Financial News

NW Natural Holdings Reports First Quarter 2022 Results

Northwest Natural Holding Company, (NYSE: NWN) (NW Natural Holdings), reported financial results and highlights including:

  • Earned net income of $1.80 per share for the first quarter of 2022, compared to net income of $1.94 per share for the same period in 2021. The first quarter of 2021 results included a $2.8 million after-tax (or $0.09 per share) benefit primarily related to asset management revenues from a February 2021 cold weather event.
  • Added more than 10,800 natural gas meters in the last 12 months for a growth rate of 1.4% as of March 31, 2022
  • Commenced operations at the first renewable natural gas (RNG) facility under the landmark Oregon legislation Senate Bill 98, which is producing RNG on behalf of our gas utility customers
  • Continued executing our water and wastewater investment strategy, announcing acquisitions near our existing service territory in Texas
  • Construction began on the first RNG facilities that we're investing in through our competitive renewables business
  • Honored as one of the 2022 World's Most Ethical Companies® by Ethisphere
  • Reaffirmed 2022 earnings guidance in the range of $2.45 to $2.65 per share and our long-term earnings per share growth rate target of 4% to 6%

"This quarter we reached an important milestone in our decarbonization efforts with the commencement of operations at our first RNG facility under Oregon Senate Bill 98," said David H. Anderson, president and CEO of NW Natural Holdings. "NW Natural is the first local gas distribution utility in the continental United States to invest in and own an RNG facility on behalf of all its sales customers. We're continuing to work on behalf of our customers, executing on the decarbonization and growth opportunities in front of us. In addition, I'm proud of NW Natural Holdings being named one of the 2022 World's Most Ethical Companies® by Ethisphere. This reflects our long-standing commitment to leadership in business integrity through best-in-class ethics, compliance and governance practices."

Year-to-date net income decreased $3.3 million to $56.2 million (or $1.80 per share), compared to $59.5 million (or $1.94 per share) for the same period in 2021. Results reflected customer growth and new rates in Washington for our natural gas utility, offset by higher operations and maintenance expenses and depreciation and general taxes as we continue investing in our gas utility system. In addition, net income from our other activities decreased primarily due to lower asset management revenues related to a severe winter storm in February 2021.

KEY EVENTS AND INITIATIVES

Ongoing Oregon General Rate Case for NW Natural

On Dec. 17, 2021, NW Natural filed a request for a general rate increase with the Oregon Public Utility Commission (OPUC). The filing included a requested $73.5 million annual revenue requirement increase and an increase in average rate base of $294 million to support long-planned investments related to safety, reliability, and information technology upgrades. NW Natural's filing will be reviewed by the OPUC and other stakeholders. The process is anticipated to take up to 10 months with new rates expected to take effect Nov. 1, 2022.

Utility Renewable Natural Gas (RNG)

Operations commenced at our first investment in a RNG facility under Oregon Senate Bill 98 with BioCarbN and Tyson Foods in January 2022. Construction of the second RNG facility began in late 2021 with completion and commissioning expected in early 2023. NW Natural has options to invest up to a total estimated $38 million in four separate RNG development projects using biogas derived from Tyson Foods’ processing plants.

NW Natural continues to pursue RNG supply for customers under the landmark Oregon Senate Bill 98, which supports renewable energy procurement and investment by natural gas utilities. To date, NW Natural has signed agreements with options to purchase or develop RNG on behalf of utility customers totaling about 3% of NW Natural’s current annual sales volume in Oregon.

NW Natural Renewables Competitive RNG Strategy

NW Natural Renewables is an unregulated subsidiary of NW Natural Holdings committed to leading in the energy transition by providing cost-effective solutions to decarbonize the utility, commercial, industrial and transportation sectors.

In January 2022, NW Natural Renewables named Michael Kotyk, an industry leader, as president of the new business line and since then has made additional key hires, equipping the business to be ready and resourced to pursue further RNG opportunities.

