#1INVESTOR PRESENTATION AMERICAN GAS ASSOCIATION FINANCIAL FORUM MAY 19-20, 2021 NW Natural HOLDINGS™#22 INVESTOR INFORMATION COMPANY INFORMATION NW Natural Holdings 250 SW Taylor Street Portland, OR 97204 nwnaturalholdings.com Nikki Sparley Director, Investor Relations (503) 721-2530 [email protected] FORWARD LOOKING STATEMENTS This and other presentations made by NW Natural Holdings from time to time, may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to the safe harbors created by such Act. 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: plans; objectives; estimates; timing; goals; strategies; future events; projections; expectations; acquisitions and timing; completion and integration thereof; storage, pipeline and other infrastructure investments; safety; system modernization and reliability; risk profile; commodity costs and sourcing; competitive advantage; marketing success; service territory; customer service; customer and business growth; customer satisfaction ratings; weather; customer rates and timing and magnitude of potential rate changes; price advantage; customer preference; conversion potential; business risk; efficiency of business operations; regulatory recovery; business development and new business initiatives; water and wastewater industry and investments including timing, completion and integration of such investments; environmental initiatives and remediation recoveries; gas storage markets and business opportunities; gas storage development, costs, timing or returns related thereto; dispositions and timing, completion and outcomes thereof; financial positions and performance; economic and housing market trends and performance; shareholder return and value; capital expenditures; technological innovations and investments; availability and sources of liquidity; strategic goals and visions; decarbonization and the role of natural gas and the gas delivery system, including use of renewables such as renewable natural gas and hydrogen; low carbon pathway; carbon emissions and savings; renewable natural gas projects or investments and timing related thereto; procurement of renewable natural gas for customers; workforce trends; diversity, equity and inclusion initiatives; hedge efficacy; cash flows and adequacy thereof; return on equity; capital structure; return on invested capital; revenues and earnings and timing thereof; margins; net income; operations and maintenance expense; dividends; credit ratings and profile; debt and equity issuances; the regulatory environment; effects of regulatory disallowance; timing or effects of future regulatory proceedings or future regulatory approvals; regulatory prudence reviews or deferrals; timing, outcome and effects of regulatory dockets or mechanisms or approvals, including, but not limited to, OPUC approval of the Oregon general rate case comprehensive stipulation; effects of legislation and changes in laws and regulations, including but not limited to carbon, renewable natural gas and renewable hydrogen regulations; gas supply; supply chain; effects, extent, severity and duration of COVID-19 and resulting economic disruption; the impact of efforts to mitigate risks posed by its spread, the ability of our workforce, customers or suppliers to operate or conduct business, COVID-19 expenses and financial impact and cost recovery including through regulatory deferrals, impact on capital projects, governmental actions and timing thereof, including actions to reopen the economy; 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.#3LEADERSHIP PRESENTING • DAVID H. ANDERSON President and Chief Executive Officer 3 Mr. Anderson is currently NW Holding's President and CEO effective October 2018 and NW Natural's President and CEO effective August 2016. Since he joined NW Natural in 2004, Mr. Anderson has served in various executive positions over Operations, Regulation and Financial Matters, 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. FRANK BURKHARTSMEYER SVP and Chief Financial Officer Mr. Burkhartsmeyer is currently NW Natural Holdings' Senior Vice President and CFO effective October 2018 and NW Natural's Senior Vice President and CFO effective May 2017. Previously, Mr. Burkhartsmeyer served as President and CEO of Avangrid Renewables and Senior Vice President of Finance at Iberdrola Renewables Holdings US and also held various positions at PPM Energy, Scottish Power and Pacific Corp. Mr. Burkhartsmeyer has an MBA from the University of Oregon and a Bachelor of Arts in Liberal Arts from the University of Montana. KIMBERLY A. HEITING SVP Operations and Chief Marketing Officer Ms. Heiting is