
NW Holdings | $ | 113.5 | $ | 103.7 | $ | 91.5 |
In millions | 2018 | 2017 | 2016 | |||||||||
NW Natural | $ | 85.0 | $ | 81.0 | $ | 77.6 | ||||||
Other NW Holdings depreciation and amortization | 0.2 | 0.1 | — | |||||||||
NW Holdings | $ | 85.2 | $ | 81.1 | $ | 77.6 |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
NW Natural total other income (expense), net | $ | (12.7) | $ | (15.1) | $ | (23.0) | ||||||||||||||
Other NW Holdings activity | 0.1 | 1.2 | 0.2 | |||||||||||||||||
NW Holdings total other income (expense), net | $ | (12.6) | $ | (13.9) | $ | (22.8) |
In millions | 2018 | 2017 | 2016 | |||||||||
Pension and other postretirement costs other than service costs | $ | (9.1 | ) | $ | (6.1 | ) | $ | (7.0 | ) | |||
Equity portion of AFUDC | 4.1 | 2.7 | — | |||||||||
Gains from company-owned life insurance | 1.7 | 2.5 | 1.7 | |||||||||
Net interest income (expense) on deferred regulatory accounts | 1.7 | 2.0 | (0.1 | ) | ||||||||
Other non-operating | (2.0 | ) | (1.3 | ) | (1.6 | ) | ||||||
NW Natural total other income (expense), net | $ | (3.6 | ) | $ | (0.2 | ) | $ | (7.0 | ) | |||
Other NW Holdings activity | — | (0.1 | ) | (0.2 | ) | |||||||
NW Holdings total other income (expense), net | $ | (3.6 | ) | $ | (0.3 | ) | $ | (7.2 | ) |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
NW Natural | $ | 43.0 | $ | 40.9 | $ | 41.3 | ||||||||||||||
Other NW Holdings interest expense | 1.5 | 2.2 | 1.4 | |||||||||||||||||
NW Holdings | $ | 44.5 | $ | 43.1 | $ | 42.7 |
In millions | 2018 | 2017 | 2016 | |||||||||
NW Natural | $ | 37.0 | $ | 37.5 | $ | 38.1 | ||||||
Other NW Holdings interest expense | 0.1 | — | — | |||||||||
NW Holdings | $ | 37.1 | $ | 37.5 | $ | 38.1 |
In millions | 2018 | 2017 | 2016 | |||||||||
Income tax expense | $ | 24.2 | $ | 41.0 | $ | 43.0 | ||||||
Effects of non-GAAP adjustments(1) | — | — | 1.3 | |||||||||
Effects from the TCJA(1) | — | 3.4 | — | |||||||||
Adjusted income tax expense | $ | 24.2 | $ | 44.4 | $ | 44.3 | ||||||
Effective tax rate | 26.4 | % | 36.3 | % | 40.8 | % | ||||||
Adjusted effective tax rate | 26.4 | % | 39.3 | % | 40.8 | % |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
Income tax expense | $ | 27.4 | $ | 21.1 | $ | 12.6 | ||||||||||||||
Effective tax rate | 25.8 | % | 23.1 | % | 16.2 | % |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
Income tax expense | $ | 28.3 | $ | 21.1 | $ | 14.1 | ||||||||||||||
Effective tax rate | 25.9 | % | 23.0 | % | 16.9 | % |
In millions | 2018 | 2017 | 2016 | |||||||||
Income tax expense | $ | 24.5 | $ | 41.5 | $ | 43.3 | ||||||
Effects of non-GAAP adjustments(1) | — | — | 1.3 | |||||||||
Effects from the TCJA(1) | — | 3.0 | — | |||||||||
Adjusted income tax expense | $ | 24.5 | $ | 44.5 | $ | 44.6 | ||||||
Effective tax rate | 26.4 | % | 36.6 | % | 40.8 | % | ||||||
Adjusted effective tax rate | 26.4 | % | 39.3 | % | 40.8 | % |
December 31, | ||||||
2018 | 2017 | |||||
Common stock equity | 44.4 | % | 47.1 | % | ||
Long-term debt | 41.1 | 43.3 | ||||
Short-term debt, including current maturities of long-term debt | 14.5 | 9.6 | ||||
Total | 100.0 | % | 100.0 | % |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Common equity | 47.2 | % | 48.2 | % | ||||||||||
Long-term debt (including current maturities) | 52.8 | 51.8 | ||||||||||||
Total | 100.0 | % | 100.0 | % |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Common equity | 49.8 | % | 47.7 | % | ||||||||||
Long-term debt (including current maturities) | 50.2 | 52.3 | ||||||||||||
Total | 100.0 | % | 100.0 | % |
December 31, | ||||||
2018 | 2017 | |||||
Common stock equity | 42.9 | % | 47.1 | % | ||
Long-term debt | 42.2 | 43.3 | ||||
Short-term debt, including current maturities of long-term debt | 14.9 | 9.6 | ||||
Total | 100.0 | % | 100.0 | % |
Payments Due in Years Ending December 31, | ||||||||||||||||||||||||||||
In millions | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||
NW Natural | ||||||||||||||||||||||||||||
Short-term debt maturities | $ | 217.5 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 217.5 | ||||||||||||||
Long-term debt maturities | 30.0 | 75.0 | 60.0 | — | 90.0 | 484.7 | 739.7 | |||||||||||||||||||||
Interest on long-term debt | 36.7 | 31.0 | 29.9 | 28.2 | 27.3 | 275.8 | 428.9 | |||||||||||||||||||||
Postretirement benefit payments(1) | 25.1 | 26.1 | 27.0 | 27.8 | 28.7 | 159.4 | 294.1 | |||||||||||||||||||||
Operating leases | 5.4 | 4.8 | 7.1 | 7.2 | 7.3 | 149.9 | 181.7 | |||||||||||||||||||||
Gas purchases(2) | 144.5 | 2.8 | 2.3 | — | — | — | 149.6 | |||||||||||||||||||||
Gas pipeline capacity commitments | 82.7 | 80.2 | 66.7 | 61.1 | 60.6 | 580.0 | 931.3 | |||||||||||||||||||||
Other purchase commitments(3) | — | 2.1 | 0.6 | 0.1 | — | — | 2.8 | |||||||||||||||||||||
Other long-term liabilities(4) | 17.3 | — | — | — | — | — | 17.3 | |||||||||||||||||||||
NW Natural Total | 559.2 | 222.0 | 193.6 | 124.4 | 213.9 | 1,649.8 | 2,962.9 | |||||||||||||||||||||
NW Holdings | ||||||||||||||||||||||||||||
Short- and long-term obligations(5) | 0.4 | 0.3 | 0.3 | 0.3 | 0.3 | 1.4 | 3.0 | |||||||||||||||||||||
NW Holdings Total | $ | 559.6 | $ | 222.3 | $ | 193.9 | $ | 124.7 | $ | 214.2 | $ | 1,651.2 | $ | 2,965.9 |
In millions | |||||
Lender rating, by category | Loan Commitment | ||||
AA/Aa | $ | 200 | |||
Total | $ | 200 |
In millions | |||
Lender rating, by category | Loan Commitment | ||
AA/Aa | $ | 100 | |
A/A1 | — | ||
Total | $ | 100 |
In millions | |||||
Lender rating, by category | Loan Commitment | ||||
AA/Aa | $ | 400 | |||
Total | $ | 400 |
In millions | |||
Lender rating, by category | Loan Commitment | ||
AA/Aa | $ | 300 | |
A/A1 | — | ||
Total | $ | 300 |
S&P | Moody's | |||||||||||||
Commercial paper (short-term debt) | A-1 | P-2 | ||||||||||||
Senior secured (long-term debt) | AA- | |||||||||||||
Senior unsecured (long-term debt) | n/a | |||||||||||||
Corporate credit rating | A+ | n/a | ||||||||||||
Ratings outlook | Stable |
Year Ended December 31, | ||||||||||||||||||||
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
NW Natural First Mortgage Bonds: | ||||||||||||||||||||
Series 8.31% due 2019 | $ | — | $ | — | $ | 10 | ||||||||||||||
Series 7.63% due 2019 | — | — | 20 | |||||||||||||||||
Series 5.37% due 2020 | — | 75 | — | |||||||||||||||||
Series 9.05% due 2021 | 10 | — | — | |||||||||||||||||
Series 3.18% due 2021 | 50 | — | — | |||||||||||||||||
Total | $ | 60 | $ | 75 | $ | 30 |
Years Ended December 31, | ||||||||||||
In millions | 2018 | 2017 | 2016 | |||||||||
NW Natural First Mortgage Bonds | ||||||||||||
Series 5.15% due 2016 | $ | — | $ | — | $ | 25 | ||||||
Series 7.00% due 2017 | — | 40 | — | |||||||||
Series 6.60% due 2018 | 22 | — | — | |||||||||
Series 1.55% due 2018 | 75 | — | — | |||||||||
Total | $ | 97 | $ | 40 | $ | 25 |
In millions | Long-term debt maturities | Interest on long-term debt | ||||||||||||
NW Natural: | ||||||||||||||
2022 | $ | — | $ | 42.6 | ||||||||||
2023 | 90.0 | 41.7 | ||||||||||||
2024 | — | 38.6 | ||||||||||||
2025 | 30.0 | 38.0 | ||||||||||||
2026 | 55.0 | 36.0 | ||||||||||||
Thereafter | 819.7 | 513.9 | ||||||||||||
NW Natural Total | $ | 994.7 | $ | 710.8 | ||||||||||
Other NW Holdings: | ||||||||||||||
2022 | $ | 0.3 | $ | 0.8 | ||||||||||
2023 | 0.4 | 1.3 | ||||||||||||
2024 | 0.3 | 1.4 | ||||||||||||
2025 | 0.3 | 1.3 | ||||||||||||
2026 | 55.3 | 0.7 | ||||||||||||
Thereafter | 1.9 | 0.2 | ||||||||||||
Other NW Holdings Total | $ | 58.5 | $ | 5.7 | ||||||||||
NW Holdings: | ||||||||||||||
2022 | $ | 0.3 | $ | 43.4 | ||||||||||
2023 | 90.4 | 43.0 | ||||||||||||
2024 | 0.3 | 40.0 | ||||||||||||
2025 | 30.3 | 39.3 | ||||||||||||
2026 | 110.3 | 36.7 | ||||||||||||
Thereafter | 821.6 | 514.1 | ||||||||||||
NW Holdings Total | $ | 1,053.2 | $ | 716.5 |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
NW Natural cash provided by operating activities | $ | 141.5 | $ | 148.5 | $ | 186.9 | ||||||||||||||
NW Holdings cash provided by operating activities | $ | 160.4 | $ | 145.3 | $ | 186.0 |
NW Holdings | ||||||||||||
In millions | 2018 | 2017 | 2016 | |||||||||
Cash provided by operating activities | $ | 168.8 | $ | 206.7 | $ | 222.1 |
NW Natural | ||||||||||||
In millions | 2018 | 2017 | 2016 | |||||||||
Cash provided by operating activities | $ | 173.5 | $ | 206.5 | $ | 222.2 |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
NW Natural cash used in investing activities | $ | (275.7) | $ | (264.1) | $ | (243.1) | ||||||||||||||
NW Holdings cash used in investing activities | $ | (300.1) | $ | (294.3) | $ | (303.8) |
NW Holdings | ||||||||||||
In millions | 2018 | 2017 | 2016 | |||||||||
Total cash used in investing activities | $ | (217.5 | ) | $ | (214.2 | ) | $ | (136.6 | ) | |||
Capital expenditures | (214.6 | ) | (213.3 | ) | (138.4 | ) |
NW Natural | ||||||||||||
In millions | 2018 | 2017 | 2016 | |||||||||
Total cash used in investing activities | $ | (238.5 | ) | $ | (214.2 | ) | $ | (136.6 | ) | |||
Capital expenditures | (214.3 | ) | (213.3 | ) | (138.4 | ) |
One-Year Outlook | ||||||
2019 | ||||||
In millions | Low | High | ||||
NGD | ||||||
Core capital expenditures | $ | 150 | $ | 165 | ||
Significant projects: | ||||||
Growth & reliability | 15 | 25 | ||||
Facilities & technology | 42 | 57 | ||||
North Mist expansion | 18 | 18 | ||||
Total projects | 75 | 100 | ||||
Total NGD | 225 | 265 | ||||
Other | 5 | 5 | ||||
Total | $ | 230 | $ | 270 |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
NW Natural cash provided by financing activities | $ | 139.3 | $ | 122.4 | $ | 54.9 | ||||||||||||||
NW Holdings cash provided by financing activities | $ | 131.4 | $ | 171.8 | $ | 115.5 |
NW Holdings | ||||||||||||
In millions | 2018 | 2017 | 2016 | |||||||||
Total cash provided by (used in) financing activities | $ | 57.8 | $ | 7.4 | $ | (86.2 | ) | |||||
Change in short-term debt | 163.3 | 0.9 | (216.7 | ) | ||||||||
Change in long-term debt | (47.0 | ) | 60.0 | 125.0 | ||||||||
Change in common stock issued, net | — | — | 52.8 |
NW Natural | ||||||||||||
In millions | 2018 | 2017 | 2016 | |||||||||
Total cash provided by (used in) financing activities | $ | 69.8 | $ | 7.4 | $ | (86.2 | ) | |||||
Change in short-term debt | 163.3 | 0.9 | (216.7 | ) | ||||||||
Change in long-term debt | (47.0 | ) | 60.0 | 125.0 | ||||||||
Change in common stock issued, net | — | — | 52.8 |
2021 | ||||||||||||||
In millions | Up 1% | Down 1% | ||||||||||||
Unbilled revenue increase (decrease)(1) | $ | 1.2 | $ | (1.2) | ||||||||||
Margin increase (decrease)(1) | 0.4 | (0.4) | ||||||||||||
Net income before tax increase (decrease)(1) | 0.4 | (0.4) |
2018 | ||||||||
In millions | Up 1% | Down 1% | ||||||
Unbilled revenue increase (decrease)(1) | $ | 0.8 | $ | (0.8 | ) | |||
Margin increase (decrease)(1) | 0.1 | (0.1 | ) | |||||
Net income before tax increase (decrease)(1) | 0.1 | (0.1 | ) |
In millions | 2021 | 2020 | 2019 | |||||||||||||||||
NGD business net gain on commodity swaps | $ | 50.9 | $ | 2.3 | $ | 17.9 | ||||||||||||||
In millions | 2018 | 2017 | 2016 | |||||||||
NGD business net loss on: | ||||||||||||
Commodity Swaps | $ | 7.4 | $ | 7.8 | $ | 26.9 |
Dollars in millions | Change in Assumption | Impact on 2021 Retirement Benefit Costs | Impact on Retirement Benefit Obligations at Dec. 31, 2021 | |||||||||||||||||
Discount rate: | (0.25) | % | ||||||||||||||||||
Qualified defined benefit plans | $ | 1.8 | $ | 16.8 | ||||||||||||||||
Non-qualified plans | — | 0.8 | ||||||||||||||||||
Other postretirement benefits | 0.1 | 0.8 | ||||||||||||||||||
Expected long-term return on plan assets: | (0.25) | % | ||||||||||||||||||
Qualified defined benefit plans | 0.8 | N/A |
Dollars in millions | Change in Assumption | Impact on 2018 Retirement Benefit Costs | Impact on Retirement Benefit Obligations at Dec. 31, 2018 | ||||||||
Discount rate: | (0.25 | )% | |||||||||
Qualified defined benefit plans | $ | 1.5 | $ | 13.4 | |||||||
Non-qualified plans | 0.1 | 0.8 | |||||||||
Other postretirement benefits | — | 0.8 | |||||||||
Expected long-term return on plan assets: | (0.25 | )% | |||||||||
Qualified defined benefit plans | 0.7 | N/A |
Financial Derivative Position by Credit Rating Unrealized Fair Value Gain (Loss) | ||||||||||||||
In millions | 2021 | 2020 | ||||||||||||
AA/Aa | $ | 44.3 | $ | 11.2 | ||||||||||
A/A | 6.9 | 1.6 | ||||||||||||
Total | $ | 51.2 | $ | 12.8 |
Financial Derivative Position by Credit Rating Unrealized Fair Value Gain (Loss) | ||||||||
In millions | 2018 | 2017 | ||||||
AAA/Aaa | $ | — | $ | — | ||||
AA/Aa | $ | (6.3 | ) | $ | (9.0 | ) | ||
A/A | (1.5 | ) | (13.3 | ) | ||||
BBB/Baa | — | — | ||||||
Total | $ | (7.8 | ) | $ | (22.3 | ) |
Page | ||||||||
1. | ||||||||
2. | Reports of Independent Registered Public Accounting Firm (PCAOB ID 238) | |||||||
3. | Consolidated Financial Statements: | |||||||
4. | Supplementary Data for the Years Ended December 31, 2021, 2020, and 2019: | |||||||
Financial Statement Schedules | ||||||||
Page | ||
1. | ||
2. | ||
3. | Consolidated Financial Statements: | |
4. | ||
5. | Supplementary Data for the Years Ended December 31, 2018, 2017, and 2016: | |
Financial Statement Schedules | ||
NORTHWEST NATURAL HOLDING COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||
In thousands, except per share data | 2018 | 2017 | 2016 | In thousands, except per share data | 2021 | 2020 | 2019 | |||||||||||||||||||||||||
Operating revenues | $ | 706,143 | $ | 755,038 | $ | 668,173 | Operating revenues | $ | 860,400 | $ | 773,679 | $ | 746,372 | |||||||||||||||||||
Operating expenses: | Operating expenses: | |||||||||||||||||||||||||||||||
Cost of gas | 255,519 | 324,795 | 260,588 | Cost of gas | 292,314 | 262,755 | 254,911 | |||||||||||||||||||||||||
Operations and maintenance | 156,698 | 152,358 | 136,723 | Operations and maintenance | 204,227 | 180,129 | 178,191 | |||||||||||||||||||||||||
Environmental remediation | 11,127 | 15,291 | 13,298 | Environmental remediation | 9,938 | 9,691 | 12,337 | |||||||||||||||||||||||||
General taxes | 32,172 | 30,639 | 29,243 | General taxes | 38,633 | 35,078 | 32,388 | |||||||||||||||||||||||||
Revenue taxes | 30,082 | — | — | Revenue taxes | 34,740 | 30,291 | 30,325 | |||||||||||||||||||||||||
Depreciation and amortization | 85,156 | 81,053 | 77,604 | Depreciation and amortization | 113,534 | 103,683 | 91,496 | |||||||||||||||||||||||||
Other operating expenses | 3,227 | — | — | Other operating expenses | 3,897 | 3,701 | 3,250 | |||||||||||||||||||||||||
Total operating expenses | 573,981 | 604,136 | 517,456 | Total operating expenses | 697,283 | 625,328 | 602,898 | |||||||||||||||||||||||||
Income from operations | 132,162 | 150,902 | 150,717 | Income from operations | 163,117 | 148,351 | 143,474 | |||||||||||||||||||||||||
Other income (expense), net | (3,601 | ) | (295 | ) | (7,151 | ) | Other income (expense), net | (12,559) | (13,944) | (22,836) | ||||||||||||||||||||||
Interest expense, net | 37,059 | 37,526 | 38,136 | Interest expense, net | 44,486 | 43,052 | 42,685 | |||||||||||||||||||||||||
Income before income taxes | 91,502 | 113,081 | 105,430 | Income before income taxes | 106,072 | 91,355 | 77,953 | |||||||||||||||||||||||||
Income tax expense | 24,191 | 41,008 | 43,011 | Income tax expense | 27,406 | 21,082 | 12,642 | |||||||||||||||||||||||||
Net income from continuing operations | 67,311 | 72,073 | 62,419 | Net income from continuing operations | 78,666 | 70,273 | 65,311 | |||||||||||||||||||||||||
Loss from discontinued operations, net of tax | (2,742 | ) | (127,696 | ) | (3,524 | ) | ||||||||||||||||||||||||||
Net income (loss) | 64,569 | (55,623 | ) | 58,895 | ||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | Income (loss) from discontinued operations, net of tax | — | 6,508 | (3,576) | ||||||||||||||||||||||||||||
Net income | Net income | 78,666 | 76,781 | 61,735 | ||||||||||||||||||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | |||||||||||||||||||||||||||||||
Change in employee benefit plan liability, net of taxes of ($166) for 2018, $735 for 2017, and $452 for 2016 | 476 | (2,059 | ) | (744 | ) | |||||||||||||||||||||||||||
Amortization of non-qualified employee benefit plan liability, net of taxes of ($278) for 2018, ($374) for 2017, and ($624) for 2016 | 774 | 572 | 955 | |||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 65,819 | $ | (57,110 | ) | $ | 59,106 | |||||||||||||||||||||||||
Change in employee benefit plan liability, net of taxes of $(219) for 2021, $1,025 for 2020, and $956 for 2019 | Change in employee benefit plan liability, net of taxes of $(219) for 2021, $1,025 for 2020, and $956 for 2019 | 593 | (2,848) | (2,655) | ||||||||||||||||||||||||||||
Amortization of non-qualified employee benefit plan liability, net of taxes of $(320) for 2021, $(244) for 2020, and $(172) for 2019 | Amortization of non-qualified employee benefit plan liability, net of taxes of $(320) for 2021, $(244) for 2020, and $(172) for 2019 | 905 | 679 | 476 | ||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | $ | 80,164 | $ | 74,612 | $ | 59,556 | |||||||||||||||||||||||||
Average common shares outstanding: | Average common shares outstanding: | |||||||||||||||||||||||||||||||
Basic | 28,803 | 28,669 | 27,647 | Basic | 30,702 | 30,541 | 29,786 | |||||||||||||||||||||||||
Diluted | 28,873 | 28,753 | 27,779 | Diluted | 30,752 | 30,599 | 29,859 | |||||||||||||||||||||||||
Earnings from continuing operations per share of common stock: | Earnings from continuing operations per share of common stock: | |||||||||||||||||||||||||||||||
Basic | $ | 2.34 | $ | 2.51 | $ | 2.26 | Basic | $ | 2.56 | $ | 2.30 | $ | 2.19 | |||||||||||||||||||
Diluted | 2.33 | 2.51 | 2.25 | Diluted | 2.56 | 2.30 | 2.19 | |||||||||||||||||||||||||
Loss from discontinued operations per share of common stock: | ||||||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations per share of common stock: | Earnings (loss) from discontinued operations per share of common stock: | |||||||||||||||||||||||||||||||
Basic | $ | (0.10 | ) | $ | (4.45 | ) | $ | (0.13 | ) | Basic | $ | — | $ | 0.21 | $ | (0.12) | ||||||||||||||||
Diluted | (0.09 | ) | (4.44 | ) | (0.13 | ) | Diluted | — | 0.21 | (0.12) | ||||||||||||||||||||||
Earnings (loss) per share of common stock: | ||||||||||||||||||||||||||||||||
Earnings per share of common stock: | Earnings per share of common stock: | |||||||||||||||||||||||||||||||
Basic | $ | 2.24 | $ | (1.94 | ) | $ | 2.13 | Basic | $ | 2.56 | $ | 2.51 | $ | 2.07 | ||||||||||||||||||
Diluted | 2.24 | (1.93 | ) | 2.12 | Diluted | 2.56 | 2.51 | 2.07 |
NORTHWEST NATURAL HOLDING COMPANY CONSOLIDATED BALANCE SHEETS | ||||||||
As of December 31, | ||||||||