NW Natural Renewables' first project is with EDL, a leading global producer of sustainable distributed energy. NW Natural Renewables has contracted to provide a combined $50 million investment in two production facilities in Ohio that are designed to convert landfill waste gases to RNG and connect that production to existing regional pipeline networks. Construction began in January 2022 with substantial completion and commissioning of the first facility anticipated in early 2023 and the second facility in spring 2023. In addition, the agreements with EDL provide for a 20-year supply of RNG that NW Natural Renewables intends to market and sell primarily under long-term contracts.

Water Utilities

During the first quarter of 2022, NW Natural Water signed two purchase agreements for water utilities in Texas, representing approximately 900 connections. The acquisitions are subject to customary closing conditions, including approval by the Public Utility Commission of Texas, and are expected to close in 2022. In December 2021, NWN Water agreed to purchase the water and wastewater utilities of Far West Water & Sewer, Inc. located in Yuma, Arizona. In March 2022, we filed our acquisition application with the Arizona Corporation Commission. With all pending acquisitions closed, NW Natural Water will serve over 145,000 people through approximately 60,000 connections in five states.

For our acquired water utilities, we have been executing general rate cases. In February 2022, the OPUC adopted a comprehensive stipulation in Sunriver Water's rate case with new rates effective May 2022. In January 2022, we filed a general rate case for Suncadia Water and last week the Washington Commission approved new rates effective May 1, 2022.

FIRST QUARTER RESULTS

The following financial comparisons are for the first quarter of 2022 and 2021 with individual year-over-year drivers below presented on an after-tax basis using a statutory tax rate of 26.5% unless otherwise noted.

NW Natural Holdings' first quarter results are summarized by business segment in the table below:

 

Three Months Ended March 31,

 

2022

 

2021

 

Change

In thousands, except per share data

Amount

Per Share

 

Amount

Per Share

 

Amount

Per Share

Net income:

 

 

 

 

 

 

 

 

Natural Gas Distribution segment

$

55,390

$

1.77

 

$

53,925

$

1.76

 

$

1,465

 

$

0.01

 

Other

 

849

 

0.03

 

 

5,592

 

0.18

 

 

(4,743

)

 

(0.15

)

Consolidated

$

56,239

$

1.80

 

$

59,517

$

1.94

 

$

(3,278

)

$

(0.14

)

 

 

 

 

 

 

 

 

 

Diluted Shares

 

 

31,212

 

 

 

30,633

 

 

 

579

 

Natural Gas Distribution Segment

Natural Gas Distribution segment net income increased $1.5 million (or $0.01 per share) primarily reflecting new rates in Washington as a result of a general rate case, which was effective beginning Nov. 1, 2021.

Margin increased $3.7 million reflecting new rates in Washington and customer growth, which collectively contributed $2.7 million. In addition, there was a $1.7 million improvement from the gas cost incentive sharing mechanism as the prior year included the effect of purchasing higher priced gas for a February 2021 cold weather event. This was offset by decline in margin of $0.7 million due to 8% warmer than average weather for the first quarter of 2022, compared to 5% warmer than average weather for the same period in 2021.

Operations and maintenance expense increased $3.5 million as a result of higher contractor labor for safety and reliability projects, compensation costs due to higher headcount and wage increases, expenses related to information technology maintenance and support, and amortization expense related to cloud-computing arrangements.

Depreciation and general taxes increased $0.9 million as we continue to invest in our natural gas utility system.

Other income, net increased $1.9 million driven by lower pension costs primarily related to higher returns and lower interest costs.

Other

Other net income decreased $4.7 million (or $0.15 per share) reflecting $4.2 million of lower net income from NW Natural's other activities driven by asset management revenues from a February 2021 cold weather event. In addition, NW Natural Holding's other businesses reported a higher net loss of $0.6 million primarily related to increased water and wastewater utility business development costs.

