WILLIAMSVILLE, N.Y., Nov. 06, 2024 (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, 2024.
FISCAL 2024 FOURTH QUARTER
SUMMARY
- GAAP net loss of
$167.6 million, or $1.84 per share, which includes $237.8 million
in non-cash impairment charges.
- Adjusted operating
results of $70.5 million, or $0.77 per share, compared to $72.2
million, or $0.78 per share, in the prior year (see non-GAAP
reconciliation on page 2).
- Supply Corporation
filed a certificate application with FERC for its Tioga Pathway
Project, a modernization and expansion project that is expected to
provide 190,000 dekatherms per day of firm transportation capacity
and $15 million in annual expansion revenues.
- In the Utility
segment, a Joint Proposal was filed with the New York State utility
commission for a three-year settlement of its rate proceeding,
which, subject to approval, incorporates an $86 million annual
revenue requirement increase over three years, with the first-year
impact of $57 million in fiscal 2025 and the remainder in fiscal
2026 and 2027.
- In the E&P
segment, hedging-related gains of $61 million drove a $0.07 per
Mcfe increase in natural gas price realizations, despite NYMEX
decreasing by $0.40 per MMBtu compared to the prior year.
FISCAL 2024 HIGHLIGHTS
- The Company
continued its long history of returning cash to shareholders by
announcing its 54th consecutive dividend increase, to an
annual rate of $2.06 per share, and through the fiscal year,
repurchased $65 million of common stock as part of its $200 million
share repurchase program that was authorized in March.
- E&P segment
capital efficiency continued to improve, with non-acquisition
capital expenditures decreasing by $58 million, or 10%, compared to
the prior year (see page 20), while production increased by
approximately 5% to 392.0 Bcf.
- Gathering segment
throughput and revenues increased 6% from the prior year, driven by
growth in affiliated and third-party throughput.
- Pipeline &
Storage segment revenues increased $33.2 million, or 9%, from the
prior year, primarily due to the settlement of the Supply
Corporation rate case, which led to increased rates effective
February 2024.
- Utility segment net
income increased $8.7 million, or 18%, compared to the prior year,
largely attributable to the continued impact of a rate settlement
in its Pennsylvania service territory, effective August 2023.
MANAGEMENT COMMENTS
David P. Bauer, President and CEO, stated:
“National Fuel had a good quarter driven largely by the
constructive outcomes in our recent ratemaking activity at our
Utility and Pipeline and Storage segments. Commodity prices were
challenging for our Upstream business, but the significant gains
from our hedge portfolio more than offset the impact of the
substantial decline in natural gas prices.
“During the quarter, we achieved key milestones
that position the Company to deliver long-term earnings and free
cash flow growth. At Distribution Corporation, we reached a
multi-year settlement of our New York rate case, which we expect
will be approved in the coming months. Further, Supply Corporation
filed a certificate application for our 190,000 Dth per day Tioga
Pathway Project, which we expect will be in-service in late 2026.
Lastly, our Seneca and NFG Midstream teams continue to see success
with our transition to the Eastern Development Area, with continued
operational enhancements and strong well performance driving
further improvements to our capital efficiency.
“Taken together, the progress made during the
quarter further improves the long-term outlook for National Fuel
and positions us well to create long-term value for 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) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reported GAAP
Earnings |
|
$ |
(167,621 |
) |
|
$ |
73,677 |
|
|
$ |
77,513 |
|
|
$ |
476,866 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Impairment of assets (E&P/ Pipeline & Storage) |
|
|
318,433 |
|
|
|
— |
|
|
|
519,129 |
|
|
|
— |
|
Tax impact of impairment of assets |
|
|
(80,585 |
) |
|
|
— |
|
|
|
(136,271 |
) |
|
|
— |
|
Unrealized (gain) loss on derivative asset (E&P) |
|
|
1,700 |
|
|
|
(2,803 |
) |
|
|
6,548 |
|
|
|
899 |
|
Tax impact of unrealized (gain) loss on derivative asset |
|
|
(461 |
) |
|
|
775 |
|
|
|
(1,791 |
) |
|
|
(240 |
) |
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
|
(1,232 |
) |
|
|
719 |
|
|
|
(3,034 |
) |
|
|
(913 |
) |
Tax impact of unrealized (gain) loss on other investments |
|
|
258 |
|
|
|
(151 |
) |
|
|
637 |
|
|
|
192 |
|
Adjusted Operating
Results |
|
$ |
70,492 |
|
|
$ |
72,217 |
|
|
$ |
462,731 |
|
|
$ |
476,804 |
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
|
$ |
(1.84 |
) |
|
$ |
0.80 |
|
|
$ |
0.84 |
|
|
$ |
5.17 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Impairment of assets, net of tax (E&P / Pipeline &
Storage) |
|
|
2.61 |
|
|
|
— |
|
|
|
4.15 |
|
|
|
— |
|
Unrealized (gain) loss on derivative asset, net of tax
(E&P) |
|
|
0.01 |
|
|
|
(0.02 |
) |
|
|
0.05 |
|
|
|
0.01 |
|
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.03 |
) |
|
|
(0.01 |
) |
Rounding |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
Adjusted Operating
Results Per Share |
|
$ |
0.77 |
|
|
$ |
0.78 |
|
|
$ |
5.01 |
|
|
$ |
5.17 |
|
FISCAL 2025 GUIDANCE UPDATE
National Fuel is updating its guidance for
fiscal 2025 adjusted operating results, which are now expected to
be within a range of $5.50 to $6.00 per share. This updated range
reflects the impact of anticipated lower natural gas prices,
partially offset by a projected decrease in Seneca’s per unit
operating expenses. Adjusted operating results exclude any future
potential items impacting comparability, including a non-cash
ceiling test impairment anticipated in the Exploration and
Production segment in the first quarter of fiscal 2025.
The Company is now assuming NYMEX natural gas
prices will average $2.80 per MMBtu for fiscal 2025, a decrease of
$0.45 from preliminary guidance that was initiated last quarter.
This updated natural gas price projection approximates the current
NYMEX forward curve at this time, however, given the recent
volatility in NYMEX natural gas prices, the Company is providing
the following sensitivities to its adjusted operating results
guidance range:
NYMEX
($/MMBtu) |
Sensitivities |
$2.50 |
$5.15 - $5.65 |
$3.00 |
$5.70 - $6.20 |
$3.25 |
$6.00 - $6.50 |
Seneca’s production guidance for fiscal 2025 remains unchanged,
with a range of 400 to 420 Bcfe, and does not incorporate any
potential price-related curtailments. Seneca currently has firm
sales contracts in place for 89% of its projected fiscal 2025
natural gas production, significantly limiting its exposure to
in-basin markets. Further, 63% of expected 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.
Additionally, Seneca’s depreciation, depletion
and amortization (“DD&A”) guidance range was revised downward
to reflect the impact of the fourth quarter fiscal 2024 ceiling
test impairment and the associated impact on the full cost pool,
while all other unit costs are expected to be in line with previous
expectations.
The Company’s other fiscal 2025 guidance
assumptions remain largely unchanged and are detailed in the table
on page 8.
