Northwest Natural Holding CoNWN
Northwest Natural Holding Co Segments Disclosure
SEGMENT INFORMATION
Prior to the first quarter of 2025, NW Holdings and NW Natural primarily operated in one reportable business segment, which was NW Natural's local gas distribution business, referred to as the NGD segment. NW Holdings and NW Natural also had investments and business activities not specifically related to the NGD segment, which were aggregated and reported as other.
During the first quarter of 2025, we evaluated the reportable business segments of NW Holdings and concluded that SiEnergy and NWN Water were also reportable business segments. In addition, the NGD segment was renamed to NWN Gas Utility. NW
Holdings and NW Natural also have investments and business activities not specifically related to the NWN Gas Utility, SiEnergy, and NWN Water segments, which are aggregated and reported as NW Holdings Other. NW Holdings and NW Natural historical segment reporting has been recast to reflect their current organizational structure.
NW Holdings primarily operates in three reportable business segments, which are NWN Gas Utility, SiEnergy, and NWN Water. NW Natural primarily operates in one reportable business segment, which is NWN Gas Utility. NW Holdings and NW Natural also have investments and business activities not specifically related to the reportable business segments, which are aggregated and reported as other and described below for each entity.
No individual customer accounts for over 10% of NW Holdings' or NW Natural's operating revenues.
NWN Gas Utility
NW Natural's local gas distribution segment is a regulated utility servicing customers in Oregon and southwest Washington. In addition to NW Natural's local gas distribution business, the NWN Gas Utility segment also includes the portion of the Mist underground storage facility used to serve its customers, the North Mist gas storage operations in Oregon, NWN Gas Reserves, which is a wholly-owned subsidiary of Energy Corp, and NW Natural RNG Holding Company, LLC, a holding company established to invest in the development and procurement of regulated renewable natural gas for NW Natural. NWN Gas Utility segment does not include Interstate Storage Services and third-party asset management services, and appliance retail center operations which are reported in NW Natural Other and included in NW Holdings Other.
SiEnergy Gas Utility
SiEnergy Gas Utility owns a regulated natural gas distribution utility, serving customers in the greater metropolitan areas of Houston, Dallas, and Austin, Texas. SiEnergy also includes a regulated natural gas transmission utility serving customers in the greater metropolitan areas of Dallas and Austin, Texas.
NWN Water Utility
NWN Water Utility is a regulated water and wastewater utility serving residential and commercial customers in Oregon, Washington, Idaho, Texas, and Arizona. NWN Water also includes non-regulated wastewater utilities and water services businesses in Oregon, Washington and Idaho, and an equity method investment in Avion Water Company, Inc. (a regulated entity). In addition, NWN Water provides water services to communities throughout the Pacific Northwest and California.
NW Holdings Other
NW Holdings' activities in Other includes activities of NW Natural Renewables Holdings, LLC (NWN Renewables), which is engaged in non-regulated renewable natural gas activities; NNG Financial and its pipeline assets; and NWN Energy including its wholly-owned subsidiary NW Natural Gas Storage, LLC (NWN Gas Storage), which was formerly involved in a gas storage business. Other also includes corporate revenues and expenses that cannot be allocated to other operations, including certain business development activities. NW Holdings Other also includes NW Natural Other activities which includes activities in Interstate Storage Services and third-party asset management services, appliance retail center operations, and corporate operating and non-operating revenues and expenses that cannot be allocated to NWN Gas Utility operations.
