NW Natural Holdings Reports Second Quarter 2026 Results and Expects 2026 EPS in the Upper Half of Guidance Range

About this update from Northwest Natural Holding Company

Northwest Natural Holding Company (NYSE: NWN) (NW Natural Holdings or the Company) reported financial results and highlights including: Second Quarter and Year-to-Date 2026 Highlights Reported earnings per share (EPS) of $0.01 for the second quarter of 2026, compared to a net loss per share of $0.06 and adjusted EPS 1 of $0.01 for the same period in 2025 Achieved EPS of $2.33 for the first six months of 2026, compared to EPS of $2.11 and adjusted EPS 1 of $2.28 for the same period in 2025 Added nearly 18,000 gas and water utility connections over the 12 months ended June 30, 2026 for a growth rate of 1.9% Invested $235 million in the first six months of 2026 in our gas and water systems to support greater reliability and resiliency Received order in NW Natural's Washington general rate case providing a revenue requirement increase of $20.1 million over current rates beginning Aug. 1, 2026 with additional increases in the following two years Filed a multi-party settlement in the NW Natural Oregon alternative rate mechanism (ARM) docket Expect Full Year EPS to be in the Upper Half of 2026 Guidance Range with Long-term Growth Targets Reaffirmed 2026 EPS is expected to be in the upper half of the guidance range of $2.95 – $3.15 Expect rate base growth of 6% – 8% through 2030 driven by planned capital expenditures of $2.6 – $2.9 billion from 2026 – 2030 Long-term EPS growth rate target of 4% – 6% 2 and potential to increase to 5% – 7% 2 with MX3 gas storage project “Our results exceeded our expectations and reflect strong execution across the business,” said Justin Palfreyman, President and Chief Executive Officer. "Our consistent performance and strong first-half results, combined with increased visibility into the balance of the year, support our expectation that 2026 EPS will be in the upper half of our guidance range. The strength of our strategy positions NW Natural Holdings to continue to deliver safe, reliable, and affordable service while creating long-term value for customers and shareholders.” SECOND QUARTER AND YEAR-TO-DATE RESULTS NW Natural Holdings' second quarter and year-to-date results are summarized below:   Three Months Ended June 30,   Six Months Ended June 30, In thousands, except per share data 2026   2025   Change   2026   2025   Change Net income (loss) $600   ($2,500 )   $3,100   $98,089   $85,416   $12,673 Earnings (loss) per share 0.01   (0.06 )   0.07   2.33   2.11   0.22 Adjusted net income 1 600   315     285   98,089   92,118   5,971 Adjusted EPS 1 0.01   0.01     —   2.33   2.28   0.05   1 See "Non-GAAP Financial Measures" and "Reconciliation to GAAP" for a definition and further information on adjusted net income and adjusted EPS. Adjusted second quarter and first half of 2025 net income and adjusted EPS exclude transaction and business development costs including the effects of the SiEnergy and Pines Gas transactions. 2 EPS growth forecasted for period 2026 – 2030 compounded annually; EPS growth rate uses adjusted 2025 EPS as base year. Long-term growth rate target with MX3 assumes in-service date prior to the end of 2029. NW Natural Holdings does not provide a reconciliation of the adjusted EPS growth rate target to the most directly comparable GAAP measures due to the inherent difficulty in forecasting and quantifying certain significant items. These items are uncertain, depend on various factors and could have a material impact on GAAP-reported results for the relevant period. KEY EVENTS Washington Commission Approved New Rates for NW Natural On July 29, 2026, the Washington Utilities and Transportation Commission (WUTC) issued an order approving the multi-party settlement in Northwest Natural Gas Company's (NW Natural) multi-year general rate case. The order increased the annual revenue requirement over three years, consisting of a $20.1 million revenue increase in the first year beginning Aug. 1, 2026, a $7.5 million revenue increase in the second year, and a $7.4 million revenue increase in the third year. The order included a capital structure of 50% common equity and 50% long-term debt, a return on equity of 9.5%, and an overall cost of capital of 7.15% beginning in the first year and growing to 7.22% in the third year. Rate base is $328.0 million in the first year, or an increase of $80.7 million since the last rate case. New rates were effective Aug. 1, 2026. Alternative Rate Mechanism Multi-Party Settlement Filed in Oregon On June 29, 2026, NW Natural filed a multi-party settlement with the Public Utility Commission of Oregon (OPUC) that addresses all aspects of the revenue requirement items in the alternative rate mechanism (ARM). The settlement provides an increase to the annual revenue requirement of $13.0 million, compared to the original request of $15.6 million. A Commission order is expected later this year with new rates expected to be effective on Oct. 31, 2026. 