In thousands | 2018 | 2017 | ||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 12,633 | $ | 3,472 | ||||
Accounts receivable | 66,970 | 66,236 | ||||||
Accrued unbilled revenue | 57,827 | 62,381 | ||||||
Allowance for uncollectible accounts | (977 | ) | (956 | ) | ||||
Regulatory assets | 41,930 | 45,781 | ||||||
Derivative instruments | 9,001 | 1,735 | ||||||
Inventories | 44,149 | 47,577 | ||||||
Gas reserves | 16,647 | 15,704 | ||||||
Income taxes receivable | 6,000 | — | ||||||
Other current assets | 28,472 | 24,949 | ||||||
Discontinued operations - current assets | 13,269 | 3,057 | ||||||
Total current assets | 295,921 | 269,936 | ||||||
Non-current assets: | ||||||||
Property, plant, and equipment | 3,414,490 | 3,204,635 | ||||||
Less: Accumulated depreciation | 993,118 | 960,477 | ||||||
Total property, plant, and equipment, net | 2,421,372 | 2,244,158 | ||||||
Gas reserves | 66,197 | 84,053 | ||||||
Regulatory assets | 371,786 | 356,608 | ||||||
Derivative instruments | 725 | 1,306 | ||||||
Other investments | 63,558 | 66,363 | ||||||
Goodwill | 8,954 | — | ||||||
Other non-current assets | 14,149 | 6,505 | ||||||
Discontinued operations - non-current assets | — | 10,817 | ||||||
Total non-current assets | 2,946,741 | 2,769,810 | ||||||
Total assets | $ | 3,242,662 | $ | 3,039,746 |
As of December 31, | ||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||
Assets: | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 18,559 | $ | 30,168 | ||||||||||
Accounts receivable | 101,495 | 88,083 | ||||||||||||
Accrued unbilled revenue | 82,169 | 57,949 | ||||||||||||
Allowance for uncollectible accounts | (2,018) | (3,219) | ||||||||||||
Regulatory assets | 72,391 | 31,745 | ||||||||||||
Derivative instruments | 48,130 | 13,678 | ||||||||||||
Inventories | 57,262 | 42,691 | ||||||||||||
Income taxes receivable | — | 6,000 | ||||||||||||
Other current assets | 59,288 | 56,150 | ||||||||||||
Total current assets | 437,276 | 323,245 | ||||||||||||
Non-current assets: | ||||||||||||||
Property, plant, and equipment | 3,997,243 | 3,734,039 | ||||||||||||
Less: Accumulated depreciation | 1,125,873 | 1,079,269 | ||||||||||||
Total property, plant, and equipment, net | 2,871,370 | 2,654,770 | ||||||||||||
Regulatory assets | 314,579 | 348,927 | ||||||||||||
Derivative instruments | 10,730 | 6,135 | ||||||||||||
Other investments | 89,278 | 83,743 | ||||||||||||
Operating lease right of use asset, net | 75,049 | 77,446 | ||||||||||||
Assets under sales-type leases | 138,995 | 143,759 | ||||||||||||
Goodwill | 70,570 | 69,225 | ||||||||||||
Other non-current assets | 56,757 | 49,129 | ||||||||||||
Total non-current assets | 3,627,328 | 3,433,134 | ||||||||||||
Total assets | $ | 4,064,604 | $ | 3,756,379 |
NORTHWEST NATURAL HOLDING COMPANY CONSOLIDATED BALANCE SHEETS | ||||||||
As of December 31, | ||||||||
In thousands | 2018 | 2017 | ||||||
Liabilities and equity: | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 217,620 | $ | 54,200 | ||||
Current maturities of long-term debt | 29,989 | 96,703 | ||||||
Accounts payable | 115,878 | 111,021 | ||||||
Taxes accrued | 11,023 | 18,883 | ||||||
Interest accrued | 7,306 | 6,773 | ||||||
Regulatory liabilities | 47,436 | 34,013 | ||||||
Derivative instruments | 12,381 | 18,722 | ||||||
Other current liabilities | 54,492 | 39,942 | ||||||
Discontinued operations - current liabilities | 12,959 | 1,593 | ||||||
Total current liabilities | 509,084 | 381,850 | ||||||
Long-term debt | 706,247 | 683,184 | ||||||
Deferred credits and other non-current liabilities: | ||||||||
Deferred tax liabilities | 280,463 | 270,526 | ||||||
Regulatory liabilities | 611,560 | 586,093 | ||||||
Pension and other postretirement benefit liabilities | 221,886 | 223,333 | ||||||
Derivative instruments | 3,025 | 4,649 | ||||||
Other non-current liabilities | 147,763 | 135,292 | ||||||
Discontinued operations - non-current liabilities | — | 12,043 | ||||||
Total deferred credits and other non-current liabilities | 1,264,697 | 1,231,936 | ||||||
Commitments and contingencies (see Note 16 and Note 17) | ||||||||
Equity: | ||||||||
Common stock - no par value; authorized 100,000 shares; issued and outstanding 28,880 and 28,736 at December 31, 2018 and 2017, respectively | 457,640 | 448,865 | ||||||
Retained earnings | 312,182 | 302,349 | ||||||
Accumulated other comprehensive loss | (7,188 | ) | (8,438 | ) | ||||
Total equity | 762,634 | 742,776 | ||||||
Total liabilities and equity | $ | 3,242,662 | $ | 3,039,746 |
As of December 31, | ||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||
Liabilities and equity: | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term debt | $ | 389,500 | $ | 304,525 | ||||||||||
Current maturities of long-term debt | 345 | 95,344 | ||||||||||||
Accounts payable | 133,486 | 97,966 | ||||||||||||
Taxes accrued | 15,520 | 13,812 | ||||||||||||
Interest accrued | 7,503 | 7,441 | ||||||||||||
Regulatory liabilities | 112,281 | 50,362 | ||||||||||||
Derivative instruments | 10,402 | 4,198 | ||||||||||||
Operating lease liabilities | 1,296 | 1,105 | ||||||||||||
Other current liabilities | 54,432 | 52,330 | ||||||||||||
Total current liabilities | 724,765 | 627,083 | ||||||||||||
Long-term debt | 1,044,587 | 860,081 | ||||||||||||
Deferred credits and other non-current liabilities: | ||||||||||||||
Deferred tax liabilities | 340,231 | 319,292 | ||||||||||||
Regulatory liabilities | 658,332 | 639,663 | ||||||||||||
Pension and other postretirement benefit liabilities | 166,684 | 217,287 | ||||||||||||
Derivative instruments | 412 | 2,852 | ||||||||||||
Operating lease liabilities | 79,468 | 80,621 | ||||||||||||
Other non-current liabilities | 114,979 | 120,767 | ||||||||||||
Total deferred credits and other non-current liabilities | 1,360,106 | 1,380,482 | ||||||||||||
Commitments and contingencies (see Note 16 and Note 17) | 0 | 0 | ||||||||||||
Equity: | ||||||||||||||
Common stock - no par value; authorized 100,000 shares; issued and outstanding 31,129 and 30,589 at December 31, 2021 and 2020, respectively | 590,771 | 565,112 | ||||||||||||
Retained earnings | 355,779 | 336,523 | ||||||||||||
Accumulated other comprehensive loss | (11,404) | (12,902) | ||||||||||||
Total equity | 935,146 | 888,733 | ||||||||||||
Total liabilities and equity | $ | 4,064,604 | $ | 3,756,379 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity | |||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 457,640 | $ | 312,182 | $ | (7,188) | $ | 762,634 | ||||||||||||||||||
Comprehensive income (loss) | — | 61,735 | (2,179) | 59,556 | ||||||||||||||||||||||
Dividends on common stock, $1.90 per share | — | (56,833) | — | (56,833) | ||||||||||||||||||||||
Stock-based compensation | 2,601 | — | — | 2,601 | ||||||||||||||||||||||
Shares issued pursuant to equity based plans | 5,085 | — | — | 5,085 | ||||||||||||||||||||||
Issuance of common stock, net of issuance costs | 92,956 | — | — | 92,956 | ||||||||||||||||||||||
Reclassification of tax effects from the TCJA | — | 1,366 | (1,366) | — | ||||||||||||||||||||||
Balance at December 31, 2019 | 558,282 | 318,450 | (10,733) | 865,999 | ||||||||||||||||||||||
Comprehensive income (loss) | — | 76,781 | (2,169) | 74,612 | ||||||||||||||||||||||
Dividends on common stock, $1.91 per share | — | (58,708) | — | (58,708) | ||||||||||||||||||||||
Stock-based compensation | 4,361 | — | — | 4,361 | ||||||||||||||||||||||
Shares issued pursuant to equity based plans | 2,469 | — | — | 2,469 | ||||||||||||||||||||||
Balance at December 31, 2020 | 565,112 | 336,523 | (12,902) | 888,733 | ||||||||||||||||||||||
Comprehensive income (loss) | — | 78,666 | 1,498 | 80,164 | ||||||||||||||||||||||
Dividends on common stock, $1.92 per share | — | (59,410) | — | (59,410) | ||||||||||||||||||||||
Stock-based compensation | 3,615 | — | — | 3,615 | ||||||||||||||||||||||
Shares issued pursuant to equity based plans | 4,543 | — | — | 4,543 | ||||||||||||||||||||||
Issuance of common stock, net of issuance costs | 17,501 | — | — | 17,501 | ||||||||||||||||||||||
Balance at December 31, 2021 | $ | 590,771 | $ | 355,779 | $ | (11,404) | $ | 935,146 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity | |||||||||||||
In thousands | ||||||||||||||||
Balance at December 31, 2015 | $ | 383,144 | $ | 404,990 | $ | (7,162 | ) | $ | 780,972 | |||||||
Comprehensive income | — | 58,895 | 211 | 59,106 | ||||||||||||
Dividends on common stock, $1.87 per share | — | (51,624 | ) | — | (51,624 | ) | ||||||||||
Stock-based compensation | 2,924 | — | — | 2,924 | ||||||||||||
Shares issued pursuant to equity based plans | 6,358 | — | — | 6,358 | ||||||||||||
Issuance of common stock, net of issuance costs | 52,761 | — | — | 52,761 | ||||||||||||
Balance at December 31, 2016 | 445,187 | 412,261 | (6,951 | ) | 850,497 | |||||||||||
Comprehensive income (loss) | — | (55,623 | ) | (1,487 | ) | (57,110 | ) | |||||||||
Dividends on common stock, $1.88 per share | — | (54,289 | ) | — | (54,289 | ) | ||||||||||
Stock-based compensation | 2,882 | — | — | 2,882 | ||||||||||||
Shares issued pursuant to equity based plans | 796 | — | — | 796 | ||||||||||||
Balance at December 31, 2017 | 448,865 | 302,349 | (8,438 | ) | 742,776 | |||||||||||
Comprehensive income | — | 64,569 | 1,250 | 65,819 | ||||||||||||
Dividends on common stock, $1.89 per share | — | (54,736 | ) | — | (54,736 | ) | ||||||||||
Stock-based compensation | 3,020 | — | — | 3,020 | ||||||||||||
Shares issued pursuant to equity based plans | 5,175 | — | — | 5,175 | ||||||||||||
Cash purchase of shares for business combination | (7,945 | ) | — | — | (7,945 | ) | ||||||||||
Value of shares transferred for business combination | 8,525 | — | — | 8,525 | ||||||||||||
Balance at December 31, 2018 | $ | 457,640 | $ | 312,182 | $ | (7,188 | ) | $ | 762,634 |
Year Ended December 31, | ||||||||||||||||||||
In thousands | 2021 | 2020 | 2019 | |||||||||||||||||
Operating activities: | ||||||||||||||||||||
Net income | $ | 78,666 | $ | 76,781 | $ | 61,735 | ||||||||||||||
Adjustments to reconcile net income to cash provided by operations: | ||||||||||||||||||||
Depreciation and amortization | 113,534 | 103,683 | 91,496 | |||||||||||||||||
Regulatory amortization of gas reserves | 13,897 | 17,779 | 19,172 | |||||||||||||||||
Deferred income taxes | 14,617 | 18,667 | 6,317 | |||||||||||||||||
Qualified defined benefit pension plan expense | 16,556 | 18,370 | 16,497 | |||||||||||||||||
Contributions to qualified defined benefit pension plans | (9,590) | (28,980) | (10,970) | |||||||||||||||||
Deferred environmental expenditures, net | (18,187) | (27,871) | (16,226) | |||||||||||||||||
Environmental remediation expense | 9,938 | 9,691 | 12,337 | |||||||||||||||||
Regulatory disallowance of pension costs | — | — | 10,500 | |||||||||||||||||
Gain on sale of discontinued operations, net of tax | — | (5,902) | — | |||||||||||||||||
Other | 11,569 | (6,942) | 14,760 | |||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Receivables, net | (44,128) | (16,799) | 5,844 | |||||||||||||||||
Inventories | (14,571) | 1,262 | (5,969) | |||||||||||||||||
Income and other taxes | 3,292 | (10,710) | 4,528 | |||||||||||||||||
Accounts payable | 12,118 | (15,910) | (16,485) | |||||||||||||||||
Deferred gas costs | (40,541) | 17,590 | (23,471) | |||||||||||||||||
Asset optimization revenue sharing | 44,458 | (7,244) | 655 | |||||||||||||||||
Decoupling mechanism | (5,206) | 2,884 | 18,661 | |||||||||||||||||
Other, net | (26,069) | (2,925) | (4,080) | |||||||||||||||||
Discontinued operations | — | 1,894 | 712 | |||||||||||||||||
Cash provided by operating activities | 160,353 | 145,318 | 186,013 | |||||||||||||||||
Investing activities: | ||||||||||||||||||||
Capital expenditures | (293,892) | (273,016) | (223,471) | |||||||||||||||||
Acquisitions, net of cash acquired | (1,289) | (38,263) | (56,786) | |||||||||||||||||
Leasehold improvement expenditures | (1,364) | (7,878) | (18,812) | |||||||||||||||||
Proceeds from the sale of assets | 3,926 | 8,149 | 659 | |||||||||||||||||
Purchase of equity method investment | (14,450) | — | — | |||||||||||||||||
Proceeds from sale of equity method investment | 7,000 | 7,000 | — | |||||||||||||||||
Proceeds from sale of discontinued operations | — | 12,500 | — | |||||||||||||||||
Other | (54) | 1,654 | (3,544) | |||||||||||||||||
Discontinued operations | — | (4,423) | (1,827) | |||||||||||||||||
Cash used in investing activities | (300,123) | (294,277) | (303,781) |
NORTHWEST NATURAL HOLDING COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
Year Ended December 31, | ||||||||||||
In thousands | 2018 | 2017 | 2016 | |||||||||
Operating activities: | ||||||||||||
Net income (loss) | $ | 64,569 | $ | (55,623 | ) | $ | 58,895 | |||||
Adjustments to reconcile net income (loss) to cash provided by operations: | ||||||||||||
Depreciation and amortization | 85,156 | 81,053 | 77,604 | |||||||||
Regulatory amortization of gas reserves | 16,684 | 16,353 | 15,525 | |||||||||
Deferred income taxes | 14,356 | (52,414 | ) | 32,056 | ||||||||
Qualified defined benefit pension plan expense | 8,108 | 5,364 | 5,274 | |||||||||
Contributions to qualified defined benefit pension plans | (15,540 | ) | (19,430 | ) | (14,470 | ) | ||||||
Deferred environmental expenditures, net | (14,528 | ) | (13,716 | ) | (10,469 | ) | ||||||
Regulatory disallowance of prior environmental cost deferrals | — | — | 3,287 | |||||||||
Amortization of environmental remediation | 11,127 | 15,291 | 13,298 | |||||||||
Regulatory revenue deferral from the TCJA | 7,929 | — | — | |||||||||
Other | 1,596 | 2,102 | 2,846 | |||||||||
Changes in assets and liabilities: | ||||||||||||
Receivables, net | 181 | 3,282 | (6,395 | ) | ||||||||
Inventories | 3,207 | 5,600 | 16,565 | |||||||||
Income and other taxes | (16,904 | ) | 6,734 | 9,467 | ||||||||
Accounts payable | 16,792 | 1,092 | 12,028 | |||||||||
Interest accrued | 526 | 807 | 93 | |||||||||
Deferred gas costs | (14,395 | ) | 17,122 | (10,204 | ) | |||||||
Other, net | 552 | (4,093 | ) | 11,727 | ||||||||
Discontinued operations | (645 | ) | 197,180 | 5,020 | ||||||||
Cash provided by operating activities | 168,771 | 206,704 | 222,147 | |||||||||
Investing activities: | ||||||||||||
Capital expenditures | (214,636 | ) | (213,325 | ) | (138,357 | ) | ||||||
Other | (3,390 | ) | (577 | ) | 2,882 | |||||||
Discontinued operations | 573 | (270 | ) | (1,154 | ) | |||||||
Cash used in investing activities | (217,453 | ) | (214,172 | ) | (136,629 | ) | ||||||
Financing activities: | ||||||||||||
Repurchases related to stock-based compensation | — | (2,034 | ) | (1,042 | ) | |||||||
Proceeds from stock options exercised | 1,546 | 4,819 | 8,404 | |||||||||
Proceeds from common stock issued | — | — | 52,760 | |||||||||
Long-term debt issued | 50,000 | 100,000 | 150,000 | |||||||||
Long-term debt retired | (97,000 | ) | (40,000 | ) | (25,000 | ) | ||||||
Change in short-term debt | 163,274 | 900 | (216,735 | ) | ||||||||
Cash dividend payments on common stock | (51,311 | ) | (53,957 | ) | (51,508 | ) | ||||||
Stock purchases related to acquisitions | (7,951 | ) | — | — | ||||||||
Other | (715 | ) | (2,309 | ) | (3,087 | ) | ||||||
Cash provided by (used in) financing activities | 57,843 | 7,419 | (86,208 | ) | ||||||||
Increase (decrease) in cash and cash equivalents | 9,161 | (49 | ) | (690 | ) | |||||||
Cash and cash equivalents, beginning of period | 3,472 | 3,521 | 4,211 | |||||||||
Cash and cash equivalents, end of period | $ | 12,633 | $ | 3,472 | $ | 3,521 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Interest paid, net of capitalization | $ | 35,324 | $ | 34,787 | $ | 36,023 | ||||||
Income taxes paid (refunded) | 27,370 | 14,780 | (7,157 | ) |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Financing activities: | ||||||||||||||||||||
Proceeds from common stock issued, net | 17,501 | — | 92,956 | |||||||||||||||||
Long-term debt issued | 185,000 | 150,000 | 175,000 | |||||||||||||||||
Long-term debt retired | (95,000) | (75,000) | (30,000) | |||||||||||||||||
Proceeds from term loan due within one year | 100,000 | 150,000 | — | |||||||||||||||||
Repayment of term loan | (100,000) | (150,000) | — | |||||||||||||||||
Proceeds from commercial paper, maturities greater than three months | — | 195,025 | — | |||||||||||||||||
Repayments of commercial paper, maturities greater than three months | (195,025) | — | — | |||||||||||||||||
Changes in other short-term debt, net | 280,000 | (39,600) | (68,520) | |||||||||||||||||
Cash dividend payments on common stock | (55,919) | (55,420) | (53,339) | |||||||||||||||||
Other | (5,121) | (3,228) | (599) | |||||||||||||||||
Cash provided by financing activities | 131,436 | 171,777 | 115,498 | |||||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (8,334) | 22,818 | (2,270) | |||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 35,454 | 12,636 | 14,906 | |||||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 27,120 | $ | 35,454 | $ | 12,636 | ||||||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||||||
Interest paid, net of capitalization | $ | 43,719 | $ | 42,651 | $ | 41,231 | ||||||||||||||
Income taxes paid (refunded) | 10,555 | 13,644 | (96) |
NORTHWEST NATURAL GAS COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||
Year Ended December 31, | ||||||||||||
In thousands | 2018 | 2017 | 2016 | |||||||||
Operating revenues | $ | 705,571 | $ | 755,038 | $ | 667,949 | ||||||
Operating expenses: | ||||||||||||
Cost of gas | 255,743 | 325,019 | 260,588 | |||||||||
Operations and maintenance | 155,225 | 152,180 | 135,979 | |||||||||
Environmental remediation | 11,127 | 15,291 | 13,298 | |||||||||
General taxes | 32,086 | 30,602 | 29,222 | |||||||||
Revenue taxes | 30,082 | — | — | |||||||||
Depreciation and amortization | 84,986 | 81,024 | 77,575 | |||||||||
Other operating expenses | 3,223 | — | — | |||||||||
Total operating expenses | 572,472 | 604,116 | 516,662 | |||||||||
Income from operations | 133,099 | 150,922 | 151,287 | |||||||||
Other income (expense), net | (3,599 | ) | (198 | ) | (7,041 | ) | ||||||
Interest expense, net | 36,992 | 37,526 | 38,136 | |||||||||
Income before income taxes | 92,508 | 113,198 | 106,110 | |||||||||
Income tax expense | 24,459 | 41,478 | 43,275 | |||||||||
Net income from continuing operations | 68,049 | 71,720 | 62,835 | |||||||||
Loss from discontinued operations, net of tax | (1,723 | ) | (127,343 | ) | (3,940 | ) | ||||||
Net income (loss) | 66,326 | (55,623 | ) | 58,895 | ||||||||
Other comprehensive income (loss): | ||||||||||||
Change in employee benefit plan liability, net of taxes of ($166) for 2018, $735 for 2017, and $452 for 2016 | 476 | (2,059 | ) | (744 | ) | |||||||
