Northwest Natural Holding Co (NWN) 2024 Q3 法說會逐字稿

Good morning and thank you all for attending the NW Natural Holdings Company third quarter 2024 earnings call. My name is Rica, and I will be your moderator for today. (Operator Instructions) I would now like to pass the conference over to your host, Nikki Sparley, head of investor relations at NW Natural Holdings.

早安，感謝大家參加 NW Natural Holdings Company 2024 年第三季財報電話會議。我叫 Rica，我將擔任今天的主持人。（操作員指示）我現在想將會議轉交給東道主 NW Natural Holdings 投資者關係主管 Nikki Sparley。

Thank you. You may proceed, Nikki.

謝謝。你可以繼續了，妮基。

Thank you. Good morning and welcome to our third quarter 2024 earnings call. As a reminder, some things that will be said this morning contain forward-looking statements that are based on management's assumptions, which may or may not occur. For a complete list of our cautionary statements, refer to the language at the end of our press release.

謝謝。早上好，歡迎參加我們的 2024 年第三季財報電話會議。提醒一下，今天早上要說的一些事情包含基於管理層假設的前瞻性陳述，這些假設可能會發生，也可能不會發生。有關我們的警告聲明的完整列表，請參閱我們新聞稿末尾的語言。

We expect to file our 10-Q later today. Following this call, a recording will be available on our website. Please note, these calls are designed for the financial community. If you are an investor and have additional questions after the call, please contact me directly at 503-721-2530.

我們預計今天晚些時候提交 10-Q。此次通話後，我們的網站上將提供錄音。請注意，這些電話是為金融界設計的。如果您是投資者並且在通話後還有其他問題，請直接致電 503-721-2530 與我聯繫。

News media may contact David Roy at 503-610-7157. Speaking this morning are David Anderson, Chief Executive Officer; and Ray Kaszuba, Senior Vice President and CFO. David and Ray have prepared remarks and then will be available, along with other members of our executive team, to answer your questions. With that, I will turn it over to David.

新聞媒體可致電 503-610-7157 聯絡 David Roy。今天早上發表演說的是執行長戴維‧安德森 (David Anderson)；以及資深副總裁兼財務長 Ray Kaszuba。David 和 Ray 已準備好發言稿，然後將與我們執行團隊的其他成員一起回答您的問題。這樣，我就把它交給大衛了。

Thanks, Nikki, and good morning, everyone. The company continues to perform very well, including having a strong third quarter. In 2024, we've been focused on executing on our capital investment plan, regulatory dockets, and growth opportunities with great success. I'm happy to report that completion of our Oregon gas utility rate case and also the conclusion of three water and wastewater utility rate cases.

謝謝，尼基，大家早安。該公司繼續表現出色，包括第三季的強勁表現。2024 年，我們一直專注於執行我們的資本投資計劃、監管事項和成長機會，並取得了巨大成功。我很高興地向大家報告，我們的俄勒岡州天然氣公用事業費案例已完成，三個水和廢水公用事業費案例也已結束。

Today, I'll cover an update on the economy and the rate cases, Ray will provide an update on our financials, and then I'll close the call with an update on our growth opportunities. Turning to a few comments on the economy. Related to our gas utility service territory, Oregon's unemployment rate remains low at 4%, lower than the national average of 4.1% in September. Single-family housing permits were up 13.1% in the Portland metro area on a rolling 12-month basis.

今天，我將介紹經濟和利率案例的最新情況，雷將提供我們財務狀況的最新情況，然後我將介紹我們成長機會的最新情況，以結束電話會議。轉向對經濟的一些評論。與我們的天然氣公用事業服務領域相關，俄勒岡州的失業率仍保持在 4% 的低水平，低於 9 月全國平均 4.1%。波特蘭都會區的單戶住房許可證在過去 12 個月內增長了 13.1%。

Permits are a good indicator of potential future customer growth. For September, unemployment rates in our water service territories were as low as 2.8%. In six of the nine counties our water utilities serve, single-family building permits posted double-digit growth for the 12 months ended September 2024 compared to the same period in 2023. Collectively, our gas and water utility customer base grew 1.9% over the last 12 months and topped 875,000 at September 30, 2024.

