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NW Natural Holdings Q3 2025 Earnings Call November 5, 2025
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Investor Information Company Information NW Natural Holdings 250 SW Taylor Street Portland, OR 97204 nwnaturalholdings.com Nikki Sparley Director, Investor Relations and Treasury (503) 721-2530 nikki.sparley@nwnatural.com FORWARD LOOKING STATEMENTS 2 This and other presentations made by NW Natural Holdings from time to time, may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipates," "assumes," “continues,” “could,” "intends," "plans," "seeks," "believes," "estimates," "expects,“ “forecasts”, "will" and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, objectives, assumptions, estimates, expectations, forecasts, outlooks, timing, goals, strategies, commitments, future events, financial positions, financial performance, investments, valuations, timing and amount of capital expenditures, targeted capital structure, risks, risk profile, stability, acquisitions and timing, approval, completion and integration thereof, the likelihood and success associated with any transaction, business synergies and strategic fit, utility system, technology and infrastructure investments, system modernization, reliability and resiliency, global, national and local economies, economic and GDP growth, customer and business growth, continued expansion of service territories, rate base growth, customer backlog, growth opportunities, customer satisfaction ratings, weather, performance and service during weather events, customer rates or rate recovery and the timing and magnitude of potential rate changes and the potential outcome of rate cases, environmental remediation cost recoveries, environmental initiatives, decarbonization and the role of natural gas and the gas delivery system, including decarbonization goals and timelines, energy efficiency measures, use of renewable sources, renewable natural gas purchases, production levels, projects, investments and other renewable initiatives, and timing, magnitude and completion thereof, unregulated renewable natural gas strategy and initiatives, hydrogen projects or investments and timing, magnitude, approvals and completion thereof, procurement of renewable natural gas or hydrogen for customers, technology and policy innovations, strategic goals and visions, water, wastewater and water services acquisitions, personnel additions, partnerships, investment strategy, regulatory strategy, and financial effects of water, wastewater and water services acquisitions, expected growth and safety benefits of facility upgrade investments, operating plans of third parties, financial targets, financial results, including estimated income, availability and sources of liquidity, capital markets, financing transactions, expenses, positions, revenues, returns, cost of capital, timing, and earnings, earnings guidance and estimated future growth rates, FFO/debt ratios, credit ratings, debt and equity issuances and timing, future dividends, commodity costs and sourcing, asset management activities, regulatory environment, performance, timing, outcome, or effects of regulatory proceedings or mechanisms or approvals, rate case strategy and execution, regulatory prudence reviews, anticipated regulatory actions or filings, accounting treatment of future events, economic and political conditions, effects of legislation or changes in laws or regulations, impact of the current U.S. presidential administration and Congress, inflation, the imposition or announcement of tariffs or trade restrictions, potential impacts of the federal budget or debt ceiling matters, including the current U.S. government shutdown, geopolitical uncertainty and other statements that are other than statements of historical facts. Forward-looking statements are based on current expectations and assumptions regarding its business, the economy, geopolitical f actors, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. You are therefore cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future operational, economic or financial performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed by reference to the factors described in Part I, Item 1A "Risk Factors", and Part II, Item 7 and Item 7A "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosure about Market Risk" in the most recent Annual Report on Form 10-K and in Part I, Items 2 and 3 "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk", and Part II, Item 1A, "Risk Factors", in the quarterly reports filed thereafter, which, among others, outline legal, regulatory and legislative risks, financial, macroeconomic and geopolitical risks, growth and strategic risks, operational risks, business continuity and technology risks, environmental risks and risks related to our water and renewables businesses. All forward-looking statements made in this presentation and all subsequent forward-looking statements, whether written or oral and whether made by or on behalf of NW Natural Holdings, are expressly qualified by these cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is made, and NW Natural Holdings undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. New factors emerge from time to time and it is not possible to predict all such factors, nor can it assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements.
