# EDGAR Filing Document

**Accession Number:** 0001733998
**File Stem:** 0001733998-26-000087
**Filing Date:** 2026-5
**Character Count:** 379411
**Document Hash:** ad3125f8dffae0eff10d4c6d229147ac
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001733998-26-000087.hdr.sgml**: 20260506

**ACCESSION NUMBER**: 0001733998-26-000087

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 106

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260506

**DATE AS OF CHANGE**: 20260506

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Northwest Natural Holding Co
- **CENTRAL INDEX KEY:** 0001733998
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATURAL GAS DISTRIBUTION [4924]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 824710680
- **STATE OF INCORPORATION:** OR
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38681
- **FILM NUMBER:** 26948474

**BUSINESS ADDRESS:**
- **STREET 1:** 250 SW TAYLOR STREET
- **CITY:** PORTLAND
- **STATE:** OR
- **ZIP:** 97204
- **BUSINESS PHONE:** 503-226-4211

**MAIL ADDRESS:**
- **STREET 1:** 250 SW TAYLOR STREET
- **CITY:** PORTLAND
- **STATE:** OR
- **ZIP:** 97204
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NORTHWEST NATURAL GAS CO
- **CENTRAL INDEX KEY:** 0000073020
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATURAL GAS DISTRIBUTION [4924]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 930256722
- **STATE OF INCORPORATION:** OR
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-15973
- **FILM NUMBER:** 26948475

**BUSINESS ADDRESS:**
- **STREET 1:** 250 SW TAYLOR STREET
- **CITY:** PORTLAND
- **STATE:** OR
- **ZIP:** 97204
- **BUSINESS PHONE:** 5032264211

**MAIL ADDRESS:**
- **STREET 1:** 250 SW TAYLOR STREET
- **CITY:** PORTLAND
- **STATE:** OR
- **ZIP:** 97204

?xml version='1.0' encoding='ASCII'? nwn-20260331

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 10-Q** 

☒&nbsp;&nbsp;&nbsp;&nbsp; QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

**For the quarterly period ended March 31, 2026** 

OR

☐ &nbsp;&nbsp;&nbsp;&nbsp; TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to____________

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ![nwnholdingshza32.jpg](nwn-20260331_g1.jpg) | ![nwnholdingshza32.jpg](nwn-20260331_g1.jpg) | ![nwnholdingshza32.jpg](nwn-20260331_g1.jpg) | ![nwnholdingshza32.jpg](nwn-20260331_g1.jpg) | ![nwn4chza30.jpg](nwn-20260331_g2.jpg) | ![nwn4chza30.jpg](nwn-20260331_g2.jpg) | ![nwn4chza30.jpg](nwn-20260331_g2.jpg) | ![nwn4chza30.jpg](nwn-20260331_g2.jpg) |
| **NORTHWEST NATURAL HOLDING COMPANY** | **NORTHWEST NATURAL HOLDING COMPANY** | **NORTHWEST NATURAL HOLDING COMPANY** | **NORTHWEST NATURAL HOLDING COMPANY** | **NORTHWEST NATURAL GAS COMPANY** | **NORTHWEST NATURAL GAS COMPANY** | **NORTHWEST NATURAL GAS COMPANY** | **NORTHWEST NATURAL GAS COMPANY** |
| (Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) |
| Commission file number | **1-38681** | **1-38681** | **1-38681** | Commission file number | **1-15973** | **1-15973** | **1-15973** |
| **Oregon** | **82-4710680** | **82-4710680** | **82-4710680** | **Oregon** | **93-0256722** | **93-0256722** | **93-0256722** |
| (State or other jurisdiction of<br>incorporation or organization) | (I.R.S. Employer<br>Identification No.) | (I.R.S. Employer<br>Identification No.) | (I.R.S. Employer<br>Identification No.) | (State or other jurisdiction of<br>incorporation or organization) | (I.R.S. Employer<br>Identification No.) | (I.R.S. Employer<br>Identification No.) | (I.R.S. Employer<br>Identification No.) |
| **250 SW Taylor Street** | **250 SW Taylor Street** |  |  | **250 SW Taylor Street** | **250 SW Taylor Street** |  |  |
| **Portland** | **97204** | **97204** | **97204** | **Portland** | **97204** | **97204** | **97204** |
| &nbsp;&nbsp;&nbsp;(Address of principal executive offices) | (Zip Code) | (Zip Code) | (Zip Code) | &nbsp;&nbsp;&nbsp;(Address of principal executive offices) | (Zip Code) | (Zip Code) | (Zip Code) |
| &nbsp;&nbsp;&nbsp;Registrant's telephone number, including area code: | **(503)** | **226-4211** | **226-4211** | &nbsp;&nbsp;&nbsp;Registrant's telephone number, including area code: | **(503)** | **226-4211** | **226-4211** |
| Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: |
| <u>Registrant</u> | <u>Registrant</u> | <u>Title of each class</u> | <u>Title of each class</u> | <u>Trading Symbol</u> | Name of each exchange <br><u>on which registered</u> | Name of each exchange <br><u>on which registered</u> | Name of each exchange <br><u>on which registered</u> |
| NORTHWEST NATURAL HOLDING COMPANY | NORTHWEST NATURAL HOLDING COMPANY | Common Stock | Common Stock | NWN | New York Stock Exchange | New York Stock Exchange | New York Stock Exchange |
| NORTHWEST NATURAL GAS COMPANY | NORTHWEST NATURAL GAS COMPANY |  |  |  |  |  |  |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. |
| NORTHWEST NATURAL HOLDING COMPANY | Yes | ☒ | No | NORTHWEST NATURAL GAS COMPANY | Yes | ☒ | No |
| Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). |
| NORTHWEST NATURAL HOLDING COMPANY | Yes | ☒ | No | NORTHWEST NATURAL GAS COMPANY | Yes | ☒ | No |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. |
| NORTHWEST NATURAL HOLDING COMPANY | NORTHWEST NATURAL HOLDING COMPANY | NORTHWEST NATURAL HOLDING COMPANY | NORTHWEST NATURAL HOLDING COMPANY | NORTHWEST NATURAL GAS COMPANY | NORTHWEST NATURAL GAS COMPANY | NORTHWEST NATURAL GAS COMPANY | NORTHWEST NATURAL GAS COMPANY |
| Large Accelerated Filer | Large Accelerated Filer | Large Accelerated Filer | ☒ | Large Accelerated Filer | Large Accelerated Filer | Large Accelerated Filer | ☐ |
| Accelerated Filer | Accelerated Filer | Accelerated Filer | ☐ | Accelerated Filer | Accelerated Filer | Accelerated Filer | ☐ |
| Non-accelerated Filer | Non-accelerated Filer | Non-accelerated Filer | ☐ | Non-accelerated Filer | Non-accelerated Filer | Non-accelerated Filer | ☒ |
| Smaller Reporting Company | Smaller Reporting Company | Smaller Reporting Company | ☐ | Smaller Reporting Company | Smaller Reporting Company | Smaller Reporting Company | ☐ |
| Emerging Growth Company | Emerging Growth Company | Emerging Growth Company | ☐ | Emerging Growth Company | Emerging Growth Company | Emerging Growth Company | ☐ |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). |
| NORTHWEST NATURAL HOLDING COMPANY | Yes | ☐ | No | NORTHWEST NATURAL GAS COMPANY | Yes | ☐ | No |

---

At April 28, 2026, 42,080,352 shares of Northwest Natural Holding Company's Common Stock (the only class of Common Stock) were outstanding. All shares of Northwest Natural Gas Company's Common Stock (the only class of Common Stock) outstanding were held by Northwest Natural Holding Company.

This combined Form 10-Q is separately filed by Northwest Natural Holding Company and Northwest Natural Gas Company. Information contained in this document relating to Northwest Natural Gas Company is filed by Northwest Natural Holding Company and separately by Northwest Natural Gas Company. Northwest Natural Gas Company makes no representation as to information relating to Northwest Natural Holding Company or its subsidiaries, except as it may relate to Northwest Natural Gas Company and its subsidiaries.

------

**NORTHWEST NATURAL GAS COMPANY**

**NORTHWEST NATURAL HOLDING COMPANY**

For the Quarterly Period Ended March 31, 2026

*****TABLE OF CONTENTS*****

---

| | | |
|:---|:---|:---|
| **PART 1.** | **FINANCIAL INFORMATION** | Page |
|  | <u>[Forward-Looking Statements](#i1ac46f53177747a288fd1116bcb331a7_13)</u> | <u>[3](#i1ac46f53177747a288fd1116bcb331a7_13)</u> |
| <u>[Item 1.](#i1ac46f53177747a288fd1116bcb331a7_16)</u> | Unaudited Financial Statements: |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Comprehensive Income of Northwest Natural Holding Company for the three](#i1ac46f53177747a288fd1116bcb331a7_19)[months](#i1ac46f53177747a288fd1116bcb331a7_19)[ended](#i1ac46f53177747a288fd1116bcb331a7_19)[March 31](#i1ac46f53177747a288fd1116bcb331a7_19)[, 202](#i1ac46f53177747a288fd1116bcb331a7_19)[6](#i1ac46f53177747a288fd1116bcb331a7_19)[and 20](#i1ac46f53177747a288fd1116bcb331a7_19)[25](#i1ac46f53177747a288fd1116bcb331a7_19)</u> | <u>[5](#i1ac46f53177747a288fd1116bcb331a7_19)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Balance Sheets of Northwest Natural Holding Company at](#i1ac46f53177747a288fd1116bcb331a7_22)[March 31](#i1ac46f53177747a288fd1116bcb331a7_22)[, 202](#i1ac46f53177747a288fd1116bcb331a7_22)[6](#i1ac46f53177747a288fd1116bcb331a7_22)[and 202](#i1ac46f53177747a288fd1116bcb331a7_22)[5](#i1ac46f53177747a288fd1116bcb331a7_22)[and December 31, 20](#i1ac46f53177747a288fd1116bcb331a7_22)[25](#i1ac46f53177747a288fd1116bcb331a7_22)</u> | <u>[6](#i1ac46f53177747a288fd1116bcb331a7_22)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Shareholders' Equity of Northwest Natural Holding Company for the three](#i1ac46f53177747a288fd1116bcb331a7_25)[months ended](#i1ac46f53177747a288fd1116bcb331a7_25)[March 31](#i1ac46f53177747a288fd1116bcb331a7_25)[, 202](#i1ac46f53177747a288fd1116bcb331a7_25)[6](#i1ac46f53177747a288fd1116bcb331a7_25)[and 202](#i1ac46f53177747a288fd1116bcb331a7_25)[5](#i1ac46f53177747a288fd1116bcb331a7_25)</u> | <u>[8](#i1ac46f53177747a288fd1116bcb331a7_25)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows of Northwest Natural Holding Company for the](#i1ac46f53177747a288fd1116bcb331a7_28)[three](#i1ac46f53177747a288fd1116bcb331a7_28)[months ended](#i1ac46f53177747a288fd1116bcb331a7_28)[March 31](#i1ac46f53177747a288fd1116bcb331a7_28)[, 202](#i1ac46f53177747a288fd1116bcb331a7_28)[6](#i1ac46f53177747a288fd1116bcb331a7_28)[and 202](#i1ac46f53177747a288fd1116bcb331a7_28)[5](#i1ac46f53177747a288fd1116bcb331a7_28)</u> | <u>[9](#i1ac46f53177747a288fd1116bcb331a7_28)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Comprehensive Income of Northwest Natural Gas Company for the three](#i1ac46f53177747a288fd1116bcb331a7_31)[months ended](#i1ac46f53177747a288fd1116bcb331a7_31)[March 31](#i1ac46f53177747a288fd1116bcb331a7_31)[, 202](#i1ac46f53177747a288fd1116bcb331a7_31)[6](#i1ac46f53177747a288fd1116bcb331a7_31)[and 202](#i1ac46f53177747a288fd1116bcb331a7_31)[5](#i1ac46f53177747a288fd1116bcb331a7_31)</u> | <u>[10](#i1ac46f53177747a288fd1116bcb331a7_31)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Balance Sheets of Northwest Natural Gas Company at](#i1ac46f53177747a288fd1116bcb331a7_34)[March 31](#i1ac46f53177747a288fd1116bcb331a7_34)[, 202](#i1ac46f53177747a288fd1116bcb331a7_34)[6](#i1ac46f53177747a288fd1116bcb331a7_34)[and 202](#i1ac46f53177747a288fd1116bcb331a7_34)[5](#i1ac46f53177747a288fd1116bcb331a7_34)[and December 31, 202](#i1ac46f53177747a288fd1116bcb331a7_34)[5](#i1ac46f53177747a288fd1116bcb331a7_34)</u> | <u>[11](#i1ac46f53177747a288fd1116bcb331a7_34)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Shareholder's Equity of Northwest Natural Gas Company for the three](#i1ac46f53177747a288fd1116bcb331a7_37)[months ended](#i1ac46f53177747a288fd1116bcb331a7_37)[March 31](#i1ac46f53177747a288fd1116bcb331a7_37)[, 202](#i1ac46f53177747a288fd1116bcb331a7_37)[6](#i1ac46f53177747a288fd1116bcb331a7_37)[and 202](#i1ac46f53177747a288fd1116bcb331a7_37)[5](#i1ac46f53177747a288fd1116bcb331a7_37)</u> | <u>[13](#i1ac46f53177747a288fd1116bcb331a7_37)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows of Northwest Natural Gas Company for the](#i1ac46f53177747a288fd1116bcb331a7_40)[three](#i1ac46f53177747a288fd1116bcb331a7_40)[months ended](#i1ac46f53177747a288fd1116bcb331a7_40)[March 31](#i1ac46f53177747a288fd1116bcb331a7_40)[, 202](#i1ac46f53177747a288fd1116bcb331a7_40)[6](#i1ac46f53177747a288fd1116bcb331a7_40)[and 20](#i1ac46f53177747a288fd1116bcb331a7_40)[25](#i1ac46f53177747a288fd1116bcb331a7_40)</u> | <u>[14](#i1ac46f53177747a288fd1116bcb331a7_40)</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to Unaudited Consolidated Financial Statements](#i1ac46f53177747a288fd1116bcb331a7_46)</u> | <u>[15](#i1ac46f53177747a288fd1116bcb331a7_46)</u> |
| <u>[Item 2.](#i1ac46f53177747a288fd1116bcb331a7_118)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i1ac46f53177747a288fd1116bcb331a7_118)</u> | <u>[45](#i1ac46f53177747a288fd1116bcb331a7_118)</u> |
| <u>[Item 3.](#i1ac46f53177747a288fd1116bcb331a7_208)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i1ac46f53177747a288fd1116bcb331a7_208)</u> | <u>[70](#i1ac46f53177747a288fd1116bcb331a7_208)</u> |
| <u>[Item 4.](#i1ac46f53177747a288fd1116bcb331a7_211)</u> | <u>[Controls and Procedures](#i1ac46f53177747a288fd1116bcb331a7_211)</u> | <u>[70](#i1ac46f53177747a288fd1116bcb331a7_211)</u> |
| **PART II.** | **OTHER INFORMATION** |  |
| <u>[Item 1.](#i1ac46f53177747a288fd1116bcb331a7_217)</u> | <u>[Legal Proceedings](#i1ac46f53177747a288fd1116bcb331a7_217)</u> | <u>[71](#i1ac46f53177747a288fd1116bcb331a7_217)</u> |
| <u>[Item 1A.](#i1ac46f53177747a288fd1116bcb331a7_220)</u> | <u>[Risk Factors](#i1ac46f53177747a288fd1116bcb331a7_220)</u> | <u>[71](#i1ac46f53177747a288fd1116bcb331a7_220)</u> |
| <u>[Item 2.](#i1ac46f53177747a288fd1116bcb331a7_223)</u> | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i1ac46f53177747a288fd1116bcb331a7_223)</u> | <u>[71](#i1ac46f53177747a288fd1116bcb331a7_223)</u> |
| <u>[Item 5.](#i1ac46f53177747a288fd1116bcb331a7_226)</u> | <u>[Other Information](#i1ac46f53177747a288fd1116bcb331a7_226)</u> | <u>[71](#i1ac46f53177747a288fd1116bcb331a7_226)</u> |
| <u>[Item 6.](#i1ac46f53177747a288fd1116bcb331a7_232)</u> | <u>[Exhibits](#i1ac46f53177747a288fd1116bcb331a7_232)</u> | <u>[72](#i1ac46f53177747a288fd1116bcb331a7_232)</u> |
|  | <u>[Signatures](#i1ac46f53177747a288fd1116bcb331a7_238)</u> | <u>[74](#i1ac46f53177747a288fd1116bcb331a7_238)</u> |

---

------

PART I. FINANCIAL INFORMATION

***CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS***

• plans, projections and predictions;

• objectives, goals, visions or strategies;

• assumptions, generalizations and estimates;

• ongoing continuation of past practices or patterns;

• future events or performance;

• trends;

• risks;

• uncertainties;

• timing and cyclicality;

• economic conditions, including impacts of inflation, interest rates, recessionary risk, the imposition and/or announcement of tariffs imposed on the import of certain goods into the U.S. from various countries and general economic uncertainty;

• earnings and dividends;

• capital expenditures and allocation;

• capital markets or access to capital;

• capital or organizational structure;

• matters related to climate change and our role in decarbonization or a lower-carbon future;

• renewable natural gas, environmental attributes related thereto, and hydrogen;

• our strategy to reduce greenhouse gas emissions and the efficacy of communicating that strategy to shareholders, investors, stakeholders and communities;

• the policies and priorities of the current presidential administration and U.S. Congress;

• growth;

• customer rates;

• labor relations and workforce succession;

• commodity costs;

• desirability and cost competitiveness of natural gas;

• gas reserves;

• operational performance and costs;

• energy policy, infrastructure and preferences;

• public policy approach and involvement;

• efficacy of derivatives and hedges;

• liquidity, financial positions, and planned securities issuances;

• valuations;

• project and program development, expansion, or investment;

• business development efforts, including new business lines such as unregulated renewable natural gas, and acquisitions and integration thereof;

• implementation and execution of our water strategy;

• pipeline capacity, demand, location, and reliability;

• adequacy of property rights and operations center development;

• technology implementation and cybersecurity practices;

• competition;

• procurement and development of gas (including renewable natural gas) and water supplies;

• estimated expenditures, supply chain and third party availability and impairment;

• supply chain disruptions;

• costs of compliance, and our ability to include those costs in rates;

• customers bypassing our infrastructure;

• credit exposures and credit ratings or changes in credit ratings or outlook;

• uncollectible account amounts;

• rate or regulatory outcomes, recovery or refunds, and the availability of public utility commissions to take action;

• impacts or changes of the current presidential administration, executive orders, laws, rules and regulations, or legal challenges related thereto, including energy and climate related legislation;

• tax liabilities or refunds, including effects of tax legislation;

• levels and pricing of gas storage contracts and gas storage markets;

• outcomes, timing and effects of potential claims, litigation, regulatory actions, and other administrative matters;

• projected obligations, expectations and treatment with respect to, and the impact of new legislation on, retirement plans;

• international, federal, state, and local efforts to regulate, in a variety of ways, greenhouse gas emissions, and the effects of those efforts;

------

• geopolitical factors, including the ongoing conflicts in Europe and the Middle East;

• availability, adequacy, and shift in mix, of gas and water supplies;

• effects of new or anticipated changes in critical accounting policies or estimates;

• approval and adequacy of regulatory deferrals;

• effects and efficacy of regulatory mechanisms; and

• environmental, regulatory, litigation and insurance costs and recoveries, and timing thereof.

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 therefore caution you 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 in NW Holdings' and NW Natural's 2025 Annual Report on Form 10-K, 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 Disclosures about Market Risk*", respectively, and Part I of this report, Items 2 and 3, "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and "*Quantitative and Qualitative Disclosures About Market Risk*", respectively.

Any forward-looking statement made in this report speaks only as of the date on which it is made. Factors or events that could cause actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. 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.

------

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

**NORTHWEST NATURAL HOLDING COMPANY**

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

---

| | | |
|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, |
| *In thousands, except per share data* | 2026 | 2025 |
| Operating revenues | $490403 | $494284 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of gas | 158149 | 172991 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations and maintenance | 83109 | 83683 |
| &nbsp;&nbsp;&nbsp;&nbsp;Environmental remediation | 6325 | 6253 |
| &nbsp;&nbsp;&nbsp;&nbsp;General taxes | 16343 | 15771 |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue taxes | 18100 | 19405 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 44134 | 40500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 1375 | 1327 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 327535 | 339930 |
| Income from operations | 162868 | 154354 |
| Other income (expense), net | 512 | (2516) |
| Interest expense, net | 33352 | 29395 |
| Income before income taxes | 130028 | 122443 |
| Income tax expense | 32539 | 34527 |
| Net income | 97489 | 87916 |
| Other comprehensive income (loss): |  |  |
| Amortization of non-qualified employee benefit plan liability, net of taxes $33 and $25 for the three months ended March 31, 2026 and 2025, respectively | 91 | 175 |
| Unrealized gain (loss) on interest rate swaps, net of taxes $(6) and $47 for the three months ended March 31, 2026 and 2025, respectively | 30 | (130) |
| Comprehensive income | $97610 | $87961 |
| Average common shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 41708 | 40244 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 41816 | 40304 |
| Earnings per share of common stock: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $2.34 | $2.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 2.33 | 2.18 |

---

See Notes to Unaudited Consolidated Financial Statements

------

**NORTHWEST NATURAL HOLDING COMPANY**

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

---

| | | | |
|:---|:---|:---|:---|
| | March 31, | March 31, | December 31, |
| *In thousands* | 2026 | 2025 | 2025 |
| Assets: |  |  |  |
| Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $34945 | $100050 | $36673 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 150545 | 154746 | 121875 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued unbilled revenue | 61236 | 59936 | 97238 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for uncollectible accounts | (4510) | (4427) | (4068) |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory assets | 146545 | 88623 | 143745 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 2719 | 4363 | 3922 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 134745 | 90334 | 127697 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 57895 | 46275 | 75850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 584120 | 539900 | 602932 |
| Non-current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant, and equipment | 5722356 | 5268063 | 5640435 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Accumulated depreciation | 1300897 | 1266222 | 1288422 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property, plant, and equipment, net | 4421459 | 4001841 | 4352013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory assets | 637563 | 371258 | 424194 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 459 | 864 | 366 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments | 69441 | 82663 | 80676 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right of use asset, net | 68113 | 70455 | 68224 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets under sales-type leases | 120450 | 124623 | 121470 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 371257 | 354534 | 370815 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current assets | 146105 | 160754 | 146351 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current assets | 5834847 | 5166992 | 5564109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $6418967 | $5706892 | $6167041 |

---

See Notes to Unaudited Consolidated Financial Statements

------

**NORTHWEST NATURAL HOLDING COMPANY**

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

---

| | | | |
|:---|:---|:---|:---|
| | March 31, | March 31, | December 31, |
| *In thousands, except share information* | 2026 | 2025 | 2025 |
| Liabilities and equity: |  |  |  |
| Current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term debt | $171276 | $81100 | $171989 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current maturities of long-term debt | 160669 | 36838 | 160627 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 124844 | 132814 | 175566 |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes accrued | 17197 | 24115 | 18123 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accrued | 22036 | 16297 | 26121 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory liabilities | 113914 | 111050 | 137974 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 42097 | 26122 | 63631 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 3270 | 2662 | 3228 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 75225 | 82958 | 79186 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 730528 | 513956 | 836445 |
| Long-term debt | 2272444 | 2193071 | 2272202 |
| Deferred credits and other non-current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | 467134 | 424338 | 437467 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory liabilities | 762429 | 730084 | 758407 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension and other postretirement benefit liabilities | 108929 | 127853 | 112139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 17318 | 8224 | 14039 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 74918 | 77226 | 74986 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current liabilities | 408366 | 175922 | 186280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred credits and other non-current liabilities | 1839094 | 1543647 | 1583318 |
| Commitments and contingencies (Note 16) |  |  |  |
| Equity: |  |  |  |
| Common stock - no par value; authorized 100,000,000 shares; issued and outstanding 42,080,010, 40,308,777, and 41,563,577 at March 31, 2026 and 2025, and December 31, 2025, respectively | 1069314 | 992278 | 1044000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 512213 | 470795 | 435823 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (4626) | (6855) | (4747) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | 1576901 | 1456218 | 1475076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $6418967 | $5706892 | $6167041 |

---

See Notes to Unaudited Consolidated Financial Statements

------

**NORTHWEST NATURAL HOLDING COMPANY**

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)

---

| | | |
|:---|:---|:---|
| *In thousands, except per share amounts* | Three Months Ended March 31, | Three Months Ended March 31, |
|  | 2026 | 2025 |
| Total shareholders' equity, beginning balances | $1475076 | $1385371 |
| Common stock: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balances | 1044000 | 989346 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 3907 | 1931 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued pursuant to equity based plans, net of shares withheld for taxes | (760) | (16) |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock, net of issuance costs | 22167 | 1017 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balances | 1069314 | 992278 |
| Retained earnings: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balances | 435823 | 402925 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 97489 | 87916 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends on common stock | (21099) | (20046) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balances | 512213 | 470795 |
| Accumulated other comprehensive income (loss): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balances | (4747) | (6900) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income | 121 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balances | (4626) | (6855) |
| Total shareholders' equity, ending balances | $1576901 | $1456218 |
| Dividends per share of common stock | $0.4925 | $0.4900 |

---

See Notes to Unaudited Consolidated Financial Statements

------

**NORTHWEST NATURAL HOLDING COMPANY**

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

---

| | | |
|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, |
| *In thousands* | 2026 | 2025 |
| Operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $97489 | $87916 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to cash provided by operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 44134 | 40500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 6131 | 5583 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 24998 | 23997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Qualified defined benefit pension plan expense | 2307 | 2719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions to qualified defined benefit pension plans | (2900) | (2610) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred environmental expenditures, net | (6079) | (6991) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Environmental remediation expense | 6325 | 6253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset optimization revenue sharing bill credits | (23156) | (15549) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 4207 | 3016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables, net | 21656 | 15509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (7598) | 18279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income and other taxes | 13408 | 18084 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (31219) | 4187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred gas costs | (29651) | (16959) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset optimization revenue sharing | 4297 | 4357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decoupling mechanism | (15803) | (1422) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cloud-based software | (2490) | (2195) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory accounts | 13208 | 2155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | (3137) | (7219) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash provided by operating activities | 116127 | 179610 |
| Investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (113656) | (102184) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisitions, net of cash acquired |  | (270492) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of equity method investment | (1000) | (1000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (1397) | (1299) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash used by investing activities | (116053) | (374975) |
| Financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from common stock issued, net | 22264 | 961 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt issued |  | 375000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt retired | (121) | (1511) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in other short-term debt, net | (713) | (94010) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash dividend payments on common stock | (19775) | (19104) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of financing fees | (54) | (4307) |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares withheld for tax purposes | (1988) | (1536) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (392) | (1125) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash (used in) provided by financing activities | (779) | 254368 |
| (Decrease) increase in cash, cash equivalents and restricted cash | (705) | 59003 |
| Cash, cash equivalents and restricted cash, beginning of period | 41077 | 47982 |
| Cash, cash equivalents and restricted cash, end of period | $40372 | $106985 |
| Supplemental disclosure of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid, net of capitalization | $36443 | $30109 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid, net of refunds | 1400 | 750 |

---

See Notes to Unaudited Consolidated Financial Statements

------

**NORTHWEST NATURAL GAS COMPANY**

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

---

| | | |
|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, |
| *In thousands* | 2026 | 2025 |
| Operating revenues | $433896 | $448813 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of gas | 140144 | 159436 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations and maintenance | 70530 | 67766 |
| &nbsp;&nbsp;&nbsp;&nbsp;Environmental remediation | 6325 | 6253 |
| &nbsp;&nbsp;&nbsp;&nbsp;General taxes | 16037 | 14979 |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue taxes | 17037 | 18565 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 39444 | 36036 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 693 | 746 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 290210 | 303781 |
| Income from operations | 143686 | 145032 |
| Other expense, net | (104) | (2749) |
| Interest expense, net | 17678 | 15580 |
| Income before income taxes | 125904 | 126703 |
| Income tax expense | 32155 | 35664 |
| Net income | 93749 | 91039 |
| Other comprehensive income: |  |  |
| Amortization of non-qualified employee benefit plan liability, net of taxes of $33 and $25 for the three months ended March 31, 2026 and 2025, respectively | 91 | 175 |
| Comprehensive income | $93840 | $91214 |

---

See Notes to Unaudited Consolidated Financial Statements

------

**NORTHWEST NATURAL GAS COMPANY**

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

---

| | | | |
|:---|:---|:---|:---|
| | March 31, | March 31, | December 31, |
| *In thousands* | 2026 | 2025 | 2025 |
| Assets: |  |  |  |
| Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $24274 | $81767 | $29347 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 128410 | 135432 | 102165 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued unbilled revenue | 55023 | 55961 | 86600 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables from affiliates | 4350 | 2789 | 997 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for uncollectible accounts | (3285) | (3533) | (3048) |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory assets | 145946 | 88598 | 143135 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 2719 | 4339 | 3922 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 126669 | 85641 | 119319 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 50078 | 40698 | 61024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 534184 | 491692 | 543461 |
| Non-current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant, and equipment | 5046862 | 4780480 | 5000329 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Accumulated depreciation | 1257950 | 1237907 | 1256289 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property, plant, and equipment, net | 3788912 | 3542573 | 3744040 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory assets | 632054 | 369628 | 419847 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 459 | 858 | 366 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments | 48821 | 63436 | 61049 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right of use asset, net | 65005 | 67717 | 65650 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets under sales-type leases | 120450 | 124623 | 121470 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current assets | 93425 | 107141 | 93235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current assets | 4749126 | 4275976 | 4505657 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $5283310 | $4767668 | $5049118 |

---

See Notes to Unaudited Consolidated Financial Statements

------

**NORTHWEST NATURAL GAS COMPANY**

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

---

| | | | |
|:---|:---|:---|:---|
| | March 31, | March 31, | December 31, |
| *In thousands* | 2026 | 2025 | 2025 |
| Liabilities and equity: |  |  |  |
| Current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term debt | $— | $— | $9990 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current maturities of long-term debt | 54962 | 29995 | 54948 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 96129 | 112502 | 138931 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payables to affiliates | 17732 | 15706 | 2354 |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes accrued | 15099 | 15416 | 15682 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accrued | 14690 | 12050 | 15399 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory liabilities | 113728 | 110856 | 137908 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 42081 | 26122 | 63578 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 2457 | 1895 | 2515 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 71401 | 78936 | 75667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 428279 | 403478 | 516972 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 1480109 | 1335572 | 1479942 |
| Deferred credits and other non-current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | 449691 | 408249 | 426093 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory liabilities | 752402 | 729139 | 748846 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension and other postretirement benefit liabilities | 108929 | 127853 | 112139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments | 17318 | 8224 | 14039 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 72580 | 75230 | 73097 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current liabilities | 391798 | 163718 | 169746 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred credits and other non-current liabilities | 1792718 | 1512413 | 1543960 |
| Commitments and contingencies (Note 16) |  |  |  |
| Equity: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock | 854903 | 839903 | 854903 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 731915 | 683179 | 658046 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (4614) | (6877) | (4705) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | 1582204 | 1516205 | 1508244 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $5283310 | $4767668 | $5049118 |

---

See Notes to Unaudited Consolidated Financial Statements

------

**NORTHWEST NATURAL GAS COMPANY**

CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY (UNAUDITED)

---

| | | |
|:---|:---|:---|
| *In thousands* | Three Months Ended March 31, | Three Months Ended March 31, |
|  | 2026 | 2025 |
| Total shareholder's equity, beginning balances | $1508244 | $1324050 |
| Common stock: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balances | 854903 | 719903 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital contributions from parent |  | 120000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balances | 854903 | 839903 |
| Retained earnings: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balances | 658046 | 611199 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 93749 | 91039 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends on common stock | (19880) | (19059) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balances | 731915 | 683179 |
| Accumulated other comprehensive income (loss): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balances | (4705) | (7052) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income | 91 | 175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balances | (4614) | (6877) |
| Total shareholder's equity, ending balances | $1582204 | $1516205 |

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See Notes to Unaudited Consolidated Financial Statements

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**NORTHWEST NATURAL GAS COMPANY**

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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| | | |
|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, |
| *In thousands* | 2026 | 2025 |
| Operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $93749 | $91039 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to cash provided by operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 39444 | 36036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 5453 | 5375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 19022 | 22321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Qualified defined benefit pension plan expense | 2307 | 2719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions to qualified defined benefit pension plans | (2900) | (2610) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred environmental expenditures, net | (6079) | (6991) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Environmental remediation expense | 6325 | 6253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset optimization revenue sharing bill credits | (23156) | (15549) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 4398 | 3843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables, net | 15160 | 17855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (7900) | 19390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income and other taxes | 19345 | 17516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (27708) | (2484) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred gas costs | (29651) | (16959) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset optimization revenue sharing | 4297 | 4357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decoupling mechanism | (15803) | (1422) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cloud-based software | (2760) | (2194) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory accounts | 13197 | 1878 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 1594 | 857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash provided by operating activities | 108334 | 181230 |
| Investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (79615) | (83608) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (909) | (1145) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash used by investing activities | (80524) | (84753) |
| Financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash contributions received from parent |  | 120000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in other short-term debt, net | (9990) | (136510) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash dividend payments on common stock | (19880) | (19059) |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares withheld for tax purposes | (1988) | (1536) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (2) | (123) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash used by financing activities | (31860) | (37228) |
| Increase (decrease) in cash, cash equivalents, and restricted cash | (4050) | 59249 |
| Cash, cash equivalents and restricted cash, beginning of period | 33726 | 29428 |
| Cash, cash equivalents and restricted cash, end of period | $29676 | $88677 |
| Supplemental disclosure of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid, net of capitalization | $17479 | $17386 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid, net of refunds | 1400 | 3000 |

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See Notes to Unaudited Consolidated Financial Statements

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

***1. ORGANIZATION AND PRINCIPLES OF CONSOLIDATION***

The accompanying consolidated financial statements represent the respective, consolidated financial results of Northwest Natural Holding Company (NW Holdings) and Northwest Natural Gas Company (NW Natural) and all respective companies that each registrant directly or indirectly controls, either through majority ownership or otherwise. This is a combined report of NW Holdings and NW Natural, which includes separate consolidated financial statements for each registrant.

NW Natural operates as one reportable business segment on a consolidated basis. Prior to the first quarter of 2026, the reportable business segment NW Natural was represented as NWN Gas Utility and excluded certain gas storage and other business activities that were included in Other. Consistent with the method in which the Chief Operating Decision Maker (CODM) reviews each business, these activities were consolidated into NWN Gas Utility and presented as the reportable business segment NW Natural beginning in the first quarter of 2026. The NW Natural segment serves residential, commercial, and industrial customers in Oregon and southwest Washington and includes interstate storage services, third-party asset management services, and appliance center retail operations. NW Holdings and NW Natural historical segment reporting has been recast to reflect their current organizational structure. The recasting did not have a material effect on the consolidated financial statements of NW Holdings or NW Natural.

SiEnergy Operating, LLC (SiEnergy), which was acquired January 7, 2025, owns SiEnergy Gas, LLC, which is a regulated natural gas distribution utility, and serves residential and commercial customers in the greater metropolitan areas of Houston, Dallas, and Austin, Texas. SiEnergy also serves several transmission customers in Dallas and Austin, Texas. SiEnergy activities are reported in the SiEnergy reportable segment.

NW Natural Water Company, LLC (NW Natural Water or NWN Water) activities are reported in the NWN Water reportable segment, which provides water distribution and wastewater services to communities throughout the Pacific Northwest, Texas, Arizona, and California. NW Holdings also has investments and business activities not specifically related to the NW Natural, SiEnergy and NWN Water segments, which are aggregated and reported as Other.

