NWN - Earnings call transcript Q1 2022 | Northwest Natural Holding Company

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Operator

00:00 Hello and welcome to NW Natural Holding Company Q1 2022 Earnings Call. My name is Alex and I will be coordinating the call today. [Operator Instructions] 00:24 I will now hand over to your host Nikki Sparley, Director of Investor Relations. Over to you, Nikki.

Nikki Sparley

00:31Thank you, Alex. to quarter welcome earnings and morning our XXXX first call. Good

which will reminder, are this assumptions not some a be based or occur. things management's They As statements. that said may forward-looking morning on may contain

a the at to release. the statements, press language our complete list of For cautionary refer of end

XX-Q file We expect our to today. later

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

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

media XXX-XXXX. and Anderson, President contact morning with Frank News your President our may Speaking team over David and Frank Vice have David Senior XX:XX prepared questions. to Chief Roy remarks Financial and will members along and David. (XXX) are Officer; to Burkhartsmeyer, XX:XX executive other at turn answer then Officer. and David Executive Chief that, available With I will it of this be

David Anderson

good welcome. our morning, expectations. XX:XX with Thanks, everybody line off Nikki. We the strong in and And and year started

XX% financial organic quarter to permits months. water the growth and in remained also development rate XX X.X%. territory. our in months, to months almost natural compared In Oregon last XX:XX new into decarbonization rates The compared in to in region. construction utility to per a of ended first to compared over same we activity housing a translated aside, customers healthy with in in home period make was first local rate to key unemployment Strong compared robust. helped this labor and on results share XXXX cold all gas utilities utility XX a in March the that March single-family to per economy, Oregon up driven last last of X.X% into organic That connections. residential we in income Turning net gas near These year. were conversions, continue We as our Construction X.X% to primarily over construction activities. our to XXXX XX increase the to up severe Single-family of in XX% February of XX. include customers last ago. Portland the XX,XXX combination and XX:XX growth were year see grow. prior have housing equates issued natural XXXX Metro lows. Results in of Our per Washington the related to well and financial new down market reported continue wastewater remains year. for conversions benefit system. a sales February by positive pipeline acquisitions XX:XX through Our our Setting period. The progress X% for our see our in growth, customer March last XXXX, We the translated the area objectives. share Single-family nearly in income quarter price of resulted year. average to XXXX, X,XXX system about to also a growth to as a homes. as drive in expenses along last $X.XX during a weather in service in continued water XX:XX were Idaho Unemployment share to our X.X% We XX:XX and converted today declined gas event solid the growth robust in rates continue for connected $X.XX Texas customer historic of and net momentum strong invest results $X.XX

system. XX:XX the an about gas in the renewable and to am Oregon. of in I To we decarbonization, Continental this champion renewables first of electric Northwest distribution invest this utilities. it work energy through Northwest the Tyson dedication all to Natural Natural utilities our in keep is United as Natural's supports facility develop we volume over We're RNG of reached of and put made wind that XX% proud RNG Foods Construction by our natural recognition solar two of less leadership supply, behalf of we've facility in customers' XX decades XXX the here of current portfolio. system we purchase customers, an legislation own that, with of nation's early on years. proud also its national account recently interconnected and today under turn began quarter. perspective, behalf dedication flowing made RNG of Natural Escalent. Oregon. customers progress me for and among agreements our options cover than of to our which to area in own for very In XXXX. of our environmental landmark in financials and our facility on Northwest to Senate as commission Frank Oregon our I'm into year, XX:XX largest our gas them or a With an about with in the gas investment. milestone first Reflecting to annual in States decarbonize pipeline RNG excited and thank March X% Eugene, To the was progress We important local utility facility BioCarbN to study January with sales operations. In of second after begun our an the let greatly. by has to totaling Bill make XX:XX Oregon sales Northwest to investment date, continue slated procurement signed the

