Northwest Natural Holding Co (NWN) 2025 Q1 法說會逐字稿

Thank you all for attending. I would like to welcome you all to today's call, the Northwest Natural Holdings Company Q1 2025 earnings call. My name is Brika, and I will be your moderator for today. (Operator Instructions)

謝謝大家的出席。歡迎大家參加今天的電話會議，即西北天然控股公司 2025 年第一季財報電話會議。我叫布里卡 (Brika)，今天我將擔任你們的主持人。（操作員指示）

I would now like to pass you over to our host, Nikki Sparley, Head of Investor Relations, to begin. Thank you. You may proceed.

現在我想把節目交給我們的主持人、投資人關係主管 Nikki Sparley。謝謝。您可以繼續。

Thank you. Good morning, and welcome to our first quarter 2025 earnings call. A presentation for today's call is available on our Investor Relations website at ir.nwnaturalholdings.com. And following this call, a recording will be available on our website.

謝謝。早安，歡迎參加我們 2025 年第一季財報電話會議。今天的電話會議簡報可在我們的投資者關係網站 ir.nwnaturalholdings.com 上查閱。此次通話結束後，錄音將在我們的網站上發布。

Turning to slide 2. As a reminder, some things that will be said this morning contain forward-looking statements. They are based on management's assumptions, which may or may not occur. For a complete list of cautionary statements, refer to the language at the end of our press release. Additionally, our risk factors are provided in our 10-Q and 10-K filings. We will also refer to certain non-GAAP financial measures.

翻到幻燈片 2。提醒一下，今天早上要講的一些內容包含前瞻性陳述。它們基於管理層的假設，這些假設可能會發生，也可能不會發生。有關警告聲明的完整列表，請參閱我們新聞稿末尾的語言。此外，我們在 10-Q 和 10-K 文件中提供了風險因素。我們也將參考某些非公認會計準則財務指標。

For additional disclosures about these non-GAAP measures, including reconciliations to comparable GAAP measures, please see the slides that accompany today's call, which are available on the Investor Relations page of our website. Please note, our guidance assumes continued customer growth, average weather conditions, and no significant changes in prevailing regulatory policies, mechanisms, or outcomes or significant changes in laws, legislation, or regulations. For context, our segment reporting includes our Northwest Natural Gas utility, which was previously referred to as the Northwest Natural Gas Distribution, or NGD, segment.

有關這些非 GAAP 指標的更多揭露，包括與可比較 GAAP 指標的對賬，請參閱今天電話會議附帶的幻燈片，這些幻燈片可在我們網站的投資者關係頁面上找到。請注意，我們的指導假設客戶持續成長、天氣條件平均，且現行監管政策、機製或結果沒有重大變化，法律、立法或法規沒有重大變化。就背景而言，我們的分部報告包括西北天然氣公用事業，該公用事業以前稱為西北天然氣分銷或 NGD 分部。

Beginning with first quarter 2025 results, we are providing information on two additional segments, our SiEnergy Gas Utility segment and our Northwest Natural Water Utility segment. Finally, the other category includes our Interstate Storage Services and Asset Management Services, Northwest Natural Renewables and Holding Company Expenses.

從 2025 年第一季業績開始，我們將提供有關另外兩個部門的信息，即我們的 SiEnergy 天然氣公用事業部門和我們的西北天然水公用事業部門。最後，另一類包括我們的州際儲存服務和資產管理服務、西北天然再生能源和控股公司費用。

We expect to file our 10-Q later today. 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. News media may contact David Roy at (503) 610-7157.

我們預計將於今天稍晚提交 10-Q 報表。請注意，這些電話會議是為金融界設計的。如果您是投資者，並且在通話後有其他問題，請直接撥打（503）721-2530與我聯絡。新聞媒體可致電 (503) 610-7157 聯絡 David Roy。

Moving to slide 3. With us today are Justin Palfreyman, President and Chief Executive Officer; and Ray Kaszuba, Senior Vice President and Chief Financial Officer. Justin will provide an update on each of our businesses, and Ray will walk through financial results, liquidity and financing, and guidance. After Justin and Ray's prepared remarks, they will be available, along with other members of our executive team, to answer your questions.