2026 GUIDANCE AND LONG-TERM TARGETS We now expect 2026 EPS in the upper half of our guidance range and are reaffirming our long-term targets. This guidance assumes continued customer growth, average weather conditions, and no significant changes in prevailing regulatory policies, mechanisms, or assumed outcomes, or significant local, state or federal laws, legislation or regulations. Required funds for the capital expenditures are expected to be internally generated or financed with long-term debt or equity, as appropriate. Guidance 2026 Guidance 2025 Actual EPS $2.95 – $3.15 (Expecting upper half) $2.93 1 Capital Expenditures $500 – $550 million $467 million       Long-term Targets 2026 – 2030 2 (Unchanged) EPS Growth 4.0% – 6.0% EPS Growth including MX3 5.0% – 7.0% Capital Expenditures $2.6 – $2.9 billion Rate Base 6.0% – 8.0% Customer Growth 2.0% – 3.0%   1 See "Non-GAAP Financial Measures" and "Reconciliation to GAAP" for a definition and further information on adjusted EPS. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures calculated in accordance with U.S. GAAP. Non-GAAP financial measures are used to analyze our financial performance because we believe they provide useful information to our investors and creditors in evaluating our financial condition and results of operations. 2 EPS growth forecasted for period 2026 – 2030 compounded annually; EPS growth rate uses adjusted 2025 EPS as the base year. Long-term growth rate target with MX3 assumes in-service date prior to the end of 2029. NW Natural Holdings does not provide a reconciliation of the adjusted EPS growth rate target to the most directly comparable GAAP measures due to the inherent difficulty in forecasting and quantifying certain significant items. These items are uncertain, depend on various factors and could have a material impact on GAAP-reported results for the relevant period. SECOND QUARTER RESULTS NW Natural Holdings' second quarter results are summarized by business segment in the table below. Previously, the NWN Gas Utility segment excluded certain gas storage and business activities for NW Natural, which were included in the Other segment. As of the first quarter of 2026, these activities are included along with the NWN Gas Utility activities and presented as the NW Natural segment. NW Natural Holdings and NW Natural historical segment reporting has been recast to reflect their current organizational structure.   Three Months Ended June 30,   2026 2025 Change In thousands, except per share data Amount Per Share 1 Amount Per Share 1 Amount Per Share Net income (loss):             NW Natural $3,933   $0.09   $4,924   $0.12   ($991 ) ($0.03 ) SiEnergy 2,056   0.05   1,014   0.03   1,042   0.02   NWN Water 2,272   0.05   2,833   0.07   (561 ) (0.02 ) Other (7,661 ) (0.18 ) (11,271 ) (0.28 ) 3,610   0.10   Consolidated $600   $0.01   ($2,500 ) ($0.06 ) $3,100   $0.07                 Adjusted net income (loss):             NW Natural $3,933   $0.09   $4,924   $0.12   ($991 ) ($0.03 ) SiEnergy 2,056   0.05   1,014   0.03   1,042   0.02   NWN Water 2,272   0.05   2,833   0.07   (561 ) (0.02 ) Other 2 (7,661 ) (0.18 ) (8,456 ) (0.21 ) 795   0.03   Consolidated 2 $600   $0.01   $315   $0.01   $285   $—                 Diluted Shares   42,178     40,482     1,696     1 Segment EPS is a non-GAAP financial measure, which takes segment net income calculated in accordance with GAAP and divides it by the diluted shares outstanding of NW Natural Holdings. See "Non-GAAP Financial Measures" for additional information. The reconciliation of segment EPS to consolidated NW Natural Holdings EPS is shown in the table above. 