Northwest Natural Holding CoNWN
Northwest Natural Holding Co Revenue Disclosure
REVENUE
The following table presents disaggregated revenue from continuing operations:
| In thousands | NWN Gas Utility | SiEnergy Gas Utility (1) | NWN Water Utility | NW Holdings Other | NW Holdings | ||||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||
| Natural gas sales | $ | 1,014,807 | $ | 64,740 | $ | — | $ | 3,463 | $ | 1,083,010 | |||||||||||||||||||
| Gas storage revenue, net | — | — | — | 16,774 | 16,774 | ||||||||||||||||||||||||
| Asset management revenue, net | — | — | — | 6,816 | 6,816 | ||||||||||||||||||||||||
| Water and wastewater revenue | — | — | 65,646 | — | 65,646 | ||||||||||||||||||||||||
| Appliance retail center revenue | — | — | — | 4,738 | 4,738 | ||||||||||||||||||||||||
| Renewable natural gas sales | — | — | — | 29,157 | 29,157 | ||||||||||||||||||||||||
| Other revenue | 3,850 | — | — | — | 3,850 | ||||||||||||||||||||||||
| Revenue from contracts with customers | 1,018,657 | 64,740 | 65,646 | 60,948 | 1,209,991 | ||||||||||||||||||||||||
| Alternative revenue | 60,919 | 1,244 | — | — | 62,163 | ||||||||||||||||||||||||
| Leasing revenue | 17,209 | — | — | — | 17,209 | ||||||||||||||||||||||||
| Total operating revenues | $ | 1,096,785 | $ | 65,984 | $ | 65,646 | $ | 60,948 | $ | 1,289,363 | |||||||||||||||||||
| 2024 | |||||||||||||||||||||||||||||
| Natural gas sales | $ | 1,035,839 | $ | — | $ | — | $ | 33 | $ | 1,035,872 | |||||||||||||||||||
| Gas storage revenue, net | — | — | — | 15,119 | 15,119 | ||||||||||||||||||||||||
| Asset management revenue, net | — | — | — | 4,601 | 4,601 | ||||||||||||||||||||||||
| Water and wastewater revenue | — | — | 52,036 | — | 52,036 | ||||||||||||||||||||||||
| Appliance retail center revenue | — | — | — | 5,089 | 5,089 | ||||||||||||||||||||||||
| Renewable natural gas sales | — | — | — | 428 | 428 | ||||||||||||||||||||||||
| Other revenue | 3,111 | — | — | — | 3,111 | ||||||||||||||||||||||||
| Revenue from contracts with customers | 1,038,950 | — | 52,036 | 25,270 | 1,116,256 | ||||||||||||||||||||||||
| Alternative revenue | 20,246 | — | — | — | 20,246 | ||||||||||||||||||||||||
| Leasing revenue | 16,492 | — | — | — | 16,492 | ||||||||||||||||||||||||
| Total operating revenues | $ | 1,075,688 | $ | — | $ | 52,036 | $ | 25,270 | $ | 1,152,994 | |||||||||||||||||||
| 2023 | |||||||||||||||||||||||||||||
| Natural gas sales | $ | 1,109,223 | $ | — | $ | — | $ | — | $ | 1,109,223 | |||||||||||||||||||
| Gas storage revenue, net | — | — | — | 12,041 | 12,041 | ||||||||||||||||||||||||
| Asset management revenue, net | — | — | — | 5,942 | 5,942 | ||||||||||||||||||||||||
| Water and wastewater revenue | — | — | 38,852 | — | 38,852 | ||||||||||||||||||||||||
| Appliance retail center revenue | — | — | — | 4,240 | 4,240 | ||||||||||||||||||||||||
| Renewable natural gas sales | — | — | — | — | — | ||||||||||||||||||||||||
| Other revenue | 2,929 | — | — | — | 2,929 | ||||||||||||||||||||||||
| Revenue from contracts with customers | 1,112,152 | — | 38,852 | 22,223 | 1,173,227 | ||||||||||||||||||||||||
| Alternative revenue | 8,198 | — | — | — | 8,198 | ||||||||||||||||||||||||
| Leasing revenue | 16,050 | — | — | — | 16,050 | ||||||||||||||||||||||||
| Total operating revenues | $ | 1,136,400 | $ | — | $ | 38,852 | $ | 22,223 | $ | 1,197,475 | |||||||||||||||||||
(1) Prior year comparatives are not provided for SiEnergy as it was acquired by NW Holdings January 7, 2025.