移至幻燈片 3。今天和我們在一起的有總裁兼執行長賈斯汀·帕爾弗雷曼 (Justin Palfreyman)；以及高級副總裁兼財務長 Ray Kaszuba。賈斯汀將提供我們每項業務的最新情況，而雷將介紹財務業績、流動性和融資以及指導。在賈斯汀和雷發表完準備好的演講後，他們將與我們執行團隊的其他成員一起回答您的問題。

With that, I will turn it over to Justin on slide 4.

說完這些，我會把幻燈片 4 交給賈斯汀。

Thanks, Nikki. Good morning, and welcome, everyone. It is an honor to be speaking to you this morning, and I am pleased to report that Northwest Natural Holdings had a solid first quarter. Before getting into the business highlights, I'd like to take a moment to thank David Anderson for his over 20 years of service at Northwest Natural. Our employees, customers, and communities have benefited greatly from David's dedication.

謝謝，尼基。早上好，歡迎大家。我很榮幸今天早上能與大家交談，我很高興地向大家報告西北天然控股公司第一季的業績表現穩健。在介紹業務亮點之前，我想花點時間感謝大衛安德森 (David Anderson) 在西北自然公司 20 多年的服務。我們的員工、客戶和社區都因大衛的奉獻精神而受益匪淺。

Under his leadership, our company has expanded into new areas and evolved significantly. David led initiatives that improved employee and customer safety, maintained low customer rates, and extended our tradition of excellent customer service and community engagement. We wish David all the best in retirement. He has left the company well positioned for future growth and importantly, with an excellent team that is focused on delivering long-term value to our shareholders. Part of David's legacy is the company's long-standing commitment to leadership and business integrity. I am proud to say that Northwest Natural Holdings was named one of the 2025 World's most Ethical Companies by Ethisphere for the fourth year running.

在他的領導下，我們公司不斷拓展新領域並取得長足發展。David 領導的措施提高了員工和客戶的安全，維持了較低的客戶費率，並延續了我們優質客戶服務和社區參與的傳統。我們祝福大衛退休後一切順利。他為公司未來的發展做好了準備，更重要的是，公司擁有了一支優秀的團隊，致力於為股東創造長期價值。大衛留下的遺產之一是公司對領導力和商業誠信的長期承諾。我很自豪地說，西北天然控股公司連續第四年被 Ethisphere 評為 2025 年全球最具商業道德的公司之一。

Turning now to Q1 results. We have executed well across all of our businesses. Our financial results are on track for the year and in line with our full-year guidance issued in February. We reported adjusted net income of $2.28 per share in the first quarter of 2025 compared to net income of $1.69 per share for the same period last year. Our combined utility customer growth rate was 9.6% for the 12 months ended March 31, 2025. The main driver was the acquisition of SiEnergy, which added about 73,000 gas meters in Texas. Northwest Natural Water is contributing strong incremental meter growth as well, posting a 5.9% increase. Our financial results reflect the strength of our business plan and collective utilities.

現在來看看第一季的業績。我們所有業務都表現良好。我們今年的財務表現進展順利，與二月發布的全年業績指引一致。我們報告 2025 年第一季調整後淨收入為每股 2.28 美元，去年同期淨收入為每股 1.69 美元。截至 2025 年 3 月 31 日的 12 個月內，我們的綜合公用事業客戶成長率為 9.6%。主要驅動力是收購 SiEnergy，該公司在德克薩斯州增加了約 73,000 個燃氣表。西北天然水務公司也貢獻了強勁的增量水錶成長，增幅達 5.9%。我們的財務表現反映了我們的商業計劃和集體效用的實力。

Moving to slide 5. Our key initiatives for 2025 are underway, and we are well positioned to meet our annual goals. Let me provide an update on each of our businesses. Turning to our Northwest Natural Gas utility. Our overall earnings per share improvement year over year is predominantly driven by the Northwest Natural Gas utility, which benefited from new rates that went into effect on November 1, 2024. After careful consideration, at the end of December 2024, Northwest Natural filed an Oregon general rate case to recover our critical investments in gas infrastructure and expenses related to providing safe and reliable service to customers.

