WILLIAMSVILLE, N.Y., Nov. 01, 2023 (GLOBE
NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the
“Company”) (NYSE:NFG) today announced consolidated results for the
three months and fiscal year ended September 30, 2023.
FISCAL 2023 FOURTH QUARTER
SUMMARY
- GAAP net income of
$73.7 million, or $0.80 per share, compared to GAAP net income of
$158.1 million, or $1.71 per share, in the prior year.
- Adjusted operating
results of $72.2 million, or $0.78 per share, compared to $109.3
million, or $1.19 per share, in the prior year (see non-GAAP
reconciliation on page 2 for fourth quarter and fiscal 2023).
- Both E&P
segment net production and Gathering segment revenue increased by
7% versus the prior year, driven by continued strong operational
execution in Appalachia.
- Supply Corporation
entered into a precedent agreement with Seneca for its Tioga
Pathway Project, which is an estimated $90 million modernization
and expansion project that will add 190,000 Dth per day of firm
transportation takeaway capacity from northwest Tioga County,
Pennsylvania.
FISCAL 2023 HIGHLIGHTS
- Generated
consolidated net cash provided by operating activities of $1.24
billion for fiscal 2023, with free cash flow of $275 million (see
non-GAAP reconciliation on page 27 for fiscal 2023).
- Increased the
shareholder dividend for the 53rd consecutive year to an
annual rate of $1.98 per share, an increase of 4.2%, continuing the
Company’s long history of consistently returning capital to
shareholders.
- Distribution
Corporation settled a rate proceeding in Pennsylvania, which will
increase annual base rate delivery revenues by $23 million.
- Seneca Resources
bolstered its deep inventory of highly economic development
locations in its Eastern Development Area with the acquisition of
approximately 39,000 net acres in Tioga and Lycoming counties.
- NFG Midstream
achieved certification of 100% of its assets under Equitable
Origin’s EO100TM Standard for Responsible Energy
Development, becoming the first gathering or midstream company to
receive this ESG-focused certification.
MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive
Officer of National Fuel Gas Company, stated: “Despite the
headwinds of lower natural gas prices in fiscal 2023, National Fuel
delivered strong results, both financially and operationally. As we
move into fiscal 2024, the combination of a strong outlook for
long-term growth in our regulated businesses, increasing capital
efficiency in our non-regulated operations, and expectations of
improving natural gas price realizations position us well to
deliver long-term value to our shareholders.”
RECONCILIATION OF GAAP EARNINGS TO
ADJUSTED OPERATING RESULTS
|
Three Months Ended |
|
Fiscal Year Ended |
|
September 30, |
|
September 30, |
(in thousands except per share amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Reported GAAP
Earnings |
$ |
73,677 |
|
|
$ |
158,143 |
|
|
$ |
476,866 |
|
|
$ |
566,021 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset (E&P) |
|
(2,803 |
) |
|
|
4,395 |
|
|
|
899 |
|
|
|
4,395 |
|
Tax impact of unrealized (gain) loss on derivative asset |
|
775 |
|
|
|
(1,203 |
) |
|
|
(240 |
) |
|
|
(1,203 |
) |
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
719 |
|
|
|
1,532 |
|
|
|
(913 |
) |
|
|
11,625 |
|
Tax impact of unrealized (gain) loss on other investments |
|
(151 |
) |
|
|
(322 |
) |
|
|
192 |
|
|
|
(2,441 |
) |
Reversal of deferred tax valuation allowance |
|
— |
|
|
|
(24,850 |
) |
|
|
— |
|
|
|
(24,850 |
) |
Remeasurement of deferred income taxes from Pennsylvania state
income tax rate reduction |
|
— |
|
|
|
(28,406 |
) |
|
|
— |
|
|
|
(28,406 |
) |
Items impacting comparability from West Coast asset sale (E&P)
(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
41,589 |
|
Tax impact of items impacting comparability from West Coast asset
sale (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,533 |
) |
Reduction of other post-retirement regulatory liability
(Utility) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(18,533 |
) |
Tax impact of reduction of other post-retirement regulatory
liability |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,892 |
|
Adjusted Operating
Results |
$ |
72,217 |
|
|
$ |
109,289 |
|
|
$ |
476,804 |
|
|
$ |
541,556 |
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
$ |
0.80 |
|
|
$ |
1.71 |
|
|
$ |
5.17 |
|
|
$ |
6.15 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset, net of tax
(E&P) |
|
(0.02 |
) |
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.03 |
|
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
|
0.01 |
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
0.10 |
|
Reversal of deferred tax valuation allowance |
|
— |
|
|
|
(0.27 |
) |
|
|
— |
|
|
|
(0.27 |
) |
Remeasurement of deferred income taxes from Pennsylvania state
income tax rate reduction |
|
— |
|
|
|
(0.31 |
) |
|
|
— |
|
|
|
(0.31 |
) |
Items impacting comparability from West Coast asset sale, net of
tax (E&P) (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.34 |
|
Reduction of other post-retirement regulatory liability, net of tax
(Utility) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.16 |
) |
Rounding |
|
(0.01 |
) |
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Adjusted Operating
Results Per Share |
$ |
0.78 |
|
|
$ |
1.19 |
|
|
$ |
5.17 |
|
|
$ |
5.88 |
|
(1) |
Refer to non-GAAP reconciliation on page 24 for a separate breakout
of items impacting comparability from the West Coast asset
sale. |
|
|
FISCAL 2024 GUIDANCE UPDATE
National Fuel is revising its fiscal 2024
earnings guidance to reflect updated forecast assumptions and
projections since the Company’s preliminary guidance range was
announced in August 2023. The Company is now projecting that
earnings will be within the range of $5.40 to $5.90 per share, an
increase of 9% from the Company’s 2023 adjusted operating results
at the midpoint of the updated 2024 guidance range.
Consistent with preliminary guidance, the
Company is assuming that NYMEX natural gas prices will average
$3.25 per MMBtu for the fiscal year. For guidance purposes, the
Company’s updated natural gas price projections approximate the
current NYMEX forward curve and consider the impact of local sales
point differentials and new physical firm sales, transportation,
and financial hedge contracts.
Seneca currently has firm sales contracts in
place for approximately 89% of its projected fiscal 2024
Appalachian production, limiting its exposure to in-basin markets.
Approximately 69% of Seneca’s expected Appalachian production is
either matched by a financial hedge, including a combination of
swaps and no-cost collars, or was entered into at a fixed price.
Seneca’s depreciation, depletion and amortization guidance range
was also revised to reflect current expectations for the fiscal
year.
The Company’s consolidated and individual
segment capital expenditures guidance remain unchanged from the
preliminary guidance. Other guidance assumptions remain largely
unchanged from the previous guidance. The details are outlined in
the table on page 7.
DISCUSSION OF FOURTH QUARTER RESULTS BY
SEGMENT
The following earnings discussion of each
operating segment for the quarter ended September 30, 2023 is
summarized in a tabular form on pages 8 and 9 of this report
(earnings drivers for the fiscal years ended September 30, 2023 are
summarized on pages 10 and 11). It may be helpful to refer to those
tables while reviewing this discussion.
Note that management defines Adjusted Operating
Results as reported GAAP earnings adjusted for items impacting
comparability, and Adjusted EBITDA as reported GAAP earnings before
the following items: interest expense, income taxes, depreciation,
depletion and amortization, other income and deductions,
impairments, and other items reflected in operating income that
impact comparability.
Upstream Business
Exploration and Production Segment
The Exploration and Production segment
operations are carried out by Seneca Resources Company, LLC
(“Seneca”). Seneca explores for, develops and produces primarily
natural gas reserves in Pennsylvania.
|
Three Months Ended |
|
September 30 |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
Variance |
GAAP Earnings |
$ |
36,772 |
|
|
$ |
116,077 |
|
|
$ |
(79,305 |
) |
Unrealized (gain) loss on
derivative asset, net of tax |
|
(2,028 |
) |
|
|
3,192 |
|
|
|
(5,220 |
) |
Reversal of deferred tax
valuation allowance |
|
— |
|
|
|
(28,589 |
) |
|
|
28,589 |
|
Remeasurement of deferred
income tax from Pennsylvania state income tax rate reduction |
|
— |
|
|
|
(16,152 |
) |
|
|
16,152 |
|
Adjusted Operating
Results |
$ |
34,744 |
|
|
$ |
74,528 |
|
|
$ |
(39,784 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
132,641 |
|
|
$ |
166,238 |
|
|
$ |
(33,597 |
) |
Seneca’s fourth quarter GAAP earnings decreased $79.3 million
versus the prior year. Excluding several items impacting
comparability as described below, Seneca's earnings decreased $39.8
million, with higher natural gas production more than offset by
lower realized natural gas prices, higher operating expenses and
higher income tax expense.
Last year’s fourth quarter earnings included two
one-time items related to state deferred income taxes that impacted
comparability as shown in the table above. These items consisted of
a reversal of a $28.6 million valuation allowance on deferred tax
assets related to certain state net operating loss and credit
carryforwards, along with a $16.2 million benefit from the
remeasurement of state deferred income taxes related to a series of
reductions in the Pennsylvania state corporate income tax rate that
was signed into law in July 2022. Earnings were also impacted by an
unrealized gain of $2.8 million ($2.0 million after-tax) recognized
during the current-year fourth quarter related to an increase in
the fair value of the contingent consideration Seneca received in
connection with the June 2022 divestiture of its California assets.
In the prior-year's fourth quarter, Seneca recorded an unrealized
loss of $4.4 million ($3.2 million after-tax) on that contingent
consideration.
During this year's fourth quarter, Seneca
produced 93.8 Bcfe, an increase of 5.9 Bcfe, or 7%, from the prior
year, despite the impact of approximately 2 Bcfe of price-related
curtailments due to low in-basin pricing.
Seneca’s average realized natural gas price,
after the impact of hedging and transportation costs, was $2.33 per
Mcf, a decrease of $0.51 per Mcf from the prior year. Lower natural
gas prices, before the impact of hedging, were partially offset by
an increase in the weighted average hedge price compared to the
prior-year fourth quarter.
On a per unit basis, lease operating and
transportation expense (“LOE”) was $0.69 per Mcfe, a decrease of
$0.02 per Mcfe from the prior year. On an absolute basis, LOE
increased $1.7 million primarily due to higher water management
costs, partially offset by lower rental and workover expenses. An
increase in transportation and gathering costs as a result of
increased production also contributed to the increase in absolute
LOE. LOE includes $51.2 million for gathering and compression
services from NFG Midstream to connect Seneca’s production to sales
points along interstate pipelines.
General and administrative (“G&A”) expense
remained flat at $0.18 per Mcfe compared to the prior year. On an
absolute basis, Seneca’s G&A expense increased $1.5 million
primarily due to an increase in labor-related costs.
Depreciation, depletion and amortization
(“DD&A”) expense was $0.71 per Mcfe, an increase of $0.11 per
Mcfe from the prior year. Absolute DD&A expense increased
$13.4 million due to higher natural gas production and a higher per
unit DD&A rate. The higher rate was driven by an increase in
Seneca's full cost pool due to a combination of higher capitalized
costs and an increase in estimated future development costs related
to proved undeveloped wells.
Other taxes decreased $1.7 million largely
attributable to lower Impact Fees in Pennsylvania due to the
decline in NYMEX natural gas prices.
Excluding the impact of last year’s fourth
quarter one-time items impacting comparability shown in the table
above, the increase in Seneca’s effective tax rate was primarily
driven by higher state income tax expense.
Proved Reserves Year-End
Update
Seneca’s total proved reserves at September 30,
2023 were 4,536 Bcfe, an increase of 364 Bcfe, or 9%, from
September 30, 2022. Seneca’s proved developed reserves at the end
of fiscal 2023 were 3,551 Bcfe, representing 78% of total proved
reserves, compared to 79% a year ago. In fiscal 2023, Seneca added
670 Bcfe of proved reserve extensions and discoveries, 34 Bcfe of
proved developed reserves as a result of two separate upstream
asset purchases during fiscal 2023, and 32 Bcfe of net positive
revisions due primarily to improvements in well performance and
changes in development plans. Seneca replaced 198% of its fiscal
2023 production.
Midstream Businesses
Pipeline and Storage Segment
The Pipeline and Storage segment’s operations
are carried out by National Fuel Gas Supply Corporation (“Supply
Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline
and Storage segment provides natural gas transportation and storage
services to affiliated and non-affiliated companies through an
integrated system of pipelines and underground natural gas storage
fields in western New York and Pennsylvania.
|
Three Months Ended |
|
September 30 |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
Variance |
GAAP Earnings |
$ |
23,354 |
|
|
$ |
25,320 |
|
|
$ |
(1,966 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
56,236 |
|
|
$ |
59,819 |
|
|
$ |
(3,583 |
) |
The Pipeline and Storage segment’s fourth quarter GAAP earnings
decreased $2.0 million versus the prior year primarily due to lower
operating revenues, partially offset by an increase in other
income. The decrease in operating revenues of $3.7 million was
primarily attributable to contract expirations that occurred
earlier in the fiscal year, partially offset by an increase in new
short-term contracts. The increase in other income of $1.1 million
was primarily attributable to a higher weighted average interest
rate on intercompany short-term notes receivable.
