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) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commission file number | 1-38681 | Commission file number | 1-15973 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 SW Taylor Street | 250 SW Taylor Street | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portland | Oregon | 97204 | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 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 | ☒ |
PART 1. | FINANCIAL INFORMATION | Page | ||||||
Unaudited | ||||||||
PART II. | OTHER INFORMATION | |||||||
NORTHWEST NATURAL GAS COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In thousands, except per share data | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Operating revenues | $ | 88,190 | $ | 87,727 | $ | 521,751 | $ | 442,439 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of gas | 27,239 | 28,264 | 223,855 | 157,546 | ||||||||||||
Operations and maintenance | 36,867 | 34,870 | 115,833 | 109,771 | ||||||||||||
Environmental remediation | 1,355 | 1,191 | 10,920 | 8,113 | ||||||||||||
General taxes | 7,901 | 7,211 | 24,490 | 23,333 | ||||||||||||
Depreciation and amortization | 21,484 | 20,628 | 63,924 | 61,435 | ||||||||||||
Total operating expenses | 94,846 | 92,164 | 439,022 | 360,198 | ||||||||||||
Income (loss) from operations | (6,656 | ) | (4,437 | ) | 82,729 | 82,241 | ||||||||||
Other income (expense), net | 1,493 | 652 | 3,332 | (1,144 | ) | |||||||||||
Interest expense, net | 9,451 | 9,729 | 29,044 | 29,183 | ||||||||||||
Income (loss) before income taxes | (14,614 | ) | (13,514 | ) | 57,017 | 51,914 | ||||||||||
Income tax expense (benefit) | (6,119 | ) | (5,474 | ) | 22,473 | 21,294 | ||||||||||
Net income (loss) | (8,495 | ) | (8,040 | ) | 34,544 | 30,620 | ||||||||||
Other comprehensive income (loss): | ||||||||||||||||
Change in employee benefit plan liability, net of tax benefits of $709 for the three and nine months ended September 30, 2016 | — | (1,086 | ) | — | (1,086 | ) | ||||||||||
Amortization of non-qualified employee benefit plan liability, net of taxes of $98 and $223 for the three months ended and $275 and $477 for the nine months ended September 30, 2017 and 2016, respectively | 150 | 341 | 423 | 678 | ||||||||||||
Comprehensive income (loss) | $ | (8,345 | ) | $ | (8,785 | ) | $ | 34,967 | $ | 30,212 | ||||||
Average common shares outstanding: | ||||||||||||||||
Basic | 28,678 | 27,554 | 28,653 | 27,504 | ||||||||||||
Diluted | 28,678 | 27,554 | 28,734 | 27,629 | ||||||||||||
Earnings (loss) per share of common stock: | ||||||||||||||||
Basic | $ | (0.30 | ) | $ | (0.29 | ) | $ | 1.21 | $ | 1.11 | ||||||
Diluted | (0.30 | ) | (0.29 | ) | 1.20 | 1.11 | ||||||||||
Dividends declared per share of common stock | 0.4700 | 0.4675 | 1.4100 | 1.4025 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
In thousands, except per share data | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Operating revenues | $ | 237,859 | $ | 194,960 | $ | 700,282 | $ | 545,261 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Cost of gas | 102,433 | 79,720 | 308,182 | 225,308 | ||||||||||||||||||||||
Operations and maintenance | 66,819 | 53,175 | 138,636 | 110,660 | ||||||||||||||||||||||
Environmental remediation | 2,140 | 2,267 | 7,515 | 6,970 | ||||||||||||||||||||||
General taxes | 10,889 | 8,989 | 25,108 | 21,093 | ||||||||||||||||||||||
Revenue taxes | 9,185 | 8,240 | 28,227 | 21,600 | ||||||||||||||||||||||
Depreciation | 31,293 | 28,110 | 62,758 | 56,539 | ||||||||||||||||||||||
Other operating expenses | 1,257 | 920 | 2,505 | 1,914 | ||||||||||||||||||||||
Total operating expenses | 224,016 | 181,421 | 572,931 | 444,084 | ||||||||||||||||||||||
Income from operations | 13,843 | 13,539 | 127,351 | 101,177 | ||||||||||||||||||||||
Other income (expense), net | 6,618 | 226 | 8,224 | (728) | ||||||||||||||||||||||
Interest expense, net | 18,974 | 11,580 | 37,270 | 23,102 | ||||||||||||||||||||||
Income before income taxes | 1,487 | 2,185 | 98,305 | 77,347 | ||||||||||||||||||||||
Income tax expense | 243 | 470 | 25,390 | 19,393 | ||||||||||||||||||||||
Net income | 1,244 | 1,715 | 72,915 | 57,954 | ||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||
Amortization of non-qualified employee benefit plan liability, net of taxes of $37 and $71 for the three months ended and $74 and $142 for the six months ended June 30, 2023 and 2022, respectively | 103 | 197 | 205 | 394 | ||||||||||||||||||||||
Unrealized gain on interest rate swaps, net of taxes of $445 and $297 for the three and six months ended June 30, 2023, respectively | 1,236 | — | 825 | — | ||||||||||||||||||||||
Comprehensive income | $ | 2,583 | $ | 1,912 | $ | 73,945 | $ | 58,348 | ||||||||||||||||||
Average common shares outstanding: | ||||||||||||||||||||||||||
Basic | 36,019 | 34,307 | 35,815 | 32,756 | ||||||||||||||||||||||
Diluted | 36,062 | 34,352 | 35,845 | 32,805 | ||||||||||||||||||||||
Earnings per share of common stock: | ||||||||||||||||||||||||||
Basic | $ | 0.03 | $ | 0.05 | $ | 2.04 | $ | 1.77 | ||||||||||||||||||
Diluted | 0.03 | 0.05 | 2.03 | 1.77 |
NORTHWEST NATURAL GAS COMPANY CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||||
September 30, | September 30, | December 31, | ||||||||||
In thousands | 2017 | 2016 | 2016 | |||||||||
Assets: | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 15,780 | $ | 6,230 | $ | 3,521 | ||||||
Accounts receivable | 23,450 | 25,506 | 66,700 | |||||||||
Accrued unbilled revenue | 15,974 | 15,537 | 64,946 | |||||||||
Allowance for uncollectible accounts | (459 | ) | (289 | ) | (1,290 | ) | ||||||
Regulatory assets | 49,504 | 55,280 | 42,362 | |||||||||
Derivative instruments | 2,073 | 4,857 | 17,031 | |||||||||
Inventories | 59,549 | 67,470 | 54,129 | |||||||||
Gas reserves | 16,218 | 16,257 | 15,926 | |||||||||
Income taxes receivable | — | 2,257 | — | |||||||||
Other current assets | 17,457 | 17,480 | 24,728 | |||||||||
Total current assets | 199,546 | 210,585 | 288,053 | |||||||||
Non-current assets: | ||||||||||||
Property, plant, and equipment | 3,384,122 | 3,177,196 | 3,208,816 | |||||||||
Less: Accumulated depreciation | 986,332 | 943,334 | 947,916 | |||||||||
Total property, plant, and equipment, net | 2,397,790 | 2,233,862 | 2,260,900 | |||||||||
Gas reserves | 87,876 | 103,976 | 100,184 | |||||||||
Regulatory assets | 345,352 | 341,188 | 357,530 | |||||||||
Derivative instruments | 1,555 | 1,151 | 3,265 | |||||||||
Other investments | 69,245 | 67,853 | 68,376 | |||||||||
Other non-current assets | 4,243 | 1,269 | 1,493 | |||||||||
Total non-current assets | 2,906,061 | 2,749,299 | 2,791,748 | |||||||||
Total assets | $ | 3,105,607 | $ | 2,959,884 | $ | 3,079,801 |
June 30, | June 30, | December 31, | ||||||||||||||||||
In thousands | 2023 | 2022 | 2022 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 137,759 | $ | 17,209 | $ | 29,270 | ||||||||||||||
Accounts receivable | 73,930 | 68,583 | 168,906 | |||||||||||||||||
Accrued unbilled revenue | 21,924 | 18,060 | 89,048 | |||||||||||||||||
Allowance for uncollectible accounts | (3,297) | (1,356) | (3,296) | |||||||||||||||||
Regulatory assets | 111,819 | 92,803 | 117,491 | |||||||||||||||||
Derivative instruments | 12,423 | 60,652 | 194,412 | |||||||||||||||||
Inventories | 67,502 | 65,983 | 87,096 | |||||||||||||||||
Other current assets | 35,797 | 36,060 | 61,286 | |||||||||||||||||
Total current assets | 457,857 | 357,994 | 744,213 | |||||||||||||||||
Non-current assets: | ||||||||||||||||||||
Property, plant, and equipment | 4,391,993 | 4,129,236 | 4,261,566 | |||||||||||||||||
Less: Accumulated depreciation | 1,181,230 | 1,150,555 | 1,147,166 | |||||||||||||||||
Total property, plant, and equipment, net | 3,210,763 | 2,978,681 | 3,114,400 | |||||||||||||||||
Regulatory assets | 307,999 | 301,855 | 340,432 | |||||||||||||||||
Derivative instruments | 2,118 | 9,121 | 5,045 | |||||||||||||||||
Other investments | 104,330 | 96,027 | 95,704 | |||||||||||||||||
Operating lease right of use asset, net | 72,096 | 73,754 | 73,429 | |||||||||||||||||
Assets under sales-type leases | 132,045 | 136,673 | 134,302 | |||||||||||||||||
Goodwill | 152,670 | 70,714 | 149,283 | |||||||||||||||||
Other non-current assets | 96,827 | 75,699 | 91,518 | |||||||||||||||||
Total non-current assets | 4,078,848 | 3,742,524 | 4,004,113 | |||||||||||||||||
Total assets | $ | 4,536,705 | $ | 4,100,518 | $ | 4,748,326 |
NORTHWEST NATURAL GAS COMPANY CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||||
September 30, | September 30, | December 31, | ||||||||||
In thousands | 2017 | 2016 | 2016 | |||||||||
Liabilities and equity: | ||||||||||||
Current liabilities: | ||||||||||||
Short-term debt | $ | — | $ | 194,900 | $ | 53,300 | ||||||
Current maturities of long-term debt | 21,995 | 64,994 | 39,989 | |||||||||
Accounts payable | 87,475 | 55,933 | 85,664 | |||||||||
Taxes accrued | 12,295 | 11,954 | 12,149 | |||||||||
Interest accrued | 9,854 | 9,671 | 5,966 | |||||||||
Regulatory liabilities | 34,659 | 27,921 | 40,290 | |||||||||
Derivative instruments | 8,968 | 5,334 | 1,315 | |||||||||
Other current liabilities | 27,705 | 31,997 | 35,844 | |||||||||
Total current liabilities | 202,951 | 402,704 | 274,517 | |||||||||
Long-term debt | 757,429 | 530,219 | 679,334 | |||||||||
Deferred credits and other non-current liabilities: | ||||||||||||
Deferred tax liabilities | 572,293 | 544,575 | 557,085 | |||||||||
Regulatory liabilities | 363,838 | 342,143 | 349,319 | |||||||||
Pension and other postretirement benefit liabilities | 212,259 | 216,909 | 225,725 | |||||||||
Derivative instruments | 3,926 | 1,682 | 913 | |||||||||
Other non-current liabilities | 146,229 | 142,450 | 142,411 | |||||||||
Total deferred credits and other non-current liabilities | 1,298,545 | 1,247,759 | 1,275,453 | |||||||||
Commitments and contingencies (see Note 13 and Note 14) | ||||||||||||
Equity: | ||||||||||||
Common stock - no par value; authorized 100,000 shares; issued and outstanding 28,713, 27,558, and 28,630 at September 30, 2017 and 2016, and December 31, 2016, respectively | 447,129 | 389,834 | 445,187 | |||||||||
Retained earnings | 406,081 | 396,938 | 412,261 | |||||||||
Accumulated other comprehensive loss | (6,528 | ) | (7,570 | ) | (6,951 | ) | ||||||
Total equity | 846,682 | 779,202 | 850,497 | |||||||||
Total liabilities and equity | $ | 3,105,607 | $ | 2,959,884 | $ | 3,079,801 |
June 30, | June 30, | December 31, | ||||||||||||||||||
In thousands, including share information | 2023 | 2022 | 2022 | |||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Short-term debt | $ | 41,000 | $ | 222,700 | $ | 258,200 | ||||||||||||||
Current maturities of long-term debt | 240,714 | 351 | 90,697 | |||||||||||||||||
Accounts payable | 101,369 | 135,364 | 180,667 | |||||||||||||||||
Taxes accrued | 12,217 | 11,324 | 15,625 | |||||||||||||||||
Interest accrued | 11,443 | 7,425 | 10,169 | |||||||||||||||||
Regulatory liabilities | 61,546 | 97,277 | 248,582 | |||||||||||||||||
Derivative instruments | 42,135 | 15,918 | 28,728 | |||||||||||||||||
Operating lease liabilities | 1,732 | 1,315 | 1,514 | |||||||||||||||||
Other current liabilities | 58,777 | 47,624 | 64,552 | |||||||||||||||||
Total current liabilities | 570,933 | 539,298 | 898,734 | |||||||||||||||||
Long-term debt | 1,294,578 | 1,045,530 | 1,246,167 | |||||||||||||||||
Deferred credits and other non-current liabilities: | ||||||||||||||||||||
Deferred tax liabilities | 380,058 | 355,470 | 366,022 | |||||||||||||||||
Regulatory liabilities | 672,215 | 658,925 | 689,578 | |||||||||||||||||
Pension and other postretirement benefit liabilities | 147,063 | 162,511 | 149,143 | |||||||||||||||||
Derivative instruments | 25,212 | 9,475 | 20,838 | |||||||||||||||||
Operating lease liabilities | 77,951 | 78,826 | 78,965 | |||||||||||||||||
Other non-current liabilities | 128,417 | 111,704 | 123,438 | |||||||||||||||||
Total deferred credits and other non-current liabilities | 1,430,916 | 1,376,911 | 1,427,984 | |||||||||||||||||
Commitments and contingencies (Note 16) | ||||||||||||||||||||
Equity: | ||||||||||||||||||||
Common stock - no par value; authorized 100,000 shares; issued and outstanding 36,065, 34,754, and 35,525 at June 30, 2023 and 2022, and December 31, 2022, respectively | 831,135 | 767,826 | 805,253 | |||||||||||||||||
Retained earnings | 414,398 | 381,963 | 376,473 | |||||||||||||||||
Accumulated other comprehensive loss | (5,255) | (11,010) | (6,285) | |||||||||||||||||
Total equity | 1,240,278 | 1,138,779 | 1,175,441 | |||||||||||||||||
Total liabilities and equity | $ | 4,536,705 | $ | 4,100,518 | $ | 4,748,326 |
