ENP Newswire -
Release date- 06082014 -
Consolidated net income was
The Company's earnings are typically lower during the second and third quarters due to the impact of decreased heating requirements affecting utility results.
'Our second quarter results continued to reflect positive customer growth trends and progress on several key growth initiatives, but were offset by headwinds in the gas storage market,' said
Results for the quarter and year-to-date periods included higher earnings from the utility segment, but losses from the gas storage segment. Gas storage results reflected lower revenues and higher operating expenses, while the utility benefited from customer growth and added rate-base returns on certain investments.
For the three months ended
For the six months ended
Customer growth. NW Natural's customer growth rate for the trailing 12-month period ended
Utility Volumes and Margin. For the quarter, total gas sales and transportation deliveries decreased 3.8 million therms, or 2%, compared to the same period last year due to warmer weather. Heating degree days were 10% lower than 2013 and 23% lower than average. However, utility margin for the quarter increased
For the six month period, total gas sales and transportation deliveries increased 2.2 million therms, or 0.4%, mainly due to customer growth and higher volumes during the February cold weather event, partially offset by weather that was 3% warmer than last year and 5% warmer than average.
Utility margin for the first six months increased 4%, or
Environmental Insurance Settlements. In
Gas Reserves. During the second quarter of 2014, the Company was notified by its new partner,
The Company is seeking regulatory approval from the OPUC. Our investment balance under the original agreement earns a rate of return for our shareholders and provides long-term gas price protection for our utility customers.
New Labor Agreement. The Company ratified a new labor agreement with its union employees during the second quarter, which was effective
Gas Storage Results
The gas storage segment incurred a
The power cost increase reflected higher injections into storage during the second quarter to replenish low storage levels following higher withdrawals this past winter. The repair cost increase reflected work at our
For the first six months of 2014, gas storage operating revenues and net income decreased
Consolidated Operations and Maintenance Expense
Operations and maintenance expense for the second quarter of 2014 increased
Operations and maintenance expense for the first six months of 2014 increased
The utility bad debt expense as a percent of revenues was 0.18% for the trailing 12 months ended
Cash provided by operations for the first six months of 2014 was
Earnings Guidance for 2014
The Company reaffirmed earnings guidance for 2014 in the range of
The board of directors of NW Natural declared a quarterly dividend of
Presentation of Results
In addition to presenting results of operations and earnings amounts in accordance with generally accepted accounting principles (GAAP), NW Natural has expressed certain measures in this press release on an equivalent cents-per-share basis, which are non-GAAP financial measures. These amounts reflect factors that directly impact the Company's earnings.
In calculating these financial disclosures, we allocate income tax expense based on the effective tax rate, where applicable. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. NW Natural believes that these non-GAAP financial measures provide useful information to the reader by removing the effects of variances in GAAP reported results of operations that we believe are not indicative of fundamental changes in our financial condition or results of operations.
This report, and other presentations made by NW Natural 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,' 'intends,' 'plans,' 'seeks,' 'believes,' 'estimates,' 'expects,' and similar references to future periods.
Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, objectives, goals, strategies, future events, economic recovery, investments, hedge efficacy, gas reserve investments and their financial value and benefit, customer growth, weather, commodity and other costs, customer rates or rate recovery, effects of the new labor contract, financial positions, revenues and earnings, dividends, performance, operations and maintenance and capital expenses, facility enhancements, timing or effects of future regulatory proceedings or future regulatory approvals, effects of regulatory mechanisms, including, but not limited to, the environmental cost recovery mechanism and gas reserve investments, contracting levels or pricing, and other statements that are other than statements of historical facts.
Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy 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. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future 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 Company's 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 Company's quarterly reports filed thereafter.
All forward-looking statements made in this report and all subsequent forward-looking statements, whether written or oral and whether made by or on behalf of the Company, are expressly qualified by these cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we 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 for the Company 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.
About NW Natural
NW Natural (NYSE: NWN) is headquartered in
Additional information is available at www.nwnatural.com
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