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LEAD.
INNOVATE.
GROW.
Investor Presentation
December 2016
INVESTOR INFORMATION
This and other presentations made by NW Natural from time to time, may contain forward-looking statements
within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements
can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects”
and similar references to future periods. Examples of forward-looking statements include, but are not limited
to, statements regarding the following: including regional third-party projects, storage, pipeline and other
infrastructure investments, commodity costs, competitive advantage, customer service, customer and
business growth, conversion potential, multifamily development, business risk, efficiency of business
operations, regulatory recovery, business development and new business initiatives, environmental
remediation recoveries, gas storage markets and business opportunities, gas storage development, costs,
timing or returns related thereto, financial positions and performance, economic and housing market trends
and performance shareholder return and value, capital expenditures, liquidity, strategic goals, carbon savings,
gas reserves and investments and regulatory recoveries related thereto, hedge efficacy, cash flows and
adequacy thereof, return on equity, capital structure, return on invested capital, revenues and earnings and
timing thereof, margins, operations and maintenance expense, dividends, credit ratings and profile, the
regulatory environment, effects of regulatory disallowance, timing or effects of future regulatory proceedings or
future regulatory approvals, regulatory prudence reviews, effects of regulatory mechanisms, including, but not
limited to, SRRM and the Company’s infrastructure investments, effects of legislation, including but not limited
to bonus depreciation and PHMSA regulations, and other statements that are other than statements of
historical facts.
Forward-looking statements are based on our current expectations and assumptions regarding our business,
the economy and other future conditions. Because forward-looking statements relate to the future, they are
subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual
results may differ materially from those contemplated by the forward-looking statements, so we 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 by reference to the factors described in
Part I, Item 1A “Risk Factors,” and Part II, Item 7 and Item 7A “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” and “Quantitative and Qualitative Disclosure about Market
Risk” in the Company’s most recent Annual Report on Form 10-K, and in Part I, Items 2 and 3 “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” and “Quantitative and Qualitative
Disclosures About Market Risk”, and Part II, Item 1A, “Risk Factors”, in the Company’s quarterly reports filed
thereafter.
All forward-looking statements made in this presentation and all subsequent forward-looking statements,
whether written or oral and whether made by or on behalf of the Company, are expressly qualified by these
cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is
made, and we undertake no obligation to publicly update any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as may be required by law.
FORWARD LOOKING STATEMENTSCOMPANY INFORMATION
NW Natural
220 NW Second Ave.
Portland, OR 97209
nwnatural.com
Nikki Sparley
Director, Investor Relations
(503) 721 – 2530
nikki.sparley@nwnatural.com
2
TABLE OF CONTENTS
I. Introduction
II. Utility
III. Gas Storage
IV. Growth Opportunities
V. Financial Performance
VI. Conclusion
Appendix
4
NW NATURAL LEADERSHIP
Mr. Anderson is currently NW Natural’s President and CEO effective August 1, 2016. Since
he joined the Company in 2004, Mr. Anderson has served in various executive positions
over Operations, Regulation, as COO and CFO. Previously, Mr. Anderson held executive
positions within TXU Corporate including Senior Vice President and Chief Accounting
Officer. Mr. Anderson holds a BBA in Accounting from Texas Tech University and held a
CPA (retired) and CGMA.
Brody J. Wilson
Interim CFO & Interim Treasurer and Chief Accounting Officer & Controller
Mr. Wilson is currently serving as NW Natural’s Interim CFO and Interim Treasurer effective
September 2, 2016. Mr. Wilson was appointed Chief Accounting Officer and Assistant
Treasurer in 2016 and has been serving as NW Natural’s Controller since 2013. Prior to
joining the Company in 2012, he was a Senior Manager at PricewaterhouseCoopers LLP
where he worked in PwC’s Energy & Utility Group in Portland, Oregon and London, England.
Mr. Wilson holds a Bachelor of Science in Accounting from George Fox University and is a
CPA in Oregon.
