Northwest Natural Gas (NYSE:NWN) Posts Earnings Results, Misses Estimates By $0.07 EPS

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

NWN traded up $0.47 on Friday, hitting $50.66. 101,777 shares of the stock traded hands, compared to its average volume of 285,271. Northwest Natural Gas has a 52 week low of $39.10 and a 52 week high of $55.99. The company has a current ratio of 0.80, a quick ratio of 0.57 and a debt-to-equity ratio of 1.44. The firm has a market capitalization of $2.13 billion, a PE ratio of 17.30 and a beta of 0.47. The business has a fifty day moving average price of $52.93 and a two-hundred day moving average price of $49.37.

Northwest Natural Gas Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Thursday, April 30th will be paid a dividend of $0.4925 per share. This represents a $1.97 annualized dividend and a yield of 3.9%. The ex-dividend date is Thursday, April 30th. Northwest Natural Gas’s payout ratio is currently 70.86%.

Insider Transactions at Northwest Natural Gas

In related news, VP David A. Weber sold 1,700 shares of the business’s stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $52.57, for a total transaction of $89,369.00. Following the transaction, the vice president directly owned 149 shares in the company, valued at $7,832.93. The trade was a 91.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders sold 1,704 shares of company stock worth $89,579 in the last 90 days. Insiders own 0.55% of the company’s stock.

Hedge Funds Weigh In On Northwest Natural Gas

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. State Street Corp increased its stake in Northwest Natural Gas by 6.7% during the second quarter. State Street Corp now owns 2,083,304 shares of the utilities provider’s stock valued at $82,749,000 after acquiring an additional 131,019 shares during the period. Geode Capital Management LLC increased its stake in Northwest Natural Gas by 1.7% during the fourth quarter. Geode Capital Management LLC now owns 989,578 shares of the utilities provider’s stock valued at $46,261,000 after acquiring an additional 16,297 shares during the period. Invesco Ltd. boosted its holdings in Northwest Natural Gas by 0.4% during the third quarter. Invesco Ltd. now owns 860,956 shares of the utilities provider’s stock valued at $38,683,000 after purchasing an additional 3,512 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Northwest Natural Gas by 0.3% during the fourth quarter. Dimensional Fund Advisors LP now owns 724,843 shares of the utilities provider’s stock valued at $33,879,000 after purchasing an additional 2,187 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its holdings in Northwest Natural Gas by 74.2% during the fourth quarter. Goldman Sachs Group Inc. now owns 587,016 shares of the utilities provider’s stock valued at $27,437,000 after purchasing an additional 250,025 shares in the last quarter. 75.13% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms have recently commented on NWN. Stifel Nicolaus lifted their price objective on Northwest Natural Gas from $52.00 to $58.00 and gave the stock a “buy” rating in a research note on Wednesday, March 4th. Freedom Capital upgraded Northwest Natural Gas to a “hold” rating in a research note on Thursday, April 30th. BTIG Research reiterated a “buy” rating and issued a $55.00 price objective on shares of Northwest Natural Gas in a research note on Friday, January 30th. 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, TD Cowen began coverage on Northwest Natural Gas in a research note on Thursday, April 16th. They issued a “hold” rating and a $58.00 price objective on the stock. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock 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.