In This Article:
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Net Loss (Q3 2024): $27.2 million or $0.71 per share.
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Net Loss (Q3 2023): $23.7 million or $0.65 per share.
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Net Income (First 9 months 2024): $33.9 million or $0.88 per share.
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Net Income (First 9 months 2023): $49.2 million or $1.37 per share.
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Revenue Requirement Increase: $93.3 million from Oregon gas utility rate case.
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Rate Base Increase: $334 million to $2.1 billion.
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Cash Provided by Operating Activities (2024): $220 million.
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Capital Investments (2024): $326 million.
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Equity Issuance (2024): $90.4 million through ATM program.
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2024 GAAP EPS Guidance: $1.94 to $2.14.
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2024 Adjusted EPS Guidance: $2.20 to $2.40.
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Long-term EPS Growth Rate Target: 4% to 6%.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Northwest Natural Holding Co (NYSE:NWN) reported a strong third quarter performance, with successful execution of their capital investment plan and regulatory dockets.
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The company completed the Oregon gas utility rate case and three water and wastewater utility rate cases, receiving constructive orders in nearly all cases.
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The customer base for both gas and water utilities grew by 1.9% over the last 12 months, indicating positive growth trends.
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The company closed the Puttman Infrastructure and ICH acquisition, expanding their customer base in Idaho, Oregon, and California, and entering the recycled water business.
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Northwest Natural Renewables' two landfill RNG facilities reached substantial completion, setting the company up for a full year of revenues and cash flows in 2025.
Negative Points
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Northwest Natural Holding Co (NYSE:NWN) reported a net loss of $27.2 million for the third quarter of 2024, compared to a net loss of $23.7 million in the same period in 2023.
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The company faced regulatory lag on investments and inflationary pressures, impacting earnings negatively.
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The Oregon commission required NWN to forgo recovery of $13.7 million of rate base related to line extension allowances, resulting in a $10.1 million after-tax noncash disallowance.
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Utility depreciation and general taxes increased by $3.6 million, adding to the financial pressures.
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The company's guidance assumes no significant changes in regulatory policies or laws, indicating potential vulnerability to regulatory shifts.
Q & A Highlights
Q: Can you elaborate on the final order regarding the disallowance and any deductions from the revenue increase that are non-margin enhancing? A: David Anderson, CEO: The majority of the rate case was settled early, resulting in a $93 million revenue requirement. The only unsettled items were government affairs expenses and line extension allowances. The increase in depreciation and amortization is a cash flow impact, not an earnings impact.