NW Natural Holdings: A Growing Utility Stock to Watch

NW Natural Holdings (NYSE: NWN) has announced its upcoming fourth quarter and full year 2024 earnings release and conference call, scheduled for Friday, February 28, 2025. As an investor, you should pay close attention to this utility stock, as it has shown strong growth and a commitment to expanding its customer base and utility systems. Here's why NW Natural Holdings is a stock to watch:

1. Customer Growth: NW Natural Holdings has added over 15,000 gas and water utility connections in the last 12 months, representing a combined growth rate of 1.8% as of Dec. 31, 2023. This growth is mainly driven by strong water acquisitions and combined organic growth, reflecting the company's success in expanding its customer base.
2. Investment in Utility Systems: NW Natural Holdings invested $327.3 million in its utility systems in 2023 to support greater reliability and resiliency. The company owns and operates 21.6 Bcf of underground gas storage capacity in Oregon, which helps ensure a consistent supply of natural gas to its customers. NW Natural Holdings has also expanded its water distribution and wastewater services, serving over 189,000 people through approximately 76,100 meters as of 2023.
3. Diversification and Renewable Energy: NW Natural Holdings has diversified its business by entering the renewable natural gas (RNG) market through its subsidiary, NW Natural Renewables. The company signed agreements to construct an RNG facility at Waste Management's landfill in East Wenatchee, Washington, and obtain a 20-year RNG supply from the facility once constructed. NW Natural Holdings has also expanded its water services business through acquisitions, becoming the largest privately owned water utility in Oregon.
4. Regulatory Environment and Rate Increases: NW Natural Holdings has successfully navigated the regulatory environment, securing rate increases to support system investments and cost increases. The company filed an Oregon general rate case in 2024, requesting a $154.9 million revenue requirement increase to support system investments and cost increases. NW Natural Holdings has also reduced residential rates in Oregon by 9% beginning Nov. 1, 2023, related to its Purchased Gas Adjustment (PGA) mechanism, demonstrating its commitment to providing affordable and reliable energy.



In conclusion, NW Natural Holdings is a growing utility stock to watch, with a strong focus on expanding its customer base, investing in utility systems, and diversifying its business. As an investor, you should pay close attention to this stock, as its earnings release and conference call on February 28, 2025, may provide valuable insights into its continued growth and success.