Northwest Natural's Q2 2025: Contradictions in SiEnergy Growth and Water Segment Outlook

SiEnergy growth and focus, water segment outlook and rate case activity, SiEnergy growth and potential, water acquisition strategy and growth are the key contradictions discussed in Northwest Natural Holding Company's latest 2025Q2 earnings call.



Strong Financial Performance and Customer Growth:
- Northwest Natural Holdings reported adjusted net income of $2.28 per share in the first half of 2025, compared to net income of $1.60 per share for the same period last year, with a combined utility customer growth rate of 10.6%.
- This growth was driven by strong performance in the gas utilities in Texas and a significant contribution from Northwest Natural Water.

SiEnergy's Expansion and Backlog Growth:
- SiEnergy, the gas utility in Texas, posted a sizable increase to its customer backlog, now with signed contracts representing over 217,000 future meters.
- The backlog includes meters from the acquisition of Hughes Gas Resources, with Pines Holdings adding approximately 7,000 connections northeast of Houston with a contracted backlog of 12,000 meters.

Northwest Natural Gas Utility Rate Case Settlement:
- Northwest Natural Gas Utility reached a settlement in its Oregon general rate case, resulting in a revenue requirement increase of $21.3 million, a 50-50 capital structure, an ROE of 9.5%, and an increase in rate base to $2.2 billion.
- The settlement is expected to lead to a relatively modest 2.5% rate increase, with residential customers paying approximately the same as they did 20 years ago.

Northwest Natural Water's Investment and Rate Cases:
- Northwest Natural Water's CapEx plan for 2025 is robust, focusing on infrastructure replacement and treatment facility improvements.
- The company is working on multiple rate cases, including in Idaho, Washington, and Oregon, to recover investments and ensure long-term earnings prospects.