currently serving as NW Natural's Senior Vice President of Operations effective April 2018 in addition to her duties as Chief Marketing Officer (2013). Since she joined the Company in 1998, Ms. Heiting has served in various executive and director positions over Marketing, Communications, and Consumer Information. Previously, Ms. Heiting held management positions at Alltel and Bank of America. Ms. Heiting holds a Bachelor of Arts in Communications from the University of Iowa and a Master of Science in Communications from Northwestern University in Illinois. JUSTIN B. PALFREYMAN VP Strategy and Business Development & President NW Natural Water Mr. Palfreyman is currently NW Natural's Vice President of Strategy and Business Development effective 2016. In addition, he is the President of NW Natural Water. Previously, Mr. Palfreyman was with Lazard, Freres & Co. serving as a Director in the Energy & Infrastructure Group and worked in the Infrastructure Investment Banking Group at Goldman Sachs in New York. Mr. Palfreyman has an MBA and a Master of Public Policy from The University of Chicago, and a Bachelor of Business Administration from Pacific Lutheran University. NW Natural HOLDINGS™#44 INTRODUCTION#55 NWN AT A GLANCE Water & Wastewater Utilities GAS SERVICE TERRITORY OWA • WASHINGTON PORTLAND VANCOUVER SALEM O OREGON EUGENE O COR ID Gas Utility • 2.5 million people served. • Over 770,000 connections • 14,000 miles of modern pipeline • $3.6 billion in assets • Fast-growing service territory in Oregon & Southwest Washington • 63,800 people served · • 26,400 connections $111 million committed to date Fast-growing service territories Continued disciplined expansion TX NW Natural HOLDINGS™#6CO 6 KEY THEMES AND Q1 2021 RESULTS · • • • Reported net income of $1.94 per share for Q1 2021, compared to $1.58 from continuing operations in the prior period Results reflect new rates in Oregon for NW Natural, customer growth, and asset management benefits during the February weather event, partially offset by the financial effects of COVID-19 Added 11,000 natural gas meters in the last 12 months with a growth rate of 1.4% Working toward resolution with parties for the Washington multiyear general rate case filed in December 2020 Continue to work on procuring and investing in regulated renewable natural gas (RNG) opportunities under Senate Bill 98, hydrogen blend testing and developing proof of concept hydrogen facility (5 MW) Continued execution of our water and wastewater acquisition and investment strategy, closing one tuck-in acquisition and signed three more. Executing on Strategy NW Natural HOLDINGS™#77 CORPORATE STRATEGY#88 Our Mission We provide safe, reliable and affordable essential utility services in an environmentally responsible way to better the lives of the public we serve Our Values Safety Integrity Service Ethic Caring Environmental Stewardship NW Natural HOLDINGS™#99 CONSERVATIVE STRATEGY Stable gas and water utility margins through progressive regulation Stable Gas utility: weather, decoupling, and environmental cost recovery mechanisms in Oregon Utility Margins • Constructive relationships with regulators and customer groups benefit both gas and water utilities BUSINESS STRATEGY Excellent operations and efficient cost structure • Commitment to safety, reliability, and high-quality service • Continued focus on efficient business operations Long-term growth opportunities that fit NWN's profile • GAS UTILITY: strong cap-ex profile with attractive and growing service territory driving above-average customer growth compared to peers • MIST FACILITY: high-value long-term contracts, asset management revenues, North Mist expansion Low-Risk Growth • WATER & WASTEWATER: long-term, disciplined strategy to acquire water utilities and wastewater businesses in a highly fragmented industry with ample infrastructure investment opportunities Efficient Cost Structure NW Natural HOLDINGS™#10ESG LANDSCAPE & 2019 ACHIEVEMENTS Published inaugural ESG Report in alignment with SASB disclosures and AGA Sustainability Template 10 1 2 Environmental ■On track to meet or exceed carbon savings goal of 30% by 20351 ■Saved 275,000 metric tons of carbon in 2019, equivalent to taking 60,000 cars off the road Our north star and vision forward is being a carbon neutral energy provider by 2050 WATER BUSINESS VISION 2050 LOW-CARBON PATHWAY ETHICS & INTEGRITY CO2 ONMENTAL Governance DIVERSE & ACTIVE BOARD Maintained well-qualified, diverse, independent and active Board with appropriate business & risk oversight 100% of active NW Natural employees participated in ethics and compliance training GOVERNAN