David H. Anderson
President and CEO
6
INVESTMENT HIGHLIGHTS
• Low-risk business profile with 90%+ of revenues from pure-play LDC
• Over 718,000 utility customers with nearly 14,000 miles of distribution and
transmission mains
• Supportive regulatory environments in Oregon and Washington with progressive
recovery mechanisms
• Modern distribution system – no identified cast iron or bare steel
Stable, Regulated
Earnings Profile
Proven Financial
Performance
Tangible Growth
Opportunities
• Stable dividends with 61-year record of increasing dividends paid annually
• Investment grade credit ratings of AA- and A1 at S&P and Moody’s, respectively (1)
• Experienced management team with broad energy knowledge
• Projected five-year capital expenditures plan of $850-950 million
• Service territory experiencing above average customer growth (1.6% for the year
ending September 30, 2016)
• Continuous replacement of existing infrastructure to ensure reliability and safety
• $128 million regulated expansion of Mist facility to support renewables in the region
(1) The above credit ratings are dependent upon a number of factors, both qualitative and quantitative, and are subject to change at
any time. The disclosure of these credit ratings is not a recommendation to buy, sell or hold NW Natural securities. 7
HIGHLY REGULATED BUSINESS
MIX
Note: Excludes Other segment due to values consistently less than 1.0%.
Utility
99.7%
Gas
Storage
0.3%
Utility
97.4%
Gas
Storage
2.6%
Utility
91.5%
Gas
Storage
8.5%
2015 Capital Expenditures2015 Net Income
2015 Total Assets
$118 million$54 million
$3.1 billion
8
CORPORATE STRATEGY
A CONSERVATIVE BUSINESS PROFILE
Stable utility margins through progressive regulation
• Weather & decoupling mechanisms in Oregon
• Environmental cost recovery mechanism in Oregon
• Constructive relationships with regulators and customer groups
Excellent operations and efficient cost structure
• Commitment to safety, reliability, and quality service
• Continued focus on efficient business operations
Long-term growth opportunities that fit NWN’s profile
• Utility: attractive and growing service territory driving above-average customer growth and investments
• Mist facility: high-value long-term contracts, asset optimization, planned expansion
• Gill Ranch facility: potential long-term storage value from California's RPS requirement and carbon
reduction targets
9
Low-Carbon
Pathway
Enable Growth Superior Customer
Experience
OUR STRATEGIC UTILITY GOALS
Constructive
Regulation
Workforce of the
Future
Effectively position our
Company for a low-
carbon future.
• Target: 30% carbon
emissions savings
associated with
current and new
customers by 2035,
from a 2015 baseline.
• Build public policy
coalitions to support
this goal.
Further a successful
regulatory agenda
that serves the
interests of
customers, benefits
the company, meets
the duties of
regulators and
furthers
stakeholders’
missions.
Channel our
organizational
energies around
revenue growth so we
can succeed in
an increasingly
competitive and
complex marketplace.
• Simplify processes
and leverage
technology.
• Examine our tariffs
to meet new market
demands and a low-
carbon business
model.
Improve processes,
deploy new
technology and use
metrics to continually
improve and meet
evolving customer
expectations.
Continue to drive
operational priorities
that ensure we are
delivering safe,
reliable and superior
service.
Foster a culture of
accountability, creativity
and collaboration that is
inclusive and supports
opportunities for cross-
functional effectiveness.