移至投影片 5。我們 2025 年的重點舉措正在進行中，我們已準備好實現年度目標。讓我介紹一下我們每項業務的最新進展。轉向我們的西北天然氣公用事業。我們每股收益的整體成長主要得益於西北天然氣公用事業，該公司受益於 2024 年 11 月 1 日生效的新費率。經過仔細考慮，西北天然公司於 2024 年 12 月底提起俄勒岡州一般費率訴訟，以收回我們在天然氣基礎設施方面的關鍵投資以及與為客戶提供安全可靠服務相關的費用。

The request included a revenue requirement increase of $59.4 million or 5.8% over current rates. The case is made up of a few key components. First, it includes an increase in average rate base of $204 million since the last rate case. This is mainly related to investments in our critical infrastructure, including capital expenditures to ensure reliability during the coldest winter days at our Mist storage facility. Second, the case includes a capital structure of 52% equity and 48% long-term debt, a return on equity of 10.4%, and a cost of capital of approximately 7.7%. Finally, it includes an updated depreciation study.

該請求包括收入要求增加 5,940 萬美元，即比現行標準高出 5.8%。該案件由幾個關鍵部分組成。首先，自上次利率案例以來，平均利率基數增加了 2.04 億美元。這主要與我們關鍵基礎設施的投資有關，包括為確保我們的 Mist 儲存設施在最寒冷的冬季的可靠性而進行的資本支出。其次，該案例的資本結構為 52% 股權和 48% 長期債務，股本回報率為 10.4%，資本成本約為 7.7%。最後，它包括更新的折舊研究。

Oregon rate cases are adjudicated over a 10-month period, so we are still in the early months of the process. Right now, we are working through apply testimony to staff and interveners, with settlement conferences scheduled in June. We look forward to continued collaboration with parties and expect new rates to be effective starting November 1. I want to emphasize that we carefully consider this rate case filing and the effect on customer bills and broader affordability concerns.

俄勒岡州的稅率案件的裁決週期為 10 個月，因此我們仍處於流程的早期階段。目前，我們正在努力向員工和乾預人員提供證詞，並計劃於 6 月舉行和解會議。我們期待與各方繼續合作，並預計新費率將於 11 月 1 日生效。我想強調的是，我們仔細考慮了這個費率案例的提交及其對客戶帳單和更廣泛的負擔能力問題的影響。

It is important to note that today, our Northwest Natural Gas customers are paying less for their natural gas service than they did 20 years ago. This past winter, I'm pleased to report that once again, we were able to provide credits on our Oregon customers' bills as a result of savings we generated from efficient gas supply management. Over the last 20 years, we have been able to provide more than $280 million in bill credits to Northwest Natural Gas customers.

值得注意的是，今天，我們的西北天然氣客戶支付的天然氣服務費用比 20 年前要低。去年冬天，我很高興地報告，由於我們透過高效的天然氣供應管理節省了開支，我們能夠再次為俄勒岡州的客戶提供帳單抵免。在過去的 20 年裡，我們已經為西北天然氣客戶提供了超過 2.8 億美元的帳單信用額度。

Moving to our SiEnergy Gas Utility in Texas. We were thrilled to close the SiEnergy acquisition on January 7 and add this rapidly growing business to our portfolio. Out of the gate, SiEnergy has produced strong customer growth in line with our expectations and is hitting its meter set targets. We believe SiEnergy is on track to meet its operational and financial targets for the year.

搬遷至我們位於德州的 SiEnergy 天然氣公用事業公司。我們很高興在 1 月 7 日完成對 SiEnergy 的收購，並將這家快速成長的企業加入我們的投資組合中。一開始，SiEnergy 就實現了強勁的客戶成長，符合我們的預期，並且正在實現其電錶設定目標。我們相信 SiEnergy 有望實現今年的營運和財務目標。

Further supporting SiEnergy, we recently signed an agreement to purchase Hughes Gas Resources from EPCOR for $60 million. Hughes is expected to have approximately $46 million of rate base at the end of 2025 and is a logical bolt-on acquisition for us in Texas. With a similar business model as SiEnergy, Hughes has grown organically by providing infrastructure to residential and commercial developments in the high-growth areas surrounding Houston.