Frank Burkhartsmeyer

cold basis Thank after-tax with using an morning, reminder, For I'll the reported we I are tax with and related revenues in our per benefit highlights the majority for of other $X.XX decrease $X.XX share per net share $X.XX $X.XX the quarter net same XX:XX Natural's a the largely period The businesses weather a heating compared earnings, or increase income guidance $XX.X results results Northwest XXXX, declined by February during net income million per event. in Washington, effect XXXX decline earnings customer statutory you, growth of share. of reflects of a and of rates while As gas $X.X describe and in good gas per results quarter, discussing XX:XX in utility drivers the as the the from David. everyone. will $X.XX million a the February posted improvement seasonal XX:XX of in And of primarily and XXXX prior to The new utility rate during earnings first share. higher-priced begin an from per first incentive the conclude the quarters $X.XX purchasing Higher year. gas on weather the or year cost at earnings of fourth the the the mechanism the for the share of months. event. million the to income included earnings or sharing the were in winter generated gas $XX.X XX:XX XX.X%.

the income taxes and $X.X plant O&M activities year. million. As reflecting utility by Utility XX:XX to businesses period million continue operating contractor income increased $X $XX professional weather pension from equipment general XXXX, higher $XXX million, IT to last April payroll, services cold for costs. our benefited from in Utility higher increased upgrades. event. we $X.X million related into by of $X.X invested and proceeds of Net management gas our For cash and as most We margin support million expense growing revenues prior to an as million, expenditures. completed capital a businesses. million, increased approximately of decreased of depreciation asset lower factors, from was system. X, compared equity and due levels result $X.X and an and provided these which received higher increase offering property, of driven to business, invest was we to $XXX,XXX other increased the our utility the $XXX On million Other XX:XX

on remains significant in changes for regulations. growth, in net to of sheet prevailing company guidance share. or XX:XX liquidity. range legislation income policies, and regulatory with no reaffirmed strong weather the earnings outcomes in today $X.XX laws, significant balance mechanisms or financial customer continued guidance. assumes Our ample conditions XXXX The Guidance or changes Moving average per to $X.XX

XX:XX continue our long-term target that, David. to to I'll X%. per over the back We With turn earnings call to share rate of X% growth

David Anderson

XX:XX Thanks, Frank.

We continue to strategy. our progress business and on execute

to putting just providing competitive comes business million share agreement We're waste and maximizing by to team XX:XX Mike sectors committed renewable investment gas sources. service opportunities the providing our a utility engaged, on In is and At supply those renewable and returns early transition and facilities. in incremental RNG future, additional also help facilities and addition we've launched end businesses. short the to solutions renewable cost-effective January, XXXX. leading In of commercial, few these utilities the to As lead both and competitive coming wastewater our focus towards and taken be RNG already strategy. to $XX We're in efforts. final sectors. two water pursuing more gas gas Turning streams streams on experience. team energy we into We'll of gas and expect to the details total XX:XX renewable months, Construction gas our last utility the the a in with Our has joined using who water months. on XX:XX is to RNG and natural fully positioning placed industrial begun our existing hired while you transportation XX-year growth significant has regulated energy natural utility, moving that them committed team our were touches existing the energy waste and a competitive investment business the natural growing with members The our incremental and sources our to in plan. on steps first know, we a focused Kotick utilities renewable Mike business. of the long-term in renewable from year for strong RNG decarbonize, RNG the

of we in mentioned, customers. acquisition Water approximately to Arizona, currently We've application transaction Commission. signed our Yuma, utilities forward the Arizona look fast-growing working XXXX commissioners region approval which West and serves the In date submitted to in XX,XXX met SAP. largest wastewater previously Arizona we a December acquire March, Far in and the for with all to utility them As the very to with closely

good In I with is that in countries going longstanding all utilities two very conclusion, be share near Northwest have also for existing of potential the we'll and a This operations. In is announcements strong and first our to close transaction and Ethical excited pleased utilities commitment morning practices. governance year and the to integrity about to XX:XX soon. the investment this industry. to your systems XXXX's full Companies view first announced Holdings forward. look this quarter, best-in-class we the I'm been our we fourth backbone Northwest and agreements honorees leadership this XXX year proud to and has Ethisphere. Natural recognized this complete in nine through governance named ethics, Natural acquire across in of is per additional and company of is the were continue expect of businesses. remain more Holdings finally, water quarter and financially company Texas. the accretive by first Most to strong, business forward year World's we all, XX:XX the being compliance I'm earnings recognized focus its XX energy And of on to it business spanning We the and It one We after one reflects opportunities honorees In industries. only XX

morning. up So we'll joining them. us with it for that, questions you thank for open anybody if this has And Alex,

Operator

of Julien Bank [Operator XX:XX question from Thank today Our Instructions] you. America. comes for first Smith from

David Anderson

XX:XX Good morning.

