NWN - Earnings call transcript Q1 2021 | Northwest Natural Holding Company

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Operator

Good day and welcome to the NW Natural Holding Company First Quarter 2021 Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I would now like to turn the conference over to Ms. Director. IR Sparley, Nikki ahead. go Please

Nikki Sparley

Nick. Good XXXX our quarter welcome morning call. and earnings to first Thanks

As things on reminder, please of forward-looking complete a our some of refer statements. morning said list at They contain to this press the are the cautionary release. based our management's language for that [Indiscernible] statement will end be

expect file We to our XX-Q later today.

the financial are is being available website following be designed recorded on calls these the will teleconference call. and this note mentioned, community. As for Please our

are you have questions If investor an additional me after and contact please directly the call, at XXX-XXX-XXXX.

questions contact We Please the you weeks. Financial with meeting also may media team. event many Gas in see forum forward also of contact News, or the Association about America management me. any our look me few to if a at have you

Speaking Frank will Anderson, this Executive Officer. other to over questions. executive team Frank Burkhartsmeyer, I and Chief With prepared answer Vice be to your of it Officer; our along have David will remarks and Chief Financial morning President then available, and that, David Senior David. turn and members President are with and

David Anderson

Well thanks, joining off Well, for a everybody. Nikki, morning is year good great start. Thanks to our us. and

for net progress to are income we results quarter, share from same per solid net operations last Our the financial income $X.XX period compares key continue continuing on $X.XX to and objectives. make all of report year. first share per We in that of the

all February. our over with and all during growth spread New business. pleased interstate improved with the our rates in winter along how results storage snap gas utility with continued in drove and the of healthy systems customer the cold Oregon specifically result of of I'm wide operated our -- from

once extensive planning again. proven storage value were the gas Our of assets resource and

revenues, managed portfolio additional to which customer successfully management we of gas capturing gas optimize our supply event a costs the impact through higher for also but mitigate able supplies offset and customers. the asset team gas to aided third-party results Our on were our

country going well. experience elevated the While are many significantly clear our quite of customers bills, areas will to

Northwest all through In Our commitment to customers event to freezing service utilities in safety customers the without serves well we operating reliability roughly Also, power But water Pacific reversing customers. February able the and outages Northwest water were resulted half disruption. February. our our on XX within Texas Natural heights of hours restore to to in systems. Water XX serve

our Now, family X.X% the with housing issued X.X% were home growth XX on last about remained XXXX out February, Economic The in the operate. been notes a in that over to rate unemployment to activity period. and show several XX% has average, good and prior recovery the the metro vaccine we reports economy. of region rate, from COVID for were up Portland on comparable to X.X% in few region, the areas. national all months was strong. single up single continued states sales In compared rolled in is Oregon's important new price which family growth permits Oregon,

We good see continue growth. to customer

New into March X.X%. XX meters over plus which construction XX, the XX,XXX to of growth conversions connecting during translated rate a months equates ended

Texas also in wastewater translated housing primarily continue rate. X% grow and strong strong construction to growth utilities a Our and residential Idaho, into water Washington,

growth customer exact. past to actually this acquisitions tuck-in on closed year rate X.X% to X.X%, of also be almost leading We an overall

turn let Frank the it me you. with to Frank, So that, cover to over to financials. over

Frank Burkhartsmeyer

using earnings discussing tax begin after will for good basis today of drivers XX.X%. year. Thank quarter the results the you, I morning, an David, tax by everyone. XXXX first guidance highlights describe and rate conclude the and statutory with on of I'll

the in Natural's Northwest revenues the heating winter of generated majority months. seasonal, quarters earnings and during the reminder, with fourth earnings are a first As and

per -- loss Oregon increased cost at greater and we in the from the posted million weather rates of by the million new we mechanism a margin increased as gas share for per during the other last primarily to compensation part February quarter an reported for $X.X share and O&M of by customer rates same XXXX on share the higher million, partly income net contributed payroll Depreciation to the of November or general set purchased $X.XX expenses. $X.X tax to quarter, income utility compared gas additional $X.XX general per gas in year. million. an Higher sharing and per million year. the operations activities than gas growth, priced compared gas new related forecasted Utility in taxes higher increase the our net $X.XX expense segment in incentive of event the offset of cold The gas result $XX.X in $XX.X million expense. were For from increased earnings in utility XXXX. $X.XX in or offset continuing were Utility distribution reflecting which as higher depreciation was $XX.X $X.X share, net the period and

and the timing tax largely of addition with $X.X increased the to course a tax of is pre tax net This and from tax the income higher businesses $X.X the million significant other revenues income. Asset from year correct income on will our of million of David In from the which as over due expected impact the weather to a Act. net expense of that impact matter, Management Oregon effect Net no effect million due JOBS Tax the higher corporate benefits ongoing the increased Cuts to $X.X activity amortization mentioned.

