Tyler Rakers's questions to Northwest Natural Holding Co (NWN) leadership • Q1 2025
Question
Tyler Rakers of Stifel inquired about the growth outlook for the Northwest Natural Water segment, focusing on the impact of rate cases, and asked for details on the customer backlog composition of the recent Hughes Gas acquisition in Texas.
Answer
President and CEO Justin Palfreyman explained that the water segment's Q1 strength was driven by prior rate cases and reiterated a 2025 EPS contribution target of $0.25-$0.30. He also confirmed the Hughes acquisition backlog is primarily residential and commercial, similar to SiEnergy, calling it a logical bolt-on. SVP and CFO Ray Kaszuba added that the water segment's EPS target translates to $10M-$15M in net income with a projected 10-15% EPS growth rate over the next few years.