為了進一步支持 SiEnergy，我們最近簽署了一項協議，以 6000 萬美元的價格從 EPCOR 收購休斯天然氣資源。預計到 2025 年底，休斯的費率基礎將約為 4,600 萬美元，對於我們在德州來說，這是一次合乎邏輯的額外收購。休斯採用與 SiEnergy 類似的商業模式，透過為休士頓週邊高成長地區的住宅和商業開發項目提供基礎設施，實現了有機成長。

SiEnergy's overlapping footprint with Hughes allows for operational synergies in addition to incremental future customer growth. I am excited about our continued expansion in the Texas market. We expect the transaction to close in the second quarter of this year and expect that it will be accretive in 2026. On a combined basis, SiEnergy and Hughes served approximately 80,000 customers at March 31, 2025, with an impressive contracted customer backlog of over 200,000.

SiEnergy 與 Hughes 的業務重疊除了促進未來客戶的逐步成長外，還可以實現營運協同效應。我對我們在德克薩斯市場的持續擴張感到非常興奮。我們預計該交易將在今年第二季完成，並預計在 2026 年實現增值。截至 2025 年 3 月 31 日，SiEnergy 和 Hughes 合計為約 8 萬名客戶提供服務，其中已簽約客戶積壓量超過 20 萬名。

Turning now to Northwest Natural Water. Collectively, our water and wastewater utility customer base grew 5.9% over the last 12 months, including three acquisitions. While we continue to manage a robust acquisition pipeline, we are staying focused and disciplined as we seek the right opportunities to create value. In 2025, we expect to refresh rates at multiple water utilities, including in Idaho, Washington, and Oregon.

現在來談談西北天然水。總體而言，我們的水和廢水公用事業客戶群在過去 12 個月中成長了 5.9%，其中包括三次收購。在我們繼續管理強大的收購管道的同時，我們仍將保持專注和自律，尋求創造價值的正確機會。2025 年，我們預計將更新愛達荷州、華盛頓州和俄勒岡州等多家水務公司的供水費率。

These requests are primarily related to recovery of critical infrastructure investments as we continue to find these systems need substantial improvements. During 2025, we expect to invest approximately $60 million in our water utilities to replace end-of-life infrastructure, improve our water and wastewater treatment facilities, and support continued growth in our communities. We are enthusiastic about the long-term earnings power of Northwest Natural Water and believe they are on track for the year.

這些請求主要與恢復關鍵基礎設施投資有關，因為我們不斷發現這些系統需要進行實質改善。2025 年，我們預計將在水務設施上投資約 6,000 萬美元，以更換報廢基礎設施，改善我們的水和廢水處理設施，並支持我們社區的持續發展。我們對西北天然水公司的長期獲利能力充滿信心，並相信該公司今年的獲利能力將步入正軌。

Now a brief update on Northwest Natural Renewables. Both of our renewable natural gas projects with EDL began operations last year. Production levels have been meeting our expectations, and operations are running smoothly. These facilities and our related offtake contracts provided a full quarter of steady cash flows and earnings during the first quarter of 2025, and we expect this to continue going forward.

現在簡單介紹一下西北天然再生能源的情況。我們與 EDL 合作的兩個再生天然氣項目於去年開始營運。生產水準一直符合我們的預期，營運運作順利。這些設施和我們相關的承購合約在 2025 年第一季提供了整整一個季​​度的穩定現金流和收益，我們預計這種情況將持續下去。

I'd like to turn to slide 6 and highlight a few items on the Pacific Northwest Energy system. Northwest Natural's gas system today is perhaps more essential to the region than ever, and we expect that to continue, given the heightened focus on reliability and affordability. Our system delivers about 50% more energy than any other Oregon utility, gas or electric, over the course of the year and reliably serves peak heating loads throughout the winter.

