NORTHWEST NATURAL GAS CO

CIK:0000073020|SEC Filings

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Operating revenues [Abstract]
Operating revenues	$ 243,552	$ 236,194	$ 733,955	$ 730,478
Operating expenses:
Cost of gas	61,753	64,503	219,902	237,494
Operations and maintenance	80,354	79,065	163,463	162,748
Environmental remediation	2,431	2,296	8,756	8,549
General taxes	12,216	12,076	28,559	27,847
Revenue taxes	8,400	8,283	26,500	27,688
Depreciation	44,212	41,535	88,346	82,035
Other operating expenses	1,029	1,225	2,404	2,552
Total operating expenses	210,395	208,983	537,930	548,913
Income from operations	33,157	27,211	196,025	181,565
Other income (expense), net	1,405	(160)	1,917	(2,676)
Interest expense, net	33,352	30,491	66,704	59,886
Income (loss) before income taxes	1,210	(3,440)	131,238	119,003
Income tax expense (benefit)	610	(940)	33,149	33,587
Net income (loss)	600	(2,500)	98,089	85,416
Other comprehensive income (loss):
Amortization of non-qualified employee benefit plan liability, net of taxes $33 and $25 for the three months ended and $66 and $50 for the six months ended June 30, 2026 and 2025, respectively	91	174	182	349
Unrealized gain (loss) on interest rate swaps, net of taxes $(4) and $— for the three months ended and $(10) and $47 for the six months ended June 30, 2026 and 2025, respectively	12	(1)	42	(131)
Comprehensive income (loss)	$ 703	$ (2,327)	$ 98,313	$ 85,634
Average common shares outstanding:
Basic (in shares)	42,086	40,482	41,898	40,364
Diluted (in shares)	42,178	40,482	42,014	40,429
Earnings (loss) per share of common stock:
Basic (in dollars per share)	$ 0.01	$ (0.06)	$ 2.34	$ 2.12
Diluted (in dollars per share)	$ 0.01	$ (0.06)	$ 2.33	$ 2.11
NW Natural
Operating revenues [Abstract]
Operating revenues	$ 204,802	$ 200,807	$ 638,698	$ 649,620
Operating expenses:
Cost of gas	53,326	56,939	193,470	216,375
Operations and maintenance	66,515	63,039	137,045	130,805
Environmental remediation	2,431	2,296	8,756	8,549
General taxes	11,641	11,234	27,678	26,213
Revenue taxes	7,906	7,832	24,943	26,397
Depreciation	39,592	36,564	79,036	72,600
Other operating expenses	452	515	1,145	1,261
Total operating expenses	181,863	178,419	472,073	482,200
Income from operations	22,939	22,388	166,625	167,420
Other income (expense), net	651	(698)	547	(3,447)
Interest expense, net	17,426	15,128	35,104	30,708
Income (loss) before income taxes	6,164	6,562	132,068	133,265
Income tax expense (benefit)	2,231	1,638	34,386	37,302
Net income (loss)	3,933	4,924	97,682	95,963
Other comprehensive income (loss):
Amortization of non-qualified employee benefit plan liability, net of taxes $33 and $25 for the three months ended and $66 and $50 for the six months ended June 30, 2026 and 2025, respectively	91	174	182	349
Comprehensive income (loss)	$ 4,024	$ 5,098	$ 97,864	$ 96,312

Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities:
Net income	$ 98,089	$ 85,416
Adjustments to reconcile net income to cash provided by operations:
Depreciation	88,346	82,035
Amortization	12,199	12,136
Deferred income taxes	28,776	28,054
Qualified defined benefit pension plan expense	4,615	5,437
Contributions to qualified defined benefit pension plans	(6,450)	(5,510)
Deferred environmental expenditures, net	(14,329)	(11,720)
Environmental remediation expense	8,756	8,549
Asset optimization revenue sharing bill credits	(23,156)	(15,549)
Other	6,483	7,794
Changes in assets and liabilities:
Receivables, net	118,552	121,551
Inventories	(15,364)	(4,382)
Income and other taxes	12,853	8,505
Accounts payable	(19,663)	11,582
Deferred gas costs	(58,483)	(45,247)
Asset optimization revenue sharing	8,760	10,097
Decoupling mechanism	(36,201)	(14,793)
Cloud-based software	(4,957)	(3,819)
Regulatory accounts	18,606	1,612
Other, net	(1,584)	22
Cash provided by operating activities	225,848	281,770
Investing activities:
Capital expenditures	(234,950)	(222,664)
Acquisitions, net of cash acquired	0	(331,329)