NW Holdings and NW Natural consolidate all entities in which they have a controlling financial interest. Investments in corporate joint ventures and partnerships that NW Holdings does not directly or indirectly control, and for which it is not the primary beneficiary, include NNG Financial's investment in Kelso-Beaver Pipeline and NWN Water's investment in Avion Water Company, Inc., which are accounted for under the equity method. See Note 13 for activity related to equity method investments. NW Holdings and its direct and indirect subsidiaries are collectively referred to herein as NW Holdings, and NW Natural and its direct and indirect subsidiaries are collectively referred to herein as NW Natural. The consolidated financial statements of NW Holdings and NW Natural are presented after elimination of all intercompany balances and transactions.

Information presented in these interim consolidated financial statements is unaudited but includes all material adjustments management considers necessary for a fair statement of the results for each period reported including normal recurring accruals. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in NW Holdings' and NW Natural's combined Annual Report on Form 10-K for the year ended December 31, 2025 (2025 Form 10-K). A significant part of NW Holdings' and NW Natural's business is of a seasonal nature; therefore, NW Holdings and NW Natural results of operations for interim periods are not necessarily indicative of full year results. Seasonality affects the comparability of the results of other operations across quarters but not across years.

Notes to the consolidated financial statements reflect the activity for both NW Holdings and NW Natural for all periods presented, unless otherwise noted. NW Holdings and NW Natural historical segment reporting has been recast to reflect their current organizational structure. The recasting did not have a material effect on the consolidated financial statements of NW Holdings or NW Natural.

***2. SIGNIFICANT ACCOUNTING POLICIES***

Significant accounting policies are described in Note 2 of the 2025 Form 10-K. There were no material changes to those accounting policies during the three months ended March 31, 2026 other than those set forth in this Note 2. The following are updates to certain critical accounting policy estimates and new accounting standards.

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**<u>Industry Regulation</u>** 

NW Holdings' principal business is to operate as a holding company for NW Natural, SiEnergy, NWN Water and its other subsidiaries. NW Natural's principal business is the distribution of natural gas, which is regulated by the Oregon Public Utility Commission (OPUC) and Washington Utilities and Transportation Commission (WUTC). NW Natural also has natural gas storage services, which are regulated by the Federal Energy Regulatory Commission (FERC), and to a certain extent by the OPUC and WUTC. SiEnergy's principal business is the distribution of natural gas in Texas; primarily in the Houston, Dallas and Austin metropolitan areas. SiEnergy also includes a natural gas transmission utility serving customers in the greater metropolitan areas of Dallas and Austin, Texas. SiEnergy's natural gas utilities are subject to regulation by the Railroad Commission of Texas and the cities in which it provides services. NWN Water's principal business is water and wastewater utility services. NWN Water's subsidiaries own water businesses, which are regulated by the public utility commission in the state in which the water utility is located, which is currently Oregon, Washington, Idaho, Texas and Arizona. Wastewater businesses, to the extent they are regulated, are generally regulated by the public utility commissions in the state in which the wastewater utility is located, which is currently Texas and Arizona. Accounting records and practices of the regulated businesses conform to the requirements and uniform system of accounts prescribed by these regulatory authorities in accordance with U.S. GAAP. The businesses in which customer rates are regulated have approved cost-based rates which are intended to allow such businesses to earn a reasonable return on invested capital.

In applying regulatory accounting principles, NW Holdings and NW Natural capitalize or defer certain costs and revenues as regulatory assets and liabilities pursuant to orders of the applicable state public utility commission, which provide for the recovery of revenues or expenses from, or refunds to, utility customers in future periods, including a return or a carrying charge in certain cases.

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Amounts deferred as regulatory assets and liabilities for NW Holdings and NW Natural were as follows:

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| | | | |
|:---|:---|:---|:---|
| | Regulatory Assets | Regulatory Assets | Regulatory Assets |
| | March 31, | March 31, | December 31, |
| *In thousands* | 2026 | 2025 | 2025 |
| **Current:** |  |  |  |
| NW Natural: |  |  |  |
| &nbsp;&nbsp;Unrealized loss on derivatives<sup>(1)</sup> | $42081 | $26122 | $63578 |
| &nbsp;&nbsp;&nbsp;Gas costs | 15523 | 5085 | 6284 |
| &nbsp;&nbsp;Environmental costs<sup>(2)</sup> | 12271 | 10819 | 12148 |
| &nbsp;&nbsp;Decoupling<sup>(3)</sup> | 22136 | 351 | 11631 |
| &nbsp;&nbsp;Pension balancing<sup>(4)</sup> | 7131 | 7131 | 7131 |
| &nbsp;&nbsp;&nbsp;Income taxes | 2208 | 2208 | 2208 |
| &nbsp;&nbsp;&nbsp;Washington Climate Commitment Act compliance | 7754 | 8219 | 7482 |
| &nbsp;&nbsp;&nbsp;Security and systems improvements | 1391 | 2182 | 1771 |
| &nbsp;&nbsp;Industrial demand side management<sup>(5)</sup> | 12149 | 12530 | 10539 |
| &nbsp;&nbsp;Other<sup>(6)</sup> | 23302 | 13951 | 20363 |
| Total current - NW Natural | 145946 | 88598 | 143135 |
| &nbsp;&nbsp;&nbsp;SiEnergy | 275 |  | 410 |
| &nbsp;&nbsp;&nbsp;NWN Water | 324 | 25 | 200 |
| Total current - NW Holdings | $146545 | $88623 | $143745 |
| **Non-current:** |  |  |  |
| NW Natural: |  |  |  |
| &nbsp;&nbsp;Unrealized loss on derivatives<sup>(1)</sup> | $17318 | $8224 | $14039 |
| &nbsp;&nbsp;Pension balancing<sup>(4)</sup> | 13076 | 19174 | 15647 |
| &nbsp;&nbsp;&nbsp;Income taxes | 9289 | 8993 | 9148 |
| &nbsp;&nbsp;&nbsp;Pension and other postretirement benefit liabilities | 93773 | 108970 | 96008 |
| &nbsp;&nbsp;Environmental costs<sup>(2)</sup> | 386358 | 159744 | 180063 |
| &nbsp;&nbsp;&nbsp;Gas costs | 9343 | 1804 | 9434 |
| &nbsp;&nbsp;Decoupling<sup>(3)</sup> | 11746 | 188 | 8891 |
| &nbsp;&nbsp;&nbsp;Washington Climate Commitment Act compliance | 44082 | 28292 | 33085 |
| &nbsp;&nbsp;&nbsp;Security and systems improvements | 8158 | 8452 | 8234 |
| &nbsp;&nbsp;Industrial demand side management<sup>(5)</sup> | 4787 | 4682 | 9334 |
| &nbsp;&nbsp;Other<sup>(6)</sup> | 34124 | 21105 | 35964 |
| Total non-current - NW Natural | 632054 | 369628 | 419847 |
| &nbsp;&nbsp;&nbsp;SiEnergy HB 4384 depreciation deferral | 3288 |  | 2095 |
| &nbsp;&nbsp;&nbsp;SiEnergy other | 1427 | 876 | 1412 |
| &nbsp;&nbsp;&nbsp;NWN Water | 794 | 754 | 840 |
| Total non-current - NW Holdings | $637563 | $371258 | $424194 |

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<sup>(1)</sup> Unrealized gains or losses on derivatives are non-cash items and therefore do not earn a rate of return or a carrying charge. These amounts are recoverable through NW Natural rates as part of the annual Purchased Gas Adjustment (PGA) mechanism when realized at settlement.

<sup>(2)</sup> Refer to the Environmental Cost Deferral and Recovery table in Note 17 for a description of environmental costs.

<sup>(3)</sup> This deferral represents the margin adjustment resulting from differences between actual and expected volumes.

<sup>(4)</sup> Balance represents deferred net periodic benefit costs as approved by the OPUC.

<sup>(5)</sup> Energy efficiency program for industrial sales customers in Oregon to provide assistance with reducing their gas usage.

<sup>(6)</sup> Balances consist of deferrals and amortizations under approved regulatory mechanisms and typically earn a rate of return or carrying charge.

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| | | | |
|:---|:---|:---|:---|
| | Regulatory Liabilities | Regulatory Liabilities | Regulatory Liabilities |
| | March 31, | March 31, | December 31, |
| *In thousands* | 2026 | 2025 | 2025 |
| **Current:** |  |  |  |
| NW Natural: |  |  |  |
| &nbsp;&nbsp;&nbsp;Gas costs | $21838 | $33864 | $34172 |
| &nbsp;&nbsp;Unrealized gain on derivatives<sup>(1)</sup> | 2719 | 4339 | 3922 |
| &nbsp;&nbsp;Decoupling<sup>(2)</sup> | 2738 | 8177 | 5181 |
| &nbsp;&nbsp;&nbsp;Income taxes | 5406 | 4726 | 5406 |
| &nbsp;&nbsp;&nbsp;Asset optimization revenue sharing | 9508 | 8381 | 25981 |
| &nbsp;&nbsp;&nbsp;Washington Climate Commitment Act compliance | 65523 | 46241 | 57441 |
| &nbsp;&nbsp;Other<sup>(3)</sup> | 5996 | 5128 | 5805 |
| Total current - NW Natural | 113728 | 110856 | 137908 |
| &nbsp;&nbsp;&nbsp;SiEnergy | 90 | 61 | 66 |
| &nbsp;&nbsp;&nbsp;NWN Water | 96 | 133 |  |
| Total current - NW Holdings | $113914 | $111050 | $137974 |
| **Non-current:** |  |  |  |
| NW Natural: |  |  |  |
| &nbsp;&nbsp;&nbsp;Gas costs | $903 | $9168 | $687 |
| &nbsp;&nbsp;Unrealized gain on derivatives<sup>(1)</sup> | 459 | 858 | 366 |
| &nbsp;&nbsp;Decoupling<sup>(2)</sup> |  | 2538 |  |
| &nbsp;&nbsp;Income taxes<sup>(4)</sup> | 154830 | 160975 | 159176 |
| &nbsp;&nbsp;Accrued asset removal costs<sup>(5)</sup> | 571035 | 535075 | 561594 |
| &nbsp;&nbsp;&nbsp;Asset optimization revenue sharing |  |  | 2386 |
| &nbsp;&nbsp;Other<sup>(3)</sup> | 25175 | 20525 | 24637 |
| Total non-current - NW Natural | 752402 | 729139 | 748846 |
| &nbsp;&nbsp;&nbsp;SiEnergy asset removal costs | 8621 |  | 8155 |
| &nbsp;&nbsp;&nbsp;NWN Water | 1406 | 945 | 1406 |
| Total non-current - NW Holdings | $762429 | $730084 | $758407 |

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<sup>(1)</sup> Unrealized gains or losses on derivatives are non-cash items and therefore do not earn a rate of return or a carrying charge. These amounts are recoverable through NW Natural rates as part of the annual Purchased Gas Adjustment (PGA) mechanism when realized at settlement.

<sup>(2)</sup> This deferral represents the margin adjustment resulting from differences between actual and expected volumes.

<sup>(3)</sup> Balances consist of deferrals and amortizations under approved regulatory mechanisms and typically earn a rate of return or carrying charge.

<sup>(4)</sup> Balance represents excess deferred income tax benefits subject to regulatory flow-through. See Note 11.

<sup>(5)</sup> Estimated costs of removal on certain regulated properties are collected through rates.

We believe all costs incurred and deferred at March 31, 2026 are prudent. All regulatory assets are reviewed annually for recoverability, or more often if circumstances warrant. If we should determine that all or a portion of these regulatory assets no longer meet the criteria for continued application of regulatory accounting, then NW Holdings and NW Natural would be required to write-off the net unrecoverable balances in the period such determination is made.

**<u>Supplemental Cash Flow Information</u>**

<u>Cash and Cash Equivalents</u>

Cash and cash equivalents include cash on hand plus highly liquid investment accounts with original maturity dates of three months or less. These investments are readily convertible to cash with fair value approximating cost. As of March 31, 2026, the amount invested in money market funds was $2.5 million at NW Holdings and NW Natural. As of March 31, 2025, the amount invested in money market funds was $68.1 million at NW Holdings and NW Natural. These investments are measured using net asset value per share.

<u>Restricted Cash</u>

Restricted cash is primarily comprised of funds from public purpose charges for programs that assist low-income customers with bill payments or energy efficiency. These balances are included in other current assets in the NW Holdings and NW Natural balance sheets.

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The following table provides a reconciliation of the cash, cash equivalents and restricted cash balances at NW Holdings as of March 31, 2026 and 2025 and December 31, 2025:

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| | | | |
|:---|:---|:---|:---|
| | March 31, | March 31, | December 31, |
| *In thousands* | 2026 | 2025 | 2025 |
| Cash and cash equivalents | $34945 | $100050 | $36673 |
| Restricted cash included in other current assets | 5427 | 6935 | 4404 |
| Cash, cash equivalents and restricted cash | $40372 | $106985 | $41077 |

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The following table provides a reconciliation of the cash, cash equivalents and restricted cash balances at NW Natural as of March 31, 2026 and 2025 and December 31, 2025:

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| | | | |
|:---|:---|:---|:---|
| | March 31, | March 31, | December 31, |
| *In thousands* | 2026 | 2025 | 2025 |
| Cash and cash equivalents | $24274 | $81767 | $29347 |
| Restricted cash included in other current assets | 5402 | 6910 | 4379 |
| Cash, cash equivalents and restricted cash | $29676 | $88677 | $33726 |

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**<u>Accounts Receivable and Allowance for Uncollectible Accounts</u>** 

NW Holdings receivable balances primarily consist of trade receivables for the sale of natural gas and natural gas transportation services from NW Natural and SiEnergy and water sales and wastewater services from NWN Water. These businesses establish an allowance for uncollectible accounts for trade receivables (allowance), including accrued unbilled revenue, based on the age of receivable balances, collection experience of past due balances and payment plans, and historical trends of write-offs. Differences between the estimated allowance and actual write-offs will occur based on a number of factors, including changes in economic conditions, customer creditworthiness, and natural gas and water prices. The allowance is adjusted quarterly, as necessary, based on information currently available.

The following table presents the activity related to the NW Holdings provision for uncollectible accounts by pool:

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| | | | | |
|:---|:---|:---|:---|:---|
| | As of<br>December 31, 2025 | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2026 | As of<br>March 31, 2026 |
| *In thousands* | Beginning Balance | Provision recorded, net of adjustments | Write-offs recognized, net of recoveries | Ending Balance |
| Allowance for uncollectible accounts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential | $2280 | $402 | $(54) | $2628 |
| &nbsp;&nbsp;&nbsp;Commercial | 374 | (27) | (48) | 299 |
| &nbsp;&nbsp;&nbsp;Industrial | 46 | 10 |  | 56 |
| &nbsp;&nbsp;&nbsp;Accrued unbilled and other | 348 | (49) | 3 | 302 |
| Total NW Natural | 3048 | 336 | (99) | 3285 |
| Other - NW Holdings | 1020 | 312 | (107) | 1225 |
| Total NW Holdings | $4068 | $648 | $(206) | $4510 |

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<u>Allowance for Net Investments in Sales-Type Leases</u>

NW Natural currently holds two net investments in sales-type leases, with substantially all of the net investment balance related to the North Mist natural gas storage agreement with Portland General Electric (PGE) which is billed under an OPUC-approved rate schedule. See Note 7 for more information on the North Mist lease. There is no allowance for uncollectible accounts recorded for sales-type lease receivables. NW Natural will continue monitoring the credit health of the lessees and the overall economic environment, including the economic factors closely tied to the financial health of our current and future lessees.

**<u>Greenhouse Gas Allowances</u>**

<u>Washington</u>

NW Natural is subject to greenhouse gas (GHG) emission reduction requirements under the Washington Climate Commitment Act (CCA) regulations. Under Washington's CCA, emission reduction compliance mechanisms include: 1) allowances distributed at no cost by the state, 2) purchasing allowances at state-run auctions or secondary markets, 3) purchasing carbon offsets, and 4) supplying alternative gaseous fuels, such as renewable natural gas and hydrogen.

NW Natural accounts for all purchased Washington allowances as inventory at the lower of cost or net realizable value. Any compliance instruments or allowances that are acquired through government allocations at no cost will be accounted for as inventory at no cost. As of March 31, 2026 and 2025, NW Natural had $80.4 million and $49.0 million of emissions allowances for compliance in Washington recorded as inventory.

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The CCA allows for the sale of compliance instruments or allowances, and as a result, should NW Natural sell these it will recognize revenue when title to the instrument or allowance is transferred to a counterparty, and NW Natural will recognize expense at the time of recognition of the related sale. As of March 31, 2026, NW Natural consigned no-cost allowances to Washington auctions and has received a total of $47.1 million in cash, which proceeds were recorded as a regulatory liability for the benefit of customers.

We measure the compliance obligation, which is based on emissions, at the carrying value of inventory held plus the fair value of any additional emission allowances NW Natural would need to purchase to satisfy the obligations. Under the Washington program, NW Natural has recognized a $51.8 million and $36.0 million liability as of March 31, 2026 and 2025. A portion of the costs to comply with the Washington program are currently being recovered from utility customers through rates. NW Natural recognized $51.8 million and $36.0 million of deferred costs as of March 31, 2026 and 2025.

<u>Oregon</u>

NW Natural is subject to GHG emission reduction requirements under the Oregon Climate Protection Program (CPP). Under Oregon's CPP, emission reduction compliance mechanisms include: 1) compliance instruments distributed at no cost by the Oregon Department of Environmental Quality (ODEQ), 2) purchasing credits through funding Community Climate Investments (CCIs), and 3) supplying alternative gaseous fuels, such as renewable natural gas and hydrogen.

NW Natural accounts for purchased Oregon instruments or credits as inventory at the lower of cost or net realizable value. Any compliance instruments that are acquired through government allocations at no cost will be accounted for as inventory at no cost.

We measure the compliance obligation, which is based on emissions, at the carrying value of inventory held plus the fair value of any additional emission allowances NW Natural would need to purchase to satisfy the obligations. NW Natural is currently recovering in Oregon rates costs associated with RNG, as well as costs related to NW Natural's transportation energy efficiency program, all of which reduce NW Natural's compliance obligation under the CPP. Under the Oregon program, NW Natural has not recorded a liability as of March 31, 2026 and 2025.

The CPP allows for the sale of compliance instruments, and as a result, should NW Natural sell these, it will recognize revenue when title to the instrument is transferred to a counterparty, and NW Natural will recognize expense at the time of recognition of the related sale. As of March 31, 2026, NW Natural has not sold compliance instruments on the market.

**<u>Cloud Computing Arrangements</u>**

For GAAP accounting purposes, implementation costs associated with cloud computing arrangements are capitalized consistent with costs capitalized for internal-use software. Capitalized implementation costs are included in other assets in the consolidated balance sheets. The implementation costs are amortized over the term of the related hosting agreement, including renewal periods that are reasonably certain to be exercised. Amortization expense of implementation costs are recorded as operations and maintenance expenses in the consolidated statements of comprehensive income. The implementation costs are included within operating activities in the consolidated statements of cash flows.

For regulatory accounting purposes, cloud-based software is reflected in rate base as property, plant and equipment and amortized over the expected useful life through depreciation expense. NW Natural is allowed recovery of and a return on cloud computing arrangements like other property, plant and equipment in rate base. The amount of cloud-based software capital expenditures for the first three months of 2026 and 2025 was $2.2 million and $2.1 million, respectively. The amount of cloud computing amortization for the first three months of 2026 and 2025 was $3.1 million and $3.1 million, respectively.

**<u>Other Current Assets</u>**

Other current assets consist of various items that are expected to be realized within the next twelve months and are not classified elsewhere on the balance sheet. Other current assets are comprised primarily of prepaid assets, restricted cash and gas reserves. As of March 31, 2026, NW Holdings and NW Natural had $36.0 million and $28.2 million of prepaid assets, respectively, and $2.6 million of gas reserves. As of March 31, 2025. NW Holdings and NW Natural had $31.9 million and $26.4 million of prepaid assets, respectively, and $2.7 million of gas reserves. See the Restricted Cash section above for restricted cash balances.

**<u>New Accounting Standards</u>**

NW Holdings and NW Natural consider the applicability and impact of all accounting standards updates (ASUs) issued by the Financial Accounting Standards Board (FASB). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on consolidated financial position or results of operations.

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<u>Recently Issued Accounting Pronouncements</u>

**DISAGGREGATION OF EXPENSE DISCLOSURES.** In November 2024, the FASB issued ASU 2024-03, which requires additional disclosures of disaggregated income statement expenses. The disclosures are required beginning with our annual report for the year ending December 31, 2027. The FASB issued ASU 2025-01 on January 6, 2025, to amend the effective date language of ASU 2024-03 clarifying that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. ASU 2025-01 did not impact the effective date of ASU 2024-03 for NW Holdings and NW Natural. The adoption of this standard is not anticipated to have an impact on our results of operations, liquidity, or capital resources.

**FINANCIAL INSTRUMENTS-CREDIT LOSSES.** In July 2025, the FASB issued ASU 2025-05, which simplifies how entities estimate credit losses on current accounts receivable and current contract assets arising from revenue transactions under ASC 606. It introduced a practical expedient that allows all entities to assume that economic conditions at the balance sheet date remain unchanged for the life of the asset, eliminating the need for forward-looking forecasts. The Company elected the practical expedient and adopted this ASU effective January 1, 2026. The adoption of this standard did not have a material impact

on our results of operations, liquidity or capital resources.

**IMPROVEMENTS TO INTANGIBLE ASSET ACCOUNTING AND DISCLOSURES**. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06"). This ASU modernizes the accounting for software costs to adapt to an incremental and iterative software development method. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and may be applied using a prospective, modified prospective or retrospective transition approach. The adoption of this standard is not anticipated to have a material impact on our results of operations, liquidity or capital resources.

**INTERIM REPORTING.** In December 2025, the FASB issued ASU 2025-11, which improves the guidance in Topic 270, Interim Reporting, by clarifying the current disclosure requirements for interim periods. The ASU adds to Topic 270 a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. The adoption of this standard is not anticipated to have an impact on our results of operations, liquidity, or capital resources.

**CODIFICATION IMPROVEMENTS**. In December 2025, the FASB issued ASU 2025-12, which makes changes to the Codification that clarify, correct errors, or make minor improvements. The amendments make the Codification easier to understand and apply. The amendments in this ASU are varied in nature and may affect the application of guidance in cases in which the original guidance may have been unclear. ASU 2025-12 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. The adoption of this standard is not anticipated to have an impact on our results of operations, liquidity, or capital resources.

***3. EARNINGS PER SHARE*** 

Basic earnings or loss per share are computed using NW Holdings' net income or loss and the weighted average number of common shares outstanding for each period presented. Diluted earnings per share are computed in the same manner, except using the weighted average number of common shares outstanding plus the effects of the assumed exercise of stock options and the payment of estimated stock awards from other stock-based compensation plans that are outstanding at the end of each period presented. Anti-dilutive stock awards are excluded from the calculation of diluted earnings or loss per common share.

NW Holdings' diluted earnings or loss per share are calculated as follows:

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| | | |
|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, |
| *In thousands, except per share data* | 2026 | 2025 |
| Net income | $97489 | $87916 |
| Average common shares outstanding - basic | 41708 | 40244 |
| &nbsp;&nbsp;Additional shares for stock-based compensation plans (See Note 8) | 108 | 60 |
| Average common shares outstanding - diluted | 41816 | 40304 |
| Earnings per share of common stock: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $2.34 | $2.18 |
| &nbsp;&nbsp;&nbsp;Diluted | 2.33 | 2.18 |
| Additional information: |  |  |
| &nbsp;&nbsp;&nbsp;Anti-dilutive shares | 13 | 10 |

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 ***4. SEGMENT INFORMATION*** 

NW Holdings operates three reportable business segments, which are NW Natural, SiEnergy and NWN Water. NW Holdings also has investments and business activities not specifically related to its reportable business segments, which are aggregated and reported as Other. NW Natural operates as one reportable business segment on a consolidated basis. Prior to the first quarter of 2026, the reportable business segment NW Natural was represented as NWN Gas Utility and excluded certain gas storage and other business activities that were included in Other. Consistent with the method in which the Chief Operating Decision Maker (CODM) reviews each business, these activities were consolidated into NWN Gas Utility and presented as the reportable business segment NW Natural beginning in the first quarter of 2026. NW Holdings and NW Natural historical segment reporting has been recast to reflect their current organizational structure. The recasting did not have a material effect on the consolidated financial statements of NW Holdings or NW Natural.

**<u>NW Natural</u>**

NW Natural is primarily a regulated local gas distribution company serving customers in Oregon and southwest Washington. NW Natural also provides regulated storage services at its Mist underground storage facility. The Mist underground storage facility serves distribution and interstate storage customers, and owns the North Mist gas storage facility, which serves a local electric company. NW Natural also owns NWN Gas Reserves and NW Natural RNG Holding Company, LLC, which procures regulated renewable natural gas for distribution customers. Additionally, NW Natural encompasses interstate storage services, third-party asset management services, and appliance center retail operations.

**<u>SiEnergy</u>**

SiEnergy Operating, LLC (SiEnergy), which was acquired January 7, 2025, owns SiEnergy Gas, LLC, which is a regulated natural gas distribution utility, and serves residential and commercial customers in the greater metropolitan areas of Houston, Dallas, and Austin, Texas. SiEnergy also serves several transmission customers in Dallas and Austin, Texas.

**<u>NWN Water</u>**

NWN Water is a regulated water and wastewater utility serving residential and commercial customers in Oregon, Washington, Idaho, Texas, and Arizona. NWN Water also includes non-regulated wastewater utilities and water services businesses in Oregon, Washington and Idaho, and an equity method investment in Avion Water Company, Inc. (a regulated entity). In addition, NWN Water provides water services to communities throughout the Pacific Northwest and California.

**<u>Other</u>**

NW Holdings' activities in Other includes activities of NW Natural Renewables Holdings, LLC (NWN Renewables), which is engaged in non-regulated renewable natural gas activities; NNG Financial and its pipeline assets; and NWN Energy including its wholly owned subsidiary NW Natural Gas Storage, LLC (NWN Gas Storage), which was formerly involved in a gas storage business. Other also includes corporate revenues and expenses that cannot be allocated to other operations, including certain business development activities.

**<u>Segment Information Summary</u>**

Inter-segment transactions were immaterial for the periods presented. Total assets by segment is not regularly provided to the CODM and is therefore omitted. The following table presents summary financial information concerning the reportable segments and other:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, |
| *In thousands* | NW Natural | SiEnergy<sup>(2)</sup>  | NWN Water | Other | NW Holdings |
| **2026** |  |  |  |  |  |
| Operating revenues | $433896 | $31695 | $14969 | $9843 | $490403 |
| Depreciation | 39444 | 1797 | 2893 |  | 44134 |
| Income from operations<sup>(1)</sup> | 143686 | 13834 | 2399 | 2949 | 162868 |
| Interest expense, net | 17678 | 2543 | 688 | 12443 | 33352 |
| Income tax expense (benefit) | 32155 | 2537 | 554 | (2707) | 32539 |
| Capital expenditures | 79615 | 24944 | 9097 |  | 113656 |
| **2025** |  |  |  |  |  |
| Operating revenues | $448813 | $22666 | $13909 | $8896 | $494284 |
| Depreciation | 36036 | 2070 | 2394 |  | 40500 |
| Income from operations<sup>(1)</sup> | 145032 | 9613 | 3043 | (3334) | 154354 |
| Interest expense, net | 15580 | 2257 | 792 | 10766 | 29395 |
| Income tax expense (benefit) | 35664 | 1944 | 631 | (3712) | 34527 |
| Capital expenditures | 83608 | 10525 | 8051 |  | 102184 |

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<sup>(1) &nbsp;&nbsp;&nbsp;&nbsp;</sup>Income from operations is not a financial measure used by the CODM for NW Natural or SiEnergy, but is included in the table above to enable the reconciliation of NW Natural and SiEnergy margin to consolidated income before taxes in accordance with ASU 2023-07.

<sup>(2)</sup> &nbsp;&nbsp;&nbsp;&nbsp;SiEnergy was acquired by NW Holdings on January 7, 2025. Results for the period from January 7, 2025 to March 31, 2025 are presented in the table above. Prior to January 7, 2025, NW Holdings did not operate any assets that fall within its SiEnergy segment.

NW Holdings and NW Natural's CODM is the chief executive officer. The CODM uses NW Natural margin, SiEnergy margin and NWN Water income from operations to allocate resources, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis when making decisions about allocating capital and personnel. The CODM also uses NW Natural margin, SiEnergy margin and NWN Water income from operations to assess the performance of NW Natural, SiEnergy and NWN Water, respectively.

**<u>NW Natural Margin</u>**

NW Natural margin is the primary financial measure used by the CODM, consisting of NW Natural operating revenues, reduced by the associated cost of gas, environmental remediation expense, and revenue taxes. The cost of gas purchased for customers is generally a pass-through cost in the amount of revenues billed. Environmental remediation expense represents collections received from customers through environmental recovery mechanisms in Oregon and Washington as well as adjustments for the Oregon environmental earnings test when applicable. This is offset by environmental remediation expense presented in operating expenses. Revenue taxes are collected from customers and remitted to taxing authorities. The collections from customers are offset by the expense recognition of the obligation to the taxing authority. Regulated gas storage margin is equivalent to operating revenues. By subtracting cost of gas, environmental remediation expense, and revenue taxes from NW Natural operating revenues, NW Natural margin provides a key metric used by the CODM in assessing the performance of the NW Natural segment.

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The following table presents additional segment information concerning NW Natural margin:

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| | | |
|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, |
| *In thousands* | 2026 | 2025 |
| NW Natural margin calculation: |  |  |
| &nbsp;&nbsp;&nbsp;Distribution revenues | $421234 | $435908 |
| &nbsp;&nbsp;&nbsp;Regulated gas storage | 9606 | 9784 |
| &nbsp;&nbsp;&nbsp;Other revenue | 3056 | 3121 |
| &nbsp;&nbsp;&nbsp;Total operating revenues | 433896 | 448813 |
| &nbsp;&nbsp;&nbsp;Less: Cost of gas | 140144 | 159436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Environmental remediation | 6325 | 6253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue taxes | 17037 | 18565 |
| &nbsp;&nbsp;&nbsp;NW Natural margin | 270390 | 264559 |
| &nbsp;&nbsp;&nbsp;Operations and maintenance | 70530 | 67766 |
| &nbsp;&nbsp;&nbsp;General taxes | 16037 | 14979 |
| &nbsp;&nbsp;&nbsp;Depreciation | 39444 | 36036 |
| &nbsp;&nbsp;&nbsp;Other Operating Expenses | 693 | 746 |
| NW Natural income from operations | $143686 | $145032 |

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**<u>SiEnergy Margin</u>**

SiEnergy margin is the primary financial measure used by the CODM, consisting of SiEnergy operating revenues, reduced by the associated cost of gas and revenue taxes. The cost of gas purchased for SiEnergy customers is generally a pass-through cost in the amount of revenues billed to regulated SiEnergy customers. Revenue taxes are collected from customers and remitted to taxing authorities. The collections from customers are offset by the expense recognition of the obligation to the taxing authority. By subtracting cost of gas and revenue taxes from SiEnergy operating revenues, SiEnergy margin provides a key metric used by the CODM in assessing the performance of the segment.

The following table presents additional segment information concerning SiEnergy margin:

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| | | |
|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, |
| *In thousands* | 2026 | 2025<sup>(1)</sup> |
| SiEnergy margin calculation: |  |  |
| &nbsp;&nbsp;&nbsp;Distribution revenues | $31695 | $22666 |
| &nbsp;&nbsp;&nbsp;Total operating revenues | 31695 | 22666 |
| &nbsp;&nbsp;&nbsp;Less: Cost of gas | 12279 | 8303 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue taxes | 961 | 779 |
| &nbsp;&nbsp;&nbsp;SiEnergy margin | 18455 | 13584 |
| &nbsp;&nbsp;&nbsp;Operations and maintenance | 2814 | 1682 |
| &nbsp;&nbsp;&nbsp;General taxes | 10 | 219 |
| &nbsp;&nbsp;&nbsp;Depreciation | 1797 | 2070 |
| SiEnergy income from operations | $13834 | $9613 |

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<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;SiEnergy was acquired by NW Holdings on January 7, 2025. Results for the period from January 7, 2025 to March 31, 2025 are presented in the table above. Prior to January 7, 2025, NW Holdings did not operate any assets that fall within its SiEnergy segment.

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**<u>Significant Segment Expenses</u>**

Public entities are required to disclose significant segment expenses for each reportable segment if they are regularly provided to the CODM and included in the reported measure of segment profit/loss. This requirement does not necessitate additional disclosure for the NW Natural and SiEnergy segments, as all expense categories are presented above in the NW Natural margin table and SiEnergy margin table, respectively. Significant segment expenses for NWN Water are presented below.

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| | | |
|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, |
| *In thousands* | 2026 | 2025 |
| Operating revenues | $14969 | $13909 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations and maintenance | 8607 | 7265 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 2893 | 2394 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses<sup>(1)</sup> | 1070 | 1207 |
| Income from operations | $2399 | $3043 |

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<sup>(1)</sup> Other operating expenses include general and revenue taxes and other expenses.

**5. *COMMON STOCK***

In August 2024, the Finance Committee of the NW Holdings' Board of Directors authorized NW Holdings' sale of $200 million in the aggregate gross sales price under the at-the-market (ATM) equity program first initiated in August 2021. NW Holdings is under no obligation to offer and sell common stock under the ATM equity program. Any shares of common stock offered under the ATM equity program are registered on NW Holdings' universal shelf registration statement filed with the SEC, which expires in August 2027, or will be registered on a subsequent registration statement to be filed by NW Holdings.

During the three months ended March 31, 2026, NW Holdings issued and sold 441,034 shares of common stock pursuant to the ATM equity program resulting in cash proceeds of $22.2 million, net of fees and commissions paid to agents of $0.3 million. As of March 31, 2026, $75.2 million of equity remained available for issuance under the ATM equity program.

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***6. REVENUE*** 

The following tables present disaggregated revenue of NW Holdings:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, |
| *In thousands* | NW Natural | SiEnergy<sup>(1)</sup>  | NWN Water | Other | NW Holdings |
| **2026** |  |  |  |  |  |
| Natural gas sales | $399119 | $28376 | $— | $1378 | $428873 |
| Gas storage revenue, net | 4365 |  |  |  | 4365 |
| Asset management revenue, net | 1747 |  |  |  | 1747 |
| Water and wastewater revenue |  |  | 14969 |  | 14969 |
| Gas appliance retail revenue | 1309 |  |  |  | 1309 |
| Renewable natural gas sales |  |  |  | 8465 | 8465 |
| Other revenue | 876 |  |  |  | 876 |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue from contracts with customers | 407416 | 28376 | 14969 | 9843 | 460604 |
| Alternative revenue | 22027 | 3319 |  |  | 25346 |
| Leasing revenue | 4453 |  |  |  | 4453 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenues | $433896 | $31695 | $14969 | $9843 | $490403 |
| **2025** |  |  |  |  |  |
| Natural gas sales | $430249 | $22327 | $— | $1170 | $453746 |
| Gas storage revenue, net | 4616 |  |  |  | 4616 |
| Asset management revenue, net | 1749 |  |  |  | 1749 |
| Water and wastewater revenue |  |  | 13909 |  | 13909 |
| Gas appliance retail revenue | 1372 |  |  |  | 1372 |
| Renewable natural gas sales |  |  |  | 7726 | 7726 |
| Other revenue | 952 |  |  |  | 952 |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue from contracts with customers | 438938 | 22327 | 13909 | 8896 | 484070 |
| Alternative revenue | 5569 | 339 |  |  | 5908 |
| Leasing revenue | 4306 |  |  |  | 4306 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenues | $448813 | $22666 | $13909 | $8896 | $494284 |

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<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;SiEnergy was acquired by NW Holdings on January 7, 2025. Results for the period from January 7, 2025 to March 31, 2025 are presented in the table above. Prior to January 7, 2025, NW Holdings did not operate any assets that fall within its SiEnergy segment.