BALANCE SHEET AND CASH FLOWS

During the first three months of 2022, the Company generated $141.0 million in operating cash flows or an increase of $4.0 million compared to the same period in 2021. The Company used $69.8 million in investing activities during the first three months of 2022 primarily for natural gas utility capital expenditures, compared to $63.9 million used in investing activities during the same period in 2021. Net cash used in financing activities was $62.8 million for the first three months of 2022, compared to $83.1 million used in financing activities during the same period in 2021. As of March 31, 2022, NW Natural Holdings held cash of $24.3 million.

2022 GUIDANCE AND LONG-TERM TARGETS

NW Natural Holdings reaffirmed 2022 earnings guidance in the range of $2.45 to $2.65 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. NW Natural Holdings reaffirmed its long-term earnings per share growth rate target of 4% to 6% compounded annually from 2022 through 2027.

DIVIDEND DECLARED

The board of directors of NW Natural Holdings declared a quarterly dividend of 48.25 cents per share on the Company’s common stock. The dividend is payable on May 13, 2022 to shareholders of record on April 29, 2022. The Company's current indicated annual dividend rate is $1.93 per share. Future dividends are subject to board of director discretion and approval.

CONFERENCE CALL AND WEBCAST

As previously announced, NW Natural Holdings will host a conference call and webcast today to discuss its first quarter 2022 financial and operating results.

Date and Time:

Wednesday, May 4, 2022

8 a.m. PT (11 a.m. ET)

Phone Numbers:

United States 1-844-200-6205

Canada 1-833-950-0062

International 1-929-526-1599

Passcode 884524

The call will also be webcast in a listen-only format for the media and general public and can be accessed at ir.nwnaturalholdings.com. A replay of the conference call will be available on our website and by dialing 1-866-813-9403 (U.S.), 1-226-828-7578 (Canada), and +44-204-525-0658 (international). The replay access code is 448759.

ABOUT NW NATURAL HOLDINGS

Northwest Natural Holding Company, (NYSE: NWN) (NW Natural Holdings), is headquartered in Portland, Oregon and has been doing business for over 160 years in the Pacific Northwest. It owns NW Natural Gas Company (NW Natural), NW Natural Water Company (NW Natural Water), NW Natural Renewables Holdings (NW Natural Renewables), and other business interests. We have a longstanding commitment to safety, environmental stewardship and the energy transition, and taking care of our employees and communities.

NW Natural is a local distribution company that currently provides natural gas service to approximately 2.5 million people in more than 140 communities through more than 785,000 meters in Oregon and Southwest Washington with one of the most modern pipeline systems in the nation. NW Natural consistently leads the industry with high J.D. Power & Associates customer satisfaction scores. NW Natural owns and operates 21 Bcf of underground gas storage capacity in Oregon.

NW Natural Water provides water distribution and wastewater services to communities throughout the Pacific Northwest and Texas. With all pending acquisitions closed, NW Natural Water will serve over 145,000 people through approximately 60,000 connections in five states. Learn more about our water business at nwnaturalwater.com.

Additional information is available at nwnaturalholdings.com.