我想翻到第 6 張投影片並重點介紹太平洋西北能源系統的幾個項目。如今，西北天然氣公司的天然氣系統對該地區來說可能比以往任何時候都更加重要，我們預計，鑑於對可靠性和可負擔性的高度關注，這種情況將持續下去。我們的系統在全年中輸送的能源比俄勒岡州任何其他公用事業公司（無論是天然氣還是電力）多出約 50%，並且在整個冬季可靠地滿足尖峰供暖負載。

The fact that we are delivering more energy than any other utility is even more remarkable when you consider that electric utilities in Oregon consume more natural gas for power generation than all the state's gas utilities combined. And as you can see from this chart of IEA data, natural gas usage for power production has been increasing significantly in recent years as they shift away from coal and bring on more intermittent renewables. With these grid dynamics as a backdrop, recent analysis shows under a variety of operating conditions, gas furnaces are not only more cost effective for customers, but they are also resulting in lower emissions over electric heat pumps for most of the people we serve. These findings are consistent with analysis recently conducted for other regions, which evaluated marginal emissions for the grid and the massive electric build-out that would be required to serve gas heating loads.

當您考慮到俄勒岡州的電力公司消耗的發電天然氣比該州所有天然氣公司消耗的天然氣總和還要多時，我們比任何其他公用事業公司輸送的能源都多這一事實就更加引人注目了。從國際能源總署的數據圖表中可以看出，近年來，隨著人們逐漸放棄煤炭，轉而使用更多間歇性再生能源，用於發電的天然氣使用量大幅增加。以這些電網動態為背景，最近的分析表明，在各種運行條件下，燃氣爐不僅對客戶來說更具成本效益，而且對於我們服務的大多數人來說，它們比電熱泵的排放量更低。這些發現與最近對其他地區進行的分析一致，該分析評估了電網的邊際排放量以及滿足燃氣供熱負荷所需的大規模電力建設。

This clearly highlights the value and efficiency of our gas distribution and storage infrastructure in the Northwest. And this is why we will continue to work closely with other utilities, with policymakers and with stakeholders to emphasize these important facts in support of energy policy that is focused on the most reliable and cost-effective ways to meet our climate goals.

這清楚地凸顯了我們西北地區天然氣分配和儲存基礎設施的價值和效率。這就是為什麼我們將繼續與其他公用事業公司、政策制定者和利益相關者密切合作，強調這些重要事實，以支持以最可靠和最具成本效益的方式實現我們的氣候目標的能源政策。

In conclusion, I am happy to report that all of our businesses are in a strong financial position, and we are well poised for future growth. With that, let me turn it over to Ray to cover the financials in more detail.

最後，我很高興地報告，我們所有的業務都處於強勁的財務狀況，我們為未來的成長做好了準備。接下來，讓我將話題交給雷，讓他更詳細地介紹一下財務狀況。

Thank you, Justin, and good morning, everyone. Turning to slide 7. As you have seen in the earnings release and as we mentioned on our last call, we have begun providing financial data for our SiEnergy Gas Utility and Northwest Natural Water Utility segments. You can find additional information by segment in the 10-Q we expect to file later today. We reported adjusted net income of $91.8 million or $2.28 per share for the first quarter of 2025 compared to net income of $63.8 million or $1.69 per share for the same period in 2024. The increase reflected strong results across all our business segments.

謝謝你，賈斯汀，大家早安。翻到幻燈片 7。正如您在收益報告中看到的以及我們在上次電話會議上提到的那樣，我們已經開始為我們的 SiEnergy Gas Utility 和 Northwest Natural Water Utility 部門提供財務數據。您可以在我們預計今天稍後提交的 10-Q 報表中按部分找到更多資訊。我們報告稱，2025 年第一季的調整後淨收入為 9,180 萬美元，即每股 2.28 美元，而 2024 年同期的淨收入為 6,380 萬美元，即每股 1.69 美元。這一成長反映了我們所有業務部門的強勁業績。

We saw new rates for our gas utility in Oregon, contributions from SiEnergy, higher income from Northwest Natural Water related to new rates and acquisitions, and a full quarter of revenues from our Renewables business. These items were partially offset by higher depreciation and interest expense. For our Northwest Natural Gas segment, net income increased $21.5 million or $0.42 per share. Margin increased $38.7 million, mainly due to new rates in Oregon effective November 1, 2024.