2 See "Non-GAAP Financial Measures" and "Reconciliation to GAAP" for additional information on Other and consolidated adjusted net income and adjusted EPS. NW Natural net income decreased $1.0 million (or $0.03 per share) as higher margin from new rates in Oregon, which were effective Oct. 31, 2025, were more than offset by increased operations and maintenance (O&M) expense and continued investment in the system resulting in higher depreciation expense and financing costs. SiEnergy net income increased $1.0 million (or $0.02 per share), primarily due to customer growth and the benefit of deferring depreciation and interest costs on investments allowed by Texas House Bill 4384. Results also benefited from a full quarter of earnings contribution from Pines, which was acquired on June 2, 2025. NWN Water net income decreased $0.6 million (or $0.02 per share) as higher operating revenues driven by rate increases and customer growth were more than offset by increased O&M expenses to support the growth of the business including higher payroll and benefits and technology costs. Other net loss decreased $3.6 million (or $0.10 per share), primarily due to lower acquisition and business development expenses compared to the prior year. On an adjusted basis, which excludes transaction and business development costs incurred in the second quarter of 2025, net loss decreased $0.8 million (or $0.03 per share) primarily due to higher net income from NW Natural Renewables. YEAR-TO-DATE RESULTS NW Natural Holdings' year-to-date results are summarized by business segment in the table below:   Six Months Ended June 30,   2026   2025   Change In thousands, except per share data Amount Per Share 1   Amount Per Share 1   Amount Per Share Net income (loss):                 NW Natural $97,682   $2.32     $95,963   $2.37     $1,719   ($0.05 ) SiEnergy 11,146   0.27     6,519   0.16     4,627   0.11   NWN Water 3,703   0.09     4,521   0.11     (818 ) (0.02 ) Other (14,442 ) (0.35 )   (21,587 ) (0.53 )   7,145   0.18   Consolidated $98,089   $2.33     $85,416   $2.11     $12,673   $0.22                     Adjusted net income (loss):                 NW Natural $97,682   $2.32     $95,963   $2.37     $1,719   ($0.05 ) SiEnergy 11,146   0.27     6,519   0.16     4,627   0.11   NWN Water 3,703   0.09     4,521   0.11     (818 ) (0.02 ) Other 2 (14,442 ) (0.35 )   (14,885 ) (0.36 )   443   0.01   Consolidated 2 $98,089   $2.33     $92,118   $2.28     $5,971   $0.05                     Diluted Shares   42,014       40,429       1,585     1 Segment EPS is a non-GAAP financial measure, which takes segment net income calculated in accordance with GAAP and divides it by the diluted shares outstanding of NW Natural Holdings. See "Non-GAAP Financial Measures" for additional information. The reconciliation of segment EPS to consolidated NW Natural Holdings EPS is shown in the table above. 2 See "Non-GAAP Financial Measures" and "Reconciliation to GAAP" for additional information on Other and consolidated adjusted net income and adjusted EPS. NW Natural net income increased $1.7 million (or decreased $0.05 per share) as higher margin from new rates in Oregon, which were effective Oct. 31, 2025, was partially offset by increased O&M expense and continued investment in the system resulting in higher depreciation expense and financing costs. SiEnergy net income increased $4.6 million (or $0.11 per share) due to customer growth and the benefit of deferring depreciation and interest costs on investments allowed by Texas House Bill 4384. Additionally, the first half of 2026 reflected a full period of both SiEnergy (acquired on Jan. 7, 2025) and Pines (acquired on June 2, 2025) net income, which had a positive effect on year-over-year results. NWN Water net income decreased $0.8 million (or $0.02 per share) mainly reflecting higher O&M expense to support growth and depreciation expense, partially offset by rate increases and customer growth. Other net loss from the Company's other business activities decreased $7.1 million (or $0.18 per share). On an adjusted basis, which excludes transaction and business development costs, including the SiEnergy and Pines transaction costs in the first half 2025, net loss decreased $0.4 million (or $0.01 per share). DIVIDEND DECLARED The board of directors of NW Natural Holdings declared a quarterly dividend of $0.4925 per share on the Company’s common stock. The dividend is payable on Aug. 14, 2026 to shareholders of record on July 31, 2026. The Company's current indicated annual dividend rate is $1.97 per share. Future dividends are subject to the discretion and approval of the board of directors. CONFERENCE CALL AND WEBCAST As previously announced, NW Natural Holdings will host a conference call and webcast today to discuss its second quarter 2026 financial and operating results. Date and Time: Wednesday, August 5, 2026 8 a.m. PT (11 a.m. ET) Phone Numbers: 1-833-461-5787 Meeting ID: 270 825 224 The call will also be webcast in a listen-only format for the media and general public and can be accessed at ir.nwnaturalholdings.com . A replay of the conference call will be available on our website as well. ABOUT NW NATURAL HOLDINGS NW Natural Holding Company (NYSE: NWN) is headquartered in Portland, Oregon and has operated for more than 167 years. It owns Northwest