A natural gas utility's first-half results came in above internal targets, and management is now signaling confidence the year will finish at the higher end of its forecast. Earnings per share, the portion of a company's profit allocated to each share of stock, reached $2.33 through the first six months for Northwest Natural Holdings (NYSE: NWN), above the adjusted $2.28 from the same period of 2025. The company expects to finish 2026 in the top half of its $2.95 to $3.15 annual guidance range.
Second quarter in plain numbers
Northwest Natural reported second-quarter earnings per share of $0.01, unchanged from the prior-year period but above management's own expectations. The Oregon-based utility invested more than $165 million in gas-system infrastructure during the first half of 2026, covering customer growth, system reliability and modernization. Chief Executive Officer Justin Palfreyman attributed the period's performance to execution across the company's gas, Texas and water businesses, alongside progress on regulatory matters and growth projects.
Washington order lands; Oregon still moving
Regulators in Washington state granted more than 80% of Northwest Natural's requested revenue-requirement increase. The order set a 50% equity, 50% long-term debt capital structure and a 9.5% return on equity. New Washington rates took effect Aug. 1.
Oregon is running on a longer timeline. A multiparty settlement in the Oregon alternative rate mechanism proceeding would establish a $13 million revenue requirement, down from the company's original $15.6 million request. An Oregon Public Utility Commission order is expected later in 2026, with new rates targeted for Oct. 31. Oregon's multiyear rate-plan rulemaking is also continuing: Phase I is done, Phase II is underway, and the full process is projected to conclude before the end of 2027. Northwest Natural expects to file its first multiyear general rate case under the prospective rules in 2028, with resulting rates effective in 2029.
SiEnergy grows; MX3 holds its schedule
SiEnergy, the company's Texas gas utility, added organic customers at a rate exceeding 15% in the second quarter and now carries more than 260,000 future meters in its backlog. The unit posted second-quarter earnings per share of $0.05, up from $0.03 a year earlier. Chief Financial Officer Ray Kaszuba credited customer growth and a full quarter of contribution from Pines, acquired in June 2025. SiEnergy filed a rate case with the Railroad Commission of Texas on May 4 and expects new rates later in 2026.
The company's MX3 gas-storage expansion, a $300 million federally regulated project, remains on schedule after a permit appeal was filed with the Land Use Board of Appeals. MX3 is contracted under 25-year agreements at a 12.5% return on equity and is expected to add four to five billion cubic feet of capacity. If Northwest Natural receives a notice to proceed by its target of year-end 2027, it plans to raise its long-term earnings-growth target to 5% to 7%, from the current 4% to 6% through 2030. The company ended the quarter with approximately $628 million of available liquidity.