DISCUSSION OF FOURTH QUARTER RESULTS BY
SEGMENT
The following earnings discussion of each
operating segment for the quarter ended September 30, 2024 is
summarized in a tabular form on pages 9 and 10 of this report
(earnings drivers for the fiscal year ended September 30, 2024 are
summarized on pages 11 and 12). 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) |
|
2024 |
|
|
|
2023 |
|
|
Variance |
GAAP Earnings |
$ |
(166,475 |
) |
|
$ |
36,772 |
|
|
$ |
(203,247 |
) |
Impairment of assets, net of
tax |
|
204,089 |
|
|
|
— |
|
|
|
204,089 |
|
Unrealized (gain) loss on
derivative asset, net of tax |
|
1,239 |
|
|
|
(2,028 |
) |
|
|
3,267 |
|
Adjusted Operating
Results |
$ |
38,853 |
|
|
$ |
34,744 |
|
|
$ |
4,109 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
129,258 |
|
|
$ |
132,641 |
|
|
$ |
(3,383 |
) |
Seneca’s fourth quarter GAAP earnings decreased $203.2 million
versus the prior year. This was primarily driven by non-cash,
pre-tax impairment charges of $272.4 million ($204.1 million
after-tax), the vast majority of which is related to a “ceiling
test” impairment which required Seneca to write-down the book value
of its reserves under the full cost method of accounting. Excluding
impairments, as well as the net impact of unrealized losses related
to reductions in the fair value of contingent consideration
received in connection with the June 2022 divestiture of Seneca’s
California assets (see table above), Seneca's adjusted operating
results increased $4.1 million primarily due to higher realized
natural gas prices and a lower effective income tax rate, partially
offset by lower natural gas production and higher operating
expenses.
Each quarter, Seneca is required to perform a
ceiling test comparing the present value of future net revenues
from its reserves, after the effect of income taxes, with the book
value of those reserves at the balance sheet date. The future net
reserves (“the ceiling”) are based on an unweighted arithmetic
average of first day of the month pricing for each month within the
12-month period prior to the end of the reporting period, adjusted
for the impact of Seneca’s future natural gas hedges, discounted at
the required rate of 10%. If the book value of the reserves exceeds
the ceiling, a non-cash impairment charge must be recorded in order
to reduce the book value of the reserves to the calculated ceiling.
For purposes of the ceiling test, the 12-month average of first day
of the month pricing for NYMEX natural gas for the period ended
September 30, 2024 was $2.21 per MMBtu. It is expected that Seneca
will record an additional non-cash impairment in the first quarter
of fiscal 2025 and could record additional impairments beyond that
depending on the commodity price environment.
During the fourth quarter, Seneca produced 91.9
Bcf of natural gas, a decrease of 1.8 Bcf, or 2%, from the prior
year. During the quarter, Seneca voluntarily curtailed 1.5 Bcf of
production due to low in-basin pricing. Absent those curtailments,
production would have been largely unchanged compared to the prior
year.
Seneca’s average realized natural gas price,
after the impact of hedging and transportation costs, was $2.40 per
Mcf, an increase of $0.07 per Mcf, or 3%, from the prior year.
Seneca’s hedging portfolio provided an uplift of $0.67 per Mcf
during the quarter, which more than offset a 13% decrease in
pre-hedge natural gas price realizations versus the prior year.
On a per unit basis, fourth quarter lease
operating and transportation expense (“LOE”) was $0.74 per Mcf, an
increase of $0.05 per Mcf from the prior year. On an absolute
basis, LOE increased $3.2 million ($0.03 per Mcf) largely as a
result of the timing of certain repairs and maintenance costs, as
well as some one-time road repair costs related to Tropical Storm
Debby, and higher intercompany gathering costs. LOE included $51.3
million ($0.56 per Mcf) for gathering and compression services from
the Company’s Gathering segment to connect Seneca’s production to
sales points along interstate pipelines.
General and administrative (“G&A”) expense
was $0.20 per Mcf, an increase of $0.02 per Mcf from the prior
year. On an absolute basis, Seneca’s G&A expense increased $0.8
million primarily due to increases in personnel costs.
DD&A expense was $0.69 per Mcf, a decrease
of $0.02 per Mcf from the prior year. Absolute DD&A expense
decreased $2.6 million ($0.03 per Mcf) due to the ceiling test
impairment incurred during the third quarter of fiscal 2024 that
lowered Seneca’s full cost pool depletable base.
The reduction in Seneca’s income tax expense was
primarily driven by a decrease in pre-tax income and lower state
income tax expense. The lower state income taxes were a result of a
decrease in Pennsylvania’s state income tax rate from 9.99% in the
prior year to 8.99% in the current year, as well as the change in
the mix of revenues between state jurisdictions.
Proved Reserves Year-End
Update
Seneca’s total proved reserves at September 30,
2024 were 4,753 Bcfe, an increase of 217 Bcfe, or 5%, from
September 30, 2023. This increase was a result of Seneca replacing
155% of its fiscal 2024 production. Proved developed reserves at
the end of fiscal 2024 were 3,486 Bcfe, representing 73% of total
proved reserves. In fiscal 2024, Seneca added 602 Bcfe of proved
reserve extensions and discoveries and 7 Bcfe of net positive
revisions due primarily to improvements in well performance and
changes in development plans, partially offset by price-related
revisions.
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) |
|
2024 |
|
|
|
2023 |
|
Variance |
GAAP Earnings |
$ |
(5,812 |
) |
|
$ |
23,354 |
|
$ |
(29,166 |
) |
Impairment of assets, net of
tax |
|
33,759 |
|
|
|
— |
|
|
33,759 |
|
Adjusted Operating
Results |
$ |
27,947 |
|
|
$ |
23,354 |
|
$ |
4,593 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
62,527 |
|
|
$ |
56,236 |
|
$ |
6,291 |
|
The Pipeline and Storage segment’s fourth quarter GAAP earnings
decreased $29.2 million versus the prior year. This was primarily
driven by a non-cash, pre-tax impairment charge of $46.1 million
($33.8 million after-tax) to write-down the carrying value of
certain assets associated with Supply Corporation and Empire's
Northern Access project. Excluding this impairment, the Pipeline
and Storage segment’s adjusted operating results increased $4.6
million primarily due to higher operating revenues, partly offset
by higher operation and maintenance (“O&M”) and interest
expenses.
The impairment of the Northern Access project
was a result of a detailed review of the project following the
favorable resolution of pending litigation in the U.S. Court of
Appeals for the D.C. Circuit earlier in the fiscal year. In
connection with this review, Supply Corporation and Empire
evaluated updated project costs, as well as the status of necessary
state and federal authorizations, many of which expired during the
extensive, multi-year litigation with the New York State Department
of Environmental Conservation and other project opponents. Taking
into consideration general inflationary pressures on project costs
and the pipeline transportation rate increases necessary to support
the project, along with the ongoing challenges facing natural gas
pipeline development in the State of New York, Supply Corporation,
Empire, and Seneca agreed to terminate the precedent agreements on
October 16, 2024. As a result, the Company is unlikely to pursue
construction of the project and has taken an impairment charge at
September 30, 2024.
The increase in operating revenues of $10.5
million, or 11%, was primarily attributable to an increase in
Supply Corporation’s transportation and storage rates effective
February 1, 2024, in accordance with its rate case settlement.
O&M expense increased $4.0 million primarily
due to higher pipeline integrity and personnel costs. Interest
expense increased $0.9 million primarily due to a higher average
amount of net borrowings.
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) |
|
2024 |
|
|
2023 |
|
Variance |
GAAP Earnings |
$ |
24,403 |
|
$ |
26,517 |
|
$ |
(2,114 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
43,988 |
|
$ |
46,874 |
|
$ |
(2,886 |
) |
The Gathering segment’s fourth quarter GAAP earnings decreased $2.1
million versus the prior year due to higher O&M and DD&A
expense. O&M expense increased $2.1 million compared to the
prior year primarily due to higher material costs, higher outside
services expenses (such as contractor fees for compressor repairs,
maintenance and overhauls), as well as higher personnel costs.