NORTHWEST NATURAL GAS COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
Nine Months Ended September 30, | ||||||||
In thousands | 2017 | 2016 | ||||||
Operating activities: | ||||||||
Net income | $ | 34,544 | $ | 30,620 | ||||
Adjustments to reconcile net income to cash provided by operations: | ||||||||
Depreciation and amortization | 63,924 | 61,435 | ||||||
Regulatory amortization of gas reserves | 12,036 | 11,403 | ||||||
Deferred income taxes | 17,287 | 17,810 | ||||||
Qualified defined benefit pension plan expense | 3,923 | 3,989 | ||||||
Contributions to qualified defined benefit pension plans | (15,400 | ) | (11,250 | ) | ||||
Deferred environmental expenditures, net | (10,468 | ) | (8,302 | ) | ||||
Regulatory disallowance of prior environmental cost deferrals | — | 3,287 | ||||||
Amortization of environmental remediation | 10,920 | 8,113 | ||||||
Other | 2,605 | 4,817 | ||||||
Changes in assets and liabilities: | ||||||||
Receivables, net | 90,735 | 83,377 | ||||||
Inventories | (5,420 | ) | 3,226 | |||||
Income taxes | 146 | 7,170 | ||||||
Accounts payable | (29,726 | ) | (17,612 | ) | ||||
Interest accrued | 3,888 | 3,798 | ||||||
Deferred gas costs | 13,419 | (10,470 | ) | |||||
Other, net | 443 | 14,988 | ||||||
Cash provided by operating activities | 192,856 | 206,399 | ||||||
Investing activities: | ||||||||
Capital expenditures | (145,441 | ) | (98,111 | ) | ||||
Other | (1,131 | ) | 2,868 | |||||
Cash used in investing activities | (146,572 | ) | (95,243 | ) | ||||
Financing activities: | ||||||||
Repurchases related to stock-based compensation | (2,034 | ) | (1,042 | ) | ||||
Proceeds from stock options exercised | 3,711 | 5,874 | ||||||
Long-term debt issued | 100,000 | — | ||||||
Long-term debt retired | (40,000 | ) | — | |||||
Change in short-term debt | (53,300 | ) | (75,135 | ) | ||||
Cash dividend payments on common stock | (40,390 | ) | (38,556 | ) | ||||
Other | (2,012 | ) | (278 | ) | ||||
Cash used in financing activities | (34,025 | ) | (109,137 | ) | ||||
Increase in cash and cash equivalents | 12,259 | 2,019 | ||||||
Cash and cash equivalents, beginning of period | 3,521 | 4,211 | ||||||
Cash and cash equivalents, end of period | $ | 15,780 | $ | 6,230 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest paid, net of capitalization | $ | 22,859 | $ | 23,271 | ||||
Income taxes paid (refunded) | 11,581 | (6,900 | ) |
In thousands, except per share amounts | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Total shareholders' equity, beginning balances | $ | 1,248,307 | $ | 987,944 | $ | 1,175,441 | $ | 935,146 | ||||||||||||||||||
Common stock: | ||||||||||||||||||||||||||
Beginning balances | 824,304 | 602,382 | 805,253 | 590,771 | ||||||||||||||||||||||
Stock-based compensation | 426 | 458 | 3,006 | 2,232 | ||||||||||||||||||||||
Shares issued pursuant to equity based plans, net of shares withheld for taxes | 1,011 | 1,080 | 837 | 1,004 | ||||||||||||||||||||||
Issuance of common stock, net of issuance costs | 5,394 | 163,906 | 22,039 | 173,819 | ||||||||||||||||||||||
Ending balances | 831,135 | 767,826 | 831,135 | 767,826 | ||||||||||||||||||||||
Retained earnings: | ||||||||||||||||||||||||||
Beginning balances | 430,597 | 396,769 | 376,473 | 355,779 | ||||||||||||||||||||||
Net income | 1,244 | 1,715 | 72,915 | 57,954 | ||||||||||||||||||||||
Dividends on common stock | (17,443) | (16,521) | (34,990) | (31,770) | ||||||||||||||||||||||
Ending balances | 414,398 | 381,963 | 414,398 | 381,963 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss): | ||||||||||||||||||||||||||
Beginning balances | (6,594) | (11,207) | (6,285) | (11,404) | ||||||||||||||||||||||
Other comprehensive income | 1,339 | 197 | 1,030 | 394 | ||||||||||||||||||||||
Ending balances | (5,255) | (11,010) | (5,255) | (11,010) | ||||||||||||||||||||||
Total shareholders' equity, ending balances | $ | 1,240,278 | $ | 1,138,779 | $ | 1,240,278 | $ | 1,138,779 | ||||||||||||||||||
Dividends per share of common stock | $ | 0.4850 | $ | 0.4825 | $ | 0.9700 | $ | 0.9650 |
Six Months Ended June 30, | ||||||||||||||
In thousands | 2023 | 2022 | ||||||||||||
Operating activities: | ||||||||||||||
Net income | $ | 72,915 | $ | 57,954 | ||||||||||
Adjustments to reconcile net income to cash provided by operations: | ||||||||||||||
Depreciation | 62,758 | 56,539 | ||||||||||||
Regulatory amortization of gas reserves | 1,678 | 2,984 | ||||||||||||
Deferred income taxes | 8,610 | 10,659 | ||||||||||||
Qualified defined benefit pension plan (benefit) expense | (1,129) | 2,882 | ||||||||||||
Deferred environmental expenditures, net | (9,732) | (9,608) | ||||||||||||
Environmental remediation expense | 7,515 | 6,970 | ||||||||||||
Asset optimization revenue sharing bill credits | (10,471) | (41,102) | ||||||||||||
Other | 14,068 | 9,961 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||
Receivables, net | 163,965 | 96,453 | ||||||||||||
Inventories | 20,084 | (8,721) | ||||||||||||
Income and other taxes | 14,834 | 17,241 | ||||||||||||
Accounts payable | (48,935) | (13,728) | ||||||||||||
Deferred gas costs | (16,370) | 2,607 | ||||||||||||
Asset optimization revenue sharing | 12,056 | 3,929 | ||||||||||||
Decoupling mechanism | (9,554) | 9,669 | ||||||||||||
Cloud-based software | (7,229) | (414) | ||||||||||||
Other, net | 22,791 | (7,711) | ||||||||||||
Cash provided by operating activities | 297,854 | 196,564 | ||||||||||||
Investing activities: | ||||||||||||||
Capital expenditures | (144,863) | (167,696) | ||||||||||||
Acquisitions, net of cash acquired | (3,249) | — | ||||||||||||
Purchase of equity method investment | (1,000) | — | ||||||||||||
Other | (2,428) | (1,991) | ||||||||||||
Cash used in investing activities | (151,540) | (169,687) | ||||||||||||
Financing activities: | ||||||||||||||
Proceeds from common stock issued, net | 22,072 | 174,053 | ||||||||||||
Long-term debt issued | 200,000 | 692 | ||||||||||||
Changes in other short-term debt, net | (217,200) | (166,800) | ||||||||||||
Cash dividend payments on common stock | (33,293) | (30,311) | ||||||||||||
Other | (3,774) | (1,596) | ||||||||||||
Cash used in financing activities | (32,195) | (23,962) | ||||||||||||
Increase in cash, cash equivalents and restricted cash | 114,119 | 2,915 | ||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 40,964 | 27,120 | ||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 155,083 | $ | 30,035 | ||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||
Interest paid, net of capitalization | $ | 36,376 | $ | 22,867 | ||||||||||
Income taxes paid, net of refunds | 12,163 | 1,086 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Operating revenues | $ | 228,348 | $ | 190,251 | $ | 682,861 | $ | 536,875 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Cost of gas | 102,490 | 79,776 | 308,295 | 225,420 | ||||||||||||||||||||||
Operations and maintenance | 60,238 | 48,879 | 125,627 | 102,756 | ||||||||||||||||||||||
Environmental remediation | 2,140 | 2,267 | 7,515 | 6,970 | ||||||||||||||||||||||
General taxes | 10,597 | 8,872 | 24,597 | 20,861 | ||||||||||||||||||||||
Revenue taxes | 9,159 | 8,208 | 28,134 | 21,532 | ||||||||||||||||||||||
Depreciation | 29,880 | 27,328 | 60,024 | 54,965 | ||||||||||||||||||||||
Other operating expenses | 542 | 796 | 1,239 | 1,695 | ||||||||||||||||||||||
Total operating expenses | 215,046 | 176,126 | 555,431 | 434,199 | ||||||||||||||||||||||
Income from operations | 13,302 | 14,125 | 127,430 | 102,676 | ||||||||||||||||||||||
Other income (expense), net | 3,832 | 17 | 6,277 | (964) | ||||||||||||||||||||||
Interest expense, net | 15,028 | 10,599 | 29,639 | 21,430 | ||||||||||||||||||||||
Income before income taxes | 2,106 | 3,543 | 104,068 | 80,282 | ||||||||||||||||||||||
Income tax expense | 322 | 810 | 26,744 | 20,133 | ||||||||||||||||||||||
Net income | 1,784 | 2,733 | 77,324 | 60,149 | ||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||
Amortization of non-qualified employee benefit plan liability, net of taxes of $37 and $71 for the three months ended and $74 and $142 for the six months ended June 30, 2023 and 2022, respectively | 103 | 197 | 205 | 394 | ||||||||||||||||||||||
Comprehensive income | $ | 1,887 | $ | 2,930 | $ | 77,529 | $ | 60,543 |
June 30, | June 30, | December 31, | ||||||||||||||||||
In thousands | 2023 | 2022 | 2022 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 131,778 | $ | 10,267 | $ | 12,977 | ||||||||||||||
Accounts receivable | 67,454 | 66,186 | 165,607 | |||||||||||||||||
Accrued unbilled revenue | 19,669 | 17,840 | 87,482 | |||||||||||||||||
Receivables from affiliates | 529 | 300 | 634 | |||||||||||||||||
Allowance for uncollectible accounts | (3,080) | (1,299) | (3,079) | |||||||||||||||||
Regulatory assets | 111,819 | 92,803 | 117,491 | |||||||||||||||||
Derivative instruments | 11,691 | 60,652 | 194,236 | |||||||||||||||||
Inventories | 65,949 | 64,726 | 86,207 | |||||||||||||||||
Other current assets | 35,006 | 31,784 | 57,269 | |||||||||||||||||
Total current assets | 440,815 | 343,259 | 718,824 | |||||||||||||||||
Non-current assets: | ||||||||||||||||||||
Property, plant, and equipment | 4,261,100 | 4,052,467 | 4,148,547 | |||||||||||||||||
Less: Accumulated depreciation | 1,168,270 | 1,142,611 | 1,137,231 | |||||||||||||||||
Total property, plant, and equipment, net | 3,092,830 | 2,909,856 | 3,011,316 | |||||||||||||||||
Regulatory assets | 307,974 | 301,790 | 340,407 | |||||||||||||||||
Derivative instruments | 1,551 | 9,121 | 5,045 | |||||||||||||||||
Other investments | 87,848 | 81,486 | 80,110 | |||||||||||||||||
Operating lease right of use asset, net | 71,508 | 73,706 | 72,720 | |||||||||||||||||
Assets under sales-type leases | 132,045 | 136,673 | 134,302 | |||||||||||||||||
Other non-current assets | 95,343 | 74,106 | 89,994 | |||||||||||||||||
Total non-current assets | 3,789,099 | 3,586,738 | 3,733,894 | |||||||||||||||||
Total assets | $ | 4,229,914 | $ | 3,929,997 | $ | 4,452,718 |
June 30, | June 30, | December 31, | ||||||||||||||||||
In thousands | 2023 | 2022 | 2022 | |||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Short-term debt | $ | — | $ | 78,700 | $ | 170,200 | ||||||||||||||
Current maturities of long-term debt | 89,982 | — | 89,942 | |||||||||||||||||
Accounts payable | 95,674 | 132,002 | 177,590 | |||||||||||||||||
Payables to affiliates | 5,072 | 7,259 | 9,175 | |||||||||||||||||
Taxes accrued | 10,000 | 11,289 | 15,426 | |||||||||||||||||
Interest accrued | 10,964 | 7,207 | 8,900 | |||||||||||||||||
Regulatory liabilities | 61,496 | 97,277 | 248,553 | |||||||||||||||||
Derivative instruments | 42,135 | 15,918 | 28,728 | |||||||||||||||||
Operating lease liabilities | 1,598 | 1,298 | 1,363 | |||||||||||||||||
Other current liabilities | 55,841 | 46,816 | 62,019 | |||||||||||||||||
Total current liabilities | 372,762 | 397,766 | 811,896 | |||||||||||||||||
Long-term debt | 1,234,577 | 986,762 | 1,035,935 | |||||||||||||||||
Deferred credits and other non-current liabilities: | ||||||||||||||||||||
Deferred tax liabilities | 371,762 | 352,606 | 362,353 | |||||||||||||||||
Regulatory liabilities | 671,263 | 657,943 | 688,599 | |||||||||||||||||
Pension and other postretirement benefit liabilities | 147,063 | 162,511 | 149,143 | |||||||||||||||||
Derivative instruments | 25,212 | 9,475 | 20,838 | |||||||||||||||||
Operating lease liabilities | 77,490 | 78,789 | 78,345 | |||||||||||||||||
Other non-current liabilities | 119,489 | 110,469 | 114,527 | |||||||||||||||||
Total deferred credits and other non-current liabilities | 1,412,279 | 1,371,793 | 1,413,805 | |||||||||||||||||
Commitments and contingencies (Note 16) | ||||||||||||||||||||
Equity: | ||||||||||||||||||||
Common stock | 614,903 | 601,032 | 614,903 | |||||||||||||||||
Retained earnings | 601,602 | 583,654 | 582,593 | |||||||||||||||||
Accumulated other comprehensive loss | (6,209) | (11,010) | (6,414) | |||||||||||||||||
Total equity | 1,210,296 | 1,173,676 | 1,191,082 | |||||||||||||||||
Total liabilities and equity | $ | 4,229,914 | $ | 3,929,997 | $ | 4,452,718 |
In thousands | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Total shareholder's equity, beginning balances | $ | 1,250,180 | $ | 1,021,609 | $ | 1,191,082 | $ | 977,807 | ||||||||||||||||||
Common stock: | ||||||||||||||||||||||||||
Beginning balances | 614,911 | 436,042 | 614,903 | 435,515 | ||||||||||||||||||||||
Capital contributions from parent | (8) | 164,990 | — | 165,517 | ||||||||||||||||||||||
Ending balances | 614,903 | 601,032 | 614,903 | 601,032 | ||||||||||||||||||||||
Retained earnings: | ||||||||||||||||||||||||||
Beginning balances | 641,581 | 596,774 | 582,593 | 553,696 | ||||||||||||||||||||||