Forward-Looking Statements

This press release, and other presentations made by NW Holdings from time to time, may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipates," "assumes," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, objectives, assumptions, estimates, expectations, timing, goals, strategies, commitments, future events, investments, timing and amount of capital expenditures, targeted capital structure, risks, risk profile, stability, acquisitions and timing, completion and integration thereof, the likelihood and success associated with any transaction, utility system and infrastructure investments, system modernization, reliability and resiliency, global, national and local economies, customer and business growth, customer satisfaction ratings, weather, performance and service during weather events, customer rates or rate recovery and the timing and magnitude of potential rate changes and the potential outcome of rate cases, environmental remediation cost recoveries, environmental initiatives, decarbonization and the role of natural gas and the gas delivery system, including decarbonization goals and timelines, energy efficiency measures, use of renewable sources, renewable natural gas purchases, projects, investments and other renewable initiatives and timing, magnitude and completion thereof, unregulated renewable natural gas strategy and initiatives, renewable hydrogen projects or investments and timing, magnitude and completion thereof, procurement of renewable natural gas or hydrogen for customers, technology and policy innovations, strategic goals and visions, the water and wastewater acquisition and investment strategy and financial effects of water and wastewater acquisitions, diversity, equity and inclusion initiatives, operating plans of third parties, financial results, including estimated income, availability and sources of liquidity, expenses, positions, revenues, returns, cost of capital, timing, and earnings, earnings guidance and estimated future growth rates, dividends, commodity costs and sourcing asset management activities, performance, timing, outcome, or effects of regulatory proceedings or mechanisms or approvals, regulatory prudence reviews, anticipated regulatory actions or filings, accounting treatment of future events, effects of legislation or changes in laws or regulations, effects, extent, severity and duration of COVID-19 and resulting economic disruption, the impact of mitigating factors and other efforts to mitigate risks posed by its spread, ability of our workforce, customers or suppliers to operate or conduct business, COVID-19 financial impact, expenses, cost savings measures and cost recovery including through regulatory deferrals and the timing and magnitude thereof, impact on capital projects, governmental actions and timing thereof, and other statements that are other than statements of historical facts.

Forward-looking statements are based on current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. You are therefore cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future operational, economic or financial performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed by reference to the factors described in Part I, Item 1A "Risk Factors", and Part II, Item 7 and Item 7A "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosure about Market Risk" in the most recent Annual Report on Form 10-K and in Part I, Items 2 and 3 "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk", and Part II, Item 1A, "Risk Factors", in the quarterly reports filed thereafter.

All forward-looking statements made in this report and all subsequent forward-looking statements, whether written or oral and whether made by or on behalf of NW Holdings or NW Natural, are expressly qualified by these cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is made, and NW Holdings and NW Natural undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. New factors emerge from time to time and it is not possible to predict all such factors, nor can it assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements.

NORTHWEST NATURAL HOLDINGS

Consolidated Income Statement and Financial Highlights (Unaudited)

First Quarter 2022

 

 

Three Months

Ended

 

Twelve Months

Ended

 

In thousands, except per share amounts, customer, and degree day data

March 31,

 

March 31,

 

2022

 

2021

Change

2022

 

2021

Change

Operating revenues

$

350,301

 

 

$

315,946

 

11

%

$

894,755

 

 

$

804,474

 

11

%

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of gas

 

145,588

 

 

 

112,210

 

30

 

 

325,692

 

 

 

266,427

 

22

 

 

Operations and maintenance

 

57,485

 

 

 

52,191

 

10

 

 

209,521

 

 

 

183,399

 

14

 

 

Environmental remediation

 

4,703

 

 

 

3,777

 

25

 

 

10,864

 

 

 

9,463

 

15

 

 

General taxes

 

12,104

 

 

 

11,369

 

6

 

 

39,368

 

 

 

36,552

 

8

 

 

Revenue taxes

 

13,360

 

 

 

12,664

 

5

 

 

35,436

 

 

 

31,212

 

14

 

 

Depreciation

 

28,429

 

 

 

28,097

 

1

 

 

113,866

 

 

 

107,105

 

6

 

 

Other operating expenses

 

994

 

 

 

932

 

7

 

 

3,959

 

 

 

3,705

 

7

 

 

Total operating expenses

 

262,663

 

 

 

221,240

 

19

 

 

738,706

 

 

 

637,863

 

16

 

Income from operations

 

87,638

 

 

 

94,706

 

(7

)

 

156,049

 

 

 

166,611

 

(6

)

Other income (expense), net

 

(954

)

 

 

(3,542

)

(73

)

 

(9,971

)

 

 

(13,911

)

(28

)

Interest expense, net

 

11,522

 

 

 

11,126

 

4

 

 

44,882

 

 

 

43,710

 

3

 

Income before income taxes

 

75,162

 

 

 

80,038

 

(6

)

 