The following table present disaggregated revenue of NW Natural:
| In thousands | NWN Gas Utility | NW Natural Other | NW Natural | |||||||||||||||||
| 2025 | ||||||||||||||||||||
| Natural gas sales | $ | 1,014,807 | $ | — | $ | 1,014,807 | ||||||||||||||
| Gas storage revenue, net | — | 16,774 | 16,774 | |||||||||||||||||
| Asset management revenue, net | — | 6,816 | 6,816 | |||||||||||||||||
| Appliance retail center revenue | — | 4,738 | 4,738 | |||||||||||||||||
| Other revenue | 3,850 | — | 3,850 | |||||||||||||||||
| Revenue from contracts with customers | 1,018,657 | 28,328 | 1,046,985 | |||||||||||||||||
| Alternative revenue | 60,919 | — | 60,919 | |||||||||||||||||
| Leasing revenue | 17,209 | — | 17,209 | |||||||||||||||||
| Total operating revenues | $ | 1,096,785 | $ | 28,328 | $ | 1,125,113 | ||||||||||||||
| 2024 | ||||||||||||||||||||
| Natural gas sales | $ | 1,035,839 | $ | — | $ | 1,035,839 | ||||||||||||||
| Gas storage revenue, net | — | 15,119 | 15,119 | |||||||||||||||||
| Asset management revenue, net | — | 4,601 | 4,601 | |||||||||||||||||
| Appliance retail center revenue | — | 5,089 | 5,089 | |||||||||||||||||
| Other revenue | 3,111 | — | 3,111 | |||||||||||||||||
| Revenue from contracts with customers | 1,038,950 | 24,809 | 1,063,759 | |||||||||||||||||
| Alternative revenue | 20,246 | — | 20,246 | |||||||||||||||||
| Leasing revenue | 16,492 | — | 16,492 | |||||||||||||||||
| Total operating revenues | $ | 1,075,688 | $ | 24,809 | $ | 1,100,497 | ||||||||||||||
| 2023 | ||||||||||||||||||||
| Natural gas sales | $ | 1,109,223 | $ | — | $ | 1,109,223 | ||||||||||||||
| Gas storage revenue, net | — | 12,041 | 12,041 | |||||||||||||||||
| Asset management revenue, net | — | 5,942 | 5,942 | |||||||||||||||||
| Appliance retail center revenue | — | 4,240 | 4,240 | |||||||||||||||||
| Other revenue | 2,929 | — | 2,929 | |||||||||||||||||
| Revenue from contracts with customers | 1,112,152 | 22,223 | 1,134,375 | |||||||||||||||||
| Alternative revenue | 8,198 | — | 8,198 | |||||||||||||||||
| Leasing revenue | 16,050 | — | 16,050 | |||||||||||||||||
| Total operating revenues | $ | 1,136,400 | $ | 22,223 | $ | 1,158,623 | ||||||||||||||
NW Natural's revenue represents the majority of NW Holdings' revenue and is recognized when the obligation to customers is satisfied and in the amount expected to be received in exchange for transferring goods or providing services. Revenue from contracts with customers contain one performance obligation that is generally satisfied over time as the customer receives the natural gas. The transaction price is determined by a set price agreed upon in the contract or dependent on regulatory tariffs. Customer accounts are settled on a monthly basis or paid at time of sale. Based on historical experience, it is probable that we will collect substantially all of the consideration to which we are entitled. We evaluated the probability of collection in accordance with the current expected credit losses standard.
NW Holdings and NW Natural do not have any material contract assets, as net accounts receivable and accrued unbilled revenue balances are unconditional and only involve the passage of time until such balances are billed and collected. NW Holdings and NW Natural do not have any material contract liabilities.
Revenue taxes are included in operating revenues with an equal and offsetting expense recognized in operating expenses in the consolidated statements of comprehensive income. Revenue-based taxes are primarily franchise taxes, which are collected from NWN Gas Utility customers and remitted to taxing authorities.
Components of Revenue
The components of NW Holdings' revenue, by reportable business segment, are explained below.
NWN Gas Utility
Natural Gas Sales
NW Natural's primary source of revenue is providing natural gas to customers in the NWN Gas Utility service territory, which includes residential, commercial, industrial and transportation customers. NWN Gas Utility revenue is generally recognized over time upon delivery of the gas commodity or service to the customer, and the amount of consideration received and recognized as revenue is dependent on the Oregon and Washington tariffs. There is no right of return or warranty for services provided. Revenues include firm and interruptible sales and transportation services, franchise taxes recovered from the customer, late payment fees, service fees, and accruals for gas delivered but not yet billed (accrued unbilled revenue). The accrued unbilled revenue balance is based on estimates of deliveries during the period from the last meter reading and management judgment is required for a number of factors used in this calculation, including customer use and weather factors.
Customer accounts are to be paid in full each month and there is no significant financing component for this source of revenue. Due to the election of the right to invoice practical expedient, we do not disclose the value of unsatisfied performance obligations.
Alternative Revenue
Weather normalization (WARM) and decoupling mechanisms are considered to be alternative revenue programs. Alternative revenue programs are considered to be contracts between NW Natural and its regulator and are excluded from revenue from contracts with customers.
