National Fuel Gas Company (“National Fuel” or the “Company”)
(NYSE:NFG) today announced consolidated results for the first
quarter of its 2024 fiscal year.
FISCAL 2024 FIRST QUARTER
SUMMARY
- GAAP net income of
$133.0 million, or $1.44 per share, compared to GAAP net income of
$169.7 million, or $1.84 per share, in the prior year.
- Adjusted operating
results of $135.2 million, or $1.46 per share, compared to $169.5
million, or $1.84 per share, in the prior year (see non-GAAP
reconciliation on page 2).
- Exploration &
Production segment produced 101 Bcf of natural gas, an increase of
11% from the prior year, and 8% higher than the fiscal 2023 fourth
quarter, driven by strong operational execution in its Eastern
Development Area.
- Gathering segment
earnings increased $4.1 million, or 17%, from the prior year
primarily as a result of an increase in throughput from both Seneca
Resources and third-party producers.
- Utility segment
earnings increased by $2.7 million, or 11%, from the prior year
primarily due to an increase in base rates from our 2023
Pennsylvania jurisdiction rate case settlement.
- Seneca Resources
achieved a peer-leading “A” grade under Equitable Origin's EO100TM
Standard for 100% of Appalachian natural gas production, as part of
an annual verification audit.
MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive
Officer of National Fuel Gas Company, stated: “National Fuel had a
strong start to fiscal 2024, with solid operational execution
across our businesses. We continued to see excellent well results
in our Eastern Development Area (“EDA”), which led to double-digit
increases in Seneca’s production and Gathering segment throughput.
As we continue to high-grade our upstream activity and focus our
development activities in the EDA where we have more than a decade
of high-quality inventory, we expect an ongoing improvement in
capital efficiency and free cash flow generation.
“In our regulated businesses, the positive
impacts of our recently settled rate case in Pennsylvania drove
increased Utility earnings. As we move through the remainder of
this year and into 2025, we expect our other ongoing rate
proceedings will contribute to a further improvement in earnings.
Longer-term, the continued need to invest in modernizing our
infrastructure positions us well to deliver additional growth for
the foreseeable future.
“Taken together, the long-term outlook for
meaningful growth in our regulated businesses, improving capital
efficiency and free cash flow generation potential from our
non-regulated operations, and the strength of our investment grade
balance sheet, position the Company to deliver significant
shareholder value well into the future.”
RECONCILIATION OF GAAP EARNINGS TO
ADJUSTED OPERATING RESULTS
|
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
(in thousands except per share amounts) |
|
|
2023 |
|
|
|
2022 |
|
Reported GAAP
Earnings |
|
$ |
133,020 |
|
|
$ |
169,689 |
|
Items impacting comparability: |
|
|
|
|
Unrealized (gain) loss on derivative asset (E&P) |
|
|
4,198 |
|
|
|
— |
|
Tax impact of unrealized (gain) loss on derivative asset |
|
|
(1,151 |
) |
|
|
— |
|
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
|
(1,049 |
) |
|
|
(209 |
) |
Tax impact of unrealized (gain) loss on other investments |
|
|
220 |
|
|
|
44 |
|
Adjusted Operating Results |
|
$ |
135,238 |
|
|
$ |
169,524 |
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
|
$ |
1.44 |
|
|
$ |
1.84 |
|
Items impacting comparability: |
|
|
|
|
Unrealized (gain) loss on derivative asset, net of tax
(E&P) |
|
|
0.03 |
|
|
|
— |
|
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
|
|
(0.01 |
) |
|
|
— |
|
Adjusted Operating
Results Per Share |
|
$ |
1.46 |
|
|
$ |
1.84 |
|
FISCAL 2024 GUIDANCE UPDATE
National Fuel is revising its fiscal 2024
earnings guidance to reflect the results of the first quarter,
along with updated forecast assumptions and projections. The
Company is now projecting that earnings, excluding items impacting
comparability, will be within the range of $4.90 to $5.20 per
share, a decrease of $0.60 per share from the midpoint of the
Company’s prior guidance range. The decrease from the Company’s
prior earnings guidance primarily reflects the impact of lower
natural gas price expectations, partially offset by the improved
outlook for both production and lease operating and transportation
expense (“LOE”) in the Exploration and Production segment.
The Company is now assuming that NYMEX natural
gas prices will average $2.40 per MMBtu for the remainder of fiscal
2024, a decrease of $0.85 per MMBtu from the $3.25 per MMBtu
assumed in the previous guidance. 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.
The Exploration and Production segment’s fiscal
2024 net production guidance is now expected to be in the range of
395 to 410 Bcf, an increase of 2.5 Bcf at the midpoint. This
guidance range does not incorporate any price-related curtailments
over the remainder of the fiscal year. Seneca currently has firm
sales contracts in place for approximately 90% of its projected
remaining fiscal 2024 production, limiting its exposure to in-basin
markets. Approximately 72% of Seneca’s expected remaining
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.
The Company’s consolidated capital expenditures
are now expected to be in the range of $885 to $1,000 million, a 2%
increase from the midpoint of previous guidance. This increase is
due to the estimated impact of New York State’s recently enacted
Roadway Excavation Quality Assurance Act (“REQAA”), which requires
that contractors pay state published prevailing wages to their
employees on projects that require a permit to operate in a public
right of way. We anticipate these higher costs to be passed on to
the Company, which are expected to be recoverable and are being
addressed in the Company’s ongoing rate case proceeding in New
York.
The Company’s other guidance assumptions remain
largely unchanged from the previous guidance. The details are
outlined in the table on page 7.
DISCUSSION OF FIRST QUARTER RESULTS BY
SEGMENT
The following earnings discussion of each
operating segment for the quarter ended December 31, 2023 is
summarized in a tabular form on pages 8 and 9 of this report. 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 |
|
December 31 |
(in thousands) |
|
2023 |
|
|
2022 |
|
Variance |
GAAP Earnings |
$ |
52,483 |
|
$ |
91,192 |
|
$ |
(38,709 |
) |
Unrealized (gain) loss on
derivative asset, net of tax |
|
3,047 |
|
|
— |
|
|
3,047 |
|
Adjusted Operating
Results |
$ |
55,530 |
|
$ |
91,192 |
|
$ |
(35,662 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
159,970 |
|
$ |
190,330 |
|
$ |
(30,360 |
) |
Seneca’s first quarter GAAP earnings decreased
$38.7 million versus the prior year. Higher natural gas production,
lower per unit LOE, and lower other taxes were more than offset by
lower realized natural gas prices, and increases in per unit
depreciation, depletion and amortization (“DD&A”), general and
administrative (“G&A”), other operation and maintenance
(“O&M”) and interest expenses. The earnings decrease also
includes an unrealized loss of $4.2 million ($3.0 million
after-tax) recognized during the current-year first quarter from a
reduction in the fair value of the contingent consideration Seneca
received in connection with the June 2022 divestiture of its
California assets. Excluding this loss, Seneca's earnings decreased
$35.7 million,
During this year's first quarter, Seneca
produced 100.8 Bcf of natural gas, an increase of 10.2 Bcf, or 11%,
from the prior year, largely due to production from new Marcellus
and Utica wells in Seneca's EDA.
Seneca’s average realized natural gas price,
after the impact of hedging and transportation costs, was $2.51 per
Mcf, a decrease of $0.51 per Mcf from the prior year.