許可證是未來潛在客戶成長的良好指標。9 月份，我們供水服務地區的失業率低至 2.8%。在我們供水公司服務的 9 個縣中，有 6 個縣的單戶建築許可證在截至 2024 年 9 月的 12 個月內與 2023 年同期相比實現了兩位數增長。總的來說，我們的瓦斯和自來水公司客戶群在過去 12 個月裡成長了 1.9%，截至 2024 年 9 月 30 日達到 875,000 人。

Moving to an update on our gas and water rate cases. Our utilities have continued to make necessary investments in safety, reliability, and technology. For our water and wastewater utilities, we continue to find these systems need substantial investments to meet current and increasing quality standards and support customer growth. These are all reasons why, after careful consideration of the effect on customer bills, we decided to file rate cases for our gas utility in Oregon and a number of our water and wastewater utilities.

接下來是關於我們的天然氣和水費案例的更新。我們的公用事業公司繼續在安全性、可靠性和技術方面進行必要的投資。對於我們的供水和廢水處理設施，我們不斷發現這些系統需要大量投資才能滿足當前和不斷提高的品質標準並支援客戶成長。這些都是為什麼在仔細考慮對客戶帳單的影響後，我們決定為俄勒岡州的天然氣公用事業公司以及我們的一些供水和廢水公用事業公司提交費率案件的原因。

I'm happy to report we've worked collaboratively with stakeholders in these cases and received constructive orders in nearly all cases, putting us on track for solid results going forward. That includes orders in three of our five water and wastewater rate cases. Of particular note is the order approving the all-party settlements for our largest utilities in Arizona, with new rates effective November 1, 2024.

我很高興地向大家報告，我們在這些案例中與利益相關者進行了合作，並在幾乎所有案例中都收到了建設性的訂單，使我們走上了取得堅實成果的軌道。其中包括我們五個水和廢水處理案例中三個的訂單。特別值得注意的是，該命令批准了我們亞利桑那州最大的公用事業公司的各方和解協議，新費率將於 2024 年 11 月 1 日生效。

Concerning the Oregon gas utility rate case, in October, the commission issued an order approving the all-party settlements that we've discussed before. Under the order, Northwest Natural's revenue requirement increased $93.3 million that consisted of $83.7 million related to investments in the system and expenses and $9.6 million for increased depreciation.

關於俄勒岡州天然氣公用事業費率案件，十月份，委員會發布了一項命令，批准我們之前討論過的各方和解方案。根據該命令，Northwest Natural 的收入要求增加了 9,330 萬美元，其中包括與系統投資和費用相關的 8,370 萬美元，以及用於增加折舊的 960 萬美元。

The order also included a 50/50 capital structure, a return on equity of 9.4%, and a cost of capital of approximately 7.1%. Rate base increased $334 million to $2.1 billion in total. We're disappointed in the commission's decision to require Northwest Natural to forego recovery of $13.7 million of rate base related to line extension allowances previously approved in past rate cases.

該訂單還包括 50/50 的資本結構、9.4% 的股本回報率和約 7.1% 的資本成本。費率基數增加了 3.34 億美元，達到 21 億美元。我們對委員會決定要求西北自然公司放棄收回 1,370 萬美元的費率基數感到失望，這些費率基數與先前在過去費率案件中批准的線路延伸津貼相關。

This will result in a $10.1 million after-tax noncash disallowance, which will be recognized in our fourth quarter results. During the quarter, we filed for our annual purchase gas adjustments in both Oregon and Washington, which updates rates for the projected gas cost for the coming year. The result is good news, a 9.4% decline for Washington customers.

這將導致 1,010 萬美元的稅後非現金免稅，這將在我們第四季度的業績中得到確認。在本季度，我們在俄勒岡州和華盛頓州申請了年度天然氣採購調整，更新了來年預計的天然氣成本費率。結果是好消息，華盛頓客戶的數量下降了 9.4%。

In Oregon, the rate case, combined with the decline in gas costs, resulted in the average Oregon residential customer bill increasing a modest 4.7%. New rates went into effect on November 1. Overall, I'm pleased that residential customers across our service territory are paying less today for their natural gas service than they did 20 years ago.