DD&A expense increased $0.9 million primarily due 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
Corporation”), which sells or transports natural gas to customers
located in western New York and northwestern Pennsylvania.
|
Three Months Ended |
|
September 30, |
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
Variance |
GAAP Earnings |
$ |
(16,759 |
) |
|
$ |
(7,179 |
) |
|
$ |
(9,580 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
(228 |
) |
|
$ |
6,693 |
|
|
$ |
(6,921 |
) |
The Utility segment’s fourth quarter GAAP net loss was $9.6 million
higher than the net loss in the prior year's fourth quarter due to
lower customer margins (operating revenues less purchased gas
sold), an increase in O&M and interest expenses and a higher
effective income tax rate.
The $2.5 million decline in customer margin for
the quarter was primarily due to adjustments related to annual
reconciliations of certain regulatory rate and cost recovery
mechanisms, the largest of which was negatively impacted by lower
natural gas prices compared to last year. This was partially offset
by the benefit from higher revenues from Distribution Corporation’s
system modernization tracking mechanisms in its New York service
territory and the ongoing impact of the base rate increase in its
Pennsylvania service territory that went into effect in August
2023.
O&M expense increased by $3.8 million,
primarily driven by higher personnel costs, expenses related to the
current New York rate case proceeding, as well as costs related to
the timing of leak patrols and higher technology-related costs.
Interest expense increased $1.3 million
primarily due to a higher average amount of net borrowings. The
increase in the Utility segment’s effective income tax rate was
primarily driven by the recognition of tax deductions in the
prior-year fourth quarter related to the adoption of updated IRS
guidance on repairs and maintenance expenditures published in
2023.
New York Rate Case
Update
The Company filed a Joint Proposal with the New
York Public Service Commission (“NYPSC”) on September 9, 2024,
that, if approved, would establish a three-year rate plan
commencing October 1, 2024. The Joint Proposal would allow the
Company to raise its base delivery rates to recover its increasing
costs of providing safe and reliable utility service, including the
required rate of return on utility rate base, higher operating
costs, and an increase in depreciation expense. The Joint Proposal
allows for an $86 million increase in annual revenue requirement
over three years, with the first-year impact of $57 million in
fiscal 2025 and the remainder in fiscal 2026 and 2027. The Joint
Proposal is not deemed final as it remains subject to Commission
approval. The Joint Proposal includes standard make-whole language
allowing the recovery of authorized revenues between October 1,
2024, and the start of new rates.
Corporate and All Other
The Company’s operations that are included in
Corporate and All Other generated a combined net loss of $3.0
million in the current-year fourth quarter, which was $2.8 million
lower than the combined net loss of $5.8 million in the prior-year
fourth quarter. The reduction in net loss was primarily driven by
lower O&M expense as a result of a decrease in professional
services expense. In addition, the mark-to-market of investment
securities swung from a modest unrealized loss in fiscal 2023 to a
modest unrealized gain in the current year.
EARNINGS TELECONFERENCE
A conference call to discuss the results will be
held on Thursday, November 7, 2024, at 10 a.m. ET. All participants
must pre-register to join this conference using the Participant
Registration link. A webcast link to the
conference call will be provided under the Events Calendar on the
NFG Investor Relations website at investor.nationalfuelgas.com. A
replay will be available following the call through the end of the
day, Thursday, November 14, 2024. To access the replay, dial
1-866-813-9403 and provide Access Code 646147.
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.nationalfuel.com.
Analyst
Contact: |
Natalie M.
Fischer |
716-857-7315 |
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: 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; changes in the
price of natural gas; 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; 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; 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 COMPANY
AND SUBSIDIARIES
GUIDANCE SUMMARY
As discussed on page 2, the Company is revising
its earnings guidance for fiscal 2025. Additional details on the
Company's forecast assumptions and business segment guidance are
outlined in the table below.
While the Company expects to record an
additional ceiling test impairment charge, 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,
2025, the amounts of these and other potential adjustments and
charges 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 2025 Guidance |
|
Updated FY 2025 Guidance |
Adjusted Consolidated
Earnings per Share, excluding items impacting
comparability |
$5.75 to $6.25 |
|
$5.50 to $6.00 |
Consolidated Effective
Tax Rate |
~ 24.5 - 25% |
|
~ 24.5 - 25% |
|
|
|
|
Capital
Expenditures(Millions) |
|
|
|
Exploration and Production |
$495 - $525 |
|
$495 - $525 |
Pipeline and Storage |
$130 - $150 |
|
$130 - $150 |
Gathering |
$95 - $110 |
|
$95 - $110 |
Utility |
$165 - $185 |
|
$165 - $185 |
Consolidated Capital Expenditures |
$885 - $970 |
|
$885 - $970 |
|
|
|
|
Exploration and
Production Segment Guidance |
|
|
|
|
|
|
|
Commodity Price Assumptions |
|
|
|
NYMEX natural gas price |
$3.25 /MMBtu |
|
$2.80 /MMBtu |
Appalachian basin spot price |
$2.30 /MMBtu |
|
$2.00 /MMBtu |
|
|
|
|
Realized natural gas prices, after hedging
($/Mcf) |
$2.62 - $2.66 |
|
$2.47 - $2.51 |
|
|
|
|
Production (Bcf) |
400 to 420 |
|
400 to 420 |
|
|
|
|
E&P Operating Costs($/Mcf) |
|
|
|
LOE |