On a per unit basis, LOE was $0.67 per Mcf, a
decrease of $0.01 per Mcf from the prior year. On an absolute
basis, LOE increased $5.5 million due primarily to higher
transportation and gathering costs as a result of increased
production. LOE includes $56.2 million for gathering and
compression services from NFG Midstream to connect Seneca’s
production to sales points along interstate pipelines.
G&A expense was $0.18 per Mcf, an increase
of less than $0.01 per Mcf from the prior year. On an absolute
basis, Seneca’s G&A expense increased $2.2 million primarily
due to an increase in personnel costs.
DD&A expense was $0.71 per Mcf, an increase
of $0.10 per Mcf from the prior year. Absolute DD&A expense
increased $16.4 million due to higher natural gas production and a
higher per unit DD&A rate. The higher per unit 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 $3.3 million largely as a
result of lower Impact Fees in Pennsylvania due to the decline in
NYMEX natural gas prices. Seneca's all other O&M expense
increased $3.0 million due primarily to the accrual of estimated
plugging and abandonment expenses related to certain California
wells that were sold by Seneca in 2004 to an operator that is no
longer in business. As a result, the cost of abandoning the wells
will likely revert back to Seneca.
Interest expense increased $2.0 million due
primarily to higher average interest rates combined with a higher
average amount of net borrowings.
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 |
|
December 31 |
(in thousands) |
|
2023 |
|
|
2022 |
|
Variance |
GAAP Earnings |
$ |
24,055 |
|
$ |
29,476 |
|
$ |
(5,421 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
59,142 |
|
$ |
64,528 |
|
$ |
(5,386 |
) |
The Pipeline and Storage segment’s first quarter
GAAP earnings decreased $5.4 million versus the prior year
primarily due to lower operating revenues, higher O&M and
DD&A expenses. The decrease in operating revenues of $3.2
million was primarily attributable to contract expirations that
occurred near the end of the prior-year first quarter. O&M
expense increased $1.9 million primarily due to an increase in
personnel costs. The increase in DD&A expense of $0.8 million
was attributable to higher average depreciable plant in service
compared to the prior year.
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 |
|
December 31 |
(in thousands) |
|
2023 |
|
|
2022 |
|
Variance |
GAAP Earnings |
$ |
28,825 |
|
$ |
24,738 |
|
$ |
4,087 |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
53,061 |
|
$ |
46,715 |
|
$ |
6,346 |
The Gathering segment’s first quarter GAAP
earnings increased $4.1 million versus the prior year due primarily
to higher operating revenues, partly offset by higher DD&A
expense. Operating revenues increased $6.2 million, or 11%, which
was the result of a $4.2 million increase in revenue from Seneca
and a $2.0 million increase in revenue from non-affiliated parties.
DD&A expense increased $0.7 million due primarily to higher
average depreciable plant in service compared to the prior
year.
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 |
|
December 31 |
(in thousands) |
|
2023 |
|
|
2022 |
|
Variance |
GAAP Earnings |
$ |
26,551 |
|
$ |
23,817 |
|
$ |
2,734 |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
53,366 |
|
$ |
51,577 |
|
$ |
1,789 |
The Utility segment’s first quarter GAAP
earnings increased $2.7 million versus the prior year due to higher
customer margins (operating revenues less purchased gas sold) and a
lower effective income tax rate, partially offset by increases in
O&M and DD&A expenses.
The $4.7 million increase in customer margin for
the quarter was primarily a result of the $23 million annual rate
increase in Distribution's Pennsylvania jurisdiction that was
approved last year and went into effect in August 2023. Higher
revenues from the Company’s system modernization tracking
mechanisms in its New York service territory also contributed to
the increase. These increases were partially offset by a decrease
in customer usage due in large part to warmer weather as compared
to the prior-year first quarter. The impact of temperature
fluctuations on usage and margin revenues is largely protected by
weather normalization adjustment (“WNA”) mechanisms in both the New
York and Pennsylvania jurisdictions. The Company's WNA mechanism in
Pennsylvania, which went into effect for the first time in October
2023, is subject to a dead-band threshold whereby margin impacted
by weather that is more than 3% warmer or colder than normal is
recovered or refunded through the mechanism.
O&M expense increased by $3.4 million,
primarily driven by higher personnel costs and an increase in
expenses related to the current New York rate case proceeding filed
during the quarter. These increases were partially offset by a
decline in the accrual for uncollectible accounts due to a decrease
in the natural gas commodity component of customer bills. DD&A
expense increased $1.2 million primarily due to higher average
depreciable plant in service compared to the prior year.
The reduction in the Utility segment's effective
income tax rate was primarily driven by an increase in tax
deductions related to certain repairs and maintenance expenditures
as a result of recently updated IRS guidance.
Corporate and All Other
The Company’s operations that are included in
Corporate and All Other generated combined earnings of $1.1 million
in the current year first quarter, which was $0.6 million higher
than the combined earnings of $0.5 million in the prior-year first
quarter. The increase in earnings was primarily driven by a higher
amount of unrealized gains on investment securities recognized in
the current quarter as compared to the prior-year first
quarter.
EARNINGS TELECONFERENCE
The Company will host a conference call on
Thursday, February 8, 2024, 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=4b2c797c&confId=59975.
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 059311. 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, February 15, 2024. To access the replay, dial U.S. toll
free 1-866-813-9403 and provide Replay Access Code 385109.
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; impairments under the SEC’s
full cost ceiling test for natural gas reserves; 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;
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; 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, water availability and disposal or
recycling opportunities of used water, 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; the
Company’s ability to complete strategic transactions; 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
COMPANYAND 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 nine months
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 |
$5.40 to $5.90 |
|
$4.90 to $5.20 |
Consolidated Effective
Tax Rate |
~ 25 - 25.5% |
|
~ 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 |
|
$150 - $175 |
Consolidated Capital
Expenditures |
$865 - $975 |
|
$885 - $1,000 |
|
|
|
|
Exploration &
Production Segment Guidance* |
|
|
|
|
|
|
|
Commodity Price Assumptions |
|
|
|
NYMEX natural gas price |
$3.25 /MMBtu |
|
$2.40 /MMBtu |
Appalachian basin spot price |
$2.40 - $2.45 /MMBtu |
|
$1.70 /MMBtu |
|
|
|
|
Production (Bcf) |
390 to 410 |
|
395 to 410 |
|
|
|
|
E&P Operating Costs ($/Mcf) |
|
|
|
LOE |
$0.69 - $0.71 |
|
$0.69 - $0.70 |
G&A |
$0.17 - $0.19 |
|
$0.17 - $0.19 |
DD&A |
$0.69 - $0.74 |
|
$0.69 - $0.74 |
|
|
|
|
Other Business Segment
Guidance (Millions) |
|
|
|
Gathering Segment Revenues |
$240 - $260 |
|
$245 - $260 |
Pipeline and Storage Segment Revenues |
$380 - $420 |
|
$380 - $420 |
* Commodity price assumptions are for the
remaining 9 months of the fiscal year.
