PORTLAND, Ore. - Northwest Natural Holding Company (NYSE: NWN), commonly known as NW Natural Holdings, a utility company with a market capitalization of $1.55 billion and annual revenue of $1.14 billion, has finalized its acquisition of SiEnergy Operating, LLC, a fast-growing natural gas utility company. According to InvestingPro analysis, NW Natural Holdings currently trades slightly above its Fair Value, with analysts maintaining a moderate buy consensus. The acquisition, which was initially announced in November 2024, extends NW Natural Holdings' presence in the Texas market, particularly in the high-growth metropolitan areas of Houston, Dallas, and Austin, known collectively as the Texas Triangle.
SiEnergy has demonstrated significant growth, serving around 70,000 residential and commercial customers. The company's expansion has been fueled by infrastructure developments in rapidly growing areas, with a reported rate base of approximately $247 million as of December 31, 2024. Over the past five years, SiEnergy has achieved a compounded annual growth rate of 26% in rate base and 22% in customer growth. NW Natural Holdings itself has maintained strong shareholder returns, with InvestingPro data showing an impressive 54-year streak of consecutive dividend increases and a current dividend yield of 5.08%.
NW Natural Holdings' CEO, David H. Anderson, expressed enthusiasm about the acquisition, stating that SiEnergy aligns with their values and capabilities and is well-positioned for continued expansion as the Texas Triangle areas develop further. June Dively, president of SiEnergy, also commented on the acquisition, expressing eagerness to lead the company into its next growth phase under the umbrella of NW Natural Holdings.
Justin B. Palfreyman, president of NW Natural Holdings, highlighted the long-term value creation expected from the acquisition, noting the potential for increased organic growth and future expansion opportunities in Texas.
NW Natural Holdings, headquartered in Portland, Oregon, has a history spanning over 165 years. The company owns various businesses, including NW Natural, SiEnergy, NW Natural Water Company, and NW Natural Renewables Holdings. It provides essential energy and water services to nearly one million customers across six states and has been recognized as one of the World's Most Ethical Companies® for three consecutive years.
The acquisition is part of NW Natural Holdings' broader strategy to grow its footprint in the energy sector while maintaining a commitment to safety, environmental stewardship, and community engagement. The company's financial details and strategic plans for integrating SiEnergy into its portfolio were not disclosed in the press release statement. For deeper insights into NW Natural Holdings' financial health, growth prospects, and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.
In other recent news, Oregon-based Northwest Natural Holding Company issued $135 million in senior notes. The company, known for its consistent dividend payments, issued two series of notes: $90 million of 5.52% Senior Notes, Series C, due in 2029, and $45 million of 5.86% Senior Notes, Series D, due in 2034. The proceeds from this debt issuance are typically used for corporate expenses, infrastructure investment, debt refinancing, or other operational needs.
On the earnings front, NW Natural Holdings reported a Q3 net loss of $27.2 million, an increase from the previous year's Q3 loss. Despite this, the company reaffirmed its full-year earnings guidance, attributing this confidence to growth in its customer base and an approved $93.3 million revenue requirement increase.
The company is also expanding into the water sector and advancing renewable natural gas initiatives, with its first renewable project already operational and contributing to revenue and cash flow. However, a $13.7 million disallowance related to line extension allowances is set to impact Q4 with a non-cash adjustment of $10.1 million.
These recent developments reflect NW Natural Holdings' strategic efforts to navigate challenges and position itself for future growth. The company is actively pursuing acquisition opportunities and expects to maintain strong capital expenditures in 2024. As NW Natural Holdings continues to execute its initiatives, the detailed guidance promised in February will provide further insights into the company's future direction.
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