$0.68 - $0.70 |
|
$0.68 - $0.70 |
G&A |
$0.18 - $0.19 |
|
$0.18 - $0.19 |
DD&A |
$0.70 - $0.74 |
|
$0.65 - $0.69 |
|
|
|
|
Other Business Segment
Guidance(Millions) |
|
|
|
Gathering Segment Revenues |
$245 - $255 |
|
$245 - $255 |
Pipeline and Storage Segment Revenues |
$415 - $435 |
|
$415 - $435 |
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
QUARTER ENDED SEPTEMBER 30, 2024 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2023 GAAP earnings |
$ |
36,772 |
|
|
$ |
23,354 |
|
|
$ |
26,517 |
|
|
$ |
(7,179 |
) |
|
$ |
(5,787 |
) |
|
$ |
73,677 |
|
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
adjusted operating results |
|
34,744 |
|
|
|
23,354 |
|
|
|
26,517 |
|
|
|
(7,179 |
) |
|
|
(5,219 |
) |
|
|
72,217 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
(3,331 |
) |
|
|
|
|
|
|
|
|
|
|
(3,331 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
4,433 |
|
|
|
|
|
|
|
|
|
|
|
4,433 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
8,298 |
|
|
|
(389 |
) |
|
|
|
|
|
|
7,909 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
(678 |
) |
|
|
|
|
(678 |
) |
Impact of new rates in
Pennsylvania |
|
|
|
|
|
|
|
442 |
|
|
|
|
|
442 |
|
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
1,714 |
|
|
|
|
|
1,714 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
(3,180 |
) |
|
|
|
|
(3,180 |
) |
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(2,527 |
) |
|
|
|
|
|
|
|
|
|
|
(2,527 |
) |
Lower (higher) operating
expenses |
|
(1,005 |
) |
|
|
(3,192 |
) |
|
|
(1,697 |
) |
|
|
(3,023 |
) |
|
|
1,991 |
|
|
|
(6,926 |
) |
Lower (higher) depreciation /
depletion |
|
2,086 |
|
|
|
|
|
(716 |
) |
|
|
(441 |
) |
|
|
|
|
929 |
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower interest
expense |
|
|
|
(738 |
) |
|
|
|
|
(1,160 |
) |
|
|
|
|
(1,898 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
4,439 |
|
|
|
390 |
|
|
|
862 |
|
|
|
(3,089 |
) |
|
|
(556 |
) |
|
|
2,046 |
|
All other / rounding |
|
14 |
|
|
|
(165 |
) |
|
|
(174 |
) |
|
|
(165 |
) |
|
|
(168 |
) |
|
|
(658 |
) |
Fourth quarter 2024
adjusted operating results |
|
38,853 |
|
|
|
27,947 |
|
|
|
24,403 |
|
|
|
(16,759 |
) |
|
|
(3,952 |
) |
|
|
70,492 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of assets |
|
(272,358 |
) |
|
|
(46,075 |
) |
|
|
|
|
|
|
|
|
(318,433 |
) |
Tax impact of impairment of
assets |
|
68,269 |
|
|
|
12,316 |
|
|
|
|
|
|
|
|
|
80,585 |
|
Unrealized gain (loss) on
derivative asset |
|
(1,700 |
) |
|
|
|
|
|
|
|
|
|
|
(1,700 |
) |
Tax impact of unrealized gain
(loss) on derivative asset |
|
461 |
|
|
|
|
|
|
|
|
|
|
|
461 |
|
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
1,232 |
|
|
|
1,232 |
|
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
(258 |
) |
|
|
(258 |
) |
Fourth quarter 2024
GAAP earnings |
$ |
(166,475 |
) |
|
$ |
(5,812 |
) |
|
$ |
24,403 |
|
|
$ |
(16,759 |
) |
|
$ |
(2,978 |
) |
|
$ |
(167,621 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
* 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 SEPTEMBER 30, 2024 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2023 GAAP earnings per share |
$ |
0.40 |
|
|
$ |
0.25 |
|
|
$ |
0.29 |
|
|
$ |
(0.08 |
) |
|
$ |
(0.06 |
) |
|
$ |
0.80 |
|
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
adjusted operating results per share |
|
0.38 |
|
|
|
0.25 |
|
|
|
0.29 |
|
|
|
(0.08 |
) |
|
|
(0.06 |
) |
|
|
0.78 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
(0.04 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
0.05 |
|
|
|
|
|
|
|
|
|
|
|
0.05 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
0.09 |
|
|
|
— |
|
|
|
|
|
|
|
0.09 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
(0.01 |
) |
Impact of new rates in
Pennsylvania |
|
|
|
|
|
|
|
— |
|
|
|
|
|
— |
|
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
0.02 |
|
|
|
|
|
0.02 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
(0.03 |
) |
|
|
|
|
(0.03 |
) |
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
(0.03 |
) |
Lower (higher) operating
expenses |
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
|
|
0.02 |
|
|
|
(0.07 |
) |
Lower (higher) depreciation /
depletion |
|
0.02 |
|
|
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
|
|
0.01 |
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower interest
expense |
|
|
|
(0.01 |
) |
|
|
|
|
(0.01 |
) |
|
|
|
|
(0.02 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
0.05 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
0.02 |
|
All other / rounding |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
— |
|
Fourth quarter 2024
adjusted operating results per share |
|
0.42 |
|
|
|
0.30 |
|
|
|
0.27 |
|
|
|
(0.18 |
) |
|
|
(0.04 |
) |
|
|
0.77 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of assets, net of
tax |
|
(2.24 |
) |
|
|
(0.37 |
) |
|
|
|
|
|
|
|
|
(2.61 |
) |
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 |
) |
|
|
— |
|
Fourth quarter 2024
GAAP earnings per share |
$ |
(1.82 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.27 |
|
|
$ |
(0.18 |
) |
|
$ |
(0.04 |
) |
|
$ |
(1.84 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
* 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 |
TWELVE MONTHS ENDED SEPTEMBER 30, 2024 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
Fiscal 2023 GAAP earnings |
$ |
232,275 |
|
|
$ |
100,501 |
|
|
$ |
99,724 |
|
|
$ |
48,395 |
|
|
$ |
(4,029 |
) |
|
$ |
476,866 |
|
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 adjusted
operating results |
|
232,934 |
|
|
|
100,501 |
|
|
|
99,724 |
|
|
|
48,395 |
|
|
|
(4,750 |
) |
|
|
476,804 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
39,805 |
|
|
|
|
|
|
|
|
|
|
|
39,805 |
|
Higher (lower) realized
natural gas prices, after hedging |
|
(34,033 |
) |
|
|
|
|
|
|
|
|
|
|
(34,033 |
) |
Higher (lower) other operating
revenues |
|
(3,729 |
) |
|
|
|
|
|
|
|
|
|
|
(3,729 |
) |
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
26,230 |