Net income | 1,784 | 2,733 | 77,324 | 60,149 | ||||||||||||||||||||||
Dividends on common stock | (41,763) | (15,853) | (58,315) | (30,191) | ||||||||||||||||||||||
Ending balances | 601,602 | 583,654 | 601,602 | 583,654 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss): | ||||||||||||||||||||||||||
Beginning balances | (6,312) | (11,207) | (6,414) | (11,404) | ||||||||||||||||||||||
Other comprehensive income | 103 | 197 | 205 | 394 | ||||||||||||||||||||||
Ending balances | (6,209) | (11,010) | (6,209) | (11,010) | ||||||||||||||||||||||
Total shareholder's equity, ending balances | $ | 1,210,296 | $ | 1,173,676 | $ | 1,210,296 | $ | 1,173,676 |
Six Months Ended June 30, | ||||||||||||||
In thousands | 2023 | 2022 | ||||||||||||
Operating activities: | ||||||||||||||
Net income | $ | 77,324 | $ | 60,149 | ||||||||||
Adjustments to reconcile net income to cash provided by operations: | ||||||||||||||
Depreciation | 60,024 | 54,965 | ||||||||||||
Regulatory amortization of gas reserves | 1,678 | 2,984 | ||||||||||||
Deferred income taxes | 4,172 | 10,308 | ||||||||||||
Qualified defined benefit pension plan (benefit) expense | (1,129) | 2,882 | ||||||||||||
Deferred environmental expenditures, net | (9,732) | (9,608) | ||||||||||||
Environmental remediation expense | 7,515 | 6,970 | ||||||||||||
Asset optimization revenue sharing bill credits | (10,471) | (41,102) | ||||||||||||
Other | 13,022 | 9,158 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||
Receivables, net | 167,936 | 97,175 | ||||||||||||
Inventories | 20,438 | (7,974) | ||||||||||||
Income and other taxes | 6,078 | 16,069 | ||||||||||||
Accounts payable | (52,366) | (16,341) | ||||||||||||
Deferred gas costs | (16,370) | 2,607 | ||||||||||||
Asset optimization revenue sharing | 12,056 | 3,929 | ||||||||||||
Decoupling mechanism | (9,554) | 9,669 | ||||||||||||
Cloud-based software | (7,229) | (414) | ||||||||||||
Other, net | 24,613 | (7,990) | ||||||||||||
Cash provided by operating activities | 288,005 | 193,436 | ||||||||||||
Investing activities: | ||||||||||||||
Capital expenditures | (129,298) | (156,189) | ||||||||||||
Other | (2,428) | (1,991) | ||||||||||||
Cash used in investing activities | (131,726) | (158,180) | ||||||||||||
Financing activities: | ||||||||||||||
Cash contributions received from parent | — | 165,517 | ||||||||||||
Long-term debt issued | 200,000 | — | ||||||||||||
Changes in other short-term debt, net | (170,200) | (166,800) | ||||||||||||
Cash dividend payments on common stock | (58,315) | (30,191) | ||||||||||||
Other | (3,358) | (1,521) | ||||||||||||
Cash used in financing activities | (31,873) | (32,995) | ||||||||||||
Increase in cash, cash equivalents and restricted cash | 124,406 | 2,261 | ||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 24,671 | 20,832 | ||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 149,077 | $ | 23,093 | ||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||
Interest paid, net of capitalization | $ | 28,078 | $ | 21,270 | ||||||||||
Income taxes paid, net of refunds | 26,745 | 3,490 |
Regulatory Assets | Regulatory Assets | |||||||||||||||||||||||||||||||
September 30, | December 31, | June 30, | December 31, | |||||||||||||||||||||||||||||
In thousands | 2017 | 2016 | 2016 | In thousands | 2023 | 2022 | 2022 | |||||||||||||||||||||||||
NW Natural: | NW Natural: | |||||||||||||||||||||||||||||||
Current: | Current: | |||||||||||||||||||||||||||||||
Unrealized loss on derivatives(1) | $ | 8,887 | $ | 5,205 | $ | 1,315 | Unrealized loss on derivatives(1) | $ | 42,135 | $ | 15,918 | $ | 28,728 | |||||||||||||||||||
Gas costs | 1,851 | 10,164 | 6,830 | Gas costs | 24,782 | 48,218 | 61,223 | |||||||||||||||||||||||||
Environmental costs(2) | 6,362 | 9,734 | 9,989 | Environmental costs(2) | 6,749 | 6,975 | 7,392 | |||||||||||||||||||||||||
Decoupling(3) | 15,663 | 16,028 | 13,067 | Decoupling(3) | 1,520 | 212 | — | |||||||||||||||||||||||||
Other(4) | 16,741 | 14,149 | 11,161 | |||||||||||||||||||||||||||||
Total current | $ | 49,504 | $ | 55,280 | $ | 42,362 | ||||||||||||||||||||||||||
Pension balancing(4) | Pension balancing(4) | 7,131 | 7,131 | 7,131 | ||||||||||||||||||||||||||||
Income taxes | Income taxes | 2,208 | 2,276 | 2,208 | ||||||||||||||||||||||||||||
Washington Climate Commitment Act compliance | Washington Climate Commitment Act compliance | 10,379 | — | — | ||||||||||||||||||||||||||||
Other(5) | Other(5) | 16,915 | 12,073 | 10,809 | ||||||||||||||||||||||||||||
Total current - NW Natural | Total current - NW Natural | $ | 111,819 | $ | 92,803 | $ | 117,491 | |||||||||||||||||||||||||
Non-current: | Non-current: | |||||||||||||||||||||||||||||||
Unrealized loss on derivatives(1) | $ | 3,926 | $ | 1,682 | $ | 913 | Unrealized loss on derivatives(1) | $ | 25,212 | $ | 9,475 | $ | 20,838 | |||||||||||||||||||
Pension balancing(5) | 57,599 | 48,637 | 50,863 | |||||||||||||||||||||||||||||
Pension balancing(4) | Pension balancing(4) | 29,731 | 35,150 | 32,997 | ||||||||||||||||||||||||||||
Income taxes | 36,591 | 40,106 | 38,670 | Income taxes | 10,540 | 11,161 | 10,943 | |||||||||||||||||||||||||
Pension and other postretirement benefit liabilities | 172,687 | 174,282 | 183,035 | Pension and other postretirement benefit liabilities | 101,413 | 110,548 | 101,413 | |||||||||||||||||||||||||
Environmental costs(2) | 63,339 | 64,279 | 63,970 | Environmental costs(2) | 98,160 | 86,411 | 104,253 | |||||||||||||||||||||||||
Gas costs | 48 | 712 | 89 | Gas costs | 1,122 | 7,975 | 22,355 | |||||||||||||||||||||||||
Decoupling(3) | 1,025 | 1,006 | 5,860 | Decoupling(3) | 267 | — | — | |||||||||||||||||||||||||
Other(4) | 10,137 | 10,484 | 14,130 | |||||||||||||||||||||||||||||
Total non-current | $ | 345,352 | $ | 341,188 | $ | 357,530 | ||||||||||||||||||||||||||
Washington Climate Commitment Act compliance | Washington Climate Commitment Act compliance | 1,823 | — | — | ||||||||||||||||||||||||||||
Other(5) | Other(5) | 39,706 | 41,070 | 47,608 | ||||||||||||||||||||||||||||
Total non-current - NW Natural | Total non-current - NW Natural | $ | 307,974 | $ | 301,790 | $ | 340,407 | |||||||||||||||||||||||||
Other (NW Holdings) | Other (NW Holdings) | 25 | 65 | 25 | ||||||||||||||||||||||||||||
Total non-current - NW Holdings | Total non-current - NW Holdings | $ | 307,999 | $ | 301,855 | $ | 340,432 |
Regulatory Liabilities | ||||||||||||
September 30, | December 31, | |||||||||||
In thousands | 2017 | 2016 | 2016 | |||||||||
Current: | ||||||||||||
Gas costs | $ | 16,459 | $ | 12,001 | $ | 8,054 | ||||||
Unrealized gain on derivatives(1) | 2,020 | 4,857 | 16,624 | |||||||||
Decoupling(3) | 314 | — | — | |||||||||
Other(4) | 15,866 | 11,063 | 15,612 | |||||||||
Total current | $ | 34,659 | $ | 27,921 | $ | 40,290 | ||||||
Non-current: | ||||||||||||
Gas costs | $ | 1,015 | $ | 765 | $ | 1,021 | ||||||
Unrealized gain on derivatives(1) | 1,555 | 1,151 | 3,265 | |||||||||
Accrued asset removal costs(6) | 356,106 | 336,699 | 341,107 | |||||||||
Other(4) | 5,162 | 3,528 | 3,926 | |||||||||
Total non-current | $ | 363,838 | $ | 342,143 | $ | 349,319 |
Regulatory Liabilities | ||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||
In thousands | 2023 | 2022 | 2022 | |||||||||||||||||
NW Natural: | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Gas costs | $ | 5,603 | $ | 1,898 | $ | 4,121 | ||||||||||||||
Unrealized gain on derivatives(1) | 11,691 | 60,652 | 194,236 | |||||||||||||||||
Decoupling(3) | 8,715 | 14,242 | 14,026 | |||||||||||||||||
Income taxes | 5,158 | 7,318 | 7,166 | |||||||||||||||||
Asset optimization revenue sharing | 23,327 | 9,761 | 26,368 | |||||||||||||||||
Other(5) | 7,002 | 3,406 | 2,636 | |||||||||||||||||
Total current - NW Natural | $ | 61,496 | $ | 97,277 | $ | 248,553 | ||||||||||||||
Other (NW Holdings) | 50 | — | 29 | |||||||||||||||||
Total current - NW Holdings | $ | 61,546 | $ | 97,277 | $ | 248,582 | ||||||||||||||
Non-current: | ||||||||||||||||||||
Gas costs | $ | 731 | $ | 353 | $ | 12,644 | ||||||||||||||
Unrealized gain on derivatives(1) | 1,551 | 9,121 | 5,045 | |||||||||||||||||
Decoupling(3) | 1,358 | 2,557 | 3,814 | |||||||||||||||||
Income taxes(6) | 170,318 | 176,358 | 174,212 | |||||||||||||||||
Accrued asset removal costs(7) | 481,851 | 455,794 | 467,742 | |||||||||||||||||
Asset optimization revenue sharing | — | — | 8,401 | |||||||||||||||||
Other(5) | 15,454 | 13,760 | 16,741 | |||||||||||||||||
Total non-current - NW Natural | $ | 671,263 | $ | 657,943 | $ | 688,599 | ||||||||||||||
Other (NW Holdings) | 952 | 982 | 979 | |||||||||||||||||
Total non-current - NW Holdings | $ | 672,215 | $ | 658,925 | $ | 689,578 |
June 30, | December 31, | |||||||||||||||||||
In thousands | 2023 | 2022 | 2022 | |||||||||||||||||
Cash and cash equivalents | $ | 137,759 | $ | 17,209 | $ | 29,270 | ||||||||||||||
Restricted cash included in other current and non-current assets | 17,324 | 12,826 | 11,694 | |||||||||||||||||
Cash, cash equivalents and restricted cash | $ | 155,083 | $ | 30,035 | $ | 40,964 |
June 30, | December 31, | |||||||||||||||||||
In thousands | 2023 | 2022 | 2022 | |||||||||||||||||
Cash and cash equivalents | $ | 131,778 | $ | 10,267 | $ | 12,977 | ||||||||||||||
Restricted cash included in other current assets | 17,299 | 12,826 | 11,694 | |||||||||||||||||
Cash, cash equivalents and restricted cash | $ | 149,077 | $ | 23,093 | $ | 24,671 |
As of | As of | ||||||||||||||||||||||
December 31, 2022 | Six Months Ended June 30, 2023 | June 30, 2023 | |||||||||||||||||||||
In thousands | Beginning Balance | Provision recorded, net of adjustments | Write-offs recognized, net of recoveries | Ending Balance | |||||||||||||||||||
Allowance for uncollectible accounts: | |||||||||||||||||||||||
Residential | $ | 2,155 | $ | 1,612 | $ | (1,436) | $ | 2,331 | |||||||||||||||
Commercial | 400 | 219 | (224) | 395 | |||||||||||||||||||
Industrial | 188 | (97) | (1) | 90 | |||||||||||||||||||
Accrued unbilled and other | 336 | 3 | (75) | 264 | |||||||||||||||||||
Total NW Natural | 3,079 | 1,737 | (1,736) | 3,080 | |||||||||||||||||||
Other - NW Holdings | 217 | — | — | 217 | |||||||||||||||||||
Total NW Holdings | $ | 3,296 | $ | 1,737 | $ | (1,736) | $ | 3,297 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
In thousands, except per share data | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net income | $ | 1,244 | $ | 1,715 | $ | 72,915 | $ | 57,954 | ||||||||||||||||||
Average common shares outstanding - basic | 36,019 | 34,307 | 35,815 | 32,756 | ||||||||||||||||||||||
Additional shares for stock-based compensation plans (See Note 8) | 43 | 45 | 30 | 49 | ||||||||||||||||||||||
Average common shares outstanding - diluted | 36,062 | 34,352 | 35,845 | 32,805 | ||||||||||||||||||||||
Earnings per share of common stock: | ||||||||||||||||||||||||||
Basic | $ | 0.03 | $ | 0.05 | $ | 2.04 | $ | 1.77 | ||||||||||||||||||
Diluted | $ | 0.03 | $ | 0.05 | $ | 2.03 | $ | 1.77 | ||||||||||||||||||
Additional information: | ||||||||||||||||||||||||||
Anti-dilutive shares | 2 | 1 | 1 | 1 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In thousands, except per share data | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) | $ | (8,495 | ) | $ | (8,040 | ) | $ | 34,544 | $ | 30,620 | ||||||
Average common shares outstanding - basic | 28,678 | 27,554 | 28,653 | 27,504 | ||||||||||||
Additional shares for stock-based compensation plans (See Note 5) | — | — | 81 | 125 | ||||||||||||
Average common shares outstanding - diluted | 28,678 | 27,554 | 28,734 | 27,629 | ||||||||||||
Earnings (loss) per share of common stock - basic | $ | (0.30 | ) | $ | (0.29 | ) | $ | 1.21 | $ | 1.11 | ||||||
Earnings (loss) per share of common stock - diluted | $ | (0.30 | ) | $ | (0.29 | ) | $ | 1.20 | $ | 1.11 | ||||||
Additional information: | ||||||||||||||||
Antidilutive shares | 96 | 159 | 15 | 5 |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
In thousands | NGD | Other (NW Natural) | NW Natural | Other (NW Holdings) | NW Holdings | ||||||||||||||||||||||||||||||
2023 | |||||||||||||||||||||||||||||||||||
Operating revenues | $ | 223,714 | $ | 4,634 | $ | 228,348 | $ | 9,511 | $ | 237,859 | |||||||||||||||||||||||||
Depreciation | 29,623 | 257 | 29,880 | 1,413 | 31,293 | ||||||||||||||||||||||||||||||
Income (loss) from operations | 10,390 | 2,912 | 13,302 | 541 | 13,843 | ||||||||||||||||||||||||||||||
Net income (loss) | (271) | 2,055 | 1,784 | (540) | 1,244 | ||||||||||||||||||||||||||||||
Capital expenditures | 65,215 | 485 | 65,700 | 7,898 | 73,598 | ||||||||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||||||||