在俄勒岡州，費率案例加上天然氣成本下降，導致俄勒岡州住宅客戶的平均帳單小幅上漲 4.7%。新費率於 11 月 1 日生效。總體而言，我很高興我們服務區域內的住宅客戶現在為天然氣服務支付的費用比 20 年前要少。

With that, let me turn it over to Ray.

那麼，讓我把它交給雷。

Thank you, David, and good morning, everyone. I'll begin by discussing overall earnings drivers for 2024, highlights for the third quarter and year-to-date results, financing needs, and conclude with guidance. As a reminder, Northwest Natural's earnings are seasonal, with the majority of revenues and earnings generated in the first and fourth quarters, during the winter and heating months.

謝謝大衛，大家早安。我將首先討論 2024 年的整體獲利驅動因素、第三季和年初至今的業績亮點、融資需求，最後提供指導。需要提醒的是，西北自然公司的利潤是季節性的，大部分收入和收益產生於第一季和第四季的冬季和供暖月份。

Also, our segment reporting includes our natural gas distribution segment, the activities from Northwest Natural Water, Northwest Natural Renewables, interstate storage, and third-party asset management revenues are combined outside of our primary segment and referred to as other.

此外，我們的分部報告還包括天然氣分銷分部、西北天然水務、西北天然可再生能源、州際存儲和第三方資產管理收入的活動，這些收入合併在我們的主要分部之外，並稱為其他分部。

Before I walk through detailed third quarter results, I wanted to emphasize a couple of financial themes for 2024. As you may remember, 2024 is an investment year for us that is setting the stage for future growth. Our initial earnings guidance for 2024 reflected a combination of lag related to our capital investments and inflationary pressures that we are experiencing simultaneously.

在詳細介紹第三季業績之前，我想先強調 2024 年的幾個財務主題。您可能還記得，2024 年對我們來說是投資年，為未來的成長奠定了基礎。我們對 2024 年的初步獲利指引反映了與我們的資本投資相關的滯後性和我們同時經歷的通膨壓力的綜合影響。

To resolve the regulatory lag, we filed an Oregon gas utility rate case. As David mentioned, the recent order for that case and new rates position us well to achieve our long-term earnings guidance.

為了解決監管滯後問題，我們提起了俄勒岡州天然氣公用事業費率案件。正如大衛所提到的，最近針對該案件的訂單和新的費率使我們能夠很好地實現我們的長期盈利指導。

Now, moving to third quarter results, which were stronger than we projected. Relative to last year, we reported a net loss of $27.2 million or $0.71 per share for the third quarter of 2024, compared to $23.7 million or $0.65 per share for the same period in 2023. Lower earnings at our gas utility drove consolidated results, driven by regulatory lag on investments and inflation pressures.

現在，我們來看第三季的業績，該業績比我們的預期要強。與去年相比，我們報告 2024 年第三季淨虧損為 2,720 萬美元，即每股 0.71 美元，而 2023 年同期淨虧損為 2,370 萬美元，即每股 0.65 美元。由於投資監管滯後和通膨壓力，我們的天然氣公用事業公司的獲利下降推動了綜合績效的成長。

Utility margin remained consistent with the prior year. Gas utility O&M increased $1.3 million, reflecting higher payroll and benefits costs from additional staffing in key areas and pay increases for union employees under the new contract that began on June 1, this year. Utility depreciation and general taxes increased $3.6 million. Other income and expenses net declined $4.6 million, mainly driven by lower interest income from a reduction of invested cash and higher pension costs.