|
|
|
10,987 |
|
|
|
|
|
|
|
37,217 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
(1,388 |
) |
|
|
|
|
(1,388 |
) |
Impact of new rates in
Pennsylvania |
|
|
|
|
|
|
|
18,104 |
|
|
|
|
|
18,104 |
|
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
7,924 |
|
|
|
|
|
7,924 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
(5,299 |
) |
|
|
|
|
(5,299 |
) |
Higher (lower) other operating
revenues |
|
|
|
|
|
|
|
(2,094 |
) |
|
|
|
|
(2,094 |
) |
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(13,724 |
) |
|
|
|
|
|
|
|
|
|
|
(13,724 |
) |
Lower (higher) operating
expenses |
|
(8,908 |
) |
|
|
(7,648 |
) |
|
|
(1,247 |
) |
|
|
(10,747 |
) |
|
|
412 |
|
|
|
(28,138 |
) |
Lower (higher) property,
franchise and other taxes |
|
3,218 |
|
|
|
(653 |
) |
|
|
|
|
|
|
|
|
2,565 |
|
Lower (higher) depreciation /
depletion |
|
(29,074 |
) |
|
|
(2,925 |
) |
|
|
(2,443 |
) |
|
|
(3,011 |
) |
|
|
|
|
(37,453 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) other
income |
|
|
|
1,565 |
|
|
|
|
|
1,714 |
|
|
|
(2,027 |
) |
|
|
1,252 |
|
(Higher) lower interest
expense |
|
(4,331 |
) |
|
|
(3,104 |
) |
|
|
619 |
|
|
|
(935 |
) |
|
|
1,827 |
|
|
|
(5,924 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
7,331 |
|
|
|
(456 |
) |
|
|
(141 |
) |
|
|
4,446 |
|
|
|
(491 |
) |
|
|
10,689 |
|
All other / rounding |
|
413 |
|
|
|
(81 |
) |
|
|
(586 |
) |
|
|
(20 |
) |
|
|
427 |
|
|
|
153 |
|
Fiscal 2024 adjusted
operating results |
|
189,902 |
|
|
|
113,429 |
|
|
|
106,913 |
|
|
|
57,089 |
|
|
|
(4,602 |
) |
|
|
462,731 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of assets |
|
(473,054 |
) |
|
|
(46,075 |
) |
|
|
|
|
|
|
|
|
(519,129 |
) |
Tax impact of impairment of
assets |
|
123,955 |
|
|
|
12,316 |
|
|
|
|
|
|
|
|
|
136,271 |
|
Unrealized gain (loss) on
derivative asset |
|
(6,548 |
) |
|
|
|
|
|
|
|
|
|
|
(6,548 |
) |
Tax impact of unrealized gain
(loss) on derivative asset |
|
1,791 |
|
|
|
|
|
|
|
|
|
|
|
1,791 |
|
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
3,034 |
|
|
|
3,034 |
|
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
(637 |
) |
|
|
(637 |
) |
Fiscal 2024 GAAP
earnings |
$ |
(163,954 |
) |
|
$ |
79,670 |
|
|
$ |
106,913 |
|
|
$ |
57,089 |
|
|
$ |
(2,205 |
) |
|
$ |
77,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 |
TWELVE MONTHS ENDED SEPTEMBER 30, 2024 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
Fiscal 2023 GAAP earnings 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 adjusted
operating results per share |
|
2.52 |
|
|
|
1.09 |
|
|
|
1.08 |
|
|
|
0.52 |
|
|
|
(0.04 |
) |
|
|
5.17 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
0.43 |
|
|
|
|
|
|
|
|
|
|
|
0.43 |
|
Higher (lower) realized natural gas prices, after hedging |
|
(0.37 |
) |
|
|
|
|
|
|
|
|
|
|
(0.37 |
) |
Higher (lower) other operating
revenues |
|
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
(0.04 |
) |
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
0.28 |
|
|
|
0.12 |
|
|
|
|
|
|
|
0.40 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
(0.02 |
) |
|
|
|
|
(0.02 |
) |
Impact of new rates in
Pennsylvania |
|
|
|
|
|
|
|
0.20 |
|
|
|
|
|
0.20 |
|
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
0.09 |
|
|
|
|
|
0.09 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
(0.06 |
) |
|
|
|
|
(0.06 |
) |
Higher (lower) other operating
revenues |
|
|
|
|
|
|
|
(0.02 |
) |
|
|
|
|
(0.02 |
) |
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(0.15 |
) |
|
|
|
|
|
|
|
|
|
|
(0.15 |
) |
Lower (higher) operating
expenses |
|
(0.10 |
) |
|
|
(0.08 |
) |
|
|
(0.01 |
) |
|
|
(0.12 |
) |
|
|
— |
|
|
|
(0.31 |
) |
Lower (higher) property,
franchise and other taxes |
|
0.03 |
|
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
0.02 |
|
Lower (higher) depreciation /
depletion |
|
(0.31 |
) |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
|
|
|
|
(0.40 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) other
income |
|
|
|
0.02 |
|
|
|
|
|
0.02 |
|
|
|
(0.02 |
) |
|
|
0.02 |
|
(Higher) lower interest
expense |
|
(0.05 |
) |
|
|
(0.03 |
) |
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
0.02 |
|
|
|
(0.06 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
0.08 |
|
|
|
— |
|
|
|
— |
|
|
|
0.05 |
|
|
|
(0.01 |
) |
|
|
0.12 |
|
All other / rounding |
|
0.02 |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Fiscal 2024 adjusted
operating results per share |
|
2.06 |
|
|
|
1.23 |
|
|
|
1.16 |
|
|
|
0.62 |
|
|
|
(0.06 |
) |
|
|
5.01 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of assets, net of tax |
|
(3.78 |
) |
|
|
(0.37 |
) |
|
|
|
|
|
|
|
|
(4.15 |
) |
Unrealized gain (loss) on
derivative asset, net of tax |
|
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
(0.05 |
) |
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
0.03 |
|
|
|
0.03 |
|
Rounding |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
0.01 |
|
|
|
— |
|
Fiscal 2024 GAAP
earnings per share |
$ |
(1.78 |
) |
|
$ |
0.86 |
|
|
$ |
1.16 |
|
|
$ |
0.62 |
|
|
$ |
(0.02 |
) |
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
(Unaudited) |
|
(Unaudited) |
SUMMARY OF OPERATIONS |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Operating Revenues: |
|
|
|
|
|
|
|
Utility Revenues |
$ |
79,830 |
|
|
$ |
78,865 |
|
|
$ |
696,807 |
|
|
$ |
941,779 |
|
Exploration and Production and Other Revenues |
|
221,540 |
|
|
|
220,348 |
|
|
|
961,078 |
|
|
|
958,455 |
|
Pipeline and Storage and Gathering Revenues |
|
70,698 |
|
|
|
69,735 |
|
|
|
286,925 |
|
|
|
273,537 |
|
|
|
372,068 |
|
|
|
368,948 |
|
|
|
1,944,810 |
|
|
|
2,173,771 |
|
Operating Expenses: |
|
|
|
|
|
|
|
Purchased Gas |
|
(17,382 |
) |
|
|
(12,865 |
) |
|
|
150,062 |
|
|
|
437,595 |
|
Operation and Maintenance: |
|
|
|
|
|
|
|
Utility |
|
51,988 |
|
|
|
48,354 |
|
|
|
218,393 |
|
|
|
205,239 |
|
Exploration and Production and Other |
|
38,540 |
|
|
|
37,955 |
|
|
|
141,308 |
|
|
|
124,270 |
|