Natural gas sales represent the majority of NW Holdings' revenue and is recognized when the obligation to customers is satisfied and in the amount expected to be received in exchange for transferring goods or providing services. Revenue from contracts with customers contains one performance obligation that is generally satisfied over time as the customer receives the natural gas. The transaction price is determined by a set price agreed upon in the contract or dependent on regulatory tariffs. Customer accounts are settled on a monthly basis or paid at time of sale. Based on historical experience, it is probable that we will collect substantially all of the consideration to which we are entitled. We evaluated the probability of collection in accordance with the current expected credit losses standard.

NW Holdings and NW Natural do not have any material contract assets, as net accounts receivable and accrued unbilled revenue balances are unconditional and only involve the passage of time until such balances are billed and collected. NW Holdings and NW Natural do not have any material contract liabilities.

Revenue taxes are included in operating revenues with an equal and offsetting expense recognized in operating expenses in the consolidated statements of comprehensive income. Revenue-based taxes are primarily franchise taxes, which are collected from utility customers and remitted to taxing authorities.

**Components of Revenue**

The components of NW Holdings' revenue, by reportable business segment, are explained below.

**<u>NW Natural</u>**

<u>Natural Gas Sales</u>

NW Natural's primary source of revenue is providing natural gas to customers in the NW Natural service territory, which includes residential, commercial, industrial and transportation customers. NW Natural revenue is generally recognized over time upon

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delivery of the gas commodity or service to the customer, and the amount of consideration received and recognized as revenue is dependent on the Oregon and Washington tariffs. There is no right of return or warranty for services provided. Revenues include firm and interruptible sales and transportation services, franchise taxes recovered from the customer, late payment fees, service fees, and accruals for gas delivered but not yet billed (accrued unbilled revenue). The accrued unbilled revenue balance is based on estimates of deliveries during the period from the last meter reading and management judgment is required for a number of factors used in this calculation, including customer use and weather factors.

Customer accounts are to be paid in full each month and there is no significant financing component for this source of revenue. Due to the election of the right to invoice practical expedient, we do not disclose the value of unsatisfied performance obligations.

<u>Gas Storage Revenue</u>

NW Natural's gas storage revenue includes gas storage activity, which includes Interstate Storage Services used to store natural gas for customers. Gas storage revenue is generally recognized over time as the gas storage service is provided to the customer and the amount of consideration received and recognized as revenue is dependent on set rates defined per the storage agreements. Noncash consideration in the form of dekatherms of natural gas is received as consideration for providing gas injection services to gas storage customers. This noncash consideration is measured at fair value using the average spot rate. Customer accounts are generally paid in full each month, and there is no right of return or warranty for services provided. Revenues include firm and interruptible storage services, net of the profit sharing amount refunded to NW Natural customers.

<u>Asset Management Revenue</u>

Revenues include the optimization of storage assets and pipeline capacity by a third-party and are provided net of the profit sharing amount refunded to NW Natural customers. Certain asset management revenues received are recognized over time using a straight-line approach over the term of each contract, and the amount of consideration received and recognized as revenue is dependent on a variable pricing model. Variable revenues earned above guaranteed amounts are estimated and recognized at the end of each period using the most likely amount approach. Additionally, other asset management revenues may be based on a fixed rate. Generally, asset management accounts are settled on a monthly basis.

As of March 31, 2026, unrecognized revenue for the fixed component of the transaction price related to gas storage and asset management revenue was approximately $112.3 million. Of this amount, approximately $23.0 million will be recognized during the remainder of 2026, $21.8 million in 2027, $16.8 million in 2028, $16.8 million in 2029, $16.3 million in 2030 and $17.6 million thereafter. The amounts presented here are calculated using current contracted rates.

<u>Gas Appliance Retail Revenue</u>

NW Natural owns and operates an appliance store that is open to the public, where customers can purchase natural gas home appliances. Revenue from the sale of appliances is recognized at the point in time in which the appliance is transferred to the third party responsible for delivery and installation services and when the customer has legal title to the appliance. It is required that the sale be paid for in full prior to transfer of legal title. The amount of consideration received and recognized as revenue varies with changes in marketing incentives and discounts offered to customers.

<u>Alternative Revenue</u>

Weather normalization (WARM) and decoupling mechanisms are considered to be alternative revenue programs. Alternative revenue programs are considered to be contracts between NW Natural and its regulator and are excluded from revenue from contracts with customers.

<u>Leasing Revenue</u>

Leasing revenue primarily consists of revenues from NW Natural's North Mist Storage contract with PGE (Portland General Electric) in support of PGE's gas-fired electric power generation facilities under an initial 30-year contract with options to extend, totaling up to an additional 50 years upon mutual agreement of the parties. The facility is accounted for as a sales-type lease and qualifies for regulatory accounting deferral treatment. The investment is included in rate base under an established cost-of-service tariff schedule, with revenues recognized according to the tariff schedule and profit upon commencement was deferred and will be amortized over the lease term.

Billing rates under the cost-of-service tariff will be updated annually to reflect current information including depreciable asset levels, forecasted operating expenses, and the results of regulatory proceedings, as applicable, and revenue received under this agreement is recognized as operating revenue on the consolidated statements of comprehensive income. There are no variable payments or residual value guarantees. The lease does not contain an option to purchase the underlying assets. NW Natural also maintains other immaterial sales type leases that are subject to an OPUC approved rate schedule. None of these other leases have variable payments or residual value guarantees and no significant selling profit upon lease commencement.

NW Natural also maintains a sales-type lease for specialized compressor facilities to provide high pressure compressed natural gas (CNG) services. Lease payments are outlined in an OPUC-approved rate schedule over a 10-year term. There are no variable payments or residual value guarantees. The selling profit computed upon lease commencement was not significant.

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Leasing revenue also contains rental revenue from small leases of property owned by NW Natural to third parties. The majority of these transactions are accounted for as operating leases and the revenue is recognized over the term of the lease agreement. Lease revenue is excluded from revenue from contracts with customers.

The components of lease revenue at NW Holdings and NW Natural were as follows:

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| | | |
|:---|:---|:---|
| *In thousands* | Three Months Ended March 31, | Three Months Ended March 31, |
|  | 2026 | 2025 |
| **NW Natural:** |  |  |
| Lease revenue |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating leases | $19 | $21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales-type leases | 4434 | 4285 |
| Total lease revenue | $4453 | $4306 |

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**<u>SiEnergy</u>**

SiEnergy's primary source of revenue is providing natural gas to customers in the SiEnergy service territory, which includes residential and commercial customers. SiEnergy revenue is generally recognized over time upon delivery of the gas commodity or service to the customer, and the amount of consideration received and recognized as revenue is dependent on the Texas tariff. There is no right of return or warranty for services provided. The accrued unbilled revenue balance is based on estimates of deliveries during the period from the last meter reading and management judgment is required for a number of factors used in this calculation, including customer use and weather factors.

Customer accounts are to be paid in full each month and there is no significant financing component for this source of revenue. Due to the election of the right to invoice practical expedient, we do not disclose the value of unsatisfied performance obligations.

<u>Alternative Revenue</u>

Weather normalization (WNA) is considered to be an alternative revenue program. An alternative revenue program is considered to be a contract between SiEnergy and its regulators and is excluded from revenue from contracts with customers.

**<u>NWN Water</u>**

NWN Water provides water and wastewater services to customers. Water and wastewater service revenue is generally recognized over time upon delivery of the water commodity or service to the customer, and the amount of consideration received and recognized as revenue is dependent on the tariffs established in the states we operate. There is no right of return or warranty for services provided.

Customer accounts are to be paid in full each month, bi-monthly, or quarterly and as such, there is no significant financing component for this source of revenue. Due to the election of the right to invoice practical expedient, we do not disclose the value of unsatisfied performance obligations.

**<u>Other</u>**

<u>Renewable Natural Gas Sales</u>

NWN Renewables is an unregulated subsidiary of NW Holdings established to pursue investments in renewable natural gas (RNG) activities. NWN Renewables' primary source of revenue is from the sale of RNG under long-term contracts. RNG revenue is generally recognized over time upon delivery of the gas commodity to the customer at the designated delivery point and the amount of consideration received and recognized as revenue is dependent on a variable pricing model defined per the contract. Customer accounts are to be paid in full each month and as such, there is no significant financing component for this source of revenue. Due to the election of the right to invoice practical expedient, we do not disclose the value of unsatisfied performance obligations.

***7. LEASES***

**<u>Lease Expense</u>**

<u>Operating Leases</u>

We have operating leases for land, buildings and equipment. Our primary lease is for NW Natural's headquarters and operations center. Our leases have remaining lease terms of 2 months to 14 years. Many of our lease agreements include options to extend the lease, which we do not include in our minimum lease terms unless they are reasonably certain to be exercised. Short-term leases with a term of 12 months or less are not recorded on the balance sheet. As most of our leases do not provide an implicit rate and are entered into by NW Natural, we use an estimated discount rate representing the rate we would have incurred to finance the funds necessary to purchase the leased asset and is based on information available at the lease commencement date in determining the present value of lease payments.

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The components of lease expense, a portion of which is capitalized, were as follows:

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| | | |
|:---|:---|:---|
| *In thousands* | Three Months Ended March 31, | Three Months Ended March 31, |
|  | 2026 | 2025 |
| **NW Holdings:** |  |  |
| Operating lease expense | $2252 | $2111 |
| Short-term lease expense | 218 | 189 |
| **NW Natural:** |  |  |
| Operating lease expense | $1954 | $1867 |
| Short-term lease expense | 120 | 189 |

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The Company's lease arrangements are described in Note 7 to the consolidated financial statements included in the Company's Annual Report on Form 10-K, which should be read in conjunction with this Form 10-Q. There have been no material changes to the Company's lease portfolio during the current quarter.

The weighted-average remaining lease terms and weighted-average discount rates for the operating leases were as follows:

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| | | | |
|:---|:---|:---|:---|
| *In thousands* | March 31, | March 31, | December 31, |
|  | 2026 | 2025 | 2025 |
| **NW Natural:** |  |  |  |
| Weighted-average remaining lease term (years) | 14.0 | 15.0 | 14.3 |
| Weighted-average discount rate | 7.3% | 7.3% | 7.3% |

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<u>Supplemental Cash Flow</u>

Supplemental cash flow information related to leases was as follows:

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| | | |
|:---|:---|:---|
| *In thousands* | Three Months Ended March 31, | Three Months Ended March 31, |
|  | 2026 | 2025 |
| **NW Holdings:** |  |  |
| Cash paid for amounts included in the measurement of lease liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from operating leases | $2107 | $1918 |
| Right of use assets obtained in exchange for lease obligations |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating leases | $978 | $2647 |
| **NW Natural:** |  |  |
| Cash paid for amounts included in the measurement of lease liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from operating leases | $1931 | $1861 |
| Right of use assets obtained in exchange for lease obligations |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating leases | $250 | $346 |

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***8. STOCK-BASED COMPENSATION*** 

Stock-based compensation plans are designed to promote stock ownership in NW Holdings by employees, including officers. These compensation plans include a Long Term Incentive Plan (LTIP) and an Employee Stock Purchase Plan (ESPP). For additional information on stock-based compensation plans, see Note 8 in the 2025 Form 10-K and the updates provided below.

**<u>Long Term Incentive Plan</u>**

<u>Performance Shares</u>

LTIP performance shares incorporate a combination of market, performance, and service-based factors. During the three months ended March 31, 2026, the final performance factor under the 2024-2026 LTIP was approved and 52,178 performance-based shares were granted under the 2024-2026 LTIP for accounting purposes. As such, NW Natural began recognizing compensation expense.

In February 2025, LTIP shares were awarded to participants; however, the agreement allows for one of the performance factors to remain variable until the first quarter of the third year of the award period. As the performance factor will not be approved until the first quarter of 2027, there is not a mutual understanding of the awards' key terms and conditions between NW Holdings and the participants as of March 31, 2026, and therefore, no expense was recognized for the 2025-2027 award. NW Holdings will

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calculate the grant date fair value and the applicable subsidiaries of NW Holdings will recognize expense over the remaining service period for each award once the final performance factor has been approved.

In February 2026, LTIP shares were awarded to certain participants; however, the agreement allows for one of the performance factors to remain variable until the first quarter of the third year of the award period. As the performance factor will not be approved until the first quarter of 2028, there is not a mutual understanding of the awards' key terms and conditions between NW Holdings and the participants as of March 31, 2026, and therefore, no expense was recognized for the 2026-2028 award. NW Holdings will calculate the grant date fair value and the applicable subsidiaries of NW Holdings will recognize expense over the remaining service period for each award once the final performance factor has been approved.

For the 2025-2027 and 2026-2028 LTIP awards, share payouts range from a threshold of 0% to a maximum of 200% based on achievement of pre-established goals. The performance criteria for the 2025-2027 and 2026-2028 performance shares consists of a three-year Return on Invested Capital (ROIC) threshold that must be satisfied and a cumulative EPS factor, which can be modified by a total shareholder return factor (TSR modifier) relative to the performance of peer group companies over the performance period of three years for each respective award. If the targets were achieved for the 2025-2027 and 2026-2028 awards, NW Holdings would grant for accounting purposes 73,640 and 65,240 shares in the first quarters of 2027 and 2028, respectively.

In February 2025 and 2026, 6,135 and 8,675 LTIP shares were awarded to certain participants, respectively. The LTIP awards share payouts range from a threshold of 0% to a maximum of 200% based on achievement of pre-established goals. The performance criteria for the 2025-2027 and 2026-2028 performance shares consist of a three-year ROIC threshold that must be satisfied and a 3-year cumulative EBITDA, which can be modified by a TSR modifier relative to the performance peer group companies over the period group. During the three months ended March 31, 2026, there was mutual understanding of all key terms of the awards. As such, NW Holdings recognized compensation expense.

As of March 31, 2026, there was $1.5 million of unrecognized compensation, which is expected to be recognized through 2028.

<u>Restricted Stock Units</u>

During the three months ended March 31, 2026, 59,349 RSUs were granted under the LTIP with a weighted-average grant date fair value of $49.99 per share. Generally, the RSUs awarded are forfeitable and include a performance-based threshold as well as a vesting period of three years from the grant date. The majority of our RSU grants obligate NW Holdings, upon vesting, to issue the RSU holder one share of common stock. The grant may also include a cash payment equal to the total amount of dividends paid per share between the grant date and vesting date of that portion of the RSU depending on the structure of the award agreement. The fair value of an RSU is equal to the closing market price of NW Holdings' common stock on the grant date.

As of March 31, 2026, there was $5.5 million of unrecognized compensation cost from grants of RSUs, which is expected to be recognized over a period extending through 2029.

***9. DEBT*** 

The nature and terms of our debt instruments and credit facilities are described in detail in Note 9 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Other than as described below, there were no other material changes in the terms of our debt instruments during the three months ended March 31, 2026.

**<u>Short-Term Debt</u>**

NW Holdings' short-term debt consisted of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | March 31, 2026 | March 31, 2026 | March 31, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2025 |
| *In millions* | Balance Outstanding | Weighted Average Interest Rate<sup>(1)</sup> | Balance Outstanding | Weighted Average Interest Rate<sup>(1)</sup> | Balance Outstanding | Weighted Average Interest Rate<sup>(1)</sup> |
| Commercial Paper Borrowings - NW Holdings<sup>(2)</sup> | $171.3 | 4.1% | $— | —% | $162.0 | 4.1% |
| Commercial Paper Borrowings - NW Natural |  | —% |  | —% | 10.0 | 4.0% |
| NW Holdings Credit Agreement Loans |  | —% | 81.1 | 5.5% |  | —% |
| Total short-term debt | $171.3 |  | $81.1 |  | $172.0 |  |

---

<sup>(1)</sup> Weighted average interest rate on outstanding short-term debt

<sup>(2)</sup> NW Holdings initiated a commercial paper program in March 2025.

**<u>Long-Term Debt</u>**

------

NW Holdings' long-term debt consisted of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | March 31, 2026 | March 31, 2026 | March 31, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2025 |
| *In millions* | Balance Outstanding | Weighted Average Interest Rate<sup>(1)</sup> | Balance Outstanding | Weighted Average Interest Rate<sup>(1)</sup> | Balance Outstanding | Weighted Average Interest Rate<sup>(2)</sup> |
| NW Natural first mortgage bonds | $1544.7 | 4.7% | $1374.7 | 4.6% | $1544.7 | 4.7% |
| SiEnergy term loan<sup>(3)</sup> |  | —% | 149.6 | 6.1% |  | —% |
| SiEnergy secured senior notes | 185.0 | 5.6% |  | —% | 185.0 | 5.6% |
| NWN Water term loan | 55.0 | 4.7% | 55.0 | 4.7% | 55.0 | 4.7% |
| Other water debt | 3.9 |  | 5.0 |  | 4.0 |  |
| NW Holdings unsecured senior bonds | 285.0 | 5.7% | 285.0 | 5.7% | 285.0 | 5.7% |
| NW Holdings term loan | 50.0 | 4.7% | 50.0 | 5.3% | 50.0 | 5.2% |
| NW Holdings junior subordinated debentures | 325.0 | 7.0% | 325.0 | 7.0% | 325.0 | 7.0% |
| Long-term debt, gross | 2448.6 |  | 2244.3 |  | 2448.7 |  |
| &nbsp;&nbsp;Less: unamortized debt issuance costs | 15.5 |  | 14.4 |  | 15.9 |  |
| &nbsp;&nbsp;&nbsp;Less: current maturities | 160.7 |  | 36.8 |  | 160.6 |  |
| Total long-term debt | $2272.4 |  | $2193.1 |  | $2272.2 |  |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Weighted average interest rate for the three months ended March 31, 2026 and March 31, 2025

<sup>(2)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Weighted average interest rate for the year ended December 31, 2025

<sup>(3)</sup> &nbsp;&nbsp;&nbsp;&nbsp;On January 7, 2025, NW Holdings acquired SiEnergy. SiEnergy's subsidiary, Si Investment Co., had this existing term loan outstanding at the date of acquisition. In August 2025, the associated facilities were terminated and are no longer available for financing.

NW Natural's first mortgage bonds (FMBs) have maturity dates ranging from 2026 through 2055 and interest rates ranging from 2.82% to 7.85%. SiEnergy's secured senior notes have maturity dates ranging from 2030 through 2055 and interest rates ranging from 4.86% to 6.04%. NW Holdings' unsecured senior bonds have maturity dates ranging from 2028 through 2034 and interest rates ranging from 5.52% to 5.86%. NW Holdings' Junior Subordinated Debentures has an interest rate of 7.0% and a maturity date of 2055. At March 31, 2026, NW Holdings and NW Natural had long-term debt outstanding of $2,433.1 million and $1,535.1 million, respectively, which included $15.5 million and $9.6 million of unamortized debt issuance costs at NW Holdings and NW Natural, respectively. Debt of $160.7 million is scheduled to mature in the next twelve months, which consists of $55.0 million at NW Natural, $55.7 million at NWN Water, and $50.0 million at NW Holdings.

**<u>Summary of Significant Debt Issuances</u>**

There were no new debt issuances in in the first quarter of 2026 at either NW Natural or NW Holdings.

**<u>Summary of Significant Debt Extinguishments and Repayments</u>**

There were no significant debt retirements in the first quarter of 2026 at either NW Natural or NW Holdings.

**<u>Fair Value of Long-Term Debt</u>**

NW Holdings' and NW Natural's outstanding debt does not trade in active markets. The fair value of debt is estimated using the value of outstanding debt at natural gas distribution companies with similar credit ratings, terms, and remaining maturities to NW Holdings' and NW Natural's debt that actively trade in public markets. These valuations are based on Level 2 inputs as defined in the fair value hierarchy. See Note 2 in the 2025 Form 10-K for a description of the fair value hierarchy.

------

The following table provides an estimate of the fair value of long-term debt, including current maturities of long-term debt, using market prices in effect on the valuation date:

---

| | | | |
|:---|:---|:---|:---|
| | March 31, | March 31, | December 31, |
| *In millions* | 2026 | 2025 | 2025 |
| **NW Holdings:** |  |  |  |
| Gross long-term debt | $2448.6 | $2244.3 | $2448.7 |
| Unamortized debt issuance costs | (15.5) | (14.4) | (15.9) |
| Carrying amount | $2433.1 | $2229.9 | $2432.8 |
| Estimated fair value<sup>(1)</sup> | $2281.4 | $2069.8 | $2317.1 |
| **NW Natural:** |  |  |  |
| Gross long-term debt | $1544.7 | $1374.7 | $1544.7 |
| Unamortized debt issuance costs | (9.6) | (9.1) | (9.8) |
| Carrying amount | $1535.1 | $1365.6 | $1534.9 |
| Estimated fair value<sup>(1)</sup> | $1360.8 | $1198.7 | $1383.1 |

---

<sup>(1)</sup> Estimated fair value does not include unamortized debt issuance costs.

***10. PENSION AND OTHER POSTRETIREMENT BENEFIT COSTS*** 

NW Natural maintains a qualified non-contributory defined benefit pension plan (Pension Plan), non-qualified supplemental pension plans for eligible executive officers and other key employees, and other postretirement employee benefit plans. NW Natural also has a qualified defined contribution plan (Retirement K Savings Plan) for all eligible employees. The Pension Plan and Retirement K Savings Plan have plan assets, which are held in qualified trusts to fund retirement benefits.

The service cost component of net periodic benefit cost for NW Natural pension and other postretirement benefit plans is recognized in operations and maintenance expense in the consolidated statements of comprehensive income. The other non-service cost components are recognized in other income (expense), net in the consolidated statements of comprehensive income.

The following table provides the components of net periodic benefit cost (credit) for the pension and other postretirement benefit plans:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, |
| | Pension Benefits | Pension Benefits | Other <br>Postretirement Benefits | Other <br>Postretirement Benefits |
| *In thousands* | 2026 | 2025 | 2026 | 2025 |
| Service cost | $855 | $885 | $26 | $27 |
| Interest cost | 5167 | 5410 | 282 | 288 |
| Expected return on plan assets | (5591) | (5433) |  |  |
| Amortization of net actuarial loss | 2295 | 2444 | 63 | 20 |
| &nbsp;&nbsp;&nbsp;Net periodic benefit cost | 2726 | 3306 | 371 | 335 |
| Amount allocated to construction | (405) | (434) | (11) | (11) |
| &nbsp;&nbsp;&nbsp;Net periodic benefit cost charged to expense | 2321 | 2872 | 360 | 324 |
| Amortization of regulatory balancing account | 2801 | 2801 |  |  |
| &nbsp;&nbsp;&nbsp;Net amount charged to expense | $5122 | $5673 | $360 | $324 |

---

Net periodic benefit costs are reduced by amounts capitalized to NW Natural plant. In addition, net periodic benefit costs were recorded to a regulatory balancing account as approved by the OPUC and amortized accordingly.

------

The following table presents amounts recognized in accumulated other comprehensive loss (AOCL) and the changes in AOCL related to non-qualified employee benefit plans:

---

| | | |
|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, |
| *In thousands* | 2026 | 2025 |
| Beginning balance | $(4705) | $(7052) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts reclassified from AOCL: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of actuarial losses | 124 | 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total reclassifications before tax | 124 | 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax benefit | (33) | (25) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total reclassifications for the period | 91 | 175 |
| Ending balance | $(4614) | $(6877) |

---

**<u>Employer Contributions to Company-Sponsored Defined Benefit Pension Plans</u>**

NW Natural made $2.9 million of cash contributions to its qualified defined benefit pension plans during the three months ended March 31, 2026 and $2.6 million cash contributions during the three months ended March 31, 2025.

**<u>Defined Contribution Plan</u>**

NW Natural's Retirement K Savings Plan is a qualified defined contribution plan under Internal Revenue Code Sections 401(a) and 401(k). NW Natural contributions totaled $4.3 million and $4.0 million for the three months ended March 31, 2026 and 2025, respectively.

See Note 10 in the 2025 Form 10-K for more information concerning these retirement and other postretirement benefit plans.

***11. INCOME TAX*** 

An estimate of annual income tax expense is made each interim period using estimates for annual pre-tax income, regulatory flow-through adjustments, tax credits, and other items. The estimated annual effective tax rate is applied to year-to-date, pre-tax income to determine income tax expense for the interim period consistent with the annual estimate. Discrete events are recorded in the interim period in which they occur or become known.

The effective income tax rate varied from the federal statutory rate due to the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, |
| | NW Holdings | NW Holdings | NW Natural | NW Natural |
| *In thousands* | 2026 | 2025 | 2026 | 2025 |
| Income tax at statutory rate (federal) | $27306 | $25713 | $26440 | $26608 |
| State income tax | 8830 | 9980 | 9247 | 10202 |
| Increase (decrease): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Differences required to be flowed-through by regulatory commissions | (1954) | (1668) | (1954) | (1668) |
| &nbsp;&nbsp;&nbsp;Other, net | (1643) | 502 | (1578) | 522 |
| Total provision for income taxes | $32539 | $34527 | $32155 | $35664 |
| Effective income tax rate | 25.0% | 28.2% | 25.5% | 28.1% |

---

The NW Holdings effective income tax rate for the three months ended March 31, 2026 compared to the same period in 2025, decreased due to lower state income tax rates in the SiEnergy and NW Natural Water segments. In addition, both NW Holdings and NW Natural effective tax rates benefited from lower non-deductible executive compensation expense and higher AFUDC equity income. For further detail on income taxes and effective tax rates, refer to Note 11 in the 2025 Form 10-K.

The IRS Compliance Assurance Process (CAP) examination of the 2024 tax year was ongoing during the first quarter of 2026. The 2025 and 2026 tax years are subject to examination under CAP.

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***12. PROPERTY, PLANT, AND EQUIPMENT***

The following table sets forth the major classifications of property, plant, and equipment and accumulated depreciation:

---

| | | | |
|:---|:---|:---|:---|
| | March 31, | March 31, | December 31, |
| *In thousands* | 2026 | 2025 | 2025 |
| **NW Holdings:** |  |  |  |
| Plant in service | $5509029 | $5091181 | $5468170 |
| Construction work in progress | 213327 | 176882 | 172265 |
| Less: Accumulated depreciation | 1300897 | 1266222 | 1288422 |
| Total property, plant, and equipment, net | $4421459 | $4001841 | $4352013 |
| Capital expenditures in accrued liabilities | $51572 | $32042 | $57762 |
| **NW Natural:** |  |  |  |
| Plant in service | $4891650 | $4634047 | $4879816 |
| Construction work in progress | 155212 | 146433 | 120513 |
| Less: Accumulated depreciation | 1257950 | 1237907 | 1256289 |
| Total property, plant, and equipment, net | $3788912 | $3542573 | $3744040 |
| Capital expenditures in accrued liabilities | $34917 | $23457 | $33582 |

---

***13. INVESTMENTS*** 

Investments include gas reserves, financial investments in life insurance policies, and equity method investments. The following table summarizes other investments:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | NW Holdings | NW Holdings | NW Holdings | NW Natural | NW Natural | NW Natural |
| | March 31, | March 31, | December 31, | March 31, | March 31, | December 31, |
| *In thousands* | 2026 | 2025 | 2025 | 2026 | 2025 | 2025 |
| Investments in life insurance policies | $34032 | $45936 | $45606 | $34032 | $45936 | $45606 |
| Investments in gas reserves, non-current | 14789 | 17500 | 15443 | 14789 | 17500 | 15443 |
| Investment in unconsolidated affiliates | 20620 | 19227 | 19627 |  |  |  |
| &nbsp;&nbsp;&nbsp;Total other investments | $69441 | $82663 | $80676 | $48821 | $63436 | $61049 |

---

**<u>Investment in Life Insurance Policies</u>**

Other investments include financial investments in life insurance policies, which are accounted for at cash surrender value, net of policy loans. See Note 13 in the 2025 Form 10-K.

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**<u>NW Natural Gas Reserves</u>**

NW Natural has invested $188 million through the gas reserves program in the Jonah Field located in Wyoming as of March 31, 2026. Gas reserves are stated at cost, net of regulatory amortization, with the associated deferred tax benefits of $1.5 million, $2.6 million, and $1.8 million, which are recorded as liabilities in the March 31, 2026, March 31, 2025, and December 31, 2025 consolidated balance sheets, respectively. NW Natural's investment is included in NW Holdings' and NW Natural's consolidated balance sheets under other current assets and other investments (non-current portion) with the maximum loss exposure limited to the investment balance. The amount of gas reserves included in other current assets was $2.6 million, $2.7 million, and $2.6 million as of March 31, 2026, March 31, 2025, and December 31, 2025, respectively. See Note 13 in the 2025 Form 10-K.

**<u>Investments in Unconsolidated Affiliates</u>**

In December 2021, NWN Water purchased a 37.3% ownership stake in Avion Water Company, Inc. (Avion Water), an investor-owned water utility for $14.5 million. NWN Water subsequently increased its ownership stake in Avion Water as follows:

---

| | | |
|:---|:---|:---|
| *In millions* | Amount | Ownership % |
| July 2022 | $1.0 | 40.3% |
| June 2023 | $1.0 | 43.1% |
| January 2024 | $1.0 | 45.6% |
| February 2025 | $1.0 | 47.9% |
| January 2026 | $1.0 | 50.0% |

---

Avion Water operates in Bend, Oregon and the surrounding communities, serving approximately 17,000 connections and employing 40 people. The carrying value of the equity method investment is $10.1 million higher than the underlying equity in the net assets of the investee at March 31, 2026 due to equity method goodwill. NWN Water's share in the earnings of Avion Water is included in other income (expense), net.

***14. BUSINESS COMBINATIONS*** 

**<u>2025 Business Combinations</u>**

***SiEnergy Acquisition***

On January 7, 2025, NW Holdings acquired 100% of the outstanding membership interests of SiEnergy Operating, LLC from SiEnergy Capital Partners, LLC, an affiliate of Ridgewood Infrastructure. Total consideration included $271.1 million in cash and the assumption of $156.1 million of outstanding debt. SiEnergy is a regulated natural gas distribution utility and a transmission utility. Excluding Pines Holdings, which was acquired June 2, 2025 and is described further below, SiEnergy serves approximately 85,000 customers in the greater metropolitan areas of Houston, Dallas, and Austin, Texas.

The SiEnergy acquisition met the criteria of a business combination, and as such an allocation of the consideration to the acquired net assets based on their estimated fair value as of the acquisition date was performed. In accordance with U.S. GAAP, the fair value determination involved management judgment in determining the significant estimates and assumptions used for net assets associated with SiEnergy. This allocation was finalized in the quarter ended March 31, 2026. Acquisition costs totaling $5.3 million in the first quarter of 2025 were expensed as incurred. Acquisition costs related to SiEnergy are included in operations and maintenance expenses in the consolidated statements of comprehensive income. The transaction aligns with NW Holdings' growth strategy and further expands the service territory in Texas.

Goodwill of $171.1 million was recognized from this acquisition. The goodwill recognized is attributable to SiEnergy's natural gas utility service territory, experienced workforce, and the strategic benefits expected from growth in its service territory. No intangible assets aside from goodwill were recognized. The amount of goodwill that is expected to be deductible for income tax purposes is $179.9 million.

The following table summarizes the consideration transferred and the amounts of identified assets acquired and liabilities assumed as the acquisition date:

------

---

| | |
|:---|:---|
| *In thousands* |  |
| &nbsp;&nbsp;**Fair value of consideration transferred:** |  |
| &nbsp;&nbsp;Cash | $271087 |
| &nbsp;&nbsp;**Recognized amounts of identifiable assets acquired and liabilities assumed:** |  |
| &nbsp;&nbsp;Current assets | $16770 |
| &nbsp;&nbsp;Property, plant and equipment | 262697 |
| &nbsp;&nbsp;Non-current assets | 3872 |
| &nbsp;&nbsp;Current liabilities | (24962) |
| &nbsp;&nbsp;Non-current liabilities | (158397) |
| &nbsp;&nbsp;**Total identifiable net assets** | $99980 |
| &nbsp;&nbsp;**Goodwill** | $171107 |

---

***Hughes Gas Resources, Inc. (Pines Holdings, Inc.) Acquisition***

On June 2, 2025, a subsidiary of SiEnergy Operating, LLC (SiEnergy), a wholly owned subsidiary of NW Holdings, acquired 100% of the outstanding equity interests of Hughes Gas Resources, Inc. from EPCOR USA Inc. for total consideration of $60.4 million in cash. Hughes serves approximately 8,000 customers in 12 communities northeast of Houston, Texas. Hughes further expands SiEnergy's regulated gas utility business in the southern United States. Following the closing of the acquisition, Hughes was rebranded as Pines Holdings, Inc. (Pines).

The Pines acquisition met the criteria of a business combination, and as such, a preliminary allocation of the consideration to the acquired net assets based on their estimated fair value as of the acquisition date was performed. In accordance with U.S. GAAP, the fair value determination involves management judgment in determining the significant estimates and assumptions used for net assets associated with Pines. This allocation is considered preliminary as of March 31, 2026, as facts and circumstances that existed as of the acquisition date may be discovered as we continue to integrate Pines. As a result, subsequent adjustments to the preliminary valuation of tangible assets, regulatory assets and liabilities including asset removal costs, contract assets and liabilities, tax positions, and goodwill may be required. Any such adjustments are to be completed within the one-year measurement period.

Preliminary goodwill of $15.1 million was recognized from this acquisition. The goodwill recognized is attributable to Pines' natural gas utility service territory, experienced workforce, and the strategic benefits expected from growth in the service territory. No intangible assets aside from goodwill were recognized. There is no goodwill expected to be deductible for tax purposes.

The following table summarizes the consideration transferred and the amounts of identified assets acquired and liabilities assumed as of the acquisition date:

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| | |
|:---|:---|
| *In thousands* |  |
| &nbsp;&nbsp;**Fair value of consideration transferred:** |  |
| &nbsp;&nbsp;Cash | $60436 |
| &nbsp;&nbsp;**Recognized amounts of identifiable assets acquired and liabilities assumed:** |  |
| &nbsp;&nbsp;Current assets | $2032 |
| &nbsp;&nbsp;Property, plant and equipment | 43497 |
| &nbsp;&nbsp;Non-current assets | 1382 |
| &nbsp;&nbsp;Current liabilities | (1462) |
| &nbsp;&nbsp;Non-current liabilities | (105) |
| &nbsp;&nbsp;**Total identifiable net assets** | $45344 |
| &nbsp;&nbsp;**Goodwill** | $15092 |

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The table below presents the unaudited pro forma revenues and earnings of NW Holdings as if the SiEnergy and Pines acquisitions had occurred as of January 1, 2025:

---

| | | |
|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, |
| *In thousands* | 2026 | 2025 |
| Operating revenues | $490403 | $500064 |
| Net income | $97489 | $91671 |

---

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The unaudited pro forma results presented above are for informational purposes only and are not necessarily indicative of the results that would have been achieved had the acquisition been completed on January 1, 2025, nor are they indicative of future results of operations of the combined company. Pro forma net income for the three months ended March 31, 2025 were adjusted to reflect the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acquisition costs of $5.3 million incurred by NW Holdings' in the first quarter of 2025 were removed from the three months ended March 31, 2025 pro forma net income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the capital structure for NW Holdings was modified to reflect the Junior Subordinated Debentures issued in March 2025 to represent the ongoing capital structure and reflects the issuance to have occurred on January first of 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the results of SiEnergy and Pines were adjusted to represent results as though they were owned as of January first of 2025; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all adjustments were net tax effected using a statutory tax rate of 26.5%

The amount of SiEnergy and Pines revenues included in NW Holdings' consolidated statements of comprehensive income was $31.7 million and $22.7 million for the three months ended March 31, 2026 and 2025, respectively.

The amount of SiEnergy and Pines net income included in NW Holdings' consolidated statements of comprehensive income was $9.1 million and $5.5 million for the three months ended March 31, 2026 and 2025, respectively.