公用事業利潤率與上年保持一致。天然氣公用事業 O&M 增加了 130 萬美元，反映出關鍵領域人員配置增加導致工資和福利成本增加，以及根據今年 6 月 1 日開始的新合同，工會僱員工資上漲。公用事業折舊和一般稅費增加了 360 萬美元。其他收入和支出淨減少 460 萬美元，主要是由於投資現金減少和退休金成本上升導致利息收入減少。

Our other businesses net income increased $2.8 million due to higher gas storage revenues and higher water and wastewater utilities net income compared to the same period in 2023. For the first nine months of 2024, we reported net income of $33.9 million or $0.88 per share, compared to net income of $49.2 million or $1.37 per share for the same period in 2023.

與 2023 年同期相比，由於天然氣儲存收入增加以及供水和污水處理設施淨利潤增加，我們其他業務的淨利潤增加了 280 萬美元。2024 年前 9 個月，我們報告的淨利潤為 3,390 萬美元，即每股 0.88 美元，而 2023 年同期的淨利潤為 4,920 萬美元，即每股 1.37 美元。

Lower earnings at our gas utility drove consolidated results, with similar themes as we noted for the quarter, regulatory lag on investments and inflationary pressures. A few more details on gas utility results. Utility margin remained stable from last year, with an increase of $900,000. Gas utility O&M decreased $2.5 million, reflecting lower employee benefit and contractor expenses related to cost savings measures. Partially offsetting this was higher payroll and information technology costs. Utility depreciation and general taxes increased $8.1 million due to higher property, plant, and equipment investment.

我們的天然氣公用事業公司的獲利下降推動了合併業績，與我們在本季指出的主題相似，投資監管滯後和通膨壓力。有關天然氣公用事業結果的更多詳細資訊。公用事業利潤率較去年保持穩定，增加了 90 萬美元。天然氣公用事業營運與維護減少了 250 萬美元，反映出與成本節約措施相關的員工福利和承包商費用減少。較高的工資和資訊技術成本部分抵消了這一影響。由於財產、廠房和設備投資增加，公用事業折舊和一般稅費增加了 810 萬美元。

Other income and expense net declined $12.6 million, mainly from higher pension costs, but also lower interest income and equity allowance for funds used during construction. Our other businesses had stable results year over year. We remain disciplined in our approach to deploying capital and are focused on maintaining our strong credit ratings and a solid balance sheet.

其他收入和支出淨額下降了 1,260 萬美元，主要是由於退休金成本增加，但利息收入和建設期間使用的資金權益津貼減少。我們的其他業務表現逐年穩定。我們在部署資本的方法上仍然保持紀律，並專注於維持我們強大的信用評級和穩健的資產負債表。

For 2024, cash provided by operating activities was $220 million. We invested $326 million into the business, with the majority of the investments for safety and reliability projects in our regulated gas and water businesses. These were planned and included in our rate case requests. I'm happy to report that we've completed our financing needs for 2024. Related to equity, we issued $90.4 million in 2024 through the ATM program to support the business, and we're done issuing through the ATM for the year.

2024年，經營活動提供的現金為2.2億美元。我們向該業務投資了 3.26 億美元，其中大部分投資用於受監管的天然氣和水業務的安全和可靠性項目。這些都是計劃好的並包含在我們的費率案例請求中。我很高興地報告，我們已經完成了 2024 年的融資需求。與股權相關，我們在 2024 年透過 ATM 計畫發行了 9,040 萬美元來支持業務，今年我們已經完成了透過 ATM 的發行。

We see modest equity and debt financing needs in 2025, with equity issuances at a lower level next year compared to 2024. For long-term debt issuances, we expect to issue $60 million at the holding company and $75 million at the gas company in the coming 12 months. Part of the issuance at the gas company will cover a $30 million maturity in 2025. The company reaffirmed 2024 GAAP earnings per share guidance in the range of $1.94 to $2.14 and adjusted earnings per share guidance in the range of $2.20 to $2.40 on a non-GAAP basis, excluding the regulatory disallowance from the Oregon general rate case.