Purchase of equity method investment	(1,000)	(1,000)
Other	974	(894)
Cash used by investing activities	(234,976)	(555,887)
Financing activities:
Proceeds from common stock issued, net	22,182	24,384
Long-term debt issued	125,000	375,000
Long-term debt retired	(55,292)	(3,022)
Changes in other short-term debt, net	(50,700)	(17,692)
Cash dividend payments on common stock	(39,866)	(38,180)
Payment of financing fees	(1,069)	(4,385)
Shares withheld for tax purposes	(1,988)	(1,537)
Other	(372)	(1,769)
Cash (used by) provided by financing activities	(2,105)	332,799
(Decrease) increase in cash, cash equivalents and restricted cash	(11,233)	58,682
Cash, cash equivalents and restricted cash, beginning of period	41,077	47,982
Cash, cash equivalents and restricted cash, end of period	29,844	106,664
Supplemental disclosure of cash flow information:
Interest paid, net of capitalization	63,504	52,557
Income taxes paid, net of refunds	3,300	8,079
NW Natural
Operating activities:
Net income	97,682	95,963
Adjustments to reconcile net income to cash provided by operations:
Depreciation	79,036	72,600
Amortization	10,589	11,327
Deferred income taxes	25,478	25,772
Qualified defined benefit pension plan expense	4,615	5,437
Contributions to qualified defined benefit pension plans	(6,450)	(5,510)
Deferred environmental expenditures, net	(14,329)	(11,720)
Environmental remediation expense	8,756	8,549
Asset optimization revenue sharing bill credits	(23,156)	(15,549)
Other	5,791	5,797
Changes in assets and liabilities:
Receivables, net	111,446	123,804
Inventories	(14,807)	(926)
Income and other taxes	12,455	13,977
Accounts payable	(21,656)	(2,512)
Deferred gas costs	(58,483)	(45,247)
Asset optimization revenue sharing	8,760	10,097
Decoupling mechanism	(36,201)	(14,793)
Cloud-based software	(4,949)	(3,819)
Regulatory accounts	19,327	1,638
Other, net	288	2,126
Cash provided by operating activities	204,192	277,011
Investing activities:
Capital expenditures	(166,603)	(177,122)
Other	1,257	(947)
Cash used by investing activities	(165,346)	(178,069)
Financing activities:
Cash contributions received from parent	0	135,000
Changes in other short-term debt, net	(9,990)	(136,510)
Cash dividend payments on common stock	(40,028)	(38,160)
Shares withheld for tax purposes	(1,988)	(1,537)
Other	(2)	(236)
Cash (used by) provided by financing activities	(52,008)	(41,443)
(Decrease) increase in cash, cash equivalents and restricted cash	(13,162)	57,499
Cash, cash equivalents and restricted cash, beginning of period	33,726	29,428
Cash, cash equivalents and restricted cash, end of period	20,564	86,927
Supplemental disclosure of cash flow information:
Interest paid, net of capitalization	32,488	28,718
Income taxes paid, net of refunds	$ 8,600	$ 8,000

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025	Jun. 30, 2025
Current assets:
Cash and cash equivalents	$ 24,234	$ 36,673	$ 102,579
Accounts receivable	83,150	121,875	78,865
Accrued unbilled revenue	26,484	97,238	27,943
Allowance for uncollectible accounts	(3,855)	(4,068)	(3,210)
Regulatory assets	168,092	143,745	103,914
Derivative instruments	4,338	3,922	7,210
Inventories	142,887	127,697	113,720
Other current assets	53,902	75,850	35,095
Total current assets	499,232	602,932	466,116
Non-current assets:
Property, plant, and equipment	5,844,802	5,640,435	5,415,697
Less: Accumulated depreciation	1,318,811	1,288,422	1,269,274
Total property, plant, and equipment, net	4,525,991	4,352,013	4,146,423
Regulatory assets	640,656	424,194	372,668
Derivative instruments	3,430	366	4,077
Other investments	68,998	80,676	82,223
Operating lease right of use asset, net	67,950	68,224	69,555
Assets under sales-type leases	119,425	121,470	123,588
Goodwill	371,614	370,815	370,889
Other non-current assets	144,486	146,351	151,024
Total non-current assets	5,942,550	5,564,109	5,320,447
Total assets	6,441,782	6,167,041	5,786,563
Current liabilities:
Short-term debt	121,289	171,989	157,396
