Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The following table presents the absolute notional amounts related to open positions on NW Natural derivative instruments:

	September 30,				December 31,
In thousands	2019		2018		2018
Natural gas (in therms):
Financial	752,090		513,850		408,850
Physical	751,950		760,925		472,275
Foreign exchange	$	6,446	$	7,184	$	6,936

Income Statement Presentation of Derivative Instruments

The following table reflects the income statement presentation for the unrealized gains and losses from NW Natural's derivative instruments, which also represents all derivative instruments at NW Holdings:

	Three Months Ended September 30,
	2019						2018
In thousands	Natural gas commodity			Foreign exchange			Natural gas commodity			Foreign exchange
Benefit (expense) to cost of gas	$	2,391		$	(133	)	$	4,473		$	210
Operating revenues (expense)	2,002			—			(286		)	—
Amounts deferred to regulatory accounts on balance sheet	(4,102		)	133			(4,285		)	(210		)
Total gain (loss) in pre-tax earnings	$	291		$	—		$	(98	)	$	—

	Nine Months Ended September 30,
	2019						2018
In thousands	Natural gas commodity			Foreign exchange			Natural gas commodity			Foreign exchange
Benefit (expense) to cost of gas	$	4,255		$	24		$	1,384		$	—
Operating revenues (expense)	36			—			(122		)	—
Amounts deferred to regulatory accounts on balance sheet	(4,284		)	(24		)	(1,305		)	—
Total gain (loss) in pre-tax earnings	$	7		$	—		$	(43	)	$	—

Table of Estimated Collateral Calls Table

Based upon current commodity financial swap and option contracts outstanding, which reflect unrealized losses of $2.3 million at September 30, 2019, we have estimated the level of collateral demands, with and without potential adequate assurance calls, using current gas prices and various credit downgrade rating scenarios for NW Natural as follows:

			Credit Rating Downgrade Scenarios
In thousands	(Current Ratings) A+/A3		BBB+/Baa1		BBB/Baa2		BBB-/Baa3		Speculative
With Adequate Assurance Calls	$	—	$	—	$	—	$	—	$	(1,476	)
Without Adequate Assurance Calls	—		—		—		—		(1,476		)