Northwest Natural Gas (NYSE:NWN) Issues Earnings Results

Key Points

• Northwest Natural reported Q1 adjusted EPS of $2.33, missing consensus by $0.07, but reaffirmed full‑year FY2026 guidance of $2.95–$3.15 and a 4%–6% long‑term EPS growth target.
• Management highlighted the $300M MX‑3 storage expansion to add 4–5 BCF under 25‑year contracts (NTP targeted by end‑2027, in service 2029), which is expected to materially boost long‑term earnings and could raise growth targets if NTP is received.
• Shares slid to $48.74 intraday after the report; the company set a quarterly dividend of $0.4925 (4.0% yield) with a payout ratio of ~70.9% and plans 2026 capex of $500–$550M funded by operating cash flow plus debt and modest equity issuance.

Northwest Natural Gas (NYSE:NWN - Get Free Report) posted its quarterly earnings data on Wednesday. The utilities provider reported $2.33 earnings per share for the quarter, missing the consensus estimate of $2.40 by ($0.07), Zacks reports. Northwest Natural Gas had a net margin of 8.79% and a return on equity of 8.24%. The firm's quarterly revenue was down .8% on a year-over-year basis. During the same period last year, the company earned $2.28 earnings per share. Northwest Natural Gas updated its FY 2026 guidance to 2.950-3.150 EPS.

Here are the key takeaways from Northwest Natural Gas' conference call:

• Reaffirmed guidance: Q1 adjusted EPS was $2.33 (vs. $2.28 prior year) and the company reaffirmed full-year 2026 EPS guidance of $2.95–$3.15 and its 4%–6% long‑term EPS growth target (which would rise to 5%–7% if MX‑3 receives notice to proceed).
• Regulatory progress is active but outcomes remain pending: a constructive multi‑party settlement was filed in Washington (first‑year revenue increase of $20.1M, ROE 9.5%, 50/50 capital structure), C Energy filed a Texas rate case seeking ~$12M of additional revenue and GRIP factors, and Oregon’s multi‑year framework may not be resolved until 2027 while an alternative 1.5% rate mechanism was filed for Oct. 2026.
• MX‑3 storage project: A $300M FERC‑regulated expansion to add 4–5 BCF of capacity under 25‑year contracts (NTP targeted by end of 2027, in‑service 2029) is expected to materially boost long‑term earnings once NTP is achieved.
• Strong growth in regulated platforms: C Energy delivered 16% organic customer growth with a backlog >250,000 meters and expects 15%–20% annual growth through 2030, while NW Natural Water grew customers 4.1% (organic 2.2%) and has ~10,000+ water connection backlog in Texas.
• Capital and funding plan: 2026 capex is expected at $500M–$550M funded by operating cash flow plus ~ $150M net long‑term debt and $40M–$50M equity via ATM, with ~$590M liquidity on hand and a dividend policy targeting a 55%–65% payout ratio over time.

Northwest Natural Gas Price Performance

Northwest Natural Gas stock traded down $3.96 during midday trading on Wednesday, reaching $48.74. The company's stock had a trading volume of 446,044 shares, compared to its average volume of 189,199. The firm has a market capitalization of $2.05 billion, a PE ratio of 17.53 and a beta of 0.47. Northwest Natural Gas has a fifty-two week low of $39.10 and a fifty-two week high of $55.99. The stock's 50 day simple moving average is $52.93 and its 200 day simple moving average is $49.34. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.57 and a current ratio of 0.72.

Northwest Natural Gas Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Thursday, April 30th will be issued a dividend of $0.4925 per share. This represents a $1.97 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date of this dividend is Thursday, April 30th. Northwest Natural Gas's dividend payout ratio is currently 70.86%.

Insider Activity

In related news, VP David A. Weber sold 1,700 shares of the business's stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $52.57, for a total transaction of $89,369.00. Following the sale, the vice president owned 149 shares of the company's stock, valued at approximately $7,832.93. The trade was a 91.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. In the last ninety days, insiders have sold 1,704 shares of company stock valued at $89,579. Company insiders own 0.55% of the company's stock.

Institutional Investors Weigh In On Northwest Natural Gas

Institutional investors have recently modified their holdings of the company. AQR Capital Management LLC raised its holdings in Northwest Natural Gas by 5.6% during the first quarter. AQR Capital Management LLC now owns 106,605 shares of the utilities provider's stock worth $4,554,000 after purchasing an additional 5,644 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Northwest Natural Gas by 17.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 164,729 shares of the utilities provider's stock valued at $7,037,000 after buying an additional 24,906 shares in the last quarter. Jane Street Group LLC raised its stake in shares of Northwest Natural Gas by 650.9% during the 1st quarter. Jane Street Group LLC now owns 64,966 shares of the utilities provider's stock worth $2,775,000 after buying an additional 56,314 shares during the last quarter. Cetera Investment Advisers raised its stake in shares of Northwest Natural Gas by 28.5% during the 2nd quarter. Cetera Investment Advisers now owns 6,446 shares of the utilities provider's stock worth $256,000 after buying an additional 1,428 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of Northwest Natural Gas in the 2nd quarter worth about $1,431,000. Hedge funds and other institutional investors own 75.13% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on NWN. BTIG Research reiterated a "buy" rating and set a $55.00 price target on shares of Northwest Natural Gas in a research note on Friday, January 30th. Stifel Nicolaus raised their price target on Northwest Natural Gas from $52.00 to $58.00 and gave the stock a "buy" rating in a report on Wednesday, March 4th. TD Cowen initiated coverage on Northwest Natural Gas in a research note on Thursday, April 16th. They set a "hold" rating and a $58.00 price objective for the company. Weiss Ratings upgraded Northwest Natural Gas from a "hold (c)" rating to a "buy (b-)" rating in a research note on Monday, March 2nd. Finally, Freedom Capital upgraded Northwest Natural Gas to a "hold" rating in a research note on Thursday, April 30th. Three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Northwest Natural Gas currently has an average rating of "Hold" and a consensus target price of $54.50.

About Northwest Natural Gas

Northwest Natural Gas NYSE: NWN, commonly known as NW Natural, is a publicly traded energy utility primarily engaged in the distribution of natural gas to residential, commercial and industrial customers. Headquartered in Portland, Oregon, the company operates an extensive pipeline network spanning thousands of miles across Oregon and southwest Washington. Its core business activities include gas procurement, system operation and maintenance, safety inspections and customer service support.

Dating back to the mid-19th century, Northwest Natural traces its origins to the Portland Gas Light Company, which first illuminated Portland streets with manufactured gas in 1859.

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