HispanicBusiness

                       NORTHWEST NATURAL GAS COMPANY                       Comparative Income Statement                        (Consolidated - unaudited)                                              Three Months Ended                                   ---------------------------------------In thousands, except per share amounts                            12/31/12  12/31/11   Change   % Change                                   --------- --------- ---------  --------Income from operations             $  56,471 $  59,882 $  (3,411)       (6)%Net income                            28,397    29,244      (847)        3Diluted average shares of common stock outstanding                    26,960    26,784       176         1%Basic earnings per share of common stock                             $    1.06 $    1.09 $   (0.03)        3Diluted earnings per share of common stock                           1.05      1.09     (0.04)        4                                              Twelve Months Ended                                   ---------------------------------------In thousands, except per share amounts                            12/31/12  12/31/11   Change   % Change                                   --------- --------- ---------  --------Income from operations             $ 142,180 $ 144,845 $  (2,665)       (2)%Net income                            59,855    63,898    (4,043)       (6)Diluted average shares of common stock outstanding                    26,907    26,744       163         1%Basic earnings per share of common stock                             $    2.23 $    2.39 $   (0.16)       (7)Diluted earnings per share of common stock                           2.22      2.39     (0.17)       (7)NORTHWEST NATURAL GAS COMPANYConsolidated Balance Sheets (Unaudited)         December 31,   December 31,In thousands                                        2012           2011                                               -------------  -------------Assets:Current assets:  Cash and cash equivalents                    $       8,923  $       5,833  Accounts receivable                                 61,229         77,449  Accrued unbilled revenue                            56,955         61,925  Allowance for uncollectible accounts                (2,518)        (2,895)  Regulatory assets                                   52,448         94,673  Derivative instruments                               1,950          2,853  Inventories                                         67,602         74,363  Gas reserves                                        14,966          4,463  Income taxes receivable                              2,552          7,045  Other current taxes                                 19,592         22,980                                               -------------  -------------    Total current assets                             283,699        348,689                                               -------------  -------------Non-current assets:  Property, plant, and equipment                   2,786,008      2,661,102  Less: Accumulated depreciation                     812,396        767,226                                               -------------  -------------    Total property, plant, and equipment - net     1,973,612      1,893,876  Gas reserves                                        84,693         47,451  Regulatory assets                                  387,888        371,392  Derivative instruments                               3,639             --  Other investments                                   67,667         68,263  Restricted cash                                      4,000          4,000  Other non-current assets                            13,555         12,903                                               -------------  -------------    Total non-current assets                       2,535,054      2,397,885                                               -------------  -------------    Total assets                               $   2,818,753  $   2,746,574                                               =============  =============Liabilities and equity:Current liabilities:  Short-term debt                              $     190,250  $     141,600  Current maturities of long-term debt                    --         40,000  Accounts payable                                    85,613         86,300  Taxes accrued                                        9,588         10,747  Interest accrued                                     5,953          5,857  Regulatory liabilities                              20,792         31,046  Derivative instruments                              10,796         57,317  Other current liabilities                           45,444         41,597                                               -------------  -------------    Total current liabilities                        368,436        414,464                                               -------------  -------------Long-term debt                                       691,700        641,700                                               -------------  -------------Deferred credits and other non-current liabilities:  Deferred tax liabilities                           446,604        413,209  Regulatory liabilities                             288,113        278,382  Pension and other postretirement benefit   liabilities                                       215,792        201,530  Derivative instruments                                 578          6,536  Other non-current liabilities                       74,497         76,265                                               -------------  -------------    Total deferred credits and other non-     current liabilities                           1,025,584        975,922                                               -------------  -------------Equity:  Common stock                                       356,571        348,383  Retained earnings                                  385,753        373,905  Accumulated other comprehensive loss                (9,291)        (7,800)                                               -------------  -------------    Total equity                                     733,033        714,488                                               -------------  -------------    Total liabilities and equity               $   2,818,753  $   2,746,574                                               -------------  -------------NORTHWEST NATURAL GAS COMPANYConsolidated Statements of Cash Flows (Unaudited)In thousands (year ended December 31)                   2012        2011                                                     ----------  ----------Operating activities:  Net income                                         $   59,855  $   63,898  Adjustments to reconcile net income to cash   provided by operations:    Depreciation and amortization                        73,017      70,004    Deferred tax liabilities                             42,780      46,877    Non-cash expenses related to qualified defined     benefit pension plans                                5,448       7,191    Contributions to qualified defined benefit     pension plans                                      (23,500)    (22,045)    Deferred environmental expenditures - net of     recoveries                                         (12,503)     25,586    Other                                                 3,990         280    Changes in assets and liabilities:      