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
QUARTER ENDED DECEMBER 31, 2023 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
First quarter 2023 GAAP earnings |
$ |
91,192 |
|
|
$ |
29,476 |
|
|
$ |
24,738 |
|
|
$ |
23,817 |
|
|
$ |
466 |
|
|
$ |
169,689 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
|
(209 |
) |
|
|
(209 |
) |
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
|
44 |
|
|
|
44 |
|
First quarter 2023
adjusted operating results |
|
91,192 |
|
|
|
29,476 |
|
|
|
24,738 |
|
|
|
23,817 |
|
|
|
301 |
|
|
|
169,524 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
24,265 |
|
|
|
|
|
|
|
|
|
|
|
24,265 |
|
Higher (lower) realized
natural gas prices, after hedging |
|
(40,682 |
) |
|
|
|
|
|
|
|
|
|
|
(40,682 |
) |
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
(2,561 |
) |
|
|
4,878 |
|
|
|
|
|
|
|
2,317 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
(2,759 |
) |
|
|
|
|
(2,759 |
) |
Impact of new rates in
Pennsylvania |
|
|
|
|
|
|
|
6,849 |
|
|
|
|
|
6,849 |
|
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
918 |
|
|
|
|
|
918 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(4,367 |
) |
|
|
|
|
|
|
|
|
|
|
(4,367 |
) |
Lower (higher) operating
expenses |
|
(4,121 |
) |
|
|
(1,526 |
) |
|
|
|
|
(3,787 |
) |
|
|
(465 |
) |
|
|
(9,899 |
) |
Lower (higher) property,
franchise and other taxes |
|
2,637 |
|
|
|
|
|
|
|
|
|
|
|
2,637 |
|
Lower (higher) depreciation /
depletion |
|
(12,962 |
) |
|
|
(631 |
) |
|
|
(592 |
) |
|
|
(919 |
) |
|
|
|
|
(15,104 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) other
income |
|
|
|
|
|
|
|
748 |
|
|
|
(911 |
) |
|
|
(163 |
) |
(Higher) lower interest
expense |
|
(1,607 |
) |
|
|
(611 |
) |
|
|
|
|
|
|
1,280 |
|
|
|
(938 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
2,017 |
|
|
|
128 |
|
|
|
(483 |
) |
|
|
1,817 |
|
|
|
27 |
|
|
|
3,506 |
|
All other / rounding |
|
(842 |
) |
|
|
(220 |
) |
|
|
284 |
|
|
|
(133 |
) |
|
|
45 |
|
|
|
(866 |
) |
First quarter 2024
adjusted operating results |
|
55,530 |
|
|
|
24,055 |
|
|
|
28,825 |
|
|
|
26,551 |
|
|
|
277 |
|
|
|
135,238 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset |
|
(4,198 |
) |
|
|
|
|
|
|
|
|
|
|
(4,198 |
) |
Tax impact of unrealized gain
(loss) on derivative asset |
|
1,151 |
|
|
|
|
|
|
|
|
|
|
|
1,151 |
|
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
1,049 |
|
|
|
1,049 |
|
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
(220 |
) |
|
|
(220 |
) |
First quarter 2024
GAAP earnings |
$ |
52,483 |
|
|
$ |
24,055 |
|
|
$ |
28,825 |
|
|
$ |
26,551 |
|
|
$ |
1,106 |
|
|
$ |
133,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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. |
|
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
QUARTER ENDED DECEMBER 31, 2023 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
First quarter 2023 GAAP earnings per share |
$ |
0.99 |
|
|
$ |
0.32 |
|
|
$ |
0.27 |
|
|
$ |
0.26 |
|
|
$ |
— |
|
|
$ |
1.84 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
First quarter 2023
adjusted operating results per share |
|
0.99 |
|
|
|
0.32 |
|
|
|
0.27 |
|
|
|
0.26 |
|
|
|
— |
|
|
|
1.84 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
0.26 |
|
|
|
|
|
|
|
|
|
|
|
0.26 |
|
Higher (lower) realized
natural gas prices, after hedging |
|
(0.44 |
) |
|
|
|
|
|
|
|
|
|
|
(0.44 |
) |
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
(0.03 |
) |
|
|
0.05 |
|
|
|
|
|
|
|
0.02 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
(0.03 |
) |
|
|
|
|
(0.03 |
) |
Impact of new rates in
Pennsylvania |
|
|
|
|
|
|
|
0.07 |
|
|
|
|
|
0.07 |
|
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
0.01 |
|
|
|
|
|
0.01 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
(0.05 |
) |
Lower (higher) operating
expenses |
|
(0.04 |
) |
|
|
(0.02 |
) |
|
|
|
|
(0.04 |
) |
|
|
(0.01 |
) |
|
|
(0.11 |
) |
Lower (higher) property,
franchise and other taxes |
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
0.03 |
|
Lower (higher) depreciation /
depletion |
|
(0.14 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
|
|
(0.17 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) other
income |
|
|
|
|
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
— |
|
(Higher) lower interest
expense |
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
0.01 |
|
|
|
(0.02 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
0.02 |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.02 |
|
|
|
— |
|
|
|
0.03 |
|
All other / rounding |
|
(0.01 |
) |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.02 |
|
First quarter 2024
adjusted operating results per share |
|
0.60 |
|
|
|
0.26 |
|
|
|
0.31 |
|
|
|
0.29 |
|
|
|
— |
|
|
|
1.46 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset, net of tax |
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
(0.03 |
) |
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.01 |
|
First quarter 2024
GAAP earnings per share |
$ |
0.57 |
|
|
$ |
0.26 |
|
|
$ |
0.31 |
|
|
$ |
0.29 |
|
|
$ |
0.01 |
|
|
$ |
1.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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. |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
(Thousands of Dollars, except
per share amounts) |
|
|
|
|
Three Months Ended |
|
December 31, |
|
(Unaudited) |
SUMMARY OF OPERATIONS |
|
2023 |
|
|
|
2022 |
|
Operating Revenues: |
|
|
|
Utility Revenues |
$ |
201,920 |
|
|
$ |
311,619 |
|
Exploration and Production and Other Revenues |
|
254,019 |
|