Segment Information Summary
Inter-segment transactions were immaterial for the periods presented. Total assets by segment is not regularly provided to the Chief Operating Decision Maker (CODM) and is therefore omitted. The following tables presents summary financial information concerning the reportable segments and other:
| In thousands | NWN Gas Utility | SiEnergy Gas Utility(1) | NWN Water Utility | NW Holdings Other | NW Holdings | |||||||||||||||||||||||||||
| 2025 | ||||||||||||||||||||||||||||||||
| Operating revenues | $ | 1,096,785 | $ | 65,984 | $ | 65,646 | $ | 60,948 | $ | 1,289,363 | ||||||||||||||||||||||
| Depreciation | 147,882 | 7,873 | 8,514 | 1,237 | 165,506 | |||||||||||||||||||||||||||
Income from operations(2) | 219,949 | 26,558 | 18,906 | 15,478 | 280,891 | |||||||||||||||||||||||||||
| Interest expense, net | 61,440 | 9,608 | 3,048 | 48,417 | 122,513 | |||||||||||||||||||||||||||
| Income tax expense (benefit) | 41,952 | 3,870 | 3,511 | (7,974) | 41,359 | |||||||||||||||||||||||||||
| Capital expenditures | 339,948 | 67,650 | 43,917 | 15,378 | 466,893 | |||||||||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||||||||
| Operating revenues | $ | 1,075,688 | $ | — | $ | 52,036 | $ | 25,270 | $ | 1,152,994 | ||||||||||||||||||||||
| Depreciation | 128,524 | — | 8,296 | 1,078 | 137,898 | |||||||||||||||||||||||||||
Income from operations(2) | 173,222 | — | 9,935 | 7,985 | 191,142 | |||||||||||||||||||||||||||
| Interest expense, net | 62,868 | — | 3,815 | 13,409 | 80,092 | |||||||||||||||||||||||||||
| Income tax expense (benefit) | 30,195 | — | 2,069 | (1,193) | 31,071 | |||||||||||||||||||||||||||
| Capital expenditures | 348,913 | — | 39,988 | 5,499 | 394,400 | |||||||||||||||||||||||||||
| 2023 | ||||||||||||||||||||||||||||||||
| Operating revenues | $ | 1,136,400 | $ | — | $ | 38,852 | $ | 22,223 | $ | 1,197,475 | ||||||||||||||||||||||
| Depreciation | 118,417 | — | 6,067 | 1,097 | 125,581 | |||||||||||||||||||||||||||
Income from operations(2) | 170,591 | — | 6,569 | 7,781 | 184,941 | |||||||||||||||||||||||||||
| Interest expense, net | 60,020 | — | 5,965 | 10,581 | 76,566 | |||||||||||||||||||||||||||
| Income tax expense | 31,688 | — | 450 | 224 | 32,362 | |||||||||||||||||||||||||||
| Capital expenditures | 285,998 | — | 36,686 | 4,663 | 327,347 | |||||||||||||||||||||||||||
(1) Prior year comparatives are not provided for SiEnergy as it was acquired by NW Holdings on January 7, 2025.
(2) Income (loss) from operations is not a financial measure used by the CODM for NWN Gas Utility or SiEnergy Gas Utility, but is included in the table above to enable the reconciliation of NWN Gas Utility and SiEnergy Gas Utility margin to consolidated income before taxes in accordance with ASU 2023-07.
| In thousands | NWN Gas Utility | NW Natural Other | NW Natural | ||||||||||||||
| 2025 | |||||||||||||||||
| Operating revenues | $ | 1,096,785 | $ | 28,328 | $ | 1,125,113 | |||||||||||
| Depreciation | 147,882 | 1,237 | 149,119 | ||||||||||||||
Income from operations(1) | 219,949 | 19,834 | 239,783 | ||||||||||||||
| Interest expense, net | 61,440 | 458 | 61,898 | ||||||||||||||
| Income tax expense | 41,952 | 5,370 | 47,322 | ||||||||||||||
| Capital expenditures | 339,948 | 15,118 | 355,066 | ||||||||||||||
| 2024 | |||||||||||||||||
| Operating revenues | $ | 1,075,688 | $ | 24,809 | $ | 1,100,497 | |||||||||||
| Depreciation | 128,524 | 1,078 | 129,602 | ||||||||||||||
Income from operations(1) | 173,222 | 16,505 | 189,727 | ||||||||||||||
| Interest expense, net | 62,868 | 405 | 63,273 | ||||||||||||||
| Income tax expense | 30,195 | 4,423 | 34,618 | ||||||||||||||
| Capital expenditures | 348,913 | 4,993 | 353,906 | ||||||||||||||
| 2023 | |||||||||||||||||
| Operating revenues | $ | 1,136,400 | $ | 22,223 | $ | 1,158,623 | |||||||||||
| Depreciation | 118,417 | 1,097 | 119,514 | ||||||||||||||
Income from operations(1) | 170,591 | 15,054 | 185,645 | ||||||||||||||
| Interest expense, net | 60,020 | 574 | 60,594 | ||||||||||||||
| Income tax expense | 31,688 | 3,984 | 35,672 | ||||||||||||||
| Capital expenditures | 285,998 | 4,847 | 290,845 | ||||||||||||||
(1) Income (loss) from operations is not a financial measure used by the CODM for NWN Gas Utility, but is included in the table above to enable the reconciliation of NWN Gas Utility margin to consolidated income before taxes in accordance with ASU 2023-07.
NW Holdings and NW Natural's CODM is the chief executive officer. The CODM uses NWN Gas Utility margin, SiEnergy margin and NWN Water income from operations to allocate resources, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis when making decisions about allocating capital and personnel. The CODM also uses NWN Gas Utility margin, SiEnergy margin and NWN Water income from operations to assess the performance of NWN Gas Utility, SiEnergy and NWN Water, respectively.
