NW Natural Holdings Elects Justin B. Palfreyman as Next CEO

Rhea-AI Summary

NW Natural Holdings has announced the election of Justin B. Palfreyman as the next President and CEO of Northwest Natural Holdings and CEO of NW Natural, effective April 1, 2025. Palfreyman will succeed retiring CEO David H. Anderson, who has led the company since 2016.

Palfreyman, who joined the company in 2016, has served in various executive roles including business development, strategy, and president of NW Natural Water. He was promoted to NW Natural Holdings' and NW Natural's president in May 2023. His background includes investment banking experience in power, energy, and infrastructure sectors, along with an MBA from The University of Chicago Booth School of Business.

Under Anderson's leadership, the company established its water and renewables businesses, expanded gas utility operations into Texas, and focused on decarbonization while maintaining growth.

Positive

• Smooth leadership transition with internal candidate promotion
• New CEO brings diverse experience in strategy, business development, and water operations
• Company reports strong strategic and financial position

Negative

• None.

Insights

Financial Analyst

This CEO succession at NW Natural Holdings reflects a carefully orchestrated leadership transition that maintains strategic continuity while potentially enhancing expertise in key growth areas. Palfreyman's progression through multiple executive roles since 2016, culminating in his 2023 promotion to president, indicates a methodical preparation for the top position. For a mid-cap utility ($1.65B market cap), leadership transitions carry significant weight given the regulated nature of core operations and long-term capital planning horizons.

The outgoing CEO Anderson's legacy is marked by strategic diversification beyond the traditional natural gas distribution business. By establishing platforms in water utilities, renewables, and expanding gas operations geographically into Texas, Anderson transformed NW Natural from a regional gas utility into a multi-business holding company. These initiatives represent attempts to mitigate regulatory and climate-related risks to the core gas business while creating new growth vectors.

Palfreyman's background merits attention. His experience leading the water subsidiary provides firsthand knowledge of a growth segment, while his investment banking background in power, energy and infrastructure suggests strong capital allocation capabilities - important for a utility balancing growth investments against dividend expectations. His dual advanced degrees in business and public policy create a valuable skill set for navigating the increasingly complex regulatory environment facing gas utilities.

The April 1 transition date provides markets with clarity and ample time to digest the change. Palfreyman's emphasis on continuing growth across all four business segments while maintaining focus on "customer service and safety" suggests evolutionary rather than revolutionary changes to strategy. For investors, this leadership transition appears designed to maintain strategic momentum while potentially bringing fresh perspectives to execution.

Palfreyman to succeed the retiring David H. Anderson

PORTLAND, Ore.--(BUSINESS WIRE)-- The Board of Directors of NW Natural Holdings and NW Natural elected Justin B. Palfreyman to the position of President and Chief Executive Officer of Northwest Natural Holdings and Chief Executive Officer of NW Natural, effective April 1, 2025. Palfreyman will succeed David H. Anderson, who is retiring.

The Board of Directors of NW Natural Holdings and NW Natural elected Justin B. Palfreyman to the position of President and Chief Executive Officer of Northwest Natural Holdings and Chief Executive Officer of NW Natural, effective April 1, 2025. (Photo: Business Wire)

“I am honored to have the opportunity to lead this great company,” Palfreyman said. “Our employees, customers and communities have benefited greatly from David’s tremendous leadership since 2016, and I am excited to build off of what he and the team accomplished during his tenure. We are in a strong strategic and financial position, and I am eager to lead NW Natural into its next chapter, marked by growth across our four businesses and a continued focus on our culture of customer service and safety.”

Malia H. Wasson, chair of NW Natural Holdings’ Board, praised both Palfreyman and Anderson: “Justin has proven that he has the right skills and leadership capacity to succeed as CEO. His many strengths have been evident throughout his time here, beginning with his roles in strategy and business development, as president of NW Natural Water, and especially during his last two years as president of NW Natural Holdings. The Board is very excited to support Justin as he moves into his new role.”

Wasson continued, "It would be difficult to overstate David’s impact on the company. He built the platform for our water and renewables businesses, expanded our gas utility operations into Texas, and set the vision for decarbonizing while continuing to grow the company. He did all of this despite a number of challenges and without ever wavering in his commitment to the company’s core values. David is leaving the company in both great shape and good hands.”

