Northwest Natural Reports Record $2.93 EPS, $2.6–$2.9B Capex Plan
Northwest Natural reported record 2025 adjusted EPS of $2.93, up from $2.33, driven by new Oregon rates, strong organic customer growth and diversification into water and Texas gas utilities. The company unveiled a $2.6–$2.9 billion capex plan through 2030, a 1.5% interim rate increase and a $300 million MX3 gas storage expansion.
1. Record 2025 Adjusted EPS and Customer Growth
Northwest Natural delivered a record adjusted EPS of $2.93 for full-year 2025, up from $2.33 in 2024. This growth was powered by new Oregon gas rates, strong organic customer additions—its strongest in nearly two decades—and contributions from its water and Texas gas utility segments.
2. Strategic Diversification and Capex Outlook
Management highlighted diversification into water and Texas local distribution utilities, with the water segment contributing $0.35 per share versus an expected $0.25–$0.30. The company outlined a long-term capital investment program of $2.6–$2.9 billion through 2030, including $500–$550 million in 2026, funded via operating cash flow, ~$150 million of new debt and $40–$50 million of equity.
3. Regulatory Settlements and Interim Rate Mechanism
Northwest Natural settled its Oregon rate case with new rates effective October 31, 2025, and reached a settlement in principle in Washington. An interim rate proposal would raise customer rates by 1.5% on October 31, 2026, intended to fund capital work and mitigate future rate shock while multi-year rate case rulemaking progresses.
4. MX3 Gas Storage Expansion Project
The company announced the MX3 expansion at its Mist facility, adding 4–5 BCF of storage capacity at an estimated $300 million cost. Backed by 25-year customer contracts with a fixed 12.5% ROE and FERC approval, the project targets in-service by end of 2029 and is expected to lift long-term EPS growth to 5%–7% once initiated.