我們看到俄勒岡州天然氣公用事業公司的新費率、SiEnergy 的貢獻、與新費率和收購相關的西北天然水收入的增加，以及再生能源業務整整四分之一的收入。這些項目被更高的折舊和利息費用部分抵銷。我們的西北天然氣部門的淨收入增加了 2,150 萬美元，即每股 0.42 美元。利潤增加了 3,870 萬美元，主要是由於俄勒岡州於 2024 年 11 月 1 日生效的新費率。

O&M increased $2.2 million, reflecting higher payroll and benefit expense. Depreciation and general taxes increased $4.8 million due to continued investment in our system. Other expense increased $1.4 million, mainly driven by higher pension costs. SiEnergy provided net income of $5.5 million or $0.14 per share for the first quarter of 2025. Margin and net income results met our expectations for the quarter. Historically, roughly 30% of margin for SiEnergy is earned in the first quarter.

O&M 增加了 220 萬美元，反映了工資和福利支出的增加。由於對我們系統的持續投資，折舊和一般稅收增加了 480 萬美元。其他支出增加了 140 萬美元，主要原因是退休金成本增加。SiEnergy 2025 年第一季的淨收入為 550 萬美元，即每股 0.14 美元。利潤率和淨收入結果符合我們對本季的預期。從歷史上看，SiEnergy 大約 30% 的利潤是在第一季獲得的。

Our Water segment net income increased $2.4 million or $0.06 per share. The key drivers were new rates at our largest water and wastewater utility in Arizona and additional revenues from the Puttman utilities after the acquisition in September 2024. \

我們的水務部門淨收入增加了 240 萬美元，即每股 0.06 美元。關鍵驅動因素是亞利桑那州最大的供水和污水處理公用事業的新費率，以及 2024 年 9 月收購 Puttman 公用事業後獲得的額外收入。\

Finally, moving to our other businesses. The other category included our interstate storage services and asset management services, Northwest Natural Renewables and holding company expenses. Collectively, the other businesses provided an adjusted net loss of $2.6 million, which was an increase of $1.4 million or $0.06 per share compared to the same period last year. This was primarily due to higher interest expense at the holding company, partially offset by higher revenues from the renewables business as it completed its first full quarter of operations.

最後，談談我們的其他業務。另一類包括我們的州際儲存服務和資產管理服務、西北天然再生能源和控股公司費用。其餘業務的調整後淨虧損總計 260 萬美元，較去年同期增加 140 萬美元或每股 0.06 美元。這主要是由於控股公司的利息支出增加，但其完成第一個完整營運季度後可再生能源業務的收入增加部分抵消了這一影響。

Turning to our growth outlook and guidance on slide 8. The company reaffirmed annual 2025 adjusted earnings guidance today in the range of $2.75 per share and $2.95 per share. First-quarter results were in line with our expectations, and we remain confident in our full-year guidance. As a reminder, our gas utility earnings are seasonal with the majority of revenues and earnings generated in the first and fourth quarters during the winter heating months. We expect the quarterly profile for 2025 for the consolidated company to be roughly similar to the past couple of years. We continue to expect SiEnergy and Water to each provide approximately $0.25 to $0.30 of earnings per share this year.

轉向第 8 張投影片上的成長前景和指導。該公司今天重申了 2025 年年度調整後獲利預期，範圍為每股 2.75 美元至每股 2.95 美元。第一季的業績符合我們的預期，我們對全年業績指引仍然充滿信心。提醒一下，我們的天然氣公用事業收入具有季節性，大部分收入和收益是在冬季供暖月份的第一季和第四季度產生的。我們預計合併後公司 2025 年的季度業績將與過去幾年大致相同。我們繼續預期 SiEnergy 和 Water 今年每股盈餘將分別約為 0.25 美元至 0.30 美元。

Regarding tariffs, we have analyzed and are actively monitoring the new tariff regulations, negotiations, impact on our supply chain, and the effect on our businesses. At this time, we do not expect a material effect on 2025 financial results from tariffs.