Amortization of non-qualified employee benefit plan liability, net of taxes of ($278) for 2018, ($374) for 2017, and ($624) for 2016 | 774 | 572 | 955 | |||||||||
Comprehensive income (loss) | $ | 67,576 | $ | (57,110 | ) | $ | 59,106 |
Year Ended December 31, | ||||||||||||||||||||
In thousands | 2021 | 2020 | 2019 | |||||||||||||||||
Operating revenues | $ | 843,057 | $ | 758,748 | $ | 739,944 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Cost of gas | 292,538 | 262,980 | 255,135 | |||||||||||||||||
Operations and maintenance | 188,762 | 168,869 | 169,091 | |||||||||||||||||
Environmental remediation | 9,938 | 9,691 | 12,337 | |||||||||||||||||
General taxes | 38,150 | 34,459 | 32,075 | |||||||||||||||||
Revenue taxes | 34,600 | 30,291 | 30,325 | |||||||||||||||||
Depreciation and amortization | 110,504 | 101,586 | 90,405 | |||||||||||||||||
Other operating expenses | 3,332 | 3,232 | 3,230 | |||||||||||||||||
Total operating expenses | 677,824 | 611,108 | 592,598 | |||||||||||||||||
Income from operations | 165,233 | 147,640 | 147,346 | |||||||||||||||||
Other income (expense), net | (12,745) | (15,116) | (22,968) | |||||||||||||||||
Interest expense, net | 42,983 | 40,866 | 41,339 | |||||||||||||||||
Income before income taxes | 109,505 | 91,658 | 83,039 | |||||||||||||||||
Income tax expense | 28,333 | 21,095 | 14,065 | |||||||||||||||||
Net income | 81,172 | 70,563 | 68,974 | |||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Change in employee benefit plan liability, net of taxes of $(219) for 2021, $1,025 for 2020, and $956 for 2019 | 593 | (2,848) | (2,655) | |||||||||||||||||
Amortization of non-qualified employee benefit plan liability, net of taxes of $(320) for 2021, $(244) for 2020, and $(172) for 2019 | 905 | 679 | 476 | |||||||||||||||||
Comprehensive income | $ | 82,670 | $ | 68,394 | $ | 66,795 |
NORTHWEST NATURAL GAS COMPANY CONSOLIDATED BALANCE SHEETS | ||||||||
As of December 31, | ||||||||
In thousands | 2018 | 2017 | ||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 7,947 | $ | 3,110 | ||||
Accounts receivable | 66,824 | 66,236 | ||||||
Accrued unbilled revenue | 57,773 | 62,381 | ||||||
Receivables from affiliates | 4,166 | 266 | ||||||
Allowance for uncollectible accounts | (975 | ) | (956 | ) | ||||
Regulatory assets | 41,930 | 45,781 | ||||||
Derivative instruments | 9,001 | 1,735 | ||||||
Inventories | 44,126 | 47,577 | ||||||
Gas reserves | 16,647 | 15,704 | ||||||
Other current assets | 25,347 | 24,862 | ||||||
Discontinued operations - current assets | — | 7,170 | ||||||
Total current assets | 272,786 | 273,866 | ||||||
Non-current assets: | ||||||||
Property, plant, and equipment | 3,410,439 | 3,204,260 | ||||||
Less: Accumulated depreciation | 992,855 | 960,285 | ||||||
Total property, plant, and equipment, net | 2,417,584 | 2,243,975 | ||||||
Gas reserves | 66,197 | 84,053 | ||||||
Regulatory assets | 371,786 | 356,608 | ||||||
Derivative instruments | 725 | 1,306 | ||||||
Other investments | 49,922 | 52,654 | ||||||
Other non-current assets | 13,736 | 6,505 | ||||||
Discontinued operations - non-current assets | — | 24,709 | ||||||
Total non-current assets | 2,919,950 | 2,769,810 | ||||||
Total assets | $ | 3,192,736 | $ | 3,043,676 |
As of December 31, | ||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||
Assets: | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 12,271 | $ | 10,453 | ||||||||||
Accounts receivable | 99,780 | 80,035 | ||||||||||||
Accrued unbilled revenue | 82,028 | 57,890 | ||||||||||||
Receivables from affiliates | 261 | 660 | ||||||||||||
Allowance for uncollectible accounts | (1,962) | (3,107) | ||||||||||||
Regulatory assets | 72,391 | 31,745 | ||||||||||||
Derivative instruments | 48,130 | 13,678 | ||||||||||||
Inventories | 56,752 | 42,325 | ||||||||||||
Other current assets | 47,378 | 49,318 | ||||||||||||
Total current assets | 417,029 | 282,997 | ||||||||||||
Non-current assets: | ||||||||||||||
Property, plant, and equipment | 3,931,640 | 3,683,776 | ||||||||||||
Less: Accumulated depreciation | 1,119,361 | 1,075,446 | ||||||||||||
Total property, plant, and equipment, net | 2,812,279 | 2,608,330 | ||||||||||||
Regulatory assets | 314,539 | 348,887 | ||||||||||||
Derivative instruments | 10,730 | 6,135 | ||||||||||||
Other investments | 74,786 | 83,726 | ||||||||||||
Operating lease right of use asset, net | 74,987 | 77,328 | ||||||||||||
Assets under sales-type leases | 138,995 | 143,759 | ||||||||||||
Other non-current assets | 55,027 | 48,174 | ||||||||||||
Total non-current assets | 3,481,343 | 3,316,339 | ||||||||||||
Total assets | $ | 3,898,372 | $ | 3,599,336 |
NORTHWEST NATURAL GAS COMPANY CONSOLIDATED BALANCE SHEETS | ||||||||
As of December 31, | ||||||||
In thousands | 2018 | 2017 | ||||||
Liabilities and equity: | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 217,500 | $ | 54,200 | ||||
Current maturities of long-term debt | 29,989 | 96,703 | ||||||
Accounts payable | 114,937 | 110,354 | ||||||
Payables to affiliates | 523 | 3,664 | ||||||
Taxes accrued | 10,990 | 18,844 | ||||||
Interest accrued | 7,273 | 6,773 | ||||||
Regulatory liabilities | 47,436 | 34,013 | ||||||
Derivative instruments | 12,381 | 18,722 | ||||||
Other current liabilities | 53,027 | 39,942 | ||||||
Discontinued operations - current liabilities | — | 2,565 | ||||||
Total current liabilities | 494,056 | 385,780 | ||||||
Long-term debt | 704,134 | 683,184 | ||||||
Deferred credits and other non-current liabilities: | ||||||||
Deferred tax liabilities | 294,739 | 287,388 | ||||||
Regulatory liabilities | 611,560 | 586,093 | ||||||
Pension and other postretirement benefit liabilities | 221,886 | 223,333 | ||||||
Derivative instruments | 3,025 | 4,649 | ||||||
Other non-current liabilities | 147,668 | 135,205 | ||||||
Discontinued operations - non-current liabilities | — | (4,732 | ) | |||||
Total deferred credits and other non-current liabilities | 1,278,878 | 1,231,936 | ||||||
Commitments and contingencies (see Note 16 and Note 17) | ||||||||
Equity: | ||||||||
Common stock | 226,452 | 448,865 | ||||||
Retained earnings | 496,404 | 302,349 | ||||||
Accumulated other comprehensive loss | (7,188 | ) | (8,438 | ) | ||||
Total equity | 715,668 | 742,776 | ||||||
Total liabilities and equity | $ | 3,192,736 | $ | 3,043,676 |
As of December 31, | ||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||
Liabilities and equity: | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term debt | $ | 245,500 | $ | 231,525 | ||||||||||
Current maturities of long-term debt | — | 59,955 | ||||||||||||
Accounts payable | 131,475 | 95,170 | ||||||||||||
Payables to affiliates | 1,248 | 13,820 | ||||||||||||
Taxes accrued | 15,476 | 13,724 | ||||||||||||
Interest accrued | 7,296 | 7,338 | ||||||||||||
Regulatory liabilities | 112,281 | 50,362 | ||||||||||||
Derivative instruments | 10,402 | 4,198 | ||||||||||||
Operating lease liabilities | 1,273 | 1,054 | ||||||||||||
Other current liabilities | 53,591 | 51,907 | ||||||||||||
Total current liabilities | 578,542 | 529,053 | ||||||||||||
Long-term debt | 986,495 | 857,265 | ||||||||||||
Deferred credits and other non-current liabilities: | ||||||||||||||
Deferred tax liabilities | 337,717 | 318,034 | ||||||||||||
Regulatory liabilities | 657,350 | 638,793 | ||||||||||||
Pension and other postretirement benefit liabilities | 166,684 | 217,287 | ||||||||||||
Derivative instruments | 412 | 2,852 | ||||||||||||
Operating lease liabilities | 79,431 | 80,559 | ||||||||||||
Other non-current liabilities | 113,934 | 120,309 | ||||||||||||
Total deferred credits and other non-current liabilities | 1,355,528 | 1,377,834 | ||||||||||||
Commitments and contingencies (see Note 16 and Note 17) | 0 | 0 | ||||||||||||
Equity: | ||||||||||||||
Common stock | 435,515 | 319,506 | ||||||||||||
Retained earnings | 553,696 | 528,580 | ||||||||||||
Accumulated other comprehensive loss | (11,404) | (12,902) | ||||||||||||
Total equity | 977,807 | 835,184 | ||||||||||||
Total liabilities and equity | $ | 3,898,372 | $ | 3,599,336 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity | |||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 226,452 | $ | 496,404 | $ | (7,188) | $ | 715,668 | ||||||||||||||||||
Comprehensive income (loss) | — | 68,974 | (2,179) | 66,795 | ||||||||||||||||||||||
Dividends on common stock | — | (53,372) | — | (53,372) | ||||||||||||||||||||||
Capital contribution from parent | 93,105 | — | — | 93,105 | ||||||||||||||||||||||
Reclassification of tax effects from the TCJA | — | 1,366 | (1,366) | — | ||||||||||||||||||||||
Balance at December 31, 2019 | 319,557 | 513,372 | (10,733) | 822,196 | ||||||||||||||||||||||
Comprehensive income (loss) | — | 70,563 | (2,169) | 68,394 | ||||||||||||||||||||||
Dividends on common stock | — | (55,355) | — | (55,355) | ||||||||||||||||||||||
Other | (51) | — | — | (51) | ||||||||||||||||||||||
Balance at December 31, 2020 | 319,506 | 528,580 | (12,902) | 835,184 | ||||||||||||||||||||||
Comprehensive income (loss) | — | 81,172 | 1,498 | 82,670 | ||||||||||||||||||||||
Dividends on common stock | — | (56,056) | — | (56,056) | ||||||||||||||||||||||
Capital contributions from parent | 116,009 | — | — | 116,009 | ||||||||||||||||||||||
Balance at December 31, 2021 | $ | 435,515 | $ | 553,696 | $ | (11,404) | $ | 977,807 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity | |||||||||||||
In thousands | ||||||||||||||||
Balance at December 31, 2015 | $ | 383,144 | $ | 404,990 | $ | (7,162 | ) | $ | 780,972 | |||||||
Comprehensive income | — | 58,895 | 211 | 59,106 | ||||||||||||
Dividends on common stock | — | (51,624 | ) | — | (51,624 | ) | ||||||||||
Stock-based compensation | 2,924 | — | — | 2,924 | ||||||||||||
Shares issued pursuant to equity based plans | 6,358 | — | — | 6,358 | ||||||||||||
Issuance of common stock, net of issuance costs | 52,761 | — | — | 52,761 | ||||||||||||
Balance at December 31, 2016 | 445,187 | 412,261 | (6,951 | ) | 850,497 | |||||||||||
Comprehensive income (loss) | — | (55,623 | ) | (1,487 | ) | (57,110 | ) | |||||||||
Dividends on common stock | — | (54,289 | ) | — | (54,289 | ) | ||||||||||
Stock-based compensation | 2,882 | — | — | 2,882 | ||||||||||||
Shares issued pursuant to equity based plans | 796 | — | — | 796 | ||||||||||||
Balance at December 31, 2017 | 448,865 | 302,349 | (8,438 | ) | 742,776 | |||||||||||
Comprehensive income | — | 66,326 | 1,250 | 67,576 | ||||||||||||
Dividends on common stock | — | (41,035 | ) | — | (41,035 | ) | ||||||||||
Stock-based compensation(1) | 2,161 | — | — | 2,161 | ||||||||||||
Shares issued pursuant to equity based plans(1) | 3,075 | — | — | 3,075 | ||||||||||||
Transfer of investments to NW Holdings as of October 1, 2018 | (227,649 | ) | 168,764 | — | (58,885 | ) | ||||||||||
Balance at December 31, 2018 | $ | 226,452 | $ | 496,404 | $ | (7,188 | ) | $ | 715,668 |
NORTHWEST NATURAL GAS COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
Year Ended December 31, | ||||||||||||
In thousands | 2018 | 2017 | 2016 | |||||||||
Operating activities: | ||||||||||||
Net income (loss) | $ | 66,326 | $ | (55,623 | ) | $ | 58,895 | |||||
Adjustments to reconcile net income (loss) to cash provided by operations: | ||||||||||||
Depreciation and amortization | 84,986 | 81,024 | 77,575 | |||||||||
Regulatory amortization of gas reserves | 16,684 | 16,353 | 15,525 | |||||||||
Deferred income taxes | 12,330 | 15,894 | 30,772 | |||||||||
Qualified defined benefit pension plan expense | 8,108 | 5,364 | 5,274 | |||||||||
Contributions to qualified defined benefit pension plans | (15,540 | ) | (19,430 | ) | (14,470 | ) | ||||||
Deferred environmental expenditures, net | (14,528 | ) | (13,716 | ) | (10,469 | ) | ||||||
Regulatory disallowance of prior environmental cost deferrals | — | — | 3,287 | |||||||||
Amortization of environmental remediation | 11,127 | 15,291 | 13,298 | |||||||||
Regulatory revenue deferral from the TCJA | 7,929 | — | — | |||||||||
Other | 883 | 2,003 | 2,745 | |||||||||
Changes in assets and liabilities: | ||||||||||||
Receivables, net | (3,920 | ) | 3,215 | (6,319 | ) | |||||||
Inventories | 3,212 | 5,601 | 16,565 | |||||||||
Income and other taxes | (7,854 | ) | 6,730 | 9,467 | ||||||||
Accounts payable | 13,937 | 3,332 | 10,822 | |||||||||
Interest accrued | 500 | 807 | 93 | |||||||||
Deferred gas costs | (14,395 | ) | 17,122 | (10,204 | ) | |||||||
Other, net | 539 | (3,855 | ) | 12,342 | ||||||||
Discontinued operations | 3,184 | 126,371 | 7,041 | |||||||||
Cash provided by operating activities | 173,508 | 206,483 | 222,239 | |||||||||
Investing activities: | ||||||||||||
Capital expenditures | (214,328 | ) | (213,325 | ) | (138,357 | ) | ||||||
Other | (3,517 | ) | (577 | ) | 2,882 | |||||||
Discontinued operations | (20,617 | ) | (270 | ) | (1,154 | ) | ||||||
Cash used in investing activities | (238,462 | ) | (214,172 | ) | (136,629 | ) | ||||||
Financing activities: | ||||||||||||
Repurchases related to stock-based compensation | — | (2,034 | ) | (1,042 | ) | |||||||
Proceeds from stock options exercised | 1,368 | 4,819 | 8,404 | |||||||||
Proceeds from common stock issued | — | — | 52,760 | |||||||||
Long-term debt issued | 50,000 | 100,000 | 150,000 | |||||||||
Long-term debt retired | (97,000 | ) | (40,000 | ) | (25,000 | ) | ||||||
Change in short-term debt | 163,300 | 900 | (216,735 | ) | ||||||||
Cash dividend payments on common stock | (38,387 | ) | (53,957 | ) | (51,508 | ) | ||||||
Other | (1,539 | ) | (2,309 | ) | (3,087 | ) | ||||||
Discontinued operations | (7,951 | ) | — | — | ||||||||
Cash provided by (used in) financing activities | 69,791 | 7,419 | (86,208 | ) | ||||||||
Increase (decrease) in cash and cash equivalents | 4,837 | (270 | ) | (598 | ) | |||||||
Cash and cash equivalents, beginning of period | 3,110 | 3,380 | 3,978 | |||||||||
Cash and cash equivalents, end of period | $ | 7,947 | $ | 3,110 | $ | 3,380 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Interest paid, net of capitalization | $ | 35,305 | $ | 34,787 | $ | 36,023 | ||||||
Income taxes paid (refunded) | 27,350 | 14,780 | (7,157 | ) |
Year Ended December 31, | ||||||||||||||||||||
In thousands | 2021 | 2020 | 2019 | |||||||||||||||||
Operating activities: | ||||||||||||||||||||
Net income | $ | 81,172 | $ | 70,563 | $ | 68,974 | ||||||||||||||
Adjustments to reconcile net income to cash provided by operations: | ||||||||||||||||||||
Depreciation and amortization | 110,504 | 101,586 | 90,405 | |||||||||||||||||
Regulatory amortization of gas reserves | 13,897 | 17,779 | 19,172 | |||||||||||||||||
Deferred income taxes | 13,223 | 4,645 | 4,046 | |||||||||||||||||
Qualified defined benefit pension plan expense | 16,556 | 18,370 | 16,497 | |||||||||||||||||
Contributions to qualified defined benefit pension plans | (9,590) | (28,980) | (10,970) | |||||||||||||||||
Deferred environmental expenditures, net | (18,187) | (27,871) | (16,226) | |||||||||||||||||
Environmental remediation expense | 9,938 | 9,691 | 12,337 | |||||||||||||||||
Regulatory disallowance of pension costs | — | — | 10,500 | |||||||||||||||||
Other | 9,464 | (7,025) | 13,170 | |||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Receivables, net | (43,030) | (16,540) | 9,264 | |||||||||||||||||
Inventories | (14,427) | 1,539 | (5,990) | |||||||||||||||||
Income and other taxes | (10,405) | 10,832 | 496 | |||||||||||||||||
Accounts payable | 8,728 | (18,909) | (18,548) | |||||||||||||||||
Deferred gas costs | (40,541) | 17,590 | (23,471) | |||||||||||||||||
Asset optimization revenue sharing | 44,458 | (7,244) | 655 | |||||||||||||||||
Decoupling mechanism | (5,206) | 2,884 | 18,661 | |||||||||||||||||
Other, net | (25,060) | (393) | (2,081) | |||||||||||||||||
Cash provided by operating activities | 141,494 | 148,517 | 186,891 | |||||||||||||||||
Investing activities: | ||||||||||||||||||||
Capital expenditures | (278,237) | (266,048) | (221,380) | |||||||||||||||||
Leasehold improvement expenditures | (1,364) | (7,878) | (18,812) | |||||||||||||||||
Proceeds from the sale of assets | 3,926 | 8,149 | 659 | |||||||||||||||||
Other | (54) | 1,654 | (3,544) | |||||||||||||||||
Cash used in investing activities | (275,729) | (264,123) | (243,077) | |||||||||||||||||
Financing activities: | ||||||||||||||||||||
Long-term debt issued | 130,000 | 150,000 | 140,000 | |||||||||||||||||
Long-term debt retired | (60,000) | (75,000) | (30,000) | |||||||||||||||||
Proceeds from term loan due within one year | 100,000 | 150,000 | — | |||||||||||||||||
Repayment of term loan | (100,000) | (150,000) | — | |||||||||||||||||
Proceeds from commercial paper, maturities greater than three months | — | 195,025 | — | |||||||||||||||||
Repayment of commercial paper, maturities greater than three months | (195,025) | — | — | |||||||||||||||||
Changes in other short-term debt, net | 209,000 | (88,600) | (92,400) | |||||||||||||||||
Cash contributions received from parent | 116,009 | — | 93,155 | |||||||||||||||||
Cash dividend payments on common stock | (56,056) | (55,355) | (53,372) | |||||||||||||||||
Other | (4,600) | (3,632) | (2,510) | |||||||||||||||||
Cash provided by financing activities | 139,328 | 122,438 | 54,873 | |||||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 5,093 | 6,832 | (1,313) | |||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 15,739 | 8,907 | 10,220 | |||||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 20,832 | $ | 15,739 | $ | 8,907 | ||||||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||||||
Interest paid, net of capitalization | $ | 42,395 | $ | 40,624 | $ | 39,927 | ||||||||||||||
Income taxes paid | 26,451 | 6,100 | 2,479 |
Regulatory Assets | ||||||||
In thousands | 2018 | 2017 | ||||||
Current: | ||||||||
Unrealized loss on derivatives(1) | $ | 12,381 | $ | 18,712 | ||||
Gas costs | 2,873 | 154 | ||||||
Environmental costs(2) | 5,601 | 6,198 | ||||||
Decoupling(3) | 9,140 | 11,227 | ||||||
Income taxes | 2,218 | 2,218 | ||||||
Other(4) | 9,717 | 7,272 | ||||||
Total current | $ | 41,930 | $ | 45,781 | ||||
Non-current: | ||||||||
Unrealized loss on derivatives(1) | $ | 3,025 | $ | 4,649 | ||||
Pension balancing(5) | 74,173 | 60,383 | ||||||
Income taxes | 19,185 | 19,991 | ||||||
Pension and other postretirement benefit liabilities | 174,993 | 179,824 | ||||||
Environmental costs(2) | 76,149 | 72,128 | ||||||
Gas costs | 9,978 | 84 | ||||||
Decoupling(3) | 2,545 | 3,970 | ||||||
Other(4) | 11,738 | 15,579 | ||||||
Total non-current | $ | 371,786 | $ | 356,608 |
Regulatory Liabilities | ||||||||