Natural Gas Company (NW Natural), the Company's long-standing natural gas utility serving the Pacific Northwest; SiEnergy Operating, LLC (SiEnergy), a fast-growing natural gas utility serving key Texas markets; NW Natural Water Company (NW Natural Water), an expanding water and wastewater utility; and additional business interests. Together, NW Natural Holdings provides essential energy and water services to nearly one million customers across seven states. The Company has a longstanding commitment to safety, environmental stewardship and supporting its employees and communities, and consistently leads the industry in J.D. Power customer satisfaction. Additional information is available at nwnaturalholdings.com . FORWARD-LOOKING STATEMENTS This press release, and other presentations made by NW Natural Holdings from time to time, may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipates," "assumes," “continues,” “could,” "should," "intends," "plans," "seeks," "believes," "estimates," "expects," "forecasts," "will" and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, objectives, assumptions, estimates, expectations, forecasts, outlooks, timing, goals, strategies, commitments, future events, financial positions, financial performance, investments, valuations, timing and amount of capital expenditures, targeted capital structure, risks, risk profile, stability, acquisitions and timing, approval, completion and integration thereof, the likelihood and success associated with any transaction, strategic fit, utility system, technology and infrastructure investments, expected timing of notice to proceed, the initiation of construction, expected in-service date and capital expenditure requirements for MX3, system modernization, reliability and resiliency, global, national and local economies, economic and GDP growth, customer and business growth, continued expansion of service territories, rate base growth, customer backlog, growth opportunities, customer satisfaction ratings, weather, performance and service during weather events, customer rates or rate recovery and the timing and magnitude of potential rate changes and the potential outcome of rate cases, environmental remediation cost recoveries, environmental initiatives, decarbonization and the role of natural gas and the gas delivery system, including decarbonization goals and timelines, energy efficiency measures, use of renewable sources, renewable natural gas purchases, projects, investments and other renewable initiatives, and timing, magnitude and completion thereof, unregulated renewable natural gas strategy and initiatives, hydrogen projects or investments and timing, magnitude, approvals and completion thereof, procurement of renewable natural gas or hydrogen for customers, technology and policy innovations, strategic goals and visions, water, wastewater and water services acquisitions, personnel additions, partnerships, investment strategy, regulatory strategy, and financial effects of water, wastewater and water services acquisitions, expected growth and safety benefits of facility upgrade investments, operating plans of third parties, financial targets, financial results, including estimated income, availability and sources of liquidity, capital markets, financing transactions, expenses, positions, revenues, returns, cost of capital, timing, and earnings, earnings guidance and estimated future growth rates, credit ratings, debt and equity issuances and timing, future dividends, commodity costs and sourcing, asset management activities, regulatory environment, performance, timing, outcome, or effects of regulatory proceedings or mechanisms or approvals, rate case execution, regulatory prudence reviews, anticipated regulatory actions or filings, accounting treatment of future events, economic and political conditions, effects of legislation or changes in laws or regulations, impact of the current U.S. presidential administration and Congress, inflation, geopolitical uncertainty and other statements that are other than statements of historical facts. Forward-looking statements are based on current expectations and assumptions regarding the Company's business, the economy, geopolitical factors, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. You are therefore cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future operational, economic or financial performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed by reference to the factors described in Part I, Item 1A "Risk Factors", and Part II, Item 7 and Item 7A "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosure about Market Risk" in the most recent Annual Report on Form 10-K