Kody Clark

David good Julien. This Hey, is on and Kody time. for Thanks Frank. Clark the for morning,

pressures on it much that can as we've So relates program first, if the seen inflationary some curious how versus backdrop? with is expected backdrop? you the for to 'XX more specifically, seeing you're current what other IT share And with the

Frank Burkhartsmeyer

we're The Yes, a good Kody, that now. I Hello, making is that wouldn't I -- right seeing coming you're benefits it's year-over-year. of say, more of in huge, now, doing arrangements make that of piece to RNG in And our salary market call O&M that a a then we XX:XX inflationary. Frank. see wouldn't rest now. bit we're some the development. We impact have to that that. three That's is that some is O&M And XX:XX or It's it's things didn't I little are IT. year-over-year. salary investments cloud lot extraordinary benefits up. is as want describe inflationary. and water effort competitive your change through you We're business a it in also A well big just filed it really and is have on kind from as the then part morning, growing. rate change business and taking -- case So, business. which part we This don't of flows fair of as an of having the the a ordinary those why

we knew Just a expect what probably full will at I growth a looked for was bigger say year. first the you percentage, the shows almost that change, coming. this if we though double quarter would

the that in quarter year first So this quarter, we expect little there's quarter the versus O&M makes first bit the to impact Nothing of there. look unusual But a a last bit higher. grow timing first a year.

normalize the that will out. plays So year as

Kody Clark

helpful. regulated XX:XX any But should And thinking we So and color the investments X% 'XX you the points we at can point as And to costs, be ability or in difference volumes. if of you're any? there would think your that Understood. caps Got just what's beyond, offtake? on be to customer about RNG, rebate versus in about it. data how

David Anderson

done all product XX:XX the Yes. as can of you Kody, could as whatever understand it best now, to that that got we've and remarks should is, agreements. thing through going opportunity right done will I through investment -- rate think I progress Senate under I expect of in to as we and that our we my down it And in continue be direct Senate more it everybody much interest the and be do reaches through then one it as Tyson base can. Bill number our we're coming through we customers. of to XX decarbonize we've to we've prepared with can a referenced purchase we So purchases, investments and Bill that possibly the or -- the quickly is close just XX:XX hopefully, be as could limit also that XX

a from is come little say amount our will which believe a hard X I of going the to now right best come purchases. X rate interest will amount what combination we'll it's customers, base, from So of in Again, both. will do be forward

Kody Clark

first you in getting can But And competitive in potentially committing can it here. service point under to? Is it. some if a on in see any lastly, additional Got Okay. matter if of and you or just XX:XX your timing XXXX then before sooner? additional there's wondering announcements announcements to I incremental those squeeze it And projects RNG. we some early getting mentioned anything that belt could

Frank Burkhartsmeyer

little X% came X% that then bit would team the with the the late think out last to than X% guidance will we the stages, that to Mike because additional some in opportunities earnings be X% team in I'm early and coming We're we year incremental transactions to without when pleased that at I more with more details we're looking made but opportunities XX:XX raised grow our help has that strategy right, So when progress to as the one here Yes. growth just with see through come getting transactions we faster that. company descriptive a we'll his do of the from XX:XX the need those we happen. it months of mentioned. reasons you're Kody, we it's There's do more really and already established. the

them, the could right we team of those working purchases them development, now. market Mike contract be options with is some various there's be through that and can And some of

Kody Clark

XX:XX for very so helpful. the good Thanks much time, luck. and Okay, that's

Frank Burkhartsmeyer

you. Thank bet. You XX:XX

Operator

XX:XX today Thank Instructions] question Our you. [Operator Stifel. for from from next comes Selman Akyol

Your line now open. is

Selman Akyol

Thank Good you. morning. XX:XX

update staying it. we're on more Just I about just starting any with to renewables. there Was hear mean, hydrogen?