10
CORE UTILITY SEGMENTS
Safe, Reliable Service
• Strong safety record
• Modern distribution and transmission system — No known cast
iron and bare steel since 2015
• State of the art training facility used for hands-on scenario-based
safety training
• Outstanding customer satisfaction — #1 in West, JD Power and
Associates (2016)
• Resource diversity — 11 Bcf regulated gas storage and 2 Bcf
LNG storage
Attractive Service Territory
• Approximately 89% of customer base in Oregon and 11% in
Washington
• Territory covers over 75% of Oregon’s population
• Includes Vancouver (Clark County) — the fastest growing county
in Washington
• Supportive and progressive regulation
Growth Potential
• Organic opportunities — gas in approximately 60% of single-
family homes
• Strong customer growth
• Positive economic trends and housing fundamentals in region
90%+ of net income and assets from pure-play LDC Cast Iron & Bare Steel Removed
Cap-Ex Focus on System Integrity,
Maintenance and Growth
($ in millions)
12Chart above is based on accrual capital expenditure figures.
RATE STRUCTURES &
MECHANISMS
Oregon Washington
Rate Structures:
Rate Case Year 2012 2009
ROE 9.5% 10.1%
ROR 7.8% 8.4%
Equity Ratio 50% 51%
2015 Rate Base $1.2B $0.1B
Key Mechanisms:
Decoupling/WARM X
Purchased Gas Adjustment X X
Environmental Cost Recovery Deferral(1)
Pension Balancing X
Incentive Sharing(2) X X
(1) Washington allows deferral of environmental costs, but a cost recovery mechanism or methodology has not yet been established by the Washington Commission. A carrying
charge related to deferred amounts will be determined in a future proceeding.
(2) In Oregon, NW Natural shares PGA gains and losses. In both Oregon and Washington, NW Natural shares with customers revenues it achieves through interstate storage
and optimization activities. 13
GROWING RATE BASE
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Net Rate Base Accumulated Depreciation Deferred Tax Liability - Depreciation
($ in billions)
14
SUPPORTIVE REGULATORY
MECHANISMS
• Allows for deferral of environmental costs and in OR the accrual of carrying costs
• Recovers environmental costs allocated to OR through a site remediation mechanism (SRRM), subject to an
annual prudence review and earnings test(1)
• Defer costs in WA, recovery & carrying charge to be determined in future proceeding
• Breaks link between earnings and consumption by removing incentive to increase usage
• Employs use-per-customer decoupling calculation, which adjusts margin revenues to account for the difference
between actual and expected customer volumes
• Adjusts annual rates to reflect changes in expected cost of gas commodity purchases
• Includes spot purchases, contract supplies, derivatives, storage inventories, gas reserves
• Includes temporary rate adjustments amortizing deferred regulatory account balances
• Stabilizes collection of fixed costs for residential and commercial customers
• Adjusts billings based on temperature variances compared to average weather
• Applied from December through May of each heating season
• Defers annual pension expenses above the amount set in rates
• Expect deferral account to come to zero after nearer-term years of higher pension costs are balanced with
future years of lower pension costs
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O
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Decoupling
Weather
Normalization
(WARM)
Purchased Gas
Adjustment (PGA)
Environmental
Cost Deferral
Pension Balancing
15(1) To the extent the utility earns more than its authorized ROE in a year, the utility is required to cover environmental expenses and interest on expenses greater than
$10 million (plus interest from insurance proceeds) with those earnings that exceed its authorized ROE.
