Here are 1-3 brief analogies for Northwest Natural (NWN):

• It's like Con Edison, but primarily for natural gas and water services in the Pacific Northwest and Texas.
• Essentially, it's the natural gas and water utility for its regions, similar to a large power and gas provider like Duke Energy.

• Natural Gas Distribution: Delivers regulated natural gas to residential, commercial, industrial, and transportation customers in Oregon and Southwest Washington.
• Gas Storage: Operates the Mist gas storage facility, contracted to other utilities and third-party marketers.
• Water Services: Provides water and wastewater services to customers in the Pacific Northwest and Texas.
• Natural Gas Asset Management: Offers services for managing natural gas assets.
• Appliance Retail: Operates a retail center for selling appliances.
• Renewable Natural Gas (RNG) Activities: Engages in non-regulated investments and activities related to renewable natural gas.

Northwest Natural (NWN) sells its natural gas and water services primarily to a broad base of end-users across different segments. Its major customers can be categorized as:

• Residential Customers: This category includes individual households and homeowners who use natural gas for heating, cooking, and other domestic purposes, as well as those receiving water and wastewater services.
• Commercial Customers: This category encompasses various businesses, offices, retail establishments, and other non-industrial enterprises that utilize natural gas for heating, water heating, and other operational needs.
• Industrial Customers: This category includes manufacturing facilities, processing plants, and other large-scale industrial operations that require significant volumes of natural gas for their production processes and heating requirements.

While Northwest Natural also provides gas storage facilities and asset management services to other utilities and third-party marketers, its core business of natural gas distribution and water services is directly supplied to these defined categories of end-users.

Justin B. Palfreyman, President and Chief Executive Officer

Mr. Palfreyman is President and Chief Executive Officer of NW Natural Holdings and Chief Executive Officer of NW Natural, effective as of April 1, 2025. He previously served as President of NW Natural Holdings and NW Natural from May 2023 to March 2025. Prior to joining NW Natural, he was a Director in Lazard, Freres & Co.'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. Before Lazard, he was an associate in the Infrastructure Investment Banking Group at Goldman Sachs in New York. He has also held various positions in finance, strategy, and business development at Apex Learning and Accenture in Seattle, Washington.

Raymond Kaszuba, Senior Vice President and Chief Financial Officer

Mr. Kaszuba was appointed Senior Vice President and Chief Financial Officer, effective August 31, 2024. He joined NW Natural Holdings from AmeriGas, where he served as Interim President and previously as Vice President and Chief Financial Officer. Prior to AmeriGas, he was Treasurer of UGI Corporation. His experience also includes roles as Senior Vice President, Finance and Treasurer at Enviva, and positions in treasury, finance, and audit at ExxonMobil, Allegheny Energy, and US Bank.

Kim Rush, President, Northwest Natural Gas Company

Ms. Rush was appointed President of Northwest Natural Gas Company, the company's largest subsidiary, effective April 1, 2025. She previously served as Senior Vice President and Chief Operating Officer from May 2023 to March 2025. Ms. Rush has been with NW Natural since 1998 and has held various significant leadership roles within the company.

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

Ms. Rogers is the Vice President, Chief Human Resources and Diversity Officer. She was appointed to this role in July 2018, having previously served as Senior Director of Human Resources since January 2018, and Senior Manager, Organizational Effectiveness and Talent Acquisition from October 2015 to January 2018 at NW Natural. Before joining NW Natural, Ms. Rogers was a Senior Associate at Point B, a management consulting firm, and Director of the Executive Development Center of Willamette University. She also held various human resources roles over 14 years at Knowledge Universe, Qualcomm, and Hewlett-Packard, and had ten years of experience in management positions in sales, engineering, and supply chain.

MardiLyn Saathoff, General Counsel, Chief Compliance Officer, and Senior Vice President, Regulatory

Ms. Saathoff serves as General Counsel, Chief Compliance Officer, and Senior Vice President, Regulatory for Northwest Natural Holding Company.

Key Risks to Northwest Natural (NWN)

1. Regulatory and Rate-Setting Risk: As a regulated natural gas and water utility, Northwest Natural's financial performance and ability to recover costs and earn a reasonable return are heavily dependent on approvals from regulatory bodies such as the Oregon Public Utility Commission (OPUC) and the Washington Utilities and Transportation Commission (WUTC). Unfavorable regulatory decisions regarding rates, allowed investments, or cost recovery could significantly impact the company's revenues, profitability, and financial stability.
2. Environmental Risks, Climate Change Impacts, and Infrastructure Integrity: Northwest Natural's operations involve the distribution of natural gas and water, which inherently carry environmental risks, including potential methane leaks from natural gas facilities and pipelines, and contamination from pipeline incidents. Such events could lead to regulatory penalties, significant remediation costs, and reputational damage. Furthermore, the company is exposed to physical risks from climate change, as extreme weather events can damage infrastructure, disrupt service, and necessitate costly upgrades to enhance resilience. Maintaining the integrity of its extensive natural gas and water pipeline networks is critical to preventing service disruptions, environmental harm, and ensuring public safety.
3. Cybersecurity Threats: As an operator of critical infrastructure, Northwest Natural faces a significant risk from cybersecurity threats. Cyberattacks could lead to operational disruptions of its natural gas and water systems, compromise sensitive customer or company data, and result in substantial financial losses, regulatory fines, and damage to its reputation. Northwest Natural explicitly identifies cybersecurity as a key risk in its enterprise risk management assessment.