Current maturities of long-term debt	125,685	160,627	141,541
Accounts payable	135,525	175,566	116,819
Taxes accrued	13,031	18,123	11,530
Interest accrued	27,326	26,121	25,279
Regulatory liabilities	116,034	137,974	130,944
Derivative instruments	36,508	63,631	25,977
Operating lease liabilities	3,424	3,228	2,486
Other current liabilities	68,265	79,186	71,895
Total current liabilities	647,087	836,445	683,867
Long-term debt	2,376,685	2,272,202	2,086,650
Deferred credits and other non-current liabilities:
Deferred tax liabilities	470,623	437,467	426,827
Regulatory liabilities	779,458	758,407	737,194
Pension and other postretirement benefit liabilities	105,106	112,139	125,019
Derivative instruments	17,541	14,039	7,908
Operating lease liabilities	74,782	74,986	76,749
Other non-current liabilities	411,205	186,280	183,111
Total deferred credits and other non-current liabilities	1,858,715	1,583,318	1,556,808
Commitments and contingencies (Note 16)
Equity:
Common stock - no par value; authorized 100,000,000 shares; issued and outstanding 42,093,292, 40,909,610, and 41,563,577 at June 30, 2026 and 2025, and December 31, 2025, respectively	1,071,786	1,044,000	1,017,403
Retained earnings	492,032	435,823	448,517
Accumulated other comprehensive loss	(4,523)	(4,747)	(6,682)
Total equity	1,559,295	1,475,076	1,459,238
Total liabilities and equity	6,441,782	6,167,041	5,786,563
NW Natural
Current assets:
Cash and cash equivalents	14,979	29,347	82,867
Accounts receivable	64,691	102,165	62,557
Accrued unbilled revenue	20,808	86,600	21,609
Receivables from affiliates	1,126	997	1,645
Allowance for uncollectible accounts	(2,474)	(3,048)	(2,574)
Regulatory assets	167,442	143,135	103,190
Derivative instruments	4,338	3,922	7,182
Inventories	133,952	119,319	105,663
Other current assets	40,657	61,024	25,109
Total current assets	445,519	543,461	407,248
Non-current assets:
Property, plant, and equipment	5,130,446	5,000,329	4,860,664
Less: Accumulated depreciation	1,269,895	1,256,289	1,236,148
Total property, plant, and equipment, net	3,860,551	3,744,040	3,624,516
Regulatory assets	633,188	419,847	370,536
Derivative instruments	3,430	366	4,077
Other investments	48,296	61,049	63,024
Operating lease right of use asset, net	64,248	65,650	66,965
Assets under sales-type leases	119,425	121,470	123,587
Other non-current assets	91,607	93,235	97,728
Total non-current assets	4,820,745	4,505,657	4,350,433
Total assets	5,266,264	5,049,118	4,757,681
Current liabilities:
Short-term debt	0	9,990	0
Current maturities of long-term debt	74,972	54,948	29,997
Accounts payable	101,936	138,931	90,226
Payables to affiliates	2,853	2,354	8,096
Taxes accrued	9,948	15,682	9,836
Interest accrued	16,191	15,399	15,109
Regulatory liabilities	115,871	137,908	130,772
Derivative instruments	36,508	63,578	25,977
Operating lease liabilities	2,494	2,515	1,731
Other current liabilities	65,646	75,667	68,353
Total current liabilities	426,419	516,972	380,097
Long-term debt	1,460,280	1,479,942	1,335,736
Deferred credits and other non-current liabilities:
Deferred tax liabilities	456,049	426,093	411,710
Regulatory liabilities	769,041	748,846	736,251
Pension and other postretirement benefit liabilities	105,106	112,139	125,019
Derivative instruments	17,541	14,039	7,908
Operating lease liabilities	71,940	73,097	74,882
Other non-current liabilities	393,808	169,746	168,876
Total deferred credits and other non-current liabilities	1,813,485	1,543,960	1,524,646
Commitments and contingencies (Note 16)
Equity:
Common stock - no par value; authorized 100,000,000 shares; issued and outstanding 42,093,292, 40,909,610, and 41,563,577 at June 30, 2026 and 2025, and December 31, 2025, respectively	854,903	854,903	854,903
Retained earnings	715,700	658,046	669,002
Accumulated other comprehensive loss	(4,523)	(4,705)	(6,703)
Total equity	1,566,080	1,508,244	1,517,202
Total liabilities and equity	$ 5,266,264	$ 5,049,118	$ 4,757,681