<u>Other 2025 Business Combinations</u>

During the fourth quarter of 2025, NW Water and its subsidiaries acquired the assets of Inline Utilities, LLC ("Inline") located in Texas, qualifying as a business combination. The fair value of the consideration transferred for this acquisition was $7.2 million, most of which was allocated to property, plant and equipment. As of March 31, 2026, preliminary goodwill of $1.0 million was recognized from this acquisition, including adjustments associated with deferred income taxes. The amount of goodwill that is expected to be deductible for income tax purposes is $4.3 million.

During the first quarter of 2025, NWN Water and its subsidiaries acquired the assets of two businesses qualifying as business combinations. The aggregate fair value of the consideration transferred for these acquisitions was $1.6 million, most of which was allocated to property, plant and equipment. These transactions align with NW Holdings' water and wastewater sector strategy as it continues to expand its water and wastewater service territories and included:

• Everett Square, Inc. in Texas

• ES Water Utility Consolidators, Inc. in Texas

**<u>Goodwill</u>**

NW Holdings allocates goodwill to reporting units based on the expected benefit from the business combination. We perform an annual impairment assessment of goodwill at the reporting unit level, or more frequently if events and circumstances indicate that goodwill might be impaired. An impairment loss is recognized if the carrying value of a reporting unit's goodwill exceeds its fair value.

As a result of all acquisitions completed, goodwill totaled $371.3 million, $354.5 million, and $370.8 million as of March 31, 2026, March 31, 2025, and December 31, 2025, respectively, and is attributable to gas utility, water and wastewater acquisitions. Goodwill included in the SiEnergy segment category totaled $186.2 million, $171.0 million, and $185.7 million as of March 31, 2026, March 31, 2025, and December 31, 2025, respectively. Goodwill included in the NWN Water segment category totaled $185.1 million, $183.5 million, and $185.1 million as of March 31, 2026, March 31, 2025, and December 31, 2025, respectively. The annual impairment assessment of goodwill occurs in the fourth quarter of each year. There have been no impairments recognized during the three months ended March 31, 2026.

***15. DERIVATIVE INSTRUMENTS*** 

<u>NW Natural</u>

NW Natural enters into financial derivative contracts primarily to hedge a portion of the NW Natural segment's natural gas sales requirements. These contracts include swaps and forward contracts. These derivative financial instruments are primarily used to manage the price variability of natural gas, interest rates, and foreign currency. A small portion of NW Natural's derivative hedging strategy involves hedging interest rates and foreign currency forward contracts.

NW Natural enters into these financial derivatives, up to prescribed limits, primarily to hedge price variability related to term physical gas supply contracts, and variable rate debt and for pipeline demand charges paid in Canadian dollars.

In the normal course of business, NW Natural also enters into indexed-price physical forward natural gas commodity purchase contracts and options to meet the requirements of NW Natural customers. These contracts qualify for regulatory deferral accounting treatment.

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**<u>Notional Amounts</u>**

The following table presents the absolute notional amounts related to open positions on NW Natural derivative instruments:

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| | | | |
|:---|:---|:---|:---|
| | March 31, | March 31, | December 31, |
| *In thousands* | 2026 | 2025 | 2025 |
| Natural gas (in therms): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial | 544690 | 611200 | 757895 |
| &nbsp;&nbsp;&nbsp;&nbsp;Physical | 487775 | 401750 | 692275 |
| Foreign exchange (in dollars) | $5853 | $10132 | $8596 |

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**<u>Purchased Gas Adjustment (PGA)</u>**

Rates and hedging approaches vary between states due to different rate structures and hedging mechanisms. Under the PGA mechanism in Oregon, derivatives entered into by NW Natural for the procurement or hedging of natural gas for future gas years generally receive regulatory deferral accounting treatment. In general, commodity hedging for the current gas year is completed prior to the start of the gas year, and hedge prices are fully recovered and reflected in the weighted-average cost of gas in the PGA filing. Hedge contracts entered into after the start of the PGA period for the current PGA year are subject to the PGA incentive sharing mechanism in Oregon. Under the PGA mechanism in Washington, NW Natural incorporates a risk-responsive hedging strategy, and receives regulatory deferral accounting treatment for Washington gas hedges.

NW Natural entered the 2025-26 gas year with forecasted sales volume hedged at approximately 79% in total, including 64% in financial hedges and 15% in physical gas supplies. The total hedged for Oregon was approximately 84%, including 69% in financial hedges and 15% in physical gas supplies. The total hedged for Washington was approximately 33%, including 20% in financial hedges and 13% in physical gas supplies.

**<u>Unrealized and Realized Gain/Loss</u>**

The following table reflects the income statement presentation for the unrealized gains and losses from NW Natural's derivative instruments:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, |
| | 2026 | 2026 | 2025 | 2025 |
| *In thousands* | Natural gas commodity | Foreign exchange | Natural gas commodity | Foreign exchange |
| Benefit (expense) to cost of gas | $(15029) | $(114) | $29697 | $(24) |
| Amounts deferred to regulatory accounts on balance sheet | 15029 | 114 | (29697) | 24 |
| &nbsp;&nbsp;&nbsp;Total gain (loss) in pre-tax earnings | $— | $— | $— | $— |

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<u>Unrealized Gain/Loss</u>

Outstanding derivative instruments related to regulated NW Natural operations are deferred in accordance with regulatory accounting standards. The cost of foreign currency forward and natural gas derivative contracts are recognized immediately in the cost of gas; however, costs above or below the amount embedded in the current year PGA are subject to a regulatory deferral tariff and therefore, are recorded as a regulatory asset or liability.

<u>Realized Gain/Loss</u>

NW Natural realized net losses of $41.5 million and net losses of $46.2 million for the three months ended March 31, 2026 and 2025, respectively, from the settlement of natural gas financial derivative contracts. Realized gains and losses offset the higher or lower cost of gas purchased, resulting in no incremental amounts to collect or refund to customers.

**<u>Credit Risk Management of Financial Derivatives Instruments</u>**

No collateral was posted with or by NW Natural counterparties as of March 31, 2026 or 2025. NW Natural attempts to minimize the potential exposure to collateral calls by diversifying counterparties and using credit limits to manage liquidity risk. Counterparties generally allow a certain credit limit threshold based on our credit rating before requiring NW Natural to post collateral against unrealized loss positions. Given NW Natural's credit ratings, counterparty credit limits and portfolio diversification, it was not subject to collateral calls in 2026 or 2025. The collateral call exposure is set forth under credit support agreements, which generally contain credit limits. NW Natural could also be subject to collateral call exposure where it has agreed to provide adequate assurance, which is not specific as to the amount of credit limit allowed but could potentially require additional collateral posting by NW Natural in the event of a material adverse change in NW Natural's ability to perform.

NW Natural's financial derivative instruments are subject to master netting arrangements; however, they are presented on a gross basis in the consolidated balance sheets. NW Natural and its counterparties have the ability to set-off obligations to each other under specified circumstances. Such circumstances may include a defaulting party, a credit change due to a merger affecting either party, or any other termination event.

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If netted by its counterparties, NW Natural's physical and financial derivative position would result in an asset of $2.6 million and a liability of $58.8 million as of March 31, 2026, an asset of $2.6 million and a liability of $31.7 million as of March 31, 2025, and an asset of $2.8 million and a liability of $76.1 million as of December 31, 2025.

NW Natural is exposed to derivative credit and liquidity risk primarily through securing fixed-price natural gas commodity swaps and interest rate swaps with financial counterparties. NW Natural utilizes master netting arrangements with International Swaps and Derivatives Association (ISDA) contracts to minimize these risks including ISDA Credit Support Agreements with counterparties based on their credit ratings. Additionally, NW Natural uses counterparty, industry, sector and country diversification to minimize credit risk. In certain cases, NW Natural may require counterparties to post collateral, guarantees, or letters of credit to maintain its minimum credit requirement standards or for liquidity management purposes. See Note 15 in the 2025 Form 10-K for additional information.

**<u>Fair Value</u>**

In accordance with fair value accounting, NW Natural includes non-performance risk in calculating fair value adjustments. This includes a credit risk adjustment based on the credit spreads of NW Natural counterparties when in an unrealized gain position, or on NW Natural's own credit spread when it is in an unrealized loss position. The inputs in our valuation models include natural gas futures, volatility, credit default swap spreads and interest rates. Additionally, the assessment of non-performance risk is generally derived from the credit default swap market and from bond market credit spreads. The impact of the credit risk adjustment for all financial derivatives outstanding to the fair value calculation was $0.2 million, which decreased the liability at March 31, 2026. The net fair value was a liability of $56.2 million, a liability of $29.1 million, and a liability of $73.3 million as of March 31, 2026 and 2025, and December 31, 2025, respectively. No Level 3 inputs were used in our derivative valuations during the three months ended March 31, 2026, and 2025. See Note 2 in the 2025 Form 10-K.

**<u>NWN Water Interest Rate Swap Agreement</u>**

In January 2023, NWN Water entered into an interest rate swap agreement with a major financial institution for $55.0 million that effectively converted variable-rate debt to a fixed rate of 3.8%. Interest payments made between the effective date and expiration date are hedged by the swap agreement. The interest rate swap agreement will expire in June 2026, along with the variable-rate debt.

Unrealized gains (losses) related to the interest rate swap agreement are recorded in AOCI on the consolidated balance sheet and were immaterial as of March 31, 2026, March 31, 2025, and December 31, 2025. Realized gains or losses occur as a result of monthly swap settlements. Gains of $0.1 million were reclassified from AOCI to net income during the three months ended March 31, 2025 and were immaterial during the three months ended March 31, 2026. The estimated amount of gains recorded in AOCI as of March 31, 2026 that are expected to be reclassified to net income within the next twelve months is immaterial.

***16. COMMITMENTS AND CONTINGENCIES***

NWN Renewables is an unregulated subsidiary of NW Holdings established to pursue investments in RNG activities. NWN Renewables, through its subsidiary Ohio Renewables, executed agreements with a subsidiary of EDL, a global producer of sustainable distributed energy, to secure RNG supply from two production facilities that are designed to convert landfill waste gases to RNG. This arrangement consists of a development agreement, an exclusive use agreement, a purchase agreement, and various guarantees.

Under the development agreement, the EDL subsidiary is responsible for the development and construction of the facilities. The first facility was completed and commenced delivery of RNG to Ohio Renewables in September 2024. Upon reaching this milestone, Ohio Renewables paid $26.0 million to the EDL subsidiary. The second facility was completed and commenced delivery of RNG to Ohio Renewables in December 2024 at which point Ohio Renewables made an additional payment of $25.4 million to the EDL subsidiary. The payments were recorded as long-term prepaid assets and will be amortized based on the volumes delivered over the life of the agreement.

**<u>NWN Renewables</u> <u>Purchase Agreements</u>**

Under the purchase agreement, Ohio Renewables and the subsidiary of EDL executed agreements for Ohio Renewables to purchase up to an annual specified amount of RNG produced by the EDL facilities over a 20-year period at a contractually specified price. In December 2025, Ohio Renewables entered into an agreement to purchase up to an annual specified amount of RNG produced by the EDL facilities from a separate investment-grade counterparty over an 11-year period at a contractually specified price. Purchase volumes are variable based on production, and purchases may not exceed contracted amounts. We currently estimate the amount of RNG purchases from both facilities based on prices and quantities specified in the agreements to be as follows: approximately $31.4 million in 2027, $31.6 million in 2028, $30.8 million in 2029, $31.4 million in 2030 and $599.3 million thereafter. For the three months ended March 31, 2026, purchases totaled $4.1 million, for total expected purchases of $20.9 million in 2026.

NW Holdings entered into a guarantee on behalf of Ohio Renewables with EDL. Per the guarantee, NW Holdings unconditionally and irrevocably guarantees the timely payment and performance when due of all obligations of Ohio Renewables. NW Holdings has not recognized a liability for its obligations under the guarantee in accordance with ASC 460, *Guarantees*.

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**<u>NWN Renewables</u> <u>Sale Agreements</u>**

<u>2024 - 2026</u>

Ohio Renewables has contracted to sell RNG produced by the EDL facilities up to certain specified volumes beginning in 2024 through 2026 to an investment-grade counterparty. Upon each delivery of RNG, Ohio Renewables will purchase an equal quantity of natural gas without renewable attributes at the same delivery point. Ohio Renewables has separately contracted to sell the natural gas purchased from EDL to another counterparty also at the same delivery point upon receipt. Alongside these agreements, NW Holdings entered into a guarantee on behalf of Ohio Renewables. Per the guarantee, NW Holdings unconditionally and irrevocably guarantees the prompt payment of all present and future obligations of Ohio Renewables. NW Holdings has not recognized a liability for its obligations under the guarantee in accordance with ASC 460, *Guarantees*.

The guarantee specifies annual cap amounts on the aggregate liability covered by the Guarantee as follows:

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| | |
|:---|:---|
| *In thousands* | 2026 |
| Cap Amount | $21113 |

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<u>2025 - 2044</u>

Ohio Renewables additionally has contracted to sell a fixed-volume amount of RNG under a long-term agreement with an investment-grade utility beginning in 2025 and extending through 2044. Under the current contract, if less than 75% of the contracted volumes of RNG are not delivered on an annual basis, Ohio Renewables is obligated to pay the per MMbtu price for volumes between the amount delivered and 75% of the contracted volumes on an annual basis. NW Holdings entered into a guarantee on behalf of Ohio Renewables. Per the guarantee, NW Holdings unconditionally and irrevocably guarantees the prompt payment of all present and future obligations of Ohio Renewables. The total liability under this guarantee cannot exceed $2.0 million. NW Holdings has not recognized a liability for its obligations under the guarantee in accordance with ASC 460, *Guarantees*.

***17. ENVIRONMENTAL MATTERS*** 

NW Natural owns, or previously owned, properties that may require environmental remediation or action. The range of loss for environmental liabilities is estimated based on current remediation technology, enacted laws and regulations, industry experience gained at similar sites, and an assessment of the probable level of involvement and financial condition of other potentially responsible parties (PRPs). When amounts are prudently expended related to site remediation of those sites described herein, NW Natural has recovery mechanisms in place to collect 96.7% of remediation costs allocable to Oregon customers and 3.3% of costs allocable to Washington customers.

These sites are subject to the remediation process prescribed by the Environmental Protection Agency (EPA) and the Oregon Department of Environmental Quality (ODEQ). The process begins with a remedial investigation (RI) to determine the nature and extent of contamination and then a risk assessment (RA) to establish whether the contamination at the site poses unacceptable risks to humans and the environment. Next, a feasibility study (FS) or an engineering evaluation/cost analysis (EE/CA) evaluates various remedial alternatives. It is at this point in the process when NW Natural is able to estimate a range of remediation costs and record a reasonable potential remediation liability, or make an adjustment to the existing liability. From this study, the regulatory agency selects a remedy and issues a Record of Decision (ROD). After a ROD is issued, NW Natural would seek to negotiate a consent decree or consent judgment for designing and implementing the remedy. NW Natural would have the ability to further refine estimates of remediation liabilities based upon an approved remedial design.

Remediation may include treatment of contaminated media such as sediment, soil and groundwater, removal and disposal of media, institutional controls such as legal restrictions on future property use, or natural recovery. Following construction of the remedy, the EPA and ODEQ also have requirements for ongoing maintenance, monitoring and other post-remediation care that may continue for many years. Where appropriate and reasonably known, NW Natural will provide for these costs in the remediation liabilities described below.

Due to the numerous uncertainties surrounding the course of environmental remediation and the preliminary nature of several site investigations, in some cases, NW Natural may not be able to reasonably estimate the high end of the range of possible loss. In those cases, the nature of the possible loss has been disclosed, as has the fact that the high end of the range cannot be reasonably estimated where a range of potential loss is available. Unless there is an estimate within the range of possible losses that is more likely than other cost estimates within that range, NW Natural records the liability at the low end of this range. It is likely changes in these estimates and ranges will occur throughout the remediation process for each of these sites due to the continued evaluation and clarification concerning responsibility, the complexity of environmental laws and regulations and the determination by regulators of remediation alternatives. In addition to remediation costs, NW Natural could also be subject to Natural Resource Damages (NRD) claims. NW Natural will assess the likelihood and probability of each claim and recognize a liability if deemed appropriate. Refer to "Other Portland Harbor" below.

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**<u>Environmental Sites</u>**

The following table summarizes information regarding liabilities related to environmental sites, which are recorded in other current liabilities and other noncurrent liabilities in NW Natural's balance sheet:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Current Liabilities | Current Liabilities | Current Liabilities | Non-Current Liabilities | Non-Current Liabilities | Non-Current Liabilities |
| | March 31, | March 31, | December 31, | March 31, | March 31, | December 31, |
| *In thousands* | 2026 | 2025 | 2025 | 2026 | 2025 | 2025 |
| Portland Harbor site: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gasco Sediments | $11510 | $10816 | $13950 | $42755 | $41565 | $43247 |
| &nbsp;&nbsp;&nbsp;Other Portland Harbor | 3189 | 3109 | 3669 | 12132 | 11657 | 12770 |
| Gasco Upland site | 22089 | 20767 | 25643 | 275514 | 63594 | 61782 |
| Front Street site | 455 | 760 | 486 | 290 | 278 | 292 |
| Oregon Steel Mills |  |  |  | 179 | 179 | 179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $37243 | $35452 | $43748 | $330870 | $117273 | $118270 |

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<u>Portland Harbor Site</u>

The Portland Harbor is an EPA listed Superfund site that is approximately 10 miles long on the Willamette River and is adjacent to NW Natural's Gasco uplands site. NW Natural is one of over one hundred PRPs, each jointly and severally liable, at the Superfund site. In January 2017, the EPA issued its Record of Decision, which selects the remedy for the clean-up of the Portland Harbor site (Portland Harbor ROD). The Portland Harbor ROD estimates the present value total cost at approximately $1.05 billion with an accuracy between -30% and +50% of actual costs.

NW Natural's potential liability is a portion of the costs of the remedy for the entire Portland Harbor Superfund site. The cost of that remedy is expected to be allocated among more than one hundred PRPs. NW Natural is participating in a non-binding allocation process with other PRPs in an effort to resolve its potential liability. The Portland Harbor ROD does not provide any additional clarification around allocation of costs among PRPs; accordingly, NW Natural has not modified any of the recorded liabilities at this time as a result of the issuance of the Portland Harbor ROD.

NW Natural manages its liability related to the Superfund site as two distinct projects: the Gasco Sediments Site and Other Portland Harbor projects.

**GASCO SEDIMENTS.** In 2009, NW Natural and Siltronic Corporation entered into a separate Administrative Order on Consent with the EPA to evaluate and design specific remedies for sediments adjacent to the Gasco uplands and Siltronic uplands sites. NW Natural submitted a draft EE/CA to the EPA in May 2012 and the EE/CA estimated the cost of potential remedial alternatives for this site. NW Natural is completing pre-design studies and has submitted a Preliminary Design Report, which the EPA approved in December 2024. These preliminary design steps do not include a cost estimate for cleanup. No remedial design for the Gasco Sediments Site is more likely than the EE/CA alternatives at this time, and NW Natural expects further design discussion and iteration with the EPA.

In March 2020, NW Natural and the EPA amended the Administrative Order on Consent to include additional remedial design activities downstream of the Gasco Sediments Site at the US Moorings and Navigation Channel remedial design project areas. Siltronic Corporation is not a party to the amended order. NW Natural has submitted Basis of Design Reports for the Navigation Channel and US Moorings remedial design project areas to the EPA.

The estimated costs for the various sediment remedy alternatives in the draft EE/CA, for the additional studies and design work needed before the cleanup can occur, and for regulatory oversight throughout the cleanup range from approximately $54 million to $350 million. NW Natural has recorded a liability of $54 million for the Gasco sediment clean-up, which reflects the low end of the range. At this time, we believe sediments at the Gasco sediments site represent the largest portion of NW Natural's liability related to the Portland Harbor site discussed above.

**OTHER PORTLAND HARBOR.** While we believe liabilities associated with the Gasco sediments site represent NW Natural's largest exposure, there are other potential exposures associated with the Portland Harbor ROD, including NRD costs and harborwide remedial design and cleanup costs (including downstream petroleum contamination), for which allocations among the PRPs have not yet been determined.

NW Natural and other parties have signed a cooperative agreement with the Portland Harbor Natural Resource Trustee council to participate in a phased NRD assessment to estimate liabilities to support an early restoration-based settlement of NRD claims. One member of this Trustee council, the Yakama Nation, withdrew from the council in 2009, and in 2017, filed suit against NW Natural and 29 other parties seeking remedial costs and NRD assessment costs associated with the Portland Harbor site, set forth in the complaint. The complaint seeks recovery of alleged costs totaling $0.3 million in connection with the selection of a remedial action for the Portland Harbor site as well as declaratory judgment for unspecified future remedial action costs and for costs to assess the injury, loss or destruction of natural resources resulting from the release of hazardous substances at and from the Portland Harbor site. The Yakama Nation has filed two amended complaints addressing certain pleading defects and

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dismissing the State of Oregon. On the motion of NW Natural and certain other defendants, the federal court has stayed the case pending the outcome of the non-binding allocation proceeding discussed above. NW Natural has recorded a liability for NRD claims which is at the low end of the range of the potential liability; the high end of the range cannot be reasonably estimated at this time. The NRD liability is not included in the aforementioned range of costs provided in the Portland Harbor ROD.

<u>Gasco Uplands Site</u>

A predecessor of NW Natural, Portland Gas and Coke Company, owned a former gas manufacturing plant that was closed in 1958 (Gasco site) and is adjacent to the Portland Harbor site described above. The Gasco site has been under investigation by NW Natural for environmental contamination under the ODEQ Voluntary Cleanup Program (VCP). It is not included in the range of remedial costs for the Portland Harbor site noted above. The Gasco site is managed in two parts, the uplands portion (including the IRAM) and the groundwater source control action.

NW Natural submitted a revised Remedial Investigation Report for the uplands to ODEQ in May 2007. In March 2015, ODEQ approved the Risk Assessment (RA) for this site, enabling commencement of work on the FS in 2016.

In October 2016, ODEQ and NW Natural agreed to amend their VCP agreement for the Gasco uplands to incorporate a portion of the Siltronic property formerly owned by Portland Gas & Coke between 1939 and 1960 into the Gasco RA and FS. Previously, NW Natural was conducting an investigation of manufactured gas plant constituents on the entire Siltronic uplands for ODEQ. Siltronic will be working with ODEQ directly on environmental impacts to the remainder of its property.

In September 2013, NW Natural completed construction of a groundwater source control system, including a water treatment station, at the Gasco site. NW Natural has estimated the cost associated with the ongoing operation of the system and has recognized a liability which is at the low end of the range of potential cost. NW Natural cannot estimate the high end of the range at this time due to the uncertainty associated with the duration of running the water treatment station, which is highly dependent on the remedy determined for both the upland portion as well as the final remedy for the Gasco sediments site.

In December 2024, NW Natural submitted the Gasco uplands FS to ODEQ. The FS presents a set of remedial action alternatives and provides the basis for range of potential remedial costs for the site. In April 2026, NW Natural submitted a revised FS to ODEQ addressing comments it had received on the original FS submission. The revised FS included changes to the remediation alternatives as well as the addition of the estimated costs to operate and monitor the site for 30 years after remediation. The revised range of alternative remedies excluding the cost of the Interim Remedial Action Measure (IRAM) for the Gasco uplands site is an estimated range from $288 million to $950 million, which includes a range of undiscounted monitoring costs for a 30 year period that range from approximately $230 million to $250 million. NW Natural has recorded a liability of $288 million, which reflects the low end of the range. ODEQ is currently reviewing the revised submission.

Additionally, the EPA's Gasco sediments Administrative Order requires the integration of upland source controls with the sediment remedy. The selected sediment remedy, which is discussed above under "Gasco Sediments," is currently under separate design for the EPA. To comply with the source control integration requirement, some Gasco uplands work must be expedited. An Interim Removal Action Measure (IRAM) for the Gasco uplands is the regulatory mechanism ODEQ has selected to accomplish that goal. As a result, the Gasco uplands FS also includes a separate range of potential remedial costs for the IRAM. The alternative remedies for the IRAM range from $10 million to $78 million. NW Natural has recorded a liability of $10 million, which reflects the low end of the range.

<u>Other Sites</u>

In addition to those sites above, NW Natural has environmental exposures at three other sites: Central Service Center, Front Street and Oregon Steel Mills. NW Natural may have exposure at other sites that have not been identified at this time. Due to the uncertainty of the design of remediation, regulation, timing of the remediation and in the case of the Oregon Steel Mills site, pending litigation, liabilities for each of these sites have been recognized at their respective low end of the range of potential liability; the high end of the range could not be reasonably estimated at this time.

**FRONT STREET SITE.** The Front Street site was the former location of a gas manufacturing plant NW Natural operated (the former Portland Gas Manufacturing site, or PGM). At ODEQ's request, NW Natural conducted a sediment and source control investigation and provided findings to ODEQ. In December 2015, an FS on the former Portland Gas Manufacturing site was completed.

In July 2017, ODEQ issued the PGM ROD. The ROD specifies the selected remedy, which requires a combination of dredging, capping, treatment, and natural recovery. In addition, the selected remedy also requires institutional controls and long-term inspection and maintenance. Construction of the remedy began in July 2020 and was completed in October 2020. The second year of post-construction monitoring was completed in 2022 and demonstrated that the cap was intact and performing as designed. NW Natural has recognized an additional liability of $0.7 million associated with long-term monitoring and post-construction work.

**<u>Environmental Cost Deferral and Recovery</u>**

NW Natural has authorizations in Oregon and Washington to defer costs related to remediation of properties that are owned or were previously owned by NW Natural. In Oregon, a Site Remediation and Recovery Mechanism (SRRM) is currently in place to recover prudently incurred costs allocable to Oregon customers, subject to an earnings test. On October 21, 2019, the WUTC

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authorized an Environmental Cost Recovery Mechanism (ECRM) for recovery of prudently incurred costs allocable to Washington customers beginning November 1, 2019. See Note 17 in the 2025 Form 10-K for a description of SRRM and ECRM collection processes.

The following table presents information regarding the total regulatory asset deferred:

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| | | | |
|:---|:---|:---|:---|
| | March 31, | March 31, | December 31, |
| *In thousands* | 2026 | 2025 | 2025 |
| Deferred costs and interest <sup>(1)</sup> | $72897 | $65526 | $71954 |
| Accrued site liabilities <sup>(2)</sup> | 368090 | 152692 | 161993 |
| Insurance proceeds and interest | (42358) | (47655) | (41736) |
| Total regulatory asset deferral<sup>(1)</sup> | 398629 | 170563 | 192211 |
| Current regulatory assets<sup>(3)</sup> | 12271 | 10819 | 12148 |
| Long-term regulatory assets<sup>(3)</sup> | 386358 | 159744 | 180063 |

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<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Includes pre-review and post-review deferred costs, amounts currently in amortization, and interest, net of amounts collected from customers.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Excludes 3.3% of the Front Street site liability as the OPUC only allows recovery of 96.7% of costs for those sites allocable to Oregon, including those that historically served only Oregon customers. Amounts excluded from regulatory assets were immaterial at March 31, 2026, March 31, 2025, and December 31, 2025.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Environmental costs relate to specific sites approved for regulatory deferral by the OPUC and WUTC. In Oregon, NW Natural earns a carrying charge on cash amounts paid, whereas amounts accrued but not yet paid do not earn a carrying charge until expended. It also accrues a carrying charge on insurance proceeds for amounts owed to customers. In Washington, neither the cash paid for insurance proceeds received accrue a carrying charge. Current environmental costs represent remediation costs management expects to collect from customers in the next 12 months. Amounts included in this estimate are still subject to a prudence and earnings test review by the OPUC and do not include the $5 million tariff rider. The amounts allocable to Oregon are recoverable through NW Natural rates, subject to an earnings test.

<u>Environmental Earnings Test</u>

To the extent NW Natural earns at or below its authorized Return on Equity (ROE) as defined by the SRRM, remediation expenses and interest in excess of the $5 million tariff rider and $5 million insurance proceeds are recoverable through the SRRM. To the extent NW Natural earns more than its authorized ROE in a year, it is required to cover environmental expenses and interest on expenses greater than the $10 million with those earnings that exceed its authorized ROE.

**<u>Legal Proceedings</u>**

On October 11, 2024, NW Natural was added as a defendant to an ongoing lawsuit brought by Multnomah County in the Circuit Court for Multnomah County, Oregon *(County of Multnomah v. Exxon Mobil Corp., et. al.,* No.23-cv-25164) against more than a dozen oil and gas producers seeking damages relating to climate change impacts. The County asserts various causes of action, including negligence, fraud, trespass and public nuisance under Oregon law related to the refining, producing and/or marketing of fossil fuels. NW Natural is diligently defending against the claims.

On October 14, 2024, NW Natural and NW Holdings were named as the defendants in a lawsuit filed in the Circuit Court for Multnomah County, Oregon *(Blumm et. al. v. Northwest Natural Gas Company*, 24-cv-48490), that is seeking class certification on behalf of all Oregon NW Natural Smart Energy-enrolled customers during the past approximately six years. The lawsuit alleges claims under Oregon's Unlawful Trade Practices Act and for breach of contract, with respect to NW Natural's Smart Energy program. The plaintiffs seek injunctive and equitable relief and damages. In October 2025, NW Holdings was dismissed as a party to the proceeding. The plaintiffs subsequently filed a Second Amended Complaint re-alleging claims against NW Holdings. We are diligently defending against the claims.

NW Natural and NW Holdings are subject to claims and litigation arising in the ordinary course of business including the matters discussed above. Although the final outcome of any of these legal proceedings cannot be predicted with certainty, including the matter relating to the Oregon Steel Mills site referenced below, NW Natural and NW Holdings do not expect that the ultimate disposition of any of these matters will have a material effect on their financial condition, results of operations or cash flows. See also Part II, Item 1, *"Legal Proceedings".*

For additional information regarding other environmental matters, see Note 17 in the 2025 Form 10-K.

***18. SUBSEQUENT EVENTS***

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The 2026 LC Reimbursement Agreement provides that the aggregate undrawn face amount of letters of credit issued thereunder may not exceed $100 million. TD Bank has no commitment to issue letters of credit under the LC Facility and will have the sole discretion to limit and condition the terms for the issuance of letters of credit (including maximum face amounts).

The LC Reimbursement Agreement is cross-defaulted to NW Natural's Amended and Restated Credit Agreement. The occurrence of an Event of Default (as defined in the LC Reimbursement Agreement) would entitle TD Bank to require cash collateral for the Obligations, as defined in the LC Reimbursement Agreement, and to exercise all other rights and remedies available under the LC Reimbursement Agreement and under applicable law.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is management's assessment of NW Holdings' and NW Natural's financial condition, including the principal factors that affect results of operations. The discussion refers to the consolidated results for the three months ended March 31, 2026 and 2025 of NW Holdings, the substantial majority of which consist of the operating results of NW Natural. When significant activity exists at NW Holdings that does not exist at NW Natural, additional disclosure has been provided. References in this discussion to "Notes" are to the Notes to Unaudited Consolidated Financial Statements in this report. A significant portion of the business results are seasonal in nature, and, as such, the results of operations for the three month period is not necessarily indicative of expected fiscal year results. Therefore, this discussion should be read in conjunction with NW Holdings' and NW Natural's 2025 Annual Report on Form 10-K, as applicable (2025 Form 10-K).

NW Natural operates as one reportable business segment on a consolidated basis. Prior to the first quarter of 2026, the reportable business segment NW Natural was represented as NWN Gas Utility and excluded certain gas storage and other business activities that were included in Other. Consistent with the method in which the Chief Operating Decision Maker (CODM) reviews each business, these activities were consolidated into NWN Gas Utility and presented as the reportable business segment NW Natural beginning in the first quarter of 2026. NW Natural is primarily a regulated local gas distribution company serving customers in Oregon and southwest Washington. NW Natural also provides regulated storage services at its Mist underground storage facility. The Mist underground storage facility serves distribution and interstate storage customers, and owns the North Mist gas storage facility, which serves a local electric company. NW Natural also owns NWN Gas Reserves and NW Natural RNG Holding Company, LLC, which procures regulated renewable natural gas for distribution customers. Additionally, NW Natural encompasses interstate storage services, third-party asset management services, and appliance center retail operations.

SiEnergy, which was acquired on January 7, 2025, is a regulated natural gas distribution utility and serves residential and commercial customers in the greater metropolitan areas of Houston, Dallas, and Austin, Texas. SiEnergy also includes a natural gas transmission utility serving customers in the greater metropolitan areas of Dallas and Austin, Texas. SiEnergy activities are reported in the SiEnergy segment.

NWN Water is a regulated water and wastewater utility serving residential and commercial customers in Oregon, Washington, Idaho, Texas, and Arizona. The activities of NWN Water are reported in the NWN Water segment, which also includes non-regulated water and wastewater services businesses in Oregon, Washington and Idaho, and an equity method investment in Avion Water Company, Inc. In addition, NWN Water provides water services to communities throughout the Pacific Northwest and California.

Other activities for NW Holdings, aggregated and reported as Other, include NWN Renewables and its non-regulated renewable natural gas activities; and NNG Financial's investment in Kelso-Beaver Pipeline (KB Pipeline), which is accounted for under the equity method. See Note 4 for further discussion of our business segments and other, as well as our direct and indirect wholly-owned subsidiaries.

**<u>Non-GAAP Financial Measures</u>** 

In addition to presenting diluted earnings per share for NW Holdings, we present diluted earnings per share for each of our segments (Segment EPS), which is a non-GAAP financial measure. We calculate Segment EPS by dividing the net income of each of our segments calculated in accordance with GAAP by the number of diluted shares outstanding for NW Holdings. We use Segment EPS to analyze our financial performance because we believe it provides useful information to our investors, analysts and creditors in evaluating our financial condition and results of operations of each of our segments. We believe investors find Segment EPS to be a useful indicator of our performance.

Segment EPS should not be considered a substitute for, or superior to, diluted earnings per share or other measures calculated in accordance with GAAP. Moreover, Segment EPS has limitations in that it does 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 report, limiting the usefulness of those measures for comparative purposes. A reconciliation of Segment EPS to diluted earnings per share is provided below.

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| | | |
|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, |
| *Diluted earnings per share* | 2026 | 2025 |
| Diluted EPS Total<sup>(1)</sup>  | $2.33 | $2.18 |
| NW Natural<sup>(2)</sup>  | 2.24 | 2.26 |
| SiEnergy<sup>(2)</sup>  | 0.22 | 0.14 |
| NWN Water<sup>(2)</sup>  | 0.03 | 0.04 |
| Other<sup>(2)</sup> | (0.16) | (0.26) |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Total Diluted EPS is equal to the sum of Diluted EPS for NW Natural, SiEnergy, NWN Water and Other.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Non-GAAP financial measure. See Non-GAAP Financial Measures--Segment Earnings Per Share for definition, reconciliation and additional information.

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***EXECUTIVE SUMMARY***

Key quarter-to-date financial highlights for NW Holdings include:

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | |
| | 2026 | 2025 | YTD |
| *In millions, except per share data* | Amount | Amount | Change |
| Consolidated: |  |  |  |
| &nbsp;&nbsp;Net income | $97.5 | $87.9 | $9.6 |
| &nbsp;&nbsp;Diluted EPS | $2.33 | $2.18 | $0.15 |

---

**THREE MONTHS ENDED MARCH 31, 2026 COMPARED TO MARCH 31, 2025.**

• Consolidated net income increased by $9.6 million or $0.15 per diluted share.

• The increase in net income is primarily driven by new NW Natural rates in Oregon, effective October 31, 2025, organic growth at SiEnergy, and the acquisition of Pines in June 2025. These benefits were partially offset by increases in interest expense and depreciation expense.

• Customer growth was 2.8%, driven by organic growth at SiEnergy and NWN Water, and the Pines and Inline acquisitions.

• Capital expenditures were $113.7 million, as we continue to invest in our utility systems to support safety and reliability.