Pipeline and Storage and Gathering |
|
45,996 |
|
|
|
39,901 |
|
|
|
160,317 |
|
|
|
149,247 |
|
Property, Franchise and Other Taxes |
|
22,216 |
|
|
|
20,701 |
|
|
|
88,851 |
|
|
|
92,700 |
|
Depreciation, Depletion and Amortization |
|
108,847 |
|
|
|
109,599 |
|
|
|
457,026 |
|
|
|
409,573 |
|
Impairment of Assets |
|
318,433 |
|
|
|
— |
|
|
|
519,129 |
|
|
|
— |
|
|
|
568,638 |
|
|
|
243,645 |
|
|
|
1,735,086 |
|
|
|
1,418,624 |
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
(196,570 |
) |
|
|
125,303 |
|
|
|
209,724 |
|
|
|
755,147 |
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
Other Income (Deductions) |
|
3,237 |
|
|
|
5,384 |
|
|
|
16,226 |
|
|
|
18,138 |
|
Interest Expense on Long-Term Debt |
|
(33,008 |
) |
|
|
(28,449 |
) |
|
|
(122,799 |
) |
|
|
(111,948 |
) |
Other Interest Expense |
|
(1,646 |
) |
|
|
(4,453 |
) |
|
|
(15,896 |
) |
|
|
(19,938 |
) |
|
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
|
(227,987 |
) |
|
|
97,785 |
|
|
|
87,255 |
|
|
|
641,399 |
|
|
|
|
|
|
|
|
|
Income Tax Expense
(Benefit) |
|
(60,366 |
) |
|
|
24,108 |
|
|
|
9,742 |
|
|
|
164,533 |
|
|
|
|
|
|
|
|
|
Net Income (Loss) Available
for Common Stock |
$ |
(167,621 |
) |
|
$ |
73,677 |
|
|
$ |
77,513 |
|
|
$ |
476,866 |
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per Common
Share |
|
|
|
|
|
|
|
Basic |
$ |
(1.84 |
) |
|
$ |
0.80 |
|
|
$ |
0.84 |
|
|
$ |
5.20 |
|
Diluted |
$ |
(1.84 |
) |
|
$ |
0.80 |
|
|
$ |
0.84 |
|
|
$ |
5.17 |
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares: |
|
|
|
|
|
|
|
Used in Basic Calculation |
|
91,270,386 |
|
|
|
91,818,933 |
|
|
|
91,791,167 |
|
|
|
91,748,890 |
|
Used in Diluted
Calculation |
|
91,270,386 |
|
|
|
92,378,675 |
|
|
|
92,344,511 |
|
|
|
92,285,918 |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
|
|
|
September 30, |
|
September 30, |
(Thousands of Dollars) |
|
2024 |
|
|
|
2023 |
|
ASSETS |
|
|
|
Property, Plant and
Equipment |
$ |
14,524,798 |
|
|
$ |
13,635,303 |
|
Less -
Accumulated Depreciation, Depletion and Amortization |
|
7,185,593 |
|
|
|
6,335,441 |
|
Net Property, Plant and Equipment |
|
7,339,205 |
|
|
|
7,299,862 |
|
Current Assets: |
|
|
|
Cash and Temporary Cash
Investments |
|
38,222 |
|
|
|
55,447 |
|
Receivables - Net |
|
127,222 |
|
|
|
160,601 |
|
Unbilled Revenue |
|
15,521 |
|
|
|
16,622 |
|
Gas Stored Underground |
|
35,055 |
|
|
|
32,509 |
|
Materials and Supplies - at
average cost |
|
47,670 |
|
|
|
48,989 |
|
Other Current Assets |
|
92,229 |
|
|
|
100,260 |
|
Total Current Assets |
|
355,919 |
|
|
|
414,428 |
|
Other Assets: |
|
|
|
Recoverable Future Taxes |
|
80,084 |
|
|
|
69,045 |
|
Unamortized Debt Expense |
|
5,604 |
|
|
|
7,240 |
|
Other Regulatory Assets |
|
108,022 |
|
|
|
72,138 |
|
Deferred Charges |
|
69,662 |
|
|
|
82,416 |
|
Other Investments |
|
81,705 |
|
|
|
73,976 |
|
Goodwill |
|
5,476 |
|
|
|
5,476 |
|
Prepaid Pension and
Post-Retirement Benefit Costs |
|
180,230 |
|
|
|
200,301 |
|
Fair Value of Derivative
Financial Instruments |
|
87,905 |
|
|
|
50,487 |
|
Other |
|
5,958 |
|
|
|
4,891 |
|
Total Other Assets |
|
624,646 |
|
|
|
565,970 |
|
Total Assets |
$ |
8,319,770 |
|
|
$ |
8,280,260 |
|
CAPITALIZATION AND LIABILITIES |
|
|
|
Capitalization: |
|
|
|
Comprehensive Shareholders'
Equity |
|
|
|
Common Stock, $1 Par Value
Authorized - 200,000,000 Shares; Issued and |
|
|
|
Outstanding - 91,005,993
Shares and 91,819,405 Shares, Respectively |
$ |
91,006 |
|
|
$ |
91,819 |
|
Paid in Capital |
|
1,045,487 |
|
|
|
1,040,761 |
|
Earnings Reinvested in the
Business |
|
1,727,326 |
|
|
|
1,885,856 |
|
Accumulated Other Comprehensive Loss |
|
(15,476 |
) |
|
|
(55,060 |
) |
Total Comprehensive Shareholders' Equity |
|
2,848,343 |
|
|
|
2,963,376 |
|
Long-Term Debt, Net of Current Portion and Unamortized Discount and
Debt Issuance Costs |
|
2,188,243 |
|
|
|
2,384,485 |
|
Total Capitalization |
|
5,036,586 |
|
|
|
5,347,861 |
|
Current and Accrued Liabilities: |
|
|
|
Notes Payable to Banks and
Commercial Paper |
|
90,700 |
|
|
|
287,500 |
|
Current Portion of Long-Term
Debt |
|
500,000 |
|
|
|
— |
|
Accounts Payable |
|
165,068 |
|
|
|
152,193 |
|
Amounts Payable to
Customers |
|
42,720 |
|
|
|
59,019 |
|
Dividends Payable |
|
46,872 |
|
|
|
45,451 |
|
Interest Payable on Long-Term
Debt |
|
27,247 |
|
|
|
20,399 |
|
Customer Advances |
|
19,373 |
|
|
|
21,003 |
|
Customer Security
Deposits |
|
36,265 |
|
|
|
28,764 |
|
Other Accruals and Current
Liabilities |
|
162,903 |
|
|
|
160,974 |
|
Fair
Value of Derivative Financial Instruments |
|
4,744 |
|
|
|
31,009 |
|
Total Current and Accrued Liabilities |
|
1,095,892 |
|
|
|
806,312 |
|
Other Liabilities: |
|
|
|
Deferred Income Taxes |
|
1,111,165 |
|
|
|
1,124,170 |
|
Taxes Refundable to
Customers |
|
305,645 |
|
|
|
268,562 |
|
Cost of Removal Regulatory
Liability |
|
292,477 |
|
|
|
277,694 |
|
Other Regulatory
Liabilities |
|
151,452 |
|
|
|
165,441 |
|
Other Post-Retirement
Liabilities |
|
3,511 |
|
|
|
2,915 |
|
Asset Retirement
Obligations |
|
203,006 |
|
|
|
165,492 |
|
Other
Liabilities |
|
120,036 |
|
|
|
121,813 |
|
Total Other Liabilities |
|
2,187,292 |
|
|
|
2,126,087 |
|
Commitments and Contingencies |
|
— |
|
|
|
— |
|
Total Capitalization and Liabilities |
$ |
8,319,770 |
|
|
$ |
8,280,260 |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
|
Twelve Months Ended |
|
|
September 30, |
(Thousands of Dollars) |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
Operating Activities: |
|
|
|
|
Net Income Available for
Common Stock |
|
$ |
77,513 |
|
|
$ |
476,866 |
|
Adjustments to Reconcile Net
Income to Net Cash Provided by Operating Activities: |
|
|
|
|
Impairment of Assets |
|
|
519,129 |
|
|
|
— |
|
Depreciation, Depletion and Amortization |
|
|
457,026 |
|
|
|
409,573 |
|
Deferred Income Taxes |
|
|
(2,610 |
) |
|
|
151,403 |
|
Stock-Based Compensation |
|
|
22,080 |
|
|
|
20,630 |
|
Other |
|
|
24,411 |
|
|
|
19,647 |
|
Change in: |
|
|
|