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Leadership Presenting Today Financial and Guidance Update • Q3 and YTD Q3 2025 earnings drivers • Guidance 2025 and long-term outlook • Liquidity and financing Business Update • NWN Gas Utility • SiEnergy Gas Utility • NWN Water Utility • NWN Renewables Justin B. Palfreyman President & CEO Ray Kaszuba SVP & CFO 3
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4Based on Strong Performance, Expect to be Above Midpoint of 2025 Guidance Range Q3 2025 Update (1) See Non-GAAP Information & Guidance Reconciliation in appendix. (2) Adjusted EPS growth forecasted for period 2025 – 2030 compounded annually; EPS growth rate uses midpoint of 2025 adjusted EPS guidance range as base year. NW Natural Holdings does not provide a reconciliation of adjusted EPS growth rate target to the most directly comparable GAAP measures due to the inherent difficulty in forecasting and quantifying certain significant items. These items are uncertain, depend on various fa ctors and could have a material impact on GAAP-reported results for the relevant period. • Achieved strong financial results for YTD Q3 2025 with adjusted EPS1 of $1.52 vs. $0.88 EPS for prior year • Invested over $330 million in our gas and water systems in the first nine months of 2025 • Added over 95,000 gas and water utility connections in the last 12 months for a combined growth rate of 10.9% as of September 30, 2025, mainly driven by Texas acquisitions • Expect results to be above the midpoint of 2025 adjusted EPS range of $2.75 - $2.951 • Long-term EPS growth rate target of 4% - 6%1,2 • Increased our dividend for the 70th consecutive year 4
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Supports NWN’s Goal of Continuing to Deliver Strong, Consistent Long -Term EPS Growth of 4 -6% Update on 2025 Initiatives NWN is well -positioned to deliver on its financial and strategic priorities in 2025 1 Pursue Constructive Gas Rate Case Outcomes • Received Oregon general rate case order providing a $20.7 million revenue requirement increase and a 9.5% ROE. New customer rates began on Oct. 31, 2025 • Filed multi-year general rate case request in Washington providing a total $42.4 million revenue requirement increase over three years and a 10.2% ROE starting in year 2. Expect new rates to be effective Aug. 1, 2026 • Allows for strong return on invested capital 2 Capture SiEnergy Growth • Completed acquisition of Pines Gas (formerly Hughes Gas Resources), adding scale to SiEnergy • Combined customer backlog has grown to more than 240,000 3 Invest in Water Platform and Continue Constructive Rate Case Cadence • Rapidly growing water and wastewater utility platform through both organic growth and acquisitions • Completed rate cases in 2025 for safety investments that support earnings going forward 4 RNG Facilities Produce Increasing Earnings and Cash Flows • Facilities have been producing steady earnings and cash flows in 2025 • Expect facilities to provide steady earnings and cash flows going forward 5
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Solid Results Primarily Reflect Strong Utility Performance Q3 2025 Financial Results • $0.04 increase in NWN Gas EPS with results largely in line with prior year • $0.04 increase in SiEnergy EPS reflecting first year of results after the acquisition on Jan. 7, 2025 and Pines acquisition on June 2, 2025 • $0.04 increase in NWN Water EPS primarily due to new rates at Foothills water and wastewater utility in Arizona and incremental earnings from the ICH utilities after their acquisition in September 2024 • $0.14 higher loss per share from Other primarily related to higher interest expense at NW Natural Holding Company Key Drivers 6 (1) Segment EPS is a non-GAAP financial measure, which takes segment net income calculated in accordance with GAAP and divides i t by the diluted shares outstanding of NW Natural Holdings. See "Non-GAAP Financial Measures" and “Non-GAAP Segment EPS Reconciliation” for additional information. (2) Adjusted 2025 other and consolidated EPS are non-GAAP financial measures and exclude the effects of transaction and business development costs including the Pines acquisition. See "Non-GAAP Financial Measures" and "Reconciliation to GAAP" for additional information. Non -GAAP financial measures should not be considered a substitute for, or superior to, measures calculated in accordance with U.S. GAAP. Non -GAAP financial measures are used to analyze our financial performance because we believe they provide useful information to our investors and creditors in evaluating our financial condition and results of operation s. Q3 2024 EPS ($0.71) NWN Gas Utility $0.04 SiEnergy Gas Utility $0.04 NWN Water Utility $0.04 Other ($0.14) Q3 2025 Adjusted EPS ($0.73) Q3 2025 vs. Q3 2024 Adjusted EPS1,2
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Strong Results Across Our Businesses YTD 2025 Financial Results • $0.58 increase in NWN Gas EPS primarily due to new rates in Oregon effective Nov. 1, 2024 • $0.20 increase in SiEnergy EPS reflecting first year of results after the acquisition on Jan. 7, 2025 and Pines acquisition on June 2, 2025 • $0.14 increase in NWN Water EPS primarily due to new rates at Foothills water and wastewater utility in Arizona and incremental earnings from the ICH utilities after their acquisition in September 2024 • $0.28 higher loss per share from Other primarily related to higher interest expense at NW Natural Holding Company Key Drivers 7 (1) Segment EPS is a non-GAAP financial measure, which takes segment net income calculated in accordance with GAAP and divides i t by the diluted shares outstanding of NW Natural Holdings. See "Non-GAAP Financial Measures" and “Non-GAAP Segment EPS Reconciliation” for additional information. (2) Adjusted 2025 other and consolidated net income are non-GAAP financial measures and exclude transaction and business development costs including the effects of SiEnergy and Pines acquisition costs. See "Non-GAAP Financial Measures" and "Reconciliation to GAAP" for additional information. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures calculated in accor dance with U.S. GAAP. Non-GAAP financial measures are used to analyze our financial performance because we believe they provide useful information to our investors and creditors in evalua ting our financial condition and results of operations. NWN Gas Utility $0.58 SiEnergy Gas Utility $0.20 NWN Water Utility $0.14 Other ($0.28) YTD Q3 2024 EPS $0.88 YTD Q3 2025 Adjusted EPS $1.52 YTD Q3 2025 vs. YTD Q3 2024 Adjusted EPS1,2