The clear emerging threat is the accelerating trend of building electrification and decarbonization mandates. Governments and regulatory bodies in Northwest Natural's service territories (Oregon and Washington) are increasingly implementing policies that restrict or prohibit new natural gas hookups in buildings and incentivize existing buildings to convert to electric heating and cooking solutions (e.g., heat pumps, induction stoves). This directly threatens the core business of natural gas distribution by potentially curtailing customer growth, reducing demand from existing customers, and risking the stranding of natural gas infrastructure assets.

Here are the addressable markets for Northwest Natural's main products and services:

• Natural Gas Distribution Services: The natural gas distribution market in Oregon, a key service area for Northwest Natural, is projected to be approximately $1.6 billion in 2026. Northwest Natural serves around 2.5 million people across more than 780,000 to 800,000 meters in Oregon and Southwest Washington. For broader context, the U.S. natural gas distribution market was valued at $170.0 billion in 2024 and is expected to grow to $186.0 billion by 2032.
• Water Services: The global water utility services market was valued at approximately $72.86 billion in 2024 and is forecast to reach around $108.37 billion by 2034. North America is anticipated to lead this global market. Northwest Natural Water serves nearly 175,000 people through about 70,000 connections across five states, including the Pacific Northwest, Texas, and Arizona, as of February 2024. In Texas, a significant region for NW Natural Water, the total estimated water use was about 15 million acre-feet in 2023, with municipal water use reaching 5.2 million acre-feet in the same year. Municipal water demand in Texas is projected to increase from 5.2 million acre-feet in 2020 to 8.5 million by 2070.
• Non-regulated Renewable Natural Gas (RNG): The global renewable natural gas market was estimated at $15.17 billion in 2024 and is projected to grow to $30.13 billion by 2033. North America holds a substantial share of this market, approximately 45% in 2024. Specifically for Oregon, the state has the potential to produce 30.4 tBtu of RNG annually by 2040.
• Gas Storage: Northwest Natural owns and operates 21.6 billion cubic feet (Bcf) of underground gas storage capacity in Oregon.

Northwest Natural (NWN) anticipates several key drivers of revenue growth over the next two to three years:

1. Customer Growth and Market Expansion in Natural Gas: The company expects continued customer growth in its regulated natural gas distribution services, particularly driven by its expansion into high-growth markets like Texas through strategic acquisitions such as SiEnergy. SiEnergy is projected to achieve 15% to 20% annual customer growth through 2030. Overall, Northwest Natural added approximately 98,000 gas and water utility connections in the last 12 months, reflecting an 11.1% growth rate, primarily due to the SiEnergy acquisition. The company also anticipates 2% to 3% consolidated organic customer growth.
2. Growth in Water and Wastewater Utility Segment: Northwest Natural's water and wastewater utility platform is positioned for organic customer growth of 2% to 3% annually through 2030. This segment is bolstered by new rates in its service areas, including Arizona, and additional revenues from acquisitions, and is expected to contribute 10% to 15% of consolidated earnings per share in 2026.
3. Strategic Capital Investments and Rate Base Growth, Including Mist Gas Storage Expansion (MX3 Project): The company plans significant capital expenditures, totaling between $2.6 billion and $2.9 billion through 2030, with approximately $500 million to $550 million allocated for 2026. These investments are aimed at supporting infrastructure, safety, reliability, and growth across its utility systems, driving expected rate base growth of 6% to 8% through 2030. Additionally, the third Mist Gas Storage Expansion project (MX3) is expected to add 4-5 billion cubic feet (Bcf) of capacity with an estimated capital expenditure of $300 million. This project is backed by 25-year customer contracts and is anticipated to enhance regional reliability and long-term contracted revenues, potentially increasing the long-term EPS growth target from 4-6% to 5-7% upon completion. New gas utility rates in Oregon have also contributed to revenue.
4. Renewable Natural Gas (RNG) and Other Clean Energy Initiatives: Northwest Natural is investing in clean energy initiatives, including renewable natural gas and hydrogen strategies. The company's non-regulated business, NWN Renewables, is positioned to capitalize on the increasing demand for sustainable energy solutions, with contributions from renewable natural gas production noted in 2025.