Operating revenues | $ | 184,634 | $ | 5,617 | $ | 190,251 | $ | 4,709 | $ | 194,960 | |||||||||||||||||||||||||
Depreciation | 27,062 | 266 | 27,328 | 782 | 28,110 | ||||||||||||||||||||||||||||||
Income (loss) from operations | 10,575 | 3,550 | 14,125 | (586) | 13,539 | ||||||||||||||||||||||||||||||
Net income (loss) | 157 | 2,576 | 2,733 | (1,018) | 1,715 | ||||||||||||||||||||||||||||||
Capital expenditures | 91,122 | 750 | 91,872 | 7,310 | 99,182 |
Three Months Ended September 30, | ||||||||||||||||
In thousands | Utility | Gas Storage | Other | Total | ||||||||||||
2017 | ||||||||||||||||
Operating revenues | $ | 81,126 | $ | 7,006 | $ | 58 | $ | 88,190 | ||||||||
Depreciation and amortization | 20,023 | 1,461 | — | 21,484 | ||||||||||||
Income (loss) from operations | (9,977 | ) | 3,543 | (222 | ) | (6,656 | ) | |||||||||
Net income (loss) | (10,349 | ) | 1,899 | (45 | ) | (8,495 | ) | |||||||||
Capital expenditures | 50,009 | 164 | 950 | 51,123 | ||||||||||||
2016 | ||||||||||||||||
Operating revenues | $ | 80,378 | $ | 7,293 | $ | 56 | $ | 87,727 | ||||||||
Depreciation and amortization | 19,173 | 1,455 | — | 20,628 | ||||||||||||
Income (loss) from operations | (7,264 | ) | 3,502 | (675 | ) | (4,437 | ) | |||||||||
Net income (loss) | (9,511 | ) | 1,813 | (342 | ) | (8,040 | ) | |||||||||
Capital expenditures | 36,238 | 437 | — | 36,675 |
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
In thousands | NGD | Other (NW Natural) | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||||||||
Operating revenues | $ | 671,484 | $ | 11,377 | $ | 682,861 | $ | 17,421 | $ | 700,282 | ||||||||||||||||||||||||||||
Depreciation | 59,481 | 543 | 60,024 | 2,734 | 62,758 | |||||||||||||||||||||||||||||||||
Income (loss) from operations | 119,549 | 7,881 | 127,430 | (79) | 127,351 | |||||||||||||||||||||||||||||||||
Net income (loss) | 71,680 | 5,644 | 77,324 | (4,409) | 72,915 | |||||||||||||||||||||||||||||||||
Capital expenditures | 128,857 | 441 | 129,298 | 15,565 | 144,863 | |||||||||||||||||||||||||||||||||
Total assets at June 30, 2023 | 4,176,376 | 53,538 | 4,229,914 | 306,791 | 4,536,705 | |||||||||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||||||||
Operating revenues | $ | 526,032 | $ | 10,843 | $ | 536,875 | $ | 8,386 | $ | 545,261 | ||||||||||||||||||||||||||||
Depreciation | 54,435 | 530 | 54,965 | 1,574 | 56,539 | |||||||||||||||||||||||||||||||||
Income (loss) from operations | 96,238 | 6,438 | 102,676 | (1,499) | 101,177 | |||||||||||||||||||||||||||||||||
Net income (loss) | 55,547 | 4,602 | 60,149 | (2,195) | 57,954 | |||||||||||||||||||||||||||||||||
Capital expenditures | 155,402 | 787 | 156,189 | 11,507 | 167,696 | |||||||||||||||||||||||||||||||||
Total assets at June 30, 2022 | 3,875,237 | 54,760 | 3,929,997 | 170,521 | 4,100,518 | |||||||||||||||||||||||||||||||||
Total assets at December 31, 2022 | 4,392,699 | 60,019 | 4,452,718 | 295,608 | 4,748,326 |
Nine Months Ended September 30, | ||||||||||||||||
In thousands | Utility | Gas Storage | Other | Total | ||||||||||||
2017 | ||||||||||||||||
Operating revenues | $ | 503,947 | $ | 17,635 | $ | 169 | $ | 521,751 | ||||||||
Depreciation and amortization | 59,541 | 4,383 | — | 63,924 | ||||||||||||
Income (loss) from operations | 77,706 | 5,748 | (725 | ) | 82,729 | |||||||||||
Net income (loss) | 31,980 | 2,716 | (152 | ) | 34,544 | |||||||||||
Capital expenditures | 143,128 | 1,363 | 950 | 145,441 | ||||||||||||
Total assets at September 30, 2017 | 2,835,860 | 252,041 | 17,706 | 3,105,607 | ||||||||||||
2016 | ||||||||||||||||
Operating revenues | $ | 422,617 | $ | 19,654 | $ | 168 | $ | 442,439 | ||||||||
Depreciation and amortization | 56,894 | 4,541 | — | 61,435 | ||||||||||||
Income from operations | 74,745 | 8,107 | (611 | ) | 82,241 | |||||||||||
Net income | 26,848 | 3,988 | (216 | ) | 30,620 | |||||||||||
Capital expenditures | 96,710 | 1,401 | — | 98,111 | ||||||||||||
Total assets at September 30, 2016 | 2,684,618 | 259,483 | 15,783 | 2,959,884 | ||||||||||||
Total assets at December 31, 2016 | 2,806,627 | 256,333 | 16,841 | 3,079,801 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
NGD margin calculation: | ||||||||||||||||||||||||||
NGD distribution revenues | $ | 218,988 | $ | 179,727 | $ | 662,049 | $ | 516,214 | ||||||||||||||||||
Other regulated services | 4,726 | 4,907 | 9,435 | 9,818 | ||||||||||||||||||||||
Total NGD operating revenues | 223,714 | 184,634 | 671,484 | 526,032 | ||||||||||||||||||||||
Less: NGD cost of gas | 102,490 | 79,776 | 308,295 | 225,420 | ||||||||||||||||||||||
Environmental remediation | 2,140 | 2,272 | 7,515 | 6,970 | ||||||||||||||||||||||
Revenue taxes | 9,159 | 8,208 | 28,134 | 21,532 | ||||||||||||||||||||||
NGD margin | $ | 109,925 | $ | 94,378 | $ | 327,540 | $ | 272,110 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In thousands | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Utility margin calculation: | ||||||||||||||||
Utility operating revenues (1) | $ | 81,126 | $ | 80,378 | $ | 503,947 | $ | 422,617 | ||||||||
Less: Utility cost of gas | 27,239 | 28,264 | 223,855 | 157,546 | ||||||||||||
Environmental remediation expense | 1,355 | 1,191 | 10,920 | 8,113 | ||||||||||||
Utility margin | $ | 52,532 | $ | 50,923 | $ | 269,172 | $ | 256,958 |
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
In thousands | NGD | Other (NW Natural) | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||
Natural gas sales | $ | 215,108 | $ | — | $ | 215,108 | $ | — | $ | 215,108 | ||||||||||||||||||||||
Gas storage revenue, net | — | 3,201 | 3,201 | — | 3,201 | |||||||||||||||||||||||||||
Asset management revenue, net | — | 502 | 502 | — | 502 | |||||||||||||||||||||||||||
Appliance retail center revenue | — | 932 | 932 | — | 932 | |||||||||||||||||||||||||||
Other revenue | 732 | — | 732 | 9,511 | 10,243 | |||||||||||||||||||||||||||
Revenue from contracts with customers | 215,840 | 4,635 | 220,475 | 9,511 | 229,986 | |||||||||||||||||||||||||||
Alternative revenue | 3,861 | — | 3,861 | — | 3,861 | |||||||||||||||||||||||||||
Leasing revenue | 4,012 | — | 4,012 | — | 4,012 | |||||||||||||||||||||||||||
Total operating revenues | $ | 223,713 | $ | 4,635 | $ | 228,348 | $ | 9,511 | $ | 237,859 | ||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||
Natural gas sales | $ | 190,041 | $ | — | $ | 190,041 | $ | — | $ | 190,041 | ||||||||||||||||||||||
Gas storage revenue, net | — | 3,039 | 3,039 | — | 3,039 | |||||||||||||||||||||||||||
Asset management revenue, net | — | 1,142 | 1,142 | — | 1,142 | |||||||||||||||||||||||||||
Appliance retail center revenue | — | 1,436 | 1,436 | — | 1,436 | |||||||||||||||||||||||||||
Other revenue | 628 | — | 628 | 4,709 | 5,337 | |||||||||||||||||||||||||||
Revenue from contracts with customers | 190,669 | 5,617 | 196,286 | 4,709 | 200,995 | |||||||||||||||||||||||||||
Alternative revenue | (10,333) | — | (10,333) | — | (10,333) | |||||||||||||||||||||||||||
Leasing revenue | 4,298 | — | 4,298 | — | 4,298 | |||||||||||||||||||||||||||
Total operating revenues | $ | 184,634 | $ | 5,617 | $ | 190,251 | $ | 4,709 | $ | 194,960 |
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
In thousands | NGD | Other (NW Natural) | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||||||||
Natural gas sales | $ | 666,502 | $ | — | $ | 666,502 | $ | — | $ | 666,502 | ||||||||||||||||||||||
Gas storage revenue, net | — | 6,000 | 6,000 | — | 6,000 | |||||||||||||||||||||||||||
Asset management revenue, net | — | 3,256 | 3,256 | — | 3,256 | |||||||||||||||||||||||||||
Appliance retail center revenue | — | 2,122 | 2,122 | — | 2,122 | |||||||||||||||||||||||||||
Other revenue | 1,462 | — | 1,462 | 17,421 | 18,883 | |||||||||||||||||||||||||||
Revenue from contracts with customers | 667,964 | 11,378 | 679,342 | 17,421 | 696,763 | |||||||||||||||||||||||||||
Alternative revenue | (4,491) | — | (4,491) | — | (4,491) | |||||||||||||||||||||||||||
Leasing revenue | 8,010 | — | 8,010 | — | 8,010 | |||||||||||||||||||||||||||
Total operating revenues | $ | 671,483 | $ | 11,378 | $ | 682,861 | $ | 17,421 | $ | 700,282 | ||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||
Natural gas sales | $ | 527,337 | $ | — | $ | 527,337 | $ | — | $ | 527,337 | ||||||||||||||||||||||
Gas storage revenue, net | — | 5,796 | 5,796 | — | 5,796 | |||||||||||||||||||||||||||
Asset management revenue, net | — | 1,894 | 1,894 | — | 1,894 | |||||||||||||||||||||||||||
Appliance retail center revenue | — | 3,153 | 3,153 | — | 3,153 | |||||||||||||||||||||||||||
Other revenue | 1,258 | — | 1,258 | 8,386 | 9,644 | |||||||||||||||||||||||||||
Revenue from contracts with customers | 528,595 | 10,843 | 539,438 | 8,386 | 547,824 | |||||||||||||||||||||||||||
Alternative revenue | (11,160) | — | (11,160) | — | (11,160) | |||||||||||||||||||||||||||
Leasing revenue | 8,597 | — | 8,597 | — | 8,597 | |||||||||||||||||||||||||||
Total operating revenues | $ | 526,032 | $ | 10,843 | $ | 536,875 | $ | 8,386 | $ | 545,261 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Lease revenue | ||||||||||||||||||||||||||
Operating leases | $ | 19 | $ | 19 | $ | 38 | $ | 37 | ||||||||||||||||||
Sales-type leases | 3,993 | 4,279 | 7,972 | 8,560 | ||||||||||||||||||||||
Total lease revenue | $ | 4,012 | $ | 4,298 | $ | 8,010 | $ | 8,597 |
In thousands | Operating | Sales-Type | Total | |||||||||||||||||
NW Natural: | ||||||||||||||||||||
Remainder of 2023 | $ | 311 | $ | 8,225 | $ | 8,536 | ||||||||||||||
2024 | 613 | 15,867 | 16,480 | |||||||||||||||||
2025 | 604 | 15,306 | 15,910 | |||||||||||||||||
2026 | 36 | 14,901 | 14,937 | |||||||||||||||||
2027 | 22 | 14,521 | 14,543 | |||||||||||||||||
Thereafter | — | 222,299 | 222,299 | |||||||||||||||||
Total minimum lease payments | $ | 1,586 | $ | 291,119 | $ | 292,705 | ||||||||||||||
Less: imputed interest | 159,445 | |||||||||||||||||||
Total leases receivable | $ | 131,674 | ||||||||||||||||||
Other (NW Holdings): | ||||||||||||||||||||
Remainder of 2023 | $ | 26 | $ | — | $ | 26 | ||||||||||||||
2024 | 52 | — | 52 | |||||||||||||||||
2025 | 53 | — | 53 | |||||||||||||||||
2026 | 56 | — | 56 | |||||||||||||||||
2027 | 57 | — | 57 | |||||||||||||||||
Thereafter | 857 | — | 857 | |||||||||||||||||
Total minimum lease payments | $ | 1,101 | $ | — | $ | 1,101 | ||||||||||||||
NW Holdings: | ||||||||||||||||||||
Remainder of 2023 | $ | 337 | $ | 8,225 | $ | 8,562 | ||||||||||||||
2024 | 665 | 15,867 | 16,532 | |||||||||||||||||
2025 | 657 | 15,306 | 15,963 | |||||||||||||||||
2026 | 92 | 14,901 | 14,993 | |||||||||||||||||
2027 | 79 | 14,521 | 14,600 | |||||||||||||||||
Thereafter | 857 | 222,299 | 223,156 | |||||||||||||||||
Total minimum lease payments | $ | 2,687 | $ | 291,119 | $ | 293,806 | ||||||||||||||
Less: imputed interest | 159,445 | |||||||||||||||||||
Total leases receivable | $ | 131,674 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
NW Natural: | ||||||||||||||||||||||||||
Operating lease expense | $ | 1,790 | $ | 1,741 | $ | 3,565 | $ | 3,468 | ||||||||||||||||||
Short-term lease expense | 278 | 416 | 358 | 579 | ||||||||||||||||||||||
Other (NW Holdings): | ||||||||||||||||||||||||||
Operating lease expense | $ | 40 | $ | 8 | $ | 80 | $ | 15 | ||||||||||||||||||
NW Holdings: | ||||||||||||||||||||||||||
Operating lease expense | $ | 1,830 | $ | 1,749 | $ | 3,645 | $ | 3,483 | ||||||||||||||||||
Short-term lease expense | 278 | 416 | 358 | 579 |
In thousands | June 30, | December 31, | ||||||||||||||||||
2023 | 2022 | 2022 | ||||||||||||||||||
NW Natural: | ||||||||||||||||||||
Operating lease right of use asset | $ | 71,508 | $ | 73,706 | $ | 72,720 | ||||||||||||||
Operating lease liabilities - current liabilities | $ | 1,598 | $ | 1,298 | $ | 1,363 | ||||||||||||||
Operating lease liabilities - non-current liabilities | 77,490 | 78,789 | 78,345 | |||||||||||||||||
Total operating lease liabilities | $ | 79,088 | $ | 80,087 | $ | 79,708 | ||||||||||||||
Other (NW Holdings): | ||||||||||||||||||||
Operating lease right of use asset | $ | 588 | $ | 48 | $ | 709 | ||||||||||||||
Operating lease liabilities - current liabilities | $ | 134 | $ | 17 | $ | 151 | ||||||||||||||
Operating lease liabilities - non-current liabilities | 461 | 37 | 620 | |||||||||||||||||
Total operating lease liabilities | $ | 595 | $ | 54 | $ | 771 | ||||||||||||||
NW Holdings: | ||||||||||||||||||||
Operating lease right of use asset | $ | 72,096 | $ | 73,754 | $ | 73,429 | ||||||||||||||
Operating lease liabilities - current liabilities | $ | 1,732 | $ | 1,315 | $ | 1,514 | ||||||||||||||
Operating lease liabilities - non-current liabilities | 77,951 | 78,826 | 78,965 | |||||||||||||||||