and in Part I, Items 2 and 3 "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk", and Part II, Item 1A, "Risk Factors", in the quarterly reports filed thereafter, which, among others, outline legal, regulatory and legislative risks, financial, macroeconomic and geopolitical risks, growth and strategic risks, operational risks, business continuity and technology risks, environmental risks and risks related to our water and renewables businesses. All forward-looking statements made in this release and all subsequent forward-looking statements, whether written or oral and whether made by or on behalf of NW Natural Holdings or NW Natural, are expressly qualified by these cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is made, and NW Natural Holdings and NW Natural undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. New factors emerge from time to time and it is not possible to predict all such factors, nor can it assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. NON-GAAP FINANCIAL MEASURES Management uses "adjusted net income", "adjusted earnings per share," "adjusted segment net income (loss)," "segment earnings per share” and "adjusted segment earnings per share," each of which are non-GAAP financial measures, when evaluating NW Natural Holdings' overall performance. Management uses non-GAAP measures in making operating decisions because we believe those measures provide meaningful supplemental information regarding our earning potential and performance for management by excluding certain expenses and charges that may not be indicative of our core business operating results and can affect the comparison of period-over-period results. These adjustments may include transaction and business development costs primarily consisting of professional fees including legal, accounting, financial and other professional fees incurred in connection with business combinations and business development activities. In addition to presenting the results of operations and earnings amounts in total, certain financial measures are expressed in cents per share, which are non-GAAP financial measures. All references to EPS are on the basis of diluted shares. Such non-GAAP financial measures are used to analyze our financial performance because we believe they provide useful information to our investors and creditors in evaluating our financial condition and results of operations. Our non-GAAP financial measures should not be considered a substitute for, or superior to, measures calculated in accordance with U.S. GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than how such measures are calculated in this release, limiting the usefulness of those measures for comparative purposes. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the tables below. NORTHWEST NATURAL HOLDINGS Consolidated Income Statement and Financial Highlights (Unaudited) Second Quarter 2026   Three Months Ended   Six Months Ended In thousands, except per share amounts, customer, and degree day data June 30,   June 30, 2026   2025   2026   2025 Operating revenues $243,552     $236,194     $733,955     $730,478                   Operating expenses:               Cost of gas 61,753     64,503     219,902     237,494   Operations and maintenance 80,354     79,065     163,463     162,748   Environmental remediation 2,431     2,296     8,756     8,549   General taxes 12,216     12,076     28,559     27,847   Revenue taxes 8,400     8,283     26,500     27,688   Depreciation 44,212     41,535     88,346     82,035   Other operating expenses 1,029     1,225     2,404     2,552   Total operating expenses 210,395     208,983     537,930     548,913   Income from operations 33,157     27,211     196,025     181,565   Other income (expense), net 1,405     (160 )   1,917     (2,676 ) Interest expense, net 33,352     30,491     66,704     59,886   Income before income taxes 1,210     (3,440 )   131,238     119,003   Income tax expense 610     (940 )   33,149     33,587   Net income (loss) $600     ($2,500 )   $98,089     $85,416                   Common shares outstanding:               Average diluted for period 42,178     40,482     42,014     40,429   End of period 42,093     40,910     42,093     40,910                   Per share of common stock information:               Diluted earnings $0.01     ($0.06 )   $2.33     $2.11   Dividends paid per share 0.4925     0.4900     0.9850     0.9800                   Capital structure, end of period:               Common stock equity 37.3 %   38.0 %   37.3 %   38.0 % Long-term debt (including junior subordinated notes) 56.8     54.2     56.8     54.2   Short-term debt (including current maturities of