RECENT REGULATORY
PROCEEDINGS
• January 2016 order resolved open matters regarding the implementation of the environmental recovery
mechanism
• OPUC confirmed recovery of prudently incurred environmental costs allocated to Oregon ratepayers (96.68% of
site costs allocated to Oregon)
• Disallowed interest earned on original charge resulting in $3.3 million pre-tax charge in January 2016
• OPUC opened all-party docket to discuss appropriate gas portfolio hedging in the state
— NWN request for guidelines on long-term hedging included in docket
— Expect to work through the docket during 2016 and the first half of 2017
• WUTC engaged in review of Local Distribution Company (LDC) hedging practices during 2016
• NWN submitted Combined Heat and Power Program under Senate Bill 844 to OPUC in June 2015
• OPUC declined program in April 2016 as filed & provided guidance on program structure & incentives for future
submission
• Contemplating next steps for this program and possible resubmission
• OPUC issued order in March 2015 requiring a third-party cost study to be performed
• Steering committee consisting of Company, OPUC staff, and customer groups to hire third-party to perform cost
study
• OPUC formed working group to study how utilities may expand natural gas service to areas that do not currently
have access to natural gas
• Report with high-level guidelines published in September 2016
Environmental
Cost Recovery
Carbon Solutions
Program
Interstate Storage
Sharing
Stranded
Communities
Commodity
Hedging
16
UTILITY STORAGE AT MIST
Overview
• In operation since 1989
• Storage capacity at Mist 16 Bcf
─ 11 Bcf Core Utility
─ 5 Bcf Non-Utility Interstate Storage Services
Unique Asset
• Limited storage options in Pacific Northwest
• Part of utility’s diverse, reliable gas supply strategy
• Utility can recall Interstate portion for Core Utility
demand
• Optimize Interstate portion and share with customers
0.00
0.10
0.20
0.30
0.40
0.50
0.60
BCF / Day
Utility Utility Recall Interstate
0
3
6
9
12
15
18
BCF
Utility Utility Recall Interstate
Mist Storage Capacity
Mist Storage Deliverability
17
18
STORAGE SEGMENT OVERVIEW
OR
WA
Portland
CA
San Francisco
Gill Ranch
Mist
NWN
Service
Territory
Mist (Interstate Portion) Gill Ranch
Designed Capacity (Bcf) 5 20
Max Deliverability (Dth/day) 215,000 490,000
In-Service Year 2001 2010
Mist
16 Bcf Total
Mist Storage
31 Bcf Total Gas Storage
Gill Ranch
15 Bcf
Mist (Utility)
11 Bcf
Mist
(Interstate)
5 Bcf
• NWN owns and operates two storage assets:
─ Mist – Gas Storage Segment (non-utility Interstate portion) currently has 5 Bcf of capacity at the 16 Bcf storage
facility in Mist, OR (remaining 11 Bcf dedicated to Utility Segment)
─ Gill Ranch – owns 75% of 20 Bcf Gill Ranch Storage Facility near Fresno, CA (PG&E owns remaining 25%)
• 2015 gas storage revenues were $21.4 million
19
GILL RANCH STORAGE FACILITY
20
• Fully contracted for 2016-17 gas storage year with slightly higher prices than 2015-16;
however, prices remain low relative to our original contracts for the facility
• Unlevered asset
• Pursuing higher value service contracts and new market opportunities
• Expect flexible energy resources to be needed in California to meet state’s RPS
• Additional regulations currently underdevelopment for gas storage facilities, which
could result in higher capital expenditures and on-going maintenance expenses
• Ability to expand, but will depend on California storage market conditions
• High-value asset in premium geographic location with limited competition from other
Pacific Northwest storage facilities
• Facility fully contracted with longer-term, multi-year contracts
• Strong and stable operating results
• Interstate capacity is fully recallable by the utility in the future
GAS STORAGE OUTLOOK
Mist Interstate Storage Trends
Gill Ranch Storage Trends
21
22
FOCUS ON REGULATED GROWTH Select one picture
INVESTING IN GROWTH
($ in millions)
Projecting Investment of $850 to $950 million in Core Utility over Five Years
• Strong utility customer growth: Clark County Washington upgrades to support fast growing county
• Customer acquisition growth: Current 60% penetration level provides room for organic growth
• Key utility reliability and asset management projects: Newport and Portland LNG
• Critical regional project: North Mist gas storage expansion in Oregon to support gas-fired electric generation
(1) Additional potential investments for bonus depreciation extension not considered in forecast.
(2) Total project spend is currently estimated at $128 million.
