Segment Information

6 Months Ended

Jun. 30, 2011

Disclosure Segment Information [Abstract]

Segment Information Text Block

4.       Segment Information

We operate in two primary reportable business segments, local gas distribution and gas storage.  We also have other investments and business activities not specifically related to one of these two reporting segments, which we aggregate and report as “other.”  We refer to our local gas distribution business as the “utility,” and our “gas storage” and “other” business segments as “non-utility.” Our gas storage segment includesNWN Gas Storage, a wholly-owned subsidiary of NWN Energy,Gill Ranch, a wholly-owned subsidiary of NWN Gas Storage, the non-utility portion of our Mist underground storage facility in Oregon (Mist) and third-party optimization services. Our “other” segment includes NNG Financial and our equity investment in PGH which is pursuing development ofthe Palomar pipeline project. For further discussion of our segments, see Note 4 in our 2010 Form 10-K.

The following table presents summary financial information about the reportable segments for the three andsix months ended June 30, 2011 and 2010.  Inter-segment transactions were insignificant.

	Three Months Ended June 30,
			Non-Utility
Thousands		Utility		Gas Storage		Other		Total
2011
Net operating revenues	$	60,048	$	7,197	$	(13)	$	67,232
Depreciation and amortization		15,946		1,600		-		17,546
Income from operations		9,667		3,017		(31)		12,653
Net income (loss)		1,090		1,315		(212)		2,193
2010
Net operating revenues	$	66,939	$	5,206	$	48	$	72,193
Depreciation and amortization		15,691		335		-		16,026
Income from operations		16,271		3,925		22		20,218
Net income		4,641		2,122		125		6,888
	Six Months Ended June 30,
			Non-Utility
Thousands		Utility		Gas Storage		Other		Total
2011
Net operating revenues	$	189,210	$	12,501	$	29	$	201,740
Depreciation and amortization		31,860		2,995		-		34,855
Income from operations		85,791		4,733		(9)		90,515
Net income (loss)		41,220		2,003		(257)		42,966
Total assets at June 30, 2011		2,247,349		252,393		22,252		2,521,994
2010
Net operating revenues	$	192,412	$	10,617	$	90	$	203,119
Depreciation and amortization		31,257		670		-		31,927
Income from operations		92,853		8,436		39		101,328
Net income		45,533		4,623		340		50,496
Total assets at June 30, 2010		2,143,138		229,919		22,504		2,395,561
Total assets at December 31, 2010	$	2,310,388	$	282,945	$	23,283	$	2,616,616