關於關稅，我們已經分析並積極監控新的關稅法規、談判、對我們供應鏈的影響以及對我們業務的影響。目前，我們預計關稅不會對 2025 年的財務表現產生重大影響。

Related to organic customer growth, collectively, our utilities grew 2.2% during the first quarter on an annualized basis. For 2025, we continue to project 2% to 2.5% organic customer growth with SiEnergy expected to contribute an impressive 20% or more. I am happy to report we are on track based on first-quarter results.

與有機客戶成長相關，我們的公用事業在第一季總體上按年率計算增長了 2.2%。到 2025 年，我們繼續預測有機客戶成長率為 2% 至 2.5%，其中 SiEnergy 預計將貢獻 20% 或更多。我很高興地報告，根據第一季的業績，我們的一切進展順利。

Turning to our capital expenditures. For 2025, consolidated capital expenditures are expected to be in the range of $450 million to $500 million, anchored by significant projects at our Northwest Natural Gas Utility related to modernizing end-of-life meters, system reinforcement, and gas storage upgrades. Our CapEx projections only include line of sight projects that have been specifically identified and estimated. It doesn't include any pending or future acquisitions, including the Hughes transaction. Longer term, we continue to expect an earnings per share growth rate of 4% to 6% compounded annually from 2025 adjusted EPS.

談到我們的資本支出。到 2025 年，預計合併資本支出將在 4.5 億美元至 5 億美元之間，主要由西北天然氣公用事業公司涉及報廢儀表現代化、系統加固和天然氣儲存升級等重大項目支撐。我們的資本支出預測僅包括已明確確定和估計的視線項目。它不包括任何未決或未來的收購，包括休斯交易。從長期來看，我們繼續預期從 2025 年調整後的每股盈餘來看，每股盈餘年複合成長率將達到 4% 至 6%。

Moving to slide 9. Our objective remains to keep our balance sheet strong with ample liquidity. At March 31, 2025, we had liquidity of more than $600 million with significant availability on our lines of credit and cash on hand. We continue to see modest regular common equity financing needs in 2025, with equity issuances expected to be in the range of $65 million to $75 million. Even with the Hughes acquisition, we expect to be within our original financing range.

移至幻燈片 9。我們的目標仍然是保持強勁的資產負債表和充足的流動性。截至 2025 年 3 月 31 日，我們的流動資金超過 6 億美元，我們的信用額度和現金充足。我們預計 2025 年常規普通股融資需求將保持適度，預計股票發行額將介於 6,500 萬美元至 7,500 萬美元之間。即使收購了休斯，我們也預期融資額仍將維持在原來的範圍內。

In March, we completed a $325 million junior subordinated debenture issuance, successfully securing permanent financing for the SiEnergy transaction. In 2025, we have no material debt maturities but do expect to refinance existing debt of approximately $150 million currently at SiEnergy.

3月份，我們完成了3.25億美元的次級債券發行，成功為SiEnergy交易獲得了永久融資。2025 年，我們沒有重大債務到期，但預計將為 SiEnergy 目前約 1.5 億美元的現有債務進行再融資。

In summary, we are off to a strong start in 2025. Our expectations for the full year remain in line with our guidance, and we continue to expect to maintain a strong balance sheet. Thanks for joining us this morning. With that, I'll open it up for questions.

總而言之，我們在 2025 年取得了良好的開端。我們對全年的預期與我們的指導保持一致，並且我們繼續期望保持強勁的資產負債表。感謝您今天上午加入我們。好了，現在我可以開始回答問題了。

(Operator Instructions) Selman Akyol, Stifel.

（操作員指示）Selman Akyol，Stifel。

This is Tyler on for Selman. I wanted to ask about the pickup in 2025 on the water side. Obviously, '25 looks pretty favorable. And I'm just wondering, as you make go into these rate cases, again, for safety investments, just sort of what your all's outlook looks like in Arizona and your other geographies for water.