我們預計 2025 年的股權和債務融資需求將較為溫和，明年的股權發行量將低於 2024 年。對於長期債券發行，我們預計在未來 12 個月內向控股公司發行 6,000 萬美元，向天然氣公司發行 7,500 萬美元。該天然氣公司發行的部分債券將於 2025 年到期，金額為 3,000 萬美元。該公司重申2024 年GAAP 每股盈餘指引範圍為1.94 美元至2.14 美元，調整後的每股盈餘指引範圍為非GAAP 基礎上的2.20 美元至2.40 美元，不包括俄勒岡州一般利率案例中的監管不允許。

Guidance assumes continued customer growth, average weather conditions; and significant changes in prevailing regulatory policies, mechanisms, or outcomes or significant changes in laws, legislation, or regulations. We continue to target a long-term earnings-per-share growth rate of 4% to 6%. With that, I'll turn it over to David.

指南假設客戶持續成長、天氣條件平均；現行監管政策、機製或結果的重大變化，或法律、立法或法規的重大變化。我們繼續將每股盈餘的長期成長率目標定為4%至6%。有了這個，我會把它交給大衛。

Thanks, Ray. Now, a quick update on our growth opportunities. First, at Northwest Natural Water, we've closed the Puttman Infrastructure and ICH acquisition, adding customers in Idaho, Oregon, and California. Importantly, this acquisition provides a pipeline of growth, entering into the recycled water business, and brings Tom Puttman to our team as president of Northwest Natural Water.

謝謝，雷。現在，快速更新我們的成長機會。首先，在西北天然水公司，我們完成了對 Puttman 基礎設施和 ICH 的收購，增加了愛達荷州、俄勒岡州和加利福尼亞州的客戶。重要的是，此次收購提供了進入再生水業務的成長管道，並將 Tom Puttman 引入我們的團隊，擔任西北天然水公司總裁。

Moving to an update on Northwest Natural Renewables and our two landfill RNG facilities with EDL. Both facilities are online and reached substantial completion in the third quarter. Under our agreement with EDL, we closed on the first project in September and expect to close on the second project by the end of the year. That sets us up well for 2025 and a full year of revenues and cash flows.

接下來介紹西北天然再生能源公司和我們的兩個帶有 EDL 的垃圾掩埋場 RNG 設施的最新情況。這兩個設施均已上線，並於第三季基本完工。根據我們與 EDL 的協議，我們在 9 月完成了第一個項目，預計在今年年底前完成了第二個項目。這為我們 2025 年以及全年的收入和現金流奠定了良好的基礎。

I want to emphasize, our renewables strategy and these investments are not based off the RIN or LCFS credits. The volumes from RNG facilities are contracted under long-term, primarily fixed-price offtake agreements that we have contracted with investment-grade counterparties. We've had a strong year of execution and are well-positioned to continue delivering on our financial and strategic objectives. I am proud of the accomplishments across all three of our growing businesses.

我想強調的是，我們的再生能源策略和這些投資並不是基於 RIN 或 LCFS 信用。RNG 設施的產量是根據我們與投資等級交易對手簽訂的長期、主要是固定價格的承購協議簽訂的。我們這一年的執行力非常強勁，並且有能力繼續實現我們的財務和策略目標。我為我們三個不斷發展的業務所取得的成就感到自豪。

To summarize, we've reached constructive completion of the Oregon general rate case. This was critical. The gas utility is on track to earn a strong return on its invested capital. Second, the water and wastewater utilities have a robust growth trajectory, with both organic and acquisition opportunities.

總而言之，我們已經建設性地完成了俄勒岡州一般費率案例。這很關鍵。該天然氣公用事業公司預計將獲得豐厚的投資回報。其次，供水和污水處理公司有著強勁的成長軌跡，既有有機的機會，也有收購的機會。

Importantly, for water, we've worked with the regulators to recover crucial safety investments and provide a strong foundation for earnings. And finally, I'm excited that Northwest Natural Renewables' first project is up and running, generating revenues and cash flows. We've accomplished a lot in a short amount of time. I want to thank the team for all they've done here.

重要的是，對於水，我們與監管機構合作，收回了重要的安全投資，並為盈利奠定了堅實的基礎。最後，我很高興西北自然再生能源公司的第一個專案已經啟動並運行，產生收入和現金流。我們在短時間內取得了許多成就。我要感謝團隊在這裡所做的一切。

They have worked hard to execute on the initiatives for 2024. Thanks for joining us this morning. With that, I'll open it up for questions. Operator?