Total operating lease liabilities | $ | 79,683 | $ | 80,141 | $ | 80,479 |
In thousands | June 30, | December 31, | ||||||||||||||||||
2023 | 2022 | 2022 | ||||||||||||||||||
Weighted-average remaining lease term (years) | 16.8 | 17.7 | 17.2 | |||||||||||||||||
Weighted-average discount rate | 7.3 | % | 7.2 | % | 7.3 | % |
In thousands | NW Natural | Other (NW Holdings) | NW Holdings | |||||||||||||||||
Remainder of 2023 | $ | 3,610 | $ | 83 | $ | 3,693 | ||||||||||||||
2024 | 7,307 | 162 | 7,469 | |||||||||||||||||
2025 | 7,193 | 155 | 7,348 | |||||||||||||||||
2026 | 7,361 | 140 | 7,501 | |||||||||||||||||
2027 | 7,538 | 107 | 7,645 | |||||||||||||||||
Thereafter | 108,991 | 12 | 109,003 | |||||||||||||||||
Total lease payments | 142,000 | 659 | 142,659 | |||||||||||||||||
Less: imputed interest | 62,912 | 64 | 62,976 | |||||||||||||||||
Total lease obligations | 79,088 | 595 | 79,683 | |||||||||||||||||
Less: current obligations | 1,598 | 134 | 1,732 | |||||||||||||||||
Long-term lease obligations | $ | 77,490 | $ | 461 | $ | 77,951 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
NW Natural: | ||||||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||||||||||||
Operating cash flows from operating leases | $ | 1,798 | $ | 1,733 | $ | 3,565 | $ | 3,466 | ||||||||||||||||||
Finance cash flows from finance leases | — | 307 | 173 | 382 | ||||||||||||||||||||||
Right of use assets obtained in exchange for lease obligations | ||||||||||||||||||||||||||
Operating leases | $ | 81 | $ | (14) | $ | 81 | $ | — | ||||||||||||||||||
Finance leases | — | 120 | 173 | 220 | ||||||||||||||||||||||
Other (NW Holdings): | ||||||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||||||||||||
Operating cash flows from operating leases | $ | 39 | $ | 6 | $ | 78 | $ | 12 | ||||||||||||||||||
Right of use assets obtained in exchange for lease obligations | ||||||||||||||||||||||||||
Finance leases | $ | — | $ | — | $ | 90 | $ | — | ||||||||||||||||||
NW Holdings: | ||||||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||||||||||||
Operating cash flows from operating leases | $ | 1,837 | $ | 1,739 | $ | 3,643 | $ | 3,478 | ||||||||||||||||||
Finance cash flows from finance leases | — | 307 | 173 | 382 | ||||||||||||||||||||||
Right of use assets obtained in exchange for lease obligations | ||||||||||||||||||||||||||
Operating leases | $ | 81 | $ | (14) | $ | 81 | $ | — | ||||||||||||||||||
Finance leases | — | 120 | 263 | 220 | ||||||||||||||||||||||
Stock price on valuation date | $ | 59.90 | |
Performance term (in years) | 3.0 | ||
Quarterly dividends paid per share(1) | $ | 0.4700 | |
Expected dividend yield | 3.09 | % | |
Dividend discount factor | 0.9156 |
June 30, 2023 | June 30, 2022 | December 31, 2022 | ||||||||||||||||||||||||
In millions | Balance Outstanding | Weighted Average Interest Rate(1) | Balance Outstanding | Weighted Average Interest Rate(1) | Balance Outstanding | Weighted Average Interest Rate(1) | ||||||||||||||||||||
NW Natural: | ||||||||||||||||||||||||||
Commercial paper | $ | — | — | % | $ | 78.7 | 2.0 | % | $ | 170.2 | 4.6 | % | ||||||||||||||
Other (NW Holdings): | ||||||||||||||||||||||||||
Credit agreement | 41.0 | 6.2 | % | 144.0 | 2.7 | % | 88.0 | 5.3 | % | |||||||||||||||||
NW Holdings | $ | 41.0 | $ | 222.7 | $ | 258.2 |
June 30, 2023 | June 30, 2022 | December 31, 2022 | ||||||||||||||||||||||||
In millions | Balance Outstanding | Weighted Average Interest Rate(1) | Balance Outstanding | Weighted Average Interest Rate(1) | Balance Outstanding | Weighted Average Interest Rate(2) | ||||||||||||||||||||
NW Natural first mortgage bonds | $ | 1,334.7 | 4.7 | % | $ | 994.7 | 4.4 | % | $ | 1,134.7 | 4.5 | % | ||||||||||||||
NW Holdings credit agreement | 100.0 | 5.5 | % | — | — | % | 100.0 | 4.2 | % | |||||||||||||||||
NWN Water credit agreement | 50.0 | 5.5 | % | — | — | % | 50.0 | 4.2 | % | |||||||||||||||||
NWN Water term loan | 55.0 | 4.8 | % | 55.0 | 2.3 | % | 55.0 | 2.5 | % | |||||||||||||||||
Other long-term debt | 5.9 | 4.2 | 6.2 | |||||||||||||||||||||||
Long-term debt, gross | $ | 1,545.6 | $ | 1,053.9 | $ | 1,345.9 | ||||||||||||||||||||
Less: unamortized debt issuance costs | 10.3 | 8.0 | 9.0 | |||||||||||||||||||||||
Less: current maturities | 240.7 | 0.4 | 90.7 | |||||||||||||||||||||||
Total long-term debt | $ | 1,294.6 | $ | 1,045.5 | $ | 1,246.2 |
In millions | Notional Amount | Effective Date | Expiration Date | Fixed Rate | ||||||||||
NW Holdings | $ | 100.0 | 1/17/2023 | 3/15/2024 | 4.7 | % | ||||||||
NWN Water | $ | 55.0 | 1/19/2023 | 6/10/2026 | 3.8 | % |
June 30, | December 31, | |||||||||||||||||||
In thousands | 2023 | 2022 | 2022 | |||||||||||||||||
NW Natural: | ||||||||||||||||||||
Gross long-term debt | $ | 1,334,700 | $ | 994,700 | $ | 1,134,700 | ||||||||||||||
Unamortized debt issuance costs | (10,141) | (7,938) | (8,823) | |||||||||||||||||
Carrying amount | $ | 1,324,559 | $ | 986,762 | $ | 1,125,877 | ||||||||||||||
Estimated fair value(1) | $ | 1,176,519 | $ | 891,064 | $ | 944,383 | ||||||||||||||
NW Holdings: | ||||||||||||||||||||
Gross long-term debt | $ | 1,545,553 | $ | 1,053,912 | $ | 1,345,851 | ||||||||||||||
Unamortized debt issuance costs | (10,261) | (8,031) | (8,987) | |||||||||||||||||
Carrying amount | $ | 1,535,292 | $ | 1,045,881 | $ | 1,336,864 | ||||||||||||||
Estimated fair value(1) | $ | 1,385,612 | $ | 950,597 | $ | 1,148,395 |
September 30, | December 31, | |||||||||||
In thousands | 2017 | 2016 | 2016 | |||||||||
Gross long-term debt | $ | 786,700 | $ | 601,700 | $ | 726,700 | ||||||
Unamortized debt issuance costs | (7,276 | ) | (6,487 | ) | (7,377 | ) | ||||||
Carrying amount | $ | 779,424 | $ | 595,213 | $ | 719,323 | ||||||
Estimated fair value(1) | $ | 847,068 | $ | 701,183 | $ | 793,339 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1,049 | $ | 1,529 | $ | 28 | $ | 47 | $ | 2,098 | $ | 3,059 | $ | 56 | $ | 94 | ||||||||||||||||||||||||||||||||||
Interest cost | 5,218 | 3,659 | 248 | 179 | 10,436 | 7,318 | 496 | 359 | ||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (6,210) | (6,427) | — | — | (12,871) | (12,854) | — | — | ||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service credit | — | — | — | (84) | — | — | — | (167) | ||||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | 140 | 3,199 | — | 99 | 279 | 6,397 | — | 198 | ||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost (credit) | 197 | 1,960 | 276 | 241 | (58) | 3,920 | 552 | 484 | ||||||||||||||||||||||||||||||||||||||||||
Amount allocated to construction | (439) | (616) | (9) | (17) | (913) | (1,280) | (20) | (35) | ||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost (credit) charged to expense | (242) | 1,344 | 267 | 224 | (971) | 2,640 | 532 | 449 | ||||||||||||||||||||||||||||||||||||||||||
Amortization of regulatory balancing account | 1,281 | 1,281 | — | — | 4,082 | 4,082 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Net amount charged to expense | $ | 1,039 | $ | 2,625 | $ | 267 | $ | 224 | $ | 3,111 | $ | 6,722 | $ | 532 | $ | 449 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||
In thousands | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||
Service cost | $ | 1,881 | $ | 1,978 | $ | 98 | $ | 119 | $ | 5,621 | $ | 5,866 | $ | 295 | $ | 361 | ||||||||||||||||
Interest cost | 4,484 | 4,607 | 274 | 301 | 13,428 | 13,755 | 822 | 901 | ||||||||||||||||||||||||
Expected return on plan assets | (5,112 | ) | (5,017 | ) | — | — | (15,337 | ) | (15,051 | ) | — | — | ||||||||||||||||||||
Amortization of prior service costs | 32 | 57 | (117 | ) | (117 | ) | 95 | 173 | (351 | ) | (351 | ) | ||||||||||||||||||||
Amortization of net actuarial loss | 3,656 | 3,555 | 138 | 192 | 10,899 | 10,559 | 415 | 575 | ||||||||||||||||||||||||
Settlement expense | — | 193 | — | — | — | 193 | — | — | ||||||||||||||||||||||||
Net periodic benefit cost | 4,941 | 5,373 | 393 | 495 | 14,706 | 15,495 | 1,181 | 1,486 | ||||||||||||||||||||||||
Amount allocated to construction | (1,581 | ) | (1,556 | ) | (136 | ) | (163 | ) | (4,660 | ) | (4,678 | ) | (403 | ) | (491 | ) | ||||||||||||||||
Amount deferred to regulatory balancing account(1) | (1,484 | ) | (1,542 | ) | — | — | (4,519 | ) | (4,762 | ) | — | — | ||||||||||||||||||||
Net amount charged to expense | $ | 1,876 | $ | 2,275 | $ | 257 | $ | 332 | $ | 5,527 | $ | 6,055 | $ | 778 | $ | 995 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Beginning balance | $ | (6,312) | $ | (11,207) | $ | (6,414) | $ | (11,404) | ||||||||||||||||||
Amounts reclassified from AOCL: | ||||||||||||||||||||||||||
Amortization of actuarial losses | 140 | 268 | 279 | 536 | ||||||||||||||||||||||
Total reclassifications before tax | 140 | 268 | 279 | 536 | ||||||||||||||||||||||
Tax benefit | (37) | (71) | (74) | (142) | ||||||||||||||||||||||
Total reclassifications for the period | 103 | 197 | 205 | 394 | ||||||||||||||||||||||
Ending balance | $ | (6,209) | $ | (11,010) | $ | (6,209) | $ | (11,010) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In thousands | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Beginning balance | $ | (6,678 | ) | $ | (6,825 | ) | $ | (6,951 | ) | $ | (7,162 | ) | ||||
Amounts reclassified to AOCL | — | (1,795 | ) | — | (1,795 | ) | ||||||||||
Amounts reclassified from AOCL: | ||||||||||||||||
Amortization of actuarial losses | 248 | 371 | 698 | 962 | ||||||||||||
Loss from plan settlement | — | 193 | — | 193 | ||||||||||||
Total reclassifications before tax | 248 | (1,231 | ) | 698 | (640 | ) | ||||||||||
Tax (benefit) expense | (98 | ) | 486 | (275 | ) | 232 | ||||||||||
Total reclassifications for the period | 150 | (745 | ) | 423 | (408 | ) | ||||||||||
Ending balance | $ | (6,528 | ) | $ | (7,570 | ) | $ | (6,528 | ) | $ | (7,570 | ) |
Three Months Ended June 30, | ||||||||||||||||||||||||||
NW Holdings | NW Natural | |||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Income tax at statutory rate (federal) | $ | 312 | $ | 460 | $ | 442 | $ | 744 | ||||||||||||||||||
State income tax | 211 | 161 | 217 | 219 | ||||||||||||||||||||||
Increase (decrease): | ||||||||||||||||||||||||||
Differences required to be flowed-through by regulatory commissions | (161) | (62) | (160) | (62) | ||||||||||||||||||||||
Other, net | (119) | (89) | (177) | (91) | ||||||||||||||||||||||
Total benefit for income taxes | $ | 243 | $ | 470 | $ | 322 | $ | 810 | ||||||||||||||||||
Effective income tax rate | 16.3 | % | 21.5 | % | 15.3 | % | 22.9 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
Dollars in thousands | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||
Income taxes at statutory rates (federal and state) | $ | (5,838 | ) | $ | (5,339 | ) | $ | 22,487 | $ | 20,620 | ||||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||
NW Holdings | NW Natural | |||||||||||||||||||||||||||||||||||||||||
In thousands | In thousands | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Income tax at statutory rate (federal) | Income tax at statutory rate (federal) | $ | 20,644 | $ | 16,243 | $ | 21,854 | $ | 16,859 | |||||||||||||||||||||||||||||||||
State income tax | State income tax | 8,360 | 6,674 | 8,623 | 6,803 | |||||||||||||||||||||||||||||||||||||
Increase (decrease): | Increase (decrease): | |||||||||||||||||||||||||||||||||||||||||
Differences required to be flowed-through by regulatory commissions | (302 | ) | (381 | ) | 1,282 | 1,202 | Differences required to be flowed-through by regulatory commissions | (3,070) | (3,235) | (3,069) | (3,235) | |||||||||||||||||||||||||||||||
Other, net | 21 | 246 | (1,296 | ) | (528 | ) | Other, net | (544) | (289) | (664) | (294) | |||||||||||||||||||||||||||||||
Total provision for income taxes | $ | (6,119 | ) | $ | (5,474 | ) | $ | 22,473 | $ | 21,294 | Total provision for income taxes | $ | 25,390 | $ | 19,393 | $ | 26,744 | $ | 20,133 | |||||||||||||||||||||||
Effective tax rate | 41.9 | % | 40.5 | % | 39.4 | % | 41.0 | % | ||||||||||||||||||||||||||||||||||
Effective income tax rate | Effective income tax rate | 25.8 | % | 25.1 | % | 25.7 | % | 25.1 | % |
June 30, | December 31, | |||||||||||||||||||
In thousands | 2023 | 2022 | 2022 | |||||||||||||||||
NW Natural: | ||||||||||||||||||||
NGD plant in service | $ | 4,060,392 | $ | 3,782,197 | $ | 3,992,676 | ||||||||||||||
NGD construction work in progress | 123,163 | 195,118 | 78,897 | |||||||||||||||||
Less: Accumulated depreciation | 1,146,202 | 1,121,444 | 1,115,690 | |||||||||||||||||
NGD plant, net | 3,037,353 | 2,855,871 | 2,955,883 | |||||||||||||||||
Other plant in service | 70,364 | 69,623 | 70,368 | |||||||||||||||||
Other construction work in progress | 7,181 | 5,529 | 6,606 | |||||||||||||||||