In thousands | 2018 | 2017 | ||||||
Current: | ||||||||
Gas costs | $ | 17,182 | $ | 14,886 | ||||
Unrealized gain on derivatives(1) | 8,740 | 1,674 | ||||||
Decoupling(3) | 2,264 | 322 | ||||||
Other(4) | 19,250 | 17,131 | ||||||
Total current | $ | 47,436 | $ | 34,013 | ||||
Non-current: | ||||||||
Gas costs | $ | 552 | $ | 4,630 | ||||
Unrealized gain on derivatives(1) | 725 | 1,306 | ||||||
Decoupling(3) | — | 957 | ||||||
Income taxes(6) | 225,408 | 213,306 | ||||||
Accrued asset removal costs(7) | 380,464 | 360,929 | ||||||
Other(4) | 4,411 | 4,965 | ||||||
Total non-current | $ | 611,560 | $ | 586,093 |
Regulatory Assets | ||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||
Current: | ||||||||||||||
Unrealized loss on derivatives(1) | $ | 10,402 | $ | 4,198 | ||||||||||
Gas costs | 35,641 | 1,979 | ||||||||||||
Environmental costs(2) | 6,694 | 4,992 | ||||||||||||
Decoupling(3) | 969 | 361 | ||||||||||||
Pension balancing(4) | 7,131 | 7,131 | ||||||||||||
Income taxes | 2,568 | 3,484 | ||||||||||||
Other(5) | 8,986 | 9,600 | ||||||||||||
Total current | $ | 72,391 | $ | 31,745 | ||||||||||
Non-current: | ||||||||||||||
Unrealized loss on derivatives(1) | $ | 412 | $ | 2,852 | ||||||||||
Pension balancing(4) | 38,302 | 43,383 | ||||||||||||
Income taxes | 12,609 | 15,368 | ||||||||||||
Pension and other postretirement benefit liabilities | 116,440 | 170,812 | ||||||||||||
Environmental costs(2) | 94,636 | 90,623 | ||||||||||||
Gas costs | 15,477 | 3,925 | ||||||||||||
Decoupling(3) | — | 1,031 | ||||||||||||
Other(5) | 36,663 | 20,893 | ||||||||||||
Total non-current | $ | 314,539 | $ | 348,887 | ||||||||||
Other (NW Holdings) | 40 | 40 | ||||||||||||
Total non-current -NW Holdings | $ | 314,579 | $ | 348,927 |
Regulatory Liabilities | ||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||
Current: | ||||||||||||||
Gas costs | $ | 70 | $ | 1,118 | ||||||||||
Unrealized gain on derivatives(1) | 48,130 | 13,674 | ||||||||||||
Decoupling(3) | 4,475 | 11,793 | ||||||||||||
Income taxes(6) | 8,192 | 8,217 | ||||||||||||
Asset optimization revenue sharing | 45,124 | 10,298 | ||||||||||||
Other(5) | 6,290 | 5,262 | ||||||||||||
Total current | $ | 112,281 | $ | 50,362 | ||||||||||
Non-current: | ||||||||||||||
Gas costs | $ | 250 | $ | 314 | ||||||||||
Unrealized gain on derivatives(1) | 10,730 | 6,135 | ||||||||||||
Decoupling(3) | 3,412 | 1,723 | ||||||||||||
Income taxes(6) | 181,404 | 189,587 | ||||||||||||
Accrued asset removal costs(7) | 445,952 | 427,960 | ||||||||||||
Asset optimization revenue sharing | 1,810 | 1,231 | ||||||||||||
Other(5) | 13,792 | 11,843 | ||||||||||||
Total non-current | $ | 657,350 | $ | 638,793 | ||||||||||
Other (NW Holdings) | 982 | 870 | ||||||||||||
Total non-current -NW Holdings | $ | 658,332 | $ | 639,663 | ||||||||||
December 31, | ||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||
Cash and cash equivalents | $ | 18,559 | $ | 30,168 | ||||||||||
Restricted cash included in other current assets | 8,561 | 5,286 | ||||||||||||
Cash, cash equivalents and restricted cash | $ | 27,120 | $ | 35,454 |
December 31, | ||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||
Cash and cash equivalents | $ | 12,271 | $ | 10,453 | ||||||||||
Restricted cash included in other current assets | 8,561 | 5,286 | ||||||||||||
Cash, cash equivalents and restricted cash | $ | 20,832 | $ | 15,739 |
As of December 31, 2020 | As of December 31, 2021 | ||||||||||||||||||||||
Year ended December 31, 2021 | |||||||||||||||||||||||
In thousands | Beginning Balance | Provision recorded, net of adjustments | Write-offs recognized, net of recoveries | Ending Balance | |||||||||||||||||||
Allowance for uncollectible accounts: | |||||||||||||||||||||||
Residential | $ | 2,153 | $ | 783 | $ | (1,476) | $ | 1,460 | |||||||||||||||
Commercial | 704 | (250) | (276) | 178 | |||||||||||||||||||
Industrial | 142 | (79) | 4 | 67 | |||||||||||||||||||
Accrued unbilled and other | 220 | 270 | (177) | 313 | |||||||||||||||||||
Total | $ | 3,219 | $ | 724 | $ | (1,925) | $ | 2,018 |
In thousands, except per share data | 2021 | 2020 | 2019 | |||||||||||||||||
Net income from continuing operations | $ | 78,666 | $ | 70,273 | $ | 65,311 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | — | 6,508 | (3,576) | |||||||||||||||||
Net income | $ | 78,666 | $ | 76,781 | $ | 61,735 | ||||||||||||||
Average common shares outstanding - basic | 30,702 | 30,541 | 29,786 | |||||||||||||||||
Additional shares for stock-based compensation plans (See Note 8) | 50 | 58 | 73 | |||||||||||||||||
Average common shares outstanding - diluted | 30,752 | 30,599 | 29,859 | |||||||||||||||||
Earnings from continuing operations per share of common stock: | ||||||||||||||||||||
Basic | $ | 2.56 | $ | 2.30 | $ | 2.19 | ||||||||||||||
Diluted | 2.56 | 2.30 | 2.19 | |||||||||||||||||
Earnings (loss) from discontinued operations per share of common stock: | ||||||||||||||||||||
Basic | $ | — | $ | 0.21 | $ | (0.12) | ||||||||||||||
Diluted | — | 0.21 | (0.12) | |||||||||||||||||
Earnings per share of common stock: | ||||||||||||||||||||
Basic | $ | 2.56 | $ | 2.51 | $ | 2.07 | ||||||||||||||
Diluted | 2.56 | 2.51 | 2.07 | |||||||||||||||||
Additional information: | ||||||||||||||||||||
Anti-dilutive shares | 7 | 1 | — |
In thousands, except per share data | 2018 | 2017 | 2016 | |||||||||
Net income from continuing operations | $ | 67,311 | $ | 72,073 | $ | 62,419 | ||||||
Loss from discontinued operations, net of tax | (2,742 | ) | (127,696 | ) | (3,524 | ) | ||||||
Net income (loss) | $ | 64,569 | $ | (55,623 | ) | $ | 58,895 | |||||
Average common shares outstanding - basic | 28,803 | 28,669 | 27,647 | |||||||||
Additional shares for stock-based compensation plans (See Note 7) | 70 | 84 | 132 | |||||||||
Average common shares outstanding - diluted | 28,873 | 28,753 | 27,779 | |||||||||
Earnings (loss) from continuing operations per share of common stock: | ||||||||||||
Basic | $ | 2.34 | $ | 2.51 | $ | 2.26 | ||||||
Diluted | $ | 2.33 | $ | 2.51 | $ | 2.25 | ||||||
Loss from discontinued operations per share of common stock: | ||||||||||||
Basic | $ | (0.10 | ) | $ | (4.45 | ) | $ | (0.13 | ) | |||
Diluted | $ | (0.09 | ) | $ | (4.44 | ) | $ | (0.13 | ) | |||
Earnings (loss) per share of common stock: | ||||||||||||
Basic | $ | 2.24 | $ | (1.94 | ) | $ | 2.13 | |||||
Diluted | $ | 2.24 | $ | (1.93 | ) | $ | 2.12 | |||||
Additional information: | ||||||||||||
Antidilutive shares | 2 | 13 | 5 |
In thousands | NGD | Other (NW Natural) | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||
Operating revenues | $ | 816,887 | $ | 26,170 | $ | 843,057 | $ | 17,343 | $ | 860,400 | ||||||||||||||||||||||
Depreciation and amortization | 109,475 | 1,029 | 110,504 | 3,030 | 113,534 | |||||||||||||||||||||||||||
Income (loss) from operations | 147,902 | 17,331 | 165,233 | (2,116) | 163,117 | |||||||||||||||||||||||||||
Net income (loss) from continuing operations | 68,988 | 12,184 | 81,172 | (2,506) | 78,666 | |||||||||||||||||||||||||||
Capital expenditures | 275,267 | 2,970 | 278,237 | 15,655 | 293,892 | |||||||||||||||||||||||||||
Total assets at December 31, 2021 | 3,846,112 | 52,260 | 3,898,372 | 166,232 | 4,064,604 | |||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||
Operating revenues | $ | 741,072 | $ | 17,676 | $ | 758,748 | $ | 14,931 | $ | 773,679 | ||||||||||||||||||||||
Depreciation and amortization | 100,591 | 995 | 101,586 | 2,097 | 103,683 | |||||||||||||||||||||||||||
Income (loss) from operations | 137,724 | 9,916 | 147,640 | 711 | 148,351 | |||||||||||||||||||||||||||
Net income (loss) from continuing operations | 63,555 | 7,008 | 70,563 | (290) | 70,273 | |||||||||||||||||||||||||||
Capital expenditures | 263,777 | 2,271 | 266,048 | 6,968 | 273,016 | |||||||||||||||||||||||||||
Total assets at December 31, 2020 | 3,549,868 | 49,468 | 3,599,336 | 157,043 | 3,756,379 | |||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Operating revenues | $ | 720,528 | $ | 19,416 | $ | 739,944 | $ | 6,428 | $ | 746,372 | ||||||||||||||||||||||
Depreciation and amortization | 89,415 | 990 | 90,405 | 1,091 | 91,496 | |||||||||||||||||||||||||||
Income (loss) from operations | 135,918 | 11,428 | 147,346 | (3,872) | 143,474 | |||||||||||||||||||||||||||
Net income (loss) from continuing operations | 60,828 | 8,146 | 68,974 | (3,663) | 65,311 | |||||||||||||||||||||||||||
Capital expenditures | 219,880 | 1,500 | 221,380 | 2,091 | 223,471 | |||||||||||||||||||||||||||
Total assets at December 31, 2019(1) | 3,273,835 | 47,652 | 3,321,487 | 91,833 | 3,413,320 |
In thousands | NGD | Other (NW Natural) | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||
2018 | ||||||||||||||||||||
Operating revenues | $ | 680,648 | $ | 24,923 | $ | 705,571 | $ | 572 | $ | 706,143 | ||||||||||
Depreciation and amortization | 83,732 | 1,254 | 84,986 | 170 | 85,156 | |||||||||||||||
Income (loss) from operations | 118,095 | 15,004 | 133,099 | (937 | ) | 132,162 | ||||||||||||||
Net income (loss) from continuing operations | 57,491 | 10,558 | 68,049 | (738 | ) | 67,311 | ||||||||||||||
Capital expenditures | 212,323 | 2,005 | 214,328 | 308 | 214,636 | |||||||||||||||
Total assets at December 31, 2018(2) | 3,141,969 | 50,767 | 3,192,736 | 36,657 | 3,229,393 | |||||||||||||||
2017 | ||||||||||||||||||||
Operating revenues | $ | 732,942 | $ | 22,096 | $ | 755,038 | $ | — | $ | 755,038 | ||||||||||
Depreciation and amortization | 79,734 | 1,290 | 81,024 | 29 | 81,053 | |||||||||||||||
Income (loss) from operations | 138,450 | 12,472 | 150,922 | (20 | ) | 150,902 | ||||||||||||||
Net income from continuing operations(1) | 60,509 | 11,211 | 71,720 | 353 | 72,073 | |||||||||||||||
Capital expenditures | 211,672 | 1,653 | 213,325 | — | 213,325 | |||||||||||||||
Total assets at December 31, 2017(2) | 2,961,326 | 50,471 | 3,011,797 | 14,075 | 3,025,872 | |||||||||||||||
2016 | ||||||||||||||||||||
Operating revenues | $ | 650,477 | $ | 17,472 | $ | 667,949 | $ | 224 | $ | 668,173 | ||||||||||
Depreciation and amortization | 76,289 | 1,286 | 77,575 | 29 | 77,604 | |||||||||||||||
Income (loss) from operations | 137,178 | 14,109 | 151,287 | (570 | ) | 150,717 | ||||||||||||||
Net income (loss) from continuing operations(3) | 54,567 | 8,268 | 62,835 | (416 | ) | 62,419 | ||||||||||||||
Capital expenditures | 138,074 | 283 | 138,357 | — | 138,357 | |||||||||||||||
Total assets at December 31, 2016(2) | 2,806,627 | 48,719 | 2,855,346 | 14,040 | 2,869,386 |
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
NGD margin calculation: | |||||||||||||||||
NGD operating revenues | $ | 797,800 | $ | 721,950 | $ | 708,472 | |||||||||||
Other regulated services | 19,087 | 19,122 | 12,056 | ||||||||||||||
Total NGD operating revenues | 816,887 | 741,072 | 720,528 | ||||||||||||||
Less: NGD cost of gas | 292,538 | 262,980 | 255,135 | ||||||||||||||
Environmental remediation expense | 9,938 | 9,691 | 12,337 | ||||||||||||||
Revenue taxes | 34,600 | 30,291 | 30,325 | ||||||||||||||
NGD margin | $ | 479,811 | $ | 438,110 | $ | 422,731 |
In thousands | 2018 | 2017 | 2016 | ||||||||
NGD margin calculation: | |||||||||||
NGD operating revenues | $ | 680,648 | $ | 732,942 | $ | 650,477 | |||||
Less: NGD cost of gas | 255,743 | 325,019 | 260,588 | ||||||||
Environmental remediation expense | 11,127 | 15,291 | 13,298 | ||||||||
Revenue taxes(1) | 30,082 | — | — | ||||||||
NGD margin | $ | 383,696 | $ | 392,632 | $ | 376,591 |
In thousands | NGD | Other (NW Natural) | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||
Operating revenues | $ | 816,887 | $ | 26,170 | $ | 843,057 | $ | 17,343 | $ | 860,400 | ||||||||||||||||||||||
Depreciation and amortization | 109,475 | 1,029 | 110,504 | 3,030 | 113,534 | |||||||||||||||||||||||||||
Income (loss) from operations | 147,902 | 17,331 | 165,233 | (2,116) | 163,117 | |||||||||||||||||||||||||||
Net income (loss) from continuing operations | 68,988 | 12,184 | 81,172 | (2,506) | 78,666 | |||||||||||||||||||||||||||
Capital expenditures | 275,267 | 2,970 | 278,237 | 15,655 | 293,892 | |||||||||||||||||||||||||||
Total assets at December 31, 2021 | 3,846,112 | 52,260 | 3,898,372 | 166,232 | 4,064,604 | |||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||
Operating revenues | $ | 741,072 | $ | 17,676 | $ | 758,748 | $ | 14,931 | $ | 773,679 | ||||||||||||||||||||||
Depreciation and amortization | 100,591 | 995 | 101,586 | 2,097 | 103,683 | |||||||||||||||||||||||||||
Income (loss) from operations | 137,724 | 9,916 | 147,640 | 711 | 148,351 | |||||||||||||||||||||||||||
Net income (loss) from continuing operations | 63,555 | 7,008 | 70,563 | (290) | 70,273 | |||||||||||||||||||||||||||
Capital expenditures | 263,777 | 2,271 | 266,048 | 6,968 | 273,016 | |||||||||||||||||||||||||||
Total assets at December 31, 2020 | 3,549,868 | 49,468 | 3,599,336 | 157,043 | 3,756,379 | |||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Operating revenues | $ | 720,528 | $ | 19,416 | $ | 739,944 | $ | 6,428 | $ | 746,372 | ||||||||||||||||||||||
Depreciation and amortization | 89,415 | 990 | 90,405 | 1,091 | 91,496 | |||||||||||||||||||||||||||
Income (loss) from operations | 135,918 | 11,428 | 147,346 | (3,872) | 143,474 | |||||||||||||||||||||||||||
Net income (loss) from continuing operations | 60,828 | 8,146 | 68,974 | (3,663) | 65,311 | |||||||||||||||||||||||||||
Capital expenditures | 219,880 | 1,500 | 221,380 | 2,091 | 223,471 | |||||||||||||||||||||||||||
Total assets at December 31, 2019(1) | 3,273,835 | 47,652 | 3,321,487 | 91,833 | 3,413,320 |
Year ended December 31, 2018 | ||||||||||||||||||||
In thousands | NGD | Other (NW Natural) | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||
Natural gas sales | $ | 670,662 | $ | — | $ | 670,662 | $ | — | $ | 670,662 | ||||||||||
Gas storage revenue, net | — | 10,780 | 10,780 | — | 10,780 | |||||||||||||||
Asset management revenue, net | — | 8,548 | 8,548 | — | 8,548 | |||||||||||||||
Appliance retail center revenue | — | 5,595 | 5,595 | — | 5,595 | |||||||||||||||
Other revenue | — | — | — | 572 | 572 | |||||||||||||||
Revenue from contracts with customers | 670,662 | 24,923 | 695,585 | 572 | 696,157 | |||||||||||||||
Alternative revenue | 8,989 | — | 8,989 | — | 8,989 | |||||||||||||||
Leasing revenue | 997 | — | 997 | — | 997 | |||||||||||||||
Total operating revenues | $ | 680,648 | $ | 24,923 | $ | 705,571 | $ | 572 | $ | 706,143 |
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
NGD margin calculation: | |||||||||||||||||
NGD operating revenues | $ | 797,800 | $ | 721,950 | $ | 708,472 | |||||||||||
Other regulated services | 19,087 | 19,122 | 12,056 | ||||||||||||||
Total NGD operating revenues | 816,887 | 741,072 | 720,528 | ||||||||||||||
Less: NGD cost of gas | 292,538 | 262,980 | 255,135 | ||||||||||||||
Environmental remediation expense | 9,938 | 9,691 | 12,337 | ||||||||||||||
Revenue taxes | 34,600 | 30,291 | 30,325 | ||||||||||||||
NGD margin | $ | 479,811 | $ | 438,110 | $ | 422,731 |
In thousands | NGD | Other (NW Natural) | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||
Operating revenues | $ | 816,887 | $ | 26,170 | $ | 843,057 | $ | 17,343 | $ | 860,400 | ||||||||||||||||||||||
Depreciation and amortization | 109,475 | 1,029 | 110,504 | 3,030 | 113,534 | |||||||||||||||||||||||||||
Income (loss) from operations | 147,902 | 17,331 | 165,233 | (2,116) | 163,117 | |||||||||||||||||||||||||||
Net income (loss) from continuing operations | 68,988 | 12,184 | 81,172 | (2,506) | 78,666 | |||||||||||||||||||||||||||
Capital expenditures | 275,267 | 2,970 | 278,237 | 15,655 | 293,892 | |||||||||||||||||||||||||||
Total assets at December 31, 2021 | 3,846,112 | 52,260 | 3,898,372 | 166,232 | 4,064,604 | |||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||
Operating revenues | $ | 741,072 | $ | 17,676 | $ | 758,748 | $ | 14,931 | $ | 773,679 | ||||||||||||||||||||||
Depreciation and amortization | 100,591 | 995 | 101,586 | 2,097 | 103,683 | |||||||||||||||||||||||||||
Income (loss) from operations | 137,724 | 9,916 | 147,640 | 711 | 148,351 | |||||||||||||||||||||||||||
Net income (loss) from continuing operations | 63,555 | 7,008 | 70,563 | (290) | 70,273 | |||||||||||||||||||||||||||
Capital expenditures | 263,777 | 2,271 | 266,048 | 6,968 | 273,016 | |||||||||||||||||||||||||||
Total assets at December 31, 2020 | 3,549,868 | 49,468 | 3,599,336 | 157,043 | 3,756,379 | |||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Operating revenues | $ | 720,528 | $ | 19,416 | $ | 739,944 | $ | 6,428 | $ | 746,372 | ||||||||||||||||||||||
Depreciation and amortization | 89,415 | 990 | 90,405 | 1,091 | 91,496 | |||||||||||||||||||||||||||
Income (loss) from operations | 135,918 | 11,428 | 147,346 | (3,872) | 143,474 | |||||||||||||||||||||||||||
Net income (loss) from continuing operations | 60,828 | 8,146 | 68,974 | (3,663) | 65,311 | |||||||||||||||||||||||||||
Capital expenditures | 219,880 | 1,500 | 221,380 | 2,091 | 223,471 | |||||||||||||||||||||||||||
Total assets at December 31, 2019(1) | 3,273,835 | 47,652 | 3,321,487 | 91,833 | 3,413,320 |
In thousands | 2021 | 2020 | 2019 | ||||||||||||||
NGD margin calculation: | |||||||||||||||||
NGD operating revenues | $ | 797,800 | $ | 721,950 | $ | 708,472 | |||||||||||
Other regulated services | 19,087 | 19,122 | 12,056 | ||||||||||||||
Total NGD operating revenues | 816,887 | 741,072 | 720,528 | ||||||||||||||
Less: NGD cost of gas | 292,538 | 262,980 | 255,135 | ||||||||||||||
Environmental remediation expense | 9,938 | 9,691 | 12,337 | ||||||||||||||
Revenue taxes | 34,600 | 30,291 | 30,325 | ||||||||||||||
NGD margin | $ | 479,811 | $ | 438,110 | $ | 422,731 |
In thousands | Shares | |||||||
Balance, December 31, 2018 | 28,880 | |||||||
Sales to employees under ESPP | 18 | |||||||
Stock-based compensation | 83 | |||||||
Equity issuance | 1,438 | |||||||
Sales to shareholders under DRPP | 53 | |||||||
Balance, December 31, 2019 | 30,472 | |||||||
Sales to employees under ESPP | 3 | |||||||
Stock-based compensation | 46 | |||||||
Sales to shareholders under DRPP | 68 | |||||||
Balance, December 31, 2020 | 30,589 | |||||||
Sales to employees under ESPP | 48 | |||||||
Stock-based compensation | 49 | |||||||
Equity issuance | 376 | |||||||
Sales to shareholders under DRPP | 67 | |||||||
Balance, December 31, 2021 | 31,129 |
Year ended December 31, 2021 | ||||||||||||||||||||||||||||||||
In thousands | NGD | Other (NW Natural) | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||||||||||||
Natural gas sales | $ | 783,027 | $ | — | $ | 783,027 | $ | — | $ | 783,027 | ||||||||||||||||||||||
Gas storage revenue, net | — | 10,830 | 10,830 | — | 10,830 | |||||||||||||||||||||||||||