他們努力執行 2024 年的措施。感謝您今天早上加入我們。有了這個，我將打開它來提問。操作員？

(Operator Instructions) Chris Ellinghaus with Siebert Williams Shank.

（操作員說明）Chris Ellinghaus 和 Siebert Williams Shank。

Hey, everybody, welcome, Ray. David, thanks for the -- adding the D&A part. I actually was digging through the case trying to find that number, and that was helpful. Can you sort of elaborate on the final order? Not only the disallowance.

嘿，大家好，歡迎，雷。David，感謝您添加 D&A 部分。事實上，我正在仔細研究這個案例，試圖找到這個數字，這很有幫助。能詳細說明一下最終訂單嗎？不僅是不允許。

Give us any color you could give us there. But in trying to interpret the margin from the case, obviously, you can exclude the D&A component, but are there any other major sort of deductions from the revenue increase that are nonmargin-enhancing?

給我們任何你可以給我們的顏色。但是，在嘗試解釋該案例中的利潤時，顯然，您可以排除 D&A 部分，但是是否有任何其他從收入成長中扣除的非利潤增加的主要扣除額？

No, Chris. You know, the good news is we settled the majority of the rate case early on, and that's what the commission approved both settlements, which ended up being that $93 million revenue requirement that I mentioned. The only two items that we didn't settle were some government affairs expenses that the commission was looking at and then also that line extension allowance that I mentioned in my prepared remarks.

不，克里斯。你知道，好消息是我們很早就解決了大部分費率案件，這就是委員會批准的兩項和解協議，最終形成了我提到的 9,300 萬美元的收入要求。我們唯一沒有解決的兩個項目是委員會正在考慮的一些政府事務費用，還有我在準備好的發言中提到的線路延伸津貼。

But other than that, everything kind of came in place that was in line with the settlements, which included an increase in depreciation and amortization expense, which, as you know, is a cash flow impact, not necessarily an earnings impact. Is that responsive, Chris? Is that where you're going?

但除此之外，一切都與和解一致，其中包括折舊和攤銷費用的增加，正如你所知，這是對現金流的影響，不一定是對獲利的影響。克里斯，這有反應嗎？那是你要去的地方嗎？

Yeah. And you brought up the government affairs part, I actually was kind of happy with that given what the party's positions were. I could certainly see them take a more hard-line attack on that. So, what were -- what was your impression of the sort of three-quarters recovery part of that?

是的。你提到了政府事務部分，考慮到黨的立場，我實際上對此感到滿意。我當然可以看到他們對此採取更強硬的攻擊。那麼，您對其中四分之三的復甦部分有何印象呢？

Well, obviously, we feel that we should have had all of it recovered. We tracked that time very carefully, whether it's being charged to the holding company or the other subsidiaries. But in the end, Chris, you take what you can get here.

嗯，顯然，我們覺得我們應該把所有的東西都恢復過來。我們非常仔細地追蹤該時間，無論是記入控股公司還是其他子公司。但最後，克里斯，你可以拿走你能在這裡得到的東西。

Right. And as far as the disallowance goes, I sort of got where they were coming from on -- in some ways. But given that it was historically,a recoverable rate base item, what -- does that tell us anything about where the commission is at today and how do you adjust going forward?

正確的。就不允許的情況而言，我在某種程度上理解了它們的來源。但考慮到它在歷史上是一個可收回利率的基礎項目，這能告訴我們今天的佣金狀況以及未來如何調整嗎？

Yeah, it's a good question, Chris, and I will tell you that we were very disappointed in that portion of the order and especially looking back, as you referred to. Going forward, we're just going to have to make sure that we're putting processes in place that are very, very careful in terms of what costs come up -- about. When we look at a line extension, and just so when you look at -- looking at a single-family household in a new build situation, we tend to spend around $2,000 per household. The allowance now is going to be $1,440.