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Growth Outlook Reaffirmed • Expecting results to be above the midpoint of our reaffirmed adjusted 1 2025 EPS guidance range of $2.75 – $2.95 • Expect SiEnergy and NWN Water to each provide about $0.25 – $0.30 annual adjusted 2025 EPS 1 • Long-term EPS growth target of 4% – 6%2 from the midpoint of the 2025 adjusted EPS guidance range 1 • Consolidated customer growth of 2.0% – 2.5% expected in 2025 • Strong and growing dividend 3 265 263 41 29 29 YTD Q3 2024 YTD Q3 2025 NWN Gas Company SiEnergy Gas Utility NWN Water Utility $294 $333 8 2025 Cap -Ex On Track Annual Guidance $450 – $500 Million (1) See “Non-GAAP Financial Measures & Guidance Reconciliation” in appendix. (2) Adjusted EPS growth forecasted for period 2025 – 2030 compounded annually; EPS growth rate uses midpoint of 2025 adjusted EPS guidance range as base year. (3) Future dividends are subject to Board of Directors discretion and approval. Key Guidance Targets Amounts in Millions
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Expect to Finance the Business Maintaining a Strong Balance Sheet Strong Balance Sheet and Liquidity Equity • Issued $48 million of equity YTD Q3 2025 • Done with ATM issuances in 2025 and issued less equity than expected with original guidance range of $65 – $75 million for 2025 Debt • Completed SiEnergy acquisition permanent financing with issuance of $325 million Junior Subordinated Debentures in March 2025 • No material debt maturities remaining in 2025 • Issued inaugural, investment grade bonds totaling $185 million at SiEnergy in August 2025, successfully refinancing existing debt FFO/Debt target • ~14% for NW Natural Holdings1 over the long term (1) S&P rating agency FFO/Adjusted Debt calculation Cash $32 NW Natural Gas Line of Credit $336 NW Natural Holdings Line of Credit $69 9 Available Liquidity $437 Million As of September 30, 2025 (In millions)
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Appendix 11
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Non-GAAP Financial Measures & Guidance Reconciliation 2025 EPS Guidance Reconciliation Table GAAP EPS Guidance $2.59 to $2.79 Transaction and Business Development Costs1 0.16 Adjusted EPS Guidance $2.75 to $2.95 12 Management uses "adjusted net income", "adjusted earnings per share," "adjusted segment net loss," "segment earnings per share” and "adjusted segment earnings per share," each of which are non-GAAP financial measures, when evaluating NW Natural Holdings' overall performance. Management uses non- GAAP measures in making operating decisions because we believe those measures provide meaningful supplemental information regarding our earning potential and performance for management by excluding certain expenses and charges that may not be indicative of our core business operating results and can affect the comparison of period-over-period results. These adjustments may include transaction and business development costs primarily consisting of professional fees including legal, accounting, financial and other professional fees incurred in connection with business combinations and business development activities. In addition to presenting the results of operations and earnings amounts in total, certain financial measures are expressed in cents per share, which are non-GAAP financial measures. All references to EPS are on the basis of diluted shares. Such non-GAAP financial measures are used to analyze our financial performance because we believe they provide useful information to our investors and creditors in evaluating our financial condition and results of operations. Our non-GAAP financial measures should not be considered a substitute for, or superior to, measures calculated in accordance with U.S. GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than how such measures are calculated in this report, limiting the usefulness of those measures for comparative purposes. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the following tables. (1) Effect on EPS assumes transaction and business development costs including the effects of SiEnergy and Pines (formerly Hughes). Estimated costs of $6.7 million after -tax for 2025, average diluted shares of 40.9 million and an income tax rate of 26.5%.
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Non-GAAP Adjusted EPS Reconciliation Three Months Ended Sept. 30, Nine Months Ended Sept. 30, 2025 2024 2025 2024 Consolidated GAAP net income (loss) per share $(0.73) $(0.71) $1.36 $0.88 Transaction and business development costs - - 0.22 - Income tax effect1 - - (0.06) - Adjusted net income (loss) per share $(0.73) $(0.71) $1.52 $0.88 Other GAAP net income (loss) per share ($0.13) $0.01 ($0.48) $(0.04) Transaction and business development costs - - 0.22 - Income tax effect1 - - (0.06) - Adjusted net income (loss) per share $(0.13) $0.01 ($0.32) $(0.04) 13 (1) SiEnergy transaction expenses were recognized in the first quarter of 2025. Business development costs and Pines (formerly Hughes) tra nsaction expenses were recognized in the second and third quarter of 2025. Tax effect of adjustment was calculated using a combined federal and statutory rate of 26.5%.
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Non-GAAP Segment EPS Reconciliation 14 Three Months Ended Sept. 30, Nine Months Ended Sept. 30, 2025 2024 Change 2025 2024 Change Adjusted net income (loss) per share: NWN Gas Utility $(0.75) $(0.79) 0.04 $1.42 $0.84 0.58 SiEnergy Gas Utility 0.04 - 0.04 0.20 - 0.20 NWN Water Utility 0.11 0.07 0.04 0.22 0.08 0.14 Other (0.13) 0.01 (0.14) (0.32) (0.04) (0.28) Consolidated $(0.73) $(0.71) (0.02) $1.52 $0.88 0.64