CONSTRUCTIVE REGULATION Customers & Employees Ranked #1 in the West for residential customer service² Over $1 million and 5,000 employee volunteer hours donated to nonprofits in our communities Made progress on diversity goals and introduced comprehensive new DE&I strategy Safety No cast iron or bare steel pipe in natural gas system, making our system one of the most modern and tightest in the nation Met or exceeded pipeline safety requirements Proactive damage prevention programs reduced third-party damages by 19% SAFETY + my CARE FOR OUR COMMUNITIES SOCIAL +++ & INCLUSION SUPERIOR CUSTOMER EXPERIENCE DIVERSITY, EQUITY Full report at nwnatural.com/sustainability This is an emissions savings goal equivalent to 30% of the carbon emissions from our sales customers' gas use and NW Natural company operations from 2015 2019 J.D. Power Gas Utility Residential Customer Satisfaction Study for Large Utilities NW Natural HOLDINGS™#1111 INVESTMENT TARGETS Growth targets over the next five years include: Financial Targets Gas Utility Growth Water Growth EPS growth of 3% - 5%¹ Strong and growing dividend² Customer growth 1.4%+ per year Capital plan of $1.0 - $1.2 billion Rate base growth of 4% -6%¹ Long-term strategy, incremental earnings growth and diversity • Deliberate and disciplined roll-up strategy Maintenance cap-ex plan $40 - $50 million³ 1 2 3 EPS and rate base growth forecasted for period 2021 - 2025; EPS growth rate uses mid-point of 2020 guidance range as base year Future dividends are subject to Board of Director discretion and approval Water cap-ex plan is based on projected needs of water and wastewater utilities acquired as of 12/31/20 Stable and Growing Return Proposition NW Natural HOLDINGS™#1212 HIGHLY REGULATED Pure-Play Utility Business Model 2020 Net Income Interstate Storage, Water & Other 10% Favorable Customer Mix 2020 Natural Gas Utility Margin Other¹ 5% Industrial 7% Commercial 24% Natural Gas Utility 90% Residential 64% 1 Other is primarily margin from North Mist regulated gas storage services NW Natural HOLDINGS™#1313 RESILIENT BUSINESS MODEL Months of Inventory 25 20 15 10 10 5 Tight Residential Real Estate Market Leads to Fewer Losses Housing Inventory Residential Commercial 0 1/1/2008 1/1/2012 1/1/2016 1/1/2020 RMLS Data for Portland Metro ~80% of Natural Gas Utility Margin is Decoupled % of Volumes % of Margin % of Margin Decoupled 38% 64% 89% 21% 24% 78% Industrial Other Total 41% 7% -% N/A 5% N/A 100% 100% 77% Based on 2020 SEC financials ~70% of Gas Utility Margin Earned during Heating Season 0.8 Sales Volumes Q1 Q2 Q3 Q4 39% 18% 9% 34% (weather normalized) Utility Margin 35% 18% 13% 34% Net Income 70% -7% -29% 66% Based on 2020 SEC financials NW NaturalⓇ#1414 NATURAL GAS UTILITY#1515 CUSTOMER SATISFACTION HIGHEST J.D.POWER AND ASSOCIATES S NATURAL GAS SERVICE-WESTERN PRESENTED TO NW NATURAL BY J.D. POWER AND ASSOCIATES CUSTOMER SATISFACTION J.D.POWER AND ASSOCIATES HIGHEST RESIDENTIAL GAS LARGE-WEST 2018 GAS UTILITY SERVICE-1 PRESENTED TO NW NATURAL BY J.D. POWER AND ASSOCIATES GAS UTILITY OVERVIEW More than 160 years of service in our communities Largest stand-alone local distribution company in the Pacific Northwest POWER • Serve 2.5 million people in more than 140 communities through over 770,000 meters in Oregon and southwest Washington recognized for Consistently recognized for high-quality customer service by J.D. Power • One of the safest, most modern distribution systems in the country NW NATURAL NW NaturalⓇ#16SOPHISTICATED MARKETING Affordable, Preferred, Growing . Growing communities with healthy permitting levels • • • Price advantage of heating with natural gas . • Up to 65% advantage over electric furnace Up to 15% advantage over high-efficiency heat pumps 8 in 10 prospective homebuyers say natural gas is preferable to electricity for heating and cooking1 Over 80% of survey respondents would pay $50,000 more for a median priced home that has gas amenities, relative to an all-electric home¹ Significant Conversion Potential . Serve approximately 63% of single-family homes in service territory . About 400,000 potential conversions • Targeted marketing campaign using innovative, proprietary tool supporting strong conversion pipeline 3,000 to 4,000 Conversions Annually 80,000 Target Market 150,000 On or Near Main 400,000 Potential Conversions 16 1 Research study conducted by Escalent, Inc. December 2020 NW NaturalⓇ#1717 Gross Customer Additions 20,000 18,000 2.4% 16,000 LEADING IN CUSTOMER GROWTH 14,000 12,000 10,000 8,000 6,000 4,000 2,000 1.6% 0.8% 0.9% 0.8% 0.9% 2007 2008 2009 2010 2011 2012 Conversions 2013 2014 1.8% 1.7% 1.7% 1.5% 1.5% 