Less: Accumulated depreciation | 22,068 | 21,167 | 21,541 | |||||||||||||||||
Other plant, net | 55,477 | 53,985 | 55,433 | |||||||||||||||||
Total property, plant, and equipment, net | $ | 3,092,830 | $ | 2,909,856 | $ | 3,011,316 | ||||||||||||||
Other (NW Holdings): | ||||||||||||||||||||
Other plant in service | $ | 122,161 | $ | 59,718 | $ | 92,979 | ||||||||||||||
Other construction work in progress | 8,732 | 17,051 | 20,040 | |||||||||||||||||
Less: Accumulated depreciation | 12,960 | 7,944 | 9,935 | |||||||||||||||||
Other plant, net | $ | 117,933 | $ | 68,825 | $ | 103,084 | ||||||||||||||
NW Holdings: | ||||||||||||||||||||
Total property, plant, and equipment, net | $ | 3,210,763 | $ | 2,978,681 | $ | 3,114,400 | ||||||||||||||
NW Natural: | ||||||||||||||||||||
Capital expenditures in accrued liabilities | $ | 28,466 | $ | 44,052 | $ | 24,584 | ||||||||||||||
NW Holdings: | ||||||||||||||||||||
Capital expenditures in accrued liabilities | $ | 31,439 | $ | 45,079 | $ | 25,318 |
September 30, | December 31, | |||||||||||
In thousands | 2017 | 2016 | 2016 | |||||||||
Utility plant in service | $ | 2,934,424 | $ | 2,815,340 | $ | 2,843,243 | ||||||
Utility construction work in progress | 145,148 | 58,470 | 62,264 | |||||||||
Less: Accumulated depreciation | 937,498 | 899,851 | 903,096 | |||||||||
Utility plant, net | 2,142,074 | 1,973,959 | 2,002,411 | |||||||||
Non-utility plant in service | 300,224 | 298,586 | 299,378 | |||||||||
Non-utility construction work in progress | 4,326 | 4,800 | 3,931 | |||||||||
Less: Accumulated depreciation | 48,834 | 43,483 | 44,820 | |||||||||
Non-utility plant, net | 255,716 | 259,903 | 258,489 | |||||||||
Total property, plant, and equipment | $ | 2,397,790 | $ | 2,233,862 | $ | 2,260,900 | ||||||
Capital expenditures in accrued liabilities | $ | 41,732 | $ | 8,918 | $ | 9,547 |
September 30, | December 31, | |||||||||||
In thousands | 2017 | 2016 | 2016 | |||||||||
Gas reserves, current | $ | 16,218 | $ | 16,257 | $ | 15,926 | ||||||
Gas reserves, non-current | 171,318 | 171,280 | 171,610 | |||||||||
Less: Accumulated amortization | 83,442 | 67,304 | 71,426 | |||||||||
Total gas reserves(1) | 104,094 | 120,233 | 116,110 | |||||||||
Less: Deferred taxes on gas reserves | 29,298 | 25,799 | 28,119 | |||||||||
Net investment in gas reserves | $ | 74,796 | $ | 94,434 | $ | 87,991 |
NW Holdings | NW Natural | ||||||||||||||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | ||||||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2022 | 2023 | 2022 | 2022 | |||||||||||||||||||||||||||||
Investments in life insurance policies | $ | 46,772 | $ | 48,735 | $ | 49,358 | $ | 46,772 | $ | 48,735 | $ | 49,358 | |||||||||||||||||||||||
Investments in gas reserves, non-current | 21,488 | 24,695 | 22,970 | 21,488 | 24,695 | 22,970 | |||||||||||||||||||||||||||||
Investment in unconsolidated affiliates | 36,070 | 22,597 | 23,376 | 19,588 | 8,056 | 7,782 | |||||||||||||||||||||||||||||
Total other investments | $ | 104,330 | $ | 96,027 | $ | 95,704 | $ | 87,848 | $ | 81,486 | $ | 80,110 |
June 30, | December 31, | |||||||||||||||||||
In thousands | 2023 | 2022 | 2022 | |||||||||||||||||
Natural gas (in therms): | ||||||||||||||||||||
Financial | 801,020 | 718,965 | 852,435 | |||||||||||||||||
Physical | 538,794 | 516,590 | 463,254 | |||||||||||||||||
Foreign exchange | $ | 10,438 | $ | 7,659 | $ | 7,617 |
September 30, | December 31, | |||||||||||
In thousands | 2017 | 2016 | 2016 | |||||||||
Natural gas (in therms): | ||||||||||||
Financial | 521,080 | 537,100 | 477,430 | |||||||||
Physical | 750,650 | 621,230 | 535,450 | |||||||||
Foreign exchange | $ | 6,933 | $ | 8,404 | $ | 7,497 |
Three Months Ended September 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
In thousands | Natural gas commodity | Foreign exchange | Natural gas commodity | Foreign exchange | In thousands | Natural gas commodity | Foreign Exchange | Natural gas commodity | Foreign Exchange | |||||||||||||||||||||||||||||||||
Benefit (expense) to cost of gas | $ | (2,566 | ) | $ | 51 | $ | (8,045 | ) | $ | (52 | ) | Benefit (expense) to cost of gas | $ | (11,936) | $ | 168 | $ | (29,332) | $ | (153) | ||||||||||||||||||||||
Operating gain (loss) | 28 | — | (110 | ) | — | |||||||||||||||||||||||||||||||||||||
Operating revenues (expense) | Operating revenues (expense) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Amounts deferred to regulatory accounts on balance sheet | 2,548 | (51 | ) | 8,118 | 52 | Amounts deferred to regulatory accounts on balance sheet | 11,936 | (168) | 29,332 | 153 | ||||||||||||||||||||||||||||||||
Total gain (loss) in pre-tax earnings | $ | 10 | $ | — | $ | (37 | ) | $ | — | Total gain (loss) in pre-tax earnings | $ | — | $ | — | $ | — | $ | — |
Six Months Ended June 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
In thousands | Natural gas commodity | Foreign exchange | Natural gas commodity | Foreign exchange | ||||||||||||||||||||||
Benefit (expense) to cost of gas | $ | (73,257) | $ | 181 | $ | 44,453 | $ | (73) | ||||||||||||||||||
Operating revenues (expense) | — | — | — | — | ||||||||||||||||||||||
Amounts deferred to regulatory accounts on balance sheet | 73,257 | (181) | (44,453) | 73 | ||||||||||||||||||||||
Total gain (loss) in pre-tax earnings | $ | — | $ | — | $ | — | $ | — |
Nine Months Ended September 30, | ||||||||||||||||
2017 | 2016 | |||||||||||||||
In thousands | Natural gas commodity | Foreign exchange | Natural gas commodity | Foreign exchange | ||||||||||||
Benefit (expense) to cost of gas | $ | (19,081 | ) | $ | 275 | $ | 5,562 | $ | 5 | |||||||
Operating loss | (1,249 | ) | — | (266 | ) | — | ||||||||||
Amounts deferred to regulatory accounts on balance sheet | 19,895 | (275 | ) | (5,385 | ) | (5 | ) | |||||||||
Total loss in pre-tax earnings | $ | (435 | ) | $ | — | $ | (89 | ) | $ | — |
Credit Rating Downgrade Scenarios | ||||||||||||||||||||
In thousands | (Current Ratings) A+/A3 | BBB+/Baa1 | BBB/Baa2 | BBB-/Baa3 | Speculative | |||||||||||||||
With Adequate Assurance Calls | $ | — | $ | — | $ | — | $ | (3,138 | ) | $ | (9,146 | ) | ||||||||
Without Adequate Assurance Calls | — | — | — | (3,138 | ) | (7,113 | ) |
In millions | Notional Amount | Effective Date | Expiration Date | Fixed Rate | ||||||||||
NW Holdings | $ | 100.0 | 1/17/2023 | 3/15/2024 | 4.7 | % | ||||||||
NWN Water | $ | 55.0 | 1/19/2023 | 6/10/2026 | 3.8 | % |
Current Liabilities | Non-Current Liabilities | |||||||||||||||||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2022 | 2023 | 2022 | 2022 | ||||||||||||||||||||||||||||||||
Portland Harbor site: | ||||||||||||||||||||||||||||||||||||||
Gasco/Siltronic Sediments | $ | 8,103 | $ | 6,144 | $ | 9,744 | $ | 42,120 | $ | 40,740 | $ | 42,120 | ||||||||||||||||||||||||||
Other Portland Harbor | 2,838 | 2,313 | 2,634 | 10,143 | 8,613 | 11,270 | ||||||||||||||||||||||||||||||||
Gasco/Siltronic Upland site | 11,424 | 11,050 | 16,067 | 33,516 | 34,352 | 35,457 | ||||||||||||||||||||||||||||||||
Front Street site | 513 | 585 | 457 | 939 | 868 | 879 | ||||||||||||||||||||||||||||||||
Oregon Steel Mills | — | — | — | 179 | 179 | 179 | ||||||||||||||||||||||||||||||||
Total | $ | 22,878 | $ | 20,092 | $ | 28,902 | $ | 86,897 | $ | 84,752 | $ | 89,905 |
Current Liabilities | Non-Current Liabilities | |||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||
In thousands | 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | ||||||||||||||||||
Portland Harbor site: | ||||||||||||||||||||||||
Gasco/Siltronic Sediments | $ | 860 | $ | 1,726 | $ | 869 | $ | 43,796 | $ | 42,880 | $ | 43,972 | ||||||||||||
Other Portland Harbor | 1,379 | 1,461 | 1,970 | 3,618 | 4,362 | 4,148 | ||||||||||||||||||
Gasco/Siltronic Upland site | 7,537 | 8,191 | 10,657 | 48,758 | 49,928 | 49,183 | ||||||||||||||||||
Central Service Center site | 31 | 112 | 73 | — | — | — | ||||||||||||||||||
Front Street site | 846 | 841 | 906 | 10,788 | 7,818 | 7,786 | ||||||||||||||||||
Oregon Steel Mills | — | — | — | 179 | 179 | 179 | ||||||||||||||||||
Total | $ | 10,653 | $ | 12,331 | $ | 14,475 | $ | 107,139 | $ | 105,167 | $ | 105,268 |
June 30, | December 31, | |||||||||||||||||||
In thousands | 2023 | 2022 | 2022 | |||||||||||||||||
Deferred costs and interest (1) | $ | 51,237 | $ | 48,814 | $ | 47,666 | ||||||||||||||
Accrued site liabilities (2) | 109,727 | 104,798 | 118,763 | |||||||||||||||||
Insurance proceeds and interest | (56,055) | (60,226) | (54,784) | |||||||||||||||||
Total regulatory asset deferral(1) | $ | 104,909 | $ | 93,386 | $ | 111,645 | ||||||||||||||
Current regulatory assets(3) | 6,749 | 6,975 | 7,392 | |||||||||||||||||
Long-term regulatory assets(3) | 98,160 | 86,411 | 104,253 |
September 30, | December 31, | |||||||||||
In thousands | 2017 | 2016 | 2016 | |||||||||
Deferred costs and interest (1) | $ | 52,888 | $ | 54,704 | $ | 53,039 | ||||||
Accrued site liabilities (2) | 117,388 | 117,202 | 119,443 | |||||||||
Insurance proceeds and interest | (100,575 | ) | (97,893 | ) | (98,523 | ) | ||||||
Total regulatory asset deferral(1) | $ | 69,701 | $ | 74,013 | $ | 73,959 | ||||||
Current regulatory assets(3) | 6,362 | 9,734 | 9,989 | |||||||||
Long-term regulatory assets(3) | 63,339 | 64,279 | 63,970 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Diluted earnings per share - Total(1) | $ | 0.03 | $ | 0.05 | $ | 2.03 | $ | 1.77 | ||||||||||||||||||
Diluted earnings (loss) per share - NGD segment(2) | (0.01) | — | 2.00 | 1.70 | ||||||||||||||||||||||
Diluted earnings per share - NW Holdings - other(2) | 0.04 | 0.05 | 0.03 | 0.07 |
Three Months Ended June 30, | ||||||||||||||||||||||||||
2023 | 2022 | QTD | ||||||||||||||||||||||||
In thousands, except per share data | Amount | Per Share | Amount | Per Share | Change | |||||||||||||||||||||
Consolidated net income | $ | 1,244 | $ | 0.03 | $ | 1,715 | $ | 0.05 | $ | (471) |
Three Months Ended September 30, | ||||||||||||||||||
2017 | 2016 | $ | ||||||||||||||||
In thousands, except per share data | Amount | Per Share | Amount | Per Share | Change | |||||||||||||
Consolidated net loss | $ | (8,495 | ) | $ | (0.30 | ) | $ | (8,040 | ) | $ | (0.29 | ) | $ | (455 | ) | |||
Utility margin | 52,532 | 50,923 | 1,609 | |||||||||||||||
Gas storage operating revenues | 7,006 | 7,293 | (287 | ) |
Three Months Ended June 30, | ||||||||||||||||||||
2023 | 2022 | QTD | ||||||||||||||||||
In thousands | Amount | Amount | Change | |||||||||||||||||
Consolidated net income | $ | 1,784 | $ | 2,733 | $ | (949) | ||||||||||||||
Natural gas distribution margin | $ | 109,925 | $ | 94,378 | $ | 15,547 |
Nine Months Ended September 30, | ||||||||||||||||||
2017 | 2016 | $ | ||||||||||||||||
In thousands, except per share data | Amount | Per Share | Amount | Per Share | Change | |||||||||||||
Consolidated net income | $ | 34,544 | $ | 1.20 | $ | 30,620 | $ | 1.11 | $ | 3,924 | ||||||||
Adjustments: | ||||||||||||||||||
Regulatory environmental disallowance, net of taxes ($1.3 million for 2016)(1) | — | — | 1,996 | 0.07 | (1,996 | ) | ||||||||||||
Adjusted consolidated net income(1) | $ | 34,544 | $ | 1.20 | $ | 32,616 | $ | 1.18 | $ | 1,928 | ||||||||
Utility margin | $ | 269,172 | $ | 256,958 | $ | 12,214 | ||||||||||||
Gas storage operating revenues | 17,635 | 19,654 | (2,019 | ) |
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
2023 | 2022 | YTD | ||||||||||||||||||||||||||||||
In thousands, except per share data | Amount | Per Share | Amount | Per Share | Change | |||||||||||||||||||||||||||
Consolidated net income | $ | 72,915 | $ | 2.03 | $ | 57,954 | $ | 1.77 | $ | 14,961 | ||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||
2023 | 2022 | YTD | ||||||||||||||||||
In thousands | Amount | Amount | Change | |||||||||||||||||
Consolidated net income | $ | 77,324 | $ | 60,149 | $ | 17,175 | ||||||||||||||
Natural gas distribution margin | $ | 327,540 | $ | 272,110 | $ | 55,430 |
Three Months Ended June 30, | Six Months Ended June 30, | QTD Change | YTD Change | |||||||||||||||||||||||||||||||||||
Per common share | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||
Dividends paid | $ | 0.4850 | $ | 0.4825 | $ | 0.9700 | $ | 0.9650 | $ | 0.0025 | $ | 0.0050 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
Per common share | 2017 | 2016 | 2017 | 2016 | QTR Change | YTD Change | ||||||||||||||||||
Dividends paid | $ | 0.4700 | $ | 0.4675 | $ | 1.4100 | $ | 1.4025 | $ | 0.0025 | $ | 0.0075 |
Three Months Ended June 30, | Six Months Ended June 30, | QTD Change | YTD Change | |||||||||||||||||||||||||||||||||||
In thousands, except EPS data | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||
NGD net income (loss) | $ | (271) | $ | 157 | $ | 71,680 | $ | 55,547 | $ | (428) | $ | 16,133 | ||||||||||||||||||||||||||
