Northwest Natural Gas Q2 Earnings Call Highlights

Northwest Natural Gas NYSE: NWN said it expects 2026 earnings per share to land in the top half of its previously issued $2.95 to $3.15 guidance range, citing stronger-than-expected first-half performance, increased visibility into the second half and continued cost management.

Northwest Natural Holdings reported second-quarter earnings per share of $0.01, unchanged from the prior-year period and above management's expectations. Year-to-date EPS was $2.33, compared with adjusted EPS of $2.28 in the first half of 2025.

President and Chief Executive Officer Justin Palfreyman said the company’s performance reflected operational execution across its gas, Texas utility and water businesses, alongside progress on regulatory matters and major growth projects.

At Northwest Natural Gas, the company said it has filed a multiparty settlement in its Oregon alternative rate mechanism proceeding. The settlement would provide a $13 million revenue requirement, compared with the company’s original $15.6 million request. Management expects an Oregon Public Utility Commission order later in 2026, with new rates targeted to take effect Oct. 31, 2026.

The company is also participating in Oregon’s multiyear rate-plan rulemaking process. Phase I has concluded and addressed concepts including five-year rate plans, revenue indexing and capital-funding mechanisms. Phase II is underway and is expected to establish further details, with the full process projected to conclude before the end of 2027. Under the current schedule, Northwest Natural expects to file its first multiyear general rate case under the prospective rules in 2028, with resulting rates effective in 2029. Palfreyman said the company has other options, including traditional rate cases, to support timely investment recovery before then.

In Washington, the company received an order in its multiyear rate case that granted more than 80% of its requested revenue-requirement increase. The order established a 50% equity and 50% long-term debt capital structure and a 9.5% return on equity. It also preserved the line-extension allowance for prospective customers. New Washington rates took effect Aug. 1.

Northwest Natural invested more than $165 million in gas-system infrastructure during the first half of 2026, supporting customer growth, system reliability and modernization, according to management.

SiEnergy, the company’s Texas gas utility, reported organic customer growth of more than 15% during the quarter. Management said it has more than 260,000 future meters in its backlog and continues to expect annual customer growth of roughly 15% to 20% through 2030. SiEnergy filed a rate case with the Railroad Commission of Texas on May 4.