The following is management's assessment ofNW 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 endedJune 30, 2022 and 2021 ofNW Holdings , the substantial majority of which consist of the operating results of NW Natural. When significant activity exists atNW 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 withNW 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 ofEnergy Corp , the NGD-portion of NW Natural's Mist storage facility inOregon , andNW Natural RNG Holding Company, LLC .NW Natural RNG Holding Company, LLC holds an investment inLexington 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 atNW Holdings include NNG Financial's investment in Kelso-Beaver Pipeline (KB Pipeline) and NWN Water's investment inAvion 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 withU.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 onApril 1, 2022 ; •Added nearly 10,200 meters during the past twelve months for a growth rate of 1.3% atJune 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 theOregon general rate case; and •Announced two water and wastewater acquisitions near our existing service territory inWashington state and closed one water acquisition inTexas .
Key quarter-to-date financial highlights for
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