|
|
276,973 |
|
Pipeline and Storage and Gathering Revenues |
|
69,422 |
|
|
|
70,267 |
|
|
|
525,361 |
|
|
|
658,859 |
|
Operating Expenses: |
|
|
|
Purchased Gas |
|
56,552 |
|
|
|
171,197 |
|
Operation and Maintenance: |
|
|
|
Utility |
|
53,705 |
|
|
|
50,352 |
|
Exploration and Production and Other |
|
34,826 |
|
|
|
26,874 |
|
Pipeline and Storage and Gathering |
|
34,962 |
|
|
|
33,261 |
|
Property, Franchise and Other Taxes |
|
22,416 |
|
|
|
26,205 |
|
Depreciation, Depletion and Amortization |
|
115,790 |
|
|
|
96,600 |
|
|
|
318,251 |
|
|
|
404,489 |
|
|
|
|
|
Operating Income |
|
207,110 |
|
|
|
254,370 |
|
|
|
|
|
Other Income (Expense): |
|
|
|
Other Income (Deductions) |
|
3,732 |
|
|
|
6,318 |
|
Interest Expense on Long-Term Debt |
|
(28,462 |
) |
|
|
(29,604 |
) |
Other Interest Expense |
|
(6,273 |
) |
|
|
(3,843 |
) |
|
|
|
|
Income Before Income
Taxes |
|
176,107 |
|
|
|
227,241 |
|
|
|
|
|
Income Tax Expense |
|
43,087 |
|
|
|
57,552 |
|
|
|
|
|
Net Income Available for
Common Stock |
$ |
133,020 |
|
|
$ |
169,689 |
|
|
|
|
|
Earnings Per Common Share |
|
|
|
Basic |
$ |
1.45 |
|
|
$ |
1.85 |
|
Diluted |
$ |
1.44 |
|
|
$ |
1.84 |
|
|
|
|
|
Weighted Average
Common Shares: |
|
|
|
Used in Basic Calculation |
|
91,910,244 |
|
|
|
91,579,814 |
|
Used in Diluted
Calculation |
|
92,442,145 |
|
|
|
92,268,210 |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
|
|
|
December 31, |
|
September 30, |
(Thousands of Dollars) |
|
2023 |
|
|
|
2023 |
|
ASSETS |
|
|
|
Property, Plant and
Equipment |
$ |
13,857,060 |
|
|
$ |
13,635,303 |
|
Less -
Accumulated Depreciation, Depletion and Amortization |
|
6,435,129 |
|
|
|
6,335,441 |
|
Net Property, Plant and Equipment |
|
7,421,931 |
|
|
|
7,299,862 |
|
Current Assets: |
|
|
|
Cash and Temporary Cash
Investments |
|
41,685 |
|
|
|
55,447 |
|
Receivables - Net |
|
189,669 |
|
|
|
160,601 |
|
Unbilled Revenue |
|
48,265 |
|
|
|
16,622 |
|
Gas Stored Underground |
|
26,891 |
|
|
|
32,509 |
|
Materials and Supplies - at
average cost |
|
47,692 |
|
|
|
48,989 |
|
Other Current Assets |
|
99,400 |
|
|
|
100,260 |
|
Total Current Assets |
|
453,602 |
|
|
|
414,428 |
|
Other Assets: |
|
|
|
Recoverable Future Taxes |
|
73,283 |
|
|
|
69,045 |
|
Unamortized Debt Expense |
|
6,829 |
|
|
|
7,240 |
|
Other Regulatory Assets |
|
72,088 |
|
|
|
72,138 |
|
Deferred Charges |
|
80,347 |
|
|
|
82,416 |
|
Other Investments |
|
76,633 |
|
|
|
73,976 |
|
Goodwill |
|
5,476 |
|
|
|
5,476 |
|
Prepaid Pension and
Post-Retirement Benefit Costs |
|
208,015 |
|
|
|
200,301 |
|
Fair Value of Derivative
Financial Instruments |
|
184,739 |
|
|
|
50,487 |
|
Other |
|
4,549 |
|
|
|
4,891 |
|
Total Other Assets |
|
711,959 |
|
|
|
565,970 |
|
Total Assets |
$ |
8,587,492 |
|
|
$ |
8,280,260 |
|
CAPITALIZATION AND LIABILITIES |
|
|
|
Capitalization: |
|
|
|
Comprehensive Shareholders'
Equity |
|
|
|
Common Stock, $1 Par Value
Authorized - 200,000,000 Shares; Issued and |
|
|
|
Outstanding - 92,115,581
Shares and 91,819,405 Shares, Respectively |
$ |
92,116 |
|
|
$ |
91,819 |
|
Paid in Capital |
|
1,041,226 |
|
|
|
1,040,761 |
|
Earnings Reinvested in the
Business |
|
1,973,279 |
|
|
|
1,885,856 |
|
Accumulated Other Comprehensive Income (Loss) |
|
67,381 |
|
|
|
(55,060 |
) |
Total Comprehensive Shareholders' Equity |
|
3,174,002 |
|
|
|
2,963,376 |
|
Long-Term Debt, Net of Current Portion and Unamortized Discount and
Debt Issuance Costs |
|
2,385,523 |
|
|
|
2,384,485 |
|
Total Capitalization |
|
5,559,525 |
|
|
|
5,347,861 |
|
Current and Accrued Liabilities: |
|
|
|
Notes Payable to Banks and
Commercial Paper |
|
300,000 |
|
|
|
287,500 |
|
Accounts Payable |
|
105,390 |
|
|
|
152,193 |
|
Amounts Payable to
Customers |
|
60,032 |
|
|
|
59,019 |
|
Dividends Payable |
|
45,597 |
|
|
|
45,451 |
|
Interest Payable on Long-Term
Debt |
|
42,288 |
|
|
|
20,399 |
|
Customer Advances |
|
23,086 |
|
|
|
21,003 |
|
Customer Security
Deposits |
|
30,843 |
|
|
|
28,764 |
|
Other Accruals and Current
Liabilities |
|
200,009 |
|
|
|
160,974 |
|
Fair
Value of Derivative Financial Instruments |
|
— |
|
|
|
31,009 |
|
Total Current and Accrued Liabilities |
|
807,245 |
|
|
|
806,312 |
|
Other Liabilities: |
|
|
|
Deferred Income Taxes |
|
1,164,512 |
|
|
|
1,124,170 |
|
Taxes Refundable to
Customers |
|
317,838 |
|
|
|
268,562 |
|
Cost of Removal Regulatory
Liability |
|
284,687 |
|
|
|
277,694 |
|
Other Regulatory
Liabilities |
|
165,988 |
|
|
|
165,441 |
|
Other Post-Retirement
Liabilities |
|
2,859 |
|
|
|
2,915 |
|
Asset Retirement
Obligations |
|
164,777 |
|
|
|
165,492 |
|
Other
Liabilities |
|
120,061 |
|
|
|
121,813 |
|
Total Other Liabilities |
|
2,220,722 |
|
|
|
2,126,087 |
|
Commitments and Contingencies |
|
— |
|
|
|
— |
|
Total Capitalization and Liabilities |
$ |
8,587,492 |
|
|
$ |
8,280,260 |
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
|
Three Months Ended |
|
|
December 31, |
(Thousands of Dollars) |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
Operating Activities: |
|
|
|
|
Net Income Available for
Common Stock |
|
$ |
133,020 |
|
|
$ |
169,689 |
|
Adjustments to Reconcile Net Income to Net Cash |
|
|
|
|
Provided by Operating Activities: |
|
|
|
|
Depreciation, Depletion and Amortization |
|
|
115,790 |
|
|
|
96,600 |
|
Deferred Income Taxes |
|
|
38,362 |
|
|
|
53,457 |
|
Stock-Based Compensation |
|
|
4,660 |
|
|
|
5,575 |
|
Other |
|
|
8,041 |
|
|
|
4,078 |
|
Change in: |
|
|
|
|
Receivables and Unbilled Revenue |
|
|
(58,459 |
) |
|
|
(29,522 |
) |