1.4% 1.4% 1.5% 1.4% 1.3% 2015 Construction 2016 2017 2018 Net Growth Rate 2019 2020 Q1 2021 0.5% 0.0% 1.0% NW NaturalⓇ 2.5% 2.0% 3.0% Net Customer Growth Rate#1818 INVESTING IN GAS SYSTEM Customer growth • New construction & conversions Main extensions Safety & Reliability • Recurring replacements Enhanced system reliability to support growth Technology Cybersecurity & customer facing technology Efficiencies and upgrades Enterprise resource planning system System Capital Expenditures* (In millions) ~$300 $278 20 $248 24 25 ~$230 Avg/Yr 30 45 $201 75 15 21 51 $164 40 34 34 32 32 75 146 115 109 100 12 91 72 Facilities • Resource and operations center renovations Renewable Natural Gas (RNG) Planned investments in four projects The timing and amount of the core capital expenditures and projects for 2021 and the next five years could change based on regulation, growth, and cost estimates. Additional investments in our infrastructure during and after 2021 that are not incorporated in the estimates provided will depend largely on additional regulations, growth, and expansion opportunities. Required funds for the investments are expected to be internally generated and/or financed with long-term debt or equity, as appropriate. 57 55 58 63 65 2017 2018 Customer Growth 2019 65 2020 2021F 2021F 2025F ■Technology Facilities ■RNG ■Safety and Reliability *Chart is based on accrual cap-ex figures and excludes North Mist Gas Storage Facility construction costs Five-Year Cap-Ex Approximately $1.1 Billion NW NaturalⓇ#19PROGRESSIVE REGULATION KEY MECHANISMS: Decoupling/WARM Purchased Gas Adjustment Environmental Cost Incentive Sharing(1) RATE CASE TEST YEAR RATE STRUCTURES: ROE ROR Equity Ratio 2020 Rate Base (3) OREGON WASHINGTON Forward Multiyear(2) 9.4% 9.4% 6.965% 7.161% 50% 49% $1.5B $0.2B 19 (1) In Oregon, NW Natural shares PGA gains and losses (2) In 2019, SB 5116 was passed granting the WUTC authority to incorporate costs and capital up to 48 months after the rate effective date. In 2021, SB 5295 was passed requiring multiyear general rate plans that include performance based measures. (3) Rate base is a 13-month average ending 12/31/20. Oregon rate base includes gas reserves and North Mist gas storage facility NW NaturalⓇ#2020 WASHINGTON 2021 RATE CASE o Filed request December 18, 2020 - based on continued system investment. Working toward resolution with parties. New rates expected to be effective Nov. 1, 2021 and Nov. 1, 2022 2019 RATE CASE o Request Based on System Investments - Multiyear rate case to recover investments and costs for: ROE ROR Settled Year 1 Request 2021-2022 RATE CASE Year 2 Request 9.4% 7.161% 9.4% 6.913% 9.4% 6.913% Equity/ . System resiliency & reliability LT Debt/ 49/50/1 49/50/1 49/50/1 • Headquarter leasehold improvements & rent costs ST Debt Ratio Rate Base $173.7M $225.9M $247.3M • Vancouver, Washington service center upgrades Revenue +$5.1M +$6.3M +$3.2M Requirement • Consumer-focused technology investments Net Income Benefit +$3.9M +$4.7M +$2.4M NW NaturalⓇ#2121 ENVIRONMENTAL STEWARDSHIP 21#2222 ROLE OF OUR SYSTEM TODAY NW Natural's System • Delivers more energy than any other utility in Oregon • Heats 74% of residential square footage in the areas we serve. Provides 90% of energy needs for our residential space and water heat customers on the coldest winter days One of the tightest, newest systems in the country Our residential and commercial customers' emissions account for just 6% of Oregon's total carbon emissions 36% TRANSPORTATION Oregon Greenhouse Gas Emissions by Sector 29% ELECTRICITY 22% 13% OTHER NATURAL (other fuels & waste) GAS NW Natural Residential and Commercial Customer Use » 6% NW NaturalⓇ Source: Oregon DEQ In-Boundary GHG Inventory preliminary 2019 data.#2323 OUR LOW-CARBON PATHWAY VOLUNTARY GOAL: 30% CARBON SAVINGS BY 2035 OUR PRODUCT REDUCE CARBON INTENSITY OUR CUSTOMERS REDUCE AND OFFSET CONSUMPTION TRANSPORTATION REPLACE MORE CARBON INTENSIVE FUELS NW NATURAL OPERATIONS UPSTREAM METHANE REDUCTION RENEWABLE NATURAL GAS POWER TO GAS (hydrogen pathway) ENERGY EFFICIENCY SMART ENERGY (voluntary offsets) GAS + RENEWABLE HYBRID EQUIPMENT (solar thermal) COMPRESSED NATURAL GAS AND RENEWABLE NATURAL GAS SERVE TRASH TRUCKS AND RETURN-TO-BASE FLEETS Baseline: 2015 emissions associated with customer use & company operations NW NaturalⓇ#2424 ON TRACK TO MEET OR EXCEED LOW CARBON PATHWAY GOAL Our voluntary carbon savings goal of 30% by 2035 includes greenhouse gas emissions from our own operations and the use of our product by our sales customers 2019: Above Target Savings Rate. 275,101 metric tons of carbon dioxide equivalent saved. This