Northwest Natural Holdings completed a successful Q4 2024 earnings call, highlighted by growth and acquisitions.
From Nasdaq: 2025-02-28 17:45:13
Northwest Natural Holding Company held its Q4 2024 earnings call on February 28, 2025. The company’s CEO David Anderson highlighted their achievements in 2024, including growing their customer base and completing important rate cases. They also announced the acquisition of SiEnergy in Texas, a move that will drive long-term growth for the company. Northwest Natural expects adjusted earnings for 2025 to be in the range of $2.75 to $2.95 per share. The company remains dedicated to providing safe, reliable, and affordable utility services to the communities they serve. Northwest Natural successfully completed an Oregon general rate case, with revenue requirement increasing by $93.3 million and rate base by $334 million. During the January 2024 cold snap, the gas system provided 55% more energy than the largest electric utilities in Portland. Voters in the service territory support a diversified energy approach, with 81% agreeing on the need for both electricity and natural gas. The company filed an Oregon general rate case last year, requesting a modest revenue requirement increase of $59.4 million. The SiEnergy acquisition in Texas was finalized, bringing strong customer growth opportunities.
In 2024, the company achieved net income of $90.6 million, with earnings per share affected by the issuance of common stock for long-term growth. The natural gas distribution segment saw an increase in utility margin due to new rates in Oregon and decreased O&M costs. Capital investments of $394 million were made for safety, reliability, and technology, with 90% allocated to the gas utility. The company provided annual 2025 adjusted earnings guidance of $2.75 to $2.95 per share, expecting strong contributions from other businesses and a long-term growth rate of 4% to 6% annually from 2025 adjusted EPS. Northwest Natural Holdings has increased its consolidated capex range to $2.5 billion to $2.7 billion through 2030, a 40% increase, due to the addition of SiEnergy to their portfolio. The utilities combined annual rate base growth target has also increased to 6% to 8%. SiEnergy is projected to see 20% or higher customer growth, supported by a backlog of nearly 190,000 connections under contract. The company plans to refinance the SiEnergy acquisition with junior subordinated notes and expects to issue permanent financing this spring. They anticipate double-digit growth from SiEnergy and robust growth from water and wastewater utilities in the coming years. CEO David Hugo Anderson will retire in April 2025, with Justin succeeding him. Northwest Natural Holding Company is evaluating opportunities in data centers in the Pacific Northwest and Texas to connect to their systems. They are monitoring potential impacts of tariffs on gas costs but do not anticipate a significant impact on customers. The company is actively engaged with policymakers on potential exemptions for energy-related capital equipment from tariffs. They plan to evaluate SiEnergy’s rate case timing as the year unfolds. The company plans to invest $350 million in gas, $80 million in SiEnergy, and $60 million in water for a total of $450-500 million in capex for 2025. 1. The Motley Fool advises readers to conduct their own research and review SEC filings before making investment decisions. The company has no position in any of the stocks mentioned and emphasizes the importance of reading the necessary disclaimers.
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Read more at Nasdaq: Northwest Natural (NWN) Q4 2024 Earnings Call Transcript