long-term debt) 5.9     7.8     5.9     7.8   Total 100.0 %   100.0 %   100.0 %   100.0 %                 Operating Statistics               Meters               NW Natural         809,917     807,243   SiEnergy         95,904     83,278   NWN Water         81,294     78,635   Total meters - end of period         987,115     969,156                   NW Natural Margin               Operating revenues $204,802     $200,807     $638,698     $649,620   Less: Cost of gas 53,326     56,939     193,470     216,375   Less: Environmental remediation expense 2,431     2,296     8,756     8,549   Less: Revenue taxes 7,906     7,832     24,943     26,397   NW Natural margin $141,139     $133,740     $411,529     $398,299                   SiEnergy Margin               Operating revenues $13,546     $11,502     $45,241     $34,168   Less: Cost of gas 3,382     2,977     15,661     11,280   Less: Revenue taxes 377     364     1,338     1,143   SiEnergy margin $9,787     $8,161     $28,242     $21,745   NORTHWEST NATURAL HOLDINGS         Consolidated Balance Sheets (Unaudited)   June 30, In thousands   2026   2025 Assets:         Current assets:         Cash and cash equivalents   $24,234     $102,579   Accounts receivable   83,150     78,865   Accrued unbilled revenue   26,484     27,943   Allowance for uncollectible accounts   (3,855 )   (3,210 ) Regulatory assets   168,092     103,914   Derivative instruments   4,338     7,210   Inventories   142,887     113,720   Other current assets   53,902     35,095   Total current assets   499,232     466,116   Non-current assets:         Property, plant, and equipment   5,844,802     5,415,697   Less: Accumulated depreciation   1,318,811     1,269,274   Total property, plant, and equipment, net   4,525,991     4,146,423   Regulatory assets   640,656     372,668   Derivative instruments   3,430     4,077   Other investments   68,998     82,223   Operating lease right of use asset, net   67,950     69,555   Assets under sales-type leases   119,425     123,588   Goodwill   371,614     370,889   Other non-current assets   144,486     151,024   Total non-current assets   5,942,550     5,320,447   Total assets   $6,441,782     $5,786,563   Liabilities and equity:         Current liabilities:         Short-term debt   $121,289     $157,396   Current maturities of long-term debt   125,685     141,541   Accounts payable   135,525     116,819   Taxes accrued   13,031     11,530   Interest accrued   27,326     25,279   Regulatory liabilities   116,034     130,944   Derivative instruments   36,508     25,977   Operating lease liabilities   3,424     2,486   Other current liabilities   68,265     71,895   Total current liabilities   647,087     683,867   Long-term debt   2,376,685     2,086,650   Deferred credits and other non-current liabilities:         Deferred tax liabilities   470,623     426,827   Regulatory liabilities   779,458     737,194   Pension and other postretirement benefit liabilities   105,106     125,019   Derivative instruments   17,541     7,908   Operating lease liabilities   74,782     76,749   Other non-current liabilities   411,205     183,111   Total deferred credits and other non-current liabilities   1,858,715     1,556,808   Equity:         Common stock   1,071,786     1,017,403   Retained earnings   492,032     448,517   Accumulated other comprehensive loss   (4,523 )   (6,682 ) Total equity   1,559,295     1,459,238   Total liabilities and equity   $6,441,782     $5,786,563   NORTHWEST NATURAL HOLDINGS         Consolidated Statements of Cash Flows (Unaudited)   Six Months Ended June 30, In thousands   2026   2025 Operating activities:         Net income   $98,089     $85,416   Adjustments to reconcile net income to cash provided by operations:         Depreciation   88,346     82,035   Amortization   12,199     12,136   Deferred income taxes   28,776     28,054   Qualified defined benefit pension plan expense   4,615     5,437   Contributions to qualified defined benefit pension plans   (6,450 )   (5,510 ) Deferred environmental expenditures, net   (14,329 )   (11,720 ) Environmental remediation expense   8,756     8,549   Asset optimization revenue sharing bill credits   (23,156 )   (15,549 ) Other   6,483     7,794   Changes in assets and liabilities:         Receivables, net   118,552     121,551   Inventories   (15,364 )   (4,382 ) Income and other taxes   12,853     8,505   Accounts payable   (19,663 )   11,582   Deferred gas costs   (58,483 )   (45,247 ) Asset optimization revenue sharing   8,760     10,097   Decoupling mechanism   (36,201 )   (14,793 ) Cloud-based software   (4,957 )   (3,819 ) Regulatory accounts   18,606     1,612   Other, net   (1,584 )   22   Cash provided by operating activities   225,848     281,770   Investing activities:         Capital expenditures   (234,950 )   (222,664 ) Acquisitions, net of cash acquired   —     (331,329 ) Purchase of equity method investment   (1,000 )   (1,000 ) Other   974     (894 ) Cash used by investing activities   (234,976 )   (555,887 ) Financing activities:         Proceeds from common stock issued, net   22,182     24,384   Long-term debt issued   125,000     375,000   Long-term debt retired   (55,292 )   (3,022 ) Changes in other short-term debt, net   (50,700 )   (17,692 ) Cash dividend payments on common stock   (39,866 )   (38,180 ) Payment of financing fees   (1,069 )   (4,385 ) Shares withheld for tax purposes   (1,988 )   (1,537 ) Other   (372 )   (1,769 ) Cash (used by) provided by financing activities   (2,105 )   332,799   (Decrease) increase in cash, cash equivalents and restricted cash   (11,233 )   58,682   Cash, cash equivalents and restricted cash, beginning of period   41,077     47,982   Cash, cash equivalents and restricted cash, end of period   $29,844     $106,664             Supplemental disclosure of cash flow information:         Interest paid, net of capitalization   $63,504     $52,557   Income taxes paid, net of refunds   3,300     8,079             Reconciliation of cash, cash equivalents and restricted cash:         Cash and cash equivalents   $24,234     $102,579   Restricted cash included in other current and non-current assets   5,610     4,085   Cash, cash equivalents and restricted cash   $29,844     $106,664   NORTHWEST NATURAL HOLDINGS Reconciliation to GAAP (Unaudited)     Three Months Ended June 30,     2026   2025 In thousands, except per share data   Amount Per Share   Amount Per Share CONSOLIDATED             GAAP net income (loss)   $600   $0.01     ($2,500 ) ($0.06 ) Transaction and business development costs   —   —     3,831   0.09   Income tax effect 1   —   —     (1,016 ) (0.02 ) Adjusted net income   $600   $0.01     $315   $0.01                 Diluted shares     42,178       40,482                 OTHER             GAAP net loss   ($7,661 ) ($0.18 )   ($11,271 ) ($0.28 ) Transaction and business development costs   —   —     3,831   0.09   Income tax effect 1   —   —     (1,016 ) (0.02 ) Adjusted net loss   ($7,661 ) ($0.18 )   ($8,456 ) ($0.21 )                   Six Months Ended June 30,     2026   2025 In thousands, except per share data   Amount Per Share   Amount Per Share CONSOLIDATED             GAAP net income   $98,089   $2.33     $85,416   $2.11   Transaction and business development costs   —   —     9,118   0.23   Income tax effect 2   —   —     (2,416 ) (0.06 ) Adjusted net income   $98,089   $2.33     $92,118   $2.28                 Diluted shares     42,014       40,429                 OTHER             GAAP net loss   ($14,442 ) ($0.35 )   ($21,587 ) ($0.53 ) Transaction and business development costs   —   —     9,118   0.23   Income tax effect 2   —   —     (2,416 ) (0.06 ) Adjusted net loss   ($14,442 ) ($0.35 )   ($14,885 ) ($0.36 )                         Twelve Months Ended Dec. 31,           2025 In thousands, except per share data         Amount Per Share CONSOLIDATED             GAAP net income         $113,319   $2.77   Transaction and business development costs         9,084   0.22   Income tax effect 3         (2,407 ) (0.06 ) Adjusted net income         $119,996   $2.93                 Diluted shares           40,953                 OTHER             GAAP net loss         ($38,795 ) ($0.95 ) Transaction and business development costs         9,084   0.22   Income tax effect 3         (2,407 ) (0.06 ) Adjusted net loss         ($32,118 ) ($0.79 )   1 Pines transaction expenses and other business development expenses were recognized in the second quarter of 2025. Tax effect of adjustment was calculated using a combined federal and statutory rate of 26.5%. 2 SiEnergy transaction expenses were recognized in the first quarter and Pines transaction expenses were recognized in the second quarter of 2025. Other business development costs were recognized in the second quarter of 2025. Tax effect of adjustment was calculated using a combined federal and statutory rate of 26.5%. 3 SiEnergy transaction expenses were recognized in the first quarter of 2025 and Pines transaction expenses were recognized in the second quarter of 2025. Other business development costs were recognized in the second and third quarters of 2025. Tax effect of adjustment was calculated using a combined federal and statutory rate of 26.5%.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260805536560/en/

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