Gathering Segment
The Gathering segment’s operations are carried
out by National Fuel Gas Midstream Company, LLC’s limited liability
companies. The Gathering segment constructs, owns and operates
natural gas gathering pipelines and compression facilities in the
Appalachian region, which delivers Seneca and other non-affiliated
Appalachian production to the interstate pipeline system.
|
Three Months Ended |
|
September 30 |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
Variance |
GAAP Earnings |
$ |
26,517 |
|
|
$ |
31,224 |
|
|
$ |
(4,707 |
) |
Reversal of deferred tax
valuation allowance |
|
— |
|
|
|
3,739 |
|
|
|
(3,739 |
) |
Remeasurement of deferred
income tax from Pennsylvania state income tax rate reduction |
|
— |
|
|
|
(11,856 |
) |
|
|
11,856 |
|
Adjusted Operating
Results |
$ |
26,517 |
|
|
$ |
23,107 |
|
|
$ |
3,410 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
46,874 |
|
|
$ |
43,335 |
|
|
$ |
3,539 |
|
The Gathering segment’s fourth quarter GAAP earnings decreased $4.7
million versus the prior year. Similar to our Exploration and
Production segment, last year’s fourth quarter earnings included
two one-time items impacting comparability shown in the table above
related to state deferred income taxes that did not recur this
year. Excluding these items, the Gathering segment’s earnings
increased $3.4 million primarily due to higher operating revenues.
Operating revenues increased $3.9 million, or 7%, which was the
result of a 12.6 Bcf increase in gathered volumes due to an
increase in natural gas throughput from both non-affiliated parties
and Seneca.
Downstream Business
Utility Segment
The Utility segment operations are carried out
by National Fuel Gas Distribution Corporation (“Distribution”),
which sells or transports natural gas to customers located in
western New York and northwestern Pennsylvania.
|
Three Months Ended |
|
September 30 |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
Variance |
GAAP Earnings |
$ |
(7,179 |
) |
|
$ |
(10,852 |
) |
|
$ |
3,673 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
6,693 |
|
|
$ |
6,270 |
|
|
$ |
423 |
|
The Utility segment’s fourth quarter GAAP net loss was $3.7 million
lower than the net loss in the prior year’s fourth quarter due to
higher customer margins (operating revenues less purchased gas
sold), a decrease in non-service pension and OPEB costs, higher
other income and lower income tax expense, partially offset by
increases in operation and maintenance (“O&M”) expense and
interest expense.
The increase in customer margin of $1.6 million
was due primarily to the implementation of the recent Pennsylvania
rate case settlement, which increased base rates by $23 million
annually, effective August 1, 2023. Also contributing to the
increase were adjustments related to certain regulatory rate and
cost recovery mechanisms subject to annual reconciliation and
higher revenues from the Company’s system modernization tracking
mechanisms in its New York service territory. These increases were
partially offset by a $1.1 million reduction in base rates in New
York, which, consistent with prior quarters, was the result of a
rate proceeding that temporarily reduced the Utility’s recovery of
pension and other post-employment benefit (“OPEB”) expenses to zero
effective October 1, 2022. In addition to lowering rates, the
proceeding mandated a corresponding decrease in pension and OPEB
expenses, most of which had been previously recorded in “below the
line” non-service pension and OPEB costs.
The increase in other income of $1.0 million was
primarily attributable to interest earned on deferred gas costs.
O&M expense increased by $1.7 million, primarily driven by
higher labor-related costs. Interest expense increased $1.0 million
due to the Company’s long-term debt issuance in May 2023.
Corporate and All Other
The Company’s operations that are included in
Corporate and All Other generated a combined net loss of $5.8
million in the current year fourth quarter, which was $2.2 million
higher than the combined net loss of $3.6 million in the prior-year
fourth quarter. The increase in net loss was primarily driven by
higher O&M expense as a result of an increase in professional
services, which was partially offset by a lower amount of
unrealized losses on investment securities recognized in the
current quarter as compared to the prior-year fourth quarter.
EARNINGS TELECONFERENCE
The Company will host a conference call on
Thursday, November 2, 2023, at 10 a.m. Eastern Time to discuss this
announcement. To pre-register for the call (recommended), please
visit https://www.netroadshow.com/events/login?show=2be14adf&confId=56623.
After registering, you will receive your access details via email.
To join by telephone on the day of the call, dial U.S. toll free
1-833–470–1428 and provide Participant Access Code 568657. The
teleconference will also be simultaneously webcast online and can
be accessed on the NFG Investor Relations website at investor.nationalfuelgas.com. A
telephone replay of the teleconference call will be available
through the end of the day on Thursday, November 9, 2023. To access
the replay, dial U.S. toll free 1-866-813-9403 and provide Replay
Access Code 693074.
National Fuel is an integrated energy company
reporting financial results for four operating segments:
Exploration and Production, Pipeline and Storage, Gathering, and
Utility. Additional information about National Fuel is available at
www.nationalfuelgas.com.
|
|
|
Analyst
Contact: |
Brandon J.
Haspett |
716-857-7697 |
Media
Contact: |
Karen L.
Merkel |
716-857-7654 |
|
|
|
|
|
|
Certain statements contained herein, including
statements identified by the use of the words “anticipates,”
“estimates,” “expects,” “forecasts,” “intends,” “plans,”
“predicts,” “projects,” “believes,” “seeks,” “will,” “may” and
similar expressions, and statements which are other than statements
of historical facts, are “forward-looking statements” as defined by
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, which
could cause actual results or outcomes to differ materially from
those expressed in the forward-looking statements. The Company’s
expectations, beliefs and projections contained herein are
expressed in good faith and are believed to have a reasonable
basis, but there can be no assurance that such expectations,
beliefs or projections will result or be achieved or accomplished.
In addition to other factors, the following are important factors
that could cause actual results to differ materially from those
discussed in the forward-looking statements: changes in laws,
regulations or judicial interpretations to which the Company is
subject, including those involving derivatives, taxes, safety,
employment, climate change, other environmental matters, real
property, and exploration and production activities such as
hydraulic fracturing; governmental/regulatory actions, initiatives
and proceedings, including those involving rate cases (which
address, among other things, target rates of return, rate design,
retained natural gas and system modernization),
environmental/safety requirements, affiliate relationships,
industry structure, and franchise renewal; the Company’s ability to
estimate accurately the time and resources necessary to meet
emissions targets; governmental/regulatory actions and/or market
pressures to reduce or eliminate reliance on natural gas; changes
in economic conditions, including inflationary pressures, supply
chain issues, liquidity challenges, and global, national or
regional recessions, and their effect on the demand for, and
customers’ ability to pay for, the Company’s products and services;
changes in the price of natural gas; the creditworthiness or
performance of the Company’s key suppliers, customers and
counterparties; financial and economic conditions, including the
availability of credit, and occurrences affecting the Company’s
ability to obtain financing on acceptable terms for working
capital, capital expenditures and other investments, including any
downgrades in the Company’s credit ratings and changes in interest
rates and other capital market conditions; impairments under the
SEC’s full cost ceiling test for natural gas reserves; increased
costs or delays or changes in plans with respect to Company
projects or related projects of other companies, as well as
difficulties or delays in obtaining necessary governmental
approvals, permits or orders or in obtaining the cooperation of
interconnecting facility operators; the Company’s ability to
complete planned strategic transactions; changes in price
differentials between similar quantities of natural gas sold at
different geographic locations, and the effect of such changes on
commodity production, revenues and demand for pipeline
transportation capacity to or from such locations; the impact of
information technology disruptions, cybersecurity or data security
breaches; factors affecting the Company’s ability to successfully
identify, drill for and produce economically viable natural gas
reserves, including among others geology, lease availability and
costs, title disputes, weather conditions, shortages, delays or
unavailability of equipment and services required in drilling
operations, insufficient gathering, processing and transportation
capacity, the need to obtain governmental approvals and permits,
and compliance with environmental laws and regulations; increasing
health care costs and the resulting effect on health insurance
premiums and on the obligation to provide other post-retirement
benefits; other changes in price differentials between similar
quantities of natural gas having different quality, heating value,
hydrocarbon mix or delivery date; the cost and effects of legal and
administrative claims against the Company or activist shareholder
campaigns to effect changes at the Company; negotiations with the
collective bargaining units representing the Company's workforce,
including potential work stoppages during negotiations; uncertainty
of natural gas reserve estimates; significant differences between
the Company’s projected and actual production levels for natural
gas; changes in demographic patterns and weather conditions
(including those related to climate change); changes in the
availability, price or accounting treatment of derivative financial
instruments; changes in laws, actuarial assumptions, the interest
rate environment and the return on plan/trust assets related to the
Company’s pension and other post-retirement benefits, which can
affect future funding obligations and costs and plan liabilities;
economic disruptions or uninsured losses resulting from major
accidents, fires, severe weather, natural disasters, terrorist
activities or acts of war, as well as economic and operational
disruptions due to third-party outages; significant differences
between the Company’s projected and actual capital expenditures and
operating expenses; or increasing costs of insurance, changes in
coverage and the ability to obtain insurance. The Company disclaims
any obligation to update any forward-looking statements to reflect
events or circumstances after the date thereof.
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
GUIDANCE SUMMARY
|
As discussed on page 2, the Company is revising its earnings
guidance for fiscal 2024. Additional details on the Company's
forecast assumptions and business segment guidance are outlined in
the table below.
While the Company expects to record certain
adjustments to unrealized gain or loss on a derivative asset and
unrealized gain or loss on investments during the fiscal year
ending September 30, 2024, the amounts of these and other potential
adjustments are not reasonably determinable at this time. As such,
the Company is unable to provide earnings guidance other than on a
non-GAAP basis.