Receivables                                        22,170      (6,246)      Inventories                                         6,761       6,022      Taxes accrued                                       3,334      34,189      Accounts payable                                     (602)        148      Interest accrued                                       96         675      Deferred gas costs                                (17,644)      8,565      Other - net                                         5,636      (1,682)                                                     ----------  ----------    Cash provided by operating activities               168,838     233,462                                                     ----------  ----------Investing activities:  Capital expenditures                                 (132,029)   (100,534)  Utility gas reserves                                  (54,085)    (50,597)  Restricted cash                                            --      (3,076)  Other                                                   1,437       1,142                                                     ----------  ----------    Cash used in investing activities                  (184,677)   (153,065)                                                     ----------  ----------Financing activities:  Common stock issued - net                               6,758       3,040  Long-term debt issued                                  50,000      90,000  Long-term debt retired                                (40,000)    (10,000)  Change in short-term debt                              48,650    (115,835)  Cash dividend payments on common stock                (48,007)    (46,690)  Other                                                   1,528       1,464                                                     ----------  ----------    Cash provided by (used in) financing activities      18,929     (78,021)                                                     ----------  ----------Increase (decrease) in cash and cash equivalents          3,090       2,376Cash and cash equivalents - beginning of period           5,833       3,457                                                     ----------  ----------Cash and cash equivalents - end of period            $    8,923  $    5,833                                                     ==========  ==========                                                     ----------  ----------Supplemental disclosure of cash flow information:  Interest paid                                      $   43,061  $   41,413  Income taxes paid                                  $    2,979  $    1,756                                                     ----------  ----------                      NORTHWEST NATURAL GAS COMPANY                     Financial Highlights (Unaudited)                      Fourth Quarter and Year - 2012In thousands,except pershare amounts,customer, and        3 Months Ended                12 Months Endeddegree day data       December 31,                   December 31,                    2012        2011   Change     2012        2011   Change                 ----------  ---------- ----   ----------  ---------- ----Operating revenues        $  229,476  $  264,652  (13)% $  730,607  $  828,055  (12)%Operating expenses:  Cost of gas       113,466     144,628  (22)     355,335     458,508  (23)  Operations and   maintenance       33,980      35,499   (4)     129,477     125,417    3  General taxes       6,872       6,943   (1)      30,598      29,281    4  Depreciation   and   amortization      18,687      17,700    6       73,017      70,004    4                 ----------  ----------        ----------  ----------  Total   operating   expenses         173,005     204,770  (15)     588,427     683,210  (14)                 ----------  ----------        ----------  ----------Income from operations          56,471      59,882   (6)     142,180     144,845   (2)Other income and expense - net        1,300         406  220        4,936       4,523    9Interest expense - net               10,994      11,132   (1)      43,157      42,088    3                 ----------  ----------        ----------  ----------Income before income taxes        46,777      49,156           103,959     107,280Income tax expense             18,380      19,912   (8)      44,104      43,382    2                 ----------  ----------        ----------  ----------Net income       $   28,397  $   29,244   (3)  $   59,855  $   63,898   (6)                 ==========  ==========        ==========  ==========Common shares outstanding:  Average for   period -   basic             26,884      26,719            26,831      26,687  Average for   period -   diluted           26,960      26,784            26,907      26,744  End of Period      26,917      26,756            26,917      26,756Earnings per share:  Basic          $     1.06  $     1.09    3%  $     2.23  $     2.39   (7)%  Diluted              1.05        1.09              2.22        2.39Dividends declared per share of common stock                0.455       0.435              1.79        1.75Book value per share - end of period               27.23       26.70             27.23       26.70Market closing price - end of period               44.20       47.93             44.20       47.93Balance sheet data - end of period:  Total assets   $2,818,753  $2,746,574        $2,818,753  $2,746,574  Total equity      733,033     714,488           733,033     714,488  Long-term debt   (including   amounts due   in one year)     691,700     681,700           691,700     681,700Operating statistics:Customers - end of period          685,941     679,543  0.9%     685,941     679,543  0.9%Utility volumes - therms:  Residential   and   commercial   sales            200,469     224,349           637,885     681,621  Industrial   firm               9,214      10,389            34,932      37,572  Industrial   interruptible     15,559      15,761            59,560      59,108  Transportation    100,987      99,823           379,392     374,053                 ----------  ----------        ----------  ----------Total utility volumes sold and delivered      326,229     350,322         1,111,769   1,152,354Utility operating revenues:  Residential   and   commercial   sales         $  207,497  $  242,954        $  642,337  $  744,355  Industrial   firm               6,788       8,323            25,504      30,587  Industrial   interruptible      7,677       9,065            28,938      34,818  Transportation      4,024       4,039            15,578      15,908  Regulatory   adjustment   for income   taxes paid            --          --                --      (7,162)  Other revenues        874        (382)            5,935       3,713  Less: Revenue   taxes              5,742       6,546            18,430      20,741                 ----------  ----------        ----------  ----------Total utility operating revenues           221,118     257,453           699,862     801,478  Less: Cost of   gas              113,512     144,727           355,335     458,508                 ----------  ----------        ----------  ----------Utility margin   $  107,606  $  112,726        $  344,527  $  342,970                 ==========  ==========        ==========  ==========Degree days:  Average (25-   year average)      1,608       1,614             4,279       4,265  Actual              1,435       1,684             4,152       4,652Percent colder (warmer) than average weather        (11)%         4%               (3)%         9%