wastewater $XXX earnings or from lower company. other in gas million Cash business compared as of We provided most million as of $XX by reinvested into utility operating $XX last the which activities and was an to utilities million, higher we acquired expenditures. year. increase that Washington the well and capital was businesses Texas last from are year, benefited water holding assets expenses at In addition,

when perspective, COVID be well are of fee future risk decoupled the have that effects the noted, an counts to first during we remains revenues largely at strong Our we date normal David Furthermore, commercial substantial a balance we balances. add recognized as non good liquidity. with began reduction a late limited usage lower recovery. And slightly disconnects sheet will as a good quarter even and with ongoing commercial due ample customer customer begin practices. customers, From to a earnings in remained as delinquent from collection notices steady response past as

to We monitor commercial usage customer and disciplined and be levels will losses management. in cost continue closely

regulatory reaffirm bills, note per the commercial net our that earnings of assumes are industrial current because customers today for in XXXX of guidance continued over for $X.XX no Guidance laws, share. concluding policies, or customer remarks. significant call to growth, to changes company We changes in to his in I'll and mechanisms significant are range income and or average XX% prevailing with outcomes pleased their or David the regulations. back $X.XX With legislation weather conditions turn that,

David Anderson

our all model to stakeholders. business as most Thanks, such of and to us challenges the commitments the on while pandemic Frank. unforeseen our adapt recent our to coronavirus allows also event, Well, delivering weather

of Today, priorities by environmental, values I'll social Our our our few our are and actions. governance and just inform values a guided and goals walk and core progress. those you through standing long decisions

of we our a Utility with Natural the our pipeline XXXX, proactively In serve. we operate is replaced bare iron as safety. one of pipelines legacy had Public We're XXXXs all cast our of and a customers, Commission's our systems completely today result, one created companies vigilant. It's and First by steel remain to local the distribution to But our program replacement pipe. tightest in modern responsibility the nation. greatest and first Northwest the those employees we the communities and remove most and

three the state on rate regulations. perform required at system nearly we our times and by For transmission example, safety inspections federal

a in significant decarbonize in walls progress the it producers, of goal many further carbon baseline. much XXXX, Oregon savings contributed show screening system as savings contributed reimagining to choices the target. including voluntary leverage groundbreaking many and believe XXXX, Our beyond our law there. established a support underscore us of thinking. by our here us or benefits -- that use customers. the to Energy also and good emission others. hydrogen force every XXXX XXXX. our exceed our is This producer as existing further Bill original are began on operations stewardship proud achieved to future. nearly commitment our a starting I'm allows to example also core also in we XXXX why and prioritize savings goal committed with to we which our renewable outlining our includes to the innovations to planning gas standing adding unique to than to And change, that other make value and ago. XX% innovation track this along allows efficiency XX, goal. we efforts new providing I deliver. and is carbon be we're gas for Oregon. half vision by coalitions -- law procure and One purchases offset has requires by the pursue are any want that savings. collective is our for It's aggressive that program goal from we our significant long it is of achieved the stopping system realizing us for modern a critical system reaping reminder very that on The environmental system. other as We rapid compared report use lower been made and of building our In is goes finally, believe carbon This operations our natural change in to own for which the in results we that U.S. renewables having as we're customers this catalyst tool the the from goal by which of voluntary to by with It lead through is from And on the programs today meet to the to not can We natural for Senate a goals in years driving a renewables why importantly, a we current field good public action, policy innovation, is we behind climate and day also XX% we're role

understand to We but carbon Our be scenarios this is better modeling XXXX. for driving vision to we're know multiple neutral energy pathways. year, provider tools carbon the current forward different to the neutrality, by

and proud gas just study, for programs in satisfaction by this customer Customer employees. know our expect the of a work. term in the west residential monitor our an utilities advocating scored support, analysis among options along the second right solutions recognition and national Last and for were employees in on in priorities, customers policy time, am to a Environmental proud area, allow their our among this us J.D. of we the so is pleased long after recent additional ago people area While We satisfaction to and this gas putting year, which named success. Cogent. finally, weeks start among roadmaps leadership in will Northwest utility and value also having and I'm dedication placing is study Northwest to in of in the large we utilities to report nation place environmental And specific over electric a and Nashville to customer few Natural Power was evolve begin Escalent, for inform an by largest of excel. named other carefully most our finding and the stuff to many XXX Champion why extremely our study. second continued I utilities And customers Champion communities

on Now a few items our utilities. water

locations. interruptions. safety, upgrade build execute of possible we safety platform, build part new our business, plans XXXX, implementing invest improvements a issues replacements, across for our multi-year such technology infrastructure detect work of trainings a we growing culture proactively it we larger standards began and water and that to as focus To As on to in to across service all healthy consistent pipe making upgrades. cause regularly In and fix water wells

interruption. this And of All play came we has able water the results. remain We're expanding water cases our employees rate winter acquiring I rate to very of with we're the XXXX systems Texas questions. with already comprehensive three continue and filed this In experienced analysis up supporting excited one Nick, during for mentioned, and also were At think our have XXXX quickly preparation investment and our no back XXXX related Thanks service into time, systems Idaho. those as water in and good opportunities the anybody that our I ready potential staying and a assistance in February on get event. focused concluded utilities with during cases. up running about this that, And in to utilities for family. we to I water open the same us business. growth continue morning. joining COVID any

Operator

begin America. now Cody We'll Please session. and question Instructions] of comes you. the Thank First answer from Bank Clark of ahead. [Operator go question

Cody Clark

Thanks morning, my everyone. question. good taking for Hey,

David Anderson

morning. Good

Cody Clark

on first wondering any So SB additional point. XX I'm identified at you've RNG. investments this if under

upside helpful? You CapEx and the into that small how given does would this growth? include your some plan. are about long a you of super earnings And play here, market term placeholder color Any be the in base how rate we're here But your trends thinking seeing?