Gas Stored Underground and Materials and Supplies |
|
|
6,915 |
|
|
|
5,622 |
|
Unrecovered Purchased Gas Costs |
|
|
— |
|
|
|
20,603 |
|
Other Current Assets |
|
|
892 |
|
|
|
(1,748 |
) |
Accounts Payable |
|
|
(3,355 |
) |
|
|
6,091 |
|
Amounts Payable to Customers |
|
|
1,013 |
|
|
|
(265 |
) |
Customer Advances |
|
|
2,083 |
|
|
|
5,206 |
|
Customer Security Deposits |
|
|
2,079 |
|
|
|
4,546 |
|
Other Accruals and Current Liabilities |
|
|
28,612 |
|
|
|
4,523 |
|
Other Assets |
|
|
(6,306 |
) |
|
|
(20,238 |
) |
Other Liabilities |
|
|
(2,403 |
) |
|
|
3,122 |
|
Net Cash Provided by Operating Activities |
|
$ |
270,944 |
|
|
$ |
327,339 |
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
Capital Expenditures |
|
$ |
(246,938 |
) |
|
$ |
(233,473 |
) |
Sale of Fixed Income Mutual
Fund Shares in Grantor Trust |
|
|
— |
|
|
|
10,000 |
|
Other |
|
|
(920 |
) |
|
|
14,637 |
|
Net Cash Used in Investing Activities |
|
$ |
(247,858 |
) |
|
$ |
(208,836 |
) |
|
|
|
|
|
Financing Activities: |
|
|
|
|
Proceeds from Issuance of
Short-Term Note Payable to Bank |
|
$ |
— |
|
|
$ |
250,000 |
|
Net Change in Other Short-Term
Notes Payable to Banks and Commercial Paper |
|
|
12,500 |
|
|
|
(60,000 |
) |
Reduction of Long-Term
Debt |
|
|
— |
|
|
|
(150,000 |
) |
Dividends Paid on Common
Stock |
|
|
(45,451 |
) |
|
|
(43,452 |
) |
Net
Repurchases of Common Stock |
|
|
(3,897 |
) |
|
|
(6,694 |
) |
Net Cash Used in Financing Activities |
|
$ |
(36,848 |
) |
|
$ |
(10,146 |
) |
|
|
|
|
|
Net Increase (Decrease) in
Cash, Cash Equivalents, and Restricted Cash |
|
|
(13,762 |
) |
|
|
108,357 |
|
Cash,
Cash Equivalents, and Restricted Cash at Beginning of Period |
|
|
55,447 |
|
|
|
137,718 |
|
Cash, Cash Equivalents, and Restricted Cash at December 31 |
|
$ |
41,685 |
|
|
$ |
246,075 |
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
UPSTREAM BUSINESS |
|
|
|
|
|
|
|
Three Months Ended |
(Thousands of Dollars, except
per share amounts) |
December 31, |
EXPLORATION AND
PRODUCTION SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
Total Operating Revenues |
$ |
254,019 |
|
|
$ |
276,973 |
|
|
$ |
(22,954 |
) |
Operating Expenses: |
|
|
|
|
|
Operation and Maintenance: |
|
|
|
|
|
General and Administrative Expense |
|
17,793 |
|
|
|
15,598 |
|
|
|
2,195 |
|
Lease Operating and Transportation Expense |
|
67,074 |
|
|
|
61,546 |
|
|
|
5,528 |
|
All Other Operation and Maintenance Expense |
|
5,544 |
|
|
|
2,523 |
|
|
|
3,021 |
|
Property, Franchise and Other Taxes |
|
3,638 |
|
|
|
6,976 |
|
|
|
(3,338 |
) |
Depreciation, Depletion and Amortization |
|
71,965 |
|
|
|
55,558 |
|
|
|
16,407 |
|
|
|
166,014 |
|
|
|
142,201 |
|
|
|
23,813 |
|
|
|
|
|
|
|
Operating Income |
|
88,005 |
|
|
|
134,772 |
|
|
|
(46,767 |
) |
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit |
|
100 |
|
|
|
347 |
|
|
|
(247 |
) |
Interest and Other Income (Deductions) |
|
(1,513 |
) |
|
|
1,331 |
|
|
|
(2,844 |
) |
Interest Expense |
|
(15,268 |
) |
|
|
(13,234 |
) |
|
|
(2,034 |
) |
Income Before Income
Taxes |
|
71,324 |
|
|
|
123,216 |
|
|
|
(51,892 |
) |
Income Tax Expense |
|
18,841 |
|
|
|
32,024 |
|
|
|
(13,183 |
) |
Net Income |
$ |
52,483 |
|
|
$ |
91,192 |
|
|
$ |
(38,709 |
) |
Net Income Per Share
(Diluted) |
$ |
0.57 |
|
|
$ |
0.99 |
|
|
$ |
(0.42 |
) |
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
MIDSTREAM BUSINESSES |
|
|
|
|
|
|
|
Three Months Ended |
(Thousands of Dollars, except
per share amounts) |
December 31, |
PIPELINE AND STORAGE
SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
Revenues from External Customers |
$ |
64,826 |
|
|
$ |
67,621 |
|
|
$ |
(2,795 |
) |
Intersegment Revenues |
|
29,587 |
|
|
|
30,034 |
|
|
|
(447 |
) |
Total Operating Revenues |
|
94,413 |
|
|
|
97,655 |
|
|
|
(3,242 |
) |
Operating Expenses: |
|
|
|
|
|
Purchased Gas |
|
601 |
|
|
|
425 |
|
|
|
176 |
|
Operation and Maintenance |
|
25,950 |
|
|
|
24,018 |
|
|
|
1,932 |
|
Property, Franchise and Other Taxes |
|
8,720 |
|
|
|
8,684 |
|
|
|
36 |
|
Depreciation, Depletion and Amortization |
|
18,213 |
|
|
|
17,414 |
|
|
|
799 |
|
|
|
53,484 |
|
|
|
50,541 |
|
|
|
2,943 |
|
|
|
|
|
|
|
Operating Income |
|
40,929 |
|
|
|
47,114 |
|
|
|
(6,185 |
) |
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit |
|
1,257 |
|
|
|
1,330 |
|
|
|
(73 |
) |
Interest and Other Income |
|
1,931 |
|
|
|
1,864 |
|
|
|
67 |
|
Interest Expense |
|
(11,725 |
) |
|
|
(10,952 |
) |
|
|
(773 |
) |
Income Before Income
Taxes |
|
32,392 |
|
|
|
39,356 |
|
|
|
(6,964 |
) |
Income Tax Expense |
|
8,337 |
|
|
|
9,880 |
|
|
|
(1,543 |
) |
Net Income |
$ |
24,055 |
|
|
$ |
29,476 |
|
|
$ |
(5,421 |
) |
Net Income Per Share
(Diluted) |
$ |
0.26 |
|
|
$ |
0.32 |
|
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
December 31, |
GATHERING
SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
Revenues from External
Customers |
$ |
4,596 |
|
|
$ |
2,646 |
|
|
$ |
1,950 |
|
Intersegment Revenues |
|
57,992 |
|
|
|
53,767 |
|
|
|
4,225 |
|
Total Operating Revenues |
|
62,588 |
|
|
|
56,413 |
|
|
|
6,175 |
|
Operating Expenses: |
|
|
|
|
|
Operation and Maintenance |
|
9,504 |
|
|
|
9,687 |
|
|
|
(183 |
) |
Property, Franchise and Other Taxes |
|
23 |
|
|
|
11 |
|
|
|
12 |
|
Depreciation, Depletion and Amortization |
|
9,458 |
|
|
|
8,709 |
|
|
|
749 |
|
|
|
18,985 |
|
|
|
18,407 |
|
|
|
578 |
|
|
|
|
|
|
|
Operating Income |
|
43,603 |
|
|
|
38,006 |
|
|
|
5,597 |
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit |
|
9 |
|
|
|
37 |
|
|
|
(28 |
) |
Interest and Other Income |
|