101,196

 

 

 

108,990

 

(7

)

Income tax expense

 

18,923

 

 

 

20,521

 

(8

)

 

25,808

 

 

 

27,476

 

(6

)

Net income from continuing operations

 

56,239

 

 

 

59,517

 

(6

)

 

75,388

 

 

 

81,514

 

(8

)

Income from discontinued operations, net of tax

 

 

 

 

 

 

 

 

 

 

7,286

 

(100

)

Net income

$

56,239

 

 

$

59,517

 

(6

)

$

75,388

 

 

$

88,800

 

(15

)

 

 

 

 

 

 

 

 

 

Common shares outstanding:

 

 

 

 

 

 

 

 

 

Average diluted for period

 

31,212

 

 

 

30,633

 

 

 

30,868

 

 

 

30,598

 

 

 

End of period

 

31,380

 

 

 

30,655

 

 

 

31,380

 

 

 

30,655

 

 

 

 

 

 

 

 

 

 

 

 

Per share of common stock information:

 

 

 

 

 

 

 

 

Diluted earnings from continuing operations

$

1.80

 

 

$

1.94

 

 

$

2.44

 

 

$

2.66

 

 

Diluted earnings from discontinued operations, net of tax

 

 

 

 

 

 

 

 

 

 

0.24

 

 

Diluted earnings

 

1.80

 

 

 

1.94

 

 

 

2.44

 

 

 

2.90

 

 

Dividends paid per share

 

0.4825

 

 

 

0.4800

 

 

 

1.9250

 

 

 

1.9150

 

 

Book value, end of period

 

31.48

 

 

 

30.54

 

 

 

31.48

 

 

 

30.54

 

 

Market closing price, end of period

 

51.72

 

 

 

53.95

 

 

 

51.72

 

 

 

53.95

 

 

 

 

 

 

 

 

 

 

 

Capital structure, end of period:

 

 

 

 

 

 

 

 

 

Common stock equity

 

41.8

%

 

 

44.0

%

 

 

41.8

%

 

 

44.0

%

 

 

Long-term debt

 

44.1

%

 

 

40.4

%

 

 

44.1

%

 

 

40.4

%

 

 

Short-term debt (including current maturities of long-term debt)

 

14.1

%

 

 

15.6

%

 

 

14.1

%

 

 

15.6

%

 

 

Total

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Distribution segment operating statistics:

 

 

 

 

 

 

 

 

Meters - end of period

 

788,772

 

 

 

777,966

 

1.4

%

 

788,772

 

 

 

777,966

 

1.4

%

Volumes in therms:

 

 

 

 

 

 

 

 

 

Residential and commercial sales

 

293,927

 

 

 

297,822

 

 

 

699,159

 

 

 

688,221

 

 

 

Industrial sales and transportation

 

134,459

 

 

 

133,298

 

 

 

482,882

 

 

 

464,879

 

 

Total volumes sold and delivered

 

428,386

 

 

 

431,120

 

 

 

1,182,041

 

 

 

1,153,100

 

 

Operating revenues:

 

 

 

 

 

 

 

 

 

Residential and commercial sales

$

314,607

 

 

$

278,584

 

 

$

766,817

 

 

$

684,526

 

 

 

Industrial sales and transportation

 

21,273

 

 

 

17,379

 

 

 

69,193

 

 

 

58,863

 

 

 

Other distribution revenues

 

607

 

 

 

590

 

 

 

1,724

 

 

 

1,553

 

 

 

Other regulated services

 

4,911

 

 

 

4,785

 

 

 

19,213

 

 

 

18,981

 

 

Total operating revenues

 

341,398

 

 

 

301,338

 

 

 

856,947

 

 

 

763,923

 

 

 

Less: Cost of gas

 

145,644

 

 

 

112,266

 

 

 

325,916

 

 

 

266,651

 

 

 

Less: Environmental remediation expense

 

4,698

 

 

 

3,777

 

 

 

