NWN Stock ,We are continuing to witness good financial performance and expect this year’s results to be on par with the expectations we had previously issued. Frank will discuss the more detailed financials in the next few minutes. Today, I’ll go through some indicators of the economy and present a synopsis of Northwest Natural’s Oregon general rate case order.
NWN Stock ,Northwest Natural Returns vs. S&P
| 1 YEAR | 5 YEAR | 5 YEAR ANNUALIZED | SINCE IPO | |
|---|---|---|---|---|
| NWN | +8.85% | -9.26% | -1.92% | +891% |
| S&P | -7.62% | +49.76% | +8.40% | +2,739% |
Assets
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Net Cash | $108.56M | +456.6% |
| Accounts Receivable | $65.54M | +22.9% |
| Inventory | 98.725 | +64.5% |
Liabilities
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Long Term Debt | $1.37B | +37.1% |
| Short Term Debt | $192.98M | -51.9% |
Ratios
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Return On Assets | 1.9% | -13.8% |
| Return On Invested Capital | 2.4% | -0.2% |
Cash Flow
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Free Cash Flow | -$114.75M | +20.5% |
| Operating Free Cash Flow | -$30.60M | +143.7% |
Northwest Natural Holding Company
NWN Stock ,We are continuing to witness good financial performance and expect this year’s results to be on par with the expectations we had previously issued. Frank will discuss the more detailed financials in the next few minutes. Today, I’ll go through some indicators of the economy and present a synopsis of Northwest Natural’s Oregon general rate case order.
I’ll close with an update about hydrogen projects in the gas utility as well as some recent developments from our competitive renewables and water business. A few thoughts about the state of the economy. For our Gas Utility Service area located in Oregon and Washington we continue to see growth in employment figures, while the housing market slows down from the highs it reached in 2021. In general, Oregon is trending similar to the national average, however we are keeping a close eye on the economic environment.
The market for labor remains steady. In Oregon for instance the unemployment rate was 3.8 percent at the end of September in 2022. Likely, the health of single families and activity are cooling because interest rates are rising. Single-family permit permits have moderated from the high levels of 2021.
The median price for selling homes was down by 4.7 percent for the quarter that ended in the middle of the year. The supply of homes available to sell for sale in Portland Metro Portland Metro area remains very constrained with just 2.2 months of inventory. Overall , the growth rate is about similar to our estimates. We’ve already seen an increase in mixed-use multifamily developments, however we expect a number of developments to start to go live during the fourth quarter.
Furthermore the supply chain challenges have put customer project conversions on a more extended runway. Despite all this we have added more than 8800 new customers in the past 12 months, which is a growth rate of around 1.1 percent. Our wastewater and water utilities continued to function in areas with good economic foundation. The rates of unemployment in our largest water service areas vary between 2.8 percent in Idaho and 4percent in Texas.
There was growth across our water utility companies, and some areas of outperformance. Texas remains an extraordinary -an extraordinary market, with our wastewater and water utilities registering an organic growth of nearly 11. Housing in Idaho is robust, and Falls Water utility providing 5% growth. Falls Water utility providing 5 percent growth. In a cumulative perspective the water and wastewater utility services grew by three percent in the last twelve months.
Alongside this organic growth our recent deal with Far West in Arizona increased the number of customers we serve with water by 70%, bringing it to 61,000 customers. As a whole the total customer base increased by 5.3 percent, which includes the recent additions. We will now present a review of the Oregon general rates for our gas utility. In October the month of October, in October, the Oregon Public Utility Commission issued an order that approved a number of multi-party settlements.