|
Previous FY 2024 Guidance |
|
Updated FY 2024 Guidance |
Adjusted Consolidated
Earnings per Share, excluding items impacting
comparability |
$5.50 to $6.00 |
|
$5.40 to $5.90 |
Consolidated Effective
Tax Rate |
~ 25.5 - 26% |
|
~ 25 - 25.5% |
|
|
|
|
Capital
Expenditures (Millions) |
|
|
|
Exploration and Production |
$525 - $575 |
|
$525 - $575 |
Pipeline and Storage |
$120 - $140 |
|
$120 - $140 |
Gathering |
$90 - $110 |
|
$90 - $110 |
Utility |
$130 - $150 |
|
$130 - $150 |
Consolidated Capital Expenditures |
$865 - $975 |
|
$865 - $975 |
|
|
|
|
Exploration &
Production Segment Guidance |
|
|
|
|
|
|
|
Commodity Price Assumptions |
|
|
|
NYMEX natural gas price |
$3.25 /MMBtu |
|
$3.25 /MMBtu |
Appalachian basin spot price |
$2.45 /MMBtu |
|
$2.40 - $2.45 /MMBtu |
|
|
|
|
Production (Bcfe) |
390 to 410 |
|
390 to 410 |
|
|
|
|
E&P Operating Costs ($/Mcfe) |
|
|
|
LOE |
$0.69 - $0.71 |
|
$0.69 - $0.71 |
G&A |
$0.17 - $0.19 |
|
$0.17 - $0.19 |
DD&A |
$0.66 - $0.70 |
|
$0.69 - $0.74 |
|
|
|
|
Other Business Segment
Guidance (Millions) |
|
|
|
Gathering Segment Revenues |
$240 - $260 |
|
$240 - $260 |
Pipeline and Storage Segment Revenues |
$380 - $420 |
|
$380 - $420 |
|
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
QUARTER ENDED SEPTEMBER 30, 2023 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2022 GAAP earnings |
$ |
116,077 |
|
|
$ |
25,320 |
|
|
$ |
31,224 |
|
|
$ |
(10,852 |
) |
|
$ |
(3,626 |
) |
|
$ |
158,143 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset |
|
4,395 |
|
|
|
|
|
|
|
|
|
|
|
4,395 |
|
Tax impact of unrealized gain
(loss) on derivative asset |
|
(1,203 |
) |
|
|
|
|
|
|
|
|
|
|
(1,203 |
) |
Reversal of deferred tax
valuation allowance |
|
(28,589 |
) |
|
|
|
|
3,739 |
|
|
|
|
|
|
|
(24,850 |
) |
Remeasurement of deferred
income taxes from Pennsylvania state income tax rate reduction |
|
(16,152 |
) |
|
|
|
|
(11,856 |
) |
|
|
|
|
(398 |
) |
|
|
(28,406 |
) |
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
|
1,532 |
|
|
|
1,532 |
|
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
|
(322 |
) |
|
|
(322 |
) |
Fourth quarter 2022
adjusted operating results |
|
74,528 |
|
|
|
25,320 |
|
|
|
23,107 |
|
|
|
(10,852 |
) |
|
|
(2,814 |
) |
|
|
109,289 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
13,121 |
|
|
|
|
|
|
|
|
|
|
|
13,121 |
|
Higher (lower) realized
natural gas prices, after hedging |
|
(37,374 |
) |
|
|
|
|
|
|
|
|
|
|
(37,374 |
) |
Higher (lower) other operating
revenues |
|
(734 |
) |
|
|
|
|
|
|
|
|
|
|
(734 |
) |
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
(2,932 |
) |
|
|
3,108 |
|
|
|
|
|
|
|
176 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
(386 |
) |
|
|
|
|
(386 |
) |
Impact of new rates in
Pennsylvania |
|
|
|
|
|
|
|
754 |
|
|
|
|
|
754 |
|
Impact of new rates in New
York**** |
|
|
|
|
|
|
|
(893 |
) |
|
|
|
|
(893 |
) |
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
366 |
|
|
|
|
|
366 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
1,951 |
|
|
|
|
|
1,951 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(1,352 |
) |
|
|
|
|
|
|
|
|
|
|
(1,352 |
) |
Lower (higher) operating
expenses |
|
(1,500 |
) |
|
|
|
|
(314 |
) |
|
|
(1,586 |
) |
|
|
(2,800 |
) |
|
|
(6,200 |
) |
Lower (higher) property,
franchise and other taxes |
|
1,343 |
|
|
|
|
|
|
|
|
|
|
|
1,343 |
|
Lower (higher) depreciation /
depletion |
|
(10,614 |
) |
|
|
(529 |
) |
|
|
(359 |
) |
|
|
(679 |
) |
|
|
|
|
(12,181 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
|
|
815 |
|
|
|
|
|
1,192 |
|
|
|
(276 |
) |
|
|
1,731 |
|
(Higher) lower interest
expense |
|
(627 |
) |
|
|
|
|
531 |
|
|
|
(998 |
) |
|
|
1,283 |
|
|
|
189 |
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
(1,900 |
) |
|
|
474 |
|
|
|
402 |
|
|
|
3,648 |
|
|
|
(367 |
) |
|
|
2,257 |
|
All other / rounding |
|
(147 |
) |
|
|
206 |
|
|
|
42 |
|
|
|
304 |
|
|
|
(245 |
) |
|
|
160 |
|
Fourth quarter 2023
adjusted operating results |
|
34,744 |
|
|
|
23,354 |
|
|
|
26,517 |
|
|
|
(7,179 |
) |
|
|
(5,219 |
) |
|
|
72,217 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset |
|
2,803 |
|
|
|
|
|
|
|
|
|
|
|
2,803 |
|
Tax impact of unrealized gain
(loss) on derivative asset |
|
(775 |
) |
|
|
|
|
|
|
|
|
|
|
(775 |
) |
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
(719 |
) |
|
|
(719 |
) |
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
151 |
|
|
|
151 |
|
Fourth quarter 2023
GAAP earnings |
$ |
36,772 |
|
|
$ |
23,354 |
|
|
$ |
26,517 |
|
|
$ |
(7,179 |
) |
|
$ |
(5,787 |
) |
|
$ |
73,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not
reflect intercompany eliminations. |
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
**** Amount is
offset by corresponding decrease in other deductions and has no
earnings impact for the year ended September 30, 2023. |
|
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
QUARTER ENDED SEPTEMBER 30, 2023 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2022 GAAP earnings per share |
$ |
1.26 |
|
|
$ |
0.27 |
|
|
$ |
0.34 |
|
|
$ |
(0.12 |
) |
|
$ |
(0.04 |
) |
|
$ |
1.71 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset, net of tax |
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
0.03 |
|
Reversal of deferred tax
valuation allowance |
|
(0.31 |
) |
|
|
|
|
0.04 |
|
|
|
|
|
|
|
(0.27 |
) |
Remeasurement of deferred
income taxes from Pennsylvania state income tax rate reduction |
|
(0.18 |
) |
|
|
|
|
(0.13 |
) |
|
|
|
|
— |
|
|
|
(0.31 |
) |
Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.01 |
|
Rounding |
|
0.01 |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.02 |
|
Fourth quarter 2022
adjusted operating results per share |
|
0.81 |
|
|
|
0.27 |
|
|
|
0.25 |
|
|
|
(0.12 |
) |
|
|
(0.02 |
) |
|
|
1.19 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
0.14 |
|
|
|
|
|
|
|
|
|
|
|
0.14 |
|
Higher (lower) realized
natural gas prices, after hedging |
|
(0.40 |
) |
|
|
|
|
|
|
|
|
|
|
(0.40 |
) |
Higher (lower) other operating
revenues |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
(0.03 |
) |
|
|
0.03 |
|
|
|
|
|
|
|
— |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
— |
|
|
|
|
|
— |
|
Impact of new rates in
Pennsylvania |
|
|
|
|
|
|
|
0.01 |
|
|
|
|
|
0.01 |
|
Impact of new rates in New
York**** |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
(0.01 |
) |
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
— |
|
|
|
|
|
— |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
0.02 |
|
|
|
|
|
0.02 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
Lower (higher) operating
expenses |
|
(0.02 |
) |
|
|
|
|
— |
|
|
|
(0.02 |
) |
|
|
(0.03 |
) |
|
|
(0.07 |
) |
Lower (higher) property,
franchise and other taxes |
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
0.01 |
|
Lower (higher) depreciation /
depletion |
|
(0.11 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
|
|
(0.13 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
|
|
0.01 |
|
|
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.02 |
|
(Higher) lower interest
expense |
|
(0.01 |
) |
|
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
— |
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
(0.02 |
) |
|
|
0.01 |
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
|
|
0.03 |
|
All other / rounding |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
(0.02 |
) |
|
|
(0.01 |
) |
Fourth quarter 2023
adjusted operating results per share |
|
0.38 |
|
|
|
0.25 |
|
|
|
0.29 |
|
|
|
(0.08 |
) |
|
|
(0.06 |
) |
|
|
0.78 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset, net of tax |
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
0.02 |
|
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Rounding |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.01 |
|
Fourth quarter 2023
GAAP earnings per share |
$ |
0.40 |
|
|
$ |
0.25 |
|
|
$ |
0.29 |
|
|
$ |
(0.08 |
) |
|
$ |
(0.06 |
) |
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not
reflect intercompany eliminations. |
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
**** Amount is
offset by corresponding decrease in other deductions and has no
earnings impact for the year ended September 30, 2023. |
|
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
TWELVE MONTHS ENDED SEPTEMBER 30, 2023 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2022 GAAP earnings |
$ |
306,064 |
|
|
$ |
102,557 |
|
|
$ |
101,111 |
|
|
$ |
68,948 |
|
|
$ |
(12,659 |
) |
|
$ |
566,021 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Reduction of other
post-retirement regulatory liability |
|
|
|
|
|
|
|
(18,533 |
) |
|
|
|
|
(18,533 |
) |
Tax impact of reduction of
other post-retirement regulatory liability |
|
|
|
|
|
|
|
3,892 |
|
|
|
|
|
3,892 |
|
Unrealized gain (loss) on
derivative asset |
|
4,395 |
|
|
|
|
|
|
|
|
|
|
|
4,395 |
|
Tax impact of unrealized gain
(loss) on derivative asset |
|
(1,203 |
) |
|
|
|
|
|
|
|
|
|
|
(1,203 |
) |
Gain on sale of West Coast
assets |
|
(12,736 |
) |
|
|
|
|
|
|
|
|
|
|
(12,736 |
) |
Tax impact of gain on sale of
West Coast assets |
|
3,225 |
|
|
|
|
|
|
|
|
|
|
|
3,225 |
|
Loss from discontinuance of
crude oil cash flow hedges |
|
44,632 |
|
|
|
|
|
|
|
|
|
|
|
44,632 |
|
Tax impact of loss from
discontinuance of crude oil cash flow hedges |
|
(11,303 |
) |
|
|
|
|
|
|
|
|
|
|
(11,303 |
) |
Transaction and severance
costs related to West Coast asset sale |
|
9,693 |
|
|
|
|
|
|
|
|
|
|
|
9,693 |
|
Tax impact of transaction and
severance costs related to West Coast asset sale |
|
(2,455 |
) |
|
|
|
|
|
|
|
|
|
|
(2,455 |
) |
Reversal of deferred tax
valuation allowance |
|
(28,589 |
) |
|
|
|
|
3,739 |
|
|
|
|
|
|
|
(24,850 |
) |
Remeasurement of deferred
income taxes from Pennsylvania state income tax rate reduction |
|
(16,152 |
) |
|
|
|
|
(11,856 |
) |
|
|
|
|
(398 |
) |
|
|
(28,406 |
) |
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
|
11,625 |
|
|
|
11,625 |
|
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
|
(2,441 |
) |
|
|
(2,441 |
) |
Fiscal 2022 adjusted
operating results |
|
295,571 |
|
|
|
102,557 |
|
|
|
92,994 |
|
|
|
54,307 |
|
|
|
(3,873 |
) |
|
|
541,556 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
62,913 |
|
|
|
|
|
|
|
|
|
|
|
62,913 |
|
Higher (lower) crude oil
production |
|
(88,063 |
) |
|
|
|
|
|
|
|
|
|
|
(88,063 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
(48,413 |
) |
|
|
|
|
|
|
|
|
|
|
(48,413 |
) |
Higher (lower) other operating
revenues |
|
(2,898 |
) |
|
|
|
|
|
|
|
|
|
|
(2,898 |
) |
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