10,859

 

 

 

9,463

 

 

 

Less: Revenue taxes

 

13,324

 

 

 

12,655

 

 

 

35,269

 

 

 

31,203

 

 

Margin, net

$

177,732

 

 

$

172,640

 

 

$

484,903

 

 

$

456,606

 

 

Degree days:

 

 

 

 

 

 

 

 

 

Average (25-year average)

 

1,326

 

 

 

1,326

 

 

 

2,692

 

 

 

2,690

 

 

 

Actual

 

1,217

 

 

 

1,261

 

(3

)%

 

2,334

 

 

 

2,430

 

(4

)%

Percent colder (warmer) than average weather

 

(8

) %

 

 

(5

) %

 

 

(13

) %

 

 

(10

) %

 

NORTHWEST NATURAL HOLDINGS

 

 

 

 

Consolidated Balance Sheets (Unaudited)

 

March 31,

In thousands

 

2022

 

2021

Assets:

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

24,325

 

 

$

17,907

 

Accounts receivable

 

 

103,131

 

 

 

105,226

 

Accrued unbilled revenue

 

 

41,772

 

 

 

41,907

 

Allowance for uncollectible accounts

 

 

(2,488

)

 

 

(3,503

)

Regulatory assets

 

 

64,481

 

 

 

47,789

 

Derivative instruments

 

 

84,438

 

 

 

19,914

 

Inventories

 

 

33,377

 

 

 

26,237

 

Income taxes receivable

 

 

 

 

 

6,000

 

Other current assets

 

 

42,329

 

 

 

41,315

 

Total current assets

 

 

391,365

 

 

 

302,792

 

Non-current assets:

 

 

 

 

Property, plant, and equipment

 

 

4,041,894

 

 

 

3,788,283

 

Less: Accumulated depreciation

 

 

1,137,138

 

 

 

1,091,903

 

Total property, plant, and equipment, net

 

 

2,904,756

 

 

 

2,696,380

 

Regulatory assets

 

 

297,546

 

 

 

338,692

 

Derivative instruments

 

 

6,955

 

 

 

3,087

 

Other investments

 

 

96,266

 

 

 

79,034

 

Operating lease right of use asset, net

 

 

74,416

 

 

 

76,957

 

Assets under sales-type leases

 

 

137,837

 

 

 

142,586

 

Goodwill

 

 

70,570

 

 

 

69,330

 

Other non-current assets

 

 

74,923

 

 

 

49,767

 

Total non-current assets

 

 

3,663,269

 

 

 

3,455,833

 

Total assets

 

$

4,054,634

 

 

$

3,758,625

 

Liabilities and equity:

 

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

 

$

332,500

 

 

$

236,225

 

Current maturities of long-term debt

 

 

339

 

 

 

95,265

 

Accounts payable

 

 

130,557

 

 

 

88,591

 

Taxes accrued

 

 

14,258

 

 

 

23,550

 

Interest accrued

 

 

10,886

 

 

 

9,491

 

Regulatory liabilities

 

 

111,791

 

 

 

81,314

 

Derivative instruments

 

 

3,855

 

 

 

1,038

 

Operating lease liabilities

 

 

1,303

 

 

 

1,213

 

Other current liabilities

 

 

52,778

 

 

 

48,978

 

Total current liabilities

 

 

658,267

 

 

 

585,665

 

Long-term debt

 

 

1,044,667

 

 

 

860,654

 

Deferred credits and other non-current liabilities:

 

 

 

 

Deferred tax liabilities

 

 

353,746

 

 

 

328,112

 

Regulatory liabilities

 

 

652,977

 

 

 

636,384

 

Pension and other postretirement benefit liabilities

 

 

164,530

 

 

 

210,811

 

Derivative instruments

 

 

592

 

 

 

1,272

 

Operating lease liabilities

 

 

79,162

 

 

 

80,414

 

Other non-current liabilities

 

 

112,749

 

 

 

118,989

 