Asset management revenue, net | — | 9,387 | 9,387 | — | 9,387 | |||||||||||||||||||||||||||
Appliance retail center revenue | — | 5,953 | 5,953 | — | 5,953 | |||||||||||||||||||||||||||
Other revenue | 1,615 | — | 1,615 | 17,343 | 18,958 | |||||||||||||||||||||||||||
Revenue from contracts with customers | 784,642 | 26,170 | 810,812 | 17,343 | 828,155 | |||||||||||||||||||||||||||
Alternative revenue | 14,694 | — | 14,694 | — | 14,694 | |||||||||||||||||||||||||||
Leasing revenue | 17,551 | — | 17,551 | — | 17,551 | |||||||||||||||||||||||||||
Total operating revenues | $ | 816,887 | $ | 26,170 | $ | 843,057 | $ | 17,343 | $ | 860,400 |
Year ended December 31, 2020 | ||||||||||||||||||||||||||||||||
In thousands | NGD | Other (NW Natural) | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||||||||||||
Natural gas sales | $ | 710,422 | $ | — | $ | 710,422 | $ | — | $ | 710,422 | ||||||||||||||||||||||
Gas storage revenue, net | — | 9,759 | 9,759 | — | 9,759 | |||||||||||||||||||||||||||
Asset management revenue, net | — | 2,532 | 2,532 | — | 2,532 | |||||||||||||||||||||||||||
Appliance retail center revenue | — | 5,385 | 5,385 | — | 5,385 | |||||||||||||||||||||||||||
Other revenue | 1,337 | — | 1,337 | 14,931 | 16,268 | |||||||||||||||||||||||||||
Revenue from contracts with customers | 711,759 | 17,676 | 729,435 | 14,931 | 744,366 | |||||||||||||||||||||||||||
Alternative revenue | 10,870 | — | 10,870 | — | 10,870 | |||||||||||||||||||||||||||
Leasing revenue | 18,443 | — | 18,443 | — | 18,443 | |||||||||||||||||||||||||||
Total operating revenues | $ | 741,072 | $ | 17,676 | $ | 758,748 | $ | 14,931 | $ | 773,679 |
Year ended December 31, | ||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||
Lease revenue | ||||||||||||||
Operating leases | $ | 80 | $ | 88 | ||||||||||
Sales-type leases | 17,471 | 18,355 | ||||||||||||
Total lease revenue | $ | 17,551 | $ | 18,443 |
In thousands | Operating | Sales-Type | Total | |||||||||||||||||
NW Natural: | ||||||||||||||||||||
2022 | $ | 577 | $ | 17,026 | $ | 17,603 | ||||||||||||||
2023 | 74 | 16,557 | 16,631 | |||||||||||||||||
2024 | 74 | 15,867 | 15,941 | |||||||||||||||||
2025 | 66 | 15,306 | 15,372 | |||||||||||||||||
2026 | 36 | 14,901 | 14,937 | |||||||||||||||||
Thereafter | 22 | 236,820 | 236,842 | |||||||||||||||||
Total minimum lease payments | $ | 849 | $ | 316,477 | $ | 317,326 | ||||||||||||||
Less: imputed interest | 177,160 | |||||||||||||||||||
Total leases receivable | $ | 139,317 | ||||||||||||||||||
Other NW Holdings: | ||||||||||||||||||||
2022 | $ | 50 | $ | — | $ | 50 | ||||||||||||||
2023 | 51 | — | 51 | |||||||||||||||||
2024 | 52 | — | 52 | |||||||||||||||||
2025 | 53 | — | 53 | |||||||||||||||||
2026 | 56 | — | 56 | |||||||||||||||||
Thereafter | 914 | — | 914 | |||||||||||||||||
Total minimum lease payments | $ | 1,176 | $ | — | $ | 1,176 | ||||||||||||||
NW Holdings: | ||||||||||||||||||||
2022 | $ | 627 | $ | 17,026 | $ | 17,653 | ||||||||||||||
2023 | 125 | 16,557 | 16,682 | |||||||||||||||||
2024 | 126 | 15,867 | 15,993 | |||||||||||||||||
2025 | 119 | 15,306 | 15,425 | |||||||||||||||||
2026 | 92 | 14,901 | 14,993 | |||||||||||||||||
Thereafter | 936 | 236,820 | 237,756 | |||||||||||||||||
Total minimum lease payments | $ | 2,025 | $ | 316,477 | $ | 318,502 | ||||||||||||||
Less: imputed interest | 177,160 | |||||||||||||||||||
Total leases receivable | $ | 139,317 |
Year ended December 31, 2021 | ||||||||||||||||||||
In thousands | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||
Operating lease expense | $ | 6,859 | $ | 58 | $ | 6,917 | ||||||||||||||
Short-term lease expense | 1,220 | — | 1,220 |
Year ended December 31, 2020 | ||||||||||||||||||||
In thousands | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||
Operating lease expense | $ | 4,381 | $ | 125 | $ | 4,506 | ||||||||||||||
Short-term lease expense | 1,010 | — | 1,010 |
In thousands | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||
Operating lease right of use assets | $ | 74,987 | $ | 62 | $ | 75,049 | ||||||||||||||
Operating lease liabilities - current liabilities | $ | 1,273 | $ | 23 | $ | 1,296 | ||||||||||||||
Operating lease liabilities - non-current liabilities | 79,431 | 37 | 79,468 | |||||||||||||||||
Total operating lease liabilities | $ | 80,704 | $ | 60 | $ | 80,764 |
In thousands | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||
Operating lease right of use assets | $ | 77,328 | $ | 118 | $ | 77,446 | ||||||||||||||
Operating lease liabilities - current liabilities | $ | 1,054 | $ | 51 | $ | 1,105 | ||||||||||||||
Operating lease liabilities - non-current liabilities | 80,559 | 62 | 80,621 | |||||||||||||||||
Total operating lease liabilities | $ | 81,613 | $ | 113 | $ | 81,726 |
2021 | 2020 | |||||||||||||
Weighted-average remaining lease term (years) | 18.2 | 19.2 | ||||||||||||
Weighted-average discount rate | 7.2 | % | 7.2 | % |
In thousands | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||
2022 | $ | 6,968 | $ | 24 | $ | 6,992 | ||||||||||||||
2023 | 7,013 | 6 | 7,019 | |||||||||||||||||
2024 | 7,150 | 6 | 7,156 | |||||||||||||||||
2025 | 7,185 | 6 | 7,191 | |||||||||||||||||
2026 | 7,353 | 6 | 7,359 | |||||||||||||||||
Thereafter | 116,431 | 18 | 116,449 | |||||||||||||||||
Total lease payments | 152,100 | 66 | 152,166 | |||||||||||||||||
Less: imputed interest | 71,396 | 6 | 71,402 | |||||||||||||||||
Total lease obligations | 80,704 | 60 | 80,764 | |||||||||||||||||
Less: current obligations | 1,273 | 23 | 1,296 | |||||||||||||||||
Long-term lease obligations | $ | 79,431 | $ | 37 | $ | 79,468 |
Year ended December 31, 2021 | ||||||||||||||||||||
In thousands | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||||||
Operating cash flows from operating leases | $ | 6,840 | $ | 58 | $ | 6,898 | ||||||||||||||
Finance cash flows from finance leases | 801 | — | 801 | |||||||||||||||||
Right of use assets obtained in exchange for lease obligations | ||||||||||||||||||||
Operating leases | $ | 223 | $ | — | $ | 223 | ||||||||||||||
Finance leases | 314 | — | 314 |
Year ended December 31, 2020 | ||||||||||||||||||||
In thousands | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||||||
Operating cash flows from operating leases | $ | 4,466 | $ | 131 | $ | 4,597 | ||||||||||||||
Finance cash flows from finance leases | 835 | — | 835 | |||||||||||||||||
Right of use assets obtained in exchange for lease obligations | ||||||||||||||||||||
Operating leases | $ | 78,539 | $ | 51 | $ | 78,590 | ||||||||||||||
Finance leases | 1,386 | — | 1,386 |
Dollars in thousands | Shares(1) | Expense During Award Year(2) | Total Expense for Award | |||||||||||||||||
Estimated award: | ||||||||||||||||||||
2019-2021 grant(3) | 37,430 | $ | 1,322 | $ | 1,322 | |||||||||||||||
Actual award: | ||||||||||||||||||||
2018-2020 grant | 31,600 | $ | 2,137 | $ | 2,137 | |||||||||||||||
2017-2019 grant | 41,537 | $ | 572 | $ | 1,971 |
Dollars in thousands | Shares(1) | Expense During Award Year(2) | Total Expense for Award | ||||||||
Estimated award: | |||||||||||
2016-2018 grant(3) | 28,218 | $ | 598 | $ | 1,413 | ||||||
Actual award: | |||||||||||
2015-2017 grant | 18,304 | (346 | ) | 1,169 | |||||||
2014-2016 grant | 31,388 | 168 | 1,685 |
Dollars in thousands | Performance Share Awards Outstanding | 2021 | ||||||||||||||||||||||||
Performance Period | Target | Maximum | Expense | |||||||||||||||||||||||
2019-21 | 35,170 | 70,340 | $ | 1,322 | ||||||||||||||||||||||
2020-22 | — | — | — | |||||||||||||||||||||||
2021-23 | — | — | — | |||||||||||||||||||||||
Total | 35,170 | 70,340 | $ | 1,322 |
Dollars in thousands | Performance Share Awards Outstanding | 2018 | Cumulative Expense | |||||||||||
Performance Period | Target | Maximum | Expense | December 31, 2018 | ||||||||||
2016-18 | 24,421 | 48,842 | $ | 598 | $ | 1,413 | ||||||||
2017-19 | 31,372 | 62,744 | 458 | 1,400 | ||||||||||
2018-20 | — | — | — | — | ||||||||||
Total | 55,793 | 111,586 | $ | 1,056 |
Number of RSUs | Weighted - Average Price Per RSU | |||||||||||||
Nonvested, December 31, 2018 | 82,680 | $ | 56.47 | |||||||||||
Granted | 36,018 | 65.29 | ||||||||||||
Vested | (35,778) | 54.22 | ||||||||||||
Forfeited | (3,187) | 63.89 | ||||||||||||
Nonvested, December 31, 2019 | 79,733 | 61.17 | ||||||||||||
Granted | 33,594 | 55.58 | ||||||||||||
Vested | (29,273) | 59.29 | ||||||||||||
Forfeited | (1,590) | 69.71 | ||||||||||||
Nonvested, December 31, 2020 | 82,464 | 59.40 | ||||||||||||
Granted | 38,160 | 49.16 | ||||||||||||
Vested | (31,733) | 60.06 | ||||||||||||
Forfeited | (1,164) | 46.82 | ||||||||||||
Nonvested, December 31, 2021 | 87,727 | $ | 54.87 |
Number of RSUs | Weighted - Average Price Per RSU | ||||||
Nonvested, December 31, 2015 | 88,587 | $ | 44.78 | ||||
Granted | 40,271 | 54.36 | |||||
Vested | (29,488 | ) | 45.56 | ||||
Forfeited | (9,397 | ) | 44.59 | ||||
Nonvested, December 31, 2016 | 89,973 | 48.85 | |||||
Granted | 32,168 | 60.51 | |||||
Vested | (35,341 | ) | 47.07 | ||||
Forfeited | (2,278 | ) | 53.78 | ||||
Nonvested, December 31, 2017 | 84,522 | 53.90 | |||||
Granted | 32,450 | 57.59 | |||||
Vested | (32,689 | ) | 50.75 | ||||
Forfeited | (1,603 | ) | 59.95 | ||||
Nonvested, December 31, 2018 | 82,680 | $ | 56.47 |
Option Shares | Weighted - Average Price Per Share | Intrinsic Value (In millions) | ||||||||||||||||||
Balance outstanding and exercisable, December 31, 2018 | 55,938 | $ | 44.96 | $ | 0.9 | |||||||||||||||
Exercised | (45,000) | 44.79 | 1.0 | |||||||||||||||||
Forfeited | — | — | n/a | |||||||||||||||||
Balance outstanding and exercisable, December 31, 2019 | 10,938 | 45.67 | 0.3 | |||||||||||||||||
Exercised | (1,500) | 45.24 | — | |||||||||||||||||
Expired | — | — | n/a | |||||||||||||||||
Balance outstanding and exercisable, December 31, 2020 | 9,438 | 45.74 | — | |||||||||||||||||
Exercised | (9,438) | 45.74 | — | |||||||||||||||||
Expired | — | — | n/a | |||||||||||||||||
Balance outstanding and exercisable, December 31, 2021 | — | $ | — | $ | — |
Option Shares | Weighted - Average Price Per Share | Intrinsic Value (In millions) | |||||||||
Balance outstanding, December 31, 2015 | 352,688 | $ | 44.00 | $ | 2.3 | ||||||
Exercised | (172,525 | ) | 43.61 | 2.0 | |||||||
Forfeited | — | n/a | n/a | ||||||||
Balance outstanding, December 31, 2016 | 180,163 | 44.38 | 2.8 | ||||||||
Exercised | (88,275 | ) | 44.33 | 1.8 | |||||||
Forfeited | (200 | ) | 41.15 | n/a | |||||||
Balance outstanding and exercisable, December 31, 2017 | 91,688 | 44.43 | 1.4 | ||||||||
Exercised | (35,450 | ) | 43.61 | 0.8 | |||||||
Expired | (300 | ) | 43.29 | n/a | |||||||
Balance outstanding and exercisable, December 31, 2018 | 55,938 | $ | 44.96 | $ | 0.9 |
In thousands | 2018 | 2017 | 2016 | |||||||
Operations and maintenance expense, for stock-based compensation | $ | 2,489 | $ | 2,354 | $ | 2,370 | ||||
Income tax benefit | (659 | ) | (930 | ) | (924 | ) | ||||
Net stock-based compensation effect on net income (loss) | $ | 1,830 | $ | 1,424 | $ | 1,446 | ||||
Amounts capitalized for stock-based compensation | $ | 531 | $ | 528 | $ | 554 |
In thousands | 2021 | 2020 | 2019 | ||||||||||||||||||||
Operations and maintenance expense, for stock-based compensation | $ | 3,272 | $ | 3,525 | $ | 2,172 | |||||||||||||||||
Income tax benefit | (866) | (933) | (575) | ||||||||||||||||||||
Net stock-based compensation effect on net income (loss) | 2,406 | 2,592 | 1,597 | ||||||||||||||||||||
Amounts capitalized for stock-based compensation | $ | 344 | $ | 841 | $ | 430 |
In thousands | Long-term debt maturities | |||||||||||||||||||
NW Natural: | ||||||||||||||||||||
2022 | $ | — | ||||||||||||||||||
2023 | 90,000 | |||||||||||||||||||
2024 | — | |||||||||||||||||||
2025 | 30,000 | |||||||||||||||||||
2026 | 55,000 | |||||||||||||||||||
Thereafter | 819,700 | |||||||||||||||||||
Total | $ | 994,700 |
In thousands | Long-term debt maturities | |||
2019 | $ | 30,000 | ||
2020 | 75,000 | |||
2021 | 60,000 | |||
2022 | — | |||
2023 | 90,000 | |||
Thereafter | 484,700 |
In thousands | 2018 | 2017 | ||||||
NW Natural | ||||||||
First Mortgage Bonds: | ||||||||
6.600% Series due 2018 | $ | — | $ | 22,000 | ||||
1.545% Series due 2018 | — | 75,000 | ||||||
8.310% Series due 2019 | 10,000 | 10,000 | ||||||
7.630% Series due 2019 | 20,000 | 20,000 | ||||||
5.370% Series due 2020 | 75,000 | 75,000 | ||||||
9.050% Series due 2021 | 10,000 | 10,000 | ||||||
3.176% Series due 2021 | 50,000 | 50,000 | ||||||
3.542% Series due 2023 | 50,000 | 50,000 | ||||||
5.620% Series due 2023 | 40,000 | 40,000 | ||||||
7.720% Series due 2025 | 20,000 | 20,000 | ||||||
6.520% Series due 2025 | 10,000 | 10,000 | ||||||
7.050% Series due 2026 | 20,000 | 20,000 | ||||||
3.211% Series due 2026 | 35,000 | 35,000 | ||||||
7.000% Series due 2027 | 20,000 | 20,000 | ||||||
2.822% Series due 2027 | 25,000 | 25,000 | ||||||
6.650% Series due 2027 | 19,700 | 19,700 | ||||||
6.650% Series due 2028 | 10,000 | 10,000 | ||||||
7.740% Series due 2030 | 20,000 | 20,000 | ||||||
7.850% Series due 2030 | 10,000 | 10,000 | ||||||
5.820% Series due 2032 | 30,000 | 30,000 | ||||||
5.660% Series due 2033 | 40,000 | 40,000 | ||||||
5.250% Series due 2035 | 10,000 | 10,000 | ||||||
4.000% Series due 2042 | 50,000 | 50,000 | ||||||
4.136% Series due 2046 | 40,000 | 40,000 | ||||||
3.685% Series due 2047 | 75,000 | 75,000 | ||||||
4.110% Series due 2048 | 50,000 | — | ||||||
739,700 | 786,700 | |||||||
Less: current maturities | 30,000 | 97,000 | ||||||
Total long-term debt | $ | 709,700 | $ | 689,700 | ||||
Other NW Holdings Entities: | ||||||||
Long-term debt obligations | $ | 2,113 | $ | — | ||||
NW Holdings: | ||||||||
Long-term debt, gross | $ | 741,813 | $ | 786,700 | ||||
Less: current maturities | 30,000 | 97,000 | ||||||
Total long-term debt | $ | 711,813 | $ | 689,700 |
In thousands | 2021 | 2020 | ||||||||||||
NW Natural: | ||||||||||||||
First Mortgage Bonds: | ||||||||||||||
9.050% Series due 2021 | $ | — | $ | 10,000 | ||||||||||
3.176% Series due 2021 | — | 50,000 | ||||||||||||
3.542% Series due 2023 | 50,000 | 50,000 | ||||||||||||
5.620% Series due 2023 | 40,000�� | 40,000 | ||||||||||||
7.720% Series due 2025 | 20,000 | 20,000 | ||||||||||||
6.520% Series due 2025 | 10,000 | 10,000 | ||||||||||||
7.050% Series due 2026 | 20,000 | 20,000 | ||||||||||||
3.211% Series due 2026 | 35,000 | 35,000 | ||||||||||||
7.000% Series due 2027 | 20,000 | 20,000 | ||||||||||||
2.822% Series due 2027 | 25,000 | 25,000 | ||||||||||||
6.650% Series due 2027 | 19,700 | 19,700 | ||||||||||||
6.650% Series due 2028 | 10,000 | 10,000 | ||||||||||||
3.141% Series due 2029 | 50,000 | 50,000 | ||||||||||||
7.740% Series due 2030 | 20,000 | 20,000 | ||||||||||||
7.850% Series due 2030 | 10,000 | 10,000 | ||||||||||||
5.820% Series due 2032 | 30,000 | 30,000 | ||||||||||||
5.660% Series due 2033 | 40,000 | 40,000 | ||||||||||||
5.250% Series due 2035 | 10,000 | 10,000 | ||||||||||||
4.000% Series due 2042 | 50,000 | 50,000 | ||||||||||||
4.136% Series due 2046 | 40,000 | 40,000 | ||||||||||||
3.685% Series due 2047 | 75,000 | 75,000 | ||||||||||||
4.110% Series due 2048 | 50,000 | 50,000 | ||||||||||||
3.869% Series due 2049 | 90,000 | 90,000 | ||||||||||||
3.600% Series due 2050 | 150,000 | 150,000 | ||||||||||||
3.078% Series due 2051 | 130,000 | — | ||||||||||||
Long-term debt, gross | 994,700 | 924,700 | ||||||||||||
Less: current maturities | — | 60,000 | ||||||||||||
Total long-term debt | $ | 994,700 | $ | 864,700 |
December 31, | ||||||||
In thousands | 2018 | 2017 | ||||||
Gross long-term debt | $ | 739,700 | $ | 786,700 | ||||
Unamortized debt issuance costs | (5,577 | ) | (6,813 | ) | ||||
Carrying amount | $ | 734,123 | $ | 779,887 | ||||
Estimated fair value | $ | 760,222 | $ | 853,339 |
December 31, | ||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||
NW Natural: | ||||||||||||||
Gross long-term debt | $ | 994,700 | $ | 924,700 | ||||||||||
Unamortized debt issuance costs | (8,205) | (7,480) | ||||||||||||
Carrying amount | $ | 986,495 | $ | 917,220 | ||||||||||
Estimated fair value(1) | $ | 1,110,741 | $ | 1,097,348 | ||||||||||
NW Holdings: | ||||||||||||||
Gross long-term debt | $ | 1,053,241 | $ | 962,905 | ||||||||||
Unamortized debt issuance costs | (8,309) | (7,480) | ||||||||||||
Carrying amount | $ | 1,044,932 | $ | 955,425 | ||||||||||
Estimated fair value(1) | $ | 1,174,500 | $ | 1,136,311 | ||||||||||
(1) Estimated fair value does not include unamortized debt issuance costs. |
Postretirement Benefit Plans | ||||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||||
In thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Reconciliation of change in benefit obligation: | ||||||||||||||||||||||||||
Obligation at January 1 | $ | 566,147 | $ | 515,668 | $ | 29,039 | $ | 29,568 | ||||||||||||||||||
Service cost | 6,982 | 6,614 | 238 | 258 | ||||||||||||||||||||||
Interest cost | 13,447 | 16,161 | 684 | 905 | ||||||||||||||||||||||
Net actuarial (gain) loss | (18,587) | 52,777 | (688) | 145 | ||||||||||||||||||||||
Benefits paid | (25,371) | (25,073) | (2,050) | (1,837) | ||||||||||||||||||||||
Obligation at December 31 | $ | 542,618 | $ | 566,147 | $ | 27,223 | $ | 29,039 | ||||||||||||||||||
Reconciliation of change in plan assets: | ||||||||||||||||||||||||||
Fair value of plan assets at January 1 | $ | 373,932 | $ | 313,051 | $ | — | $ | — | ||||||||||||||||||
Actual return on plan assets | 38,712 | 54,600 | — | — | ||||||||||||||||||||||
Employer contributions | 11,944 | 31,354 | 2,050 | 1,837 | ||||||||||||||||||||||
Benefits paid | (25,371) | (25,073) | (2,050) | (1,837) | ||||||||||||||||||||||
Fair value of plan assets at December 31 | $ | 399,217 | $ | 373,932 | $ | — | $ | — | ||||||||||||||||||
Funded status at December 31 | $ | (143,401) | $ | (192,215) | $ | (27,223) | $ | (29,039) |
Postretirement Benefit Plans | ||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||
In thousands | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Reconciliation of change in benefit obligation: | ||||||||||||||||
Obligation at January 1 | $ | 486,289 | $ | 457,839 | $ | 28,927 | $ | 29,395 | ||||||||
Service cost | 7,185 | 7,090 | 282 | 341 | ||||||||||||
Interest cost | 16,991 | 18,111 | 964 | 1,141 | ||||||||||||
Net actuarial (gain) loss | (32,979 | ) | 34,829 | (327 | ) | (213 | ) | |||||||||
Benefits paid(1) | (21,918 | ) | (31,580 | ) | (1,674 | ) | (1,737 | ) | ||||||||
Obligation at December 31 | $ | 455,568 | $ | 486,289 | $ | 28,172 | $ | 28,927 | ||||||||
Reconciliation of change in plan assets: | ||||||||||||||||
