Here is an analogy for Northwest Natural (NWN):

• AT&T for natural gas: Like AT&T provides essential communication services over its vast network, Northwest Natural delivers essential natural gas services to homes and businesses through its extensive pipeline infrastructure, operating as a regulated utility.

• Natural Gas Distribution: Providing natural gas to residential, commercial, and industrial customers across Oregon and Southwest Washington.
• Water and Wastewater Utility Services: Operating regulated water and wastewater utilities primarily in the Pacific Northwest.

Northwest Natural (symbol: NWN) is a natural gas utility company primarily serving customers in Oregon and Southwest Washington. As a regulated utility, it sells natural gas directly to a broad base of end-users within its service territory rather than having a few "major customers" that are other companies for resale.

The company primarily serves individuals and businesses, categorizing its customers into the following groups:

• Residential Customers: These are individual households that use natural gas for heating, water heating, cooking, and other household appliances in their homes.
• Commercial Customers: This category includes various businesses, schools, hospitals, government buildings, and other non-industrial enterprises that use natural gas for space heating, water heating, and various operational needs.
• Industrial Customers: This group comprises manufacturing plants, processing facilities, and other large industrial operations that utilize natural gas as a fuel source for their production processes or for large-scale heating.

• Williams Companies, Inc. (WMB)
• TC Energy Corporation (TRP)

Justin B. Palfreyman, President and Chief Executive Officer

Justin B. Palfreyman assumed the role of President and Chief Executive Officer of NW Natural Holdings and Chief Executive Officer of NW Natural, effective April 1, 2025. He joined NW Natural in 2016, serving in various executive roles including President of NW Natural Holdings and NW Natural from May 2023 to March 2025, and previously as Senior Vice President, Strategy and Business Development. Before joining NW Natural, he was a Director in Lazard's Power, Energy & Infrastructure Group from 2009 to 2016, where he provided strategic and financial advice to corporations, institutional investors, private equity funds, and government clients. Prior to Lazard, he worked as an associate in the Infrastructure Investment Banking Group at Goldman Sachs. Mr. Palfreyman also held positions in finance, strategy, and business development at Apex Learning and Accenture. He remains president of NW Natural Water, a position he has held since 2018.

Raymond J. Kaszuba III, Senior Vice President and Chief Financial Officer

Raymond J. Kaszuba III was appointed Senior Vice President and Chief Financial Officer of NW Natural Holdings, effective August 31, 2024. Prior to joining NW Natural, he served as Interim President and previously as Vice President and Chief Financial Officer at AmeriGas, a subsidiary of UGI Corporation, from October 2022 to November 2023. Mr. Kaszuba's experience also includes serving as Treasurer of UGI Corporation and holding Senior Vice President, Finance and Treasurer (2018-2020) and Vice President and Treasurer (2015-2018) roles at Enviva, a renewable bioenergy producer. His background also includes roles in treasury, finance, and audit at ExxonMobil, Allegheny Energy, and US Bank.

Kimberly A. Heiting, Senior Vice President, Operations, and Chief Marketing Officer

Kimberly A. Heiting serves as Senior Vice President, Operations, and Chief Marketing Officer at NW Natural. She began her career at NW Natural in 1998 and has served as Senior Vice President of Operations since 2018. Her previous roles at the company include Chief Marketing & Communications Officer and Vice President of Communications. She also has prior experience at Bank of America and ALLTEL Corp.

Brody J. Wilson, Vice President, Treasurer, Chief Accounting Officer and Controller

Brody J. Wilson is the Vice President, Treasurer, Chief Accounting Officer, and Controller at NW Natural. He has held this role since 2017. Previously, Mr. Wilson was a Senior Manager for PricewaterhouseCoopers LLP. His experience at NW Natural also includes serving as Chief Accounting Officer/Controller, Director of Accounting, and Interim CFO/Chief Accounting Officer/Interim Treasurer.

Melinda B. Rogers, Vice President, Chief Human Resources and Diversity Officer

Melinda B. Rogers is the Vice President, Chief Human Resources and Diversity Officer for NW Natural. She joined NW Natural in January 2018 as Senior Director of Human Resources and previously served as Senior Manager, Organizational Effectiveness and Talent Acquisition from October 2015 to January 2018. Prior to NW Natural, Ms. Rogers was a Senior Associate at Point B, a management consulting firm, and Director of the Executive Development Center at Willamette University. She brings over 30 years of diverse leadership experience, including 14 years in various human resources roles and a decade in management positions within sales, engineering, and supply chain at companies such as Knowledge Universe, Qualcomm, and Hewlett-Packard.