1,696 |
|
|
|
12,224 |
|
|
|
|
|
|
|
13,920 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
(1,104 |
) |
|
|
|
|
(1,104 |
) |
Impact of new rates in
Pennsylvania |
|
|
|
|
|
|
|
754 |
|
|
|
|
|
754 |
|
Impact of new rates in New
York**** |
|
|
|
|
|
|
|
(12,019 |
) |
|
|
|
|
(12,019 |
) |
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
3,829 |
|
|
|
|
|
3,829 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
1,504 |
|
|
|
|
|
1,504 |
|
Higher (lower) other operating
revenues |
|
|
|
|
|
|
|
1,734 |
|
|
|
|
|
1,734 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
23,984 |
|
|
|
|
|
|
|
|
|
|
|
23,984 |
|
Lower (higher) operating
expenses |
|
11,145 |
|
|
|
(5,164 |
) |
|
|
(4,851 |
) |
|
|
(8,798 |
) |
|
|
(3,389 |
) |
|
|
(11,057 |
) |
Lower (higher) property,
franchise and other taxes |
|
6,041 |
|
|
|
|
|
|
|
597 |
|
|
|
|
|
6,638 |
|
Lower (higher) depreciation /
depletion |
|
(26,065 |
) |
|
|
(2,470 |
) |
|
|
(1,364 |
) |
|
|
(1,335 |
) |
|
|
|
|
(31,234 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
2,735 |
|
|
|
3,624 |
|
|
|
561 |
|
|
|
14,030 |
|
|
|
(3,859 |
) |
|
|
17,091 |
|
(Higher) lower interest
expense |
|
(724 |
) |
|
|
(796 |
) |
|
|
1,184 |
|
|
|
(8,575 |
) |
|
|
7,120 |
|
|
|
(1,791 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
(3,406 |
) |
|
|
411 |
|
|
|
(1,006 |
) |
|
|
3,503 |
|
|
|
(380 |
) |
|
|
(878 |
) |
All other / rounding |
|
114 |
|
|
|
643 |
|
|
|
(18 |
) |
|
|
(32 |
) |
|
|
(369 |
) |
|
|
338 |
|
Fiscal 2023 adjusted
operating results |
|
232,934 |
|
|
|
100,501 |
|
|
|
99,724 |
|
|
|
48,395 |
|
|
|
(4,750 |
) |
|
|
476,804 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset |
|
(899 |
) |
|
|
|
|
|
|
|
|
|
|
(899 |
) |
Tax impact of unrealized gain
(loss) on derivative asset |
|
240 |
|
|
|
|
|
|
|
|
|
|
|
240 |
|
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
913 |
|
|
|
913 |
|
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
(192 |
) |
|
|
(192 |
) |
Fiscal 2023 GAAP
earnings |
$ |
232,275 |
|
|
$ |
100,501 |
|
|
$ |
99,724 |
|
|
$ |
48,395 |
|
|
$ |
(4,029 |
) |
|
$ |
476,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not
reflect intercompany eliminations. |
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
**** Amount is
offset by corresponding decrease in other deductions and has no
earnings impact for the year ended September 30, 2023. |
|
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
TWELVE MONTHS ENDED SEPTEMBER 30, 2023 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
Fiscal 2022 GAAP earnings per share |
$ |
3.32 |
|
|
$ |
1.11 |
|
|
$ |
1.10 |
|
|
$ |
0.75 |
|
|
$ |
(0.13 |
) |
|
$ |
6.15 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Reduction of other
post-retirement regulatory liability, net of tax |
|
|
|
|
|
|
|
(0.16 |
) |
|
|
|
|
(0.16 |
) |
Unrealized gain (loss) on
derivative asset, net of tax |
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
0.03 |
|
Gain on sale of West Coast
assets, net of tax |
|
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
(0.10 |
) |
Loss from discontinuance of
crude oil cash flow hedges, net of tax |
|
0.36 |
|
|
|
|
|
|
|
|
|
|
|
0.36 |
|
Transaction and severance
costs related to West Coast asset sale, net of tax |
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
0.08 |
|
Reversal of deferred tax
valuation allowance |
|
(0.31 |
) |
|
|
|
|
0.04 |
|
|
|
|
|
|
|
(0.27 |
) |
Remeasurement of deferred
income taxes from Pennsylvania state income tax rate deduction |
|
(0.18 |
) |
|
|
|
|
(0.13 |
) |
|
|
|
|
— |
|
|
|
(0.31 |
) |
Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
0.10 |
|
|
|
0.10 |
|
Rounding |
|
0.01 |
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
— |
|
Fiscal 2022 adjusted
operating results per share |
|
3.21 |
|
|
|
1.11 |
|
|
|
1.01 |
|
|
|
0.59 |
|
|
|
(0.04 |
) |
|
|
5.88 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
0.68 |
|
|
|
|
|
|
|
|
|
|
|
0.68 |
|
Higher (lower) crude oil
production |
|
(0.95 |
) |
|
|
|
|
|
|
|
|
|
|
(0.95 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
(0.52 |
) |
|
|
|
|
|
|
|
|
|
|
(0.52 |
) |
Higher (lower) other operating
revenues |
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
(0.03 |
) |
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
0.02 |
|
|
|
0.13 |
|
|
|
|
|
|
|
0.15 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
(0.01 |
) |
Impact of new rates in
Pennsylvania |
|
|
|
|
|
|
|
0.01 |
|
|
|
|
|
0.01 |
|
Impact of new rates in New
York**** |
|
|
|
|
|
|
|
(0.13 |
) |
|
|
|
|
(0.13 |
) |
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
0.04 |
|
|
|
|
|
0.04 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
0.02 |
|
|
|
|
|
0.02 |
|
Higher (lower) other operating
revenues |
|
|
|
|
|
|
|
0.02 |
|
|
|
|
|
0.02 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
0.26 |
|
|
|
|
|
|
|
|
|
|
|
0.26 |
|
Lower (higher) operating
expenses |
|
0.12 |
|
|
|
(0.06 |
) |
|
|
(0.05 |
) |
|
|
(0.10 |
) |
|
|
(0.04 |
) |
|
|
(0.13 |
) |
Lower (higher) property,
franchise and other taxes |
|
0.07 |
|
|
|
|
|
|
|
0.01 |
|
|
|
|
|
0.08 |
|
Lower (higher) depreciation /
depletion |
|
(0.28 |
) |
|
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
|
|
(0.33 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
0.03 |
|
|
|
0.04 |
|
|
|
0.01 |
|
|
|
0.15 |
|
|
|
(0.04 |
) |
|
|
0.19 |
|
(Higher) lower interest
expense |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.09 |
) |
|
|
0.08 |
|
|
|
(0.02 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
(0.04 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.04 |
|
|
|
— |
|
|
|
(0.01 |
) |
All other / rounding |
|
(0.02 |
) |
|
|
0.02 |
|
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.03 |
) |
Fiscal 2023 adjusted
operating results per share |
|
2.52 |
|
|
|
1.09 |
|
|
|
1.08 |
|
|
|
0.52 |
|
|
|
(0.04 |
) |
|
|
5.17 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset, net of tax |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.01 |
|
Rounding |
|
0.01 |
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
— |
|
Fiscal 2023 GAAP
earnings per share |
$ |
2.52 |
|
|
$ |
1.09 |
|
|
$ |
1.08 |
|
|
$ |
0.52 |
|
|
$ |
(0.04 |
) |
|
$ |
5.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect intercompany eliminations. |
** Drivers of adjusted operating results have been calculated using
the 21% federal statutory rate. |
*** Downstream margin defined as operating revenues less purchased
gas expense. |
**** Amount is offset by corresponding decrease in other deductions
and has no earnings impact for the year ended September 30,
2023. |
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
(Thousands of Dollars, except
per share amounts) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
(Unaudited) |
|
(Unaudited) |
SUMMARY OF OPERATIONS |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Operating Revenues: |
|
|
|
|
|
|
|
Utility Revenues |
$ |
78,865 |
|
|
$ |
112,252 |
|
|
$ |
941,779 |
|
|
$ |
897,916 |
|
Exploration and Production and Other Revenues |
|
220,348 |
|
|
|
252,035 |
|
|
|
958,455 |
|
|
|
1,010,629 |
|
Pipeline and Storage and Gathering Revenues |
|
69,735 |
|
|
|
70,859 |
|
|
|
273,537 |
|
|
|
277,501 |
|
|
|
368,948 |
|
|
|
435,146 |
|
|
|
2,173,771 |
|
|
|
2,186,046 |
|
Operating Expenses: |
|
|
|
|
|
|
|
Purchased Gas |
|
(12,865 |
) |
|
|
22,925 |
|
|
|
437,595 |
|
|
|
392,093 |
|
Operation and Maintenance: |
|
|
|
|
|
|
|
Utility |
|
48,354 |
|
|
|
46,535 |
|
|
|
205,239 |
|
|
|
193,058 |
|
Exploration and Production and Other |
|
37,955 |
|
|
|
31,554 |
|
|
|
124,270 |
|
|
|
191,572 |
|
Pipeline and Storage and Gathering |
|
39,901 |
|
|
|
39,138 |
|
|
|
149,247 |
|
|
|
136,571 |
|
Property, Franchise and Other Taxes |
|
20,701 |
|
|
|
23,089 |
|
|
|
92,700 |
|
|
|
101,182 |
|
Depreciation, Depletion and Amortization |
|
109,599 |
|
|
|
94,109 |
|
|
|
409,573 |
|
|
|
369,790 |
|
|
|
243,645 |
|
|
|
257,350 |
|
|
|
1,418,624 |
|
|
|
1,384,266 |
|
Gain on Sale of Assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,736 |
|
Operating Income |
|
125,303 |
|
|
|
177,796 |
|
|
|
755,147 |
|
|
|
814,516 |
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
Other Income (Deductions) |
|
5,384 |
|
|
|
(4,800 |
) |
|
|
18,138 |
|
|
|
(1,509 |
) |
Interest Expense on Long-Term Debt |
|
(28,449 |
) |
|
|
(30,207 |
) |
|
|
(111,948 |
) |
|
|
(120,507 |
) |
Other Interest Expense |
|
(4,453 |
) |
|
|
(3,289 |
) |
|
|
(19,938 |
) |
|
|
(9,850 |
) |
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
|
97,785 |
|
|
|
139,500 |
|
|
|
641,399 |
|
|
|
682,650 |
|
|
|
|
|
|
|
|
|
Income Tax Expense
(Benefit) |
|
24,108 |
|
|
|
(18,643 |
) |
|
|
164,533 |
|
|
|
116,629 |
|
|
|
|
|
|
|
|
|
Net Income Available for
Common Stock |
$ |
73,677 |
|
|
$ |
158,143 |
|
|
$ |
476,866 |
|
|
$ |
566,021 |
|
|
|
|
|
|
|
|
|
Earnings Per Common Share |
|
|
|
|
|
|
|
Basic |
$ |
0.80 |
|
|
$ |
1.73 |
|
|
$ |
5.20 |
|
|
$ |
6.19 |
|
Diluted |
$ |
0.80 |
|
|
$ |
1.71 |
|
|
$ |
5.17 |
|
|
$ |
6.15 |
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares: |
|
|
|
|
|
|
|
Used in Basic Calculation |
|
91,818,933 |
|
|
|
91,476,535 |
|
|
|
91,748,890 |
|
|
|
91,410,625 |
|
Used in Diluted
Calculation |
|
92,378,675 |
|
|
|
92,218,581 |
|
|
|
92,285,918 |
|
|
|
92,107,066 |
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
|
|
|
September 30, |
|
September 30, |
(Thousands of Dollars) |
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
Property, Plant and
Equipment |
$ |
13,635,303 |
|
|
$ |
12,551,909 |
|
Less -
Accumulated Depreciation, Depletion and Amortization |
|
6,335,441 |
|
|
|
5,985,432 |
|
Net Property, Plant and Equipment |
|
7,299,862 |
|
|
|
6,566,477 |
|
Current Assets: |
|
|
|
Cash and Temporary Cash
Investments |
|
55,447 |
|
|
|
46,048 |
|
Hedging Collateral
Deposits |
|
— |
|
|
|
91,670 |
|
Receivables - Net |
|
160,601 |
|
|
|
361,626 |
|
Unbilled Revenue |
|
16,622 |
|
|
|
30,075 |
|
Gas Stored Underground |
|
32,509 |
|
|
|
32,364 |
|
Materials and Supplies - at
average cost |
|
48,989 |
|
|
|
40,637 |
|
Unrecovered Purchased Gas
Costs |
|
— |
|
|
|
99,342 |
|
Other Current Assets |
|
100,260 |
|
|
|
59,369 |
|
Total Current Assets |
|
414,428 |
|
|
|
761,131 |
|
Other Assets: |
|
|
|
Recoverable Future Taxes |
|
69,045 |
|
|
|
106,247 |
|
Unamortized Debt Expense |
|
7,240 |
|
|
|
8,884 |
|
Other Regulatory Assets |
|
72,138 |
|
|
|
67,101 |
|
Deferred Charges |
|
82,416 |
|
|
|
77,472 |
|
Other Investments |
|
73,976 |
|
|
|
95,025 |
|
Goodwill |
|
5,476 |
|
|
|
5,476 |
|