marks 21.3% of savings toward goal, ahead of necessary pace 2019 Source of Savings Mix 49% Energy Efficiency 43% Smart Energy 8% Upstream Methane NW NaturalⓇ#25Our Vision for the Gas System A decarbonizing network: Fuel Industry Cell Commercial and Residential Heating Carbon Neutral Waste Power to Gas ----- RENEWABLE ELECTRICITY HYDROGEN H +----+- WASTE CO2 • Deep energy efficiency Renewable natural gas • Renewable hydrogen Blended Methanated ✓ Dedicated Renewable Natural Gas Dedicated Hydrogen Waste CO2 Renewable Electricity VISION 2050 RENEWABLE NATURAL GAS RENEWABLE NATURAL GAS STORAGE HYDROGEN STORAGE Storage 25 Commercial Transport 00 wwwwwwww Electrolysis HYDROGEN CO Aviation Marine#2626 NEW THINKING IS REQUIRED FOR FUTURE What is the goal? Emission reductions - as fast as can be done in an affordable way How are we driving to a lower carbon electric system? We didn't "cut the wires," we set out to decarbonize what went over them From coal, to natural gas to more wind and solar The same holds true for the gas delivery system - - We deliver energy through pipes, what goes through them can change From natural gas, to renewable natural gas and renewable hydrogen We're committed to furthering decarbonization Using a variety of tools and supportive policy, we see a path to carbon neutrality by 2050. This is our vision forward RENEWABLE NATURAL GAS Turning the problem of waste into renewable energy Wastewater Treatment Plants Municipal Solid Waste Landfills Dairies Wood and Agricultural Residues sss 班 の NW NaturalⓇ#2727 GETTING TO ZERO The pathway to our vision of 100% carbon neutral by 2050 68° A Renewable sources that do not contribute new carbon to the atmosphere Partnership with cleaner electric systems to create seasonal and peak energy storage Encouraging innovation in efficiency NW NaturalⓇ#2828 POWER TO GAS Converting wind, solar, or hydro to renewable hydrogen for use in pipeline system ⚫ Partners with renewable electric system to solve the peak capacity gap Renewable hydrogen blended or methanated into the existing pipeline system for immediate use Potential to use existing, flexible and long-duration gas storage facilities 100+ projects in Europe, 7 in North America Wasted power turned into useable, renewable energy Take excess renewable electric energy Add water (electrolysis) to create hydrogen Blend hydrogen (or create RNG by methanating with waste carbon) into pipeline Use now or store for the future NW NaturalⓇ#29GAS SYSTEM: FLEXIBLE RENEWABLE STORAGE 2019 U.S. Energy Output by Facility Type (MWh) 700,000,000 288,000,000 Gas system has 2.5 times the energy of hydro facilities and about 1,500 times the energy delivered from current large-scale utility batteries Existing facilities can be used to store renewable natural gas and methanated hydrogen NWN's Mist storage can hold 6 million MWh of energy that can be delivered whenever needed To replicate that with a Lithium-ion battery, that's $2 trillion at today's prices5 1. 2. 3. 4. 461,000 5. Natural Gas Withdrawals from Hydroelectric Generation Underground Storage Outflows from Utility Scale Batteries 29 Source: EIA Weekly Natural Gas Storage Report - Withdrawals are calculated and aggregated from a weekly regional report. To convert natural gas volumes to MWh for comparison, this figures uses a national average heat content of 1036 btu/cf and a direct energy conversion of 0.29307 MWh/MMBtu. Source: EIA 923 Form - Hydroelectric and battery generation are pulled from generator level data identified with prime movers "HY" and "BA", respectively. Net generation is aggregated for hydroelectric generators and gross generation is aggregated for batteries. The figure for hydroelectric generation is the total net generation from hydroelectric facilities and does not distinguish between what can and cannot be stored. https://www.nrel.gov/docs/fy19osti/73222.pdf NW Natural#3030 ENABLING POLICY SUPPORT WITH GROUNDBREAKING RNG BILL Oregon law (SB 98) first-of-its-kind legislation that supports gas utilities purchasing renewable natural gas (RNG). Passed in 2019 and rulemaking completed in July 2020 Creates another path for RNG to become an increasing part of the Oregon's energy supply, one of the most effective ways to reduce emissions • Allows natural gas utilities to acquire RNG and hydrogen • Sets voluntary RNG portfolio targets for Oregon's natural gas utilities. Allows up to 5% of a utility's annual revenue requirement to be used to cover the incremental cost of RNG Allows for investments related to RNG infrastructure, including production facilities, cleaning and conditioning equipment, and pipeline interconnections