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Jun 30, 2024
NW Natural Q2 2024 Earnings Report
Reported a net loss for the second quarter of 2024 due to regulatory lag and increased pension expense, partially offset by customer growth and cost savings.
Key Takeaways
NW Natural Holdings reported a net loss of $2.8 million, or $0.07 per share, for the second quarter of 2024, compared to a net income of $1.2 million, or $0.03 per share, for the same period in 2023. The decrease was primarily due to regulatory lag from higher depreciation and pension expenses. The company reaffirmed its 2024 earnings guidance in the range of $2.20 to $2.40 per share.
Net loss of $2.8 million ($0.07 per share) for Q2 2024, compared to net income of $1.2 million ($0.03 per share) for Q2 2023.
Net income of $61.0 million ($1.60 per share) for the first six months of 2024, compared to $72.9 million ($2.03 per share) for the same period in 2023, primarily due to regulatory lag.
Added nearly 16,000 gas and water utility connections in the last 12 months, a combined growth rate of 1.8% as of June 30, 2024.
Signed Puttman and ICH water acquisition agreement adding 4,200 customers and a strong pipeline of growth opportunities.
Forward Guidance
NW Natural Holdings reaffirmed its 2024 annual earnings guidance in the range of $2.20 to $2.40 per share. This guidance assumes continued customer growth, average weather conditions, and no significant changes in prevailing regulatory policies, mechanisms, or outcomes, or significant local, state or federal laws, legislation or regulations.
Positive Outlook
- Continued customer growth
- Average weather conditions
- No significant changes in prevailing regulatory policies
- No significant changes in regulatory mechanisms or outcomes
- No significant changes in local, state or federal laws, legislation or regulations
Challenges Ahead
- Regulatory lag from natural gas distribution segment
- Substantial investments to provide continued safe and reliable service
- Elevated investment in technology resulting in higher depreciation expense
Historical Earnings Impact
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Avg. Return Before/After Earnings
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