Key quarter-to-date financial highlights for NW Natural include:

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | |
| | 2026 | 2025 | YTD |
| *In millions* | Amount | Amount | Change |
| Consolidated: |  |  |  |
| &nbsp;&nbsp;Net income | $93.7 | $91.0 | $2.7 |

---

**THREE MONTHS ENDED MARCH 31, 2026 COMPARED TO MARCH 31, 2025.**

**•** Consolidated net income increased by $2.7 million and was primarily driven by new rates in Oregon, effective October 31, 2025. This benefit was partially offset by increases in depreciation expense, interest expense and operations and maintenance expenses.

• Capital expenditures were $79.6 million, due primarily to continued investments to support the safety and reliability of NW Natural.

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***RESULTS OF SEGMENTS***

**NW NATURAL SEGMENT RESULTS.** NW Natural results were as follows:

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | YTD Change |
| *In thousands, except per share data* | 2026 | 2025 | YTD Change |
| Margin<sup>(1)</sup> | $270390 | $264559 | $5831 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations and maintenance | 70530 | 67766 | 2764 |
| &nbsp;&nbsp;&nbsp;&nbsp;General taxes | 16037 | 14979 | 1058 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 39444 | 36036 | 3408 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 693 | 746 | (53) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 126704 | 119527 | 7177 |
| Income from operations | 143686 | 145032 | (1346) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | (104) | (2749) | 2645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | 17678 | 15580 | 2098 |
| Income before income taxes | 125904 | 126703 | (799) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 32155 | 35664 | (3509) |
| Net income | $93749 | $91039 | $2710 |
| EPS<sup>(2)</sup> | $2.24 | $2.26 | $(0.02) |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>See NW Natural Margin Table below for additional detail.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Non-GAAP financial measure. See Non-GAAP Financial Measures—Segment Earnings Per Share for definition, reconciliation and additional information.

**THREE MONTHS ENDED MARCH 31, 2026 COMPARED TO MARCH 31, 2025.** The primary factors contributing to the $2.7 million increase in NW Natural net income were as follows:

• $5.8 million increase in margin driven by new rates on October 31, 2025 for Oregon customers. See the NW Natural margin table below for additional margin detail;

• $3.5 million decrease in income tax expense primarily due to lower non-deductible executive compensation and higher AFUDC equity income; partially offset by

• $3.4 million increase in depreciation expense due to additional capital investments; and

• $2.8 million increase in operations and maintenance expenses due primarily to an increase in employee related expenses, technology, insurance and professional services expenses.

For the three months ended March 31, 2026, total NW Natural volumes sold and delivered decreased by 42.7 million therms compared to the same period in 2025 primarily due to lower usage from residential and commercial sales customers.

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**NW NATURAL MARGIN TABLE.** The following table summarizes the composition of gas volumes, revenues, and cost of sales:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | Favorable/<br>(Unfavorable) | Favorable/<br>(Unfavorable) |
| *In thousands, except degree day and customer data* | 2026 | 2025 | YTD Change | YTD Change |
| <u>Volumes (therms)</u> |  |  |  |  |
| Residential and commercial sales | 273077 | 310183 | (37106) | (37106) |
| Industrial sales and transportation | 118964 | 124555 | (5591) | (5591) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total volumes sold and delivered | 392041 | 434738 | (42697) | (42697) |
| <u>Operating Revenues</u> |  |  |  |  |
| Residential and commercial sales | $397535 | $413163 | $| (15628) |
| Industrial sales and transportation | 23699 | 22745 | 954 | 954 |
| Regulated gas storage | 9606 | 9784 | (178) | (178) |
| Other revenue | 3056 | 3121 | (65) | (65) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating revenues | 433896 | 448813 | (14917) | (14917) |
| Less: Cost of gas | 140144 | 159436 | 19292 | 19292 |
| Less: Environmental remediation expense | 6325 | 6253 | (72) | (72) |
| Less: Revenue taxes | 17037 | 18565 | 1528 | 1528 |
| &nbsp;&nbsp;&nbsp;&nbsp;Margin | $270390 | $264559 | $| 5831 |
| <u>Margin</u><sup>(1)</sup> |  |  |  |  |
| Residential and commercial sales | $247443 | $241361 | $| 6082 |
| Industrial sales and transportation | 10943 | 9352 | 1591 | 1591 |
| Regulated gas storage | 9606 | 9784 | (178) | (178) |
| Gain (loss) from gas cost incentive sharing<sup>(2)</sup> | (658) | 941 | (1599) | (1599) |
| Other margin | 3056 | 3121 | (65) | (65) |
| &nbsp;&nbsp;&nbsp;&nbsp;Margin | $270390 | $264559 | $| 5831 |
| <u>Cost of Gas Detail</u> |  |  |  |  |
| Volumes sold (therms)<sup>(3)</sup> | 299729 | 338144 | (38415) | (38415) |
| Average cost of gas (cents per therm) | $0.47 | $0.47 | $|  |
| <u>Degree days</u><sup>(4)</sup> |  |  |  |  |
| Average<sup>(5)</sup> | 1335 | 1326 | 9 | 9 |
| Actual | 1196 | 1276 | (6) | (6)% |
| Percent (warmer) colder than average weather | (10)% | (4)% |  |  |
|  | As of March 31, | As of March 31, |  |  |
| <u>Meters</u> | 2026 | 2025 | Growth | Growth |
| Residential | 740709 | 736853 | 0.5% | 0.5% |
| Commercial | 69350 | 69526 | (0.3)% | (0.3)% |
| Industrial | 1030 | 1047 | (1.6)% | (1.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 811089 | 807426 | 0.5% | 0.5% |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amounts reported as NW Natural margin for each category of meters are operating revenues less cost of gas, environmental remediation expense and revenue taxes, subject to earnings test considerations, as applicable.

<sup>(2)</sup> &nbsp;&nbsp;&nbsp;&nbsp;For additional information regarding NW Natural's gas cost incentive sharing mechanism, see Part II, Item 7 "Results of Operations—Regulatory Matters—Rate Mechanisms—Gas Reserves" in NW Natural's 2025 Form 10-K.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>This calculation excludes volumes delivered to industrial transportation customers.

<sup>(4)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Heating degree days are units of measure reflecting temperature-sensitive consumption of natural gas, calculated by subtracting the average of a day's high and low temperatures from 59 degrees Fahrenheit.

<sup>(5)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Average weather represents the 25-year average of heating degree days. Beginning October 31, 2025, average weather is calculated over the period June 1, 1999 through May 31, 2024, as determined in NW Natural's 2025 Oregon general rate case. From November 1, 2024 through October 30, 2025, average weather was calculated over the period June 1, 1998 through May 31, 2023, as determined in NW Natural's 2024 Oregon general rate case.

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**SIENERGY SEGMENT RESULTS.** SiEnergy results and highlights include:

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | YTD Change |
| *In thousands, except per share data* | 2026 | 2025<sup>(3)</sup> | YTD Change |
| Margin<sup>(1)</sup> | $18455 | $13584 | $4871 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations and maintenance | 2814 | 1682 | 1132 |
| &nbsp;&nbsp;&nbsp;&nbsp;General taxes | 10 | 219 | (209) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 1797 | 2070 | (273) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 4621 | 3971 | 650 |
| Income from operations | 13834 | 9613 | 4221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 336 | 93 | 243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | 2543 | 2257 | 286 |
| Income before income taxes | 11627 | 7449 | 4178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 2537 | 1944 | 593 |
| Net income | $9090 | $5505 | $3585 |
| EPS<sup>(2)</sup> | $0.22 | $0.14 | $0.08 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>See SiEnergy Margin Table below for additional detail.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Non-GAAP financial measure. See Non-GAAP Financial Measures—Segment Earnings Per Share for definition, reconciliation and additional information.

<sup>(3)</sup> &nbsp;&nbsp;&nbsp;&nbsp;SiEnergy was acquired by NW Holdings on January 7, 2025. Results for the period from January 7, 2025 to March 31, 2025 are presented in the table above. Prior to January 7, 2025, NW Holdings did not operate any assets that fall within its SiEnergy segment.

**THREE MONTHS ENDED MARCH 31, 2026 COMPARED TO MARCH 31, 2025.** The primary factors contributing to the $3.6 million increase in SiEnergy net income were as follows:

• $4.9 million increase in margin driven primarily by organic growth and the acquisition of Pines Holdings, LLC (Pines) on June 2, 2025. See the SiEnergy margin table below for additional margin detail. Benefits to net income were partially offset by

• $1.1 million increase in operations and maintenance expenses due primarily to higher payroll and benefit costs and an increase in system maintenance expenses.

For the three months ended March 31, 2026, total SiEnergy volumes sold and delivered increased by 4.1 million therms compared to the same period in 2025 primarily due to organic growth and the Pines acquisition.

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**SIENERGY MARGIN TABLE.** The following table summarizes the composition of gas volumes, revenues, and cost of sales:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | Favorable/(Unfavorable) | Favorable/(Unfavorable) |
| *In thousands, except degree day and customer data* | 2026 | 2025<sup>(5)</sup> | YTD Change | YTD Change |
| <u>Volumes (therms)</u> |  |  |  |  |
| Residential and commercial sales | 17166 | 13664 | 3502 | 3502 |
| Transportation | 1128 | 549 | 579 | 579 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total volumes sold and delivered | 18294 | 14213 | 4081 | 4081 |
| <u>Operating Revenues</u> |  |  |  |  |
| Residential and commercial sales | $30891 | $21905 | $| 8986 |
| Transportation | 205 | 198 | 7 | 7 |
| Other distribution revenues | 599 | 563 | 36 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating revenues | 31695 | 22666 | 9029 | 9029 |
| Less: Cost of gas | 12279 | 8303 | 3976 | 3976 |
| Less: Revenue taxes | 961 | 779 | 182 | 182 |
| &nbsp;&nbsp;&nbsp;&nbsp;Margin | $18455 | $13584 | $| 4871 |
| Margin<sup>(1)</sup> |  |  |  |  |
| Residential and commercial sales | $17658 | $12830 | $| 4828 |
| Transportation | 198 | 191 | 7 | 7 |
| Other margin | 599 | 563 | 36 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;Margin | $18455 | $13584 | $| 4871 |
| <u>Cost of Gas Detail</u> |  |  |  |  |
| Volumes sold (therms)<sup>(2)</sup> | 17166 | 13664 | 3502 | 3502 |
| Average cost of gas (cents per therm) | $0.72 | $0.61 | $| 0.11 |
| <u>Degree days</u><sup>(3)</sup> |  |  |  |  |
| Average<sup>(4)</sup> | 729 | 719 | 10 | 10 |
| Actual | 563 | 773 | (210) | (210) |
| Percent (warmer) colder than average weather<sup>(4)</sup> | (23)% | 8% | (31) | (31)% |
|  | As of March 31, | As of March 31, |  |  |
| <u>Meters</u> | 2026 | 2025 | Growth | Growth |
| Residential | 92067 | 72663 | 26.7% | 26.7% |
| Commercial | 687 | 414 | 65.9% | 65.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 92754 | 73077 | 26.9% | 26.9% |

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<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amounts reported as SiEnergy margin for each category of meters are operating revenues less cost of gas and revenue taxes.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>This calculation excludes volumes delivered to transportation customers.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Heating degree days are units of measure reflecting temperature-sensitive consumption of natural gas. SiEnergy calculates heating degree days by subtracting the average of a day's high and low temperatures from 65 degrees Fahrenheit.

<sup>(4)</sup> &nbsp;&nbsp;&nbsp;&nbsp;SiEnergy average weather represents the 10-year average of heating degree days. Beginning October 1, 2023 average weather is calculated over the period April 1, 2013 through March 31, 2023, as determined in SiEnergy's 2023 Texas general rate case.

<sup>(5)</sup> &nbsp;&nbsp;&nbsp;&nbsp;SiEnergy was acquired by NW Holdings on January 7, 2025. Results for the period from January 7, 2025 to March 31, 2025 are presented in the table above. Prior to January 7, 2025, NW Holdings did not operate any assets that fall within its SiEnergy segment.

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**NWN WATER SEGMENT RESULTS.** NWN Water results and highlights include:

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | YTD Change |
| *In thousands, except per share data* | 2026 | 2025 | YTD Change |
| Operating Revenues | $14969 | $13909 | $1060 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations and maintenance | 8607 | 7265 | 1342 |
| &nbsp;&nbsp;&nbsp;&nbsp;General taxes | 286 | 565 | (279) |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue taxes | 102 | 61 | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 2893 | 2394 | 499 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 682 | 581 | 101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 12570 | 10866 | 1704 |
| Income from operations | 2399 | 3043 | (644) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 274 | 68 | 206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | 688 | 792 | (104) |
| Income before income taxes | 1985 | 2319 | (334) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 554 | 631 | (77) |
| Net income | $1431 | $1688 | $(257) |
| EPS<sup>(1)</sup> | $0.03 | $0.04 | $(0.01) |
| <u>Connections</u> | As of March 31, 2026 | As of March 31, 2025 | Growth |
| Water and wastewater | 81237 | 78052 | 4.1% |

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<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Non-GAAP financial measure. See Non-GAAP Financial Measures—Segment Earnings Per Share for definition, reconciliation and additional information.

**THREE MONTHS ENDED MARCH 31, 2026 COMPARED TO MARCH 31, 2025.** The primary factors contributing to the $0.3 million decrease in net income were as follows:

• $1.3 million increase in operations and maintenance expenses primarily due to higher payroll and benefit costs; partially offset by

• $1.1 million increase in operating revenues primarily driven by organic customer growth, the Inline acquisition in the fourth quarter of 2025, and new rates at our largest utility in Arizona.

**OTHER RESULTS.** Other results and highlights include:

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | YTD Change |
| *In thousands, except per share data* | 2026 | 2025 | YTD Change |
| Operating Revenues | $9843 | $8896 | $947 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of gas | 5726 | 5252 | 474 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations and maintenance | 1158 | 6970 | (5812) |
| &nbsp;&nbsp;&nbsp;&nbsp;General taxes | 10 | 8 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 6894 | 12230 | (5336) |
| Income from operations | 2949 | (3334) | 6283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 6 | 72 | (66) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | 12443 | 10766 | 1677 |
| Income before income taxes | (9488) | (14028) | 4540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | (2707) | (3712) | 1005 |
| Net loss | $(6781) | $(10316) | $3535 |
| EPS<sup>(1)</sup> | $(0.16) | $(0.26) | $0.10 |

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<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Non-GAAP financial measure. See Non-GAAP Financial Measures--Segment Earnings Per Share for definition, reconciliation and additional information.

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**THREE MONTHS ENDED MARCH 31, 2026 COMPARED TO MARCH 31, 2025.** The primary factors contributing to the $3.5 million, decrease in net loss were as follows:

• $5.8 million decrease in operations and maintenance expenses due primarily to lower business development and acquisition costs; partially offset by

• $1.7 million increase in interest expense due primarily to higher long-term debt at NW Holdings from Junior Subordinated Debentures issued in March 2025 and higher commercial paper balances.

**CURRENT ECONOMIC AND POLITICAL CONDITIONS.** Current economic and political conditions are reviewed and monitored on an ongoing basis for potential impacts to our business. This includes changes in inflation and interest rates, tariffs or trade restrictions, geopolitical conflicts and uncertainty, supply chain disruptions, and other regulatory, physical or cyber related risks impacting our business. Further, we review U.S. federal, state and local policies, executive orders, rules, initiatives and other changes to fiscal, tax, regulation, environmental, climate and other federal policies that may impact our businesses, all of which could impact the conditions in which we operate.

We continue to evaluate the effect of additional tariffs on our businesses, specifically natural gas imports at our gas utilities. SiEnergy, located in Texas, does not import natural gas. NW Natural imported approximately 60% of our natural gas from Canada in 2025. NW Natural's third-party asset manager imports the majority of NW Natural's gas each year and is not subject to tariffs because they are a United States-Mexico-Canada Agreement (USMCA) certified importer of record. NW Natural is a USMCA certified importer. We've evaluated tariffs across our businesses and at this time, we do not anticipate the currently implemented tariffs to have a material impact on our businesses. We continue to evaluate the potential impact of efforts to impose new or modified tariffs and the legal proceedings that may impact them.

We continue to monitor the impact of the conflict in the Middle East and the resulting volatility in global natural gas prices. NW Natural and SiEnergy recover the cost of natural gas through rates. In addition, for the 2025-26 gas year, the total amount of forecasted sales volumes hedged was approximately 84% in Oregon and 33% in Washington. We expect to continue hedging for the upcoming 2026-27 gas year in the coming months, have not experienced gas price volatility in regard to the conflict in the Middle East, and will continue to assess these factors.

Supply chains and lead times have generally returned to normalized levels. For critical equipment and materials, we do extensive planning and make purchases in advance or maintain the appropriate amount of inventory to support our businesses.

For all of our businesses, we continuously monitor interest rates and financing options. Our regulated utilities generally recover interest expense on their long-term debt through their authorized cost of capital.

**<u>Regulatory Matters</u>**

For additional information, see Part II, Item 7 "Results of Operations—*Regulatory Matters"* in the 2025 Form 10-K*.*

**NW Natural**NW Natural's natural gas distribution business is subject to regulation by the OPUC and WUTC with respect to, among other matters, rates and terms of service, systems of accounts, and issuances of securities by NW Natural. At March 31, 2026, approximately 88% of NW Natural customers were located in Oregon, with the remaining 12% in Washington. Earnings and cash flows from natural gas distribution operations are largely determined by rates set in general rate cases and other proceedings in Oregon and Washington. They are also affected by weather, the local economies in Oregon and Washington, the pace of customer growth in the residential, commercial, and industrial markets, legislation and policy, customer preferences and NW Natural's ability to remain price competitive, control expenses, and obtain reasonable and timely regulatory recovery of its natural gas distribution-related costs, including operating expenses and investment costs in plant and other regulatory assets. NW Natural continuously evaluates the need for rate cases in its jurisdictions. See "*Most Recent Completed Rate Cases"* below.

<u>Most Recent Completed Rate Cases</u> 

**2025 OREGON RATE CASE.** On October 24, 2025, the OPUC issued a final order in the Rate Case approving three prior multi-party stipulations and resolving the remaining open items in the Rate Case. New rates authorized by the OPUC were effective October 31, 2025. The final order provided for a total revenue requirement increase of $20.7 million over revenues from existing rates, which includes approximately $4.8 million related to an updated depreciation study. The revenue requirement is based on the following assumptions:

• Capital structure of 50% common equity and 50% long-term debt;

• Cost of long-term debt of 4.74%

• Return on equity of 9.5%, and

• Overall cost of capital of 7.12%

Average rate base after final adjustments for completed capital projects was $2.27 billion or an increase of $180.1 million since the last rate case.

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**WASHINGTON.** On October 21, 2021, the WUTC issued an order concluding NW Natural's general rate case filed in December 2020 (WUTC Order). The WUTC Order provides for an annual revenue requirement increase over two years, consisting of a 6.4% or $5.0 million increase in the first year beginning November 1, 2021 (Year One), and a 3.5% or $3.0 million increase in the second year beginning November 1, 2022 (Year Two). The increase is based on the following assumptions:

• Cost of capital of 6.814%; and

• Average rate base of $194.7 million, an increase of $20.9 million since the last rate case for capital expenditures already expended at the time of filing, with an additional expected $31.2 million increase in Year One, and an additional expected $21.4 million increase in Year Two, with the increases in Year One and Year Two relating to expected capital expenditures in those years.

The WUTC Order does not specify the underlying inputs to the cost of capital, including capital structure and return on equity. New rates authorized by the WUTC Order were effective November 1, 2021. In September 2023, NW Natural received a letter of compliance from the WUTC acknowledging that the Year Two rates are no longer subject to review and refund.

NW Natural continuously evaluates the need for rate cases in its jurisdictions.

<u>Regulatory Proceeding Updates</u>

**2025 WASHINGTON RATE CASE.** On August 29, 2025, NW Natural filed a request for a general rate increase with the WUTC under Washington's multi-year rate plan statute.

This multi-year rate plan filing includes requested increases in the annual revenue requirement over three years, consisting of a $25.6 million revenue increase in the first year beginning August 1, 2026 (Year 1), an $8.6 million revenue increase in the second year beginning August 1, 2027 (Year 2) and an $8.3 million revenue increase in the third year beginning August 1, 2028 (Year 3).

On March 23, 2026, NW Natural filed a settlement with the WUTC that addressed all issues but one in the Rate Case (Stipulation). The Stipulation provides for a $20.1 million revenue increase in Year 1, a $7.7 million revenue increase in Year 2 and an $8.7 million revenue increase in Year 3. The revenue requirement for Year 1 includes the addition to rate base expected to be placed in-service by the start of Rate Year 1. Rate Years 2 and 3 include additions to rate base during the rate years. Plant placed into service after March 31, 2025 is subject to review, adjustment and refund according to actual costs incurred.

The incremental revenue requirement for each year is based upon the following assumptions:

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| | | | |
|:---|:---|:---|:---|
| | **Year 1** | **Year 2** | **Year 3** |
| **Revenue Requirement Increase** | $20.1 million | $7.7 million | $8.7 million<sup>(2)</sup> |
| **Capital Structure** | • 50.0% long-term debt<br>• 50.0% common equity  | • 50.0% long-term debt<br>• 50.0% common equity  | • 50.0% long-term debt<br>• 50.0% common equity  |
| **Return on Equity** | 9.5% | 9.5% | 9.5% |
| **Overall Rate of Return** | 7.15% | 7.18% | 7.22% |
| **Average Rate Base** | $328.0 million<sup>(1)</sup>  | $369.6 million | $410.7 million |

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<sup>(1)</sup> Represents an increase of $80.7 million since the last rate case.

<sup>(2)</sup> Includes approximately $3.5 million related to an updated depreciation study.

The Stipulation does not address NW Natural's line extension allowance policy, which is subject to the ongoing regulatory litigation process. The Stipulation is subject to the review and approval of the WUTC. For new rates to be effective, the WUTC must issue an order, which may approve or deny the terms of the Stipulation or be issued under the WUTC's own terms. NW Natural expects new rates to take effect on August 1, 2026.

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<u>Rate Mechanisms</u>

During 2026 and 2025, NW Natural's key approved rates and recovery mechanisms for each service area included:

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| | | | |
|:---|:---|:---|:---|
| | Oregon | Oregon | Washington |
| | 2025 Rate Case (effective 10/31/2025) | 2024 Rate Case (effective 11/1/2024) | 2021 Rate Case <br>(effective 11/1/2021) |
| Authorized Rate Structure: |  |  |  |
| &nbsp;&nbsp;Return on Equity | 9.5% | 9.4% | \*\* |
| &nbsp;&nbsp;Rate of Return | 7.1% | 7.1% | 6.8% |
| &nbsp;&nbsp;Debt/Equity Ratio | 50%/50% | 50%/50% | \*\* |
| Key Regulatory Mechanisms: |  |  |  |
| &nbsp;&nbsp;Purchased Gas Adjustment (PGA) | X | X | X |
| &nbsp;&nbsp;Gas Cost Incentive Sharing | X | X |  |
| &nbsp;&nbsp;Decoupling | X | X |  |
| &nbsp;&nbsp;Weather Normalization (WARM) | X | X |  |
| &nbsp;&nbsp;RNG Automatic Adjustment Clause | X | X |  |
| &nbsp;&nbsp;Environmental Cost Recovery | X | X | X |
| &nbsp;&nbsp;Interstate Storage and Asset Management Sharing | X | X | X |

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\*\* The WUTC Order does not specify the underlying inputs to the cost of capital, including capital structure and return on equity.

Annually, or more often if circumstances warrant, NW Natural reviews all regulatory assets for recoverability. If NW Natural should determine all or a portion of these regulatory assets no longer meet the criteria for continued application of regulatory accounting, then NW Natural would be required to write-off the net unrecoverable balances against earnings in the period such a determination was made.

**PURCHASED GAS ADJUSTMENT.** Rate changes are established for NW Natural each year under purchased gas adjustment (PGA) mechanisms in Oregon and Washington to reflect changes in the expected cost of natural gas commodity purchases. The PGA filings include costs for gas purchases, gas commodity derivative contracts, gas storage costs, gas reserves costs, pipeline demand costs, renewable natural gas and its environmental attributes, including renewable thermal certificates, and temporary rate adjustments, which amortize balances of deferred regulatory accounts.

In September 2025, NW Natural filed its annual PGAs and received OPUC and WUTC approval in October. The PGA rate changes became effective on October 31, 2025, in Oregon and on November 1, 2025, in Washington. Rates vary between states due to different rate structures, rate mechanisms and hedging policies.

Each year, NW Natural hedges gas prices on a portion of NW Natural's annual sales requirement based on normal weather, including both physical and financial hedges. As of March 31, 2026, NW Natural's forecasted sales volume was hedged at approximately 79% in total for the 2025-26 gas year, including 64% in financial hedges and 15% in physical gas supplies. The total hedged was approximately 84% in Oregon and 33% in Washington.

For the subsequent two gas years, NW Natural is hedged in total between 15% and 28% for annual requirements. Hedge levels are subject to change based on actual load volumes, which depend to a certain extent on weather, economic conditions, and estimated gas reserve production. Also, gas storage inventory levels may increase or decrease with storage expansion, changes in storage contracts with third parties, variations in the heat content of the gas, and or storage recall by NW Natural. We will continue to monitor gas prices as we fill storage and look at hedging plans for future gas years. Gas purchases and hedges entered into for the upcoming PGA year will be included in the Company's PGA filings in Oregon and Washington.

Under the current PGA mechanism in Oregon, there is an incentive sharing provision whereby NW Natural is required to select each year an 80% deferral or a 90% deferral of higher or lower actual gas costs compared to estimated PGA prices, such that the impact on NW Natural's current earnings from the incentive sharing is either 20% or 10% of the difference between actual and estimated gas costs, respectively. For the 2024-25 and 2025-26 gas years, NW Natural selected the 90% deferral option. Under the Washington PGA mechanism, NW Natural defers 100% of the higher or lower actual gas costs, and those gas cost differences are passed on to customers through the annual PGA rate adjustment.

As of May 1, 2025, 0.2 million therms per day of deliverability and 0.3 Bcf of associated non-utility Mist gas storage capacity was recalled to serve core customers. Customer rate increases related to this recall began for Oregon customers on October 31, 2025, and November 1, 2025 for Washington customers.

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**CLIMATE COMMITMENT ACT.** Washington has enacted the Climate Commitment Act (CCA), which establishes a comprehensive program that includes an overall limit for GHG emissions from major sources in the state that declines yearly. The program began January 1, 2023. In December 2024, the WUTC re-authorized a CCA cost recovery mechanism with a rate effective date of January 1, 2025. Under this mechanism, NW Natural recovers CCA costs and will defer any difference between forecasted and actual costs in the following year. Additionally, under the approved tariff, proceeds from the sale of allowances, which is required under the CCA, would be used to offset CCA compliance costs for low-income customers. Any remaining proceeds would benefit other customers through fixed bill credits or use in other carbon reduction programs.

Additionally in December 2023, the WUTC approved a request to modify NW Natural's CCA deferral to allow for the recovery of interest from customers based on the actual cash paid for purchases of allowances, less proceeds received from the sale of allowances.

**EARNINGS TEST REVIEW.** NW Natural is subject to an annual earnings review in Oregon to determine if the NW Natural business is earning above its authorized ROE threshold. If NW Natural business earnings exceed a specific ROE level, then 33% of the amount above that level is required to be deferred or refunded to customers. Under this provision, if NW Natural selects the 80% deferral gas cost option, then NW Natural retains all earnings up to 150 basis points above the currently authorized ROE. If NW Natural selects the 90% deferral option, then it retains all earnings up to 100 basis points above the currently authorized ROE. For the 2024-25 and 2025-26 gas years, NW Natural selected the 90% deferral option. The ROE threshold is subject to adjustment annually based on movements in long-term interest rates. For calendar years 2023, 2024, and 2025, the ROE threshold was 10.40%. NW Natural filed the 2025 earnings test in April 2026, indicating no customer credit adjustment based on results. NW Natural does not expect a customer credit adjustment for 2026 based on preliminary results of the earnings test.

**DECOUPLING.** In Oregon, NW Natural has a decoupling mechanism that covers residential and some commercial sales customers. Decoupling is intended to break the link between revenue and the quantity of gas consumed by customers, removing any financial incentive to discourage customers' efforts to conserve energy. This mechanism employs a use-per-customer decoupling calculation, which adjusts margin revenues to account for the difference between actual and expected customer volumes. The margin adjustment resulting from differences between actual and expected volumes under the decoupling component is recorded to a deferral account, which is included in the annual PGA filing. The 2025 Oregon general rate case reset the Oregon decoupling baseline usage per customer.

**WARM.** In Oregon, NW Natural has an approved weather normalization mechanism (WARM), which is applied to residential and small commercial customer bills. This mechanism is designed to help stabilize the collection of fixed costs by adjusting residential and small commercial customer billings based on temperature variances from average weather, with rate decreases when the weather is colder than average and rate increases when the weather is warmer than average. The mechanism is applied to bills from December through mid-May of each heating season. The mechanism adjusts the margin component of customers' rates to reflect average weather, which uses the 25-year average temperature for each day of the billing period. Daily average temperatures and 25-year average temperatures are based on a set point temperature of 59 degrees Fahrenheit for residential customers and 58 degrees Fahrenheit for commercial customers. The collections of any unbilled WARM amounts due to tariff caps and floors are deferred and earn a carrying charge until collected, or returned, along with the PGA the following year. Residential and small commercial customers in Oregon are allowed to opt out of the weather normalization mechanism, and as of March 31, 2026, 7% of total eligible customers had opted out. NW Natural does not have a weather normalization mechanism approved for Washington customers, which account for about 12% of total customers.

**RENEWABLE NATURAL GAS AND AUTOMATIC ADJUSTMENT CLAUSE.** Oregon Senate Bill 98 (SB 98) enables natural gas utilities to procure or develop RNG, including hydrogen, on behalf of their Oregon customers. The legislation and rules set voluntary goals for adding as much as 30% RNG into the state's pipeline system by 2050; enables gas utilities to invest in and own the cleaning and conditioning equipment required to bring raw biogas and landfill gas up to pipeline quality, as well as the facilities to connect to the local gas distribution system; and allowing up to 5% of a utility's revenue requirement to be used to cover the incremental cost or investment in RNG infrastructure.

Further, the law supports all forms of renewable natural gas including renewable hydrogen, which is made from excess wind, solar and hydro power. Renewable hydrogen can be used for the transportation system, industrial use, or blended into the natural gas pipeline system.

Investments in RNG facilities are recovered through an automatic adjustment clause that allows recovery of NW Natural's investments in RNG projects, including operating costs, to be added to rates annually on October 31st, following a prudence review. The RNG recovery mechanism allows NW Natural to defer for recovery or credit the differences between the forecasted and actual costs of the RNG projects, subject to an earnings test that includes deadbands at 50 basis points below and above NW Natural's authorized ROE. NW Natural has two investments that the OPUC has approved for recovery in rates. For 2025, NW Natural submitted this test to the OPUC in April 2026. No earnings test adjustment is expected for 2025. For RNG procurement contracts, NW Natural seeks recovery of the costs along with the PGA, subject to a prudence review.

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**ENVIRONMENTAL COST DEFERRAL AND RECOVERY.** NW Natural has authorizations in Oregon and Washington to defer costs related to remediation of properties that are owned or were previously owned by NW Natural. In Oregon, a Site Remediation and Recovery Mechanism (SRRM) is currently in place to recover prudently incurred costs allocable to Oregon customers, subject to an earnings test. Effective beginning November 1, 2019, the WUTC authorized an Environmental Cost Recovery Mechanism (ECRM) for recovery of prudently incurred costs allocable to Washington customers.

<u>Oregon SRRM</u>

Under the Oregon SRRM collection process there are three types of deferred environmental remediation expense:

• Pre-review - This class of costs represents remediation spend that has not yet been deemed prudent by the OPUC. Carrying costs on these remediation expenses are recorded at NW Natural's authorized cost of capital. NW Natural anticipates the prudence review for annual costs and approval of the earnings test prescribed by the OPUC to occur by the third quarter of the following year.

• Post-review - This class of costs represents remediation spend that has been deemed prudent and allowed after applying the earnings test, but is not yet included in amortization. NW Natural earns a carrying cost on these amounts at a rate equal to the five-year treasury rate plus 100 basis points.

• Amortization - This class of costs represents amounts included in current customer rates for collection and is calculated as one-fifth of the post-review deferred balance. NW Natural earns a carrying cost equal to the amortization rate determined annually by the OPUC, which approximates a short-term borrowing rate. NW Natural included $10.2 million and $8.8 million of deferred remediation expense approved by the OPUC for collection during the 2025-26 and 2024-25 PGA years, respectively.

In addition, the SRRM also provides for the annual collection of $5.0 million from Oregon customers through a tariff rider. As it collects amounts from customers, NW Natural recognizes these collections as revenue net of any earnings test adjustments and separately amortizes an equal and offsetting amount of the deferred regulatory asset balance through the environmental remediation operating expense line shown separately in the operating expenses section of the Consolidated Statements of Comprehensive Income (Loss). For additional information, see Note 17 in the 2025 Form 10-K.

The SRRM earnings test is an annual review of adjusted NW Natural ROE compared to authorized NW Natural ROE. To apply the earnings test NW Natural must first determine what if any costs are subject to the test through the following calculation:

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| |
|:---|
| Annual spend |
| Less: $5.0 million base rate rider |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior year carry-over<sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $5.0 million insurance + interest on insurance |
| Total deferred annual spend subject to earnings test |
| Less: over-earnings adjustment, if any |
| Add: deferred interest on annual spend<sup>(2)</sup> |
| Total amount transferred to post-review |

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<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Prior year carry-over results when the prior year amount transferred to post-review is negative. The negative amount is carried over to offset annual spend in the following year.

<sup>(2)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Deferred interest is added to annual spend to the extent the spend is recoverable.

To the extent the NW Natural business earns at or below its authorized ROE as defined in the SRRM, the total amount transferred to post-review is recoverable through the SRRM. To the extent more than authorized ROE is earned in a year, the amount transferred to post-review would be reduced by those earnings that exceed its authorized ROE. For 2025, NW Natural has submitted this test to the OPUC in April 2026. No earnings test adjustment is expected for 2025.

<u>Washington ECRM</u>

The ECRM established by the WUTC order effective November 1, 2019 permits NW Natural's recovery of environmental remediation expenses allocable to Washington customers. These expenses represent 3.32% of costs associated with remediation of sites that historically served both Oregon and Washington customers. The order allows for recovery of past deferred and future prudently incurred remediation costs allocable to Washington through application of insurance proceeds and collections from customers. Prudently incurred costs that were deferred from the initial deferral authorization in February 2011 through June 2019 were fully offset with insurance proceeds, with any remaining insurance proceeds to be amortized over a 10.5 year period. On an annual basis NW Natural will file for a prudence determination and a request to recover remediation expenditures in excess of insurance amortizations in the following year's customer rates. After insurance proceeds are fully amortized, if in a particular year the request to collect deferred amounts exceeds one percent of Washington normalized revenues, then the excess will be collected over three years with interest.

**INTERSTATE STORAGE AND ASSET MANAGEMENT SHARING.** On an annual basis, NW Natural credits amounts to Oregon and Washington customers as part of a regulatory incentive sharing mechanism related to net revenues earned from Mist gas storage for assets developed in advance of utility customer needs, and asset management revenues. In January 2026, the OPUC approved the annual 2026 bill credit for Oregon customers' share of interstate storage and asset management activities

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totaling approximately $23.2 million, which was credited to customers' bills in February 2026. This includes revenue generated for the November 2024 through October 2025 PGA year. Credits are given to customers in Washington as reductions in rates through the annual PGA filing in November.

**MIST INTERSTATE GAS STORAGE.** NW Natural's interstate storage activities at its Mist Storage facility are subject to regulation by the OPUC, WUTC, and the Federal Energy Regulatory Commission (FERC) with respect to, among other matters, rates and terms of service. The OPUC also regulates intrastate storage services at Mist, while FERC regulates interstate storage services at Mist. The FERC uses a maximum cost of service model which allows for gas storage prices to be set at or below the cost of service as approved by each agency in their last regulatory filing. The OPUC Schedule 80 rates are tied to the FERC rates, and are updated whenever NW Natural modifies FERC maximum rates. NW Natural is required under its Mist interstate storage certificate authority and rate approval orders to file every five years either a petition for rate approval or a cost and revenue study to change or justify maintaining the existing rates for its interstate storage services. NW Natural filed a rate petition with the FERC in August 2023 and the revised rates were effective beginning September 1, 2023.