Diluted EPS - NGD segment | $ | (0.01) | $ | — | $ | 2.00 | $ | 1.70 | $ | (0.01) | $ | 0.30 | ||||||||||||||||||||||||||
Gas sold and delivered (in therms) | 236,366 | 268,553 | 699,415 | 696,939 | (32,187) | 2,476 | ||||||||||||||||||||||||||||||||
NGD margin(1) | $ | 109,925 | $ | 94,378 | $ | 327,540 | $ | 272,110 | $ | 15,547 | $ | 55,430 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Dollars and therms in thousands, except EPS data | 2017 | 2016 | 2017 | 2016 | QTR Change | YTD Change | |||||||||||||||||
Utility net income (loss) | $ | (10,349 | ) | $ | (9,511 | ) | $ | 31,980 | $ | 26,848 | $ | (838 | ) | $ | 5,132 | ||||||||
EPS - utility segment | $ | (0.36 | ) | $ | (0.35 | ) | $ | 1.11 | $ | 0.97 | $ | (0.01 | ) | $ | 0.14 | ||||||||
Gas sold and delivered (in therms) | 163,621 | 162,205 | 865,903 | 727,687 | 1,416 | 138,216 | |||||||||||||||||
Utility margin(1) | $ | 52,532 | $ | 50,923 | $ | 269,172 | $ | 256,958 | $ | 1,609 | $ | 12,214 |
Three Months Ended June 30, | Six Months Ended June 30, | Favorable/ (Unfavorable) | ||||||||||||||||||||||||||||||||||||
In thousands, except degree day and customer data | 2023 | 2022 | 2023 | 2022 | QTD Change | YTD Change | ||||||||||||||||||||||||||||||||
NGD volumes (therms) | ||||||||||||||||||||||||||||||||||||||
Residential and commercial sales | 122,977 | 147,447 | 453,642 | 441,374 | (24,470) | 12,268 | ||||||||||||||||||||||||||||||||
Industrial sales and transportation | 113,389 | 121,106 | 245,773 | 255,565 | (7,717) | (9,792) | ||||||||||||||||||||||||||||||||
Total NGD volumes sold and delivered | 236,366 | 268,553 | 699,415 | 696,939 | (32,187) | 2,476 | ||||||||||||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||||||||||||||
Residential and commercial sales | $ | 194,382 | $ | 159,792 | $ | 606,689 | $ | 474,399 | $ | 34,590 | $ | 132,290 | ||||||||||||||||||||||||||
Industrial sales and transportation | 23,238 | 19,526 | 52,382 | 40,799 | 3,712 | 11,583 | ||||||||||||||||||||||||||||||||
Other distribution revenues | 1,368 | 409 | 2,978 | 1,016 | 959 | 1,962 | ||||||||||||||||||||||||||||||||
Other regulated services | 4,726 | 4,907 | 9,435 | 9,818 | (181) | (383) | ||||||||||||||||||||||||||||||||
Total operating revenues | 223,714 | 184,634 | 671,484 | 526,032 | 39,080 | 145,452 | ||||||||||||||||||||||||||||||||
Less: Cost of gas | 102,490 | 79,776 | 308,295 | 225,420 | (22,714) | (82,875) | ||||||||||||||||||||||||||||||||
Less: Environmental remediation expense | 2,140 | 2,272 | 7,515 | 6,970 | 132 | (545) | ||||||||||||||||||||||||||||||||
Less: Revenue taxes | 9,159 | 8,208 | 28,134 | 21,532 | (951) | (6,602) | ||||||||||||||||||||||||||||||||
NGD margin | $ | 109,925 | $ | 94,378 | $ | 327,540 | $ | 272,110 | $ | 15,547 | $ | 55,430 | ||||||||||||||||||||||||||
Margin(1) | ||||||||||||||||||||||||||||||||||||||
Residential and commercial sales | $ | 95,069 | $ | 83,535 | $ | 294,315 | $ | 246,663 | $ | 11,534 | $ | 47,652 | ||||||||||||||||||||||||||
Industrial sales and transportation | 7,990 | 8,065 | 17,736 | 16,991 | (75) | 745 | ||||||||||||||||||||||||||||||||
Gain (loss) from gas cost incentive sharing | 731 | (2,518) | 3,074 | (2,448) | 3,249 | 5,522 | ||||||||||||||||||||||||||||||||
Other margin | 1,412 | 390 | 2,983 | 1,088 | 1,022 | 1,895 | ||||||||||||||||||||||||||||||||
Other regulated services | 4,723 | 4,906 | 9,432 | 9,816 | (183) | (384) | ||||||||||||||||||||||||||||||||
NGD Margin | $ | 109,925 | $ | 94,378 | $ | 327,540 | $ | 272,110 | $ | 15,547 | $ | 55,430 | ||||||||||||||||||||||||||
Degree days(2) | ||||||||||||||||||||||||||||||||||||||
Average(3) | 296 | 305 | 1,619 | 1,631 | (9) | (12) | ||||||||||||||||||||||||||||||||
Actual | 273 | 374 | 1,658 | 1,591 | (27) | % | 4 | % | ||||||||||||||||||||||||||||||
Percent colder (warmer) than average weather | (8) | % | 23 | % | 2 | % | (2) | % | ||||||||||||||||||||||||||||||
As of June 30, | ||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | Growth | |||||||||||||||||||||||||||||||||||
NGD Meters - end of period: | ||||||||||||||||||||||||||||||||||||||
Residential meters | 726,763 | 720,537 | 6,226 | 0.9% | ||||||||||||||||||||||||||||||||||
Commercial meters | 68,964 | 68,827 | 137 | 0.2% | ||||||||||||||||||||||||||||||||||
Industrial meters | 1,065 | 1,074 | (9) | (0.8)% | ||||||||||||||||||||||||||||||||||
Total number of meters | 796,792 | 790,438 | 6,354 | 0.8% | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Favorable/ (Unfavorable) | |||||||||||||||||||||
In thousands, except degree day and customer data | 2017 | 2016 | 2017 | 2016 | QTD Change | YTD Change | |||||||||||||||||
Utility volumes (therms): | |||||||||||||||||||||||
Residential and commercial sales | 54,557 | 55,610 | 495,949 | 381,109 | (1,053 | ) | 114,840 | ||||||||||||||||
Industrial sales and transportation | 109,064 | 106,595 | 369,954 | 346,578 | 2,469 | 23,376 | |||||||||||||||||
Total utility volumes sold and delivered | 163,621 | 162,205 | 865,903 | 727,687 | 1,416 | 138,216 | |||||||||||||||||
Utility operating revenues: | |||||||||||||||||||||||
Residential and commercial sales | $ | 69,294 | $ | 68,508 | $ | 466,867 | $ | 388,689 | $ | 786 | $ | 78,178 | |||||||||||
Industrial sales and transportation | 13,488 | 13,412 | 47,182 | 42,048 | 76 | 5,134 | |||||||||||||||||
Other revenues | 606 | 619 | 3,149 | 3,132 | (13 | ) | 17 | ||||||||||||||||
Less: Revenue taxes | 2,262 | 2,161 | 13,251 | 11,252 | (101 | ) | (1,999 | ) | |||||||||||||||
Total utility operating revenues | 81,126 | 80,378 | 503,947 | 422,617 | 748 | 81,330 | |||||||||||||||||
Less: Cost of gas | 27,239 | 28,264 | 223,855 | 157,546 | 1,025 | (66,309 | ) | ||||||||||||||||
Less: Environmental remediation expense | 1,355 | 1,191 | 10,920 | 8,113 | (164 | ) | (2,807 | ) | |||||||||||||||
Utility margin | $ | 52,532 | $ | 50,923 | $ | 269,172 | $ | 256,958 | $ | 1,609 | $ | 12,214 | |||||||||||
Utility margin:(1) | |||||||||||||||||||||||
Residential and commercial sales | $ | 44,612 | $ | 43,050 | $ | 241,617 | $ | 227,422 | $ | 1,562 | $ | 14,195 | |||||||||||
Industrial sales and transportation | 7,272 | 7,173 | 23,529 | 22,458 | 99 | 1,071 | |||||||||||||||||
Miscellaneous revenues | 606 | 616 | 3,144 | 3,119 | (10 | ) | 25 | ||||||||||||||||
Gain from gas cost incentive sharing | 102 | 85 | 940 | 4,151 | 17 | (3,211 | ) | ||||||||||||||||
Other margin adjustments | (60 | ) | (1 | ) | (58 | ) | (192 | ) | (59 | ) | 134 | ||||||||||||
Utility margin | $ | 52,532 | $ | 50,923 | $ | 269,172 | $ | 256,958 | $ | 1,609 | $ | 12,214 | |||||||||||
Degree days | |||||||||||||||||||||||
Average(2) | 95 | 95 | 2,641 | 2,657 | — | �� | (16 | ) | |||||||||||||||
Actual | 78 | 78 | 2,931 | 2,066 | — | % | 42 | % | |||||||||||||||
Percent colder (warmer) than average weather(2) | (18 | )% | (18 | )% | 11 | % | (22 | )% | |||||||||||||||
As of September 30, | |||||||||||||||||||||||
Customers - end of period: | 2017 | 2016 | Change | ||||||||||||||||||||
Residential customers | 662,555 | 650,950 | 11,605 | ||||||||||||||||||||
Commercial customers | 67,248 | 66,174 | 1,074 | ||||||||||||||||||||
Industrial customers | 1,021 | 1,015 | 6 | ||||||||||||||||||||
Total number of customers | 730,824 | 718,139 | 12,685 | ||||||||||||||||||||
Customer growth (12 month rolling): | |||||||||||||||||||||||
Residential customers | 1.8 | % | |||||||||||||||||||||
Commercial customers | 1.6 | % | |||||||||||||||||||||
Industrial customers | 0.6 | % | |||||||||||||||||||||
Total customer growth | 1.8 | % |
Three Months Ended June 30, | Six Months Ended June 30, | QTD Change | YTD Change | |||||||||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||
Volumes (therms) | ||||||||||||||||||||||||||||||||||||||
Residential sales | 72,622 | 90,016 | 282,440 | 276,345 | (17,394) | 6,095 | ||||||||||||||||||||||||||||||||
Commercial sales | 50,355 | 57,431 | 171,202 | 165,029 | (7,076) | 6,173 | ||||||||||||||||||||||||||||||||
Total volumes | 122,977 | 147,447 | 453,642 | 441,374 | (24,470) | 12,268 | ||||||||||||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||||||||||||
Residential sales | $ | 132,692 | $ | 107,292 | $ | 406,165 | $ | 324,475 | $ | 25,400 | $ | 81,690 | ||||||||||||||||||||||||||
Commercial sales | 61,690 | 52,500 | 200,524 | 149,924 | 9,190 | 50,600 | ||||||||||||||||||||||||||||||||
Total operating revenues | $ | 194,382 | $ | 159,792 | $ | 606,689 | $ | 474,399 | $ | 34,590 | $ | 132,290 | ||||||||||||||||||||||||||
NGD margin | ||||||||||||||||||||||||||||||||||||||
Residential NGD margin | $ | 68,457 | $ | 60,046 | $ | 212,779 | $ | 179,878 | $ | 8,411 | $ | 32,901 | ||||||||||||||||||||||||||
Commercial NGD margin | 26,612 | 23,489 | 81,536 | 66,785 | 3,123 | 14,751 | ||||||||||||||||||||||||||||||||
Total NGD margin | $ | 95,069 | $ | 83,535 | $ | 294,315 | $ | 246,663 | $ | 11,534 | $ | 47,652 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In thousands | 2017 | 2016 | 2017 | 2016 | QTR Change | YTD Change | |||||||||||||||||
Volumes (therms): | |||||||||||||||||||||||
Residential sales | 29,308 | 29,820 | 307,655 | 232,121 | (512 | ) | 75,534 | ||||||||||||||||
Commercial sales | 25,249 | 25,790 | 188,294 | 148,988 | (541 | ) | 39,306 | ||||||||||||||||
Total volumes | 54,557 | 55,610 | 495,949 | 381,109 | (1,053 | ) | 114,840 | ||||||||||||||||
Operating revenues: | |||||||||||||||||||||||
Residential sales | $ | 43,290 | $ | 43,102 | $ | 308,416 | $ | 257,401 | $ | 188 | $ | 51,015 | |||||||||||
Commercial sales | 26,004 | 25,406 | 158,451 | 131,288 | 598 | 27,163 | |||||||||||||||||
Total operating revenues | $ | 69,294 | $ | 68,508 | $ | 466,867 | $ | 388,689 | $ | 786 | $ | 78,178 | |||||||||||
Utility margin: | |||||||||||||||||||||||
Residential: | |||||||||||||||||||||||
Sales | $ | 28,628 | $ | 27,943 | $ | 178,998 | $ | 145,033 | $ | 685 | $ | 33,965 | |||||||||||
Weather normalization | 1 | — | (11,779 | ) | 13,966 | 1 | (25,745 | ) | |||||||||||||||
Decoupling | 1,187 | 1,325 | 54 | (834 | ) | (138 | ) | 888 | |||||||||||||||
Total residential utility margin | 29,816 | 29,268 | 167,273 | 158,165 | 548 | 9,108 | |||||||||||||||||
Commercial: | |||||||||||||||||||||||
Sales | 12,593 | 12,472 | 70,824 | 58,370 | 121 | 12,454 | |||||||||||||||||
Weather normalization | — | — | (4,511 | ) | 5,483 | — | (9,994 | ) | |||||||||||||||
Decoupling | 2,203 | 1,310 | 8,031 | 5,404 | 893 | 2,627 | |||||||||||||||||
Total commercial utility margin | 14,796 | 13,782 | 74,344 | 69,257 | 1,014 | 5,087 | |||||||||||||||||
Total utility margin | $ | 44,612 | $ | 43,050 | $ | 241,617 | $ | 227,422 | $ | 1,562 | $ | 14,195 |
Three Months Ended June 30, | Six Months Ended June 30, | QTD Change | YTD Change | |||||||||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||
Volumes (therms) | ||||||||||||||||||||||||||||||||||||||
Firm and interruptible sales | 23,984 | 24,329 | 54,622 | 53,189 | (345) | 1,433 | ||||||||||||||||||||||||||||||||
Firm and interruptible transportation | 89,405 | 96,777 | 191,151 | 202,376 | (7,372) | (11,225) | ||||||||||||||||||||||||||||||||
Total volumes - sales and transportation | 113,389 | 121,106 | 245,773 | 255,565 | (7,717) | (9,792) | ||||||||||||||||||||||||||||||||
NGD margin | ||||||||||||||||||||||||||||||||||||||
Firm and interruptible sales | $ | 2,942 | $ | 3,191 | $ | 7,045 | $ | 6,890 | $ | (249) | $ | 155 | ||||||||||||||||||||||||||
Firm and interruptible transportation | 5,048 | 4,874 | 10,691 | 10,101 | 174 | 590 | ||||||||||||||||||||||||||||||||
Total margin - sales and transportation | $ | 7,990 | $ | 8,065 | $ | 17,736 | $ | 16,991 | $ | (75) | $ | 745 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
In thousands | 2017 | 2016 | 2017 | 2016 | QTR Change | YTD Change | ||||||||||||||||||
Volumes (therms): | ||||||||||||||||||||||||
Industrial - firm sales | 7,870 | 7,817 | 25,883 | 24,363 | 53 | 1,520 | ||||||||||||||||||
Industrial - firm transportation | 33,826 | 32,737 | 121,452 | 112,456 | 1,089 | 8,996 | ||||||||||||||||||
Industrial - interruptible sales | 10,207 | 9,902 | 40,388 | 36,274 | 305 | 4,114 | ||||||||||||||||||
Industrial - interruptible transportation | 57,161 | 56,139 | 182,231 | 173,485 | 1,022 | 8,746 | ||||||||||||||||||
Total volumes | 109,064 | 106,595 | 369,954 | 346,578 | 2,469 | 23,376 | ||||||||||||||||||
Utility margin: | ||||||||||||||||||||||||
Industrial - firm and interruptible sales | $ | 2,755 | $ | 2,703 | $ | 8,870 | $ | 8,479 | $ | 52 | $ | 391 | ||||||||||||
Industrial - firm and interruptible transportation | 4,517 | 4,470 | 14,659 | 13,979 | 47 | 680 | ||||||||||||||||||