是的，這是一個很好的問題，克里斯，我會告訴你，我們對訂單的這一部分感到非常失望，特別是回顧過去，正如你所提到的。展望未來，我們必須確保我們所製定的流程對於出現的成本非常非常謹慎。當我們考慮產品線延伸時，同樣當您考慮新建的單戶家庭時，我們傾向於每個家庭花費約 2,000 美元。現在的津貼為 1,440 美元。

So we just need to make sure that we absolutely are very tight to that $1,440 number so that we don't have this issue popping up. But I will reemphasize, Chris, I'm very disappointed in the commission, number one, taking this stance, but also looking back, as they did, and we'll take that into account with things that we do going forward.

所以我們只需要確保我們絕對非常嚴格地控制 1,440 美元的數字，這樣我們就不會出現這個問題。但我要再次強調，克里斯，我對委員會採取這種立場感到非常失望，但也像他們一樣回顧過去，我們將在未來所做的事情中考慮到這一點。

Okay. Also related to the rate case, there was the multiyear rate discussion. The commission's order was sort of very nebulous or unclear of -- sort of their position there. Have you got any clarifying thoughts on what -- A, what your thoughts are, and is there any way to interpret what they really said?

好的。與利率案例相關的還有多年利率討論。該委員會的命令有點非常模糊或不清楚——他們在那裡的立場有點模糊。你對什麼有任何澄清的想法——A，你的想法是什麼，有什麼方法可以解釋他們真正所說的內容嗎？

Another good question, Chris. We had laid out in the filing that we would like to discuss going forward have multiyear rate cases. We've been very successful in Washington state in that regard. And it's proven beneficial not only to the company but to -- the commission likes it, too.

另一個好問題，克里斯。我們在文件中指出，我們希望討論未來的多年利率案件。在這方面，我們在華盛頓州非常成功。事實證明，這不僅對公司有利，而且委員會也喜歡它。

We are still trying to interpret the order, Chris, to be very honest with you, and we'll talk to the commission on exactly what they would like going forward. It appears that they want to kind of study it further, when you read the order. And we'll just have to kind of work through those processes as we continue to work with them to try to get to what we hope is ultimately multiyear rate cases being approved going forward.

克里斯，老實說，我們仍在嘗試解釋該命令，我們將與委員會討論他們希望繼續做什麼。當你閱讀訂單時，他們似乎想進一步研究它。我們只需要完成這些流程，繼續與他們合作，努力實現我們希望最終獲得批准的多年費率案例。

Okay. So, you would agree that it was very unclear what they really want?

好的。那麼，您是否同意目前還不清楚他們真正想要什麼？

I would like more clarity. Correct.

我想要更清晰的訊息。正確的。

The quarter was really strong in the other segment. Can you give us any color on what components were really good there and was there any RNG contribution at all?

本季其他領域的表現確實強勁。您能否告訴我們哪些組件真正出色，以及 RNG 是否做出了任何貢獻？

Yeah. Let me turn it over to Ray.

是的。讓我把它交給雷。

Yeah. The -- yeah, you're right in pointing out that the other was stronger than last year Q3. The majority of that is related to our storage operations, as well as some favorability in water as well.

是的。是的，你指出另一個比去年第三季更強，這是正確的。其中大部分與我們的儲存業務以及對水的一些有利條件有關。

Okay. Great. All right. Thanks for the details. I appreciate it, everybody.

好的。偉大的。好的。感謝您提供詳細資訊。我很感激大家。

Thanks, Chris.

謝謝，克里斯。

(Operator Instructions) Selman Akyol with Stifel.

（操作員說明）Selman Akyol 與 Stifel。

Thank you. Good morning. You characterized this as being an investment year, and so I'm really just sort of trying to think about next year and how you would think about that going forward in relationship to this year. Should we expect elevated CapEx again next year or should that maybe roll over?

謝謝。早安.您將今年描述為投資年，所以我真的只是想考慮明年以及您將如何考慮與今年的關係。我們是否應該期待明年資本支出再次上升，或者是否應該滾動？

Yeah. So, let me start, then I'll turn it over to Ray to kind of tackle the CapEx. This year, as you recall, when we released guidance earlier this year, it was a little unique in terms of the level of regulatory lag that we were experiencing, not only from the capital infusion, a lot of it IT-related, which had shorter depreciation lives, but also the influx -- the impacts of inflation. But on a CapEx basis, we still have very strong opportunities in, frankly, all of our segments. And maybe I'll turn it over to Ray to kind of talk a little bit more about that going forward.