NWN Gas Utility Margin
NWN Gas Utility margin is the primary financial measure used by the CODM, consisting of NWN Gas Utility operating revenues, reduced by the associated cost of gas, environmental remediation expense, and revenue taxes. The cost of gas purchased for NWN Gas Utility customers is generally a pass-through cost in the amount of revenues billed to regulated NWN Gas Utility customers. Environmental remediation expense represents collections received from customers through environmental recovery mechanisms in Oregon and Washington as well as adjustments for the Oregon environmental earnings test when applicable. This is offset by environmental remediation expense presented in operating expenses. Revenue taxes are collected from customers and remitted to taxing authorities. The collections from customers are offset by the expense recognition of the obligation to the taxing authority. By subtracting cost of gas, environmental remediation expense, and revenue taxes from NWN Gas Utility operating revenues, NWN Gas Utility margin provides a key metric used by the CODM in assessing the performance of the NWN Gas Utility segment.
The following table presents additional segment information concerning NWN Gas Utility margin:
| In thousands | 2025 | 2024 | 2023 | ||||||||||||||
| NWN Gas Utility margin calculation: | |||||||||||||||||
| Distribution revenues | $ | 1,076,111 | $ | 1,056,171 | $ | 1,117,498 | |||||||||||
| Other regulated services | 20,674 | 19,517 | 18,902 | ||||||||||||||
| Total operating revenues | 1,096,785 | 1,075,688 | 1,136,400 | ||||||||||||||
| Less: Cost of gas | 356,126 | 412,320 | 500,061 | ||||||||||||||
| Environmental remediation | 14,623 | 14,053 | 12,899 | ||||||||||||||
| Revenue taxes | 45,887 | 48,037 | 48,432 | ||||||||||||||
| Margin | 680,149 | 601,278 | 575,008 | ||||||||||||||
| Operations and maintenance | 264,273 | 253,297 | 241,721 | ||||||||||||||
| General taxes | 48,045 | 46,235 | 44,279 | ||||||||||||||
| Depreciation | 147,882 | 128,524 | 118,417 | ||||||||||||||
| NWN Gas Utility income from operations | $ | 219,949 | $ | 173,222 | $ | 170,591 | |||||||||||
SiEnergy Gas Utility Margin
SiEnergy Gas Utility margin is the primary financial measure used by the CODM, consisting of SiEnergy operating revenues, reduced by the associated cost of gas and revenue taxes. The cost of gas purchased for SiEnergy customers is generally a pass-through cost in the amount of revenues billed to regulated SiEnergy customers. Revenue taxes are collected from customers and remitted to taxing authorities. The collections from customers are offset by the expense recognition of the obligation to the taxing authority. By subtracting cost of gas and revenue taxes from SiEnergy operating revenues, SiEnergy margin provides a key metric used by the CODM in assessing the performance of the segment.
The following table presents additional segment information concerning SiEnergy margin:
| In thousands | 2025 | ||||
| SiEnergy Gas Utility margin calculation: | |||||
| Distribution revenues | $ | 65,984 | |||
| Total operating revenues | 65,984 | ||||
| Less: Cost of gas | 19,892 | ||||
| Revenue taxes | 1,876 | ||||
| Margin | 44,216 | ||||
| Operations and maintenance | 8,642 | ||||
| General taxes | 1,143 | ||||
| Depreciation | 7,873 | ||||
| SiEnergy Gas Utility income from operations | $ | 26,558 | |||
(1) Prior year comparatives are not provided for SiEnergy as it was acquired by NW Holdings January 7, 2025.
Significant Segment Expenses
Public entities are required to disclose significant segment expenses for each reportable segment if they are regularly provided to the CODM and included in the reported measure of segment profit/loss. This requirement does not necessitate additional disclosure for the NWN Gas Utility and SiEnergy segments, as all expense categories are presented above in the NWN Gas Utility margin table and SiEnergy margin table, respectively. Significant segment expenses for NWN Water are presented below.
| In thousands | 2025 | 2024 | 2023 | ||||||||||||||
| Operating revenues | $ | 65,646 | $ | 52,036 | $ | 38,852 | |||||||||||
| Operating expenses: | |||||||||||||||||
| Operations and maintenance | 33,139 | 28,760 | 21,604 | ||||||||||||||
| Depreciation | 8,514 | 8,296 | 6,067 | ||||||||||||||
Other operating expenses(1) | 5,087 | 5,045 | 4,612 | ||||||||||||||
| Income from operations | $ | 18,906 | $ | 9,935 | $ | 6,569 | |||||||||||
(1) Other operating expenses include general and revenue taxes, cost of water purchases, and other expenses.
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.