$0
$50
$100
$150
$200
2011 2012 2013 2014 2015 2016 Fcst Avg. 5-Yr Fcst
Utility Non-Utility North Mist Project Depreciation
Projected Capital Spend
(2)
23
HIGH-GROWTH SERVICE
TERRITORY
Solid Customer Growth Rate
• NW Natural growth 1.6%(1)
Strong Residential Growth
• Over 60% of utility margin
• Growth rate of 1.7%(1)
• Since 2012, steady growth in
single-family new construction
• Strong preference by new and
future homeowners for natural
gas; local survey shows willing to
pay $50k more for a home with all
natural gas appliances
Steady Commercial Growth
• Over 25% of utility margin
• Growth rate of 1.3%(1)
• Higher margins on commercial
customers
Industrial
• Less than 10% of utility margin
• Spread across diverse
manufacturing and industrial
sectors
(1) Customer growth measured over 12-month period ended September 30, 2016
Consolidated Customer Growth
3.1%
2.4%
1.6%
0.8% 0.9%
0.8%
0.9%
1.3% 1.4% 1.4%
1.6%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
0
5,000
10,000
15,000
20,000
25,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
(1)
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G
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w
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R
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C
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A
d
d
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s
Conversions Construction Net Growth Rate
24
Competitive Advantage
• Preferred energy source with recent survey showing 9 out
of 10 new or future homeowners primarily in the
Portland/Vancouver area would pick a home with all natural
gas appliances versus electric
• Low-cost, reliable, clean energy choice
• Natural gas in approximately 60% of single-family homes
Customer Connections Portal
• Cutting edge web-based tool for targeted conversions,
validates customer interest
• Enhanced web services for trade allies
Leveraging the Portal
• Ability to identify potential main extensions
• Beginning to identify targets and analyze cost profiles
Gas Not Currently AvailableGas Available
Gas Likely Available
INNOVATIVE CUSTOMER
ACQUISITION
25
FOCUSING ON MULTIFAMILY
Uptick in Construction
• Increase in multifamily construction
• Low vacancy rates in Portland area compared to
national rate
Preference for Natural Gas Amenities
• Recent study shows 80% of Portland area renters
paying market rates or above prefer gas amenities
such as cooktops, water heating and fireplaces
Executing on the Opportunity
• See apartments as an untapped growth opportunity
and a priority segment for NW Natural moving forward
• Currently analyzing renter preferences and natural
gas availability
• Creating an innovative incentive program to target
apartment developers
26
LNG Facilities
Newport LNG
• Upgrades underway totaling approx. $25 million with construction
from 2015 – 2018
Portland LNG
• Upgrades planned over the next several years
Vancouver, Washington Infrastructure
• Fastest growing region in service territory
• Upgrades underway totaling approx. $25 million with construction
from 2015 - 2020
System Integrity, Replacement, and Betterments
• General system replacements and betterments at Mist, operating
facilities, and information technology enhancements
• Proposed PHMSA gas safety regulations in April 2016; comment
phase in 2016; expect final rules in late 2017
Integrated Resource Plan Update
• Filed IRP in August 2016; expect acknowledgement in March 2017
Gas Reserve Investments
• Future investments contingent upon additional direction from open
OPUC hedging docket, market conditions, and tax appetite
INVESTING FOR RELIABILITY &
GROWTH
27
Planned Expansion Profile
Storage Capacity 2.5 Bcf
Deliverability 120,000 Dth/day
Estimated Project Spend $128 million(1)
Target In-Service Date Winter 2018/2019
Planned Expansion Project Update
• Innovative no-notice 24/7 storage service integrates
renewables into the power system for RPS
• Agreement with PGE to serve their Port Westward Plant
• Received critical permit from Oregon Energy Facilities Siting
Council in April 2016
• Received Notice to Proceed on September 30, 2016 allowing
NW Natural to move forward with construction
• Expansion for single long-term customer; no rate case
required for cost recovery; revenues earned under
established tariff schedule
(1) Total project spend based on 2016 notice to proceed estimate.