Prepaid Pension and
Post-Retirement Benefit Costs |
|
200,301 |
|
|
|
196,597 |
|
Fair Value of Derivative
Financial Instruments |
|
50,487 |
|
|
|
9,175 |
|
Other |
|
4,891 |
|
|
|
2,677 |
|
Total Other Assets |
|
565,970 |
|
|
|
568,654 |
|
Total Assets |
$ |
8,280,260 |
|
|
$ |
7,896,262 |
|
CAPITALIZATION AND LIABILITIES |
|
|
|
Capitalization: |
|
|
|
Comprehensive Shareholders'
Equity |
|
|
|
Common Stock, $1 Par Value
Authorized - 200,000,000 Shares; Issued and |
|
|
|
Outstanding - 91,819,405
Shares and 91,478,064 Shares, Respectively |
$ |
91,819 |
|
|
$ |
91,478 |
|
Paid in Capital |
|
1,040,761 |
|
|
|
1,027,066 |
|
Earnings Reinvested in the
Business |
|
1,885,856 |
|
|
|
1,587,085 |
|
Accumulated Other Comprehensive Loss |
|
(55,060 |
) |
|
|
(625,733 |
) |
Total Comprehensive Shareholders' Equity |
|
2,963,376 |
|
|
|
2,079,896 |
|
Long-Term Debt, Net of Current Portion and Unamortized Discount and
Debt Issuance Costs |
|
2,384,485 |
|
|
|
2,083,409 |
|
Total Capitalization |
|
5,347,861 |
|
|
|
4,163,305 |
|
Current and Accrued Liabilities: |
|
|
|
Notes Payable to Banks and
Commercial Paper |
|
287,500 |
|
|
|
60,000 |
|
Current Portion of Long-Term
Debt |
|
— |
|
|
|
549,000 |
|
Accounts Payable |
|
152,193 |
|
|
|
178,945 |
|
Amounts Payable to
Customers |
|
59,019 |
|
|
|
419 |
|
Dividends Payable |
|
45,451 |
|
|
|
43,452 |
|
Interest Payable on Long-Term
Debt |
|
20,399 |
|
|
|
17,376 |
|
Customer Advances |
|
21,003 |
|
|
|
26,108 |
|
Customer Security
Deposits |
|
28,764 |
|
|
|
24,283 |
|
Other Accruals and Current
Liabilities |
|
160,974 |
|
|
|
257,327 |
|
Fair
Value of Derivative Financial Instruments |
|
31,009 |
|
|
|
785,659 |
|
Total Current and Accrued Liabilities |
|
806,312 |
|
|
|
1,942,569 |
|
Other Liabilities: |
|
|
|
Deferred Income Taxes |
|
1,124,170 |
|
|
|
698,229 |
|
Taxes Refundable to
Customers |
|
268,562 |
|
|
|
362,098 |
|
Cost of Removal Regulatory
Liability |
|
277,694 |
|
|
|
259,947 |
|
Other Regulatory
Liabilities |
|
165,441 |
|
|
|
188,803 |
|
Other Post-Retirement
Liabilities |
|
2,915 |
|
|
|
3,065 |
|
Asset Retirement
Obligations |
|
165,492 |
|
|
|
161,545 |
|
Other
Liabilities |
|
121,813 |
|
|
|
116,701 |
|
Total Other Liabilities |
|
2,126,087 |
|
|
|
1,790,388 |
|
Commitments and Contingencies |
|
— |
|
|
|
— |
|
Total Capitalization and Liabilities |
$ |
8,280,260 |
|
|
$ |
7,896,262 |
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
Twelve Months Ended |
|
September 30, |
(Thousands of Dollars) |
|
2023 |
|
|
|
2022 |
|
|
|
|
|
Operating Activities: |
|
|
|
Net Income Available for
Common Stock |
$ |
476,866 |
|
|
$ |
566,021 |
|
Adjustments to Reconcile Net
Income to Net Cash
Provided by Operating Activities: |
|
|
|
Gain on Sale of Assets |
|
— |
|
|
|
(12,736 |
) |
Depreciation, Depletion and Amortization |
|
409,573 |
|
|
|
369,790 |
|
Deferred Income Taxes |
|
151,403 |
|
|
|
104,415 |
|
Stock-Based Compensation |
|
20,630 |
|
|
|
19,506 |
|
Reduction of Other Post-Retirement Regulatory Liability |
|
— |
|
|
|
(18,533 |
) |
Other |
|
19,647 |
|
|
|
31,983 |
|
Change in: |
|
|
|
Receivables and Unbilled Revenue |
|
213,579 |
|
|
|
(168,769 |
) |
Gas Stored Underground and Materials, Supplies and Emission
Allowances |
|
(8,406 |
) |
|
|
3,109 |
|
Unrecovered Purchased Gas Costs |
|
99,342 |
|
|
|
(66,214 |
) |
Other Current Assets |
|
(41,077 |
) |
|
|
291 |
|
Accounts Payable |
|
(37,095 |
) |
|
|
11,907 |
|
Amounts Payable to Customers |
|
58,600 |
|
|
|
398 |
|
Customer Advances |
|
(5,105 |
) |
|
|
8,885 |
|
Customer Security Deposits |
|
4,481 |
|
|
|
4,991 |
|
Other Accruals and Current Liabilities |
|
(67,664 |
) |
|
|
34,260 |
|
Other Assets |
|
(26,564 |
) |
|
|
(58,924 |
) |
Other Liabilities |
|
(31,135 |
) |
|
|
(17,859 |
) |
Net Cash Provided by Operating Activities |
$ |
1,237,075 |
|
|
$ |
812,521 |
|
|
|
|
|
Investing Activities: |
|
|
|
Capital Expenditures |
$ |
(1,009,868 |
) |
|
$ |
(811,826 |
) |
Net Proceeds from Sale of Oil
and Gas Producing Properties |
|
— |
|
|
|
254,439 |
|
Acquisition of Upstream
Assets |
|
(124,758 |
) |
|
|
— |
|
Sale of Fixed Income Mutual
Fund Shares in Grantor Trust |
|
10,000 |
|
|
|
30,000 |
|
Other |
|
12,279 |
|
|
|
8,683 |
|
Net Cash Used in Investing Activities |
$ |
(1,112,347 |
) |
|
$ |
(518,704 |
) |
|
|
|
|
Financing Activities: |
|
|
|
Proceeds from Issuance of
Short-Term Note Payable to Bank |
$ |
250,000 |
|
|
$ |
— |
|
Repayment of Short-Term Note
Payable to Bank |
|
(250,000 |
) |
|
|
— |
|
Net Change in Other Short-Term
Notes Payable to Banks and Commercial Paper |
|
227,500 |
|
|
|
(98,500 |
) |
Reduction of Long-Term
Debt |
|
(549,000 |
) |
|
|
— |
|
Net Proceeds From Issuance of
Long-Term Debt |
|
297,306 |
|
|
|
— |
|
Dividends Paid on Common
Stock |
|
(176,096 |
) |
|
|
(168,147 |
) |
Net
Repurchases of Common Stock |
|
(6,709 |
) |
|
|
(9,590 |
) |
Net Cash Used in Financing Activities |
$ |
(206,999 |
) |
|
$ |
(276,237 |
) |
|
|
|
|
Net Increase (Decrease) in
Cash, Cash Equivalents, and Restricted Cash |
|
(82,271 |
) |
|
|
17,580 |
|
Cash,
Cash Equivalents, and Restricted Cash at Beginning of Period |
|
137,718 |
|
|
|
120,138 |
|
Cash, Cash Equivalents, and Restricted Cash at September 30 |
$ |
55,447 |
|
|
$ |
137,718 |
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
UPSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Thousands of Dollars, except
per share amounts) |
September 30, |
|
September 30, |
EXPLORATION AND
PRODUCTION SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
|
2022 |
|
|
Variance |
Total Operating Revenues |
$ |
220,348 |
|
|
$ |
252,035 |
|
|
$ |
(31,687 |
) |
|
$ |
958,455 |
|
|
$ |
1,010,464 |
|
|
$ |
(52,009 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
|
General and Administrative Expense |
|
17,163 |
|
|
|
15,664 |
|
|
|
1,499 |
|
|
|
66,074 |
|
|
|
79,061 |
|
|
|
(12,987 |
) |
Lease Operating and Transportation Expense |
|
64,412 |
|
|
|
62,701 |
|
|
|
1,711 |
|
|
|
253,555 |
|
|
|
283,914 |
|
|
|
(30,359 |
) |
All Other Operation and Maintenance Expense |
|
2,357 |
|
|
|
1,957 |
|
|
|
400 |
|
|
|
9,327 |
|
|
|
20,140 |
|
|
|
(10,813 |
) |
Property, Franchise and Other Taxes |
|
3,775 |
|
|
|
5,475 |
|
|
|
(1,700 |
) |
|
|
17,717 |
|
|
|
25,364 |
|
|
|
(7,647 |
) |
Depreciation, Depletion and Amortization |
|
66,394 |
|
|
|
52,958 |
|
|
|
13,436 |
|
|
|
241,142 |
|
|
|
208,148 |
|
|
|
32,994 |
|
|
|
154,101 |
|
|
|
138,755 |
|
|
|
15,346 |
|
|
|
587,815 |
|
|
|
616,627 |
|
|
|
(28,812 |
) |
Gain on Sale of Assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,736 |
|
|
|
(12,736 |
) |
Operating Income |
|
66,247 |
|
|
|
113,280 |
|
|
|
(47,033 |
) |
|
|
370,640 |
|
|
|
406,573 |
|
|
|
(35,933 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit (Costs) Credit |
|
347 |
|
|
|
(186 |
) |
|
|
533 |
|
|
|
1,389 |
|
|
|
(744 |
) |
|
|
2,133 |
|
Interest and Other Income (Deductions) |
|
3,457 |
|
|
|
(3,080 |
) |
|
|
6,537 |
|
|
|
2,359 |
|
|
|
(2,466 |
) |
|
|
4,825 |
|
Interest Expense |
|
(15,268 |
) |
|
|
(14,474 |
) |
|
|
(794 |
) |
|
|
(54,317 |
) |
|
|
(53,401 |
) |
|
|
(916 |
) |
Income Before Income
Taxes |
|
54,783 |
|
|
|
95,540 |
|
|
|
(40,757 |
) |
|
|
320,071 |
|
|
|
349,962 |
|
|
|
(29,891 |
) |
Income Tax Expense
(Benefit) |
|
18,011 |
|
|
|
(20,537 |
) |
|
|
38,548 |
|
|
|
87,796 |
|
|
|
43,898 |
|
|
|
43,898 |
|
Net Income |
$ |
36,772 |
|
|
$ |
116,077 |
|
|
$ |
(79,305 |
) |
|
$ |
232,275 |
|
|
$ |
306,064 |
|
|
$ |
(73,789 |
) |
Net Income Per Share
(Diluted) |
$ |
0.40 |
|
|
$ |
1.26 |
|
|
$ |
(0.86 |
) |
|
$ |
2.52 |
|
|
$ |
3.32 |
|
|
$ |
(0.80 |
) |
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
MIDSTREAM BUSINESSES |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Thousands of Dollars, except
per share amounts) |
September 30, |
|
September 30, |
PIPELINE AND
STORAGE SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
|
2022 |
|
|
Variance |
Revenues from External Customers |
$ |
64,846 |
|
|
$ |
68,836 |
|
|
$ |
(3,990 |
) |
|
$ |
259,646 |
|
|
$ |
265,415 |
|
|
$ |
(5,769 |
) |
Intersegment Revenues |
|
29,192 |
|
|
|
28,913 |
|
|
|
279 |
|
|
|
119,545 |
|
|
|
111,629 |
|
|
|
7,916 |
|
Total Operating Revenues |
|
94,038 |
|
|
|
97,749 |
|
|
|
(3,711 |
) |
|
|
379,191 |
|
|
|
377,044 |
|
|
|
2,147 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
326 |
|
|
|
592 |
|
|
|
(266 |
) |
|
|
1,436 |
|
|
|
1,890 |
|
|
|
(454 |
) |
Operation and Maintenance |
|
29,154 |
|
|
|
28,868 |
|
|
|
286 |
|
|
|
106,654 |
|
|
|
100,117 |
|
|
|
6,537 |
|
Property, Franchise and Other Taxes |
|
8,322 |
|
|
|
8,470 |
|
|
|
(148 |
) |
|
|
33,774 |
|
|
|
34,133 |
|
|
|
(359 |
) |
Depreciation, Depletion and Amortization |
|
17,953 |
|
|
|
17,283 |
|
|
|
670 |
|
|
|
70,827 |
|
|
|
67,701 |
|
|
|
3,126 |
|
|
|
55,755 |
|
|
|
55,213 |
|
|
|
542 |
|
|
|
212,691 |
|
|
|
203,841 |
|
|
|
8,850 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
38,283 |
|
|
|
42,536 |
|
|
|
(4,253 |
) |
|
|
166,500 |
|
|
|
173,203 |
|
|
|
(6,703 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit |
|
1,330 |
|
|
|
767 |
|
|
|
563 |
|
|
|
5,319 |
|
|
|
3,069 |
|
|
|
2,250 |
|
Interest and Other Income |
|
2,017 |
|
|
|
1,490 |
|
|
|
527 |
|
|
|
6,670 |
|
|
|
3,820 |
|
|
|
2,850 |
|
Interest Expense |
|
(10,796 |
) |
|
|
(10,929 |
) |
|
|
133 |
|
|
|
(43,499 |
) |
|
|
(42,492 |
) |
|
|
(1,007 |
) |
Income Before Income
Taxes |
|
30,834 |
|
|
|
33,864 |
|
|
|
(3,030 |
) |
|
|
134,990 |
|
|
|
137,600 |
|
|
|
(2,610 |
) |
Income Tax Expense |
|
7,480 |
|
|
|
8,544 |
|
|
|
(1,064 |
) |
|
|
34,489 |
|
|
|
35,043 |
|
|
|
(554 |
) |
Net Income |
$ |
23,354 |
|
|
$ |
25,320 |
|
|
$ |
(1,966 |
) |
|
$ |
100,501 |
|
|
$ |
102,557 |
|
|
$ |
(2,056 |
) |
Net Income Per Share
(Diluted) |
$ |
0.25 |
|
|
$ |
0.27 |
|
|
$ |
(0.02 |
) |
|
$ |
1.09 |
|
|
$ |
1.11 |
|
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
GATHERING
SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
|
2022 |
|
|
Variance |
Revenues from External
Customers |
$ |
4,889 |
|
|
$ |
2,023 |
|
|
$ |
2,866 |
|
|
$ |
13,891 |
|
|
$ |
12,086 |
|
|
$ |
1,805 |
|
Intersegment Revenues |
|
53,129 |
|
|
|
52,061 |
|
|
|
1,068 |
|
|
|
216,426 |
|
|
|
202,757 |
|
|
|
13,669 |
|
Total Operating Revenues |
|
58,018 |
|
|
|
54,084 |
|
|
|
3,934 |
|
|
|
230,317 |
|
|
|
214,843 |
|
|
|
15,474 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
11,123 |
|
|
|
10,725 |
|
|
|
398 |
|
|
|
44,375 |
|
|
|
38,234 |
|
|
|
6,141 |
|
Property, Franchise and Other Taxes |
|
21 |
|
|
|
24 |
|
|
|
(3 |
) |
