Northwest Natural Holding Company Q3 FY2025 earnings call

• Justin emphasized strong third quarter results, with full year 2025 expected to be above the midpoint of the adjusted earnings range of $2.75 to $2.95 per share. • Northwest Natural Gas utility had constructive regulatory outcomes in Oregon and filed a rate case in Washington. • SiEnergy gas utility in Texas experienced significant customer backlog growth and beneficial legislation. • Northwest Natural Water continued customer growth, completed rate cases, and expanded in Texas through business development. • Renewables segment maintained steady operational performance. • Board approved a dividend increase, marking the 70th consecutive year of annual dividend increases.

Northwest Natural Gas utility saw regulatory approvals with a $20.7 million revenue requirement increase and a $180 million rate base increase, with new rates in Oregon effective October 31 and a Washington rate case filed. SiEnergy gas utility in Texas had strong customer growth, with over 240,000 future meters signed and beneficial legislation (House Bill 4384) that streamlines the regulatory process. Northwest Natural Water had a 4.1% customer base growth over 12 months, completed 7 rate cases in 2025 with about 67% of requested revenue increases, and expanded in Texas with contracts for 3,200 future water and wastewater connections. The renewables segment had steady operational performance. Revenue contribution details: Northwest Natural Gas, SiEnergy, Water, and renewables each played distinct roles in the company's overall revenue structure.

• Reaffirmed 2025 adjusted earnings guidance in the range of $2.75 per share to $2.95 per share, expecting to be above the midpoint. • SiEnergy and Northwest Natural Water each expected to contribute approximately $0.25 to $0.30 of adjusted earnings per share in 2025. • Projected 2% to 2.5% consolidated organic customer growth across utilities. • Consolidated capital expenditures expected to be in the range of $450 million to $500 million. • Reaffirmed long-term earnings growth rate of 4% to 6% compounded annually from the midpoint of the 2025 adjusted EPS guidance range.

• Forward-looking statements are based on management's assumptions which may not occur; refer to cautionary statements in press release and risk factors in 10-Q and 10-K filings. • Guidance assumes continued customer growth, average weather conditions, and no significant changes in regulatory policies, laws, or regulations.

Q: Could you provide more color on the lower equity requirement for 2025?

A: It's a function of reassessing capital structure throughout the year, with the ATM program for the year now complete.

Q: Where are additional tuck-in opportunities, particularly in Texas for water and gas?

A: Tuck-in opportunities exist, but the company is prioritizing organic growth in regions like Texas, Arizona, and Idaho where there's strong housing growth.

Q: With the change in rate case timing in Oregon, how receptive has the commission been?

A: The commission has opened a docket on multiyear planning in Oregon and is engaged in the rule-making process, with the company well-positioned with new rates effective in Oregon.

Q: What's the status of hydrogen pilot projects given administration changes?

A: Hydrogen blending tests were done, a pilot for methane pyrolysis technology is largely complete, but hydrogen hub funding has been reallocated, with future hydrogen use dependent on affordable clean hydrogen.