Fair value of plan assets at January 1 | $ | 287,925 | $ | 257,714 | $ | — | $ | — | ||||||||
Actual return on plan assets | (25,925 | ) | 40,308 | — | — | |||||||||||
Employer contributions | 17,715 | 21,483 | 1,674 | 1,737 | ||||||||||||
Benefits paid(1) | (21,918 | ) | (31,580 | ) | (1,674 | ) | (1,737 | ) | ||||||||
Fair value of plan assets at December 31 | $ | 257,797 | $ | 287,925 | $ | — | $ | — | ||||||||
Funded status at December 31 | $ | (197,771 | ) | $ | (198,364 | ) | $ | (28,172 | ) | $ | (28,927 | ) |
Regulatory Assets | Other Comprehensive Loss (Income) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In thousands | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | $ | (32,258) | $ | 16,170 | $ | 10,424 | $ | (688) | $ | 145 | $ | 1,809 | $ | (812) | $ | 3,873 | $ | 3,595 | ||||||||||||||||||||||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prior service (cost) credit | — | — | (7) | 468 | 468 | 468 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss | (21,250) | (18,627) | (14,057) | (645) | (607) | (369) | (1,225) | (923) | (648) | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (53,508) | $ | (2,457) | $ | (3,640) | $ | (865) | $ | 6 | $ | 1,908 | $ | (2,037) | $ | 2,950 | $ | 2,947 |
Regulatory Assets | Other Comprehensive Loss (Income) | |||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | ||||||||||||||||||||||||||||||||||
In thousands | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 14,261 | $ | 12,177 | $ | 14,005 | $ | (327 | ) | $ | (214 | ) | $ | (1,488 | ) | $ | (677 | ) | $ | 2,777 | $ | (1,196 | ) | |||||||||||||
Settlement Loss | — | — | — | — | — | — | — | — | 193 | |||||||||||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||||||||||||||
Prior service cost | (42 | ) | (127 | ) | (230 | ) | 468 | 468 | 468 | — | — | — | ||||||||||||||||||||||||
Actuarial loss | (18,761 | ) | (14,802 | ) | (13,238 | ) | (448 | ) | (696 | ) | (705 | ) | (1,052 | ) | (946 | ) | 1,386 | |||||||||||||||||||
Total | $ | (4,542 | ) | $ | (2,752 | ) | $ | 537 | $ | (307 | ) | $ | (442 | ) | $ | (1,725 | ) | $ | (1,729 | ) | $ | 1,831 | $ | 383 |
Regulatory Assets | AOCL | Regulatory Assets | AOCL | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Pension Benefits | Other Postretirement Benefits | Pension Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In thousands | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | In thousands | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Prior service cost (credit) | $ | 7 | $ | 49 | $ | (1,738 | ) | $ | (2,206 | ) | $ | — | $ | — | Prior service cost (credit) | $ | — | $ | — | $ | (333) | $ | (801) | $ | — | $ | — | |||||||||||||||||||||||||||||||||||
Net actuarial loss | 170,535 | 175,035 | 6,189 | 6,964 | 11,537 | 13,266 | Net actuarial loss | 112,182 | 164,446 | 5,834 | 7,167 | 15,399 | 17,434 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 170,542 | $ | 175,084 | $ | 4,451 | $ | 4,758 | $ | 11,537 | $ | 13,266 | Total | $ | 112,182 | $ | 164,446 | $ | 5,501 | $ | 6,366 | $ | 15,399 | $ | 17,434 |
Year ended December 31, | ||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||
Beginning balance | $ | (12,902) | $ | (10,733) | ||||||||||
Amounts reclassified to AOCL | 812 | (3,873) | ||||||||||||
Amounts reclassified from AOCL: | ||||||||||||||
Amortization of actuarial losses | 1,225 | 923 | ||||||||||||
Total reclassifications before tax | 2,037 | (2,950) | ||||||||||||
Tax (benefit) expense | (539) | 781 | ||||||||||||
Total reclassifications for the period | 1,498 | (2,169) | ||||||||||||
Ending balance | $ | (11,404) | $ | (12,902) |
Year Ended December 31, | |||||||
In thousands | 2018 | 2017 | |||||
Beginning balance | $ | (8,438 | ) | $ | (6,951 | ) | |
Amounts reclassified to AOCL | 642 | (2,794 | ) | ||||
Amounts reclassified from AOCL: | |||||||
Amortization of actuarial losses | 1,052 | 946 | |||||
Total reclassifications before tax | 1,694 | (1,848 | ) | ||||
Tax expense (benefit) | (444 | ) | 361 | ||||
Total reclassifications for the period | 1,250 | (1,487 | ) | ||||
Ending balance | $ | (7,188 | ) | $ | (8,438 | ) |
Asset Category | Target Allocation | ||||
Long government/credit | 20 | % | |||
U.S. large cap equity | 18 | ||||
Non-U.S. equity | 18 | ||||
Absolute return strategies | 12 | ||||
U.S. small/mid cap equity | 10 | ||||
Real estate funds | 7 | ||||
High yield bonds | 5 | ||||
Emerging markets equity | 5 | ||||
Emerging market debt | 5 |
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
In thousands | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Service cost | $ | 6,981 | $ | 6,614 | $ | 6,308 | $ | 238 | $ | 258 | $ | 244 | ||||||||||||||||||||||||||
Interest cost | 13,448 | 16,161 | 18,684 | 684 | 905 | 1,116 | ||||||||||||||||||||||||||||||||
Expected return on plan assets | (24,232) | (21,865) | (20,854) | — | — | — | ||||||||||||||||||||||||||||||||
Amortization of prior service cost (credit) | — | — | 7 | (468) | (468) | (468) | ||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | 22,475 | 19,550 | 14,704 | 645 | 607 | 368 | ||||||||||||||||||||||||||||||||
Net periodic benefit cost | 18,672 | 20,460 | 18,849 | 1,099 | 1,302 | 1,260 | ||||||||||||||||||||||||||||||||
Amount allocated to construction | (3,015) | (2,798) | (2,493) | (93) | (98) | (86) | ||||||||||||||||||||||||||||||||
Net periodic benefit cost charged to expense | 15,657 | 17,662 | 16,356 | 1,006 | 1,204 | 1,174 | ||||||||||||||||||||||||||||||||
Regulatory pension disallowance | — | — | 10,500 | — | — | — | ||||||||||||||||||||||||||||||||
Amortization of regulatory balancing account | 7,131 | 7,131 | 16,841 | — | — | — | ||||||||||||||||||||||||||||||||
Net amount charged to expense | $ | 22,788 | $ | 24,793 | $ | 43,697 | $ | 1,006 | $ | 1,204 | $ | 1,174 |
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||
In thousands | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
Service cost | $ | 7,185 | $ | 7,090 | $ | 7,083 | $ | 282 | $ | 341 | $ | 391 | ||||||||||||
Interest cost | 16,991 | 18,111 | 18,399 | 964 | 1,141 | 1,175 | ||||||||||||||||||
Expected return on plan assets | (20,639 | ) | (20,433 | ) | (20,054 | ) | — | — | — | |||||||||||||||
Amortization of prior service costs | 43 | 127 | 231 | (468 | ) | (468 | ) | (468 | ) | |||||||||||||||
Amortization of net actuarial loss | 19,813 | 15,748 | 14,624 | 448 | 696 | 705 | ||||||||||||||||||
Settlement expense | — | — | 193 | — | — | — | ||||||||||||||||||
Net periodic benefit cost | 23,393 | 20,643 | 20,476 | 1,226 | 1,710 | 1,803 | ||||||||||||||||||
Amount allocated to construction | (2,764 | ) | (6,597 | ) | (5,746 | ) | (98 | ) | (587 | ) | (600 | ) | ||||||||||||
Amount deferred to regulatory balancing account | (10,314 | ) | (6,542 | ) | (6,252 | ) | — | — | — | |||||||||||||||
Net amount charged to expense | $ | 10,315 | $ | 7,504 | $ | 8,478 | $ | 1,128 | $ | 1,123 | $ | 1,203 |
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Assumptions for net periodic benefit cost: | ||||||||||||||||||||||||||||||||||||||
Weighted-average discount rate | 2.40 | % | 3.18 | % | 4.19 | % | 2.34 | % | 3.11 | % | 4.13 | % | ||||||||||||||||||||||||||
Rate of increase in compensation | 3.50 | % | 3.50 | % | 3.25-3.50% | n/a | n/a | n/a | ||||||||||||||||||||||||||||||
Expected long-term rate of return | 7.25 | % | 7.25 | % | 7.50 | % | n/a | n/a | n/a | |||||||||||||||||||||||||||||
Assumptions for year-end funded status: | ||||||||||||||||||||||||||||||||||||||
Weighted-average discount rate | 2.71 | % | 2.36 | % | 3.16 | % | 2.72 | % | 2.34 | % | 3.11 | % | ||||||||||||||||||||||||||
Rate of increase in compensation(1) | 3.50 % | 3.50-6.50% | 3.50-6.50% | n/a | n/a | n/a | ||||||||||||||||||||||||||||||||
Expected long-term rate of return | 7.00 | % | 7.25 | % | 7.25 | % | n/a | n/a | n/a |
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||
Assumptions for net periodic benefit cost: | ||||||||||||||||||
Weighted-average discount rate | 3.51 | % | 3.99 | % | 4.17 | % | 3.44 | % | 3.85 | % | 4.00 | % | ||||||
Rate of increase in compensation | 3.25-4.5% | 3.25-4.5% | 3.25-4.5% | n/a | n/a | n/a | ||||||||||||
Expected long-term rate of return | 7.50 | % | 7.50 | % | 7.50 | % | n/a | n/a | n/a | |||||||||
Assumptions for year-end funded status: | ||||||||||||||||||
Weighted-average discount rate | 4.20 | % | 3.52 | % | 4.00 | % | 4.13 | % | 3.44 | % | 3.85 | % | ||||||
Rate of increase in compensation | 3.25-3.5% | 3.25-4.5% | 3.25-4.5% | n/a | n/a | n/a | ||||||||||||
Expected long-term rate of return | 7.50 | % | 7.50 | % | 7.50 | % | n/a | n/a | n/a |
In thousands | 1% Increase | 1% Decrease | ||||||
Effect on net periodic postretirement health care benefit cost | $ | 43 | $ | (39 | ) | |||
Effect on the accumulated postretirement benefit obligation | 622 | (560 | ) |
In thousands | Pension Benefits | Other Benefits | ||||||||||||
Employer Contributions: | ||||||||||||||
2020 | 31,362 | $ | 1,837 | |||||||||||
2021 | 11,944 | 2,050 | ||||||||||||
2022 (estimated) | 2,335 | 1,654 | ||||||||||||
Benefit Payments: | ||||||||||||||
2019 | 23,160 | 1,774 | ||||||||||||
2020 | 25,073 | 1,837 | ||||||||||||
2021 | 25,371 | 2,050 | ||||||||||||
Estimated Future Benefit Payments: | ||||||||||||||
2022 | 23,210 | 1,654 | ||||||||||||
2023 | 24,020 | 1,665 | ||||||||||||
2024 | 24,728 | 1,654 | ||||||||||||
2025 | 25,325 | 1,643 | ||||||||||||
2026 | 25,824 | 1,606 | ||||||||||||
2027-2031 | 133,617 | 7,640 |
In thousands | Pension Benefits | Other Benefits | ||||||
Employer Contributions: | ||||||||
2017 | $ | 21,483 | $ | 1,737 | ||||
2018 | 17,715 | 1,674 | ||||||
2019 (estimated) | 13,318 | 1,787 | ||||||
Benefit Payments: | ||||||||
2016 | 20,959 | 1,732 | ||||||
2017 | 31,580 | 1,737 | ||||||
2018 | 21,918 | 1,674 | ||||||
Estimated Future Benefit Payments: | ||||||||
2019 | 22,699 | 1,787 | ||||||
2020 | 23,622 | 1,846 | ||||||
2021 | 24,516 | 1,930 | ||||||
2022 | 25,316 | 1,941 | ||||||
2023 | 26,074 | 1,993 | ||||||
2024-2028 | 145,917 | 9,628 |
In thousands | December 31, 2021 | |||||||||||||||||||||||||||||||
Investments | Level 1 | Level 2 | Level 3 | Non-Published NAV(1) | Total | |||||||||||||||||||||||||||
US equity | $ | — | $ | — | $ | — | $ | 121,090 | $ | 121,090 | ||||||||||||||||||||||
International / Global equity | 35,456 | — | — | 88,078 | 123,534 | |||||||||||||||||||||||||||
Liability hedging | — | — | — | 118,464 | 118,464 | |||||||||||||||||||||||||||
Opportunistic | — | — | — | 33,808 | 33,808 | |||||||||||||||||||||||||||
Cash and cash equivalents | — | — | — | 2,321 | 2,321 | |||||||||||||||||||||||||||
Total investments | $ | 35,456 | $ | — | $ | — | $ | 363,761 | $ | 399,217 | ||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||
Investments | Level 1 | Level 2 | Level 3 | Non-Published NAV(1) | Total | |||||||||||||||||||||||||||
US equity | $ | — | $ | — | $ | — | $ | 117,764 | $ | 117,764 | ||||||||||||||||||||||
International / Global equity | 39,114 | — | — | 78,092 | 117,206 | |||||||||||||||||||||||||||
Liability hedging | — | — | — | 111,041 | 111,041 | |||||||||||||||||||||||||||
Opportunistic | — | — | — | 25,625 | 25,625 | |||||||||||||||||||||||||||
Cash and cash equivalents | — | — | — | 2,295 | 2,295 | |||||||||||||||||||||||||||
Total investments | $ | 39,114 | $ | — | $ | — | $ | 334,817 | $ | 373,931 | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||||||
Accrued interest and dividend income | $ | — | $ | 6,429 | ||||||||||||||||||||||||||||
Total receivables | — | 6,429 | ||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Due to broker for securities purchased | — | 6,429 | ||||||||||||||||||||||||||||||
Total investment in retirement trust | $ | 399,217 | $ | 373,931 |
In thousands | December 31, 2018 | |||||||||||||||||||
Investments | Level 1 | Level 2 | Level 3 | Non-Published NAV(1) | Total | |||||||||||||||
US equity | $ | — | $ | — | $ | — | $ | 85,233 | $ | 85,233 | ||||||||||
International / Global equity | 24,994 | — | — | 70,017 | 95,011 | |||||||||||||||
Liability hedging | — | — | — | 45,659 | 45,659 | |||||||||||||||
Opportunistic | — | — | — | 23,186 | 23,186 | |||||||||||||||
Cash and cash equivalents | — | — | — | 8,707 | 8,707 | |||||||||||||||
Total investments | $ | 24,994 | $ | — | $ | — | $ | 232,802 | $ | 257,796 | ||||||||||
December 31, 2017 | ||||||||||||||||||||
Investments | Level 1 | Level 2 | Level 3 | Non-Published NAV(1) | Total | |||||||||||||||
US equity | $ | — | $ | — | $ | — | $ | 98,375 | $ | 98,375 | ||||||||||
International / Global equity | 21,211 | — | — | 84,818 | 106,029 | |||||||||||||||
Liability hedging | — | — | — | 53,981 | 53,981 | |||||||||||||||
Opportunistic | — | — | — | 23,895 | 23,895 | |||||||||||||||
Cash and cash equivalents | 82 | — | — | 5,533 | 5,615 | |||||||||||||||
Total investments | $ | 21,293 | $ | — | $ | — | $ | 266,602 | $ | 287,895 | ||||||||||
December 31, | ||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||
Receivables: | ||||||||||||||||||||
Accrued interest and dividend income | $ | 1 | $ | 30 | ||||||||||||||||
Due from broker for securities sold | — | — | ||||||||||||||||||
Total receivables | $ | 1 | $ | 30 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Due to broker for securities purchased | $ | — | $ | — | ||||||||||||||||
Total investment in retirement trust | $ | 257,797 | $ | 287,925 |
NW Holdings | NW Natural | |||||||||||||||||||||||||||||||||||||
Dollars in thousands | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Income taxes at federal statutory rate | $22,275 | $19,185 | $16,370 | $22,996 | $19,248 | $17,438 | ||||||||||||||||||||||||||||||||
Increase (decrease): | ||||||||||||||||||||||||||||||||||||||
State income tax, net of federal | 9,962 | 6,389 | 4,422 | 10,150 | 6,385 | 4,716 | ||||||||||||||||||||||||||||||||
Differences required to be flowed-through by regulatory commissions | (4,655) | (3,960) | (5,772) | (4,738) | (3,960) | (5,772) | ||||||||||||||||||||||||||||||||
Regulatory settlement | — | — | (1,129) | — | — | (1,129) | ||||||||||||||||||||||||||||||||
Other, net | (176) | (532) | (1,249) | (75) | (578) | (1,188) | ||||||||||||||||||||||||||||||||
Total provision for income taxes | $27,406 | $21,082 | $12,642 | $28,333 | $21,095 | $14,065 | ||||||||||||||||||||||||||||||||
Effective tax rate | 25.8% | 23.1% | 16.2% | 25.9% | 23.0% | 16.9% |
NW Holdings | NW Natural | |||||||||||||||||||||||
Dollars in thousands | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
Income taxes at federal statutory rate | $ | 19,222 | $ | 39,578 | $ | 36,901 | $ | 19,434 | $ | 39,624 | $ | 37,137 | ||||||||||||
Increase (decrease): | ||||||||||||||||||||||||
State income tax, net of federal | 4,927 | 5,066 | 4,844 | 4,982 | 5,072 | 4,858 | ||||||||||||||||||
Differences required to be flowed-through by regulatory commissions | 1,302 | 2,357 | 2,357 | 1,302 | 2,357 | 2,357 | ||||||||||||||||||
Effect of the TCJA | — | (3,376 | ) | — | — | (2,956 | ) | — | ||||||||||||||||
Deferred tax rate differential post-TCJA | (76 | ) | — | — | (75 | ) | — | — | ||||||||||||||||
Other, net | (1,184 | ) | (2,617 | ) | (1,091 | ) | (1,184 | ) | (2,619 | ) | (1,077 | ) | ||||||||||||
Total provision for income taxes | $ | 24,191 | $ | 41,008 | $ | 43,011 | $ | 24,459 | $ | 41,478 | $ | 43,275 | ||||||||||||
Effective tax rate | 26.4 | % | 36.3 | % | 40.8 | % | 26.4 | % | 36.6 | % | 40.8 | % |
NW Holdings | NW Natural | |||||||||||||||||||||||||||||||||||||
In thousands | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||||||||||||||
Federal | $ | 6,508 | $ | 10,106 | $ | 5,530 | $ | 7,570 | $ | 11,092 | $ | 6,755 | ||||||||||||||||||||||||||
State | 6,281 | 5,971 | 1,667 | 7,540 | 5,357 | 2,101 | ||||||||||||||||||||||||||||||||
Total current income taxes | 12,789 | 16,077 | 7,197 | 15,110 | 16,449 | 8,856 | ||||||||||||||||||||||||||||||||
Deferred | ||||||||||||||||||||||||||||||||||||||
Federal | 8,289 | 2,888 | 1,515 | 7,915 | 1,921 | 1,340 | ||||||||||||||||||||||||||||||||
State | 6,328 | 2,117 | 3,930 | 5,308 | 2,725 | 3,869 | ||||||||||||||||||||||||||||||||
Total deferred income taxes | 14,617 | 5,005 | 5,445 | 13,223 | 4,646 | 5,209 | ||||||||||||||||||||||||||||||||
Income tax provision | $ | 27,406 | $ | 21,082 | $ | 12,642 | $ | 28,333 | $ | 21,095 | $ | 14,065 | ||||||||||||||||||||||||||
NW Holdings | NW Natural | |||||||||||||||||||||||
In thousands | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
Current | ||||||||||||||||||||||||
Federal | $ | 8,953 | $ | 19,345 | $ | 10,042 | $ | 9,127 | $ | 19,304 | $ | 10,158 | ||||||||||||
State | 3,785 | 5,963 | 3,116 | 3,846 | 5,956 | 3,131 | ||||||||||||||||||
12,738 | 25,308 | 13,158 | 12,973 | 25,260 | 13,289 | |||||||||||||||||||
Deferred | ||||||||||||||||||||||||
Federal | 9,001 | 13,869 | 25,473 | 9,025 | 14,371 | 25,581 | ||||||||||||||||||
��State | 2,452 | 1,831 | 4,380 | 2,461 | 1,847 | 4,405 | ||||||||||||||||||
11,453 | 15,700 | 29,853 | 11,486 | 16,218 | 29,986 | |||||||||||||||||||
Income tax provision | $ | 24,191 | $ | 41,008 | $ | 43,011 | $ | 24,459 | $ | 41,478 | $ | 43,275 |
NW Holdings | NW Natural | |||||||||||||||||||||||||
In thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||||||
Plant and property | $ | 310,471 | $ | 297,078 | $ | 303,928 | $ | 290,105 | ||||||||||||||||||
Leases receivable | 38,123 | 39,396 | 38,123 | 39,396 | ||||||||||||||||||||||
Pension and postretirement obligations | 23,097 | 25,066 | 23,097 | 25,066 | ||||||||||||||||||||||
Income tax regulatory asset | 14,818 | 17,104 | 14,818 | 17,104 | ||||||||||||||||||||||
Lease right of use assets | 21,362 | 21,613 | 21,350 | 21,596 | ||||||||||||||||||||||
Other | 7,793 | — | 8,003 | — | ||||||||||||||||||||||
Total deferred income tax liabilities | $ | 415,664 | $ | 400,257 | $ | 409,319 | $ | 393,267 | ||||||||||||||||||
Deferred income tax assets: | ||||||||||||||||||||||||||
Income tax regulatory liability | $ | 50,447 | $ | 52,590 | $ | 50,193 | $ | 52,366 | ||||||||||||||||||
Lease liabilities | 21,376 | 21,622 | 21,365 | 21,606 | ||||||||||||||||||||||
Other intangible assets | 3,484 | 4,485 | — | — | ||||||||||||||||||||||
Net operating losses and credits carried forward | 126 | 861 | 44 | 80 | ||||||||||||||||||||||
Other | — | 1,407 | — | 1,181 | ||||||||||||||||||||||
Total deferred income tax assets | $ | 75,433 | $ | 80,965 | $ | 71,602 | $ | 75,233 | ||||||||||||||||||
Total net deferred income tax liabilities | $ | 340,231 | $ | 319,292 | $ | 337,717 | $ | 318,034 | ||||||||||||||||||
NW Holdings | NW Natural | |||||||||||||||
In thousands | 2018 | 2017(1) | 2018 | 2017 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Plant and property | $ | 288,385 | $ | 278,735 | $ | 303,186 | $ | 296,113 | ||||||||
