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 and
six months ended June 30, 2022 and 2021 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 2021 Annual Report on
Form 10-K, as applicable (2021 Form 10-K).

NW Natural's natural gas distribution activities are reported in the natural gas
distribution (NGD) segment. The NGD segment also includes NWN Gas Reserves,
which is a wholly-owned subsidiary of Energy Corp, the NGD-portion of NW
Natural's Mist storage facility in Oregon, and NW Natural RNG Holding Company,
LLC. NW Natural RNG Holding Company, LLC holds an investment in Lexington
Renewable Energy, LLC, which is accounted for under the equity method. Other
activities aggregated and reported as other at NW Natural include the non-NGD
storage activity at Mist as well as asset management services and the appliance
retail center operations. Other activities aggregated and reported as other at
NW Holdings include NNG Financial's investment in Kelso-Beaver Pipeline (KB
Pipeline) and NWN Water's investment in Avion Water Company, Inc., which are
accounted for under the equity method, NW Natural Renewables Holdings, LLC and
its non-regulated renewable natural gas activities; and NWN Water, which through
itself or its subsidiaries, owns and continues to pursue investments in the
water sector. See Note 4 for further discussion of our business segment and
other, as well as our direct and indirect wholly-owned subsidiaries.

NON-GAAP FINANCIAL MEASURES. In addition to presenting the results of operations
and earnings amounts in total, certain financial measures are expressed in cents
per share, which are non-GAAP financial measures. All references in this section
to earnings per share (EPS) are on the basis of diluted shares. We use such
non-GAAP financial measures to analyze our financial performance because we
believe they provide useful information to our investors, analysts and creditors
in evaluating our financial condition and results of operations. Our non-GAAP
financial measures should not be considered a substitute for, or superior to,
measures calculated in accordance with U.S. GAAP. Moreover, these non-GAAP
financial measures have limitations in that they do 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 each
non-GAAP financial measure to the most directly comparable GAAP financial
measure is provided below.
                                                 Three Months Ended June 30,                  Six Months Ended June 30,
                                                   2022                  2021                 2022                  2021
Earnings (loss) per share of common
stock (diluted) - Total                      $         0.05          $   (0.02)         $         1.77          $     1.92
Diluted earnings (loss) per share -
NGD segment(1)                                            -              (0.05)                   1.70                1.71
Diluted earnings per share - NW
Holdings - other(1)                                    0.05               0.03                    0.07                0.21

(1) Non-GAAP financial measure


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EXECUTIVE SUMMARY




Current financial results and highlights include:
•Reported net income of $1.7 million or $0.05 per share (diluted) for the second
quarter of 2022, compared to net loss of $0.7 million or $0.02 per share
(diluted) in the prior year;
•Reported net income of $58.0 million or $1.77 per share (diluted) for the first
six months of 2022, compared to net income of $58.8 million or $1.92 per share
(diluted) in the prior year;
•Issued and sold 2.9 million shares of common stock on April 1, 2022;
•Added nearly 10,200 meters during the past twelve months for a growth rate of
1.3% at June 30, 2022;
•Invested more than $165 million in our utility systems in the first six months
of 2022 in an effort to achieve greater reliability and resiliency;
•Filed multi-party settlements in the Oregon general rate case; and
•Announced two water and wastewater acquisitions near our existing service
territory in Washington state and closed one water acquisition in Texas.

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

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