|
|
60 |
|
|
|
37 |
|
|
|
23 |
|
Depreciation, Depletion and Amortization |
|
9,111 |
|
|
|
8,656 |
|
|
|
455 |
|
|
|
35,725 |
|
|
|
33,998 |
|
|
|
1,727 |
|
|
|
20,255 |
|
|
|
19,405 |
|
|
|
850 |
|
|
|
80,160 |
|
|
|
72,269 |
|
|
|
7,891 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
37,763 |
|
|
|
34,679 |
|
|
|
3,084 |
|
|
|
150,157 |
|
|
|
142,574 |
|
|
|
7,583 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit (Costs) Credit |
|
37 |
|
|
|
(56 |
) |
|
|
93 |
|
|
|
150 |
|
|
|
(224 |
) |
|
|
374 |
|
Interest and Other Income |
|
75 |
|
|
|
117 |
|
|
|
(42 |
) |
|
|
534 |
|
|
|
198 |
|
|
|
336 |
|
Interest Expense |
|
(3,433 |
) |
|
|
(4,105 |
) |
|
|
672 |
|
|
|
(14,989 |
) |
|
|
(16,488 |
) |
|
|
1,499 |
|
Income Before Income
Taxes |
|
34,442 |
|
|
|
30,635 |
|
|
|
3,807 |
|
|
|
135,852 |
|
|
|
126,060 |
|
|
|
9,792 |
|
Income Tax Expense
(Benefit) |
|
7,925 |
|
|
|
(589 |
) |
|
|
8,514 |
|
|
|
36,128 |
|
|
|
24,949 |
|
|
|
11,179 |
|
Net Income |
$ |
26,517 |
|
|
$ |
31,224 |
|
|
$ |
(4,707 |
) |
|
$ |
99,724 |
|
|
$ |
101,111 |
|
|
$ |
(1,387 |
) |
Net Income Per Share
(Diluted) |
$ |
0.29 |
|
|
$ |
0.34 |
|
|
$ |
(0.05 |
) |
|
$ |
1.08 |
|
|
$ |
1.10 |
|
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
DOWNSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Thousands of Dollars, except
per share amounts) |
September 30, |
|
September 30, |
UTILITY
SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
|
2022 |
|
|
Variance |
Revenues from External Customers |
$ |
78,865 |
|
|
$ |
112,252 |
|
|
$ |
(33,387 |
) |
|
$ |
941,779 |
|
|
$ |
897,916 |
|
|
$ |
43,863 |
|
Intersegment Revenues |
|
81 |
|
|
|
60 |
|
|
|
21 |
|
|
|
581 |
|
|
|
305 |
|
|
|
276 |
|
Total Operating Revenues |
|
78,946 |
|
|
|
112,312 |
|
|
|
(33,366 |
) |
|
|
942,360 |
|
|
|
898,221 |
|
|
|
44,139 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
14,743 |
|
|
|
49,692 |
|
|
|
(34,949 |
) |
|
|
548,195 |
|
|
|
497,959 |
|
|
|
50,236 |
|
Operation and Maintenance |
|
49,056 |
|
|
|
47,369 |
|
|
|
1,687 |
|
|
|
208,539 |
|
|
|
196,254 |
|
|
|
12,285 |
|
Property, Franchise and Other Taxes |
|
8,454 |
|
|
|
8,981 |
|
|
|
(527 |
) |
|
|
40,624 |
|
|
|
41,137 |
|
|
|
(513 |
) |
Depreciation, Depletion and Amortization |
|
16,026 |
|
|
|
15,167 |
|
|
|
859 |
|
|
|
61,450 |
|
|
|
59,760 |
|
|
|
1,690 |
|
|
|
88,279 |
|
|
|
121,209 |
|
|
|
(32,930 |
) |
|
|
858,808 |
|
|
|
795,110 |
|
|
|
63,698 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
(9,333 |
) |
|
|
(8,897 |
) |
|
|
(436 |
) |
|
|
83,552 |
|
|
|
103,111 |
|
|
|
(19,559 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit (Costs) Credit |
|
9 |
|
|
|
(492 |
) |
|
|
501 |
|
|
|
4 |
|
|
|
5,526 |
|
|
|
(5,522 |
) |
Interest and Other Income |
|
1,437 |
|
|
|
429 |
|
|
|
1,008 |
|
|
|
6,339 |
|
|
|
1,591 |
|
|
|
4,748 |
|
Interest Expense |
|
(8,041 |
) |
|
|
(7,000 |
) |
|
|
(1,041 |
) |
|
|
(34,233 |
) |
|
|
(24,115 |
) |
|
|
(10,118 |
) |
Income (Loss) Before Income
Taxes |
|
(15,928 |
) |
|
|
(15,960 |
) |
|
|
32 |
|
|
|
55,662 |
|
|
|
86,113 |
|
|
|
(30,451 |
) |
Income Tax Expense
(Benefit) |
|
(8,749 |
) |
|
|
(5,108 |
) |
|
|
(3,641 |
) |
|
|
7,267 |
|
|
|
17,165 |
|
|
|
(9,898 |
) |
Net Income (Loss) |
$ |
(7,179 |
) |
|
$ |
(10,852 |
) |
|
$ |
3,673 |
|
|
$ |
48,395 |
|
|
$ |
68,948 |
|
|
$ |
(20,553 |
) |
Net Income (Loss) Per Share
(Diluted) |
$ |
(0.08 |
) |
|
$ |
(0.12 |
) |
|
$ |
0.04 |
|
|
$ |
0.52 |
|
|
$ |
0.75 |
|
|
$ |
(0.23 |
) |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Thousands of Dollars, except
per share amounts) |
September 30, |
|
September 30, |
ALL
OTHER |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
|
2022 |
|
|
Variance |
Revenues from External Customers |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Intersegment Revenues |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
(6 |
) |
Total Operating Revenues |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
(6 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
(6 |
) |
Operation and Maintenance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21 |
|
|
|
5 |
|
|
|
16 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21 |
|
|
|
11 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21 |
) |
|
|
(5 |
) |
|
|
(16 |
) |
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Interest and Other Income (Deductions) |
|
(66 |
) |
|
|
1 |
|
|
|
(67 |
) |
|
|
(517 |
) |
|
|
3 |
|
|
|
(520 |
) |
Interest Expense |
|
(68 |
) |
|
|
(4 |
) |
|
|
(64 |
) |
|
|
(157 |
) |
|
|
(4 |
) |
|
|
(153 |
) |
Loss before Income Taxes |
|
(134 |
) |
|
|
(3 |
) |
|
|
(131 |
) |
|
|
(695 |
) |
|
|
(6 |
) |
|
|
(689 |
) |
Income Tax Expense
(Benefit) |
|
(33 |
) |
|
|
(1 |
) |
|
|
(32 |
) |
|
|
(164 |
) |
|
|
3 |
|
|
|
(167 |
) |
Net Loss |
$ |
(101 |
) |
|
$ |
(2 |
) |
|
$ |
(99 |
) |
|
$ |
(531 |
) |
|
$ |
(9 |
) |
|
$ |
(522 |
) |
Net Loss Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
CORPORATE |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
|
2022 |
|
|
Variance |
Revenues from External
Customers |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
165 |
|
|
$ |
(165 |
) |
Intersegment Revenues |
|
932 |
|
|
|
1,183 |
|
|
|
(251 |
) |
|
|
4,388 |
|
|
|
4,430 |
|
|
|
(42 |
) |
Total Operating Revenues |
|
932 |
|
|
|
1,183 |
|
|
|
(251 |
) |
|
|
4,388 |
|
|
|
4,595 |
|
|
|
(207 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
8,345 |
|
|
|
4,801 |
|
|
|
3,544 |
|
|
|
19,115 |
|
|
|
14,841 |
|
|
|
4,274 |
|
Property, Franchise and Other Taxes |
|
129 |
|
|
|
139 |
|
|
|
(10 |
) |
|
|
525 |
|
|
|
511 |
|
|
|
14 |
|
Depreciation, Depletion and Amortization |
|
115 |
|
|
|
45 |
|
|
|
70 |
|
|
|
429 |
|
|
|
183 |
|
|
|
246 |
|
|
|
8,589 |
|
|
|
4,985 |
|
|
|
3,604 |
|
|
|
20,069 |
|
|
|
15,535 |
|
|
|
4,534 |
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
(7,657 |
) |
|
|
(3,802 |
) |
|
|
(3,855 |
) |
|
|
(15,681 |
) |
|
|
(10,940 |
) |
|
|
(4,741 |
) |
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(354 |
) |
|
|
(1,017 |
) |
|
|
663 |
|
|
|
(1,417 |
) |
|
|
(4,069 |
) |
|
|
2,652 |
|
Interest and Other Income |
|
36,337 |
|
|
|
33,712 |
|
|
|
2,625 |
|
|
|
147,935 |
|
|
|
126,648 |
|
|
|
21,287 |
|
Interest Expense on Long-Term Debt |
|
(28,449 |
) |
|
|
(30,207 |
) |
|
|
1,758 |
|
|
|
(111,948 |
) |
|
|
(120,507 |
) |
|
|
8,559 |
|
Other Interest Expense |
|
(6,089 |
) |
|
|
(3,262 |
) |
|
|
(2,827 |
) |
|
|
(23,370 |
) |
|
|
(8,211 |
) |
|
|
(15,159 |
) |
Loss before Income Taxes |
|
(6,212 |
) |
|
|
(4,576 |
) |
|
|
(1,636 |
) |
|
|
(4,481 |
) |
|
|
(17,079 |
) |
|
|
12,598 |
|
Income Tax Benefit |
|
(526 |
) |
|
|
(952 |
) |
|
|
426 |
|
|
|
(983 |
) |
|
|
(4,429 |
) |
|
|
3,446 |
|
Net Loss |
$ |
(5,686 |
) |
|
$ |
(3,624 |
) |
|
$ |
(2,062 |
) |
|
$ |
(3,498 |
) |
|
$ |
(12,650 |
) |
|
$ |
9,152 |
|
Net Loss Per Share
(Diluted) |
$ |
(0.06 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.13 |
) |
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
INTERSEGMENT
ELIMINATIONS |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
|
2022 |
|
|
Variance |
Intersegment Revenues |
$ |
(83,334 |
) |
|
$ |
(82,217 |
) |
|
$ |
(1,117 |
) |
|
$ |
(340,940 |
) |
|
$ |
(319,127 |
) |
|
$ |
(21,813 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
(27,934 |
) |
|
|
(27,359 |
) |
|
|
(575 |
) |
|
|
(112,036 |
) |
|
|
(107,762 |
) |
|
|
(4,274 |
) |
Operation and Maintenance |
|
(55,400 |
) |
|
|
(54,858 |
) |
|
|
(542 |
) |
|
|
(228,904 |
) |
|
|
(211,365 |
) |
|
|
(17,539 |
) |
|
|
(83,334 |
) |
|
|
(82,217 |
) |
|
|
(1,117 |
) |
|
|
(340,940 |
) |
|
|
(319,127 |
) |
|
|
(21,813 |
) |
Operating Income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Interest and Other Deductions |
|
(39,242 |
) |
|
|
(36,485 |
) |
|
|
(2,757 |
) |
|
|
(150,627 |
) |
|
|
(134,861 |
) |
|
|
(15,766 |
) |
Interest Expense |
|
39,242 |
|
|
|
36,485 |
|
|
|
2,757 |
|
|
|
150,627 |
|
|
|
134,861 |
|
|
|
15,766 |
|
Net Income |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Net Income Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION (Continued) |
(Thousands of Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2023 |
|
|
|
2022 |
|
|
(Decrease) |
|
|
2023 |
|
|
|
2022 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production(1) |
$ |
144,938 |
|
(2) |
$ |
160,056 |
|
(3) |
$ |
(15,118 |
) |
|
$ |
737,725 |
|
(2)(3) |
$ |
565,791 |
|
(3)(4) |
$ |
171,934 |
|
Pipeline and Storage |
|
75,109 |
|
(2) |
|
37,563 |
|
(3) |
|
37,546 |
|
|
|
141,877 |
|
(2)(3) |
|
95,806 |
|
(3)(4) |
|
46,071 |
|
Gathering |
|
47,917 |
|
(2) |
|
26,957 |
|
(3) |
|
20,960 |
|
|
|
103,295 |
|
(2)(3) |
|
55,546 |
|
(3)(4) |
|
47,749 |
|
Utility |
|
51,246 |
|
(2) |
|
40,061 |
|
(3) |
|
11,185 |
|
|
|
139,922 |
|
(2)(3) |
|
111,033 |
|
(3)(4) |
|
28,889 |
|
Total Reportable Segments |
|
319,210 |
|
|
|
264,637 |
|
|
|
54,573 |
|
|
|
1,122,819 |
|
|
|
828,176 |
|
|
|
294,643 |
|
All Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Corporate |
|
305 |
|
|
|
549 |
|
|
|
(244 |
) |
|
|
754 |
|
|
|
1,212 |
|
|
|
(458 |
) |
Total Capital Expenditures |
$ |
319,515 |
|
|
$ |
265,186 |
|
|
$ |
54,329 |
|
|
$ |
1,123,573 |
|
|
$ |
829,388 |
|
|
$ |
294,185 |
|
(1) |
The year ended September 30, 2023 includes $124.8 million related
to the acquisition of upstream assets acquired from SWN, as well as
$25.0 million related to the acquisition of assets from EXCO and
UGI. The acquisition cost for the assets acquired from SWN is
reported as a component of Acquisition of Upstream Assets on the
Consolidated Statement of Cash Flows. |
(2) |
Capital expenditures for the quarter and year ended September 30,
2023, include accounts payable and accrued liabilities related to
capital expenditures of $43.2 million, $31.8 million, $20.6
million, and $13.6 million in the Exploration and Production
segment, Pipeline and Storage segment, Gathering segment and
Utility segment, respectively. These amounts have been excluded
from the Consolidated Statement of Cash Flows at September 30,
2023, since they represent non-cash investing activities at that
date. |
(3) |
Capital expenditures for the year ended September 30, 2023, exclude
capital expenditures of $83.0 million, $15.2 million, $10.7 million
and $11.4 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility
segment, respectively. These amounts were in accounts payable and
accrued liabilities at September 30, 2022 and paid during the year
ended September 30, 2023. These amounts were excluded from the
Consolidated Statement of Cash Flows at September 30, 2022, since
they represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at September 30, 2023. |
(4) |
Capital expenditures for the year ended September 30, 2022, exclude
capital expenditures of $47.9 million, $39.4 million, $4.8 million
and $10.6 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility
segment, respectively. These amounts were in accounts payable and
accrued liabilities at September 30, 2021 and paid during the year
ended September 30, 2022. These amounts were excluded from the
Consolidated Statement of Cash Flows at September 30, 2021, since
they represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at September 30, 2022. |
|
|
DEGREE
DAYS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Colder |
|
|
|
|
|
|
|
|
|
|
(Warmer) Than: |
Three Months Ended
September 30, |
Normal |
|
2023 |
|
2022 |
|
Normal (1) |
|
Last Year (1) |
Buffalo, NY |
162 |
|
|
61 |
|
|
107 |
|
|
(62.3 |
) |
|
(43.0 |
) |
Erie, PA |
81 |
|
|
59 |
|
|
94 |
|
|
(27.2 |
) |
|
(37.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo, NY |
6,617 |
|
|
5,717 |
|
|
5,769 |
|
|
(13.6 |
) |
|
(0.9 |
) |
Erie, PA |
6,104 |
|
|
5,493 |
|
|
5,368 |
|
|
(10.0 |
) |
|
2.3 |
|
(1) |
Percents compare actual 2023 degree days to normal degree days and
actual 2023 degree days to actual 2022 degree days. |
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2023 |
|
|
|
2022 |
|
|
(Decrease) |
|
|
2023 |
|
|
|
2022 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
Gas
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
Production (MMcf) |
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
93,709 |
|
|
|
87,858 |
|
|
|
5,851 |
|
|
|
372,271 |
|
|
|
341,700 |
|
|
|
30,571 |
|
West Coast |
|
— |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
1,211 |
|
|
|
(1,211 |
) |
Total Production |
|
93,709 |
|
|
|
87,859 |
|
|
|
5,850 |
|
|
|
372,271 |
|
|
|
342,911 |
|
|
|
29,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Mcf) |
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
$ |
1.99 |
|
|
$ |
6.16 |
|
|
$ |
(4.17 |
) |
|
$ |
2.78 |
|
|
$ |
5.03 |
|
|
$ |
(2.25 |
) |
West Coast |
N/M |
|
N/M |
|
N/M |
|
N/M |
|
|
10.03 |
|
|
N/M |
Weighted Average |
|
1.99 |
|
|
|
6.16 |
|
|
|
(4.17 |
) |
|
|
2.78 |
|
|
|
5.05 |
|
|
|
(2.27 |
) |
Weighted Average after Hedging |
|
2.33 |
|
|
|
2.84 |
|
|
|
(0.51 |
) |
|
|
2.55 |
|
|
|
2.71 |
|
|
|
(0.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Oil
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
Production (Thousands of
Barrels) |
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
8 |
|
|
|
7 |
|
|
|
1 |
|
|
|
30 |
|
|
|
16 |
|
|
|
14 |
|
West Coast |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,588 |
|
|
|
(1,588 |
) |
Total Production |
|
8 |
|
|
|
7 |
|
|
|
1 |
|
|
|
30 |
|
|
|
1,604 |
|
|
|
(1,574 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per
Barrel) |
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
$ |
76.02 |
|
|
$ |
90.22 |
|
|
$ |
(14.20 |
) |
|
$ |
75.64 |
|
|
$ |
97.82 |
|
|
$ |
(22.18 |
) |
West Coast |
N/M |
|
N/M |
|
N/M |
|
N/M |
|
|
94.06 |
|
|
N/M |
Weighted Average |
|
76.02 |
|
|
|
90.93 |
|
|
|
(14.91 |
) |
|
|
75.64 |
|
|
|
94.10 |
|
|
|
(18.46 |
) |
Weighted Average after Hedging (1) |
|
76.02 |
|
|
|
90.86 |
|
|
|
(14.84 |
) |
|
|
75.64 |
|
|
|
70.80 |
|
|
|
4.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production (MMcfe) |
|
93,757 |
|
|
|
87,901 |
|
|
|
5,856 |
|
|
|
372,451 |
|
|
|
352,535 |
|
|
|
19,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Performance Statistics: |
|
|
|
|
|
|
|
|
|
|
|
General & Administrative
Expense per Mcfe (2) |
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
— |
|
|
$ |
0.18 |
|
|
$ |
0.20 |
|
|
$ |
(0.02 |
) |
Lease Operating and
Transportation Expense per Mcfe (2)(3) |
$ |
0.69 |
|
|
$ |
0.71 |
|
|
$ |
(0.02 |
) |
|
$ |
0.68 |
|
|
$ |
0.81 |
|
|
$ |
(0.13 |
) |
Depreciation, Depletion &
Amortization per Mcfe (2) |
$ |
0.71 |
|
|
$ |
0.60 |
|
|
$ |
0.11 |
|
|
$ |
0.65 |
|
|
$ |
0.59 |
|
|
$ |
0.06 |
|
N/M Not Meaningful (as a result of the sale of Seneca's West Coast
assets in June 2022) |
|
|
(1) |
Weighted average oil price after hedging for the twelve months
ended September 30, 2022 excludes a loss on discontinuance of crude
oil cash flow hedges of $44.6 million. |
|
|
(2) |
Refer to page 15 for the General and Administrative Expense, Lease
Operating and Transportation Expense and Depreciation, Depletion,
and Amortization Expense for the Exploration and Production
segment. General and Administrative Expense per Mcfe for the twelve
months ended September 30, 2022 excludes transaction and severance
costs related to the California asset sale. |
|
|
(3) |
Amounts include transportation expense of $0.55 and $0.58 per Mcfe
for the three months ended September 30, 2023 and September 30,
2022, respectively. Amounts include transportation expense of $0.57
and $0.57 per Mcfe for the twelve months ended September 30, 2023
and September 30, 2022, respectively. |
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
Hedging Summary for
Fiscal 2024 |
|
Volume |
|
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
134,930,000 |
|
MMBTU |
|
$ |
|
3.34 / MMBTU |
No Cost Collars |
|
65,280,000 |
|
MMBTU |
|
$ |
|
3.33 / MMBTU (Floor) / $4.17 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
83,196,787 |
|
MMBTU |
|
$ |
|
2.44 / MMBTU |
Total |
|
283,406,787 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2025 |
|
Volume |
|
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
88,810,000 |
|
MMBTU |
|
$ |
|
3.53 / MMBTU |
No Cost Collars |
|
43,960,000 |
|
MMBTU |
|
$ |
|
3.49 / MMBTU (Floor) / $4.65 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
75,047,438 |
|
MMBTU |
|
$ |
|
2.49 / MMBTU |
Total |
|
207,817,438 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2026 |
|
Volume |
|
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
38,020,000 |
|
MMBTU |
|
$ |
|
3.98 / MMBTU |
No Cost Collars |
|
42,720,000 |
|
MMBTU |
|
$ |
|
3.53 / MMBTU (Floor) / $4.76 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
66,821,415 |
|
MMBTU |
|
$ |
|
2.39 / MMBTU |
Total |
|
147,561,415 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2027 |
|
Volume |
|
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
13,500,000 |
|
MMBTU |
|
$ |
|
4.25 / MMBTU |
No Cost Collars |
|
3,560,000 |
|
MMBTU |
|
$ |
|
3.53 / MMBTU (Floor) / $4.76 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
46,128,777 |
|
MMBTU |
|
$ |
|
2.39 / MMBTU |
Total |
|
63,188,777 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2028 |
|
Volume |
|
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
1,000,000 |
|
MMBTU |
|
$ |
|
4.29 / MMBTU |
Fixed Price Physical
Sales |
|
12,208,068 |
|
MMBTU |
|
$ |
|
2.48 / MMBTU |
Total |
|
13,208,068 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2029 |
|
Volume |
|
|
|
Average Hedge
Price |
Fixed Price Physical
Sales |
|
788,352 |
|
MMBTU |
|
$ |
|
2.54 / MMBTU |
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
|
Reserve Quantity Information |
(Unaudited) |
|
|
|
|
|
Gas MMcf |
|
U.S. |
|
Appalachian |
|
Region |
Proved Developed and
Undeveloped Reserves: |
|
September 30, 2022 |
4,170,662 |
|
Extensions and
Discoveries |
670,438 |
|
Revisions of Previous
Estimates |
32,379 |
|
Production |
(372,271 |
) |
Purchases of Minerals in
Place |
33,876 |
|
September 30, 2023 |
4,535,084 |
|
|
|
Proved Developed
Reserves: |
|
September 30, 2022 |
3,312,568 |
|
September 30, 2023 |
3,550,034 |
|
|
|
|
|
|
Oil Mbbl |
|
U.S. |
|
Appalachian |
|
Region |
Proved Developed and
Undeveloped Reserves: |
|
September 30, 2022 |
250 |
|
Extensions and
Discoveries |
— |
|
Revisions of Previous
Estimates |
(4 |
) |
Production |
(30 |
) |
September 30, 2023 |
216 |
|
|
|
Proved Developed
Reserves: |
|
September 30, 2022 |
250 |
|
September 30, 2023 |
216 |
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline
& Storage Throughput - (millions of cubic feet -
MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
|
|
|
|
|
|
Increase |
|
|
|
|
|
|
|
Increase |
|
2023 |
|
2022 |
|
(Decrease) |
|
2023 |
|
2022 |
|
(Decrease) |
Firm Transportation - Affiliated |
17,589 |
|
|
16,943 |
|
|
646 |
|
|
126,500 |
|
|
111,157 |
|
|
15,343 |
|
Firm Transportation -
Non-Affiliated |
161,750 |
|
|
171,983 |
|
|
(10,233 |
) |
|
689,984 |
|
|
679,260 |
|
|
10,724 |
|
Interruptible
Transportation |
168 |
|
|
3,886 |
|
|
(3,718 |
) |
|
2,192 |
|
|
5,612 |
|
|
(3,420 |
) |
|
179,507 |
|
|
192,812 |
|
|
(13,305 |
) |
|
818,676 |
|
|
796,029 |
|
|
22,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering Volume -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
|
|
|
|
|
|
Increase |
|
|
|
|
|
|
|
Increase |
|
2023 |
|
2022 |
|
(Decrease) |
|
2023 |
|
2022 |
|
(Decrease) |
Gathered Volume |
117,260 |
|
|
104,707 |
|
|
12,553 |
|
|
453,338 |
|
|
419,332 |
|
|
34,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Throughput -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
|
|
|
|
|
|
Increase |
|
|
|
|
|
|
|
Increase |
|
2023 |
|
|
2022 |
|
|
(Decrease) |
|
2023 |
|
|
2022 |
|
|
(Decrease) |
Retail Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Sales |
3,765 |
|
|
4,146 |
|
|
(381 |
) |
|
61,401 |
|
|
64,011 |
|
|
(2,610 |
) |
Commercial Sales |
530 |
|
|
644 |
|
|
(114 |
) |
|
9,342 |
|
|
9,621 |
|
|
(279 |
) |
Industrial Sales |
42 |
|
|
75 |
|
|
(33 |
) |
|
548 |
|
|
541 |
|
|
7 |
|
|
4,337 |
|
|
4,865 |
|
|
(528 |
) |
|
71,291 |
|
|
74,173 |
|
|
(2,882 |
) |
Transportation |
9,419 |
|
|
9,720 |
|
|
(301 |
) |
|
62,986 |
|
|
65,993 |
|
|
(3,007 |
) |
|
13,756 |
|
|
14,585 |
|
|
(829 |
) |
|
134,277 |
|
|
140,166 |
|
|
(5,889 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES
|
|
NON-GAAP FINANCIAL MEASURES
|
In addition to financial measures calculated in accordance with
generally accepted accounting principles (GAAP), this press release
contains information regarding Adjusted Operating Results, Adjusted
EBITDA and free cash flow, which are non-GAAP financial measures.
The Company believes that these non-GAAP financial measures are
useful to investors because they provide an alternative method for
assessing the Company's ongoing operating results or liquidity and
for comparing the Company’s financial performance to other
companies. The Company's management uses these non-GAAP financial
measures for the same purpose, and for planning and forecasting
purposes. The presentation of non-GAAP financial measures is not
meant to be a substitute for financial measures in accordance with
GAAP.