Pension and postretirement obligations | 27,135 | 23,352 | 27,135 | 23,352 | ||||||||||||
Income tax regulatory asset | 21,403 | 22,209 | 21,402 | 22,209 | ||||||||||||
Other | 1,061 | 2,766 | 537 | 2,250 | ||||||||||||
Total deferred income tax liabilities | $ | 337,984 | $ | 327,062 | $ | 352,260 | $ | 343,924 | ||||||||
Deferred income tax assets: | ||||||||||||||||
Income tax regulatory liability | $ | 57,469 | $ | 56,470 | $ | 57,469 | $ | 56,470 | ||||||||
Alternative minimum tax credit carryforward | 52 | 66 | 52 | 66 | ||||||||||||
Total deferred income tax assets | $ | 57,521 | $ | 56,536 | $ | 57,521 | $ | 56,536 | ||||||||
Total net deferred income tax liabilities | $ | 280,463 | $ | 270,526 | $ | 294,739 | $ | 287,388 |
In thousands | 2021 | 2020 | ||||||||||||
NW Natural: | ||||||||||||||
NGD plant in service | $ | 3,721,939 | $ | 3,548,543 | ||||||||||
NGD work in progress | 135,398 | 63,901 | ||||||||||||
Less: Accumulated depreciation | 1,098,715 | 1,055,809 | ||||||||||||
NGD plant, net | 2,758,622 | 2,556,635 | ||||||||||||
Other plant in service | 69,332 | 66,300 | ||||||||||||
Other construction work in progress | 4,971 | 5,032 | ||||||||||||
Less: Accumulated depreciation | 20,646 | 19,637 | ||||||||||||
Other plant, net | 53,657 | 51,695 | ||||||||||||
Total property, plant, and equipment | $ | 2,812,279 | $ | 2,608,330 | ||||||||||
Other (NW Holdings): | ||||||||||||||
Other plant in service | $ | 65,603 | $ | 50,263 | ||||||||||
Less: Accumulated depreciation | 6,512 | 3,823 | ||||||||||||
Other plant, net | 59,091 | 46,440 | ||||||||||||
NW Holdings: | ||||||||||||||
Total property, plant, and equipment | $ | 2,871,370 | $ | 2,654,770 | ||||||||||
NW Natural: | ||||||||||||||
Capital expenditures in accrued liabilities | $ | 37,537 | $ | 25,129 | ||||||||||
NW Holdings: | ||||||||||||||
Capital expenditures in accrued liabilities | $ | 38,333 | $ | 25,129 |
In thousands | 2018 | 2017 | ||||||
NW Natural: | ||||||||
NGD plant in service | $ | 3,134,122 | $ | 2,975,217 | ||||
NGD work in progress | 204,978 | 159,924 | ||||||
Less: Accumulated depreciation | 974,252 | 942,879 | ||||||
NGD plant, net | 2,364,848 | 2,192,262 | ||||||
Other plant in service | 66,009 | 64,997 | ||||||
Other construction work in progress | 5,330 | 4,122 | ||||||
Less: Accumulated depreciation | 18,603 | 17,406 | ||||||
Other plant, net(1) | 52,736 | 51,713 | ||||||
Total property, plant, and equipment | $ | 2,417,584 | $ | 2,243,975 | ||||
Other (NW Holdings): | ||||||||
Other plant in service | $ | 4,051 | $ | 375 | ||||
Less: Accumulated depreciation | 263 | 192 | ||||||
Other plant, net(1) | 3,788 | 183 | ||||||
NW Holdings: | ||||||||
Total property, plant, and equipment | $ | 2,421,372 | $ | 2,244,158 | ||||
NW Natural and NW Holdings: | ||||||||
Capital expenditures in accrued liabilities | $ | 23,676 | $ | 34,761 |
In thousands | 2018 | 2017 | ||||||
Gas reserves, current | $ | 16,647 | $ | 15,704 | ||||
Gas reserves, non-current | 170,660 | 171,832 | ||||||
Less: Accumulated amortization | 104,463 | 87,779 | ||||||
Total gas reserves(1) | 82,844 | 99,757 | ||||||
Less: Deferred taxes on gas reserves | 20,071 | 22,712 | ||||||
Net investment in gas reserves | $ | 62,773 | $ | 77,045 |
NW Holdings | NW Natural | |||||||||||||||||||||||||
In thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Investments in life insurance policies | $ | 48,178 | $ | 49,241 | $ | 48,178 | $ | 49,242 | ||||||||||||||||||
Investments in gas reserves, non-current | 26,608 | 34,484 | 26,608 | 34,484 | ||||||||||||||||||||||
Investment in unconsolidated affiliates | 14,492 | 18 | — | — | ||||||||||||||||||||||
Total other investments | $ | 89,278 | $ | 83,743 | $ | 74,786 | $ | 83,726 |
NW Holdings | NW Natural | |||||||||||||||
In thousands | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Investments in life insurance policies | $ | 49,922 | $ | 50,792 | $ | 49,922 | $ | 50,792 | ||||||||
Investments in gas pipeline | 13,571 | 13,669 | — | — | ||||||||||||
Other | 65 | 1,902 | — | 1,862 | ||||||||||||
Total other investments | $ | 63,558 | $ | 66,363 | $ | 49,922 | $ | 52,654 |
At December 31, | ||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||
Natural gas (in therms): | ||||||||||||||
Financial | 618,815 | 784,400 | ||||||||||||
Physical | 431,628 | 457,593 | ||||||||||||
Foreign exchange | $ | 6,268 | $ | 5,896 |
At December 31, | ||||||||
In thousands | 2018 | 2017 | ||||||
Natural gas (in therms): | ||||||||
Financial | 408,850 | 429,100 | ||||||
Physical | 472,275 | 520,268 | ||||||
Foreign exchange | $ | 6,936 | $ | 7,669 |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
In thousands | Natural gas commodity | Foreign exchange | Natural gas commodity | Foreign exchange | ||||||||||||||||||||||
Benefit (expense) to cost of gas | $ | 36,539 | $ | (26) | $ | 7,342 | $ | 312 | ||||||||||||||||||
Operating revenues (expense) | (26) | — | (1,212) | — | ||||||||||||||||||||||
Amounts deferred to regulatory accounts on balance sheet | (36,517) | 26 | (6,306) | (312) | ||||||||||||||||||||||
Total gain (loss) in pre-tax earnings | $ | (4) | $ | — | $ | (176) | $ | — |
December 31, 2018 | December 31, 2017 | |||||||||||||||
In thousands | Natural gas commodity | Foreign exchange | Natural gas commodity | Foreign exchange | ||||||||||||
Benefit (expense) to cost of gas | $ | (1,239 | ) | $ | (284 | ) | $ | (26,000 | ) | $ | 107 | |||||
Operating revenues | 1,660 | — | (1,021 | ) | — | |||||||||||
Amounts deferred to regulatory accounts on balance sheet | (211 | ) | 284 | 26,665 | (107 | ) | ||||||||||
Total gain (loss) in pre-tax earnings | $ | 210 | $ | — | $ | (356 | ) | $ | — |
Credit Rating Downgrade Scenarios | ||||||||||||||||||||
In thousands | (Current Ratings) A+/A3 | BBB+/Baa1 | BBB/Baa2 | BBB-/Baa3 | Specu-lative | |||||||||||||||
With Adequate Assurance Calls | $ | — | $ | — | $ | — | $ | (3,940 | ) | $ | (6,059 | ) | ||||||||
Without Adequate Assurance Calls | — | — | — | (3,940 | ) | (4,452 | ) |
In thousands | Minimum lease payments | |||
2019 | $ | 5,368 | ||
2020 | 4,812 | |||
2021 | 7,077 | |||
2022 | 7,223 | |||
2023 | 7,304 | |||
Thereafter | 149,881 | |||
Total | $ | 181,665 |
In thousands | Gas Purchase Agreements | Pipeline Capacity Purchase Agreements | Pipeline Capacity Release Agreements | |||||||||
2019 | $ | 144,500 | $ | 78,449 | $ | 4,272 | ||||||
2020 | 2,776 | 76,613 | 3,560 | |||||||||
2021 | 2,313 | 66,656 | — | |||||||||
2022 | — | 61,075 | — | |||||||||
2023 | — | 60,619 | — | |||||||||
Thereafter | — | 580,022 | — | |||||||||
Total | 149,589 | 923,434 | 7,832 | |||||||||
Less: Amount representing interest | 1,314 | 201,224 | 183 | |||||||||
Total at present value | $ | 148,275 | $ | 722,210 | $ | 7,649 |
In thousands | Gas Purchase Agreements(1) | Pipeline Capacity Purchase Agreements | Pipeline Capacity Release Agreements | |||||||||||||||||
2022 | $ | 168,296 | $ | 85,335 | $ | 7,596 | ||||||||||||||
2023 | 6,376 | 87,449 | 4,036 | |||||||||||||||||
2024 | 6,426 | 80,923 | 4,036 | |||||||||||||||||
2025 | 12,076 | 78,449 | 3,363 | |||||||||||||||||
2026 | 12,133 | 63,608 | — | |||||||||||||||||
Thereafter | 203,500 | 507,666 | — | |||||||||||||||||
Total | 408,807 | 903,430 | 19,031 | |||||||||||||||||
Less: Amount representing interest | 44,571 | 119,202 | 382 | |||||||||||||||||
Total at present value | $ | 364,236 | $ | 784,228 | $ | 18,649 |
Current Liabilities | Non-Current Liabilities | |||||||||||||||||||||||||
In thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Portland Harbor site: | ||||||||||||||||||||||||||
Gasco/Siltronic Sediments | $ | 7,582 | $ | 7,596 | $ | 42,076 | $ | 43,725 | ||||||||||||||||||
Other Portland Harbor | 2,592 | 1,942 | 9,570 | 7,020 | ||||||||||||||||||||||
Gasco/Siltronic Upland site | 15,711 | 14,887 | 36,215 | 40,250 | ||||||||||||||||||||||
Front Street site | 1,100 | 3,816 | 811 | 1,107 | ||||||||||||||||||||||
Oregon Steel Mills | — | — | 179 | 179 | ||||||||||||||||||||||
Total | $ | 26,985 | $ | 28,241 | $ | 88,851 | $ | 92,281 |
Current Liabilities | Non-Current Liabilities | |||||||||||||||
In thousands | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Portland Harbor site: | ||||||||||||||||
Gasco/Siltronic Sediments | $ | 5,117 | $ | 2,683 | $ | 44,351 | $ | 45,346 | ||||||||
Other Portland Harbor | 2,600 | 1,949 | 6,273 | 4,163 | ||||||||||||
Gasco/Siltronic Upland site | 13,983 | 13,422 | 44,830 | 47,835 | ||||||||||||
Central Service Center site | 10 | 25 | — | — | ||||||||||||
Front Street site | 11,402 | 1,009 | 3 | 10,757 | ||||||||||||
Oregon Steel Mills | — | — | 179 | 179 | ||||||||||||
Total | $ | 33,112 | $ | 19,088 | $ | 95,636 | $ | 108,280 |
In thousands | 2021 | 2020 | ||||||||||||
Deferred costs and interest(1) | $ | 45,122 | $ | 44,516 | ||||||||||
Accrued site liabilities(2) | 115,773 | 120,352 | ||||||||||||
Insurance proceeds and interest | (59,564) | (69,253) | ||||||||||||
Total regulatory asset deferral(1) | $ | 101,331 | $ | 95,615 | ||||||||||
Current regulatory assets(3) | $ | 6,694 | $ | 4,992 | ||||||||||
Long-term regulatory assets(3) | $ | 94,636 | $ | 90,623 |
In thousands | 2018 | 2017 | ||||||
Deferred costs and interest (1) | $ | 41,883 | $ | 45,546 | ||||
Accrued site liabilities (2) | 128,369 | 126,950 | ||||||
Insurance proceeds and interest | (88,502 | ) | (94,170 | ) | ||||
Total regulatory asset deferral(1) | $ | 81,750 | $ | 78,326 | ||||
Current regulatory assets(3) | 5,601 | 6,198 | ||||||
Long-term regulatory assets(3) | 76,149 | 72,128 |
NW Holdings Discontinued Operations | ||||||||
In thousands | 2018 | 2017 | ||||||
Assets: | ||||||||
Accounts receivable | $ | 390 | $ | 2,126 | ||||
Inventories | 685 | 396 | ||||||
Other current assets | 333 | 535 | ||||||
Property, plant, and equipment | 11,621 | 10,816 | ||||||
Less: Accumulated depreciation | 7 | — | ||||||
Other non-current assets | 247 | 1 | ||||||
Discontinued operations - current assets | 13,269 | 3,057 | ||||||
Discontinued operations - non-current assets | — | 10,817 | ||||||
Total discontinued operations assets | $ | 13,269 | $ | 13,874 | ||||
Liabilities: | ||||||||
Accounts payable | $ | 873 | $ | 1,287 | ||||
Other current liabilities | 307 | 306 | ||||||
Other non-current liabilities | 11,779 | 12,043 | ||||||
Discontinued operations - current liabilities | 12,959 | 1,593 | ||||||
Discontinued operations - non-current liabilities | — | 12,043 | ||||||
Total discontinued operations liabilities | $ | 12,959 | $ | 13,636 |
NW Holdings Discontinued Operations | ||||||||||||
In thousands, except per share data | 2018 | 2017 | 2016 | |||||||||
Revenues | $ | 3,579 | $ | 7,135 | $ | 7,794 | ||||||
Expenses | ||||||||||||
Operations and maintenance | 5,771 | 7,245 | 6,643 | |||||||||
General taxes | 479 | 1,373 | 1,295 | |||||||||
Depreciation and amortization | 430 | 4,525 | 4,685 | |||||||||
Other expenses and interest | 609 | 975 | 992 | |||||||||
Impairment expense | — | 192,478 | — | |||||||||
Total expenses | 7,289 | 206,596 | 13,615 | |||||||||
Loss from discontinued operations before income tax | (3,710 | ) | (199,461 | ) | (5,821 | ) | ||||||
Income tax benefit(1) | (968 | ) | (71,765 | ) | (2,297 | ) | ||||||
Loss from discontinued operations, net of tax | $ | (2,742 | ) | $ | (127,696 | ) | $ | (3,524 | ) | |||
Loss from discontinued operations per share of common stock: | ||||||||||||
Basic | $ | (0.10 | ) | $ | (4.45 | ) | $ | (0.13 | ) | |||
Diluted | $ | (0.09 | ) | $ | (4.44 | ) | $ | (0.13 | ) |
NW Holdings Discontinued Operations | ||||||||||||||
In thousands | 2020 | 2019 | ||||||||||||
Revenues | $ | 10,193 | $ | 5,301 | ||||||||||
Expenses | ||||||||||||||
Operations and maintenance | 7,931 | 8,587 | ||||||||||||
General taxes | 198 | 219 | ||||||||||||
Depreciation and amortization | 391 | 423 | ||||||||||||
Other expenses and interest | 848 | 931 | ||||||||||||
Total expenses | 9,368 | 10,160 | ||||||||||||
Income (loss) from discontinued operations | 825 | (4,859) | ||||||||||||
Gain on sale of discontinued operations | 8,027 | — | ||||||||||||
Income (loss) from discontinued operations before income tax | 8,852 | (4,859) | ||||||||||||
Income tax expense (benefit)(1) | 2,344 | (1,283) | ||||||||||||
Income (loss) from discontinued operations, net of tax | $ | 6,508 | $ | (3,576) | ||||||||||
(1) Includes income tax expense of $2.1 million related to the sale of Gill Ranch for the year ended December 31, 2020. |
NW Natural Discontinued Operations | ||||
In thousands | 2017 | |||
Assets: | ||||
Cash | $ | 362 | ||
Accounts receivable | 2,126 | |||
Intercompany receivables | 3,664 | |||
Inventories | 396 | |||
Other current assets | 622 | |||
Property, plant, and equipment | 11,191 | |||
Less: Accumulated depreciation | 192 | |||
Other investments | 13,710 | |||
Other non-current assets | — | |||
Discontinued operations - current assets | 7,170 | |||
Discontinued operations - non-current assets | 24,709 | |||
Total discontinued operations assets | $ | 31,879 | ||
Liabilities: | ||||
Accounts payable | $ | 1,954 | ||
Intercompany payables | 266 | |||
Other current liabilities | 345 | |||
Deferred tax liabilities | (16,862 | ) | ||
Other non-current liabilities | 12,130 | |||
Discontinued operations - current liabilities | 2,565 | |||
Discontinued operations - non-current liabilities | (4,732 | ) | ||
Total discontinued operations liabilities | $ | (2,167 | ) |
NW Natural Discontinued Operations | ||||||||||||
In thousands, except per share data | 2018 | 2017 | 2016 | |||||||||
Revenues | $ | 3,016 | $ | 7,360 | $ | 8,018 | ||||||
Expenses | ||||||||||||
Operations and maintenance | 4,151 | 7,423 | 7,387 | |||||||||
General taxes | 448 | 1,410 | 1,317 | |||||||||
Depreciation and amortization | 420 | 4,555 | 4,714 | |||||||||
Other expenses and interest | 342 | 650 | 1,097 | |||||||||
Impairment expense | — | 192,478 | — | |||||||||
Total expenses | 5,361 | 206,516 | 14,515 | |||||||||
Loss from discontinued operations before income tax | (2,345 | ) | (199,156 | ) | (6,497 | ) | ||||||
Income tax benefit(1) | (622 | ) | (71,813 | ) | (2,557 | ) | ||||||
Loss from discontinued operations, net of tax | $ | (1,723 | ) | $ | (127,343 | ) | $ | (3,940 | ) |
NW Holdings | ||||||||||||||||
Quarter ended(1) | ||||||||||||||||
In thousands, except per share data | March 31 | June 30 | September 30 | December 31 | ||||||||||||
2018 | ||||||||||||||||
Operating revenues | $ | 263,635 | $ | 124,567 | $ | 91,239 | $ | 226,702 | ||||||||
Net income (loss) from continuing operations | 42,011 | (339 | ) | (11,144 | ) | 36,783 | ||||||||||
Loss from discontinued operations, net of tax | (474 | ) | (659 | ) | (650 | ) | (959 | ) | ||||||||
Net income (loss) | 41,537 | (998 | ) | (11,794 | ) | 35,824 | ||||||||||
Average common shares outstanding: | ||||||||||||||||
Basic | 28,753 | 28,791 | 28,815 | 28,851 | ||||||||||||
Diluted | 28,803 | 28,791 | 28,815 | 28,940 | ||||||||||||
Earnings (loss) from continuing operations per share of common stock: | ||||||||||||||||
Basic | 1.46 | (0.01 | ) | (0.39 | ) | 1.27 | ||||||||||
Diluted | 1.46 | (0.01 | ) | (0.39 | ) | 1.27 | ||||||||||
Loss from discontinued operations per share of common stock: | ||||||||||||||||
Basic | (0.02 | ) | (0.02 | ) | (0.02 | ) | (0.03 | ) | ||||||||
Diluted | (0.02 | ) | (0.02 | ) | (0.02 | ) | (0.03 | ) | ||||||||
Earnings (loss) per share of common stock: | ||||||||||||||||
Basic | 1.44 | (0.03 | ) | (0.41 | ) | 1.24 | ||||||||||
Diluted | 1.44 | (0.03 | ) | (0.41 | ) | 1.24 | ||||||||||
2017 | ||||||||||||||||
Operating revenues | $ | 295,724 | $ | 134,476 | $ | 86,212 | $ | 238,626 | ||||||||
Net income (loss) from continuing operations | 41,397 | 4,075 | (7,887 | ) | 34,488 | |||||||||||
Loss from discontinued operations, net of tax | (1,087 | ) | (1,346 | ) | (608 | ) | (124,655 | ) | ||||||||
Net income (loss) | 40,310 | 2,729 | (8,495 | ) | (90,167 | ) | ||||||||||
Average common shares outstanding: | ||||||||||||||||
Basic | 28,633 | 28,648 | 28,678 | 28,716 | ||||||||||||
Diluted | 28,723 | 28,717 | 28,678 | 28,797 | ||||||||||||
Earnings (loss) from continuing operations per share of common stock: | ||||||||||||||||
Basic | 1.45 | 0.14 | (0.28 | ) | 1.20 | |||||||||||
Diluted | 1.44 | 0.14 | (0.28 | ) | 1.20 | |||||||||||
Loss from discontinued operations per share of common stock: | ||||||||||||||||
Basic | (0.04 | ) | (0.04 | ) | (0.02 | ) | (4.34 | ) | ||||||||
Diluted | (0.04 | ) | (0.04 | ) | (0.02 | ) | (4.33 | ) | ||||||||
Earnings (loss) per share of common stock: | ||||||||||||||||
Basic | 1.41 | 0.10 | (0.30 | ) | (3.14 | ) | ||||||||||
Diluted | 1.40 | 0.10 | (0.30 | ) | (3.13 | ) |
NW Natural | ||||||||||||||||
Quarter ended | ||||||||||||||||
In thousands | March 31 | June 30 | September 30 | December 31 | ||||||||||||
2018 | ||||||||||||||||
Operating revenues | $ | 263,635 | $ | 124,563 | $ | 91,227 | $ | 226,146 | ||||||||
Net income (loss) from continuing operations | 42,014 | (271 | ) | (11,275 | ) | 37,581 | ||||||||||
Loss from discontinued operations, net of tax | (477 | ) | (727 | ) | (519 | ) | — | |||||||||
Net income (loss) | 41,537 | (998 | ) | (11,794 | ) | 37,581 | ||||||||||
2017 | ||||||||||||||||
Operating revenues | $ | 295,668 | $ | 134,420 | $ | 86,157 | $ | 238,793 | ||||||||
Net income (loss) from continuing operations | 41,438 | 4,072 | (7,876 | ) | 34,086 | |||||||||||
Loss from discontinued operations, net of tax | (1,128 | ) | (1,343 | ) | (619 | ) | (124,253 | ) | ||||||||
Net income (loss) | 40,310 | 2,729 | (8,495 | ) | (90,167 | ) |
NORTHWEST NATURAL HOLDING COMPANY CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (PARENT COMPANY ONLY) | ||||
In thousands | Inception through December 31, 2018 | |||
Operating expenses: | ||||
Operations and maintenance | $ | 838 | ||
Total operating expenses | 838 | |||
Loss from operations | (838 | ) | ||
Earnings from investment in subsidiaries, net of tax | 36,469 | |||
Other income (expense), net | 36 | |||
Interest expense, net | 53 | |||
Income before income taxes | 35,614 | |||
Income tax expense (benefit) | (225 | ) | ||
Net income | $ | 35,839 |
Year Ended December 31, | ||||||||||||||||||||
In thousands | 2021 | 2020 | 2019 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Operations and maintenance | $ | 4,837 | $ | 771 | $ | 2,747 | ||||||||||||||
Total operating expenses | 4,837 | 771 | 2,747 | |||||||||||||||||
Loss from operations | (4,837) | (771) | (2,747) | |||||||||||||||||
Earnings from investment in subsidiaries, net of tax | 83,072 | 78,450 | 64,328 | |||||||||||||||||