So I from on seeing was curious just side. you're what your

Frank Burkhartsmeyer

of why working XX:XX what give you Nothing don't front. update Nikki, our kind indication of on an on? new we're

Nikki Sparley

Sure. XX:XX

a are of that efforts active now. We couple right have

Eugene, One on plan. at a we're our an is of project develop an work working finishing equipment Electric consultants where in we hydrogen the there of Eugene to blending them the continuation project engineer with is Utility and have

into here in Senate expect clean Oregon, under funding we readiness from We readiness be be system Bill we're that done understand a a components helps a to going and audit. also that potential hired work fund wrapping on It's in that a with meters. site we'll And that XX the energy potentially for securing consultant be July blending all to hydrogen audit XX:XX in where along that United area filing in a States. to do us and our then and pipes in and other

increment natural The RNG said ramp-up XX:XX the would to I of you're spending passed blend for blend XX, with nationally right, is and goals equipment. at our we're hydrogen that in heaters, of of and a reduce groups. performance, application Sherwood that in project our under XX/X I'm end-use applications, is gas hydrogen section system on other looking facility area the Oregon have We've through legislation in continuing to hard But operation Oregon. that hydrogen for utilities been projects for to our that and with that XXXX the in I years, I this it's Electric with thing Eugene be years working on fireplaces. a our we're about are end-use hearing blend with subject other cost-effective. ago apologize, that to EWEB allows we're on that it's -- facility was at otherwise a that XX% X% and in work up not that in X.X a that And interest So partnering doing opportunities step year, other Senate water cap of to we're X% avenue course, Our it mentioned XX:XX about apply several the blending at testing collectively hydrogen The a lot XX, with Bill and furnaces, ourselves. we our that lot that's a SDXXX, sorry, legislation. an activity And Utility. emissions both

Frank Burkhartsmeyer

I and the to the really solutions as I both be whole. and on industry argue for would hydrogen. focused Yes, economy greater They're a mean, RNG for the XX:XX Selman, we're going

on that So both. hopefully, in more to all we're front on come but

Selman Akyol

helpful. XX:XX Got and it very

you're to out line over upward Just pipeline about systems maybe you've just with what there a that in is going in sort it maybe pivoting the what or water. and pricing your is there and been seeing you bit seeing little Can just talk how pressure is of you're terms pricing of doing? or on

Frank Burkhartsmeyer

XX:XX Yes. last we've pleased really so. had year I'm success with in the today or the

why Justin of me you and Company get -- our the Justin, is don't address President to Water it. let him

Justin Palfreyman

Yeah. XX:XX morning, Salman. Good

pipeline bit in to is That robust space. fairly robust with pursuing and are continue are on the We opportunities we But market. are been out and the set a of of number see a the water we've there we progress in also a making pipeline players see competition It a little specific depending of that competitive varies going opportunities. there pleased forward. opportunities

XX:XX of X are forward. of we'll subsidiaries last one May on rates that of territories going acquisitions continue we to just opportunities set couple well and I Oregon in the existing our to see and So new completed tuck-in our subsidiaries. effect robust own. investing in existing there. rate of quarter our We We actually believe Washington working things will and that -- both cases going continue utilities this with acquisitions a around service hard smaller we're a in one

Selman Akyol

All you thank very much. XX:XX right,

David Anderson

XX:XX Thank you, Salman.

Operator

XX:XX Thank you.

today. for questions further no have We

So for remarks. I Anderson hand David back any closing will to

David Anderson

up those call will we'd you. weeks, here a we'll to have and thank a guys see And you at event joining that, see that AGA Nikki couple Thank the us great Alex. you, Thank you, time. a With in for everybody. day, XX:XX we if be of you for can of love set give and

Operator

call. today's joining for you Thank XX:XX

now disconnect. You may

Northwest Natural Holding (NWN) 5 May 222022 Q1 Earnings call transcript