Potential revenue source for communities to turn their waste into energy 2025 2030 2035 2040 2045 Oregon Senate Bill 98 supports RNG targets: 10% 15% 20% 25% 30% NW NaturalⓇ#3131 FROM WASTE TO RENEWABLES • • • 130 RNG facilities operating today in the U.S. and Canada Nearly 110 more are in development or under construction We are working to interconnect 3 projects onto our transportation system in 2021 Actively working to procure RNG for our customers in the near future Source: The Coalition for Renewable Natural Gas. NW NaturalⓇ#32TYSON RNG PARTNERSHIP RNG investment partnership signed in December 2020 • . • Partnership encompasses options for four initial projects for an estimated $38 million investment Exercised first option for ~$8 million project Potential for additional RNG development projects at other Tyson food processing sites across U.S. PENTAIR PENTAIR PENTAIR HAFFMANS PENTAIR MEMANS PENTAIR HAFFMANS MEMBRANE TECHNOLOGY 32 T Tyson FRESH MEATS TEAM BioCarbN CROSS RIVER INFRASTRUCTURE PARTNERS LLC NW Natural®#3333 RNG STRATEGY & NEAR-TERM OPPORTUNITIES • . Dedicated RNG Team whose mission is to secure renewable supply for NW Natural customers and renewable resources in an effort to decarbonize the company's system RNG Procurement Strategy is to prioritize contracts/investments that: Can deliver RNG at the lowest incremental cost to our customers Offer the largest possible volume of RNG over the next 5-10 years to help us meet SB 98 volumetric targets Strive for the lowest impact to our annual revenue requirement cap of 5% Include development or feedstock partners that have follow-on RNG opportunities Strong Response to RNG RFP - Issued RFP in July 2020 after RNG rulemaking completed with strong. response and provided market discovery information Hydrogen Facility - signed MOU with Bonneville Environmental Foundation & local Eugene electric utility to develop proof of concept electrolysis project (estimated at 5-10 MW) Hydrogen Testing - testing 5% hydrogen blend at NW Natural's state-of-the-art training facility with positive results and more testing planned in 2021 NW NaturalⓇ#3434 WATER#3535 GROWING WATER UTILITIES Increased Connections 4 Fold in 3 Years • NW Natural Water has 4x the connections it serves since its initial transactions in Dec. 2017 PP&E Growth In millions 9.5% CAGR $49 $77 • Today NW Natural Water serves nearly 64,000 people through more than 26,000 water and wastewater connections Expanding Footprint 2020 2025 Began strategy with two acquisitions in Pacific Northwest . Today also own a water utility in Texas, proving transaction capability beyond legacy service territory Acquisition Investment 2021-2025 Planned Cap-Ex Texas 6% Washington 15% Washington 19% Oregon 52% Oregon 55% Idaho 24% Strong Organic Growth • Utilities in fast-growing areas with tuck-in potential Organic customer growth of 2.8% in 2020 Continued Disciplined Acquisition Strategy • Intend to continue rolling up utilities near existing platform, while also exploring other high growth regions Texas 18% Idaho 11% ~$110 Investment To-Date $40 - $50 Million Planned NW Natural WATER™#3636 STRATEGIC RATIONALE FOR WATER The water and wastewater sector aligns well with NWN's conservative risk profile and offers diversification, stable cash flows, and substantial long-term investment opportunities Conservative Business Profile Aligns with Core Competencies Supportive Regulatory Environment • • Demand for water and wastewater is relatively inelastic Stable, predictable cash flows Complementary seasonality of cash flows and earnings between the natural gas & water utilities Aligns with our core competencies including: - Customer service Developing and managing critical distribution infrastructure safely and reliably Environmental stewardship Constructive regulatory engagement Existing constructive relationships with regulators that can be extended to water sector Federal and state agencies driving upgrades to water and wastewater infrastructure Need for Substantial Investment EPA estimates over $775 billion in water and wastewater capital needs nationally through 2040 Over long term, growing water business targeted to be an earnings driver and opportunity to deploy capital at attractive rates of return for infrastructure needs Deliberate and Disciplined Roll-Up Strategy NW Natural WATER™#37NW NATURAL WATER AT A GLANCE CASCADIA SUNCADIA GEM STATE Hoffman Water* Pelican Point Water* WASHINGTON ◇ SALMON VALLEY ○ SUNRIVER OREGON IDAHO WATER UTILITIES WASTEWATER * PENDING 37 TEXAS T&W Belle Oaks* Closed Pending (2) Total FALLS People served (1) 63,800 1,500 65,300 Connections 26,400 700 