Northwest Natural Gas (NYSE: NWN) reported Q4 EPS of $1.26, $0.04 better than the analyst estimate of $1.22. Revenue for the quarter came in at $247.26 million versus the consensus estimate of $248.12 million.

• Reported net income from continuing operations of $2.19 per share for 2019 and adjusted earnings1 from continuing operations of $2.41 per share, compared to net income from continuing operations of $2.33 per share for 2018
• Added nearly 12,500 natural gas meters over the last 12 months equating to a 1.7% growth rate
• Invested nearly $240 million in our natural gas infrastructure and began service at the North Mist facility
• Scored first in the nation among large gas utilities in the 2019 J.D. Power Gas Utility Residential Customer Satisfaction Study
• Completed NW Natural's first Washington general rate case in a decade
• Filed an Oregon general rate case in December 2019 to recover costs and investments that strengthen and reinforce the natural gas system, provide necessary system maintenance and operational resiliency, and technology upgrades
• Closed four water and wastewater utility transactions bringing our total connections to nearly 21,000
• Increased the dividend for 64th consecutive year to an annual indicated dividend rate of $1.91 per share
• Initiated 2020 earnings guidance in the range of $2.25 to $2.45 per share from continuing operations

“2019 was a very successful year filled with progress as we delivered on the key objectives of our long-term strategic plan,” said David H. Anderson, president and CEO of Northwest Natural Holding Company. “Our gas utility experienced solid growth, and we continued the disciplined expansion of our water and wastewater utility business. Our employees were once again honored with top customer satisfaction scores, and shareholders received their 64th consecutive dividend increase. I'm proud of all our accomplishments in 2019 and am excited to continue executing on our growth opportunities in 2020,” added Mr. Anderson.

GUIDANCE:

Northwest Natural Gas sees FY2020 EPS of $2.25-$2.45, versus the consensus of $2.52.

NW Natural Holdings initiated 2020 earnings guidance from continuing operations in the range of $2.25 to $2.45 per share. This guidance assumes continued customer growth, average weather conditions, and no significant changes in prevailing regulatory policies, mechanisms, or outcomes, or significant local, state or federal laws, legislation or regulations. The expected sale of Gill Ranch and the related gain, and any operating loss associated with it, are not included in this guidance range, as they are, and are expected to continue to be, reported as Discontinued Operations.

The Company expects capital expenditures for 2020 to be in the range of $240 million to $280 million, with $230 million to $270 million relating to the natural gas distribution segment and approximately $10 million related to maintenance capital expenditures for water utilities that we currently own or have under a purchase and sale agreement. Regarding the natural gas utility capital expenditures, approximately two-thirds of the planned amount is for core utility investments with the remainder related to projects for safety, reliability, and technology upgrades.

The total capital investment for the five-year period from 2020 to 2024 is expected to range from $980 million to $1.14 billion, with $950 million to $1.10 billion relating to the natural gas distribution segment and $30 million to $40 million related to maintenance capital expenditures for water utilities we currently own or have under a purchase and sale agreement. Regarding the natural gas utility capital expenditures, approximately two-thirds of the planned amount is for core utility investments with the remainder related to projects. These projects include system reinforcements to support growth and reliability, resiliency projects for our resource centers, and technology upgrades related to the enterprise resource planning system and customer information system.

The timing and amount of the core capital expenditures and projects for 2020 and the next five years could change based on regulation, growth, and cost estimates. Additional investments in our infrastructure during and after 2020 that are not incorporated in the estimates provided above will depend largely on additional regulations, growth, and expansion opportunities. Required funds for the investments are expected to be internally generated and/or financed with long-term debt or equity, as appropriate.

For earnings history and earnings-related data on Northwest Natural Gas (NWN) click here.