是的。那麼，讓我開始吧，然後我會將其交給 Ray 來解決資本支出問題。今年，正如您所記得的，當我們在今年早些時候發布指導意見時，我們所經歷的監管滯後程度有點獨特，不僅來自資本注入，而且很多與 IT 相關，折舊年限縮短，而且還有資金湧入——通貨膨脹的影響。但坦白說，在資本支出的基礎上，我們在所有細分市場中仍然擁有非常強大的機會。也許我會把它交給雷，讓他更多地討論接下來的事情。

Yeah. As you know, our historic practice is to provide guidance for the year in our February call. So, you can expect more details there. I think you heard in our prepared remarks today, a key piece of that, though, is that we reaffirmed our 4% to 6% long-term EPS growth rate.

是的。如您所知，我們的歷史慣例是在二月份的電話會議中提供今年的指導。因此，您可以在那裡期待更多詳細資訊。我想你們在我們今天準備好的演講中聽到了，其中一個關鍵部分是我們重申了 4% 至 6% 的長期每股收益成長率。

However, from a CapEx standpoint, I think you can expect something pretty close to 2024 or maybe a little bit lower for 2025. But we'll provide more details on our next earnings call.

然而，從資本支出的角度來看，我認為您可以預期 2024 年會非常接近，或者 2025 年可能會更低。但我們將在下次財報電話會議上提供更多詳細資訊。

Got it. And then can you just maybe discuss sort of the outlook for continued acquisitions on the water front?

知道了。然後能否討論一下在海濱地區持續收購的前景？

Yeah. We're still seeing quite a few opportunities. We're now in five states. Almost all of our activities has been focused on the private -- six states, excuse me, now, with the entry into California -- with on the private side of the equation.

是的。我們仍然看到不少機會。我們現在分佈在五個州。幾乎我們所有的活動都集中在私人方面——對不起，現在有六個州，隨著進入加利福尼亞州——在等式的私人方面。

Maybe I'll just turn it over to Justin to give a little bit more color on what you're seeing out there.

也許我會把它交給賈斯汀，為你所看到的內容提供更多的色彩。

Yeah. Happy to answer that question. I mean, we continue to have a fairly robust pipeline of opportunities, Selman. It's a lot of smaller tuck-in acquisitions around our existing service territories. And as you know, those service territories have been expanding. So, with that expansion, it opens up more opportunities to us. So, we'll continue to see a fairly steady, I think, run rate of smaller acquisitions on the water side.

是的。很高興回答這個問題。我的意思是，我們仍然擁有相當強大的機會管道，塞爾曼。這是圍繞我們現有服務區域進行的許多小型收購。如您所知，這些服務領域一直在擴大。因此，隨著這種擴張，它為我們帶來了更多機會。因此，我認為，我們將繼續看到水務方面小型收購的運作率相當穩定。

All right. Thank you very much.

好的。非常感謝。

Thanks, Selman.

謝謝，塞爾曼。

Thank you. I would like to now hand it back to David for any final remarks.

謝謝。我現在想把它交還給大衛，讓他發表最後的評論。

Well, thanks everybody for joining us today. As always, if you want to dive into the details or have additional questions, please reach out to Nikki. With that, have a great day.

好的，謝謝大家今天加入我們。與往常一樣，如果您想了解詳細資訊或有其他問題，請聯絡 Nikki。就這樣，祝你有美好的一天。

Thank you all for joining the NW Natural Holdings Company third quarter 2024 earnings call. I now confirm that today's call has now concluded. You may now disconnect from the call, and please enjoy the rest of your day.

感謝大家參加 NW Natural Holdings Company 2024 年第三季財報電話會議。我現在確認今天的電話會議現已結束。現在您可以掛斷電話，並享受接下來的一天。