EXHIBIT (11)

NORTHWEST NATURAL GAS COMPANY

Statement re: Computation of Per Share Earnings

(Unaudited)

Thousands, except per share amounts	Three Months Ended June 30,					Six Months Ended June 30,
	2004			2003		2004		2003
Net income (loss)	$	(716	)	$	4,462	$	31,896	$	30,866
Redeemable preferred stock dividend requirements		—			147		—		294
Earnings (loss) applicable to common stock - basic		(716	)		4,315		31,896		30,572
Debenture interest less taxes		61			70		123		141
Earnings (loss) applicable to common stock - diluted	$	(655	)	$	4,385	$	32,019	$	30,713
Average common shares outstanding - basic		27,257			25,682		26,615		25,649
Stock options		45			39		52		33
Convertible debentures		280			320		280		320
Average common shares outstanding - diluted		27,582			26,041		26,947		26,002
Earnings (loss) per share of common stock - basic	$	(0.03	)	$	0.17	$	1.20	$	1.19
Earnings (loss) per share of common stock - diluted	$	(0.03	)	$	0.17	$	1.19	$	1.18

For the three months ended June 30, 2004 and 2003, 184,800 shares and 84,000 shares, respectively, representing the number of stock options the exercise prices for which were greater than the average market prices for such periods, were excluded from the calculation of diluted earnings per share because the effect was antidilutive. For the six months ended June 30, 2004 and 2003, 184,800 and 233,000 shares, respectively, were excluded from the calculation of diluted earnings for this reason.