Non-utility Mist storage capacity of 1.15 Bcf and 0.28 Bcf were recalled as of December 31, 2024, and 2025, respectively, to serve core utility customer needs. Customer rate impacts of this recall began on November 1, 2024, and 2025.

**INTEGRATED RESOURCE PLAN (IRP).** NW Natural generally files a full IRP biennially for Oregon and Washington with the OPUC and WUTC, respectively. NW Natural jointly filed its 2025 IRP for both Oregon and Washington on August 1, 2025. The 2025 IRP evaluates several scenarios based on a range of inputs and outlines the least-cost least-risk portfolio of resources required to meet future demand and environmental compliance obligations. With respect to IRPs generally, the WUTC issues letters of compliance and Oregon acknowledges the IRP Action Plan individually or in total. In April 2026, NW Natural received a letter of compliance from the WUTC. NW Natural anticipates that decisions from the OPUC will come in the first half of 2026.

**OREGON ENERGY FAIRNESS AND AFFORDABILITY ACT.** In 2025, the State of Oregon enacted the Oregon Energy Fairness and Affordability Act (HB 3179). HB 3179 authorizes the OPUC to consider broader economic indicators when evaluating rate proposals and limits the frequency and timing of rate increases for electric and natural gas utilities. Specifically, NW Natural and other utilities are restricted from filing a new general rate case within 18 months of the effective date of the last general rate increase until the earlier of January 2, 2027 or when the OPUC implements rules for multi-year rate plans. Utilities are permitted to seek cost deferral during this 18-month period. HB 3179 only allows utilities to increase rates from April 1 through October 31 (outside of the winter heating season) and requires utilities to, at least annually, publish forecasts of expected rate adjustments for the following 12 months. Additionally, under HB 3179 the OPUC has the authority to approve the issuance of rate recovery bonds to finance or refinance certain eligible utility capital expenditures, including a capital investment that will cause residential rates to increase by more than five percent. We expect that the new requirements may impact the timing and structure of future rate filings.

**ALTERNATIVE RATE MECHANISM (ARM).** On November 25, 2025, NW Natural filed a request to the OPUC for an alternative rate mechanism for the recovery of costs associated with certain capital expenditures placed into service prior to October 31, 2026, including certain discrete projects over $1 million, information technology and services capital expenditures and public works projects. NW Natural's request includes an annual revenue requirement increase of $15.6 million and a proposed effective date of October 31, 2026. The request remains subject to review by the OPUC and other stakeholders and approval by the OPUC.

**SIENERGY**

<u>Most Recently Completed Rate Case</u>

SiEnergy's natural gas distribution business is located in Texas and primarily serves customers in the Houston, Dallas, and Austin metropolitan areas. Under Texas' regulatory paradigm, original jurisdiction over natural distribution rates is shared between the Railroad Commission of Texas (RRC) and the municipalities where the utility provides service. The RRC has exclusive original jurisdiction over natural gas utility rates in areas outside of municipalities. A municipality has original jurisdiction over the rates, operations and services provided by any gas utility distributing natural gas within city or town limits, unless it has surrendered its original jurisdiction to the RRC. However, any municipal rate decision can be appealed to the RRC, which will conduct its own review, including compiling a new evidentiary record. SiEnergy's last general rate case was settled in 2023 with new rates effective in September 2023. As part of the black box settlement, SiEnergy's annual revenue requirement increased by $5.5 million based on an approved net plant amount of approximately $151.6 million through March 31, 2023. Given the nature of the black box settlement, SiEnergy's authorized rate of return and capital structure were not specified.

<u>Regulatory Proceeding Updates</u>

**2026 RATE CASE.** On May 4, 2026, SiEnergy Gas, LLC (SiEnergy Gas), Pines Gas, Inc. and Pines Gas Development, Inc. filed a request for a general rate increase with the RRC. The filing seeks to consolidate the corporate and regulatory structures of these entities – including all of their assets and liabilities – into SiEnergy Gas as the surviving entity. The filing further requests the establishment of system-wide rates. The filing requests an overall revenue requirement increase of $12.0 million, reflecting a 16.1% increase in such entities' overall combined revenue, including gas costs. The filing also includes a request to establish baseline factors for future interim rate adjustment filings under Texas' Gas Reliability Infrastructure Program, which allows,

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subject to refund, recovery on and of incremental changes in invested capital between rate cases (subject to a prudence review). The request is based on the following assumptions or requests:

• Capital structure of 40% long-term debt and 60% equity;

• Return on equity of 10.75%;

• Cost of long-term debt of 5.69%; and

• Cost of capital of 8.73%.

SiEnergy's filing will be reviewed by the RRC and other stakeholders. New rates are expected to take effect in the fourth quarter of 2026.

**TEXAS HOUSE BILL 4384.** In June 2025, Texas House Bill 4384 was signed into law, allowing gas utilities in Texas to defer, and later recover, specific costs related to property, plant and equipment placed in service, but not yet reflected in base rates, including depreciation, ad valorem taxes, and carrying cost. SiEnergy applied the new provisions to property, plant and equipment placed in service but not yet reflected in rates in the first quarter of 2026. The impact was not material for the first quarter results.

**CUSTOMER RATE RELIEF BONDS.** In February 2022, the RRC issued a Financing Order to the Texas Public Financing Authority (TPFA) authorizing the issuance of the customer rate relief bonds to securitize the aggregated extraordinary costs associated with Winter Storm Uri for all participating natural gas utilities. In March 2023, the bonds were issued by the TPFA and $18.8 million of proceeds were received by SiEnergy. The majority of the proceeds were used to pay down the related long-term debt. SiEnergy began billing and collecting customer rate relief charges from customers in October 2023. Customer rate relief charges collected by SiEnergy are owned by the TPFA and are remitted to the TPFA on a monthly basis.

**WNA.** SiEnergy's service areas utilize weather normalization mechanisms (WNA). These mechanisms are designed to reduce the delivery charge component of customer's bills for the additional volumes used when actual heating degree days (HDDs) exceed normalized HDDs and to increase the delivery charge component of customers' bills for the reduction in volumes used when actual HDDs are less than normal HDDs.

**NWN WATER**

The wholly-owned and non-wholly-owned regulated water businesses of NWN Water are subject to regulation by the utility commissions in the states in which they are located, which currently includes Oregon, Washington, Arizona, Idaho, and Texas. The wholly-owned regulated wastewater businesses of NWN Water are subject to regulation by the utility commissions in the states in which they are located, which currently includes Texas and Arizona. In addition, NWN Water includes wholly-owned unregulated wastewater businesses in Oregon, Washington, and Idaho.

<u>Most Recently Completed Rate Cases</u>

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Entity | State | Regulator | Revenue Requirement Increase<br>(in millions) | Rate Effective Date | Equity Ratio | Return on Equity | Outcome |
| Foothills Utilities | Arizona | ACC | Water: $0.9 <br>Wastewater: 3.0 | 11/1/2024 | 55.00% | 9.55% | Settled |
| Sunriver Water | Oregon | OPUC | Water: 0.4 | 11/1/2024 | n/a | n/a | Settled |
| Avion Water<sup>(1)</sup> | Oregon | OPUC | 1.3 | 2/1/2025 | 51.35% | 9.50% | Settled |
| Suncadia Water | Washington | WUTC | 0.3 | 7/1/2025 | n/a | n/a | Settled |
| Gem State Water | Idaho | IPUC | 0.4 | 8/1/2025 | 55.00% | 9.80% | Settled |
| Falls Water | Idaho | IPUC | 0.6 | 9/1/2025 | 55.00% | 9.80% | Settled |
| Cascadia Water | Washington | WUTC | 1.1 | 10/21/2025 | n/a | n/a | Litigated |
| South Coast Water | Oregon | OPUC | 0.023 | 8/15/2025 | n/a | 9.50% | Settled |
| Seavey Loop Water | Oregon | OPUC | 0.043 | 10/1/2025 | n/a | 9.50% | Settled |

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<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;NWN Water owns a 50.0% stake in Avion Water.

<u>Regulatory Proceeding Updates</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Foothills Utilities implemented, effective June 24, 2025, a surcharge associated with its new wastewater reclamation facility that is designed to recover an additional $0.75 million of revenue requirement annually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Salmon Valley Water, Sunstone Water, Lakeshore Water, Seavey Loop Water, and South Coast Water, regulated water companies in Oregon, filed a consolidated general rate case in the fourth quarter of 2025. The rate case is ongoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On April 1, 2026, Foothills Utilities filed a request for general rate revision with the Arizona Corporation Commission (ACC) for Foothills Yuma. On April 30, 2026, Foothills Utilities filed requests for general rate revision with the ACC for

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Foothills Kingman West and Foothills Kingman East, respectively. The filings requested an aggregate revenue increase of $3.8 million for water and $0.7 million for wastewater. NWN Water filed to seek consolidation of these rate cases on May 4, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On March 31, 2026, Blue Topaz filed a request for a general rate revision with the Public Utility Commission of Texas. The application included increases for water service of approximately $2.1 million, and $0.6 million for wastewater service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On April 10, 2026, Avion filed a request for a general rate revision with the Oregon Public Utilities Commission. In the application, Avion is seeking an annual revenue increase of $1.4 million.

**<u>Environmental Regulation and Legislation Matters</u>**

Certain of our businesses, including our natural gas businesses, are subject to or likely to be affected by current or future legislation, regulation, directed government funding, penalties for non-compliance, litigation and other forms of policies or actions seeking to regulate GHG emissions, including, but not limited to: GHG emissions limits, reporting requirements, carbon taxes, requirements to purchase carbon credits, building codes, efficiency standards, charges to fund energy efficiency activities or other regulatory actions, incentives or mandates to conserve energy or use renewable energy sources, tax advantages or other subsidies to support alternative energy sources, a reduction in rate recovery for construction costs related to the installation of new customer services or other new infrastructure investments, mandates for the use of specific fuels or technologies, bans on specific fuels or technologies, or promotion of research into new technologies to reduce the cost and increase the scalability of alternative energy sources.

<u>Federal</u>

Historically, federal agencies have regulated GHG emissions. For example, under the Clean Air Act, our natural gas distribution businesses have been required to report system throughput to the EPA on an annual basis. The EPA also has required additional GHG reporting regulations applicable to NW Natural, requiring the annual reporting of fugitive emissions from operations. Although the EPA has revoked the endangerment findings for GHG emissions and has announced proposed rules rescinding these reporting requirements, we were subject to these reporting requirements in 2025 and remain subject to such requirements until the EPA's rules are finalized and become effective.

Upon taking office in January 2025, President Trump has advanced federal policies to promote energy independence and revoke Biden administration climate initiatives. We expect continued changes to climate policy under the Trump Administration, such as additional executive orders, regulations, programs and other federal actions. We are currently evaluating these developments but cannot predict the timing, form, or potential impact of future federal actions on our business.

<u>Oregon</u>

In November 2024, the Environmental Quality Commission of the Oregon Department of Environmental Quality (ODEQ) issued final cap and reduce rules for its Climate Protection Program (CPP), which became effective on January 1, 2025. The CPP establishes a program to reduce GHG emissions from covered entities, including natural gas utilities, by 50% by 2035 and 90% by 2050 from a 2017-2019 baseline. The first compliance period for the CPP concludes December 31, 2027. ODEQ previously promulgated CPP rules in December 2021, but the Oregon Court of Appeals invalidated these previous CPP rules in December 2023 for the agency's failure to comply with rulemaking requirements under state law. A coalition of 29 labor organizations, businesses, trade associations, and utilities, including NW Natural, are currently challenging the CPP in the Oregon Court of Appeals.

NW Natural received an order from the OPUC authorizing deferral of costs under the prior CPP and current CPP. The first compliance period for the CPP has begun. Through 2025, NW Natural has not exceeded its limit on the GHG emissions the CPP attributes to it under the program. NW Natural is currently recovering in Oregon rates costs associated with RNG, as well as costs related to NW Natural's transportation energy efficiency program, all of which reduce NW Natural's compliance obligation under the CPP. NW Natural will continue to pursue recovery of costs associated with CPP compliance in rates.

On October 25, 2024, the OPUC issued its final order related to our 2024 Oregon General Rate Case, approving the parties' Stipulations and resolving remaining open items. The OPUC also ordered the phase out of NW Natural's line extension allowance and ordered a downward adjustment to rate base of undepreciated line extension costs. NW Natural filed an appeal with the Oregon Court of Appeals on December 23, 2024, challenging the determination and the authority of the OPUC to take these actions and this litigation remains pending.

<u>Washington State</u>

In 2025, Washington comprised approximately 8% of NW Natural's revenues, as well as 2% and 14% of new meters from commercial and residential customers, respectively.

Effective February 2021, Washington state building codes (WSEC-2018) require new residential homes to meet energy efficiency standards based on carbon emissions assumptions that consider electric appliances to have lower on-site GHG emissions than comparable gas appliances. This increases the cost of constructing new homes with natural gas depending on a number of factors including home size, equipment configurations, and building envelope measures. In March 2024, rules enacted by the Washington State Building Code Council (SBCC) (WSEC-2021) took effect that modified the 2021 codes, and collectively, these rules generally have the effect of restricting or eliminating the use of gas space and water heating in new commercial and residential construction. The SBCC rules are currently subject to pending legal challenges.

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In November 2024, Washington Ballot initiative I-2066 was passed. I-2066 was described on the ballot as prohibiting state and local governments from restricting access to natural gas, prohibiting the SBCC from discouraging or penalizing the use of natural gas in any building, requiring providers of natural gas to provide energy services regardless of the other energy sources available, and prohibiting the Washington Utilities and Transportation Commission (WUTC) from approving any multiyear rate plan requiring or incentivizing a natural gas company to terminate natural gas service or make such natural gas service cost-prohibitive. Although the SBCC has indicated that the current SBCC codes will remain in place while the SBCC investigates any changes necessary under I-2066, the King County Washington Superior Court recently issued a ruling declaring I-2066 invalid under the Washington state constitution. Washington State and the Building Industry Association of Washington have appealed such litigation, which is pending in the Washington Supreme Court. We cannot currently predict the ultimate outcome of such appeal, or if there will be any further changes to the SBCC codes.

In 2022, the state of Washington enacted the Climate Commitment Act (CCA), which establishes a comprehensive program that includes an overall limit for GHG emissions from major sources in the state that declines yearly beginning January 1, 2023, resulting in an overall reduction of GHG emissions to 95% below 1990 levels by 2050. The Washington Department of Ecology has adopted rules to create a cap-and-invest program, under which entities, including natural gas and electric utilities, large manufacturing facilities, and transportation and other fuel providers, which are subject to the CCA must either reduce their emissions, purchase qualifying offsets (including RNG) or obtain allowances to cover any remaining emissions. NW Natural is subject to the CCA, has received an order authorizing deferral of CCA costs from the WUTC, and is currently recovering CCA compliance costs in rates. CCA compliance costs represent a 4.6% increase on residential bills as of January 1, 2025. Low-income customers do not participate in these compliance costs and are not impacted.

<u>Local Jurisdictions and Other Advocacy</u>

Advocacy groups have indicated a willingness to pursue municipal ordinances and ballot measures or other local activities disincentivizing gas infrastructure. A number of cities or counties across the country have taken action, and several in our service territory are considering actions such as limitations or bans on the use of natural gas in new construction or otherwise. For example, the Eugene City Council continues to develop a plan to address GHG emissions, align incentives around GHG emissions and to engage in a number of actions, including identifying potential revenue sources, like a gas supplier tax. Similarly, some jurisdictions and advocates are seeking to ban the use of natural gas and certain natural gas appliances inside homes contending that there are detrimental indoor health effects associated with the use of natural gas.

NW Natural is actively engaged with federal, state and local policymakers, consumers, customers, small businesses and other business coalitions, economic development practitioners, and other advocates in our service territory and is working with these communities to communicate the role that direct use natural gas, and in the coming years, RNG and hydrogen, can play in pursuing more effective policies to reduce GHGs while supporting reliability, resiliency, energy choice, equity, and energy affordability.

<u>NW Natural Climate Initiatives and Compliance Actions</u>

We expect that compliance with any form of regulation of GHG emissions will require additional resources and legislative or regulatory tools and will increase costs. The evolving guidance to implement the CCA and CPP, evolving carbon credit markets, decades-long compliance timeframes, likely changes in law and policy, and technological advancements, all make it difficult to accurately predict long-term tools and compliance costs for NW Natural. NW Natural has modeled pathways to compliance with the CCA and CPP in its most recent IRP. While costs associated with each possible compliance pathway differ, we are currently recovering costs associated with compliance with the CCA and CPP in rates.

Limitations on natural gas use, or declining line extension allowances provided in rates to cover construction costs for new services, carbon compliance costs included in rates reduce the competitiveness of our business and the demand for natural gas service. However, at the same time, other sources of energy are or will be subject to, GHG-related compliance requirements that are likely to affect their cost and competitiveness relative to natural gas. For example, Oregon's HB 2021 and Washington's SB 5116 require certain GHG emissions reductions from electric utilities. We expect compliance with these and other laws will increase the cost of energy for electric customers in our service territory. We are not able to determine at this time whether these developments will make natural gas use more or less competitive on a relative basis.

We further expect these and other trends to drive innovation of, and demand for, technological developments and innovative new products that reduce GHG emissions. Research and development are occurring across the energy sector, including in the gas sector with work being conducted on gas heat pumps, higher efficiency water and space heating appliances including hybrid systems, carbon capture utilization and storage developments, continued development of technologies related to RNG, and various forms of hydrogen for different applications, among others.

***FINANCIAL CONDITION***

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**<u>Cash Flows</u>**

The following discussion of changes in cash flows refers to the consolidated results of NW Holdings, the substantial majority of which consist of the operating results of NW Natural. When significant activity exists at NW Holdings that does not exist at NW Natural, additional disclosure has been provided.

<u>Operating Activities</u>

Changes in operating cash flows are primarily affected by net income or loss, changes in working capital requirements, and other cash and non-cash adjustments to operating results.

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | |
| *In thousands* | 2026 | 2025 | YTD Change |
| NW Holdings cash provided by operating activities | $116127 | $179610 | $(63483) |
| NW Natural cash provided by operating activities | 108334 | 181230 | (72896) |

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**THREE MONTHS ENDED MARCH 31, 2026 COMPARED TO MARCH 31, 2025.** Cash provided by operating activities decreased $63.5 million at NW Holdings and $72.9 million at NW Natural. The significant factors contributing to the decrease at NW Natural were as follows:

• $27.3 million increase in cash paid for inventories;

• $25.2 million decrease in accounts payable; and

• $14.4 million decrease in decoupling mechanism.

The decrease in cash provided by operating activities at NW Holdings was primarily driven by the NW Natural factors discussed above.

NW Holdings and NW Natural have lease and purchase commitments relating to their operating activities that are financed with cash flows from operations. For information on cash flow requirements related to leases and other purchase commitments, see Note 7 and Note 16 in the 2025 Form 10-K*.* 

<u>Investing Activities</u>

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | |
| *In thousands* | 2026 | 2025 | YTD Change |
| NW Holdings cash used by investing activities | $(116053) | $(374975) | $258922 |
| NW Natural cash used in investing activities | (80524) | (84753) | 4229 |

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**THREE MONTHS ENDED MARCH 31, 2026 COMPARED TO MARCH 31, 2025.** Cash used by investing activities decreased $258.9 million at NW Holdings and decreased $4.2 million at NW Natural. The decrease in cash used by investing activities at NW Holdings was primarily driven by the acquisition of SiEnergy on January 7, 2025, for which $271.1 million in cash consideration was paid. In addition, NW Holdings capital expenditures increased by $11.5 million, driven by continued investment in our natural gas, water and wastewater utility systems.

NW Holdings capital expenditures for 2026 are expected to be in the range of $500 million to $550 million and for the five-year period from 2026 to 2030 are expected to range from $2.6 billion to $2.9 billion. NW Natural capital expenditures for 2026 are expected to be in the range of $340 million to $370 million and for the five-year period from 2026 to 2030 are expected to be approximately $1.6 billion to $1.8 billion. SiEnergy capital expenditures for 2026 are expected to be in the range of $110 million to $120 million and for the five-year period from 2026 to 2030 are expected to be in the range of $750 million to $800 million. NW Natural Water capital expenditures for 2026 are expected to be in the range of $50 million to $60 million and for the five-year period from 2026 to 2030 are expected to be in the range of $250 million to $300 million.

The timing and amount of the core capital expenditures and projects for 2026 and the next six years could change based on regulation, growth, and cost estimates. Additional investments in our infrastructure during and after 2026 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 or financed with long-term debt or equity, as appropriate.

<u>North Mist Gas Storage Facility</u>

The North Mist gas storage facility began operations in 2019. The North Mist facility provides long-term, no-notice underground gas storage service and is dedicated solely to Portland General Electric (PGE) under a 30-year contract with options to extend up to an additional 50 years upon mutual agreement of the parties. PGE uses the facility to fuel its gas-fired electric power generation facilities.

North Mist includes a reservoir providing 4.1 Bcf of available storage, a compressor station with a contractual capacity of 120,000 dekatherms of gas deliverability per day, no-notice service that can be drawn on rapidly, and a 13-mile pipeline to connect to PGE's Port Westward gas plants in Clatskanie, Oregon.

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The facility is included in rate base under an established tariff schedule with revenues recognized consistent with the schedule. Billing rates are updated annually to the forecasted depreciable asset level and forecasted operating expenses.

<u>Mist Additional Expansion Potential</u>

Mist has a number of depleted reservoirs that have not been developed into storage at this time. As a result, NW Natural has additional expansion opportunities in the Mist storage field. To explore our opportunities, we applied for an Energy Facility Siting Council (EFSC) permit and received approval in January 2025. The permit provides flexibility for potential upgrades and expansions. In February 2026, we announced a planned 4-5 Bcf expansion at our North Mist gas storage facility. This expansion is subject to certain conditions including the customers' final approval of project costs and notice to proceed. Storage expansion projects take multiple years to develop and put into service. We have not included any storage expansion costs within our planned capital expenditures outlined in "Financial Conditions – Investing Activities". Any future expansion would be based on market demand, cost effectiveness, available financing, receipt of future permits, and other rights.

<u>Financing Activities</u>

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | |
| *In thousands* | 2026 | 2025 | YTD Change |
| NW Holdings cash (used in) provided by financing activities | $(779) | $254368 | $(255147) |
| NW Natural cash used by financing activities | (31860) | (37228) | 5368 |

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**THREE MONTHS ENDED MARCH 31, 2026 COMPARED TO MARCH 31, 2025.** Cash (used in) provided by financing activities decreased $255.1 million at NW Holdings and cash used by financing activities decreased $5.4 million at NW Natural.

The decrease in cash (used in) provided by financing activities at NW Holdings was primarily driven by lower issuances of long-term debt, partially offset by lower repayments of short-term debt, lower proceeds from common stock issuances, and higher repayments on long-term debt.

The decrease in cash used by financing activities at NW Natural was primarily attributable to an increase in short-term debt repayments, net of a decrease in cash contributions received from NW Holdings.

**<u>Capital Structure</u>**

NW Holdings' long-term goal is to maintain a strong and balanced consolidated capital structure. NW Natural targets a regulatory capital structure of 50% common equity and 50% long-term debt, which is consistent with approved regulatory allocations in Oregon, which has an allocation of 50% common equity and 50% long-term debt without recognition of short-term debt.

When additional capital is required, debt or equity securities are issued depending on both the target capital structure and market conditions. These sources of capital are also used to fund long-term debt retirements and short-term commercial paper maturities. See "Liquidity and Capital Resources" below and Note 9. Achieving our target capital structure and maintaining sufficient liquidity to meet operating requirements is necessary to maintain attractive credit ratings and provide access to the capital markets at reasonable costs.

NW Holdings' consolidated capital structure, excluding short-term debt, was as follows:

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| | | | |
|:---|:---|:---|:---|
| | March 31, | March 31, | December 31, |
| | 2026 | 2025 | 2025 |
| Common equity | 39.3% | 39.5% | 37.7% |
| Long-term debt (including current maturities) | 60.7 | 60.5 | 62.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 100.0% | 100.0% | 100.0% |

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NW Natural's consolidated capital structure, excluding short-term debt, was as follows:

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| | | | |
|:---|:---|:---|:---|
| | March 31, | March 31, | December 31, |
| | 2026 | 2025 | 2025 |
| Common equity | 50.8% | 52.6% | 49.6% |
| Long-term debt (including current maturities) | 49.2 | 47.4 | 50.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 100.0% | 100.0% | 100.0% |

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As of March 31, 2026 and 2025, and December 31, 2025, NW Holdings' consolidated capital structure included common equity of 37.7%, 38.7% and 36.2%; long-term debt of 54.4%, 58.2% and 55.7%; and short-term debt including current maturities of long-term debt of 7.9%, 3.1% and 8.1%, respectively. As of March 31, 2026 and 2025, and December 31, 2025, NW Natural's consolidated capital structure included common equity of 50.8%, 52.6%, and 49.4%; long-term debt of 47.4%, 46.4% and 48.5%; and short-term debt including current maturities of long-term debt of 1.8%, 1.0%, and 2.1%, respectively.

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**<u>Liquidity and Capital Resources</u>**

At March 31, 2026 and 2025, NW Holdings had approximately $34.9 million and $100.1 million, and NW Natural had approximately $24.3 million and $81.8 million of cash and cash equivalents, respectively. In order to maintain sufficient liquidity during periods when capital markets are volatile, NW Holdings and NW Natural may elect to maintain higher cash balances and add short-term borrowing capacity. NW Holdings and NW Natural may also pre-fund their respective capital expenditures when long-term fixed rate environments are attractive. NW Holdings and NW Natural expect to have ample liquidity in the form of cash on hand and from operations and available credit capacity under credit facilities to support funding needs.

<u>ATM Equity Program</u>

In August 2024, the Finance Committee of the NW Holdings' Board of Directors authorized NW Holdings' sale of $200 million in the aggregate gross sales price under the ATM equity program. NW Holdings is under no obligation to offer and sell common stock under the ATM equity program. Any shares of common stock offered under the ATM equity program are registered on NW Holdings' universal shelf registration statement filed with the SEC, which expires August 2027, or will be registered on a subsequent registration statement to be filed by NW Holdings.

During the three months ended March 31, 2026, NW Holdings issued and sold 441,034 shares of common stock pursuant to the ATM equity program resulting in cash proceeds of $22.2 million, net of fees and commissions paid to agents of $0.3 million. As of March 31, 2026, $75.2 million of equity remained available for issuance under the ATM equity program.

<u>NW Holdings</u>

For NW Holdings, short-term liquidity is primarily provided by cash balances, dividends from its operating subsidiaries, proceeds from the sale of commercial paper notes, as well as a multi-year credit facility, and short-term credit facilities. NW Holdings also has a universal shelf registration statement filed with the SEC for the issuance of debt and equity securities. NW Holdings long-term debt and equity issuances are primarily used to provide equity contributions to NW Holdings' operating subsidiaries for operating and capital expenditures and other corporate purposes. NW Natural also has a universal shelf registration statement filed with the SEC for the issuance of debt securities. NW Holdings' issuance of securities is not subject to regulation by state public utility commissions, but the dividends from NW Natural to NW Holdings are subject to regulatory ring-fencing provisions. NW Holdings guarantees the debt of its wholly-owned subsidiary, NWN Water. See "*Long-Term Debt*" below for more information regarding NWN Water debt.

As part of the ring-fencing conditions agreed upon with the OPUC and WUTC in connection with the holding company reorganization, NW Natural may not pay dividends or make distributions to NW Holdings if NW Natural's credit ratings and common equity ratio, defined as the ratio of equity to long-term debt, fall below specified levels. If NW Natural's long-term secured credit ratings are below A- for S&P and A3 for Moody's, dividends may be issued so long as NW Natural's common equity ratio is 45% or more. If NW Natural's long-term secured credit ratings are below BBB for S&P and Baa2 for Moody's, dividends may be issued so long as NW Natural's common equity ratio is 46% or more. Dividends may not be issued if NW Natural's long-term secured credit ratings are BB+ or below for S&P or Ba1 or below for Moody's, or if NW Natural's common equity ratio is below 44%, where the ratio is measured using common equity and long-term debt excluding imputed debt or debt-like lease obligations. In each case, common equity ratios are determined based on a preceding or projected 13-month average. In addition, there are certain OPUC notice requirements for dividends in excess of 5% of NW Natural's retained earnings, or more than 10% of its retained earnings over a six-month period, and for special cash dividends paid in addition to regularly quarterly dividends.

Additionally, if NW Natural's common equity (excluding goodwill and equity associated with non-regulated assets), on a preceding or projected 13-month average basis, is less than 46% of NW Natural's capital structure, NW Natural is required to notify the OPUC, and if the common equity ratio falls below 44%, file a plan with the OPUC to restore its equity ratio to 44%. This condition is designed to ensure NW Natural continues to be adequately capitalized under the holding company structure. Under the WUTC order, the average common equity ratio must not exceed 56%.

At March 31, 2026, NW Natural satisfied the ring-fencing provisions described above.

Based on several factors, including current cash reserves, committed credit facilities, its ability to receive dividends from its operating subsidiaries, in particular NW Natural, and an expected ability to issue long-term debt and equity securities in the capital markets, NW Holdings believes its liquidity is sufficient to meet anticipated cash requirements, including all contractual obligations, investing, and financing activities as discussed in "*Cash Flows"* above, for at least the next 12 calendar months beginning April 1, 2026 and beyond such 12-month period based on NW Holdings' current business plans.

**NW HOLDINGS DIVIDENDS.** Quarterly dividends have been paid on common stock each year since NW Holdings' predecessor's stock was first issued to the public in 1951. Annual common stock dividend payments per share, adjusted for stock splits, have increased each year since 1956. The declarations and amount of future dividends to shareholders will depend upon earnings, cash flows, financial condition, NW Natural's ability to pay dividends to NW Holdings and other factors. The amount and timing of dividends payable on common stock is at the sole discretion of the NW Holdings Board of Directors.

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Dividend highlights include:

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended March 31, | Three Months Ended March 31, | YTD Change |
| *Per common share* | 2026 | 2025 | YTD Change |
| Dividends paid | $0.4925 | $0.4900 | $0.0025 |

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In April 2026, the Board of Directors of NW Holdings declared a quarterly dividend on NW Holdings common stock of $0.4925 per share. The dividend is payable on May 15, 2026 to shareholders of record on April 30, 2026, reflecting an annual indicated dividend rate of $1.97 per share.

<u>NW Natural</u>

For the NW Natural business segment, short-term borrowing requirements typically peak during colder winter months when NW Natural borrows money to cover the lag between natural gas purchases and bill collections from customers. Short-term liquidity for the NW Natural business is primarily provided by cash balances, internal cash flow from operations, proceeds from the sale of commercial paper notes, as well as available cash from multi-year credit facilities, short-term credit facilities, company-owned life insurance policies, the sale of long-term debt, and equity contributions from NW Holdings. NW Natural's long-term debt and contributions from NW Holdings are primarily used to finance NW Natural capital expenditures, refinance maturing debt, and provide temporary funding for other general corporate purposes of the NW Natural business.

Based on its current debt ratings (see "Credit Ratings" below), NW Natural has been able to issue commercial paper and long-term debt at attractive rates. In the event NW Natural is not able to issue new long-term debt due to adverse market conditions or other reasons, NW Natural expects that near-term liquidity needs can be met using internal cash flows, issuing commercial paper, receiving equity contributions from NW Holdings, or drawing upon a committed credit facility. NW Natural also has a universal shelf registration statement filed with the SEC for the issuance of secured and unsecured debt securities.

In the event NW Natural senior unsecured long-term debt ratings are downgraded, or outstanding derivative positions exceed a certain credit threshold, counterparties under derivative contracts could require NW Natural to post cash, a letter of credit, or other forms of collateral, which could expose NW Natural to additional cash requirements and may trigger increases in short-term borrowings while in a net loss position. NW Natural was not required to post collateral at March 31, 2026. See "*Credit Ratings*" below and Note 15.

Other items that may have a significant impact on NW Natural's liquidity and capital resources include NW Natural's pension contribution requirements and environmental expenditures. For additional information, see Part II, Item 7 "*Financial Condition*" in the 2025 Form 10-K*.*

**<u>NWN Renewables Gas Purchase Agreements</u>**

NWN Renewables is an unregulated subsidiary of NW Natural Holdings established to pursue unregulated RNG activities. In September 2021, a subsidiary of NWN Renewables, Ohio Renewables, and a subsidiary of EDL, a global producer of sustainable distributed energy, executed agreements to secure RNG supply from two production facilities that are designed to convert landfill waste gases to RNG (EDL Facilities). The first facility was completed and commenced delivery of RNG to Ohio Renewables in September 2024. Upon reaching this milestone, Ohio Renewables paid approximately $26.0 million to the EDL subsidiary. The second facility was completed and commenced delivery of RNG to Ohio Renewables in December 2024 at which point Ohio Renewables made an additional payment of $25.4 million to the EDL subsidiary.

Alongside these development agreements, Ohio Renewables and the subsidiary of EDL executed agreements for Ohio Renewables to purchase up to an annual specified amount of RNG produced by the EDL Facilities over a 20-year period at a contractually specified price. In December 2025, Ohio Renewables entered into an agreement to purchase up to an annual specified amount of RNG produced by the EDL Facilities from a separate investment-grade counterparty over an 11-year period at a contractually specified price. Purchase volumes for each agreement are variable based on production, and purchases may not exceed contracted amounts. We currently estimate the amount of RNG purchases based on prices and estimated production volumes specified in the agreements to be $31.4 million in 2027, $31.6 million in 2028, $30.8 million in 2029, $31.4 million in 2030 and $599.3 million thereafter. Year-to-date purchases through Q1 totaled $4.1 million, for total expected purchases of $20.9 million in 2026.

**<u>NWN Renewables Gas Sale Agreements</u>**

Ohio Renewables has contracted to sell RNG produced by the EDL Facilities up to certain specified volumes in each of calendar years 2024 through 2026 to an investment-grade counterparty. We currently estimate RNG volumes to be sold pursuant to this agreement to be approximately 2,370,000 MMbtu over the life of the agreement, provided that such amounts of RNG are produced by the EDL Facilities during that period.

Ohio Renewables additionally has contracted to sell a fixed-volume amount of RNG under a long-term agreement with an investment-grade utility beginning in 2025 and extending through 2044. Amounts to be delivered under this agreement are estimated to be 375,000 MMbtu in 2026, 1,950,000 MMbtu annually in 2027 through 2030, 2,325,000 MMbtu annually in 2031 through 2034, 2,775,000 MMbtu annually in years 2035 through 2043 and 1,513,770 MMbtu in 2044. Under the current contract,

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if less than 75% of the contracted volumes of RNG are not delivered on an annual basis, Ohio Renewables is obligated to pay the per MMbtu price for volumes between the amount delivered and 75% of the contracted volumes on an annual basis.

**<u>Short-Term Debt</u>**

At March 31, 2026, March 31, 2025 and December 31, 2025, short-term debt consisted of the following:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | March 31, 2026 | March 31, 2026 | March 31, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2025 |
| *In millions* | Balance Outstanding | Weighted Average Interest Rate<sup>(1)</sup> | Balance Outstanding | Weighted Average Interest Rate<sup>(1)</sup> | Balance Outstanding | Weighted Average Interest Rate<sup>(1)</sup> |
| Commercial Paper Borrowings - NW Holdings<sup>(2)</sup> | $171.3 | 4.1% | $— | —% | $162.0 | 4.1% |
| Commercial Paper Borrowings - NW Natural |  | —% |  | —% | 10.0 | 4.0% |
| NW Holdings Credit Agreement Loans |  | —% | 81.1 | 5.5% |  | —% |
| Total short-term debt | $171.3 |  | $81.1 |  | $172.0 |  |

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<sup>(1)</sup> Weighted average interest rate on outstanding short-term debt

<sup>(2)</sup> NW Holdings initiated a commercial paper program in March 2025.