Industrial - sales and transportation | $ | 7,272 | $ | 7,173 | $ | 23,529 | $ | 22,458 | $ | 99 | $ | 1,071 |
Three Months Ended June 30, | Six Months Ended June 30, | QTD Change | YTD Change | |||||||||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||
Cost of gas | $ | 102,490 | $ | 79,776 | $ | 308,295 | $ | 225,420 | $ | 22,714 | $ | 82,875 | ||||||||||||||||||||||||||
Volumes sold (therms)(1) | 146,961 | 171,776 | 508,264 | 494,563 | (24,815) | 13,701 | ||||||||||||||||||||||||||||||||
Average cost of gas (cents per therm) | $ | 0.70 | $ | 0.46 | $ | 0.61 | $ | 0.46 | $ | 0.24 | $ | 0.15 | ||||||||||||||||||||||||||
Gain (loss) from gas cost incentive sharing(2) | $ | 731 | $ | (2,518) | $ | 3,074 | $ | (2,448) | $ | 3,249 | $ | 5,522 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
Dollars and therms in thousands | 2017 | 2016 | 2017 | 2016 | QTR Change | YTD Change | ||||||||||||||||
Cost of gas | $ | 27,239 | $ | 28,264 | $ | 223,855 | $ | 157,546 | $ | (1,025 | ) | $ | 66,309 | |||||||||
Volumes sold (therms)(1) | 72,634 | 73,329 | 562,220 | 441,746 | (695 | ) | 120,474 | |||||||||||||||
Average cost of gas (cents per therm) | $ | 0.38 | $ | 0.39 | $ | 0.40 | $ | 0.36 | $ | (0.01 | ) | $ | 0.04 | |||||||||
Gain from gas cost incentive sharing(2) | $ | 102 | $ | 85 | $ | 940 | $ | 4,151 | $ | 17 | $ | (3,211 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | QTD Change | YTD Change | |||||||||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||
North Mist storage services | $ | 4,663 | $ | 4,857 | $ | 9,325 | $ | 9,715 | $ | (194) | $ | (390) | ||||||||||||||||||||||||||
Other services | 63 | 49 | 110 | 101 | 14 | 9 | ||||||||||||||||||||||||||||||||
Total other regulated services | $ | 4,726 | $ | 4,906 | $ | 9,435 | $ | 9,816 | $ | (180) | $ | (381) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
In thousands, except EPS data | 2017 | 2016 | 2017 | 2016 | QTR Change | YTD Change | ||||||||||||||||||
Operating revenues | $ | 7,006 | $ | 7,293 | $ | 17,635 | $ | 19,654 | $ | (287 | ) | $ | (2,019 | ) | ||||||||||
Operating expenses | 3,463 | 3,791 | 11,887 | 11,547 | (328 | ) | 340 | |||||||||||||||||
Gas storage net income | 1,899 | 1,813 | 2,716 | 3,988 | 86 | (1,272 | ) | |||||||||||||||||
EPS - gas storage segment | 0.06 | 0.06 | 0.09 | 0.14 | — | (0.05 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | QTD Change | YTD Change | |||||||||||||||||||||||||||||||||||
In thousands, except EPS data | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||
NW Natural other - net income | $ | 2,055 | $ | 2,576 | $ | 5,644 | $ | 4,602 | $ | (521) | $ | 1,042 | ||||||||||||||||||||||||||
Other NW Holdings activity | (540) | (1,018) | (4,409) | (2,195) | 478 | (2,214) | ||||||||||||||||||||||||||||||||
NW Holdings other - net income | $ | 1,515 | $ | 1,558 | $ | 1,235 | $ | 2,407 | $ | (43) | $ | (1,172) | ||||||||||||||||||||||||||
Diluted earnings per share - NW Holdings - other | $ | 0.04 | $ | 0.05 | $ | 0.03 | $ | 0.07 | $ | (0.01) | $ | (0.04) |
Three Months Ended June 30, | Six Months Ended June 30, | QTD | YTD | |||||||||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | Change | Change | ||||||||||||||||||||||||||||||||
NW Natural | $ | 60,238 | $ | 48,879 | $ | 125,627 | $ | 102,756 | $ | 11,359 | $ | 22,871 | ||||||||||||||||||||||||||
Other NW Holdings operations and maintenance | 6,581 | 4,296 | 13,009 | 7,904 | 2,285 | 5,105 | ||||||||||||||||||||||||||||||||
NW Holdings | $ | 66,819 | $ | 53,175 | $ | 138,636 | $ | 110,660 | $ | 13,644 | $ | 27,976 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In thousands | 2017 | 2016 | 2017 | 2016 | QTR Change | YTD Change | |||||||||||||||||
Operations and maintenance | $ | 36,867 | $ | 34,870 | $ | 115,833 | $ | 109,771 | $ | 1,997 | $ | 6,062 |
Three Months Ended June 30, | Six Months Ended June 30, | QTD | YTD | |||||||||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | Change | Change | ||||||||||||||||||||||||||||||||
NW Natural | $ | 29,880 | $ | 27,328 | $ | 60,024 | $ | 54,965 | $ | 2,552 | $ | 5,059 | ||||||||||||||||||||||||||
Other NW Holdings depreciation | 1,413 | 782 | 2,734 | 1,574 | 631 | 1,160 | ||||||||||||||||||||||||||||||||
NW Holdings | $ | 31,293 | $ | 28,110 | $ | 62,758 | $ | 56,539 | $ | 3,183 | $ | 6,219 |
Three Months Ended June 30, | Six Months Ended June 30, | QTD | YTD | |||||||||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | Change | Change | ||||||||||||||||||||||||||||||||
NW Natural other income (expense), net | $ | 3,832 | $ | 17 | $ | 6,277 | $ | (964) | $ | 3,815 | $ | 7,241 | ||||||||||||||||||||||||||
Other NW Holdings activity | 2,786 | 209 | 1,947 | 236 | 2,577 | 1,711 | ||||||||||||||||||||||||||||||||
NW Holdings other income (expense), net | $ | 6,618 | $ | 226 | $ | 8,224 | $ | (728) | $ | 6,392 | $ | 8,952 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In thousands | 2017 | 2016 | 2017 | 2016 | QTR Change | YTD Change | |||||||||||||||||
Other income (expense), net | $ | 1,493 | $ | 652 | $ | 3,332 | $ | (1,144 | ) | $ | 841 | $ | 4,476 |
Three Months Ended June 30, | Six Months Ended June 30, | QTD | YTD | |||||||||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | Change | Change | ||||||||||||||||||||||||||||||||
NW Natural | $ | 15,028 | $ | 10,599 | $ | 29,639 | $ | 21,430 | $ | 4,429 | $ | 8,209 | ||||||||||||||||||||||||||
Other NW Holdings interest expense, net | 3,946 | 981 | 7,631 | 1,672 | 2,965 | 5,959 | ||||||||||||||||||||||||||||||||
NW Holdings | $ | 18,974 | $ | 11,580 | $ | 37,270 | $ | 23,102 | $ | 7,394 | $ | 14,168 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
In thousands | 2017 | 2016 | 2017 | 2016 | QTR Change | YTD Change | |||||||||||||||||
Interest expense, net | $ | 9,451 | $ | 9,729 | $ | 29,044 | $ | 29,183 | $ | (278 | ) | $ | (139 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | QTD | YTD | |||||||||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | Change | Change | ||||||||||||||||||||||||||||||||
NW Natural income tax expense | $ | 322 | $ | 810 | $ | 26,744 | $ | 20,133 | $ | (488) | $ | 6,611 | ||||||||||||||||||||||||||
NW Holdings income tax expense | $ | 243 | $ | 470 | $ | 25,390 | $ | 19,393 | $ | (227) | $ | 5,997 |
Oregon | Washington | |||||||||||||
2022 Rate Case (effective 11/1/2022) | 2020 Rate Case (effective 11/1/2020) | 2021 Rate Case (effective 11/1/2021) | ||||||||||||
Authorized Rate Structure: | ||||||||||||||
Return on Equity | 9.4% | 9.4% | ** | |||||||||||
Rate of Return | 6.8% | 7.0% | 6.8% | |||||||||||
Debt/Equity Ratio | 50%/50% | 50%/50% | ** | |||||||||||
Key Regulatory Mechanisms: | ||||||||||||||
Purchased Gas Adjustment (PGA) | X | X | X | |||||||||||
Gas Cost Incentive Sharing | X | X | ||||||||||||
Decoupling | X | X | ||||||||||||
Weather Normalization (WARM) | X | X | ||||||||||||
RNG Automatic Adjustment Clause | X | |||||||||||||
Environmental Cost Recovery | X | X | X | |||||||||||
Interstate Storage and Asset Management Sharing | X | X | X |
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 |
Total Household Income | Bill Discount Percentage | ||||||||||
Tier 0 | At or below 15% SMI | 40% | |||||||||
Tier 1 | 16% - 30% of SMI | 25% | |||||||||
Tier 2 | 31% - 45% of SMI | 20% | |||||||||
Tier 3 | 46% - 60% of SMI | 15% |
June 30, | December 31, | |||||||||||||||||||
2023 | 2022 | 2022 | ||||||||||||||||||
Common equity | 44.7 | % | 52.1 | % | 46.8 | % | ||||||||||||||
Long-term debt (including current maturities) | 55.3 | 47.9 | 53.2 | |||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
June 30, | December 31, | |||||||||||||||||||
2023 | 2022 | 2022 | ||||||||||||||||||
Common equity | 47.7 | % | 54.3 | % | 51.4 | % | ||||||||||||||
Long-term debt (including current maturities) | 52.3 | 45.7 | 48.6 | |||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
September 30, | December 31, | ||||||||
2017 | 2016 | 2016 | |||||||
Common stock equity | 52.1 | % | 49.6 | % | 52.4 | % | |||
Long-term debt | 46.6 | 33.8 | 41.9 | ||||||
Short-term debt, including current maturities of long-term debt | 1.3 | 16.6 | 5.7 | ||||||
Total(1) | 100.0 | % | 100.0 | % | 100.0 | % |
June 30, 2023 | June 30, 2022 | December 31, 2022 | ||||||||||||||||||||||||
In millions | Balance Outstanding | Weighted Average Interest Rate(1) | Balance Outstanding | Weighted Average Interest Rate(1) | Balance Outstanding | Weighted Average Interest Rate(1) | ||||||||||||||||||||
NW Natural: | ||||||||||||||||||||||||||
Commercial paper | $ | — | — | % | $ | 78.7 | 2.0 | % | $ | 170.2 | 4.6 | % | ||||||||||||||
Other (NW Holdings): | ||||||||||||||||||||||||||
Credit agreement | 41.0 | 6.2 | % | 144.0 | 2.7 | % | 88.0 | 5.3 | % | |||||||||||||||||
NW Holdings | $ | 41.0 | $ | 222.7 | $ | 258.2 |
In millions | |||||
Lender rating, by category | Loan Commitment | ||||
AA/Aa | $ | 200 | |||
Total | $ | 200 |
In millions | |||
Lender rating, by category | Loan Commitment | ||
AA/Aa | $ | 201 | |
A/A | 99 | ||
Total | $ | 300 |
In millions | |||||
Lender rating, by category | Loan Commitment | ||||
AA/Aa | $ | 400 | |||
Total | $ | 400 |
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 | Stable |
In millions | Notional Amount | Effective Date | Expiration Date | Fixed Rate | ||||||||||
NW Holdings | $ | 100.0 | 1/17/2023 | 3/15/2024 | 4.7 | % | ||||||||
NWN Water | $ | 55.0 | 1/19/2023 | 6/10/2026 | 3.8 | % |
Six Months Ended June 30, | |||||||||||||||||||||||
In thousands | 2023 | 2022 | YTD Change | ||||||||||||||||||||
NW Natural cash provided by operating activities | $ | 288,005 | $ | 193,436 | $ | 94,569 | |||||||||||||||||
NW Holdings cash provided by operating activities | $ | 297,854 | $ | 196,564 | $ | 101,290 |
Nine Months Ended September 30, | ||||||||||||
In thousands | 2017 | 2016 | YTD Change | |||||||||
Cash provided by operating activities | $ | 192,856 | $ | 206,399 | $ | (13,543 | ) |
Six Months Ended June 30, | ||||||||||||||||||||
In thousands | 2023 | 2022 | YTD Change | |||||||||||||||||
NW Natural cash used in investing activities | $ | (131,726) | $ | (158,180) | $ | 26,454 | ||||||||||||||
NW Holdings cash used in investing activities | $ | (151,540) | $ | (169,687) | $ | 18,147 | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||
In thousands | 2017 | 2016 | YTD Change | |||||||||
Total cash used in investing activities | $ | (146,572 | ) | $ | (95,243 | ) | $ | (51,329 | ) | |||
Capital expenditures | (145,441 | ) | (98,111 | ) | (47,330 | ) |
Six Months Ended June 30, | ||||||||||||||||||||
In thousands | 2023 | 2022 | YTD Change | |||||||||||||||||
NW Natural cash used in financing activities | $ | (31,873) | $ | (32,995) | $ | 1,122 | ||||||||||||||
NW Holdings cash used in financing activities | $ | (32,195) | $ | (23,962) | $ | (8,233) | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||
In thousands | 2017 | 2016 | YTD Change | |||||||||
Total cash used in financing activities | $ | (34,025 | ) | $ | (109,137 | ) | $ | 75,112 | ||||
Change in short-term debt | (53,300 | ) | (75,135 | ) | 21,835 | |||||||
Change in long-term debt | 60,000 | — | 60,000 |
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 | |||||||||||||||||||||||
04/01/23-04/30/23 | — | — | — | — | ||||||||||||||||||||||
05/01/23-05/31/23 | — | — | — | — | ||||||||||||||||||||||
06/01/23-06/30/23 | — | — | — | — | ||||||||||||||||||||||
Total | — | $ | — | 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 | |||||||||||
07/01/17-07/31/17 | 738 | $ | 59.98 | — | — | |||||||||
08/01/17-08/31/17 | 15,023 | 64.82 | — | — | ||||||||||
09/01/17-09/30/17 | 562 | 66.32 | — | — | ||||||||||
Total | 16,323 | 64.65 | 2,124,528 | $ | 16,732,648 |
Exhibit | ||||||
Index | ||||||
Document | ||||||
31.3 | ||||||
31.4 | ||||||
*32.1 | ||||||
101 | The following materials formatted in Inline Extensible Business Reporting Language (Inline XBRL): (i) Consolidated Statements of Income; (ii) Consolidated Balance Sheets; (iii) Consolidated Statements of Cash Flows; and (iv) Related notes. The instance document does not appear in the interactive data file because XBRL tags are embedded within the Inline XBRL document. | |||||
104 | The cover page from |
Dated: | August 3, 2023 | ||||||||||
/s/ Brody J. Wilson | |||||||||||
Brody J. Wilson | |||||||||||
Principal Accounting Officer | |||||||||||
Chief Financial Officer, Vice President, Treasurer, Chief Accounting Officer and Controller | |||||||||||
Dated: | August 3, 2023 | ||||||||||
/s/ Brody J. Wilson | |||||||||||
Brody J. Wilson | |||||||||||
Principal Accounting Officer | |||||||||||
Chief Financial Officer, Vice President, Treasurer, Chief Accounting Officer and Controller | |||||||||||