Management defines Adjusted Operating Results as
reported GAAP earnings before items impacting comparability. The
following table reconciles National Fuel's reported GAAP earnings
to Adjusted Operating Results for the three and twelve months ended
September 30, 2023 and 2022:
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
(in thousands except per share amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Reported GAAP
Earnings |
$ |
73,677 |
|
|
$ |
158,143 |
|
|
$ |
476,866 |
|
|
$ |
566,021 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
Items related to West Coast asset sale: |
|
|
|
|
|
|
|
Gain on sale of West Coast assets (E&P) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,736 |
) |
Tax impact of gain on sale of West Coast assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,225 |
|
Loss from discontinuance of crude oil cash flow hedges
(E&P) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
44,632 |
|
Tax impact of loss from discontinuance of crude oil cash flow
hedges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11,303 |
) |
Transaction and severance costs (E&P) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,693 |
|
Tax impact of transaction and severance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,455 |
) |
Total items impacting comparability related to West Coast asset
sale |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31,056 |
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset (E&P) |
|
(2,803 |
) |
|
|
4,395 |
|
|
|
899 |
|
|
|
4,395 |
|
Tax impact of unrealized (gain) loss on derivative asset |
|
775 |
|
|
|
(1,203 |
) |
|
|
(240 |
) |
|
|
(1,203 |
) |
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
719 |
|
|
|
1,532 |
|
|
|
(913 |
) |
|
|
11,625 |
|
Tax impact of unrealized (gain) loss on other investments |
|
(151 |
) |
|
|
(322 |
) |
|
|
192 |
|
|
|
(2,441 |
) |
Reversal of deferred tax valuation allowance |
|
— |
|
|
|
(24,850 |
) |
|
|
— |
|
|
|
(24,850 |
) |
Remeasurement of deferred income taxes from Pennsylvania state
income tax rate reduction |
|
— |
|
|
|
(28,406 |
) |
|
|
— |
|
|
|
(28,406 |
) |
Reduction of other post-retirement regulatory liability
(Utility) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(18,533 |
) |
Tax impact of reduction of other post-retirement regulatory
liability |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,892 |
|
Adjusted Operating
Results |
$ |
72,217 |
|
|
$ |
109,289 |
|
|
$ |
476,804 |
|
|
$ |
541,556 |
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
$ |
0.80 |
|
|
$ |
1.71 |
|
|
$ |
5.17 |
|
|
$ |
6.15 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
Items related to West Coast asset sale: |
|
|
|
|
|
|
|
Gain on sale of West Coast assets, net of tax (E&P) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.10 |
) |
Loss from discontinuance of crude oil cash flow hedges, net of tax
(E&P) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.36 |
|
Transaction and severance costs, net of tax (E&P) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.08 |
|
Total items impacting comparability related to West Coast asset
sale |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.34 |
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset, net of tax
(E&P) |
|
(0.02 |
) |
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.03 |
|
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
|
0.01 |
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
0.10 |
|
Reversal of deferred tax valuation allowance |
|
— |
|
|
|
(0.27 |
) |
|
|
— |
|
|
|
(0.27 |
) |
Remeasurement of deferred income taxes from Pennsylvania state
income tax rate reduction |
|
— |
|
|
|
(0.31 |
) |
|
|
— |
|
|
|
(0.31 |
) |
Reduction of other post-retirement regulatory liability, net of tax
(Utility) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.16 |
) |
Rounding |
|
(0.01 |
) |
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Adjusted Operating
Results Per Share |
$ |
0.78 |
|
|
$ |
1.19 |
|
|
$ |
5.17 |
|
|
$ |
5.88 |
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
NON-GAAP FINANCIAL MEASURES (Continued)
|
Management defines Adjusted EBITDA as reported GAAP earnings before
the following items: interest expense, income taxes, depreciation,
depletion and amortization, other income and deductions,
impairments, and other items reflected in operating income that
impact comparability. The following tables reconcile National
Fuel's reported GAAP earnings to Adjusted EBITDA for the three and
twelve months ended September 30, 2023 and 2022:
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Reported GAAP
Earnings |
$ |
73,677 |
|
|
$ |
158,143 |
|
|
$ |
476,866 |
|
|
$ |
566,021 |
|
Depreciation, Depletion and Amortization |
|
109,599 |
|
|
|
94,109 |
|
|
|
409,573 |
|
|
|
369,790 |
|
Other (Income) Deductions |
|
(5,384 |
) |
|
|
4,800 |
|
|
|
(18,138 |
) |
|
|
1,509 |
|
Interest Expense |
|
32,902 |
|
|
|
33,496 |
|
|
|
131,886 |
|
|
|
130,357 |
|
Income Taxes |
|
24,108 |
|
|
|
(18,643 |
) |
|
|
164,533 |
|
|
|
116,629 |
|
Gain on Sale of Assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,736 |
) |
Loss from discontinuance of crude oil cash flow hedges
(E&P) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
44,632 |
|
Transaction and severance costs related to West Coast asset sale
(E&P) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,693 |
|
Adjusted
EBITDA |
$ |
234,902 |
|
|
$ |
271,905 |
|
|
$ |
1,164,720 |
|
|
$ |
1,225,895 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Segment |
|
|
|
|
|
|
|
Pipeline and Storage Adjusted
EBITDA |
$ |
56,236 |
|
|
$ |
59,819 |
|
|
$ |
237,327 |
|
|
$ |
240,904 |
|
Gathering Adjusted EBITDA |
|
46,874 |
|
|
|
43,335 |
|
|
|
185,882 |
|
|
|
176,572 |
|
Total Midstream Businesses
Adjusted EBITDA |
|
103,110 |
|
|
|
103,154 |
|
|
|
423,209 |
|
|
|
417,476 |
|
Exploration and Production
Adjusted EBITDA |
|
132,641 |
|
|
|
166,238 |
|
|
|
611,782 |
|
|
|
656,310 |
|
Utility Adjusted EBITDA |
|
6,693 |
|
|
|
6,270 |
|
|
|
145,002 |
|
|
|
162,871 |
|
Corporate and All Other
Adjusted EBITDA |
|
(7,542 |
) |
|
|
(3,757 |
) |
|
|
(15,273 |
) |
|
|
(10,762 |
) |
Total Adjusted
EBITDA |
$ |
234,902 |
|
|
$ |
271,905 |
|
|
$ |
1,164,720 |
|
|
$ |
1,225,895 |
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
NON-GAAP FINANCIAL MEASURES
|
SEGMENT ADJUSTED EBITDA
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Exploration and
Production Segment |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
36,772 |
|
|
$ |
116,077 |
|
|
$ |
232,275 |
|
|
$ |
306,064 |
|
Depreciation, Depletion and Amortization |
|
66,394 |
|
|
|
52,958 |
|
|
|
241,142 |
|
|
|
208,148 |
|
Other (Income) Deductions |
|
(3,804 |
) |
|
|
3,266 |
|
|
|
(3,748 |
) |
|
|
3,210 |
|
Interest Expense |
|
15,268 |
|
|
|
14,474 |
|
|
|
54,317 |
|
|
|
53,401 |
|
Income Taxes |
|
18,011 |
|
|
|
(20,537 |
) |
|
|
87,796 |
|
|
|
43,898 |
|
Gain on Sale of West Coast Assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,736 |
) |
Loss from Discontinuance of Crude Oil Cash Flow Hedges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
44,632 |
|
Transaction and Severance Costs related to West Coast Asset
Sale |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,693 |
|
Adjusted EBITDA |
$ |
132,641 |
|
|
$ |
166,238 |
|
|
$ |
611,782 |
|
|
$ |
656,310 |
|
|
|
|
|
|
|
|
|
Pipeline and
Storage Segment |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
23,354 |
|
|
$ |
25,320 |
|
|
$ |
100,501 |
|
|
$ |
102,557 |
|
Depreciation, Depletion and Amortization |
|
17,953 |
|
|
|
17,283 |
|
|
|
70,827 |
|
|
|
67,701 |
|
Other (Income) Deductions |
|
(3,347 |
) |
|
|
(2,257 |
) |
|
|
(11,989 |
) |
|
|
(6,889 |
) |
Interest Expense |
|
10,796 |
|
|
|
10,929 |
|
|
|
43,499 |
|
|
|
42,492 |
|
Income Taxes |
|
7,480 |
|
|
|
8,544 |
|
|
|
34,489 |
|
|
|
35,043 |
|
Adjusted EBITDA |
$ |
56,236 |
|
|
$ |
59,819 |
|
|
$ |
237,327 |
|
|
$ |
240,904 |
|
|
|
|
|
|
|
|
|
Gathering
Segment |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
26,517 |
|
|
$ |
31,224 |
|
|
$ |
99,724 |
|
|
$ |
101,111 |
|
Depreciation, Depletion and Amortization |
|
9,111 |
|
|
|
8,656 |
|
|
|
35,725 |
|
|
|
33,998 |
|
Other (Income) Deductions |
|
(112 |
) |
|
|
(61 |
) |
|
|
(684 |
) |
|
|
26 |
|
Interest Expense |
|
3,433 |
|
|
|
4,105 |
|
|
|
14,989 |
|
|
|
16,488 |
|
Income Taxes |
|
7,925 |
|
|
|
(589 |
) |
|
|
36,128 |
|
|
|
24,949 |
|
Adjusted EBITDA |
$ |
46,874 |
|
|
$ |
43,335 |
|
|
$ |
185,882 |
|
|
$ |
176,572 |
|
|
|
|
|
|
|
|
|
Utility
Segment |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
(7,179 |
) |
|
$ |
(10,852 |
) |
|
$ |
48,395 |
|
|
$ |
68,948 |
|
Depreciation, Depletion and Amortization |
|
16,026 |
|
|
|
15,167 |
|
|
|
61,450 |
|
|
|
59,760 |
|
Other (Income) Deductions |
|
(1,446 |
) |
|
|
63 |
|
|
|
(6,343 |
) |
|
|
(7,117 |
) |
Interest Expense |
|
8,041 |
|
|
|
7,000 |
|
|
|
34,233 |
|
|
|
24,115 |
|
Income Taxes |
|
(8,749 |
) |
|
|
(5,108 |
) |
|
|
7,267 |
|
|
|
17,165 |
|
Adjusted EBITDA |
$ |
6,693 |
|
|
$ |
6,270 |
|
|
$ |
145,002 |
|
|
$ |
162,871 |
|
|
|
|
|
|
|
|
|
Corporate and All
Other |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
(5,787 |
) |
|
$ |
(3,626 |
) |
|
$ |
(4,029 |
) |
|
$ |
(12,659 |
) |
Depreciation, Depletion and Amortization |
|
115 |
|
|
|
45 |
|
|
|
429 |
|
|
|
183 |
|
Other (Income) Deductions |
|
3,325 |
|
|
|
3,789 |
|
|
|
4,626 |
|
|
|
12,279 |
|
Interest Expense |
|
(4,636 |
) |
|
|
(3,012 |
) |
|
|
(15,152 |
) |
|
|
(6,139 |
) |
Income Taxes |
|
(559 |
) |
|
|
(953 |
) |
|
|
(1,147 |
) |
|
|
(4,426 |
) |
Adjusted EBITDA |
$ |
(7,542 |
) |
|
$ |
(3,757 |
) |
|
$ |
(15,273 |
) |
|
$ |
(10,762 |
) |
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
NON-GAAP FINANCIAL MEASURES
|
FREE CASH FLOW
|
Management defines free cash flow as net cash provided by operating
activities, less net cash used in investing activities, adjusted
for acquisitions and divestitures. The following table reconciles
National Fuel's free cash flow to Net Cash Provided by Operating
Activities on the Consolidated Statement of Cash Flows for the
twelve months ended September 30, 2023 and 2022:
|
Twelve Months Ended |
|
September 30, |
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
|
|
Net Cash Provided by
Operating Activities |
$ |
1,237,075 |
|
|
$ |
812,521 |
|
|
|
|
|
Less: |
|
|
|
Net Cash Used in Investing Activities |
|
1,112,347 |
|
|
|
518,704 |
|
Proceeds from Divestitures |
|
— |
|
|
|
254,439 |
|
|
|
124,728 |
|
|
|
39,378 |
|
Plus: |
|
|
|
Acquisitions |
|
124,758 |
|
|
|
— |
|
Upstream Acquisitions Included in Capital
Expenditures(1) |
|
25,057 |
|
|
|
— |
|
|
|
|
|
Free Cash
Flow |
$ |
274,543 |
|
|
$ |
39,378 |
|
(1) |
$25.0 million related to the acquisition of assets from EXCO and
UGI included in Capital Expenditures on the Consolidated Statement
of Cash Flows. |
|
|
Brandon J. Haspett
Investor Relations
716-857-7697
Timothy J. Silverstein
Treasurer
716-857-6987
National Fuel Gas (NYSE:NFG)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
National Fuel Gas (NYSE:NFG)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024