NW Natural Holdings' Net Income Jumps to $93.9 Million in 2023

By Tamara Parker • Friday, February 23 10:02 • Permanent Link

NW Natural Holdings Reports Fourth Quarter and Full Year 2023 Results - NW Natural Holdings (NYSE: NWN) reported a net income of $93.9 million ($2.59 per share) for 2023, compared to $86.3 million ($2.54 per share) for 2022. Invested $327.3 million in utility systems to enhance reliability and resiliency. Added over 15,000 gas and water utility connections in the last 12 months, driven by strong water acquisitions and organic growth. Ranked second in the west for customer satisfaction among large utilities in the 2023 J.D. Power Gas Utility Residential Customer Satisfaction Study. Filed an Oregon general rate case requesting a $154.9 million revenue requirement increase. Signed agreements for exclusive rights to construct a renewable natural gas (RNG) facility at Waste Management's landfill in Washington. Reduced residential rates in Oregon by 9% beginning Nov. 1, 2023. Closed four water utility acquisitions in 2023 and launched the water services business. Recognized as one of the 2023 World's Most Ethical Companies® by Ethisphere for the second consecutive year. * Increased the dividend for the 68th consecutive year to an annual indicated dividend rate of $1.95 per share.

2024 Outlook and Long-Term Targets Initiated 2024 earnings guidance in the range of $2.20 to $2.40 per share and reaffirmed a long-term earnings per share growth rate target of 4% to 6% from 2022 through 2027. Expects substantial investments in gas and water utility systems to support continued safe and reliable service for customers in 2024. * Anticipates NW Natural capital expenditures for 2024 to be in the range of $350 million to $400 million.

Regulatory Filings and Agreements Filed a request for a general rate increase with the Oregon Public Utility Commission for a $154.9 million annual revenue requirement increase. Signed an agreement with Waste Management for exclusive rights to construct and operate an RNG facility in Washington for a term of 20 years.

Financial Highlights Generated $279.9 million in operating cash flow and invested $327.3 million in natural gas utility capital expenditures in 2023. Net cash provided by financing activities was $64.2 million for 2023.

The market has reacted to these announcements by moving the company's shares -7.3% to a price of $36.85. For more information, read the company's full 8-K submission here.

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