Anderson became NW Natural Holdings’ CEO in August of 2016 after serving as president and chief operating officer (COO). He came to the company in 2004, and his tenure has included service as executive vice president and senior vice president and chief financial officer.

“I am grateful for the privilege I’ve had to lead NW Natural Holdings and the talented, committed people who work here. It is very important to our board and to me that we position the company for future success, and I believe that we have done that with the election of Justin to succeed me. His strong industry experience, strategic mindset, and excellent leadership skills will serve him and the company well. He will be a terrific CEO; our people—my incredible NW Natural colleagues—deserve nothing less.”

Palfreyman joined the company in 2016 and since then has served in various executive roles over business development, strategy, and president of NW Natural Water. In May 2023, he was promoted to NW Natural Holdings’ and NW Natural’s president. Prior to joining the company, Palfreyman served in various roles in investment banking covering the power, energy and infrastructure sector. He graduated from Pacific Lutheran University with a Bachelor of Business Administration, holds a Master of Business Administration (MBA) from The University of Chicago Booth School of Business, and holds a Master of Public Policy (MPP) from The University of Chicago Irving B. Harris School of Public Policy.

About NW Natural Holdings

Northwest Natural Holding Company (NYSE: NWN) (NW Natural Holdings) is headquartered in Portland, Oregon and has been doing business for over 165 years. It owns Northwest Natural Gas Company (NW Natural), SiEnergy Operating (SiEnergy), NW Natural Water Company (NW Natural Water), NW Natural Renewables Holdings (NW Natural Renewables), and other business interests.

NW Natural Holdings provides critical energy and delivers essential water and wastewater services to nearly one million customers across seven states. We have a longstanding commitment to safety, environmental stewardship, and the energy transition, and taking care of our employees and communities. NW Natural Holdings was recognized by Ethisphere® for three years running as one of the World’s Most Ethical Companies®. NW Natural consistently leads the industry with high J.D. Power & Associates customer satisfaction scores. Learn more in our latest Community and Sustainability Report at ir.nwnaturalholdings.com/sustainability.

NW Natural is a local distribution company that currently provides natural gas service to approximately 2 million people in more than 140 communities through approximately 806,000 meters in Oregon and Southwest Washington with one of the most modern pipeline systems in the nation. NW Natural owns and operates 21.6 Bcf of underground gas storage capacity in Oregon.

SiEnergy is one of the fastest growing natural gas distribution utilities in the nation, serving approximately 70,000 customers in the greater metropolitan areas of Houston, Dallas, and Austin, Texas.

NW Natural Water provides water distribution and wastewater services to communities throughout the Pacific Northwest, Texas, Arizona, and California. Today NW Natural Water serves an estimated 190,000 people through approximately 76,000 meters and provides operation and maintenance services to an additional 25,000 connections. Learn more about our water business at nwnaturalwater.com.

NW Natural Renewables is committed to leading in the energy transition by providing renewable fuels. Learn more at nwnaturalrenewables.com.

Additional information is available at nwnaturalholdings.com.

“World’s Most Ethical Companies” and “Ethisphere” names and marks are registered trademarks of Ethisphere LLC

View source version on businesswire.com: https://www.businesswire.com/news/home/20250303019400/en/

Investor Contact:

Nikki Sparley

Phone: 503-721-2530

Email: nikki.sparley@nwnatural.com

Media Contact:

David Roy

Phone: 503-610-7157

Email: david.roy@nwnatural.com

Source: NW Natural

FAQ

When will Justin Palfreyman become CEO of NW Natural Holdings (NWN)?

Justin Palfreyman will assume the role of President and CEO of NW Natural Holdings and CEO of NW Natural on April 1, 2025.

What are Justin Palfreyman's previous roles at NW Natural (NWN)?

Since joining in 2016, Palfreyman has served in executive roles in business development, strategy, president of NW Natural Water, and most recently as president of NW Natural Holdings since May 2023.

What major achievements were accomplished under David Anderson's leadership at NWN?

Under Anderson's leadership since 2016, NW Natural established water and renewables businesses, expanded gas utility operations to Texas, and focused on decarbonization while maintaining growth.

What is Justin Palfreyman's educational background for leading NWN?

Palfreyman holds a Bachelor of Business Administration from Pacific Lutheran University, an MBA from The University of Chicago Booth School of Business, and a Master of Public Policy from The University of Chicago.