73 |
|
|
|
170 |
|
|
|
(97 |
) |
Interest Expense |
|
(3,729 |
) |
|
|
(4,042 |
) |
|
|
313 |
|
Income Before Income
Taxes |
|
39,956 |
|
|
|
34,171 |
|
|
|
5,785 |
|
Income Tax Expense |
|
11,131 |
|
|
|
9,433 |
|
|
|
1,698 |
|
Net Income |
$ |
28,825 |
|
|
$ |
24,738 |
|
|
$ |
4,087 |
|
Net Income Per Share
(Diluted) |
$ |
0.31 |
|
|
$ |
0.27 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
DOWNSTREAM BUSINESS |
|
|
|
|
|
|
|
Three Months Ended |
(Thousands of Dollars, except
per share amounts) |
December 31, |
UTILITY
SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
Revenues from External Customers |
$ |
201,920 |
|
|
$ |
311,619 |
|
|
$ |
(109,699 |
) |
Intersegment Revenues |
|
87 |
|
|
|
62 |
|
|
|
25 |
|
Total Operating Revenues |
|
202,007 |
|
|
|
311,681 |
|
|
|
(109,674 |
) |
Operating Expenses: |
|
|
|
|
|
Purchased Gas |
|
84,051 |
|
|
|
198,420 |
|
|
|
(114,369 |
) |
Operation and Maintenance |
|
54,684 |
|
|
|
51,276 |
|
|
|
3,408 |
|
Property, Franchise and Other Taxes |
|
9,906 |
|
|
|
10,408 |
|
|
|
(502 |
) |
Depreciation, Depletion and Amortization |
|
16,037 |
|
|
|
14,874 |
|
|
|
1,163 |
|
|
|
164,678 |
|
|
|
274,978 |
|
|
|
(110,300 |
) |
|
|
|
|
|
|
Operating Income |
|
37,329 |
|
|
|
36,703 |
|
|
|
626 |
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit (Costs) Credit |
|
470 |
|
|
|
(8 |
) |
|
|
478 |
|
Interest and Other Income |
|
1,911 |
|
|
|
1,440 |
|
|
|
471 |
|
Interest Expense |
|
(8,457 |
) |
|
|
(8,043 |
) |
|
|
(414 |
) |
Income Before Income
Taxes |
|
31,253 |
|
|
|
30,092 |
|
|
|
1,161 |
|
Income Tax Expense |
|
4,702 |
|
|
|
6,275 |
|
|
|
(1,573 |
) |
Net Income |
$ |
26,551 |
|
|
$ |
23,817 |
|
|
$ |
2,734 |
|
Net Income Per Share
(Diluted) |
$ |
0.29 |
|
|
$ |
0.26 |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
Three Months Ended |
(Thousands of Dollars, except
per share amounts) |
December 31, |
ALL
OTHER |
|
2023 |
|
|
|
2022 |
|
|
Variance |
Revenues from External Customers |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Intersegment Revenues |
|
— |
|
|
|
— |
|
|
|
— |
|
Total Operating Revenues |
|
— |
|
|
|
— |
|
|
|
— |
|
Operating Expenses: |
|
|
|
|
|
Operation and Maintenance |
|
— |
|
|
|
21 |
|
|
|
(21 |
) |
|
|
— |
|
|
|
21 |
|
|
|
(21 |
) |
|
|
|
|
|
|
Operating Loss |
|
— |
|
|
|
(21 |
) |
|
|
21 |
|
Other Income (Expense): |
|
|
|
|
|
Interest and Other Income (Deductions) |
|
(77 |
) |
|
|
(324 |
) |
|
|
247 |
|
Interest Expense |
|
(81 |
) |
|
|
(21 |
) |
|
|
(60 |
) |
Loss before Income Taxes |
|
(158 |
) |
|
|
(366 |
) |
|
|
208 |
|
Income Tax Benefit |
|
(37 |
) |
|
|
(86 |
) |
|
|
49 |
|
Net Loss |
$ |
(121 |
) |
|
$ |
(280 |
) |
|
$ |
159 |
|
Net Loss Per Share
(Diluted) |
$ |
— |
|
|
$ |
(0.01 |
) |
|
$ |
0.01 |
|
|
|
|
Three Months Ended |
|
December 31, |
CORPORATE |
|
2023 |
|
|
|
2022 |
|
|
Variance |
Revenues from External
Customers |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Intersegment Revenues |
|
1,285 |
|
|
|
1,152 |
|
|
|
133 |
|
Total Operating Revenues |
|
1,285 |
|
|
|
1,152 |
|
|
|
133 |
|
Operating Expenses: |
|
|
|
|
|
Operation and Maintenance |
|
3,795 |
|
|
|
3,185 |
|
|
|
610 |
|
Property, Franchise and Other Taxes |
|
129 |
|
|
|
126 |
|
|
|
3 |
|
Depreciation, Depletion and Amortization |
|
117 |
|
|
|
45 |
|
|
|
72 |
|
|
|
4,041 |
|
|
|
3,356 |
|
|
|
685 |
|
|
|
|
|
|
|
Operating Loss |
|
(2,756 |
) |
|
|
(2,204 |
) |
|
|
(552 |
) |
Other Income (Expense): |
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(387 |
) |
|
|
(354 |
) |
|
|
(33 |
) |
Interest and Other Income |
|
41,030 |
|
|
|
37,877 |
|
|
|
3,153 |
|
Interest Expense on Long-Term Debt |
|
(28,462 |
) |
|
|
(29,604 |
) |
|
|
1,142 |
|
Other Interest Expense |
|
(8,085 |
) |
|
|
(4,943 |
) |
|
|
(3,142 |
) |
Income before Income
Taxes |
|
1,340 |
|
|
|
772 |
|
|
|
568 |
|
Income Tax Expense |
|
113 |
|
|
|
26 |
|
|
|
87 |
|
Net Income |
$ |
1,227 |
|
|
$ |
746 |
|
|
$ |
481 |
|
Net Income Per Share
(Diluted) |
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
December 31, |
INTERSEGMENT
ELIMINATIONS |
|
2023 |
|
|
|
2022 |
|
|
Variance |
Intersegment Revenues |
$ |
(88,951 |
) |
|
$ |
(85,015 |
) |
|
$ |
(3,936 |
) |
Operating Expenses: |
|
|
|
|
|
Purchased Gas |
|
(28,100 |
) |
|
|
(27,648 |
) |
|
|
(452 |
) |
Operation and Maintenance |
|
(60,851 |
) |
|
|
(57,367 |
) |
|
|
(3,484 |
) |
|
|
(88,951 |
) |
|
|
(85,015 |
) |
|
|
(3,936 |
) |
Operating Income |
|
— |
|
|
|
— |
|
|
|
— |
|
Other Income (Expense): |
|
|
|
|
|
Interest and Other Deductions |
|
(41,072 |
) |
|
|
(37,392 |
) |
|
|
(3,680 |
) |
Interest Expense |
|
41,072 |
|
|
|
37,392 |
|
|
|
3,680 |
|
Net Income |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Net Income Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
SEGMENT INFORMATION (Continued) |
(Thousands of Dollars) |
|
|
|
|
|
|
|
Three Months Ended |
|
December 31, |
|
(Unaudited) |
|
|
|
|
|
Increase |
|
|
2023 |
|
|
2022 |
|
(Decrease) |
Capital
Expenditures: |
|
|
|
|
|
Exploration and Production |
$ |
160,957 |
(1)(2) |
$ |
168,505 |
(3)(4) |
$ |
(7,548 |
) |
Pipeline and Storage |
|
24,554 |
(1)(2) |
|
16,427 |
(3)(4) |
|
8,127 |
|
Gathering |
|
19,569 |
(1)(2) |
|
13,293 |
(3)(4) |
|
6,276 |
|
Utility |
|
30,510 |
(1)(2) |
|
25,288 |
(3)(4) |
|
5,222 |
|
Total Reportable Segments |
|
235,590 |
|
|
223,513 |
|
|
12,077 |
|
All Other |
|
— |
|
|
— |
|
|
— |
|
Corporate |
|
61 |
|
|
12 |
|
|
49 |
|
Total Capital Expenditures |
$ |
235,651 |
|
$ |
223,525 |
|
$ |
12,126 |
|
(1) |