**<u>Credit Agreements</u>**

<u>NW Holdings</u>

At March 31, 2026, NW Holdings had a $250 million credit agreement with a feature that allows NW Holdings to request increases to the total commitment amount up to a maximum of $350 million (subject to lender approval). The maturity date of the agreement is November 3, 2030 (or, if such day is not a business day, the immediately preceding business day), with available extensions of commitments for two additional one-year periods, subject to lender approval.

All lenders under the NW Holdings credit agreement are major financial institutions with committed balances and investment grade credit ratings as of March 31, 2026 as follows:

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| | |
|:---|:---|
| *In millions* |  |
| Lender rating, by category | Loan Commitment |
| AA/Aa | $194 |
| A/A1 | 56 |
| &nbsp;&nbsp;&nbsp;Total | $250 |

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NW Holdings did not have any outstanding balances drawn under the NW Holdings credit agreement at March 31, 2026 and at December 31, 2025. There was $81.1 million of outstanding balances under the NW Holdings agreement at March 31, 2025.

The NW Holdings credit agreement permits the issuance of letters of credit in an aggregate amount of up to $40 million. The principal amount of borrowings under the credit agreement is due and payable on the maturity date. The credit agreement requires NW Holdings to maintain a consolidated indebtedness to total capitalization ratio of 70% or less. Failure to comply with this covenant would entitle the lenders to terminate their lending commitments and accelerate the maturity of all amounts outstanding. NW Holdings was in compliance with this covenant at March 31, 2026 and 2025, with consolidated indebtedness to total capitalization ratios of 59.1% and 57.7%, respectively.

The NW Holdings credit agreement also requires NW Holdings to maintain debt ratings (which are defined by a formula using NW Natural's credit ratings in the event NW Holdings does not have a credit rating) with Standard & Poor's (S&P) and Moody's Investors Service, Inc. (Moody's) and notify the lenders of any change in its senior unsecured debt ratings or senior secured debt ratings, as applicable, by such rating agencies. A change in NW Holdings' debt ratings by S&P or Moody's is not an event of default, nor is the maintenance of a specific minimum level of debt rating a condition of drawing upon the credit agreement. Rather, interest rates on any loans outstanding under the credit agreements are tied to debt ratings and therefore, a change in the debt rating would increase or decrease the cost of any loans under the credit agreements when ratings are changed. See "*Credit Ratings*" below.

NW Holdings had no letters of credit issued and outstanding at March 31, 2026 and 2025.

<u>NW Natural</u>

At March 31, 2026, NW Natural had a $400 million credit agreement, with a feature that allows NW Natural to request increases in the total commitment amount, up to a maximum of $600 million, subject to lender approval. The maturity date of the agreement is November 3, 2030 (or, if such day is not a business day, the immediately preceding business day), with available extensions of commitments for two additional one-year periods, subject to lender approval.

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All lenders under the NW Natural credit agreement are major financial institutions with committed balances and investment grade credit ratings as of March 31, 2026 as follows:

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| | |
|:---|:---|
| *In millions* |  |
| Lender rating, by category | Loan Commitment |
| AA/Aa | $310 |
| A/A1 | 90 |
| &nbsp;&nbsp;&nbsp;Total | $400 |

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NW Natural did not have any outstanding balances drawn under the NW Natural credit agreement at March 31, 2026, March 31, 2025 and December 31, 2025.

The NW Natural credit agreement permits the issuance of letters of credit in an aggregate amount of up to $60 million. The principal amount of borrowings under the credit agreement is due and payable on the maturity date. The credit agreement requires NW Natural to maintain a consolidated indebtedness to total capitalization ratio of 70% or less. Failure to comply with this covenant would entitle the lenders to terminate their lending commitments and accelerate the maturity of all amounts outstanding. NW Natural was in compliance with this financial covenant at March 31, 2026 and 2025, with consolidated indebtedness to total capitalization ratios of 49.2% and 47.4%, respectively.

The NW Natural credit agreement also requires NW Natural to maintain credit ratings with S&P and Moody's and notify the lenders of any change in NW Natural's senior unsecured debt ratings or senior secured debt ratings, as applicable, by such rating agencies. A change in NW Natural's debt ratings by S&P or Moody's is not an event of default, nor is the maintenance of a specific minimum level of debt rating a condition of drawing upon the credit agreement. Rather, interest rates on any loans outstanding under the credit agreement are tied to debt ratings and therefore, a change in the debt rating would increase or decrease the cost of any loans under the credit agreement when ratings are changed. See "*Credit Ratings*" below.

NW Natural had no letters of credit issued and outstanding at March 31, 2026 and 2025.

<u>SiEnergy</u>

At March 31, 2026, SiEnergy Holding, LLC (SiEnergy Holdings) had a $75 million senior unsecured credit agreement, with a feature that allows SiEnergy to request increases in the total commitment amount, up to a maximum of $125 million, subject to lender approval. The maturity date of the SiEnergy Holdings credit agreement is November 3, 2030 (or, if such day is not a business day, the immediately preceding business day), with available extensions of commitments for two additional one-year periods, subject to lender approval. There were no outstanding balances under the SiEnergy agreement at March 31, 2026.

All lenders under the SiEnergy credit agreement are major financial institutions with committed balances and investment grade credit ratings as of March 31, 2026 as follows:

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| | |
|:---|:---|
| *In millions* |  |
| Lender rating, by category | Loan Commitment |
| AA/Aa | $75 |
| &nbsp;&nbsp;&nbsp;Total | $75 |

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The SiEnergy Holdings credit agreement permits the issuance of letters of credit in an aggregate amount of up to $20 million. SiEnergy had no letters of credit outstanding at March 31, 2026.

The SiEnergy Holdings credit agreement requires SiEnergy Holdings to comply, and to cause certain of its subsidiaries to comply, with various affirmative and negative covenants, including a financial covenant requiring SiEnergy Holdings to maintain a consolidated indebtedness to total capitalization ratio of 70% or less. Failure to comply with this or other applicable covenants or the occurrence of any other event of default, subject to, in certain instances, specified thresholds, cure periods and exceptions, would entitle the lenders to terminate their lending commitments and accelerate the maturity of all amounts outstanding. SiEnergy was in compliance with this covenant at March 31, 2026, with an indebtedness to total capitalization ratio of 32.3%.

The SiEnergy Holdings credit agreement also requires SiEnergy Holdings to maintain a credit rating with any one of S&P, Moody's or certain other rating organizations with respect to SiEnergy Holdings' senior, unsecured, non-credit enhanced long-term credit ratings (or, if such debt is not rated, corporate credit rating) and to notify the lenders of any change in such ratings by such rating agencies. A change in SiEnergy Holdings' credit ratings is not an event of default, nor is the maintenance of a specific minimum level of credit rating a condition of drawing upon the credit agreement. Rather, interest rates on any loans outstanding and certain fee amounts under the credit agreement are determined based upon SiEnergy Holdings' credit ratings with S&P and Moody's and therefore, a change in the credit rating may increase or decrease the cost of any loans and the amounts of certain fees under the credit agreement when ratings are changed. See "*Credit Ratings*" below.

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**<u>Letters of Credit Facilities</u>**

On January 5, 2024, NW Natural entered into an Uncommitted Letter of Credit and Reimbursement Agreement (2024 LC Reimbursement Agreement), between NW Natural, the lenders party thereto from time to time and Canadian Imperial Bank of Commerce, New York Branch as administrative agent (Administrative Agent), pursuant to which NW Natural agreed to reimburse each lender acting as an issuing bank (Issuing Bank) thereunder for disbursements in respect of letters of credit issued pursuant to the LC Reimbursement Agreement from time to time. On May 1, 2026, NW Natural entered into a Reimbursement Agreement and Continuing Indemnity Relating to Standby Letters of Credit/Letters of Guarantee (2026 LC Reimbursement Agreement, and together with the 2024 LC Reimbursement Agreement, the LC Reimbursement Agreements), between NW Natural and The Toronto-Dominion Bank, New York Branch (TD Bank), pursuant to which NW Natural agreed to reimburse TD Bank for disbursements in respect of letters of credit issued pursuant to the 2026 LC Reimbursement Agreement from time to time.

Under the 2024 LC Reimbursement Agreement, there is no expressly stated maximum amount of letters of credit that can be issued or outstanding under the LC Facility created thereby. The 2026 LC Reimbursement Agreement provides that the aggregate undrawn face amount of letters of credit issued thereunder may not exceed $100 million. Regulatory approval from the OPUC provides that the aggregate sum of letters of credit available to be drawn under the LC Reimbursement Agreements may not exceed $250 million at any one time. The Issuing Banks have no commitment to issue letters of credit under either LC Facility and will have the sole discretion to limit and condition the terms for the issuance of letters of credit (including maximum face amounts).

The 2024 LC Reimbursement Agreement requires NW Natural to maintain certain ratings with S&P and Moody's. NW Natural must also notify the Administrative Agent and the lenders under the 2024 LC Reimbursement Agreement of any change in the S&P or Moody's Ratings, although any such change is not an event of default.

The 2024 LC Reimbursement Agreement prohibits NW Natural from permitting Consolidated Indebtedness to be greater than 70% of Total Capitalization, each as defined therein and calculated as of the end of each fiscal quarter of NW Natural. Failure to comply with this financial covenant would constitute an Event of Default under the 2024 LC Reimbursement Agreement. Further, each of the LC Reimbursement Agreements is cross-defaulted to NW Natural's Amended and Restated Credit Agreement. The occurrence of these or any other Event of Default (as defined in the applicable LC reimbursement Agreement) would entitle the Administrative Agent or TD Bank, as applicable, to require cash collateral for the LC Exposure, as defined in the 2024 LC

Reimbursement Agreement, or Obligations, as defined in the 2026 LC Reimbursement Agreement, and to exercise all other rights and remedies available under the applicable LC Reimbursement Agreement and under applicable law.

There were no letter of credits issued or outstanding under the 2024 LC Reimbursement Agreement at March 31, 2026.

**<u>Credit Ratings</u>**

NW Holdings credit ratings are a factor of liquidity, potentially affecting access to the capital markets. NW Natural and SiEnergy's credit ratings also have an impact on the cost of funds.

The following table summarized NW Holdings' current credit ratings:

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| | |
|:---|:---|
| | S&P |
| Commercial paper (short-term debt) | A-2 |
| Junior subordinated debentures | BBB |
| Issuer credit rating | A- |
| Ratings outlook | Stable |

---

The following table summarizes NW Natural's current credit ratings:

---

| | | |
|:---|:---|:---|
| | S&P | Moody's |
| Commercial paper (short-term debt) | A-1 | P-2 |
| Senior secured (long-term debt) | AA- | A2 |
| Senior unsecured (long-term debt) | n/a | Baa1 |
| Issuer credit rating | A+ | n/a |
| Ratings outlook | Stable | Stable |

---

------

The following table summarizes SiEnergy's current credit ratings:

---

| | |
|:---|:---|
| | S&P |
| Issuer credit rating (SiEnergy Holding, LLC, formerly Si Investment Co., LLC) | BBB+ |
| Issuer credit rating (SiEnergy Gas, LLC, formerly SiEnergy, L.P.) | BBB+ |
| Senior secured notes (SiEnergy Gas, LLC, formerly SiEnergy, L.P.) | A |
| Ratings outlook | Stable |

---

The above credit ratings and ratings outlook are dependent upon a number of factors, both qualitative and quantitative, and are subject to change at any time. The disclosure of or reference to these credit ratings is not a recommendation to buy, sell or hold NW Holdings or NW Natural securities. Each rating should be evaluated independently of any other rating.

As part of the ring-fencing conditions agreed upon with the OPUC and WUTC in connection with the holding company reorganization, NW Holdings and NW Natural are required to maintain separate credit ratings, long-term debt ratings, and preferred stock ratings, if any.

**<u>Long-Term Debt</u>**

At March 31, 2026, March 31, 2025 and December 31, 2025, NW Holdings' long-term debt consisted of the following:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | March 31, 2026 | March 31, 2026 | March 31, 2025 | March 31, 2025 | December 31, 2025 | December 31, 2025 |
| *In millions* | Balance Outstanding | Weighted Average Interest Rate<sup>(1)</sup> | Balance Outstanding | Weighted Average Interest Rate<sup>(1)</sup> | Balance Outstanding | Weighted Average Interest Rate<sup>(2)</sup> |
| NW Natural first mortgage bonds | $1544.7 | 4.7% | $1374.7 | 4.6% | $1544.7 | 4.7% |
| SiEnergy term loan<sup>(3)</sup> |  | —% | 149.6 | 6.1% |  | —% |
| SiEnergy secured senior notes | 185.0 | 5.6% |  | —% | 185.0 | 5.6% |
| NWN Water term loan | 55.0 | 4.7% | 55.0 | 4.7% | 55.0 | 4.7% |
| Other water debt | 3.9 |  | 5.0 |  | 4.0 |  |
| NW Holdings unsecured senior bonds | 285.0 | 5.7% | 285.0 | 5.7% | 285.0 | 5.7% |
| NW Holdings term loan | 50.0 | 4.7% | 50.0 | 5.3% | 50.0 | 5.2% |
| NW Holdings junior subordinated debentures | 325.0 | 7.0% | 325.0 | 7.0% | 325.0 | 7.0% |
| Long-term debt, gross | 2448.6 |  | 2244.3 |  | 2448.7 |  |
| &nbsp;&nbsp;Less: unamortized debt issuance costs | 15.5 |  | 14.4 |  | 15.9 |  |
| &nbsp;&nbsp;&nbsp;Less: current maturities | 160.7 |  | 36.8 |  | 160.6 |  |
| Total long-term debt | $2272.4 |  | $2193.1 |  | $2272.2 |  |

---

<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Weighted average interest rate for the three months ended March 31, 2026 and March 31, 2025

<sup>(2)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Weighted average interest rate for the year ended December 31, 2025

<sup>(3)</sup> &nbsp;&nbsp;&nbsp;&nbsp;On January 7, 2025, NW Holdings acquired SiEnergy. SiEnergy's subsidiary, Si Investment Co., had this existing term loan outstanding at the date of acquisition. In August 2025, the associated facilities were terminated and are no longer available for financing.

NW Natural's first mortgage bonds (FMBs) have maturity dates ranging from 2026 through 2055 and interest rates ranging from 2.82% to 7.85%. SiEnergy's secured senior notes have maturity dates ranging from 2030 through 2055 and interest rates ranging from 4.86% to 6.04%. NW Holdings' unsecured senior bonds have maturity dates ranging from 2028 through 2034 and interest rates ranging from 5.52% to 5.86%. NW Holdings' Junior Subordinated Debentures has an interest rate of 7.0% and a maturity date of 2055. At March 31, 2026, NW Holdings and NW Natural had long-term debt outstanding of $2,433.1 million and $1,535.1 million, respectively, which included $15.5 million and $9.6 million of unamortized debt issuance costs at NW Holdings and NW Natural, respectively. Debt of $160.7 million is scheduled to mature in the next twelve months, which consists of $55.0 million at NW Natural, $55.7 million at NWN Water, and $50.0 million at NW Holdings. See Part II, Item 7, "Financial Condition—*Long-Term Debt*" in the 2025 Form 10-K for long-term debt maturing over the next five years.

**<u>Summary of Significant Debt Issuances</u>**

There were no new debt issuances in the first quarter of 2026 at either NW Natural or NW Holdings.

**<u>Summary of Significant Debt Extinguishments and Repayments</u>**

There were no significant debt retirements in the first quarter of 2026 at either NW Natural or NW Holdings.

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<u>NWN Water Interest Rate Swap Agreement</u>

In January 2023, NWN Water entered into an interest rate swap agreement with a major financial institution for $55.0 million that effectively converted variable-rate debt to a fixed rate of 3.8%. Interest payments made between the effective date and expiration date are hedged by the swap agreement. The interest rate swap agreement expires in June 2026, along with the variable-rate debt.

**<u>Bankruptcy Ring-fencing Restrictions</u>**

As part of the ring-fencing conditions agreed upon with the OPUC and WUTC, NW Natural is required to have one director who is independent from NW Natural management and from NW Holdings and to issue one share of NW Natural preferred stock to an independent third party. NW Natural was in compliance with both of these ring-fencing provisions as of March 31, 2026. NW Natural may file a voluntary petition for bankruptcy only if approved unanimously by the Board of Directors of NW Natural, including the independent director, and by the holder of the preferred share.

**<u>Contingent Liabilities</u>**

Loss contingencies are recorded as liabilities when it is probable a liability has been incurred and the amount of the loss is reasonably estimable in accordance with accounting standards for contingencies. See "*Application of Critical Accounting Policies and Estimates*" in the 2025 Form 10-K. At March 31, 2026, NW Natural's total estimated liability related to environmental sites is $368.1 million. See "Results of Operations—Regulatory Matters—Rate Mechanisms—*Environmental Cost Deferral and Recovery*" in the 2025 Form 10-K and Note 17.

***APPLICATION OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES***

In preparing financial statements in accordance with U.S. GAAP, management exercises judgment to assess the potential outcomes and related accounting impacts in the selection and application of accounting principles, including making estimates and assumptions that affect reported amounts of assets, liabilities, revenues, expenses, and related disclosures in the financial statements. Management considers critical accounting policies to be those which are most important to the representation of financial condition and results of operations and which require management's most difficult and subjective or complex judgments, including accounting estimates that could result in materially different amounts if reported under different conditions or if they used different assumptions. Our most critical estimates and judgments for both NW Holdings and NW Natural include accounting for:

• regulatory accounting;

• revenue recognition;

• derivative instruments and hedging activities;

• pensions and postretirement benefits;

• income taxes;

• environmental contingencies; and

• impairment of long-lived assets and goodwill.

There have been no material changes to the information provided in the 2025 Form 10-K with respect to the application of critical accounting policies and estimates. See Part II, Item 7, "*Application of Critical Accounting Policies and Estimates,*" in the 2025 Form 10-K.

Management has discussed its current estimates and judgments used in the application of critical accounting policies with the Audit Committees of the Boards of NW Holdings and NW Natural. Within the context of critical accounting policies and estimates, management is not aware of any reasonably likely events or circumstances that would result in materially different amounts being reported. For a description of recent accounting pronouncements that could have an impact on financial condition, results of operations or cash flows, see Note 2.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

NW Holdings and NW Natural are exposed to various forms of market risk including commodity supply risk, commodity price risk, interest rate risk, foreign currency risk, credit risk and weather risk. Management monitors and manages these financial exposures as an integral part of NW Holdings' and NW Natural's overall risk management program. No material changes have occurred related to disclosures about market risk for the three months ended March 31, 2026. For additional information, see Part II, Item 1A, "*Risk Factors*" in this report and Part II, Item 7A, "*Quantitative and Qualitative Disclosures about Market Risk*" in the 2025 Form 10-K.

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

NW Holdings and NW Natural management, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer, completed an evaluation of the effectiveness of the design and operation of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange

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Act)). Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer of each registrant have concluded that, as of the end of the period covered by this report, disclosure controls and procedures were effective to ensure that information required to be disclosed by each such registrant and included in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms and that such information is accumulated and communicated to management of each registrant, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control Over Financial Reporting

NW Holdings and NW Natural management are responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f).

There were no changes in NW Holdings' or NW Natural's internal control over financial reporting during the quarter ended March 31, 2026, that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting for NW Holdings and NW Natural.

The statements contained in Exhibit 31.1, Exhibit 31.2, Exhibit 31.3, and Exhibit 31.4 should be considered in light of, and read together with, the information set forth in this Item 4(b).

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Other than the proceedings disclosed in Note 17 to our unaudited condensed consolidated financial statements included in Part I, Item 1 and those proceedings disclosed in Part I, Item 3, "*Legal Proceedings*" in the 2025 Form 10-K, which are incorporated by reference, we have only nonmaterial litigation, or litigation that occurs in the ordinary course of our business.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, "Risk Factors" in the 2025 Form 10-K, which could materially affect our business, financial condition, or results of operations.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table provides information about purchases of NW Holdings' equity securities that are registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, during the quarter ended March 31, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
| <u>Issuer Purchases of Equity Securities</u> | <u>Issuer Purchases of Equity Securities</u> | <u>Issuer Purchases of Equity Securities</u> | <u>Issuer Purchases of Equity Securities</u> | <u>Issuer Purchases of Equity Securities</u> |
| Period | Total Number<br>of Shares Purchased<sup>(1)</sup> | Average<br>Price Paid per Share | Total Number of Shares<br>Purchased as Part of<br>Publicly Announced Plans or Programs<sup>(2)</sup> | Maximum Dollar Value of<br>Shares that May Yet Be<br>Purchased Under the Plans or Programs<sup>(2)</sup> |
| Balance forward |  |  | 2124528 | $150000000 |
| &nbsp;&nbsp;01/01/26-01/31/26 |  |  |  |  |
| &nbsp;&nbsp;02/01/26-02/28/26 |  |  |  |  |
| &nbsp;&nbsp;03/01/26-03/31/26 |  |  |  |  |
| Total |  | $— | 2124528 | $150000000 |

---

<sup>(1)</sup> During the quarter ended March 31, 2026, no shares of common stock were purchased on the open market to meet the requirements of NW Holdings' Dividend Reinvestment and Direct Stock Purchase Plan. During the quarter ended March 31, 2026, no shares of NW Holdings common stock were purchased on the open market to meet the requirements of share-based compensation programs.

<sup>(2)</sup> During the quarter ended March 31, 2026, no shares of NW Holdings common stock were repurchased pursuant to the Board-approved share repurchase program. On May 29, 2024, NW Holdings disclosed that effective May 23, 2024, NW Holdings' Board authorized a new share repurchase program under which NW Holdings may repurchase in open market or privately negotiated transactions up to an aggregate of 5 million shares or an amount not to exceed $150 million. The new share repurchase program is authorized to continue until the program is used, terminated or replaced. The repurchase program replaces the Company's previously authorized share repurchase program, which commenced in 2000 and authorized the repurchase of up to 2.8 million shares, or an amount not to exceed $100 million, in the aggregate. For more information on our repurchase program, refer to Note 5 in the 2025 Form 10-K.

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ITEM 5. OTHER INFORMATION

**<u>LC Reimbursement Facility</u>**

The following disclosure is intended to satisfy any obligation to provide disclosures pursuant to Item 1.01 and 2.03 of Form 8-K.

On May 1, 2026, NW Natural entered into a Reimbursement Agreement and Continuing Indemnity Relating to Standby Letters of Credit/Letters of Guarantee (LC Reimbursement Agreement), between NW Natural and The Toronto-Dominion Bank, New York Branch (TD Bank), pursuant to which NW Natural agreed to reimburse TD Bank for disbursements in respect of letters of credit issued pursuant to the LC Reimbursement Agreement from time to time.

The 2026 LC Reimbursement Agreement provides that the aggregate undrawn face amount of letters of credit issued thereunder may not exceed $100 million.

Drawings under letters of credit issued under the LC Facility are required to be reimbursed by NW Natural on the date that NW Natural is notified thereof or, in certain cases, on the next business day. If NW Natural does not reimburse a drawing when due, its reimbursement obligation accrues interest at Standard Overnight Financing Rate plus 2.00% per annum.

TD Bank has no commitment to issue letters of credit under the LC Facility and has the discretion to limit and condition the terms for the issuance of letters of credit (including maximum face amounts) in its sole discretion. The LC Reimbursement Agreement does not have a specified term. NW Natural or TD Bank may terminate the LC Facility at any time in their sole discretion.

Obligations of NW Natural under the LC Reimbursement Agreement are unsecured and rank pari passu with NW Natural's other senior unsecured indebtedness, although NW Natural (a) granted to the agent or lenders party to the LC Reimbursement Agreement and certain of their affiliates certain setoff rights and (b) agreed to provide cash collateral (with respect to which NW Natural grants a security interest) after the occurrence of an event of default, in each case, as described further in the LC Reimbursement Agreement.

The LC Reimbursement Agreement is cross-defaulted to NW Natural's Amended and Restated Credit Agreement, dated as of November 3, 2025, among NW Natural, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. The occurrence of these or any other Event of Default (as defined in the LC Reimbursement Agreement) would entitle TD Bank to require cash collateral for the Obligations, as defined in the LC Reimbursement Agreement, and to exercise all other rights and remedies available under the applicable LC Reimbursement Agreement and under applicable law.

The foregoing description of the LC Facility does not purport to be complete and is qualified in its entirety by reference to the LC Reimbursement Agreement, a copy of which is attached as Exhibit 10.1 to this Quarterly Report on Form 10-Q and is incorporated herein by reference.

**<u>Rule 10b5-1 Trading Arrangements</u>**

From time to time, our officers (as defined in Rule 16a-1(f) of the Exchange Act) and directors may enter into Rule 10b5-1 or non-Rule 10b5-1 trading arrangements (as each such term is defined in Item 408 of Regulation S-K).

On March 27, 2026, David H. Anderson, Director of NW Holdings and NW Natural, adopted a Rule 10b5-1 trading arrangement for the sale of shares of NW Holdings' common stock, which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. Mr. Anderson's Rule 10b5-1 trading arrangement provides for the potential sale of up to 33,000 shares of NW Holdings' common stock between June 26, 2026 and June 17, 2027, subject to conditions set forth in the arrangement, and so long as the market price of NW Holdings' common stock is higher than certain minimum threshold prices specified in Mr. Anderson's Rule 10b5-1 trading arrangement.

As previously disclosed, Mr. Anderson retired as CEO of NW Holdings and NW Natural, effective April 1, 2025. Mr. Anderson currently holds over seven times the $450,000 stock ownership requirement for non-management directors. This trading arrangement allows Mr. Anderson to periodically sell a portion of his NW Holdings common stock to diversify his holdings in connection with his retirement as CEO.

Except as described above, during the three months ended March 31, 2026, none of our other officers or directors adopted or terminated any such trading arrangements.

ITEM 6. EXHIBITS

See the Exhibit Index below, which is incorporated by reference herein.

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**NORTHWEST NATURAL GAS COMPANY**

**NORTHWEST NATURAL HOLDING COMPANY**

Exhibit Index to Quarterly Report on Form 10-Q

For the Quarter Ended March 31, 2026

---

| | |
|:---|:---|
| **<u>Exhibit Index</u>** | **<u>Exhibit Index</u>** |
| **<u>Exhibit Number</u>**  | **<u>Document</u>** |
| 10.1 | <u>[Reimbursement Agreement and Continuing Indemnity Related to Standby Letters of Credit/Letters of Guarantee, dated May 1, 2026, between NW Natural and the Toronto-Dominion Bank, New York Branch.](ex101nwn-reimbursementagre.htm)</u> |
| \*10.2 | <u>[2026 Executive Annual I](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10t-executiveannu.htm)[ncentive Plan, effective January 1, 2026 (incorporated by reference to Exhibit 10t to Form](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10t-executiveannu.htm)[10-K for the fiscal year ended December 31](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10t-executiveannu.htm)[, 2025](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10t-executiveannu.htm)[, File No. 1-15973).](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10t-executiveannu.htm)</u> |
| \*10.3 | <u>[Form of Performance Share Long Term Incentive Agreement Under Long Term Incentive Plan](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10ee-redactedxformo.htm)[(2026-2028)](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10ee-redactedxformo.htm)[(incorporated by reference to Exhibit 10ee to Form 10-K for the fiscal year ended December 31, 2025, File No. 1-](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10ee-redactedxformo.htm)[3](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10ee-redactedxformo.htm)[8681](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10ee-redactedxformo.htm)[).](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10ee-redactedxformo.htm)</u> |
| \*10.4 | <u>[Form o](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10hhformof2026rsuag.htm)[f](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10hhformof2026rsuag.htm)[Restricted Stock Unit Agreement](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10hhformof2026rsuag.htm)[Under Long Term Incentive Plan](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10hhformof2026rsuag.htm)[(20](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10hhformof2026rsuag.htm)[26)](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10hhformof2026rsuag.htm)[(incorporated by reference to Exhibit 10hh to Form 10-K for the fiscal year ended December 31, 2025, File No. 1-38681).](https://www.sec.gov/Archives/edgar/data/73020/000173399826000012/exhibit10hhformof2026rsuag.htm)</u> |
| 31.1 | <u>[Certification of Principal Executive Officer of Northwest Natural Gas Company Pursuant to Rule 13a-14(a)/15-d-14(a), Section 302 of the Sarbanes-Oxley Act of 2002.](ex3112026q1.htm)</u> |
| 31.2 | <u>[Certification of Principal Financial Officer of Northwest Natural Gas Company Pursuant to Rule 13a-14(a)/15-d-14(a), Section 302 of the Sarbanes-Oxley Act of 2002.](ex3122026q1.htm)</u> |
| 31.3 | <u>[Certification of Principal Executive Officer of Northwest Natural Holding Company Pursuant to Rule 13a-14(a)/15-d-14(a), Section 302 of the Sarbanes-Oxley Act of 2002.](ex3132026q1.htm)</u> |
| 31.4 | <u>[Certification of Principal Financial Officer of Northwest Natural Holding Company Pursuant to Rule 13a-14(a)/15-d-14(a), Section 302 of the Sarbanes-Oxley Act of 2002.](ex3142026q1.htm)</u> |
| \*\*32.1 | <u>[Certification of Principal Executive Officer and Principal Financial Officer of Northwest Natural Gas Company Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex3212026q1.htm)</u> |
| \*\*32.2 | <u>[Certification of Principal Executive Officer and Principal Financial Officer of Northwest Natural Holding Company Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex3222026q1.htm)</u> |
| 101 | The following materials formatted in Inline Extensible Business Reporting Language (Inline XBRL):<br>(i) Consolidated Statements of Income;<br>(ii) Consolidated Balance Sheets;<br>(iii) Consolidated Statements of Cash Flows; and<br>(iv) Related notes.<br>The instance document does not appear in the interactive data file because XBRL tags are embedded within the Inline XBRL document. |
| 104 | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in Inline XBRL. |

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\*&nbsp;&nbsp;&nbsp;&nbsp;Incorporated by reference as indicated.

\*\*&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to Item 601(b)(32)(ii) of Regulation S-K, this certification is furnished and not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature for each undersigned company shall be deemed to relate only to matters having reference to such company and its subsidiaries.

**NORTHWEST NATURAL GAS COMPANY**

(Registrant)

---

| | | |
|:---|:---|:---|
| Dated: | May 6, 2026 | |
| | | /s/ Brody J. Wilson |
| | | Brody J. Wilson |
| | | Principal Accounting Officer |
| | | Vice President, Treasurer, Chief Accounting Officer and Controller |

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**NORTHWEST NATURAL HOLDING COMPANY**

(Registrant)

---

| | | |
|:---|:---|:---|
| Dated: | May 6, 2026 | |
| | | /s/ Brody J. Wilson |
| | | Brody J. Wilson |
| | | Principal Accounting Officer |
| | | Vice President, Treasurer, Chief Accounting Officer and Controller |

---

## Exhibit 10.1

Exhibit 10.1

**<u>REIMBURSEMENT AGREEMENT AND</u>**

**<u>CONTINUING INDEMNITY RELATING TO</u>**

**<u>STANDBY LETTERS OF CREDIT/LETTERS OF GUARANTEE</u>**

Dated May 1, 2026

IN CONSIDERATION of The Toronto-Dominion Bank, New York Branch ("<u>Bank</u>") issuing or amending, in its sole discretion from time to time, its Irrevocable Standby Letter of Credit or Irrevocable Letter of Guarantee in an aggregate undrawn face amount not to exceed $100,000,000 at any time outstanding (including any counter guarantee or supporting letter of credit issued by Bank, each individually a "<u>Credit</u>" and collectively "<u>Credits</u>"), which Northwest Natural Gas Company, an Oregon corporation ("<u>Applicant</u>"), has requested Bank to issue pursuant to the written application of Applicant (the "<u>Application</u>"), including, if applicable, requesting another institution to issue its irrevocable standby letter of credit or irrevocable letter of guarantee against Bank's Credit, Applicant hereby agrees with Bank as follows:

1. Applicant shall reimburse Bank on the business day demanded, if demand is made not later than 12:00 noon, New York City time on a business day, or otherwise, on or before the business day following demand, and in immediately available funds at Bank's Toronto, Ontario branch office at 55 King St. W., Toronto, ON M5K 1A2 (or such other office or address as Bank shall direct in writing) the amount of each Drawing (as defined below) paid or to be paid by Bank pursuant to a Drawing under a Credit. In this Agreement, "<u>Drawing</u>" means any demand or other request for payment under a Credit or any draft, bill of exchange or other instrument presented for payment under a Credit, including in electronic format, in each case in substantial compliance with the requirements of the Credit and includes any payment of the proceeds of a Drawing into court, to the credit of the outcome of any action or proceeding, or as otherwise required by applicable law. Each reimbursement or prepayment by Applicant under this paragraph shall be made, at Bank's option, either in the U.S. Dollar equivalent of the amount of each Drawing paid or to be paid by Bank, or in the currency in which Bank is to make, has made, or may be called upon to make payment under the Credit. If a time draft is presented or a deferred payment obligation is incurred in respect of a Drawing under a Credit, Bank may notify Applicant of the amount and maturity date of such time draft or deferred payment obligation and Applicant will make payment in respect thereof without demand sufficiently in advance of its maturity to enable Bank to arrange for cover in same day funds to reach the place where the time draft or deferred payment obligation is payable no later than the date of maturity of such time draft or deferred payment obligation.

2. The obligation of Applicant to reimburse Bank in accordance with paragraph 1 shall be absolute, unconditional and irrevocable and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and shall not be reduced by any Drawing paid or acted upon being invalid, insufficient, inaccurate, false, fraudulent or forged or being subject to any defense or being affected by any right of set-off, counterclaim or recoupment which Applicant may now or hereafter have against the Beneficiary (as defined below) or any other Person. In this Agreement "<u>Beneficiary</u>" means the party in favor of whom or which Applicant has requested Bank to issue the Credit, and in the case of a transferable Credit, each transferee, and, in each case, any successor of a Beneficiary by operation of law.

3. Any payment, action, inaction, or omission, made, taken or suffered by Bank or any of Bank's correspondents under or in connection with a Credit or any Drawing made thereunder, if taken or suffered without gross negligence or willful misconduct on the part of Bank, shall be binding upon Applicant and shall not place Bank or any of its correspondents under any resulting liability to Applicant. Without limiting the generality of, but subject to, the foregoing, Bank and its correspondents (a) may receive, accept or pay as complying with the terms of a Credit, any Drawing thereunder that appears on its face to substantially comply with the terms and conditions of such Credit, including any such Drawing otherwise in order which may be signed by, or issued to, the administrator or any executor or liquidator for succession purposes of, or the trustee in bankruptcy of, or the receiver for any property of, or other person or entity acting as the representative or in the place of, the

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Beneficiary thereof or its successors or may be received in electronic form, (b) may purchase or discount any accepted Drawing or deferred payment obligation incurred under a Credit without affecting the amount or timing of the reimbursement due from Applicant, (c) unless otherwise specified in a Credit, may make any payment thereunder by any means it chooses, including by wire transfer of immediately available funds, (d) may issue a Letter of Guarantee in lieu of a Standby Letter of Credit or may issue a Standby Letter of Credit in lieu of a Letter of Guarantee, (e) may choose Bank or any affiliate or branch thereof or any other financial institution to act as advising, transferring, confirming and/or nominated bank under the law and practice of the place where it is located, including causing any such entity to issue a standby letter of credit or letter of guarantee against Bank's Credit (in each case if requested or authorized in the applicable Application), (f) shall not be liable for any act or omission of any of its correspondents, (g) may rely upon any electronic, written or other communication reasonably believed to have been authorized by Applicant and shall not be liable for errors, omissions, interruptions or delays in transmission or delivery of any message, advice or document in connection with a Credit, whether transmitted by courier, mail, or any telecommunication, electronically or otherwise (whether or not they be encrypted), or for errors in interpretation of technical terms or in translation (and Bank may transmit Credit terms without translating them), (h) if a Credit by its terms requires presentation of a draft but no form of draft is attached thereto, may accept as a draft any written or electronic demand or request for payment under such Credit, (i) may disregard any requirement that any draft or other Drawing under a Credit bear any particular reference to such Credit, (j) may amend a Credit to reflect any change of address or other contact information of any Beneficiary, (k) may replace a purportedly lost, stolen or destroyed original Credit with a replacement marked as such or waive a requirement for its presentation, and (l) shall not be responsible for any other action or inaction taken or suffered by Bank under or in connection with a Credit that is required or permitted under any applicable domestic or foreign law or letter of credit or letter of guarantee practice. None of the circumstances described in this paragraph 3 or paragraph 4, below, shall impair Bank's rights and remedies against Applicant or place Bank under any liability to Applicant. In addition, no party hereto shall be liable to the other in contract, tort, or otherwise for any punitive, exemplary, consequential, indirect or special damages (including, solely in the case of the Bank, for any consequences of forgery or fraud by any Beneficiary or any other Person), relating to any Credit or other transactions contemplated by this Agreement; <u>provided</u> <u>that</u> nothing in this sentence shall relieve Applicant of any obligation it may have to reimburse or indemnify Bank or any other indemnitee hereunder for and against (i) any such punitive, exemplary, consequential, indirect or special damages asserted by a third party, (ii) reasonable attorneys' fees and disbursements, or (iii) any future taxes, levies, imposts, deductions, charges, withholdings and related liabilities in connection with any Credit, excluding any income or franchise tax.