Other income (expense), net | (143) | 57 | (22) | |||||||||||||||||
Interest expense, net | 982 | 1,557 | 726 | |||||||||||||||||
Income before income taxes | 77,110 | 76,179 | 60,833 | |||||||||||||||||
Income tax benefit | (1,556) | (602) | (902) | |||||||||||||||||
Net income | 78,666 | 76,781 | 61,735 | |||||||||||||||||
Other comprehensive income (loss) from subsidiaries, net of tax | 1,498 | (2,169) | (2,179) | |||||||||||||||||
Comprehensive income | $ | 80,164 | $ | 74,612 | $ | 59,556 |
NORTHWEST NATURAL HOLDING COMPANY CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY) | ||||
As of December 31, | ||||
In thousands | 2018 | |||
Assets: | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 4,011 | ||
Receivables from affiliates | 2,796 | |||
Income taxes receivable | 6,000 | |||
Other current assets | 3,078 | |||
Total current assets | 15,885 | |||
Non-current assets: | ||||
Investments in subsidiaries | 754,971 | |||
Other investments | 65 | |||
Other non-current assets | 310 | |||
Total non-current assets | 755,346 | |||
Total assets | $ | 771,231 | ||
Liabilities and equity: | ||||
Current liabilities: | ||||
Accounts payable | 168 | |||
Payables to affiliates | 9,166 | |||
Interest accrued | 32 | |||
Total current liabilities | 9,366 | |||
Long-term debt | (1 | ) | ||
Deferred credits and other non-current liabilities: | ||||
Deferred tax liabilities | 7 | |||
Total deferred credits and other non-current liabilities | 7 | |||
Equity: | ||||
Common stock | 739,722 | |||
Retained earnings | 22,137 | |||
Total equity | 761,859 | |||
Total liabilities and equity | $ | 771,231 |
As of December 31, | ||||||||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||||||||
Assets: | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 265 | $ | 11,267 | ||||||||||||||||
Receivables from affiliates | 2,180 | 14,738 | ||||||||||||||||||
Income taxes receivable | — | 6,000 | ||||||||||||||||||
Other current assets | 11,348 | 6,223 | ||||||||||||||||||
Total current assets | 13,793 | 38,228 | ||||||||||||||||||
Non-current assets: | ||||||||||||||||||||
Investments in subsidiaries | 1,080,949 | 936,184 | ||||||||||||||||||
Other investments | 42 | 17 | ||||||||||||||||||
Deferred tax assets | 383 | 171 | ||||||||||||||||||
Other non-current assets | 613 | 213 | ||||||||||||||||||
Total non-current assets | 1,081,987 | 936,585 | ||||||||||||||||||
Total assets | $ | 1,095,780 | $ | 974,813 | ||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Short-term debt | $ | 144,000 | $ | 73,000 | ||||||||||||||||
Accounts payable | 286 | 119 | ||||||||||||||||||
Payables to affiliates | 16,105 | 12,912 | ||||||||||||||||||
Other current liabilities | 243 | 49 | ||||||||||||||||||
Total current liabilities | 160,634 | 86,080 | ||||||||||||||||||
Total equity | 935,146 | 888,733 | ||||||||||||||||||
Total liabilities and equity | $ | 1,095,780 | $ | 974,813 |
NORTHWEST NATURAL HOLDING COMPANY CONDENSED STATEMENTS OF CASH FLOWS (PARENT COMPANY ONLY) | ||||
In thousands | Inception through December 31, 2018 | |||
Operating activities: | ||||
Net income | $ | 35,839 | ||
Adjustments to reconcile net income to cash used in operations: | ||||
Equity in earnings of subsidiaries, net of tax | (36,469 | ) | ||
Deferred income taxes | 7 | |||
Other | 15 | |||
Changes in assets and liabilities: | ||||
Receivables, net | (585 | ) | ||
Income and other taxes | (9,034 | ) | ||
Accounts payable | 9,304 | |||
Interest accrued | 32 | |||
Other, net | (44 | ) | ||
Cash used in operating activities | (935 | ) | ||
Investing activities: | ||||
Contributions to subsidiaries | (1,804 | ) | ||
Cash used in investing activities | (1,804 | ) | ||
Financing activities: | ||||
Cash dividend payments on common stock | (12,923 | ) | ||
Capital contributions | 20,000 | |||
Other | (327 | ) | ||
Cash provided by financing activities | 6,750 | |||
Increase in cash and cash equivalents | 4,011 | |||
Cash and cash equivalents, beginning of period | — | |||
Cash and cash equivalents, end of period | $ | 4,011 |
Year Ended December 31, | ||||||||||||||||||||||||||||||||
In thousands | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||||||||||
Net income | $ | 78,666 | $ | 76,781 | $ | 61,735 | ||||||||||||||||||||||||||
Adjustments to reconcile net income to cash used in operations: | ||||||||||||||||||||||||||||||||
Equity in earnings of subsidiaries, net of tax | (83,072) | (78,450) | (64,328) | |||||||||||||||||||||||||||||
Cash dividends received from subsidiaries | 56,057 | 55,387 | 53,439 | |||||||||||||||||||||||||||||
Deferred income taxes | (212) | 20 | (198) | |||||||||||||||||||||||||||||
Other | 119 | 65 | 66 | |||||||||||||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||||||||||
Receivables from affiliates | 12,558 | (12,788) | 846 | |||||||||||||||||||||||||||||
Income and other taxes | 1,299 | (7,451) | 4,325 | |||||||||||||||||||||||||||||
Accounts payable | 3,342 | 8,809 | (5,177) | |||||||||||||||||||||||||||||
Interest accrued | 57 | 77 | (32) | |||||||||||||||||||||||||||||
Other, net | (313) | (364) | (346) | |||||||||||||||||||||||||||||
Cash provided by operating activities | 68,501 | 42,086 | 50,330 | |||||||||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||||||||||
Contributions to subsidiaries | (142,405) | (47,194) | (157,591) | |||||||||||||||||||||||||||||
Return of capital from subsidiaries | 26,000 | 19,000 | 35,000 | |||||||||||||||||||||||||||||
Cash used in investing activities | (116,405) | (28,194) | (122,591) | |||||||||||||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||||||||||
Proceeds from common stock issued, net | 17,501 | — | 92,956 | |||||||||||||||||||||||||||||
Changes in other short-term debt, net | 71,000 | 49,000 | 24,000 | |||||||||||||||||||||||||||||
Cash dividend payments on common stock | (55,919) | (55,420) | (53,339) | |||||||||||||||||||||||||||||
Other | 4,320 | 3,676 | 4,752 | |||||||||||||||||||||||||||||
Cash provided by (used in) financing activities | 36,902 | (2,744) | 68,369 | |||||||||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | (11,002) | 11,148 | (3,892) | |||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 11,267 | 119 | 4,011 | |||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 265 | $ | 11,267 | $ | 119 |
COLUMN A | COLUMN B | COLUMN C | COLUMN D | COLUMN E | ||||||||||||||||||||||||||||
Additions | Deductions | |||||||||||||||||||||||||||||||
In thousands (year ended December 31) | Balance at beginning of period | Charged to costs and expenses | Charged to other accounts | Net write-offs | Balance at end of period | |||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||
Reserves deducted in balance sheet from assets to which they apply: | ||||||||||||||||||||||||||||||||
Allowance for uncollectible accounts | $ | 3,219 | $ | 724 | $ | (219) | $ | 1,706 | $ | 2,018 | ||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||
Reserves deducted in balance sheet from assets to which they apply: | ||||||||||||||||||||||||||||||||
Allowance for uncollectible accounts | $ | 673 | $ | 890 | $ | 2,333 | $ | 677 | $ | 3,219 | ||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Reserves deducted in balance sheet from assets to which they apply: | ||||||||||||||||||||||||||||||||
Allowance for uncollectible accounts | $ | 977 | $ | 450 | $ | — | $ | 754 | $ | 673 |
COLUMN A | COLUMN B | COLUMN C | COLUMN D | COLUMN E | ||||||||||||||||
Additions | Deductions | |||||||||||||||||||
In thousands (year ended December 31) | Balance at beginning of period | Charged to costs and expenses | Charged to other accounts | Net write-offs | Balance at end of period | |||||||||||||||
2018 | ||||||||||||||||||||
Reserves deducted in balance sheet from assets to which they apply: | ||||||||||||||||||||
Allowance for uncollectible accounts | $ | 956 | $ | 680 | $ | — | $ | 659 | $ | 977 | ||||||||||
2017 | ||||||||||||||||||||
Reserves deducted in balance sheet from assets to which they apply: | ||||||||||||||||||||
Allowance for uncollectible accounts | $ | 1,290 | $ | 865 | $ | — | $ | 1,199 | $ | 956 | ||||||||||
2016 | ||||||||||||||||||||
Reserves deducted in balance sheet from assets to which they apply: | ||||||||||||||||||||
Allowance for uncollectible accounts | $ | 870 | $ | 1,246 | $ | — | $ | 826 | $ | 1,290 |
COLUMN A | COLUMN B | COLUMN C | COLUMN D | COLUMN E | ||||||||||||||||||||||||||||
Additions | Deductions | |||||||||||||||||||||||||||||||
In thousands (year ended December 31) | Balance at beginning of period | Charged to costs and expenses | Charged to other accounts | Net write-offs | Balance at end of period | |||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||
Reserves deducted in balance sheet from assets to which they apply: | ||||||||||||||||||||||||||||||||
Allowance for uncollectible accounts | $ | 3,107 | $ | 780 | $ | (219) | $ | 1,706 | $ | 1,962 | ||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||
Reserves deducted in balance sheet from assets to which they apply: | ||||||||||||||||||||||||||||||||
Allowance for uncollectible accounts | $ | 672 | $ | 779 | $ | 2,333 | $ | 677 | $ | 3,107 | ||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Reserves deducted in balance sheet from assets to which they apply: | ||||||||||||||||||||||||||||||||
Allowance for uncollectible accounts | $ | 975 | $ | 450 | $ | — | $ | 753 | $ | 672 |
COLUMN A | COLUMN B | COLUMN C | COLUMN D | COLUMN E | ||||||||||||||||
Additions | Deductions | |||||||||||||||||||
In thousands (year ended December 31) | Balance at beginning of period | Charged to costs and expenses | Charged to other accounts | Net write-offs | Balance at end of period | |||||||||||||||
2018 | ||||||||||||||||||||
Reserves deducted in balance sheet from assets to which they apply: | ||||||||||||||||||||
Allowance for uncollectible accounts | $ | 956 | $ | 678 | $ | — | $ | 659 | $ | 975 | ||||||||||
2017 | ||||||||||||||||||||
Reserves deducted in balance sheet from assets to which they apply: | ||||||||||||||||||||
Allowance for uncollectible accounts | $ | 1,290 | $ | 865 | $ | — | $ | 1,199 | $ | 956 | ||||||||||
2016 | ||||||||||||||||||||
Reserves deducted in balance sheet from assets to which they apply: | ||||||||||||||||||||
Allowance for uncollectible accounts | $ | 870 | $ | 1,246 | $ | — | $ | 826 | $ | 1,290 |
EXECUTIVE OFFICERS | ||||||||||||||
Name | Age at Dec. 31, | Positions held during last five years(1) | ||||||||||||
David H. Anderson* | President and Chief Executive Officer | |||||||||||||
Frank H. Burkhartsmeyer* | Senior Vice President and Chief Financial Officer(2) (2017- ); President and Chief Executive Officer of Renewables, Avangrid Renewables (2015-2017); Senior Vice President of Finance, Iberdrola Renewables Holdings, Inc. (2012-2015). | |||||||||||||
James R. Downing | Vice President and Chief Information Officer (2017- ); Chief Information Officer, WorleyParsons (America's Division) (2016-2017); Executive Service Delivery Manager for SAP, British Petroleum (2011-2015). | |||||||||||||
Shawn M. Filippi* | Vice President, Chief Compliance Officer and Corporate Secretary(2) (2016- ); Vice President and Corporate Secretary (2015-2016); Senior Legal Counsel (2011-2014); Assistant Corporate Secretary (2010-2014). | |||||||||||||
Kimberly A. Heiting | Senior Vice President, Operations and Chief Marketing Officer (2018- ); Senior Vice President, Communications and Chief Marketing Officer (2018); Vice President, Communications and Chief Marketing Officer (2015-2018); Chief Marketing | |||||||||||||
Jon G. Huddleston | Vice President, Engineering and Utility Operations (2018- ); Senior Director, Utility Operations (2014-2018); Director, Utility Operations (2013-2014); Process Director (2007-2013). | |||||||||||||
Vice President, Strategy and Business Development (2017- ); President, NW Natural Water (2018- ); Vice President, Business Development (2016-2017); Director, Power, Energy and Infrastructure Group, Lazard, Freres & Co. (2009-2016). | ||||||||||||||
Melinda B. Rogers | Vice President, Chief Human Resources and Diversity Officer (2018- ); Senior Director of Human Resources (2018); Senior Manager, Organizational Effectiveness and Talent Acquisition (2015-2017); Senior Associate, | |||||||||||||
MardiLyn Saathoff* | Senior Vice President, Regulation and General Counsel | |||||||||||||
David A. Weber | Vice President, Gas Supply and Utility Support Services (2019- ); President and Chief Executive Officer, NW Natural Gas Storage, LLC (2011- ); President and Chief Executive Officer, Gill Ranch Storage, LLC | |||||||||||||
Kathryn M. Williams | 46 | Vice President, Public Affairs and Sustainability (2020- ); Vice President, Public Affairs (2019-2020); Government and Community Affairs Director (2018-2019); State Affairs Manager, Port of Portland (2015-2018); Business and Rail Relations Manager, Port of Portland (2007-2015). | ||||||||||||
Brody J. Wilson* | Vice President, Chief Accounting Officer, Controller and Treasurer(2) (2017- ); Chief Financial Officer (Interim), Treasurer (Interim), Chief Accounting Officer and Controller (2016-2017); Chief Accounting Officer, Controller and Assistant Treasurer (2016); Controller |
DIRECTOR (NORTHWEST NATURAL GAS COMPANY ONLY)** | ||||||||||||||
Name | Age at Dec. 31, | Positions held during last five years(1) | ||||||||||||
Steven E. | Executive Vice President, Moda, Inc., a privately-held healthcare insurance company (2012- ); Director, Mr. Wynne’s senior management experience with a variety of companies, board service on a number of public and private companies and longstanding legal practice in the areas of corporate finance, securities and mergers and acquisitions qualify him to provide insight and guidance in the areas of corporate governance, strategic planning, enterprise risk management, finance and operations. |
(a) | (b) | (c) | ||||||||||||||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||||||||||||
Equity compensation plans approved by security holders: | ||||||||||||||||||||
Long Term Incentive Plan (LTIP) (1)(2) | 211,062 | n/a | 345,012 | |||||||||||||||||
Employee Stock Purchase Plan | 37,360 | $ | 38.83 | 118,747 | ||||||||||||||||
Equity compensation plans not approved by security holders: | ||||||||||||||||||||
Executive Deferred Compensation Plan (EDCP)(3) | 877 | n/a | n/a | |||||||||||||||||
Directors Deferred Compensation Plan (DDCP)(3) | 41,552 | n/a | n/a | |||||||||||||||||
Deferred Compensation Plan for Directors and Executives (DCP)(4) | 216,917 | n/a | n/a | |||||||||||||||||
Total | 507,768 | 463,759 |
(a) | (b) | (c) | ||||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||
Equity compensation plans approved by security holders: | ||||||||||
LTIP (1)(2) | 173,175 | n/a | 574,787 | |||||||
Restated Stock Option Plan | 55,938 | $ | 44.96 | — | ||||||
Employee Stock Purchase Plan | 20,022 | 60.07 | 204,317 | |||||||
Equity compensation plans not approved by security holders: | ||||||||||
Executive Deferred Compensation Plan (EDCP)(3) | 1,063 | n/a | n/a | |||||||
Directors Deferred Compensation Plan (DDCP)(3) | 41,069 | n/a | n/a | |||||||
Deferred Compensation Plan for Directors and Executives (DCP)(4) | 194,205 | n/a | n/a | |||||||
Total | 485,472 | 779,104 |
In thousands | 2021 | 2020 | ||||||||||||
Audit Fees | $ | 1,268 | $ | 1,273 | ||||||||||
Audit-Related Fees | 172 | 31 | ||||||||||||
Tax Fees | 23 | 22 | ||||||||||||
All Other Fees | 4 | 3 | ||||||||||||
Total | $ | 1,467 | $ | 1,329 |
In thousands | 2018 | 2017 | ||||||
Audit Fees | $ | 1,379 | $ | 1,262 | ||||
Audit-Related Fees | 30 | 115 | ||||||
Tax Fees | 34 | 35 | ||||||
All Other Fees | 4 | 3 | ||||||
Total | $ | 1,447 | $ | 1,415 |
*4f. | Copy of Indenture, dated as of June 1, 1991, between Northwest Natural Gas Company and Bankers Trust Company (to whom | ||||
101. | The following materials formatted in Inline Extensible Business Reporting Language (i) Consolidated Statements of Income; (ii) Consolidated Balance Sheets; (iii) Consolidated Statements of Cash Flows; and (iv) Related notes. | ||||
104. | The cover page from the Company's Annual Report on Form 10-K for the year ended December 31, 2021, formatted in Inline XBRL and contained in Exhibit 101. | ||||
Executive Compensation Plans and Arrangements: | |||||
Signature | Title | Date | |||||||||
/s/ David H. Anderson | Principal Executive Officer and Director | February 25, 2022 | |||||||||
David H. Anderson President and Chief Executive Officer | |||||||||||
/s/ Frank H. Burkhartsmeyer | Principal Financial Officer | February 25, 2022 | |||||||||
Frank H. Burkhartsmeyer Senior Vice President and Chief Financial Officer | |||||||||||
/s/ Brody J. Wilson | Principal Accounting Officer | ||||||||||
Brody J. Wilson Vice President, Treasurer, Chief Accounting Officer and Controller | |||||||||||
/s/ Timothy P. Boyle | Director | ) | |||||||||
Timothy P. Boyle | ) | ||||||||||
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/s/ Jane L. Peverett | Director | ) | |||||||||
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/s/ Kenneth Thrasher | Director | ) | |||||||||
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/s/ Malia H. Wasson | Director | ) | |||||||||
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/s/ Charles A. Wilhoite | Director | ) | |||||||||
Charles A. Wilhoite | ) |
Signature | Title | Date | |||||||||
/s/ David H. Anderson | Principal Executive Officer and Director | February 25, 2022 | |||||||||
David H. Anderson President and Chief Executive Officer | |||||||||||
/s/ Frank H. Burkhartsmeyer | Principal Financial Officer | February 25, 2022 | |||||||||
Frank H. Burkhartsmeyer Senior Vice President and Chief Financial Officer | |||||||||||
/s/ Brody J. Wilson | Principal Accounting Officer | ||||||||||
Brody J. Wilson Vice President, Treasurer, Chief Accounting Officer and Controller | |||||||||||
/s/ Timothy P. Boyle | Director | ) | |||||||||
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/s/ Jane L. Peverett | Director | ) | |||||||||
Jane L. Peverett | ) | ||||||||||
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/s/ Kenneth Thrasher | Director | ) | |||||||||
Kenneth Thrasher | ) | ||||||||||
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/s/ Malia H. Wasson | Director | ) | |||||||||
Malia H. Wasson | ) | ||||||||||
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/s/ Charles A. Wilhoite | Director | ) | |||||||||
Charles A. Wilhoite | ) | ||||||||||
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/s/ Steven E. Wynne | Director | ) | |||||||||
Steven E. Wynne | ) |