On October 20, 2025, Regency Capital Management Inc. filed a document with the U.S. Securities and Exchange Commission. The message was simple: they had liquidated entirely their $2.94 million position in Northwest Natural Holding Company (NWN +0.97%). No gradual exits. No half-measures. A clean break.
What Happened
The numbers are unambiguous. 74,078 shares vanished from Regency’s portfolio between July and September 2025. The transaction, valued at $2.94 million using the quarter’s average price, erased any trace of NWN from their holdings. This wasn’t a minor adjustment. This was surgical.
What Else to Know
For context: NWN represented 1.5% of Regency’s reportable assets. Now, their top holdings read like a who’s who of corporate fortresses – Berkshire Hathaway (7.2%), Markel (6.2%), Costco (6.2%). These are companies with pricing power, moats, and volatility-resistant models. Northwest Natural? Not so much.
- BRK-B: $15.20 million (7.2% of AUM)
- MKL: $13.05 million (6.2% of AUM)
- COST: $13.02 million (6.2% of AUM)
- IAU: $12.57 million (6.0% of AUM)
- CB: $11.26 million (5.4% of AUM)
NWN’s share price stood at $46.66 on October 20 – up 15.2% year-over-year. A decent showing, yet 5.43 percentage points below the S&P 500’s pace. Not disastrous. But not compelling.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.24 billion |
| Net Income (TTM) | $103.25 million |
| Dividend Yield | 4.10% |
| Price (as of market close 2025-10-20) | $46.66 |
Company Snapshot
Northwest Natural operates where bureaucracy and infrastructure intersect. Natural gas distribution in Oregon and Washington. Water utilities in Texas. Renewable energy projects as window dressing. Their business model depends on regulatory approval, not market forces. They serve 786,000 gas meters – a captive audience. Dividends flow steadily, funded by predictable cash flows. Stability, yes. Growth? That’s another matter.
This is a company that thrives on inertia. Regulated rate structures guarantee returns. Customers have no alternatives. Innovation isn’t necessary – compliance is. Their “renewable natural gas” initiatives? Modest experiments, not strategic pivots. When you control pipelines and water mains, disruption feels more like a shareholder presentation slide than a boardroom priority.
Fundamental Flaws
Regency’s exit speaks louder than NWN’s dividend yield. Let’s examine the arithmetic: 18% total return over three years versus the S&P 500’s 84%. A 5.8% compound annual growth rate versus the market’s 22.6%. These numbers aren’t just poor – they’re symptomatic.
Utilities are supposed to be safe havens during storms. But when the storm is stagnation, their very stability becomes a trap. Climate pressures will demand infrastructure upgrades without rate increases. Political winds threaten regulated profits. And the dividend? A 4.10% yield feels less like generosity and more like desperation to attract investors who’ve forgotten what growth looks like.
Regency didn’t panic. They calculated. Selling the entire position wasn’t a mistake – it was a statement. When a company’s best argument is “at least we’re steady,” the writing’s on the wall. Retail investors would do well to read it.
Glossary
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or institution.
Liquidated: Sold off an entire investment position, reducing ownership to zero.
Reportable Assets: Assets that must be disclosed in regulatory filings, typically above a certain threshold.
Dividend Yield: Annual dividends paid by a company as a percentage of its share price.
Regulated Utility: A company whose rates and operations are overseen by government agencies to protect consumers.
Gas Storage: Facilities or services for storing natural gas for future distribution or sale.
Asset Management (utility context): Managing physical infrastructure and resources to maximize efficiency and reliability in utility operations.
Non-regulated: Business activities not subject to government rate or service regulation.
Renewable Natural Gas: Methane produced from organic sources, used as a cleaner alternative to conventional natural gas.
Filing Period: The specific time frame covered by a regulatory or financial filing.
Outperforming: Achieving a higher return or growth rate compared to a benchmark or index.
TTM: The 12-month period ending with the most recent quarterly report.
Investors would do well to remember: stability without adaptation is just slow decay. 🧭
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2025-10-27 01:13