• Local government initiatives, including bans or restrictions on natural gas hookups in new construction, which are being adopted or actively considered by cities and counties in the Pacific Northwest.
• State-level decarbonization goals and ongoing regulatory proceedings that explore pathways to electrify heating and other services, potentially leading to policies incentivizing or mandating conversions from natural gas to electric appliances in both new and existing buildings.
• Significant federal and state incentives, such as those provided by the Inflation Reduction Act, promoting the widespread adoption of highly efficient electric heat pumps and other electric appliances, making them increasingly competitive and preferred alternatives to natural gas for heating and water heating.

Northwest Natural (NWN) Addressable Markets:

• Natural Gas Distribution:
  • Oregon: $1.6 billion (2025)
  • Texas: $29.0 billion (2025)
  • Washington: $1.93 billion (2015)
• Water and Wastewater Utilities: $68.54 billion (U.S. market, 2025)
• Renewable Natural Gas (RNG): $6.01 billion (North America market, 2025)

Northwest Natural (NWN) is expected to drive future revenue growth over the next 2-3 years through several key strategies and market dynamics:

1. Customer Growth, particularly through acquisitions in Texas: The company anticipates organic customer growth of 2.0% to 2.5% across its utilities. Furthermore, significant revenue growth is expected from recent acquisitions, most notably SiEnergy, a high-growth gas utility in Texas, which closed in January 2025. This acquisition, along with the agreement to purchase Hughes Gas Resources, Inc., has substantially increased Northwest Natural's customer base, with a combined utility customer growth rate of 10.9% for the 12 months ended September 30, 2025. SiEnergy alone has a backlog representing over 240,000 future meters.

2. Constructive Regulatory Outcomes and Rate Increases: Northwest Natural is actively pursuing and securing favorable regulatory adjustments. New gas utility rates in Oregon became effective on November 1, 2024, and further rate increases were approved by the Oregon Public Utility Commission on October 31, 2025, increasing the revenue requirement by $20.7 million. The company also filed a multi-year general rate case in Washington, seeking revenue increases over three years starting August 1, 2026. Additionally, new rates at water and wastewater utilities, particularly in Arizona, have contributed to increased earnings.

3. Strategic Investments in Infrastructure: Northwest Natural plans substantial capital expenditures to enhance its gas and water systems. Consolidated capital expenditures for 2025 are projected to be in the range of $450 million to $500 million, targeting projects such as modernizing end-of-life meters, system reinforcement, and gas storage upgrades. These investments, totaling over $330 million in the first nine months of 2025, are aimed at supporting customer growth, system reliability, and long-term infrastructure resilience.

4. Expansion of Water and Wastewater Utilities: The company's water segment has demonstrated strong growth, with its utility customer base expanding by 4.1% over the past year, including three small acquisitions. The water utility segment's EPS contribution nearly tripled from the first nine months of 2024 to 2025, and it is expected to contribute approximately $0.25 to $0.30 to annual adjusted EPS in 2025. The Texas water business is also showing early momentum with contracts for 3,200 future water and wastewater connections.

5. Growth from Renewable Natural Gas (RNG) and Decarbonization Initiatives: Northwest Natural is strategically focused on investments in clean energy and decarbonization. The renewables business is consistently delivering results and is identified as a strategic initiative for generating increasing earnings from RNG facilities in 2025. These initiatives are expected to tap into the growing demand for clean energy and potentially improve margins, positioning the company for future growth.

Share Repurchases

No significant share repurchase activities or authorized future repurchases by Northwest Natural have been explicitly reported within the last 3-5 years.

Share Issuance

• On April 1, 2022, Northwest Natural Holdings issued 2,875,000 shares of common stock, generating approximately $138.6 million in net proceeds.
• In August 2021, the company initiated an at-the-market (ATM) equity program to issue common stock with an aggregate gross sales price of up to $200 million, which expired in August 2024.
• Through the ATM program, the company issued $48 million in equity by September 2025.

Outbound Investments

• In 2025, Northwest Natural Holdings acquired SiEnergy and Pines gas utilities, significantly driving customer growth by adding over 95,000 gas and water utility connections.
• In 2022, the company invested $94.3 million in water and wastewater acquisitions, including the Far West utilities in Yuma, Arizona, adding 25,000 customers.
• Northwest Natural also made various water and wastewater utility acquisitions in 2020 ($38.3 million), 2021 ($14.5 million for a minority position in a water utility), 2023 (four water utility acquisitions), and 2024 ($29.8 million, including an agreement to acquire Puttman and ICH water utilities).

Capital Expenditures

• Northwest Natural's capital expenditures were $327.3 million in 2023, $394.4 million in 2024, and are expected to be between $450 million and $500 million in 2025.
• The primary focus of these expenditures includes investments in natural gas and water utility systems to support growth, safety, reliability, and technology upgrades.
• For 2025, capital expenditure focus areas include modernizing end-of-life meters, system reinforcement, and gas storage upgrades. Expected capital expenditures for NW Natural Holdings from 2025 to 2030 are projected to range from $2.5 billion to $2.7 billion.