|
Receivables and Unbilled Revenue |
|
|
34,369 |
|
|
|
213,579 |
|
Gas Stored Underground and Materials and Supplies |
|
|
1,738 |
|
|
|
(8,406 |
) |
Unrecovered Purchased Gas Costs |
|
|
— |
|
|
|
99,342 |
|
Other Current Assets |
|
|
8,144 |
|
|
|
(41,077 |
) |
Accounts Payable |
|
|
5,616 |
|
|
|
(37,095 |
) |
Amounts Payable to Customers |
|
|
(16,299 |
) |
|
|
58,600 |
|
Customer Advances |
|
|
(1,630 |
) |
|
|
(5,105 |
) |
Customer Security Deposits |
|
|
7,501 |
|
|
|
4,481 |
|
Other Accruals and Current Liabilities |
|
|
2,637 |
|
|
|
(67,664 |
) |
Other Assets |
|
|
(48,183 |
) |
|
|
(26,564 |
) |
Other Liabilities |
|
|
(25,481 |
) |
|
|
(31,135 |
) |
Net Cash Provided by Operating Activities |
|
$ |
1,065,961 |
|
|
$ |
1,237,075 |
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
Capital Expenditures |
|
$ |
(931,236 |
) |
|
$ |
(1,009,868 |
) |
Acquisition of Upstream
Assets |
|
|
— |
|
|
|
(124,758 |
) |
Sale of Fixed Income Mutual
Fund Shares in Grantor Trust |
|
|
— |
|
|
|
10,000 |
|
Other |
|
|
(2,669 |
) |
|
|
12,279 |
|
Net Cash Used in Investing Activities |
|
$ |
(933,905 |
) |
|
$ |
(1,112,347 |
) |
|
|
|
|
|
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 |
|
|
(196,800 |
) |
|
|
227,500 |
|
Shares Repurchased Under
Repurchase Plan |
|
|
(64,086 |
) |
|
|
— |
|
Reduction of Long-Term
Debt |
|
|
— |
|
|
|
(549,000 |
) |
Net Proceeds From Issuance of
Long-Term Debt |
|
|
299,359 |
|
|
|
297,306 |
|
Dividends Paid on Common
Stock |
|
|
(183,798 |
) |
|
|
(176,096 |
) |
Net
Repurchases of Common Stock Under Stock and Benefit Plans |
|
|
(3,956 |
) |
|
|
(6,709 |
) |
Net Cash Used in Financing Activities |
|
$ |
(149,281 |
) |
|
$ |
(206,999 |
) |
|
|
|
|
|
Net Decrease in Cash, Cash
Equivalents, and Restricted Cash |
|
|
(17,225 |
) |
|
|
(82,271 |
) |
Cash,
Cash Equivalents, and Restricted Cash at Beginning of Period |
|
|
55,447 |
|
|
|
137,718 |
|
Cash, Cash Equivalents, and Restricted Cash at September 30 |
|
$ |
38,222 |
|
|
$ |
55,447 |
|
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 |
|
2024 |
|
|
|
2023 |
|
|
Variance |
|
|
2024 |
|
|
2023 |
|
Variance |
Total Operating Revenues |
$ |
221,540 |
|
|
$ |
220,348 |
|
|
$ |
1,192 |
|
|
$ |
961,078 |
|
$ |
958,455 |
|
$ |
2,623 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
|
General and Administrative Expense |
|
17,977 |
|
|
|
17,163 |
|
|
|
814 |
|
|
|
71,148 |
|
|
66,074 |
|
|
5,074 |
|
Lease Operating and Transportation Expense |
|
67,611 |
|
|
|
64,412 |
|
|
|
3,199 |
|
|
|
270,927 |
|
|
253,555 |
|
|
17,372 |
|
All Other Operation and Maintenance Expense |
|
2,815 |
|
|
|
2,357 |
|
|
|
458 |
|
|
|
15,529 |
|
|
9,327 |
|
|
6,202 |
|
Property, Franchise and Other Taxes |
|
3,879 |
|
|
|
3,775 |
|
|
|
104 |
|
|
|
13,643 |
|
|
17,717 |
|
|
(4,074 |
) |
Depreciation, Depletion and Amortization |
|
63,754 |
|
|
|
66,394 |
|
|
|
(2,640 |
) |
|
|
277,945 |
|
|
241,142 |
|
|
36,803 |
|
Impairment of Assets |
|
272,358 |
|
|
|
— |
|
|
|
272,358 |
|
|
|
473,054 |
|
|
— |
|
|
473,054 |
|
|
|
428,394 |
|
|
|
154,101 |
|
|
|
274,293 |
|
|
|
1,122,246 |
|
|
587,815 |
|
|
534,431 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
(206,854 |
) |
|
|
66,247 |
|
|
|
(273,101 |
) |
|
|
(161,168 |
) |
|
370,640 |
|
|
(531,808 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit |
|
100 |
|
|
|
347 |
|
|
|
(247 |
) |
|
|
402 |
|
|
1,389 |
|
|
(987 |
) |
Interest and Other Income (Deductions) |
|
(988 |
) |
|
|
3,457 |
|
|
|
(4,445 |
) |
|
|
(1,819 |
) |
|
2,359 |
|
|
(4,178 |
) |
Interest Expense |
|
(14,753 |
) |
|
|
(15,268 |
) |
|
|
515 |
|
|
|
(59,799 |
) |
|
(54,317 |
) |
|
(5,482 |
) |
Income (Loss) Before Income
Taxes |
|
(222,495 |
) |
|
|
54,783 |
|
|
|
(277,278 |
) |
|
|
(222,384 |
) |
|
320,071 |
|
|
(542,455 |
) |
Income Tax Expense
(Benefit) |
|
(56,020 |
) |
|
|
18,011 |
|
|
|
(74,031 |
) |
|
|
(58,430 |
) |
|
87,796 |
|
|
(146,226 |
) |
Net Income (Loss) |
$ |
(166,475 |
) |
|
$ |
36,772 |
|
|
$ |
(203,247 |
) |
|
$ |
(163,954 |
) |
$ |
232,275 |
|
$ |
(396,229 |
) |
Net Income (Loss) Per Share
(Diluted) |
$ |
(1.82 |
) |
|
$ |
0.40 |
|
|
$ |
(2.22 |
) |
|
$ |
(1.78 |
) |
$ |
2.52 |
|
$ |
(4.30 |
) |
|
|
|
|
|
|
|
|
|
|
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 |
|
2024 |
|
|
|
2023 |
|
|
Variance |
|
|
2024 |
|
|
2023 |
|
Variance |
Revenues from External Customers |
$ |
67,318 |
|
|
$ |
64,846 |
|
|
$ |
2,472 |
|
|
$ |
271,388 |
|
$ |
259,646 |
|
$ |
11,742 |
|
Intersegment Revenues |
|
37,224 |
|
|
|
29,192 |
|
|
|
8,032 |
|
|
|
141,005 |
|
|
119,545 |
|
|
21,460 |
|
Total Operating Revenues |
|
104,542 |
|
|
|
94,038 |
|
|
|
10,504 |
|
|
|
412,393 |
|
|
379,191 |
|
|
33,202 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
(3 |
) |
|
|
326 |
|
|
|
(329 |
) |
|
|
1,537 |
|
|
1,436 |
|
|
101 |
|
Operation and Maintenance |
|
33,194 |
|
|
|
29,154 |
|
|
|
4,040 |
|
|
|
116,335 |
|
|
106,654 |
|
|
9,681 |
|
Property, Franchise and Other Taxes |
|
8,824 |
|
|
|
8,322 |
|
|
|
502 |
|
|
|
34,601 |
|
|
33,774 |
|
|
827 |
|
Depreciation, Depletion and Amortization |
|
18,373 |
|
|
|
17,953 |
|
|
|
420 |
|
|
|
74,530 |
|
|
70,827 |
|
|
3,703 |
|
Impairment of Assets |
|
46,075 |
|
|
|
— |
|
|
|
46,075 |
|
|
|
46,075 |
|
|
— |
|
|
46,075 |
|
|
|
106,463 |
|
|
|
55,755 |
|
|
|
50,708 |
|
|
|
273,078 |
|
|
212,691 |
|
|
60,387 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
(1,921 |
) |
|
|
38,283 |
|
|
|
(40,204 |
) |
|
|
139,315 |
|
|
166,500 |
|
|
(27,185 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit |
|
1,257 |
|
|
|
1,330 |
|
|
|
(73 |
) |
|
|
5,030 |
|
|
5,319 |
|
|
(289 |
) |
Interest and Other Income |
|
2,458 |
|
|
|
2,017 |
|
|
|
441 |
|
|
|
8,798 |
|
|
6,670 |
|
|
2,128 |
|
Interest Expense |
|
(11,730 |
) |
|
|
(10,796 |
) |
|
|
(934 |
) |
|
|
(47,428 |
) |
|
(43,499 |
) |
|
(3,929 |
) |
Income (Loss) Before Income
Taxes |
|
(9,936 |
) |
|
|
30,834 |
|
|
|
(40,770 |
) |
|
|
105,715 |