27,100 (1) People served is based on estimated average household size for service territory (2) Pending transactions may be pending application to acquire and authorization to close of utility commission. We currently expected to close these transactions in 2021 NW Natural WATER™#3838 WATER & WASTEWATER ACQUISITION OPPORTUNITIES All Water and Wastewater Systems Privately Owned Systems Systems Connections Systems Connections Pacific 4,700 5.6M 2,760 511,000 Northwest Texas 5,739 17.3M 2,400 400,000 West of Mississippi 36,500 77.3M 16,700 9.1M United 71,325 202.0M 30,160 29.0M States Numbers in table above represent permanent community water and wastewater systems Source: Bluefield NW Natural WATER™#3939 CONCLUSION#4040 STRONG LIQUIDITY NW Holdings • $100 million credit facility Extension for two additional one-year periods • Expires in 2023 • • Access to capital markets NW Natural Credit Ratings (1) S&P Global MOODY'S NW Natural • $300 million credit facility • Expires in 2023 • • AA- A2 A-1 Stable P-2 Stable Extension for two additional one-year periods Access to capital markets Solid credit ratings (1) (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 Holdings securities. AA- and A2 are secured debt ratings and A-1 and P-2 are commercial paper ratings NW Natural HOLDINGS™#4141 65 YEARS OF GROWING DIVIDENDS $1.68 $1.91 $1.92 $1.90 $1.89 $1.88 $1.87 $1.85 $1.86 $1.83 $1.79 $1.75 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 *Future dividends are subject to Board of Director discretion and approval 1 of only 3 Companies on NYSE with this Legacy 2021 Indicated* NW Natural HOLDINGS™#4242 INVESTMENT THESIS Stable and growing utility margins driven by targets over the next five years projections including: • EPS growth of 3% - 5% • Gas utility customer growth 1.4%+ Stable Utility Margins • Gas utility cap-ex $1.0 - $1.2 billion, projecting rate base growth of 4% -6% BUSINESS STRATEGY Excellent operations and efficient cost structure Commitment to safety, reliability, and high-quality service • Continued focus on efficient business operations Lower-Risk Growth • North Mist in gas utility segment provides additional regulated storage • Water strategy provides earnings diversity Stable and Growing Return Proposition Low-Risk Growth Efficient Cost Structure NW Natural HOLDINGS™#4343 APPENDIX#4444 NET INCOME BRIDGE Drivers included: • . Higher margin from new rates in Oregon and customer growth in Natural Gas Distributions segment (NGD) COVID financial effects related to fewer commercial customers and delay in recognition of late fee revenue Increased O&M from compensation & non- payroll factors Increased depreciation & general taxes from higher level of system investments February 2021 winter weather event included higher asset management revenues partially offset by a loss from the gas cost incentive sharing mechanism as a result of purchasing higher priced gas than was forecasted during the event $1.58 NI from Cont. Ops NGD Margin Excld. Feb. Event $0.52 Q1 2020 vs. Q1 2021 NGD O&M $-0.07 NGD Deprec & Gen Taxes NGD $-0.10 Taxes $-0.06 Feb. '21 Winter Event $0.09 $1.94 Other $-0.02 Net Income NW Natural HOLDINGS™#4545 NW NATURAL TERM SHEETS & DEFERRALS Deferrals and term sheets approved in all jurisdictions Oregon Washington Deferral Application Approved Approved • Term sheets provide guidelines and timing for resuming normal Key Term Sheet Dates Reinstitute Disconnections: operations Residential 6/15/20211,2 7/31/2021 • Industrial and commercial customers resumed normal collection practices in Q1 2021 with good results Residential customers expect to resume normal practices this summer Small Commercial 12/1/2020 7/31/2021 Resume Late Fees: Residential Small Commercial 10/1/20222 12/1/2020 1/27/2022 1/27/2022 1NW Natural would be permitted to send residential customers a 15-day disconnection notice on this date 2 Jurisdiction retains discretion to re-evaluate date based on ongoing pandemic and economic conditions NW NaturalⓇ#46SUPPORTIVE MECHANISMS OREGON Decoupling ⚫ 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 OREGON Weather Normalization • Stabilizes collection of fixed costs for residential and commercial customers Adjusts billings based on temperature variances compared to average weather • (WARM) Applied from December through May of each heating season OREGON WASHINGTON Purchased Gas Adjustment (PGA) • Adjusts annual rates to reflect changes in expected cost of gas commodity purchases ⚫ Includes spot purchases, contract supplies, derivatives, storage inventories, in OR gas reserves ⚫ Includes temporary rate adjustments amortizing deferred regulatory