Capital expenditures for the quarter ended December 31, 2023,
include accounts payable and accrued liabilities related to capital
expenditures of $74.9 million, $5.5 million, $11.1 million, and
$6.4 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 December 31, 2023, since
they represent non-cash investing activities at that date. |
(2) |
Capital expenditures for the quarter ended December 31, 2023,
exclude 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 were in accounts
payable and accrued liabilities at September 30, 2023 and paid
during the quarter ended December 31, 2023. These amounts were
excluded from the Consolidated Statement of Cash Flows at September
30, 2023, since they represented non-cash investing activities at
that date. These amounts have been included in the Consolidated
Statement of Cash Flows at December 31, 2023. |
(3) |
Capital expenditures for the quarter ended December 31, 2022,
include accounts payable and accrued liabilities related to capital
expenditures of $102.9 million, $2.1 million, $1.1 million, and
$4.2 million in the Exploration and Production segment, Pipeline
and Storage segment, Gathering segment and Utility segment,
respectively. These amounts were excluded from the Consolidated
Statement of Cash Flows at December 31, 2022, since they
represented non-cash investing activities at that date. |
(4) |
Capital expenditures for the year ended December 31, 2022, 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
quarter ended December 31, 2022. 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 December 31, 2022. |
|
|
|
|
|
|
|
|
|
|
DEGREE
DAYS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Colder |
|
|
|
|
|
|
|
(Warmer) Than: |
Three Months Ended December
31, |
Normal |
|
2023 |
|
2022 |
|
Normal (1) |
|
Last Year (1) |
Buffalo, NY |
2,253 |
|
1,858 |
|
2,048 |
|
(17.5 |
) |
|
(9.3 |
) |
Erie, PA(2) |
1,894 |
|
1,664 |
|
1,987 |
|
(12.1 |
) |
|
(16.3 |
) |
(1) |
Percents compare actual 2023 degree days to normal degree days and
actual 2023 degree days to actual 2022 degree days. |
(2) |
Normal degree days changed from NOAA 30-year degree days to NOAA
15-year degree days with the implementation of new base rates in
Pennsylvania in August 2023. |
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
|
|
|
|
|
|
Increase |
|
|
|
2023 |
|
|
2022 |
|
(Decrease) |
Gas
Production/Prices: |
|
|
|
|
|
|
Production (MMcf) |
|
|
|
|
|
|
Appalachia |
|
|
100,757 |
|
|
90,574 |
|
|
10,183 |
|
|
|
|
|
|
|
|
Average Prices (Per Mcf) |
|
|
|
|
|
|
Weighted Average |
|
$ |
2.31 |
|
$ |
4.77 |
|
$ |
(2.46 |
) |
Weighted Average after Hedging |
|
|
2.51 |
|
|
3.02 |
|
|
(0.51 |
) |
|
|
|
|
|
|
|
Selected Operating
Performance Statistics: |
|
|
|
|
|
|
General & Administrative
Expense per Mcf (1) |
|
$ |
0.18 |
|
$ |
0.17 |
|
$ |
0.01 |
|
Lease Operating and
Transportation Expense per Mcf (1)(2) |
|
$ |
0.67 |
|
$ |
0.68 |
|
$ |
(0.01 |
) |
Depreciation, Depletion &
Amortization per Mcf (1) |
|
$ |
0.71 |
|
$ |
0.61 |
|
$ |
0.10 |
|
|
|
|
|
|
|
|
(1) |
Refer to page 13 for the General and Administrative Expense, Lease
Operating and Transportation Expense and Depreciation, Depletion,
and Amortization Expense for the Exploration and Production
segment. |
(2) |
Amounts include transportation expense of $0.56 and $0.59 per Mcf
for the three months ended December 31, 2023 and December 31, 2022,
respectively. |
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
Hedging Summary for
Remaining Nine Months of Fiscal 2024 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
|
NYMEX |
|
112,110,000 |
|
MMBTU |
|
$ |
3.37 / MMBTU |
No Cost Collars |
|
45,900,000 |
|
MMBTU |
|
$ |
3.29 / MMBTU (Floor) / $4.08 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
65,537,550 |
|
MMBTU |
|
$ |
2.44 / MMBTU |
Total |
|
223,547,550 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2025 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
|
NYMEX |
|
94,960,000 |
|
MMBTU |
|
$ |
3.50 / MMBTU |
No Cost Collars |
|
43,960,000 |
|
MMBTU |
|
$ |
3.49 / MMBTU (Floor) / $4.65 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
76,425,978 |
|
MMBTU |
|
$ |
2.47 / MMBTU |
Total |
|
215,345,978 |
|
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 |
|
69,397,972 |
|
MMBTU |
|
$ |
2.41 / MMBTU |
Total |
|
150,137,972 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2027 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
|
NYMEX |
|
21,750,000 |
|
MMBTU |
|
$ |
4.16 / MMBTU |
No Cost Collars |
|
3,560,000 |
|
MMBTU |
|
$ |
3.53 / MMBTU (Floor) / $4.76 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
49,183,383 |
|
MMBTU |
|
$ |
2.42 / MMBTU |
Total |
|
74,493,383 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2028 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
|
NYMEX |
|
1,750,000 |
|
MMBTU |
|
$ |
4.16 / MMBTU |
Fixed Price Physical
Sales |
|
12,469,845 |
|
MMBTU |
|
$ |
2.49 / MMBTU |
Total |
|
14,219,845 |
|
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 |
|
|
|
|
|
|
|
Pipeline
& Storage Throughput - (millions of cubic feet -
MMcf) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
|
|
|
|
|
|
Increase |
|
|
2023 |
|
2022 |
|
(Decrease) |
Firm Transportation - Affiliated |
|
31,495 |
|
38,469 |
|
(6,974 |
) |
Firm Transportation -
Non-Affiliated |
|
168,606 |
|
186,154 |
|
(17,548 |
) |
Interruptible
Transportation |
|
118 |
|
1,308 |
|
(1,190 |
) |
|
|
200,219 |
|
225,931 |
|
(25,712 |
) |
|
|
|
|
|
|
|
Gathering Volume -
(MMcf) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