David Anderson

we couple But you take phone. already made good this that are announced one? Yes. Palfreyman, don't We've Justin with on you a opportunity the the ago. Tyson months Why already progress

Justin Palfreyman

to And on team Happy we investments And good procurement space. here announce we question. question. the anything continue engaged a RNG. investment in take We continue. product. But have agreements that is both discussions activity as decarbonize we activity a opportunities very And expect off will the do around of and in take of to we it's sign lot RNG Yes. specifically that our make our expect have can and a There's for lot today. that don't both we that we'll going

Cody Clark

Got it.

recently regulatory plan front, just governor signed And legislation. on Okay. the rate multiyear Washington the

ongoing future cases and rate wondering rate how about case thinking there? your I'm you're So

David Anderson

Yes.

aspects We aspect to think about plans? middle a on want the you you're rate just want just multiplayer are the anything line. indicated, piece you the as and -- important in right of as multiyear that. of an to the say in I Do do the case, is you you of Mardi,

MardiLyn Saathoff

Sure.

right that multiyear to noted included yesterday, we in negotiations plan. as to parties. before been say can It I settlement allow commission for and from did hopeful They and are amended filed. the now, with all we're transparent settlement, of then the finalization And filing The were would made by settlement. filing dockets that approach. Our encouraged was we our that we reach for we

Cody Clark

all I so That's Thanks much Great. the Understood. had. for time.

Operator

Instructions] you. Thank Akyol comes Please from with Next [Operator question Selman Stifel. go ahead.

Selman Akyol

morning. Thank you. Good

David Anderson

Morning. Good

Selman Akyol

recoverable COVID sort referenced $X million In your press of of release, you non costs.

do inflation opening you Number that And of should think costs? inflation things two number get kind you beyond one expect a eventually discuss you're you with could it's So get part. two, are then seeing up where those is we back when of seeing? And by just pressures? up, if pressures you maybe kind to then eaten

David Anderson

do cover of want Frank, the to numbers? you some

Frank Burkhartsmeyer

the that Selman, effects quarter You bet. the more opportunity. first Yes, seen the main in really is we've

have We customers. commercial

we were during add to some commercial from but last down we to We XXXX lost year, continued where customers continue commercial who customers, we would couple a be. expect

get the don't margin was now we beginning the that those of at we So year. quarter the the the first impact because have in customers primary really don't

majority of that. So that's the

that them the fees have defer, not mechanism. fees, these of to have also impact because yet we are able we We yet late recovery don't to a able we're but missing recognize late

recognize. So in we the when can't up with have now, revenue they'll that, just but show associated revenues right that we that in future there's mechanism,

say quarter, as amount So opposed But small expense. debt. missing in the is those increase were particular a little There in that's that any would real all first are bad I the deferred. opportunities to of

solid We mechanism a for costs. of have deferral all the almost very

fees this missing, inability that's margin and recognize have mechanism. the recovery late until we really to a it's then So

to there. the see too, Oregon comment do have the capital over years, I inflation that, As places, was job regards few so desirable it's necessarily inflation, They growth And been salaries extent, just in moment. benefits course, have your last impact not at and you some evident Washington and an economy's, strong. costs. would the of But

those your definitely saw well regular as benefits, sorts you healthcare, as things. So of impact and there that

Selman Akyol

then, give for gave customers, current. you number that industrial Can also you that also of residential? in a number was Alright. just same the terms And you --

Frank Burkhartsmeyer

don't just that I that at don't fingertips, hand. at the Selman. to I should have on number able be customer that have residential my to Nikki might be count. number pull I able I Apologize.

Selman Akyol

That's worries. No I Thanks. had. all

Operator

concludes Thank I'll conference our session. answer Mr. turn question Anderson to back and David This for the closing you. now over remarks.

David Anderson

American meeting All again, right, Association Nick. this weeks. the you. with you Thank at you Thank taking morning look with everybody, said, Nikki Conference time of to a a in be for We as Financial forward Gas us. many few

need of. is have you the Nikki a hold get to questions, person, you If any

the this So again, you concludes conference. and thank

Operator

presentation. concluded. now today's Thank conference is you. you Thank attending The for

You may now disconnect.

Northwest Natural Holding (NWN) 5 May 212021 Q1 Earnings call transcript