Leasing Revenue
Leasing revenue primarily consists of revenues from NW Natural's North Mist Storage contract with PGE in support of PGE's gas-fired electric power generation facilities under an initial 30-year contract with options to extend, totaling up to an additional 50 years upon mutual agreement of the parties. The facility is accounted for as a sales-type lease with regulatory accounting deferral treatment. The investment is included in rate base under an established cost-of-service tariff schedule, with revenues recognized according to the tariff schedule and profit upon commencement was deferred and will be amortized over the lease term. Leasing revenue also contains rental revenue from small leases of property owned by NW Natural to third parties. The majority of these transactions are accounted for as operating leases and the revenue is recognized over the term of the lease agreement. Lease revenue is excluded from revenue from contracts with customers. See Note 7 for additional information.
SiEnergy Gas Utility
SiEnergy Gas Utility's primary source of revenue is providing natural gas to customers in the SiEnergy service territory, which includes residential and commercial customers. SiEnergy revenue is generally recognized over time upon delivery of the gas commodity or service to the customer, and the amount of consideration received and recognized as revenue is dependent on the Texas tariff. There is no right of return or warranty for services provided.The accrued unbilled revenue balance is based on estimates of deliveries during the period from the last meter reading and management judgment is required for a number of factors used in this calculation, including customer use and weather factors.
Customer accounts are to be paid in full each month and there is no significant financing component for this source of revenue. Due to the election of the right to invoice practical expedient, we do not disclose the value of unsatisfied performance obligations.
Alternative Revenue
Weather normalization (WNA) is considered to be an alternative revenue program. An alternative revenue program is considered to be a contract between SiEnergy and its regulators and are excluded from revenue from contracts with customers.
NWN Water Utility
NWN Water Utility provides water and wastewater services to customers. Water and wastewater service revenue is generally recognized over time upon delivery of the water commodity or service to the customer, and the amount of consideration received and recognized as revenue is dependent on the tariffs established in the states we operate. There is no right of return or warranty for services provided.
Customer accounts are to be paid in full each month, bi-monthly, or quarterly and as such, there is no significant financing component for this source of revenue. Due to the election of the right to invoice practical expedient, we do not disclose the value of unsatisfied performance obligations.
NW Holdings Other
Renewable Natural Gas Sales
NWN Renewables is an unregulated subsidiary of NW Holdings established to pursue investments in renewable natural gas (RNG) activities. NWN Renewables' primary source of revenue is from the sale of RNG under long-term contracts. RNG revenue is generally recognized over time upon delivery of the gas commodity to the customer at the designated delivery point and the amount of consideration received and recognized as revenue is dependent on a variable pricing model defined per the contract. Customer accounts are to be paid in full each month and as such, there is no significant financing component for this source of revenue. Due to the election of the right to invoice practical expedient, we do not disclose the value of unsatisfied performance obligations.
NW Natural Gas Storage Revenue
NW Natural's other revenue includes gas storage activity, which includes Interstate Storage Services used to store natural gas for customers. Gas storage revenue is generally recognized over time as the gas storage service is provided to the customer and the amount of consideration received and recognized as revenue is dependent on set rates defined per the storage agreements. Noncash consideration in the form of dekatherms of natural gas is received as consideration for providing gas injection services to gas storage customers. This noncash consideration is measured at fair value using the average spot rate. Customer accounts are generally paid in full each month, and there is no right of return or warranty for services provided. Revenues include firm and interruptible storage services, net of the profit sharing amount refunded to NWN Gas Utility customers.
NW Natural Asset Management Revenue
Revenues include the optimization of storage assets and pipeline capacity by a third-party and are provided net of the profit sharing amount refunded to NWN Gas Utility customers. Certain asset management revenues received are recognized over time using a straight-line approach over the term of each contract, and the amount of consideration received and recognized as revenue is dependent on a variable pricing model. Variable revenues earned above guaranteed amounts are estimated and recognized at the end of each period using the most likely amount approach. Additionally, other asset management revenues may be based on a fixed rate. Generally, asset management accounts are settled on a monthly basis.
As of December 31, 2025, unrecognized revenue for the fixed component of the transaction price related to gas storage and asset management revenue was approximately $114.7 million. Of this amount, approximately $26.8 million will be recognized in 2026, $20.3 million in 2027, $16.8 million in 2028, $16.8 million in 2029, $16.3 million in 2030 and $17.7 million thereafter. The amounts presented here are calculated using current contracted rates.
NW Natural Appliance Retail Center Revenue
NW Natural owns and operates an appliance store that is open to the public, where customers can purchase natural gas home appliances. Revenue from the sale of appliances is recognized at the point in time in which the appliance is transferred to the third party responsible for delivery and installation services and when the customer has legal title to the appliance. It is required that the sale be paid for in full prior to transfer of legal title. The amount of consideration received and recognized as revenue varies with changes in marketing incentives and discounts offered to customers.
The components of NW Natural's revenue are described above in NWN Gas Utility and NW Holdings Other.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.