Northwest Natural Holding Company · NYSE:NWN
Northwest Natural — Merger or Acquisition (November 2024)
13 slides from Northwest Natural's merger presentation, Nov 18, 2024
Slide 1: NW Natural Holdings SiEnergy Acquisition
NW Natural Holdings SiEnergy Acquisition November 19, 2024
Slide 2: Investor Information and Forward Looking Statements
Investor Information Company Information NW Natural Holdings 250 SW Taylor Street Portland, OR 97204 nwnaturalholdings.com Nikki Sparley Director, Investor Relations and Treasury (503) 721-2530 nikki.sparley@nwnatural.com FORWARD LOOKING STATEMENTS This and other presentations made by NW Natural Hol
Slide 3: Leadership Presenting Today
Leadership Presenting Today David H. Anderson Chief Executive Officer Ray J. Kaszuba SVP & CFO Justin B. Palfreyman President 3
Slide 4: Acquiring a High-Growth Utility
4 • Signed agreement to acquire SiEnergy Operating, LLC (SiEnergy) for $273 million in cash and the assumption of $152 million of debt • Unique opportunity to acquire a regulated natural gas utility in the fast-growing metropolitan areas of Houston, Dallas- Fort Worth and Austin, Texas • Provides in
Slide 5: SiEnergy Overview
OVERVIEW • SiEnergy is a regulated utility founded in 1997 that distributes natural gas to residential and commercial customers in the desirable and fast-growing major metropolitan areas of the Texas Triangle1 • Strong historic customer growth of 20%+ with Texas economic development expected to cont
Slide 6: Strategic Rationale Further Supports Long-Term Growth Outlook
Strategic Rationale Further Supports Long-Term Growth Outlook ✓ Further supports NW Natural Holdings’ long-term EPS growth outlook of 4-6% ✓ Increases long-term rate base growth target from 5-7% to 6-8% Provides Scale and Diversification ✓ Scale creates a stronger platform to support and finance lon
Slide 7: Strong Texas Triangle Growth
LIQUIDITY OF AND FINANCINGStrong Texas Triangle Growth 7 Service territories in three of the fastest growing metro areas in the U.S. and is forecasted to continue delivering outsized growth • On average, ~400,000 new residents moved to Texas each year from 2000 - 2022 • Houston, Dallas and Austin ar
Slide 8: Fast-Growing Service Territories
LIQUIDITY OF AND FINANCING Fast-Growing Service Territories 8 Source: U.S. Census Bureau, Vintage 2023 Population Estimates Service territories located in three of the fastest-growing metro areas in the U.S. SiEnergy Service Territories Top 10 U.S. Metro Areas Ranked in Numeric Population Growth (Ju
Slide 9: Constructive Regulatory Environment Supports Growing Gas Utility
Constructive Regulatory Environment Supports Growing Gas Utility LIQUIDITY OF AND FINANCINGConstructive Texas Regulatory Environment 9 (1) Rated Average / 1 by Regulatory Research Associates (RRA). RRC regulates rates through original jurisdiction in areas outside of cities and through appellate jur
Slide 10: Transaction and Financing Details
LIQUIDITY OF AND FINANCING Transaction and Financing Details 10 • Acquiring 100% of SiEnergy Operating, LLC and its subsidiaries in sale of membership interests from SiEnergy Capital Partners, LLC • At closing, subject to customary closing adjustments: — Estimated cash payment of $273 million — Debt
Slide 11: Strong Balance Sheet with Ample Liquidity
1 S&P rating agency FFO/Adjusted Debt calculation Strong Balance Sheet with Ample Liquidity Financing Needs Equity • Issued $90.4 million YTD 9/30/24 through ATM • No additional ATM issuances expected in 2024 • 2025 equity issuance currently expected to be lower than 2024 levels Debt • $150 million
Slide 12: Positioned for Long-Term Success
Supports NWN’s goal of continuing to deliver strong, consistent long-term EPS growth of 4-6% Positioned for Long-Term Success After a strong year of execution, NWN is well-positioned to deliver on its financial and strategic objectives Successful Oregon Gas Rate Case Outcome • New customer rates in
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