Northwest Natural Gas (NYSE:NWN) Posts Earnings Results

Northwest Natural Gas (NYSE:NWN) posted its quarterly earnings results on Wednesday. The utilities provider reported $2.33 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.40 by ($0.07), Zacks reports. The company had revenue of $490.40 million during the quarter, compared to analysts’ expectations of $538.57 million. Northwest Natural Gas had a return on equity of 8.46% and a net margin of 9.56%.The company’s quarterly revenue was down .8% on a year-over-year basis. During the same period in the prior year, the business posted $2.28 EPS. 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 Stock Performance

Shares of Northwest Natural Gas stock traded up $0.55 during trading on Friday, hitting $50.74. 97,189 shares of the company’s stock were exchanged, compared to its average volume of 285,219. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.57 and a current ratio of 0.80. The business has a 50-day simple moving average of $52.93 and a 200-day simple moving average of $49.37. Northwest Natural Gas has a 52-week low of $39.10 and a 52-week high of $55.99. The stock has a market capitalization of $2.14 billion, a price-to-earnings ratio of 17.33 and a beta of 0.47.

Northwest Natural Gas Cuts Dividend

The firm also recently announced 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 annualized dividend and a dividend yield of 3.9%. The ex-dividend date of this dividend is Thursday, April 30th. Northwest Natural Gas’s dividend payout ratio (DPR) is 70.86%.

Insider Activity

In related news, VP David A. Weber sold 1,700 shares of the firm’s stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $52.57, for a total transaction of $89,369.00. Following the completion of the transaction, the vice president owned 149 shares of the company’s stock, valued at $7,832.93. This trade represents a 91.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders have sold a total of 1,704 shares of company stock worth $89,579 over the last three months. Company insiders own 0.55% of the company’s stock.

Institutional Trading of Northwest Natural Gas

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Mercer Global Advisors Inc. ADV grew its position in Northwest Natural Gas by 40.5% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 8,659 shares of the utilities provider’s stock valued at $405,000 after buying an additional 2,498 shares during the period. EP Wealth Advisors LLC acquired a new stake in Northwest Natural Gas during the fourth quarter valued at $342,000. Empowered Funds LLC acquired a new stake in Northwest Natural Gas during the fourth quarter valued at $1,017,000. XTX Topco Ltd acquired a new stake in Northwest Natural Gas during the fourth quarter valued at $607,000. Finally, VARCOV Co. acquired a new stake in Northwest Natural Gas during the fourth quarter valued at $399,000. Institutional investors and hedge funds own 75.13% of the company’s stock.

Analyst Upgrades and Downgrades

NWN has been the subject of a number of research analyst reports. Freedom Capital raised shares of Northwest Natural Gas to a “hold” rating in a report on Thursday, April 30th. BTIG Research reaffirmed a “buy” rating and issued a $55.00 price target on shares of Northwest Natural Gas in a report on Friday, January 30th. Weiss Ratings raised shares of Northwest Natural Gas from a “hold (c)” rating to a “buy (b-)” rating in a report on Monday, March 2nd. TD Cowen initiated coverage on shares of Northwest Natural Gas in a report on Thursday, April 16th. They issued a “hold” rating and a $58.00 price target for the company. Finally, Stifel Nicolaus raised their price target on shares of Northwest Natural Gas from $52.00 to $58.00 and gave the stock a “buy” rating in a report on Wednesday, March 4th. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $57.00.

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.