Total deferred credits and other non-current liabilities

 

 

1,363,756

 

 

 

1,375,982

 

Equity:

 

 

 

 

Common stock

 

 

602,382

 

 

 

568,066

 

Retained earnings

 

 

396,769

 

 

 

380,939

 

Accumulated other comprehensive loss

 

 

(11,207

)

 

 

(12,681

)

Total equity

 

 

987,944

 

 

 

936,324

 

Total liabilities and equity

 

$

4,054,634

 

 

$

3,758,625

 

NORTHWEST NATURAL HOLDINGS

 

 

 

 

Consolidated Statements of Cash Flows (Unaudited)

 

Three Months Ended March 31,

In thousands

 

2022

 

2021

Operating activities:

 

 

 

 

Net income

 

$

56,239

 

 

$

59,517

 

Adjustments to reconcile net income to cash provided by operations:

 

 

 

 

Depreciation

 

 

28,429

 

 

 

28,097

 

Regulatory amortization of gas reserves

 

 

1,481

 

 

 

3,634

 

Deferred income taxes

 

 

8,780

 

 

 

3,145

 

Qualified defined benefit pension plan expense

 

 

1,441

 

 

 

3,937

 

Contributions to qualified defined benefit pension plans

 

 

 

 

 

(4,540

)

Deferred environmental expenditures, net

 

 

(4,345

)

 

 

(4,270

)

Environmental remediation expense

 

 

4,703

 

 

 

3,777

 

Asset optimization revenue sharing bill credits

 

 

(41,102

)

 

 

(9,053

)

Other

 

 

6,325

 

 

 

6,134

 

Changes in assets and liabilities:

 

 

 

 

Receivables, net

 

 

38,664

 

 

 

1,044

 

Inventories

 

 

23,885

 

 

 

16,454

 

Income and other taxes

 

 

14,436

 

 

 

22,975

 

Accounts payable

 

 

(16,487

)

 

 

(2,329

)

Deferred gas costs

 

 

11,728

 

 

 

(28,912

)

Asset optimization revenue sharing

 

 

(646

)

 

 

34,633

 

Decoupling mechanism

 

 

4,434

 

 

 

656

 

Other, net

 

 

3,072

 

 

 

2,166

 

Cash provided by operating activities

 

 

141,037

 

 

 

137,065

 

Investing activities:

 

 

 

 

Capital expenditures

 

 

(68,514

)

 

 

(65,702

)

Acquisitions, net of cash acquired

 

 

 

 

 

(42

)

Proceeds from the sale of assets

 

 

195

 

 

 

1,960

 

Other

 

 

(1,431

)

 

 

(91

)

Cash used in investing activities

 

 

(69,750

)

 

 

(63,875

)

Financing activities:

 

 

 

 

Proceeds from common stock issued, net

 

 

9,938

 

 

 

 

Repayment of commercial paper, maturities greater than three months

 

 

 

 

 

(100,000

)

Changes in other short-term debt, net

 

 

(57,000

)

 

 

31,700

 

Cash dividend payments on common stock

 

 

(14,452

)

 

 

(13,858

)

Other

 

 

(1,250

)

 

 

(974

)

Cash used in financing activities

 

 

(62,764

)

 

 

(83,132

)

Increase (decrease) in cash, cash equivalents and restricted cash

 

 

8,523

 

 

 

(9,942

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

27,120

 

 

 

35,454

 

Cash, cash equivalents and restricted cash, end of period

 

$

35,643

 

 

$

25,512

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

Interest paid, net of capitalization

 

$

7,977

 

 

$

8,976

 

Income taxes paid, net of refunds

 

 

773

 

 

 

800

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash:

 

 

 

 

Cash and cash equivalents

 

$

24,325

 

 

$

17,907

 

Restricted cash included in other current assets

 

 

11,318

 

 

 

7,605

 

Cash, cash equivalents and restricted cash

 

$

35,643

 

 

$

25,512

 

 

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