Northwest Natural Company (NWN) Investor presentation summary

Business overview and growth strategy

• Operates regulated utilities in gas, water, and wastewater across six states, serving over 2 million people through 810,000 gas meters and 80,000 water connections.

• Pursues both organic and inorganic growth, with a robust capital investment plan of $2.6–2.9 billion by 2030.

• Targets long-term EPS CAGR of 4–6%, with potential to reach 5–7% if the MX3 gas storage project proceeds.

• Strategic focus includes regulatory outcomes, expanding storage, capturing Texas growth, and water platform investments.

• Transitioned from a single-state to a multi-state utility, enhancing earnings growth and stability.

Financial performance and capital allocation

• 2025 net income: $124.2M (gas), $13.7M (SiEnergy), $14.2M (water); 95% of revenues from utility operations.

• Expects 4–6% EPS CAGR and 6–8% consolidated rate base CAGR from 2026–2030.

• Capital expenditures of $2.6–2.9 billion planned through 2030, funded by a mix of cash from operations, debt, and equity.

• Maintains strong balance sheet with $590M liquidity and investment-grade credit ratings.

• Nearly 70-year legacy of consistent dividend growth, targeting a payout ratio of 55–65%.

Utility operations and regulatory environment

• Largest local gas distributor in the Pacific Northwest, recognized for safety and customer service.

• Gas storage assets provide reliability and support for renewables, with expansion potential (MX3 project targeting 4–5 Bcf capacity).

• Proven regulatory strategy with consistent rate case cadence and mechanisms for timely cost recovery.

• Texas operations (SiEnergy) benefit from a constructive regulatory environment and rapid customer growth in the Texas Triangle.

• Water utility segment has grown through 35 acquisitions since 2018, serving 200,000 people and targeting fragmented markets.