EXPANDING MIST UTILITY
STORAGE
28
NORTH MIST GAS STORAGE
29
30
(1) Stock and financial metrics are as of September 30, 2016 unless otherwise noted.
(2) Source: SNL Financial
(3) As of October 6, 2016
DELIVERING SHAREHOLDER
VALUE
• Solid balance sheet and investment grade credit ratings
• Sustainable dividend
• 61 consecutive years of increased dividends paid
Key Statistics(1)
Listed NYSE / “NWN”
52 Week Trading $45.39 to $65.60
Market Cap $1.7 Billion
Enterprise Value $2.4 Billion
Book Value Per Share $28.27
Shares Outstanding 27,558,000
Forward Dividend Yield 3.3%
2017 Indicated Dividend(3) $1.88
Returns(2)
Period Ended
September 30, 2016
Beginning
Stock Price
Total
Shareholder
Return
One year $45.84 35.8%
Five year $44.10 65.5%
Ten year $39.28 121.4%
31
SOLID EARNINGS
Delivered on 2015 Guidance
• GAAP EPS of $1.96 within 2015 guidance range of $1.77 to $1.97 per share
• Non-GAAP EPS of $2.29, which excludes environmental disallowance, and in non-GAAP guidance range of $2.10 to
$2.30 per share(1)
• Increased utility margin and steady customer growth
• Streamlined Gill Ranch expense structure
• Navigated challenges: regulatory environmental write-off and record warm winter; responded with temporary cost savings
initiatives ~$5 million savings
Steady Earnings YTD September 30, 2016 Compared to 2015
• GAAP EPS of $1.11 YTD 2016, compared to $0.88 YTD 2015
• Non-GAAP EPS of $1.18 YTD 2016, compared to $1.21 YTD 2015, excluding environmental disallowances (1)(2)
• Higher utility margin from customer growth and gains from gas cost sharing mechanism despite extremely warm year
• Higher revenues from both gas storage facilities; reaped benefits of lower Gill Ranch cost structure and redeeming long-
term note in December 2015
• Increased utility O&M as the Company resumes sustainable operating expense levels to support operations and growth
Expectations for 2016
• Full year 2016 guidance: GAAP EPS of $1.98 to $2.18 or non-GAAP guidance of $2.05 to $2.25 excluding environmental
disallowance (2)(3)
(1) 2015 non-GAAP adjusted EPS excludes the $15 million pre-tax regulatory disallowance related to the OPUC's Feb. 2015 environmental order. Amounts per share are calculated using
the combined federal and state statutory tax rate of 39.5% and divided by 27.4 million diluted shares.
(2) 2016 non-GAAP adjusted EPS excludes the $3.3 million pre-tax regulatory disallowance related to the OPUC's Jan. 2016 environmental order. Amounts per share are calculated using
the combined federal and state statutory tax rate of 39.5% and divided by 27.6 million diluted shares.
(3) The Company’s 2016 earnings guidance assumes customer growth from the utility segment, average weather conditions, sustainable operations and maintenance expense levels and
normal inflationary increases, slow recovery of the gas storage market, the impact of the five-year extension of bonus depreciation resulting from the enactment of the Federal PATH
Act of 2015, and no significant changes in prevailing legislative and regulatory policies, mechanisms, or outcomes.
32
Cash Flows
• Operating cash flows support capital needs
• Higher CFFO from environmental insurance recoveries in 2011
and 2014
• Ongoing cash flow strengthening through new environmental
mechanism
• Expect cash tax savings from bonus depreciation
Equity and Debt Offerings in November 2016
• Successful equity offering generated net proceeds of over $50
million
• Strong $150 million medium-term note issuance under shelf:
• $40 million 30-year debt at 4.136% (115 bps over treasury);
• $35 million 10-year debt at 3.211% (90 bps over treasury);
and
• $75 million 2-year debt at 1.545% (45 bps over treasury)
• Proceeds will be used for general corporate purposes, to fund
utility capital expenditures, including the North Mist gas storage
expansion, and to reduce short-term debt balances
Liquidity
• $300 million credit facility through 2019
• Access to capital markets
• Solid credit ratings(1)
STRONG CASH FLOWS AND
LIQUIDITY
Credit Ratings(1)
Dividend
$50 M
CFFO
S&P Moody’s
Secured Debt AA- A1
Commercial Paper A-1 P-2
Outlook Stable Stable
(1) The above credit ratings are dependent upon a number of factors,
both qualitative and quantitative, and are subject to change at any
time. The disclosure of these credit ratings is not a recommendation to
buy, sell or hold NW Natural securities.