|
|
|
|
|
|
Increase |
|
|
2023 |
|
2022 |
|
(Decrease) |
Gathered Volume |
|
124,261 |
|
108,027 |
|
16,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Throughput -
(MMcf) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
|
|
|
|
|
|
Increase |
|
|
2023 |
|
2022 |
|
(Decrease) |
Retail Sales: |
|
|
|
|
|
|
Residential Sales |
|
17,982 |
|
20,153 |
|
(2,171 |
) |
Commercial Sales |
|
2,800 |
|
2,994 |
|
(194 |
) |
Industrial Sales |
|
138 |
|
151 |
|
(13 |
) |
|
|
20,920 |
|
23,298 |
|
(2,378 |
) |
Transportation |
|
17,528 |
|
18,310 |
|
(782 |
) |
|
|
38,448 |
|
41,608 |
|
(3,160 |
) |
|
|
|
|
|
|
|
NATIONAL FUEL GAS
COMPANYAND 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 months ended December
31, 2023 and 2022:
|
|
Three Months Ended |
|
|
December 31, |
(in thousands except per share amounts) |
|
|
2023 |
|
|
|
2022 |
|
Reported GAAP
Earnings |
|
$ |
133,020 |
|
|
$ |
169,689 |
|
Items impacting comparability: |
|
|
|
|
Unrealized (gain) loss on derivative asset (E&P) |
|
|
4,198 |
|
|
|
— |
|
Tax impact of unrealized (gain) loss on derivative asset |
|
|
(1,151 |
) |
|
|
— |
|
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
|
(1,049 |
) |
|
|
(209 |
) |
Tax impact of unrealized (gain) loss on other investments |
|
|
220 |
|
|
|
44 |
|
Adjusted Operating
Results |
|
$ |
135,238 |
|
|
$ |
169,524 |
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
|
$ |
1.44 |
|
|
$ |
1.84 |
|
Items impacting comparability: |
|
|
|
|
Unrealized (gain) loss on derivative asset, net of tax
(E&P) |
|
|
0.03 |
|
|
|
— |
|
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
|
|
(0.01 |
) |
|
|
— |
|
Adjusted Operating
Results Per Share |
|
$ |
1.46 |
|
|
$ |
1.84 |
|
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 months ended December 31, 2023 and 2022:
|
|
Three Months Ended |
|
|
December 31, |
(in thousands) |
|
|
2023 |
|
|
|
2022 |
|
Reported GAAP
Earnings |
|
$ |
133,020 |
|
|
$ |
169,689 |
|
Depreciation, Depletion and Amortization |
|
|
115,790 |
|
|
|
96,600 |
|
Other (Income) Deductions |
|
|
(3,732 |
) |
|
|
(6,318 |
) |
Interest Expense |
|
|
34,735 |
|
|
|
33,447 |
|
Income Taxes |
|
|
43,087 |
|
|
|
57,552 |
|
Adjusted
EBITDA |
|
$ |
322,900 |
|
|
$ |
350,970 |
|
|
|
|
|
|
Adjusted EBITDA by
Segment |
|
|
|
|
Pipeline and Storage Adjusted
EBITDA |
|
$ |
59,142 |
|
|
$ |
64,528 |
|
Gathering Adjusted EBITDA |
|
|
53,061 |
|
|
|
46,715 |
|
Total Midstream Businesses
Adjusted EBITDA |
|
|
112,203 |
|
|
|
111,243 |
|
Exploration and Production
Adjusted EBITDA |
|
|
159,970 |
|
|
|
190,330 |
|
Utility Adjusted EBITDA |
|
|
53,366 |
|
|
|
51,577 |
|
Corporate and All Other
Adjusted EBITDA |
|
|
(2,639 |
) |
|
|
(2,180 |
) |
Total Adjusted
EBITDA |
|
$ |
322,900 |
|
|
$ |
350,970 |
|
|
NATIONAL FUEL GAS COMPANYAND
SUBSIDIARIESNON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA |
|
|
|
Three Months Ended |
|
|
December 31, |
(in thousands) |
|
|
2023 |
|
|
|
2022 |
|
Exploration and
Production Segment |
|
|
|
|
Reported GAAP Earnings |
|
$ |
52,483 |
|
|
$ |
91,192 |
|
Depreciation, Depletion and Amortization |
|
|
71,965 |
|
|
|
55,558 |
|
Other (Income) Deductions |
|
|
1,413 |
|
|
|
(1,678 |
) |
Interest Expense |
|
|
15,268 |
|
|
|
13,234 |
|
Income Taxes |
|
|
18,841 |
|
|
|
32,024 |
|
Adjusted EBITDA |
|
$ |
159,970 |
|
|
$ |
190,330 |
|
|
|
|
|
|
Pipeline and Storage
Segment |
|
|
|
|
Reported GAAP Earnings |
|
$ |
24,055 |
|
|
$ |
29,476 |
|
Depreciation, Depletion and Amortization |
|
|
18,213 |
|
|
|
17,414 |
|
Other (Income) Deductions |
|
|
(3,188 |
) |
|
|
(3,194 |
) |
Interest Expense |
|
|
11,725 |
|
|
|
10,952 |
|
Income Taxes |
|
|
8,337 |
|
|
|
9,880 |
|
Adjusted EBITDA |
|
$ |
59,142 |
|
|
$ |
64,528 |
|
|
|
|
|
|
Gathering
Segment |
|
|
|
|
Reported GAAP Earnings |
|
$ |
28,825 |
|
|
$ |
24,738 |
|
Depreciation, Depletion and Amortization |
|
|
9,458 |
|
|
|
8,709 |
|
Other (Income) Deductions |
|
|
(82 |
) |
|
|
(207 |
) |
Interest Expense |
|
|
3,729 |
|
|
|
4,042 |
|
Income Taxes |
|
|
11,131 |
|
|
|
9,433 |
|
Adjusted EBITDA |
|
$ |
53,061 |
|
|
$ |
46,715 |
|
|
|
|
|
|
Utility
Segment |
|
|
|
|
Reported GAAP Earnings |
|
$ |
26,551 |
|
|
$ |
23,817 |
|
Depreciation, Depletion and Amortization |
|
|
16,037 |
|
|
|
14,874 |
|
Other (Income) Deductions |
|
|
(2,381 |
) |
|
|
(1,432 |
) |
Interest Expense |
|
|
8,457 |
|
|
|
8,043 |
|
Income Taxes |
|
|
4,702 |
|
|
|
6,275 |
|
Adjusted EBITDA |
|
$ |
53,366 |
|
|
$ |
51,577 |
|
|
|
|
|
|
Corporate and All
Other |
|
|
|
|
Reported GAAP Earnings |
|
$ |
1,106 |
|
|
$ |
466 |
|
Depreciation, Depletion and Amortization |
|
|
117 |
|
|
|
45 |
|
Other (Income) Deductions |
|
|
506 |
|
|
|
193 |
|
Interest Expense |
|
|
(4,444 |
) |
|
|
(2,824 |
) |
Income Taxes |
|
|
76 |
|
|
|
(60 |
) |
Adjusted EBITDA |
|
$ |
(2,639 |
) |
|
$ |
(2,180 |
) |
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 Company
is unable to provide a reconciliation of projected free cash flow
as described in this release to its comparable financial measure
calculated in accordance with GAAP without unreasonable efforts.
This is due to our inability to reliably predict the comparable
GAAP projected metrics, including operating income and total
production costs, given the unknown effect, timing, and potential
significance of certain income statement items.
Brandon J. Haspett
Investor Relations
716-857-7697
Timothy J. Silverstein
Treasurer
716-857-6987
National Fuel Gas (NYSE:NFG)
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