account balances • OREGON WASHINGTON Environmental Cost Recovery • Recovers environmental costs for sites attributable to each state at a rate of 96.68% in Oregon and 3.32% in Washington • Costs are subject to an annual prudence review in both Oregon and Washington, and in Oregon an earnings test1 • Allows for deferral of environmental costs in both Oregon and Washington, and in Oregon the accrual of carrying costs 46 (1) To the extent the utility earns more than its authorized ROE in Oregon 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 NW NaturalⓇ#4747 CURRENT UTILITY COMMISSIONERS Commissioners Chair OREGON COMMISSION (OPUC) Megan Decker (D) Appointed April 2017 Term ends March 2021 Letha Tawney (D) Appointed May 2018 Term ends May 2024 WASHINGTON COMMISSION (WUTC) David Danner (D) Appointed chair Feb 2013 • Current term ends Jan 2025 Ann Rendahl (D) Appointed Dec 2014 Current term ends Jan 2027 IDAHO COMMISSION (IUTC) Paul Kjellander (R) Appointed 2011 Term ends Jan 2023 Kristine Raper (D) Appointed Feb 2015 • Current term ends Jan 2027 TEXAS COMMISSION (PUCT) Peter Lake (R) Appointed April 2021 Term ends Aug. 2023 Will McAdams (R) Appointed April 2021 . • Term ends Aug. 2025 Mark Thompson (R) Appointed Dec 2019 Term ends Nov 2023 Jay Balasbas (R) Appointed Feb 2017 . • Term ends Jan 2023 Eric Anderson (R) Appointed Dec 2015 • Term ends Jan 2025 NW Natural HOLDINGS™#4848 DIVERSE RESOURCE PORTFOLIO Gas Supply • 60% supply from Canada • 40% supply from the Rockies KINGSVALE SUMAS Southern Crossing TransCanada KINGSGATEO • Natural gas serves territory through one bi-directional pipeline LNG Peaking Facilities . Portland LNG - 0.6 Bcf • Newport LNG - 1.0 Bcf Mist Gas Storage PORTLAND Mist Gas Storage Facility • Valuable asset - limited storage in the Pacific Northwest Portland LNG Newport LNG • 16 Bcf facility with 11 Bcf serving utility customers and 5 Bcf under long-term contracts Utility can recall 5 Bcf to support customer demand North Mist Storage Expansion • 4.1 Bcf expansion serves a single customer under long-term contract Malin GTN Williams OSTANFIELD Ruby Paiute Williams NW NaturalⓇ#4949 MIST STORAGE FACILITY Overview • In operation since 1989 Storage capacity at Mist 16 Bcf - 11 Bcf Core Utility 5 Bcf Interstate Storage Services Unique, Valuable 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 non-utility portion and share revenues with utility customers ⚫ 5 Bcf under long-term high-value contracts BCF 18 15 12 520630 9 1998 2000 BCF / Day 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2002 Mist Storage Capacity 2004 2006 T 2008 Mist Storage Deliverability 2010 2012 2014 T 2016 2018 1998 2000 T 2002 2004 2006 2008 ■ Utility ■Utility Recall 2010 2012 2014 T T 2016 T T 2018 2020 2020 Interstate NW NaturalⓇ#5050 NORTH MIST FACILITY • • Unique no-notice 24/7 storage service supporting gas-fired electric generating facilities that are integrating wind into energy generation mix $149 million investment was immediately included in rate base once placed into service in May 2019 Contracted under 30-year agreement with single-customer (Portland General Electric)* North Mist Port Westward 13M Pipeline Portland, Oregon Willamette River PROJECT PROFILE Storage Capacity Facility Cost 4.1 Bcf $149M Columbia River Columbia Gorge NW NaturalⓇ *Contract includes options to extend up to an additional 50 years#5151 WATER TRANSACTIONS People Company Served Connections Location Date Signed Date Closed Transaction Details Salmon Valley Water Company 1,856 928 Welches, OR 12/18/2017 11/1/2018 12/19/2017 9/13/2018 Falls Water Company 17,676 6,224 Idaho Falls, ID 6/28/2019 8/3/2020 7/2/2020 2/9/2021 5/15/2018 11/2/2018 Cascadia 5,336 1,799 Whidbey Island, WA 1/22/2019 5/1/2019 11/2/2020 11/12/2020 Falls Water Taylor Mountain Morningview Lehman & Sea View Estates/Monterra Del Bay Association Sunriver Water & Environmental 20,083 9,402 Sunriver, OR 10/12/2018 5/31/2019 12/18/2018 7/31/2019 Gem State 2,087 835 Coeur d'Alene, ID 3/21/2019 10/1/2019 9/12/2019 4/2/2020 Suncadia Water & Environmental 6,796 3,196 Cle Elum, WA 10/12/2019 1/31/2020 T&W Water 9,933 3,973 Conroe, TX 10/31/2019 3/2/2020 Spirit Lake East/Lynnwood Diamond Bar/Bar Circle S Happy Valley/Bitterroot Suncadia T&W Water Total Closed at 3/31/21 63,767 26,357 Hoffman Water 336 147 Coeur d'Alene, ID 12/18/2020 To be part of Gem State Belle Oaks Water & Sewer 125 95 Beaumont, TX 12/28/2020 To be part of T&W Pelican Point Water 1,000 500 Moses Lake, WA 3/22/2021 Total Pending 1,461 742 Total Closed & Pending 65,228 27,099 To be part of Gem State NW Natural WATERT#52PERSEVERANCE AND PROGRESS NW Natural HOLDINGS™