4. Without limiting, but subject to, paragraph 3 hereof, in connection with any Credit issued subject to URDG (as defined below), Bank and its correspondents, (a) may honor a Drawing thereunder even where such Drawing is not supported by a statement indicating in what respect Applicant or any other applicable Person is in breach of its obligations under any underlying agreement or transaction, unless such Credit expressly requires presentation of such supporting statement (and regardless of whether such Credit expressly excludes any URDG requirement for such a supporting statement), (b) in the case of a Drawing under a Credit that does not otherwise specify the relevant timing, shall be deemed (i) to have timely paid if it pays within one business day after determining that such Drawing is complying or (ii) to have timely refused to pay if it gives notice of rejection of such Drawing not later than the close of the fifth business day following the day of presentation of such Drawing, and (c) shall be deemed to have timely informed the "instructing party" (as such term is defined in the URDG) of any Drawing thereunder and of any request to extend the expiry of such Credit if it so informs such instructing party within three business days following Bank's receipt of such Drawing or request.

5. Applicant authorizes Bank to pay on demand any Drawing that appears on its face to substantially comply with the terms and conditions of the applicable Credit and to make such payment in such currency as Bank may determine to be appropriate. Applicant agrees to pay Bank (a) an issuance fee in respect of each

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Credit (so long as Bank shall be contingently obligated under such Credit) in an amount equal to 0.65% (unless otherwise agreed by the parties in writing (in the case of Applicant, as permitted by any required governmental consent or order)) per annum multiplied by the average undrawn stated amount of such Credit (with minimum $300 per annum per Credit), and (b) all customary administrative fees and charges for issuing or amending each Credit computed and payable at such time and at such rates as and in accordance with Bank's prevailing practice and all other costs and expenses which Bank may incur in connection with each Credit including charges and expenses of other banks or other parties paid or to be paid by Bank on behalf of Applicant. Any such payment by Bank shall be made without reference to or confirmation of Applicant. Moreover, Applicant will pay to Bank interest on all amounts not paid by Applicant when due under this Agreement at a rate per annum equal to SOFR plus 2% per annum, calculated daily on the basis of a calendar year for the actual number of days elapsed, with interest on overdue interest at the same rate as on the principal. If any payment from Applicant shall be due on a day that is not a business day, such payment shall instead be due on the next business day and interest shall be paid for each additional day elapsed. In no event shall any interest rate calculated hereunder exceed the maximum rate permitted by applicable law (including under any required governmental consent or order).

6. Bank may demand, after the occurrence of an Event of Default that is continuing, that Applicant provide to Bank cash collateral in an amount equal to the aggregate undrawn amount of all outstanding Credits at such time. If Bank so demands, Applicant shall promptly, and in any event within three business days after such demand, pay to Bank, in immediately available funds to an account with Bank designated by Bank, the amount of such cash collateral. To secure all present and future obligations of Applicant under this Agreement and in respect of each Credit, whether due or to become due, absolute or contingent, matured or unmatured, joint, several or independent, including interest accruing at the rate provided in this Agreement on or after the commencement of any bankruptcy or insolvency proceeding in respect of Applicant, whether or not such interest is allowed or allowable (the "<u>Obligations</u>") now or hereafter owed by Applicant to Bank, Applicant hereby grants to Bank a lien on and security interest in all of Applicant's present and future right, title and interest in, to and under (a) the cash collateral, (b) the account with Bank in which it is held (including any subaccounts or segregated accounts thereunder and any successor or replacement accounts), (c) any and all other deposits (whether general or special, time or demand, provisional or final) at any time held by Bank or any of its affiliates to or for the credit or the account of Applicant (collectively, "<u>Deposits</u>"), and (d) all proceeds and products of any of the property described in the foregoing clauses (a), (b), and (c) (collectively, the "<u>Collateral</u>"). This lien on and security interest in the Collateral shall remain in effect until Bank's liability under each Credit is extinguished and all Obligations have been paid in full. Applicant will, upon request from time to time and at its expense, sign any document and take any other action as Bank may reasonably request to perfect and maintain the priority of Bank's lien on and security interest in the Collateral and to realize upon Bank's rights and remedies as secured party; provided, that Bank shall not file any UCC financing statement naming Applicant as debtor unless and until after an Event of Default has occurred and while the same is continuing.

7. Upon the occurrence and continuation of any one or more of the following events (each an "<u>Event of</u> <u>Default</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)the failure of Applicant (i) to reimburse any Drawing under a Credit or (ii) pay any other monetary obligation of Applicant under this Agreement, in each case, within five business days after such obligation becomes due under the terms of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)the failure of Applicant to perform or observe any term or covenant hereof (not otherwise an Event of Default hereunder) and such failure remains unremedied for 30 days following notice of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Applicant's breach in any material respect of any representation or warranty made herein or in any Application;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)(i) the failure of Applicant to pay its debts generally as they become due or the admission in writing by Applicant of its inability to pay its debts generally as they become due, (ii) Applicant's making an assignment for the benefit of creditors, (iii) the institution by Applicant of any proceeding respecting bankruptcy, insolvency, liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, composition of it or its debts under any laws relating to bankruptcy, insolvency or reorganization or relief of debtors or the seeking by Applicant of entry of an order for relief or the appointment of a receiver, trustee or other similar official for Applicant or for any substantial part of its property, or the filing by Applicant of an answer admitting the material allegations of a petition filed against it in any proceeding described in paragraph 7(d)(iv), or Applicant shall take any action for the purpose of effecting any of the foregoing, or (iv) the institution against Applicant of any proceeding respecting bankruptcy, insolvency, liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, composition of it or its debts under any laws relating to bankruptcy, insolvency or reorganization or relief of debtors or seeking the appointment of a receiver, trustee or other similar official for Applicant or for any substantial part of its property, and any such proceeding referred to in this paragraph 7(d)(iv) shall be unstayed and in effect for more than 60 days, or an order for relief shall be entered therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)Applicant's dissolution or termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f)Applicant's (i) merger or consolidation with any third party unless Applicant is the survivor, (ii) division into two or more Persons, or (iii) sale, lease or other conveyance of all or substantially all of its assets or business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g)the occurrence of any "Change in Control", as defined in that certain Second Amended and Restated Credit Agreement dated November 3, 2025 among Applicant, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto, as amended, restated or otherwise modified from time to time (the "<u>Credit Agreement</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h)Applicant's repudiation in writing of, or assertion of the unenforceability of any material provision of, this Agreement or any separate security agreement or other agreement or undertaking of Applicant supporting this Agreement, or any court or other governmental authority shall issue any order, ruling or determination that this Agreement or such other agreement or undertaking is not in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Applicant shall fail to make any payment in respect of "Indebtedness", as defined in the Credit Agreement, having singly or in the aggregate an outstanding amount in excess of $50 million when due or within any applicable grace period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j)a final judgment for the payment of money exceeding an aggregate of $15 million shall be rendered or entered against the Applicant and the same shall remain undischarged for a period of 60 days during which execution shall not be effectively stayed or contested in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k)the occurrence of any of the events noted in this paragraph 7 with respect to any Person which may from time to time (and only during such time) guarantee or provide collateral security in respect of any Obligations of Applicant to Bank, if applicable; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l)without limiting any other Event of Default hereunder, the occurrence of an "Event of Default" under the Credit Agreement;

then Bank may require cash collateral as described in paragraph 6, above; provided that if any Event of Default described in paragraph 7(d) shall occur and be continuing, then such cash collateral and all other Obligations shall become due and payable automatically and immediately.

Applicant irrevocably confirms that Bank and each of its affiliates are hereby authorized, from and after the occurrence of an Event of Default that is continuing, to set-off and apply any and all deposits (at any time held) and other indebtedness in any currency at any time owing by Bank or any of its affiliates to or for the credit or the account of Applicant against any and all Obligations of Applicant now or hereafter existing under

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this Agreement irrespective of whether or not Bank shall have made demand under this Agreement and despite such deposit, indebtedness, or Obligations being unmatured or contingent. Such rights of Bank under this paragraph 7 are in addition to all other rights and remedies which Bank may have at law, in equity, or otherwise.

8. Applicant agrees to reimburse Bank for, and to indemnify and hold Bank and its respective officers, directors, employees, agents, advisors, controlling Persons, members and successors and assigns (each, an "<u>Indemnified Person</u>") harmless from and against, any and all claims, liabilities, damages, losses, costs and expenses, including reasonable attorneys' fees and disbursements (all of the foregoing collectively referred to as "<u>Losses</u>"), incurred or suffered by such Indemnified Person under or in connection with any Credit (including in connection with issuing a Credit in the name of, for the account of, or to otherwise support obligations of, any of Applicant's subsidiaries or affiliates or with respect to the issuance of a Credit in electronic form), or any matter contemplated hereby or by any Application, except in each case to the extent any such Loss is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted directly from such Indemnified Person's gross negligence or willful misconduct. Such Losses shall include, but shall not be limited to, all such incurred or suffered by an Indemnified Person in connection with (a) Bank's exercise of any right or remedy granted to it hereunder, (b) any claim and the prosecution or defense thereof arising out of or in any way connected with any Credit, any Drawing, or this Agreement, (c) any transaction or dispute between Applicant and any Beneficiary of any Credit or between Bank and any Beneficiary of any Credit, (d) the collection of any of the obligations of Applicant hereunder, (e) the enforcement of any of Bank's rights hereunder or under any Credit, (f) any withholding made by Bank, or any refusal of Bank to make a payment, or any delay by Bank in making a payment, and regardless of whether the initiating party thereof is Applicant, a third party to whom a payment (with respect to which Bank has made withholding, or refused or delayed payment) is due, or otherwise, and (g) any of the other events or circumstances referred to herein. Applicant's obligations to indemnify Bank hereunder shall remain operative and in full force and effect regardless of the termination of this Agreement, the expiration of any Credit or the consummation of the transactions contemplated thereby. In furtherance of, and not in limitation of, the foregoing, Applicant hereby irrevocably confirms to Bank that it is and will be liable, as a primary obligor and not merely as a guarantor or surety, for reimbursement and other obligations owing to Bank in respect of any Credit issued by Bank at the request of Applicant for any entity or party other than Applicant. Applicant shall pay all amounts due under this paragraph 8 within five business days after demand.

9.(a) If Bank agrees that a Credit shall be subject to local law in the country or state of the beneficiary of such Credit (resulting in the application of the laws of any other jurisdiction other than the State of New York), then, in addition to (and not as a limitation of) Applicant's other obligations to Bank in respect to such Credit, Applicant agrees to further reimburse Bank, indemnify Bank, and hold Bank harmless from and against any Losses that arise or that Bank incurs in connection with such other law, including all Losses associated with an obligation to make payment after the stated expiry date of such Credit; and (b) in the event Applicant requests and Bank agrees that a Credit, or any part thereof, be issued in a foreign language, then Applicant agrees to indemnify Bank from any and all Losses associated with errors in translation of such Credit or any documents presented thereunder.

10. The obligation of Applicant to make payments under this Agreement in a particular currency (the "Applicable Currency") shall not be discharged or satisfied by any tender, or any recovery pursuant to any judgment or otherwise, which is expressed in or converted into any currency other than the Applicable Currency, except to the extent that such tender or recovery results in the actual receipt by Bank of the full amount of the Applicable Currency payable under this Agreement. Applicant shall indemnify Bank for any shortfall and Applicant's obligation to indemnify Bank and make payments in the Applicable Currency shall be enforceable as an alternative or additional cause of action to the extent that such actual receipt is less than the full amount of the Applicable Currency expressed to be payable hereunder, and shall not be affected by judgment being obtained for other sums due hereunder. Without limiting the previous sentences of this

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paragraph, if, for purposes of obtaining judgment in a court or tribunal in any jurisdiction, it is necessary to convert amounts due hereunder in the Applicable Currency into a second currency then such conversion shall be made at the rate of exchange quoted by the branch/agency of Bank set out in the applicable Application at 10:00 a.m. New York City time on the business day immediately prior to the date of judgment. Further, as a separate obligation, Applicant will pay Bank any additional amount over and above that determined using the rate of exchange cited above if the rate of exchange used at the date of payment to Bank is less favorable to Bank than it was at the date of judgment in instances in which Bank is required to convert the amount of any judgment into the amount of any obligation Applicant may owe at any time.

11. In the event Applicant applies from time to time hereafter for any extension of the expiry date or for any renewal or increase in the amount of any Credit or any other modification of its terms or if any Credit automatically renews or extends in accordance with its terms, this Agreement shall continue in force and apply to such Credit as so extended, renewed, increased or otherwise modified and to any action taken by Bank or its agents or correspondents in accordance with such extension, renewal, increase or other modification.

12. Applicant may request that a Credit be issued in electronic format and instruct Bank to accept Drawings or other documentation in electronic format; provided that Bank (a) is not obligated to issue a Credit in any particular form including electronic form, (b) may use its electronic signature in issuing any such Credit, (c) may receive Drawings and other documents in an electronic format, (d) may rely on electronic signatures from Applicant or Beneficiary (or Persons purporting to act on their behalf) without further inquiry as to such electronic signature's sufficiency or authenticity, and (e) is not obligated to verify that electronically presented data has not been altered in any way, including additions, deletions, or other changes thereto. Bank has no additional duties or obligations except as otherwise set out in this Agreement with respect to any electronic issuance of Credits or electronic Drawings or other documentation including any liability for the genuineness or enforceability of any electronic presentations.

13. Applicant represents and warrants, both as of the date of this Agreement and as of the date of each request for issuance, increase or extension of a Credit, that: (a) it is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization with the power and authority to carry on its business; (b) its execution, delivery and performance of this Agreement and each Application (i) are within its powers and have been duly authorized, (ii) do not contravene its by-laws, articles of incorporation, or other governing or organizational documents, (iii) do not contravene any contractual restriction binding upon it or any of its properties, the contravention of which would reasonably be expected to have a material adverse effect upon it, (iv) do not violate any applicable law, rule or regulation (including the Employee Retirement Income Security Act of 1974 ("<u>ERISA</u>")) or any order, writ, judgment, decree, award or permit of any arbitration tribunal, court or other governmental authority applicable to it or any of its properties, (v) do not require any notice, filing or other action to or by any governmental authority (other than those that have been made or obtained and are in full force and effect), and (vi) constitute private rather than public or governmental acts and neither it nor any of its property has any immunity from jurisdiction of any court or from set-off or any legal process under the laws of the State of New York or the laws of its jurisdiction of organization; (c) this Agreement constitutes its legal, valid and binding obligation, enforceable against it in accordance with the terms hereof except as may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the enforceability of creditors' rights generally and general principles of equity; (d) it is in compliance with all applicable laws, rules and regulations binding upon it (including ERISA), except to the extent that the failure to comply therewith would not, individually or in the aggregate, reasonably be expected to result in a material adverse effect or prevent it from performing its obligations hereunder; (e) the issuance, increase, and extension of each Credit hereunder is lawful under all applicable economic and trade sanctions, export controls laws, import laws, anti-boycott laws, anti-bribery and corrupt practices laws, and anti-money laundering laws (including the laws of (i) the United States regarding sanctions and export controls administered and enforced by the U.S. Department of the Treasury's Office of Foreign Assets Control or any other department or agency, (ii) the United Nations Security Council,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Canada, (iv) the European Union, (v) His Majesty's Treasury of the United Kingdom, or (vi) other relevant governmental authority having jurisdiction over it, in each case with respect to clauses (e)(i) through (e)(vi), applicable to prohibited transactions and unauthorized dealings with sanctioned countries, territories, vessels, or Persons), and would not result in any violation of any such laws by Bank or its affiliates; (f) there is no pending or threatened action or investigation which is reasonably likely to materially adversely affect its financial condition, business or assets or which purports to affect the validity or enforceability of this Agreement, any other agreement supporting or securing this Agreement, or any Credit; (g) it is not required to be registered as an investment company within the meaning of the Investment Company Act of 1940, or, directly or indirectly, controlled by or acting on behalf of any party which is required to be registered as an investment company; (h) under laws in effect on the date hereof, it will not be required to make any deduction or offset from any payment it may make hereunder, and if it learns of any change requiring any such deduction or offset it will promptly notify Bank thereof; (i) as of the date hereof, the written information furnished by it to Bank in connection with this Agreement (other than projections, information of a general economic or industry specific nature or information or data prepared by a third party), taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and (j) immediately after giving effect to the issuance of any Credit (or any increase or extension thereof), no Event of Default has occurred and is continuing or would exist with the giving of notice or lapse of time or both.

14. Applicant will (a) comply with all laws, rules and regulations (including ERISA) now or hereafter applicable to Applicant, its properties, any Credit or transactions related to such Credit, except where the failure to do so would not reasonably be expected to have a material adverse effect upon it, (b) comply with all laws, rules and regulations referred to in paragraph 13(e), above, applicable to it, its subsidiaries, or its and their respective directors, officers, employees or agents from time to time and not cause any Credit to be issued or used (i) to fund, finance or facilitate any activities, business or transaction of or with any Person that is the target of any such law, rule, or regulation or in any country or territory that is the subject of thereof or (ii) in furtherance of an offer, payment or giving of money or anything else of value to any Person in violation of any such law, rule, or regulation applicable to it, its subsidiaries, or its and their respective directors, officers, employees or agents from time to time, (c) maintain in effect and enforce policies and procedures designed to ensure compliance by Applicant and its subsidiaries, and its and their respective directors, officers, employees or agents, with all laws, rules and regulations referred to in paragraph 13(e), above, applicable to it or them, including anti-money laundering laws, rules and regulations (such as those promulgated by or under the USA PATRIOT Act (as defined below) and the U.S. Bank Secrecy Act of 1970), (d) promptly notify Bank in writing upon obtaining knowledge of the occurrence of any Event of Default or any event which with notice or lapse of time or both would constitute an Event of Default, (e) deliver to Bank, promptly after request from time to time, annual and quarterly financial statements (unless Applicant is required to file, and timely files (without giving effect to any extension), regular annual and quarterly financial statements with the U.S. Securities and Exchange Commission (or any successor thereto) pursuant to the United States Securities Exchange Act of 1934) and such other information concerning Applicant's financial condition, business affairs and operations as Bank may reasonably request, and (f) permit Bank to inspect Applicant's books and records on reasonable notice during regular business hours.

15.(a) This Agreement shall become effective on the date when each of the following conditions is satisfied (or waived in accordance with paragraph 18):

&nbsp;&nbsp;&nbsp;&nbsp;(i) Bank shall have received from each party hereto a counterpart of this Agreement signed on behalf of such party;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Bank shall have received a favorable written opinion (addressed to Bank and dated as of the date hereof) of Stoel Rives LLP, counsel to Applicant, covering existence, good standing, power and authority, due authorization, execution and delivery, enforceability, and non-contravention, such opinions to be rendered under New York, Oregon and United States Federal law and covering such other matters relating

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to Applicant, its organizational documents, this Agreement, or the transactions contemplated hereby as Bank shall reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;(iii) Bank shall have received a certificate signed by an authorized officer of Applicant certifying that (A) the representations and warranties set forth in paragraph 13 hereof are true and correct as of the date hereof, and (B) as of the date hereof, no Event of Default, or other event or condition which upon notice, lapse of time, or both would become an Event of Default, has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;(iv) Bank shall have received such documents and certificates as Bank may reasonably request relating to the organization, existence, and good standing of Applicant, the authorization of the transactions contemplated hereby, and any other matters relevant hereto, all in form and substance reasonably satisfactory to Bank, including resolutions (or comparable evidence of authority) authorizing the execution, delivery, and performance of this Agreement by Applicant and an incumbency certificate of Applicant certifying as to the incumbency and specimen signatures of officers of Applicant authorized to execute and deliver this Agreement and any other documentation required in connection herewith;

&nbsp;&nbsp;&nbsp;&nbsp;(v) Applicant shall have received all consents and approvals (including any applicable credit facility or indenture) required in connection with the execution and delivery by Applicant of this Agreement or in connection with the consummation of the transactions contemplated hereby, and Bank shall have received satisfactory evidence of the same;

&nbsp;&nbsp;&nbsp;&nbsp;(vi) Bank shall have received all fees and other amounts due and payable under this Agreement on or prior to the date hereof, and, to the extent invoiced at least two business days prior to the date of this Agreement, reimbursement or payment of all expenses required to be reimbursed or paid by Applicant hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;(vii) Bank shall have received all documentation and other information regarding Applicant requested by Bank in connection with applicable "know your customer" and anti-money laundering rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the preceding paragraph 15(a) or any other provision of this Agreement, Applicant acknowledges and agrees that the credit facility evidenced hereby is uncommitted and Bank and any other branch of The Toronto-Dominion Bank or any of its affiliates, in their sole discretion, may decline to issue, increase, extend, or otherwise amend any Credit hereunder for any reason, in each case without any liability on the part of Bank or any such branches or affiliates.

16. In this Agreement: (a) the term "Agreement" means this Reimbursement Agreement and Continuing Indemnity Relating to Standby Letters of Credit/Letters of Guarantee, as the same may be amended, supplemented or otherwise modified from time to time; (b) the term "including" means "including without limitation"; (c) the term "Person" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, government (including any subdivision, agency, court, central bank, or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supranational bodies such as the United Nations or the European Union) or other entity; (d) unless the context requires otherwise, references herein to paragraphs or sections shall be construed to refer to paragraphs or sections of this Agreement; (e) references to any laws, rules, or regulations include any amendments thereto or successor or replacement laws, rules, or regulations; and (f) references to actions Bank "may" take or omit to take mean "may in its sole discretion".

17. Bank may, in its sole discretion, arrange for one or more Credits requested hereunder to be issued by any other branch of The Toronto-Dominion Bank or any of its affiliates, in which case the term "Bank" shall include such other branch or affiliate with respect to each Credit issued by such other branch or affiliate.

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18. This Agreement shall be binding upon Applicant and upon its heirs, executors, administrators, successors and assigns and each of them and shall inure to the benefit of Bank, and its successors and assigns. Applicant shall not assign or otherwise transfer any of its rights or obligations under this Agreement without Bank's prior written consent. Bank shall not assign or otherwise transfer its rights and obligations under this Agreement, in whole or in part, without the Applicant's prior written consent, which shall not be unreasonably (a) withheld, (b) delayed, or (c) conditioned, except (i) after the occurrence of an Event of Default that is continuing or (ii) as part of a merger or acquisition of Bank. Bank may grant participations in its rights and obligations under this Agreement or any Credit, in whole or in part, without the consent of Applicant, <u>provided</u> that (i) Bank's obligations under this Agreement shall remain unchanged, (ii) Bank shall remain solely responsible to Applicant for the performance of such obligations and (iii) Applicant shall continue to deal solely and directly with Bank in connection with Bank's rights and obligations under this Agreement. Applicant acknowledges that information pertaining to Applicant as it relates to this Agreement or any Credit may be disclosed to actual or prospective participants, transferees or assignees subject to paragraph 27, below. This Agreement shall not be construed to confer any right or benefit upon any Person other than Bank, the Indemnified Persons and Applicant and their respective successors and permitted assigns, and no such Person shall be deemed a third-party beneficiary hereof. Any provision of this Agreement which is void or unenforceable shall be ineffective to the extent void or unenforceable and shall be severable from the other provisions hereof and this Agreement shall be interpreted as if such provision were not included herein. None of the terms of this Agreement shall be amended, waived, or otherwise modified except in writing signed by Bank and Applicant and any waiver by Bank shall not constitute any further waiver. This Agreement constitutes the entire agreement between the parties hereto concerning the subject matter hereof and supersedes all prior or simultaneous agreements, written or oral, with respect to the subject matter hereof. All rights and remedies of Bank and all obligations of Applicant under or in connection with this Agreement and any other documents delivered in connection with this Agreement are cumulative and in addition to those provided or available at equity or under any applicable law.

19. All notices and other communications hereunder shall be sent, (a) if to Applicant, to its address or email address indicated on its signature page to this Agreement, and (b) if to Bank the address of Bank as set forth on the applicable Credit, or as to either of the foregoing, to such other address or email address as it may notify to the other party hereto in writing. Each such notice shall be delivered by hand, fax, overnight courier or certified mail, return receipt requested. No such notice shall be effective until actually received, unless the intended recipient fails to maintain, or fails to notify, the other party of any relevant change of its name, address, or emails address), in which case such notice shall be effective when sent in accordance with this Agreement.

**20. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY APPLICATION OR INSTRUCTION, OR ANY CREDIT.**

21.(a) This Agreement and the rights and obligations of the parties under or in connection with this Agreement shall be governed by and subject to the laws of the State of New York applicable to contracts made and to be performed in such State (including New York General Obligations Law Section 5-1401) and applicable federal laws of the United States of America. In the event that the law of a state or country other than the State of New York has expressly been chosen to govern a Credit, Applicant shall be obligated to reimburse Bank for payments made under such Credit if such payment is justified under New York law or such other law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Credit may be expressly made subject to or otherwise incorporate, as appropriate and as agreed by Applicant, the applicable Beneficiary, and Bank prior to the issuance of such Credit, (i) the Uniform Customs and Practice for Documentary Credits, 2007 Revision, International Chamber of Commerce Publication No. 600 ("<u>UCP 600</u>"), (ii) the Uniform Customs and Practice for Documentary Credits (UCP

------

600) Supplement for Electronic Presentations ("eUCP") Version 2.0, (iii) the International Standby Practices (ISP98), ICC Publication No. 590 ("<u>ISP 98</u>"), or (iv) the Uniform Rules for Demand Guarantees, ICC Publication No. 758 ("<u>URDG</u>"), in each case including any amendments thereto (each of UCP 600, eUCP, ISP98, or the URDG, as applicable, being "<u>Rules</u>"). Bank's rights and remedies under the applicable Rules shall be in addition to, and not in limitation of, those expressly provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent permitted by applicable law, (i) this Agreement shall prevail in case of conflict with the applicable Rules or the Uniform Commercial Code, as in effect from time to time in the applicable jurisdiction (the "<u>UCC</u>") and (ii) the applicable Rules shall prevail in case of conflict between such Rules and the UCC.

22. Applicant consents and submits to the non-exclusive jurisdiction of any state or federal court sitting in New York County, in the State of New York, for itself and in respect of any of its property, in any action or proceeding arising under or in connection with this Agreement or any Credit. If the law of any jurisdiction other than the State of New York has been chosen to govern a Credit or governs in the absence of an express choice of governing law, Applicant also consents and submits to the non-exclusive jurisdiction of any court sitting in such jurisdiction, in any action or proceeding arising under or in connection with this Agreement or such Credit. Applicant agrees not to bring any action or proceeding against Bank that arises under or in connection with this Agreement or any Credit in any court or other forum not described in the first sentence of this paragraph. Applicant waives any objection to venue or any claim of *forum non conveniens* with respect to any action or proceeding in any court described in this paragraph. Applicant agrees that any service of process may be served upon it by Bank by mail or hand delivery if sent to the address for notices to Applicant under this Agreement. Nothing in this Agreement shall affect Bank's right to serve process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against Applicant in any other jurisdiction. Applicant agrees that final judgment against it in any action or proceeding shall be enforceable in any other jurisdiction within or outside the United States of America by suit on the judgment, a certified copy of which shall be conclusive evidence of the judgment.

23. Bank hereby notifies Applicant that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "<u>USA PATRIOT Act</u>"), it is required to obtain, verify and record information that identifies each applicant, borrower, guarantor or grantor (the "<u>Loan Parties</u>"), which information includes the name and address of each Loan Party and other information that will allow such Bank to identify such Loan Party in accordance with the USA PATRIOT Act.

24. Applicant acknowledges that this Agreement is, and each Credit will be, entered into for commercial purposes of Applicant. To the extent that Applicant or any of its assets has or hereafter acquires any right of sovereign or other immunity from or in respect of any legal proceedings to enforce or collect upon any Obligations hereunder or any other agreement relating to the transactions contemplated herein, Applicant hereby irrevocably waives any such immunity and agrees not to assert any such right or claim in any such proceeding.

25. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Agreement by any electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart hereof. The words "execution," "signed," "signature," and words of like import in this Agreement shall be deemed to include electronic signatures or electronic records, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law.

26. This Agreement is a continuing agreement and shall remain in full effect until the earlier of (a) receipt by Bank of written notice of termination from Applicant specifically referring to this Agreement or (b) delivery by Bank to Applicant of a written notice of termination specifically referring to this Agreement (which notice may be delivered without regard to whether any Event of Default exists). Termination shall not release Applicant

------

from any liability for Obligations (including contingent Obligations) existing on the date of such receipt or delivery of the termination notice, as applicable, or resulting from or incidental to a Credit issued on or before such date or issued pursuant to a commitment of Bank existing on such date. Upon termination of this Agreement, Applicant shall cease to request the issuance of any further Credits hereunder or any increase or extension of any outstanding Credit hereunder. Provisions of this Agreement relating to taxes, indemnities, payment of costs and expenses, exculpations and limitations on liability, waivers of immunity, jurisdiction, and waiver of trial by jury shall survive any termination of this Agreement, expiration of any Credit, and irrevocable and final payment of all the Obligations.

27. Bank agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its other branches and its affiliates and their directors, officers, employees and agents, including accountants, legal counsel and other advisors (collectively, "Representatives") (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested of Bank or any Representative by any banking, financial, securities or other supervisory, regulatory, self-regulatory or governmental authority, (c) to the extent required by applicable laws, rules, or regulations or by any subpoena or similar legal process or court order, (d) in connection with the enforcement of, or the exercise of any remedies under, this Agreement or in connection with any court proceeding related to this Agreement or any underlying transaction, (e) subject to an agreement containing provisions substantially the same as those of this paragraph, to any assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations under this Agreement, (f) with the consent of the Applicant, or (g) to the extent such Information (1) becomes publicly available other than as a result of a breach of this paragraph or (2) becomes available to the Bank on a nonconfidential basis from a source other than the Applicant. For the purposes of this paragraph, "Information" means all information received from the Applicant relating to the Applicant or its business, other than any such information that is available to Bank on a nonconfidential basis prior to disclosure by the Applicant.

[Signature Page Follows]

------

IN WITNESS WHEREOF, this Agreement is executed as of the date first written above.

**APPLICANT:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NORTHWEST NATURAL GAS COMPANY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By:<u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Brody J. Wilson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Brody J. Wilson

Title:&nbsp;&nbsp;&nbsp;&nbsp;Vice President, Treasurer, Controller, and Chief Accounting Officer

Address: Northwest Natural Gas Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 250 SW Taylor Street

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Portland, OR 97204

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Attn: Brody J. Wilson,

Vice President, Treasurer, Controller, and Chief Accounting Officer

**BANK:**

THE TORONTO-DOMINION BANK, <br>NEW YORK BRANCH

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Betty Chang&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Betty Chang

Title: Authorized Signatory

## Exhibit 31.1

**EXHIBIT 31.1**

***CERTIFICATION***

I, Justin B. Palfreyman, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2026 of Northwest Natural Gas Company;

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:&nbsp;&nbsp;&nbsp;&nbsp;May 6, 2026

<u>/s/ Justin B. Palfreyman</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Justin B. Palfreyman

Chief Executive Officer

## Exhibit 31.2

**EXHIBIT 31.2**

***CERTIFICATION***

I, Raymond Kaszuba III, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2026 of Northwest Natural Gas Company;

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:&nbsp;&nbsp;&nbsp;&nbsp;May 6, 2026

<u>/s/ Raymond Kaszuba III</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Raymond Kaszuba III

Senior Vice President and Chief Financial Officer

## Exhibit 31.3

**EXHIBIT 31.3**

***CERTIFICATION***

I, Justin B. Palfreyman, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2026 of Northwest Natural Holding Company;

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:&nbsp;&nbsp;&nbsp;&nbsp;May 6, 2026

<u>/s/ Justin B. Palfreyman</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Justin B. Palfreyman

President and Chief Executive Officer

## Exhibit 31.4

**EXHIBIT 31.4**

***CERTIFICATION***

I, Raymond Kaszuba III, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2026 of Northwest Natural Holding Company;

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:&nbsp;&nbsp;&nbsp;&nbsp;May 6, 2026

<u>/s/ Raymond Kaszuba III</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Raymond Kaszuba III

Senior Vice President and Chief Financial Officer

## Exhibit 32.1

**EXHIBIT 32.1**

**NORTHWEST NATURAL GAS COMPANY**

Certificate Pursuant to Section 906

<u>of Sarbanes – Oxley Act of 2002</u>

Each of the undersigned, JUSTIN B. PALFREYMAN, Chief Executive Officer, and RAYMOND KASZUBA III, the Chief Financial Officer, of NORTHWEST NATURAL GAS COMPANY (the Company), DOES HEREBY CERTIFY that:

1.&nbsp;&nbsp;&nbsp;&nbsp;The Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 (the Report) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.&nbsp;&nbsp;&nbsp;&nbsp;Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

IN WITNESS WHEREOF, each of the undersigned has caused this instrument to be executed this 6th day of May 2026.

---

| |
|:---|
| <u>/s/ Justin B. Palfreyman</u> |
| Justin B. Palfreyman |
| Chief Executive Officer |

---

---

| |
|:---|
| <u>/s/ Raymond Kaszuba III</u> |
| Raymond Kaszuba III |
| Senior Vice President and Chief Financial Officer |

---

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to Northwest Natural Gas Company and will be retained by Northwest Natural Gas Company and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 32.2

**EXHIBIT 32.2**

**NORTHWEST NATURAL HOLDING COMPANY**

Certificate Pursuant to Section 906

<u>of Sarbanes – Oxley Act of 2002</u>

Each of the undersigned, JUSTIN B. PALFREYMAN, Chief Executive Officer, and RAYMOND KASZUBA III, the Chief Financial Officer, of NORTHWEST NATURAL HOLDING COMPANY (the Company), DOES HEREBY CERTIFY that:

1.&nbsp;&nbsp;&nbsp;&nbsp;The Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 (the Report) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.&nbsp;&nbsp;&nbsp;&nbsp;Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

IN WITNESS WHEREOF, each of the undersigned has caused this instrument to be executed this 6th day of May 2026.

---

| |
|:---|
| <u>/s/ Justin B. Palfreyman</u> |
| Justin B. Palfreyman |
| President and Chief Executive Officer |

---

---

| |
|:---|
| <u>/s/ Raymond Kaszuba III</u> |
| Raymond Kaszuba III |
| Senior Vice President and Chief Financial Officer |

---

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to Northwest Natural Holding Company and will be retained by Northwest Natural Holding Company and furnished to the Securities and Exchange Commission or its staff upon request.

<br>