($ in millions)
Cash Flow from Operations
$0
$50
$100
$150
$200
$250
2011 2012 2013 2014 2015
$216
$185
$176$169
$233
33
$1.00
$1.10
$1.20
$1.30
$1.40
$1.50
$1.60
$1.70
$1.80
$1.90
$2.00
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Indicated
• 2016 marked the 61th consecutive year of increased dividends paid to shareholders
• Supported by strong and stable cash flows
LEGACY OF INCREASING
DIVIDENDS
34
Stable utility margins
• Company results continue to show steady growth from utility
• Utility-focused business with stable core customer revenues
• Organic growth potential with strong economics driving single and
multifamily construction
Excellent operations and efficient cost structure
• Consistently high customer satisfaction ratings and system reliability
• Strong balance sheet and cash flows
• 61-year history of increasing dividends paid to shareholders
Long-term growth opportunities
• Innovative ideas and new programs
• Storage development opportunities to support flexible energy resource
needs
• Regional pipeline expansion opportunity
CONSISTENT CORPORATE
STRATEGY
36
INVESTMENT HIGHLIGHTS
• Low-risk business profile with 90%+ of revenues from pure-play LDC
• Over 718,000 utility customers with nearly 14,000 miles of distribution and
transmission mains
• Supportive regulatory environments in Oregon and Washington with progressive
recovery mechanisms
• Modern distribution system – no identified cast iron or bare steel
Stable, Regulated
Earnings Profile
Proven Financial
Performance
Tangible Growth
Opportunities
• Stable dividends with 61-year record of increasing dividends paid annually
• Investment grade credit ratings of AA- and A1 at S&P and Moody’s, respectively (1)
• Experienced management team with broad energy knowledge
• Projected five-year capital expenditures plan of $850-950 million
• Service territory experiencing above average customer growth (1.6% for the year
ending September 30, 2016)
• Continuous replacement of existing infrastructure to ensure reliability and safety
• $128 million regulated expansion of Mist facility to support renewables in the region
(1) The above credit ratings are dependent upon a number of factors, both qualitative and quantitative, and are subject to change at
any time. The disclosure of these credit ratings is not a recommendation to buy, sell or hold NW Natural securities. 37
38
STATE EMISSIONS BY SECTOR
39
*** Washington is currently under development.
GOAL: 30% SAVINGS BY 2035
40
Based on carbon emissions savings associated with current and new
customers by 2035, from a 2015 baseline.
Oregon Commission (OPUC)
Lisa Hardie, Chair
• Appointed May 2016
• Term began June 1, 2016
• Current term ends May 2020
Stephen Bloom, Commissioner
• Originally appointed December 2011
• Reappointed May 2016
• Current term ends November 2019
John Savage, Commissioner
• Originally appointed September 2003
• Reappointed three consecutive times
• Current term ends March 2017
Washington Commission (WUTC)
David Danner, Chair
• Appointed chair February 2013
• Current term ends January 2019
Ann Rendahl, Commissioner
• Appointed December 2014
• Current term ends November
2020
Philip Jones, Commissioner
• Originally appointed March 2005
• Reappointed March 2011
• Current term ends February
2017
CURRENT COMMISSIONERS
41
POTENTIAL TRAIL WEST
PIPELINE
42
LEAD. INNOVATE. GROW.