這是泰勒 (Tyler) 代替塞爾曼 (Selman) 上場的。我想問一下 2025 年水上皮卡的情況。顯然，25 看起來相當有利。我只是想知道，當您再次深入討論這些安全投資的費率案例時，您對亞利桑那州和其他地區的水資源前景如何。

Good morning, Tyler. Thank you for the question. The water utilities, the increase in Q1, the results that you're seeing is largely driven by rate case activity from last year, the largest of which was the Foothills rate case with new rates in effect late last year. We continue to file rate cases across our water service territories. Most of these are small on an individual basis.

早安，泰勒。謝謝你的提問。對於水務公司而言，第一季的成長，您所看到的結果很大程度上是由去年的費率案例活動推動的，其中最大的案例是 Foothills 費率案例，新的費率於去年年底生效。我們將繼續在供水服務區域內提起費率訴訟。從個體角度來看，其中大多數規模都很小。

But you'll see that over time, as we continue to file rate cases and recover the investments in rates that growth will continue and earnings contribution will continue from Northwest Natural Water. We anticipate about $0.25 to $0.30 earnings contribution in 2025.

但隨著時間的推移，你會看到，隨著我們繼續提交費率案例並收回費率投資，增長將繼續，西北天然水的盈利貢獻也將繼續。我們預計 2025 年的收益貢獻約為 0.25 美元至 0.30 美元。

And Tyler, just to put some additional numbers around it. That $0.25 to $0.30, that translates to about $10 million to $15 million in net income on top of the [$5.5 million] that you saw in Q1 and then over the next couple of years, an EPS growth rate of 10% to 15%.

泰勒，我只是想在它周圍添加一些數字。這 0.25 美元到 0.30 美元，意味著在第一季的 [550 萬美元] 基礎上，淨收入將增加約 1000 萬到 1500 萬美元，然後在接下來的幾年裡，每股收益增長率將達到 10% 到 15%。

Got that. Appreciate the color on that. Also, if I could ask on the Hughes acquisition, the backlog for that, is that sort of similar to that of SiEnergy and that it's primarily residential and commercial as opposed to any like industrial customers in that?

明白了。欣賞它的色彩。另外，如果我可以問一下關於休斯收購案的情況，其積壓訂單是否與 SiEnergy 的類似，並且主要針對住宅和商業客戶，而不是任何類似的工業客戶？

Yeah, that's right. It's primarily residential and commercial customers. There's no transmission business within the Hughes Gas entity. So it's very similar to SiEnergy. And in fact, there's a lot of geographic overlap surrounding Houston with these assets. So it's a very logical acquisition for SiEnergy. It adds a little more scale and growth for us in the Texas jurisdiction.

是的，沒錯。主要針對的是住宅和商業客戶。休斯天然氣公司內部沒有輸送業務。所以它與 SiEnergy 非常相似。事實上，休士頓週邊的這些資產在地理上有許多重疊。因此對於 SiEnergy 來說，這是一次非常合乎邏輯的收購。它為我們在德克薩斯州的管轄範圍增加了一些規模和增長。

All right. Thank you, guys. [Well] done.

好的。謝謝你們。做得好。

Thanks, Tyler.

謝謝，泰勒。

Thanks, Tyler.

謝謝，泰勒。

(Operator Instructions) I can confirm we will conclude the question-and-answer session there, and I'd like to hand it back to Justin for some final closing comments.

（操作員指示）我可以確認我們將在那裡結束問答環節，我想將其交還給賈斯汀，讓他發表一些最後的結束語。

Great. Well, thanks, everybody, for participating and listening in on the call this morning. 2025 is off to a great start. Wishing everybody a safe day today, and we'll talk to you soon.

偉大的。好吧，感謝大家今天上午的參與和收聽電話會議。 2025 年開局良好。祝大家今天平安，我們很快會再聯絡您。

Thank you all for dialing in for the Northwest Natural Holdings Company's Q1 2025 earnings call. Today's call has concluded. Thank you for your participation, and you may now disconnect.

感謝大家撥打西北天然控股公司 2025 年第一季財報電話會議。今天的電話會議已經結束。感謝您的參與，您現在可以斷開連接。