|
|
134,990 |
|
|
(29,275 |
) |
Income Tax Expense
(Benefit) |
|
(4,124 |
) |
|
|
7,480 |
|
|
|
(11,604 |
) |
|
|
26,045 |
|
|
34,489 |
|
|
(8,444 |
) |
Net Income (Loss) |
$ |
(5,812 |
) |
|
$ |
23,354 |
|
|
$ |
(29,166 |
) |
|
$ |
79,670 |
|
$ |
100,501 |
|
$ |
(20,831 |
) |
Net Income (Loss) Per Share
(Diluted) |
$ |
(0.07 |
) |
|
$ |
0.25 |
|
|
$ |
(0.32 |
) |
|
$ |
0.86 |
|
$ |
1.09 |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
GATHERING
SEGMENT |
|
2024 |
|
|
|
2023 |
|
|
Variance |
|
|
2024 |
|
|
2023 |
|
Variance |
Revenues from External
Customers |
$ |
3,380 |
|
|
$ |
4,889 |
|
|
$ |
(1,509 |
) |
|
$ |
15,537 |
|
$ |
13,891 |
|
$ |
1,646 |
|
Intersegment Revenues |
|
54,145 |
|
|
|
53,129 |
|
|
|
1,016 |
|
|
|
228,688 |
|
|
216,426 |
|
|
12,262 |
|
Total Operating Revenues |
|
57,525 |
|
|
|
58,018 |
|
|
|
(493 |
) |
|
|
244,225 |
|
|
230,317 |
|
|
13,908 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
13,271 |
|
|
|
11,123 |
|
|
|
2,148 |
|
|
|
45,954 |
|
|
44,375 |
|
|
1,579 |
|
Property, Franchise and Other Taxes |
|
266 |
|
|
|
21 |
|
|
|
245 |
|
|
|
489 |
|
|
60 |
|
|
429 |
|
Depreciation, Depletion and Amortization |
|
10,017 |
|
|
|
9,111 |
|
|
|
906 |
|
|
|
38,817 |
|
|
35,725 |
|
|
3,092 |
|
|
|
23,554 |
|
|
|
20,255 |
|
|
|
3,299 |
|
|
|
85,260 |
|
|
80,160 |
|
|
5,100 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
33,971 |
|
|
|
37,763 |
|
|
|
(3,792 |
) |
|
|
158,965 |
|
|
150,157 |
|
|
8,808 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit |
|
9 |
|
|
|
37 |
|
|
|
(28 |
) |
|
|
38 |
|
|
150 |
|
|
(112 |
) |
Interest and Other Income |
|
76 |
|
|
|
75 |
|
|
|
1 |
|
|
|
333 |
|
|
534 |
|
|
(201 |
) |
Interest Expense |
|
(3,381 |
) |
|
|
(3,433 |
) |
|
|
52 |
|
|
|
(14,206 |
) |
|
(14,989 |
) |
|
783 |
|
Income Before Income
Taxes |
|
30,675 |
|
|
|
34,442 |
|
|
|
(3,767 |
) |
|
|
145,130 |
|
|
135,852 |
|
|
9,278 |
|
Income Tax Expense |
|
6,272 |
|
|
|
7,925 |
|
|
|
(1,653 |
) |
|
|
38,217 |
|
|
36,128 |
|
|
2,089 |
|
Net Income |
$ |
24,403 |
|
|
$ |
26,517 |
|
|
$ |
(2,114 |
) |
|
$ |
106,913 |
|
$ |
99,724 |
|
$ |
7,189 |
|
Net Income Per Share
(Diluted) |
$ |
0.27 |
|
|
$ |
0.29 |
|
|
$ |
(0.02 |
) |
|
$ |
1.16 |
|
$ |
1.08 |
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
2024 |
|
|
|
2023 |
|
|
Variance |
|
|
2024 |
|
|
2023 |
|
Variance |
Revenues from External Customers |
$ |
79,830 |
|
|
$ |
78,865 |
|
|
$ |
965 |
|
|
$ |
696,807 |
|
$ |
941,779 |
|
$ |
(244,972 |
) |
Intersegment Revenues |
|
77 |
|
|
|
81 |
|
|
|
(4 |
) |
|
|
555 |
|
|
581 |
|
|
(26 |
) |
Total Operating Revenues |
|
79,907 |
|
|
|
78,946 |
|
|
|
961 |
|
|
|
697,362 |
|
|
942,360 |
|
|
(244,998 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
18,232 |
|
|
|
14,743 |
|
|
|
3,489 |
|
|
|
283,215 |
|
|
548,195 |
|
|
(264,980 |
) |
Operation and Maintenance |
|
52,882 |
|
|
|
49,056 |
|
|
|
3,826 |
|
|
|
222,142 |
|
|
208,539 |
|
|
13,603 |
|
Property, Franchise and Other Taxes |
|
9,021 |
|
|
|
8,454 |
|
|
|
567 |
|
|
|
39,492 |
|
|
40,624 |
|
|
(1,132 |
) |
Depreciation, Depletion and Amortization |
|
16,583 |
|
|
|
16,026 |
|
|
|
557 |
|
|
|
65,261 |
|
|
61,450 |
|
|
3,811 |
|
|
|
96,718 |
|
|
|
88,279 |
|
|
|
8,439 |
|
|
|
610,110 |
|
|
858,808 |
|
|
(248,698 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
(16,811 |
) |
|
|
(9,333 |
) |
|
|
(7,478 |
) |
|
|
87,252 |
|
|
83,552 |
|
|
3,700 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit |
|
251 |
|
|
|
9 |
|
|
|
242 |
|
|
|
2,040 |
|
|
4 |
|
|
2,036 |
|
Interest and Other Income |
|
1,740 |
|
|
|
1,437 |
|
|
|
303 |
|
|
|
6,475 |
|
|
6,339 |
|
|
136 |
|
Interest Expense |
|
(9,325 |
) |
|
|
(8,041 |
) |
|
|
(1,284 |
) |
|
|
(34,727 |
) |
|
(34,233 |
) |
|
(494 |
) |
Income (Loss) Before Income
Taxes |
|
(24,145 |
) |
|
|
(15,928 |
) |
|
|
(8,217 |
) |
|
|
61,040 |
|
|
55,662 |
|
|
5,378 |
|
Income Tax Expense
(Benefit) |
|
(7,386 |
) |
|
|
(8,749 |
) |
|
|
1,363 |
|
|
|
3,951 |
|
|
7,267 |
|
|
(3,316 |
) |
Net Income (Loss) |
$ |
(16,759 |
) |
|
$ |
(7,179 |
) |
|
$ |
(9,580 |
) |
|
$ |
57,089 |
|
$ |
48,395 |
|
$ |
8,694 |
|
Net Income (Loss) Per Share
(Diluted) |
$ |
(0.18 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.10 |
) |
|
$ |
0.62 |
|
$ |
0.52 |
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
2024 |
|
|
|
2023 |
|
|
Variance |
|
|
2024 |
|
|
2023 |
|
Variance |
Total Operating Revenues |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
17 |
|
|
|
— |
|
|
|
17 |
|
|
|
17 |
|
|
21 |
|
|
(4 |
) |
|
|
17 |
|
|
|
— |
|
|
|
17 |
|
|
|
17 |
|
|
21 |
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
(17 |
) |
|
|
— |
|
|
|
(17 |
) |
|
|
(17 |
) |
|
(21 |
) |
|
4 |
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Interest and Other Income (Deductions) |
|
(227 |
) |
|
|
(66 |
) |
|
|
(161 |
) |
|
|
(412 |
) |
|
(517 |
) |
|
105 |
|
Interest Expense |
|
(112 |
) |
|
|
(68 |
) |
|
|
(44 |
) |
|
|
(374 |
) |
|
(157 |
) |
|
(217 |
) |
Loss before Income Taxes |
|
(356 |
) |
|
|
(134 |
) |
|
|
(222 |
) |
|
|
(803 |
) |
|
(695 |
) |
|
(108 |
) |
Income Tax Benefit |
|
(81 |
) |
|
|
(33 |
) |
|
|
(48 |
) |
|
|
(186 |
) |
|
(164 |
) |
|
(22 |
) |
Net Loss |
$ |
(275 |
) |
|
$ |
(101 |
) |
|
$ |
(174 |
) |
|
$ |
(617 |
) |
$ |
(531 |
) |
$ |
(86 |
) |
Net Loss Per Share
(Diluted) |
$ |
(0.01 |
) |
|
$ |
— |
|
|
$ |
(0.01 |
) |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
CORPORATE |
|
2024 |
|
|
|
2023 |
|
|
Variance |
|
|
2024 |
|
|
2023 |
|
Variance |
Revenues from External
Customers |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Intersegment Revenues |
|
1,216 |
|
|
|
932 |
|
|
|
284 |
|
|
|
5,073 |
|
|
4,388 |
|
|
685 |
|
Total Operating Revenues |
|
1,216 |
|
|
|
932 |
|
|
|
284 |
|
|
|
5,073 |
|
|
4,388 |
|
|
685 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
5,808 |
|
|
|
8,345 |
|
|
|
(2,537 |
) |
|
|
18,597 |
|
|
19,115 |
|
|
(518 |
) |
Property, Franchise and Other Taxes |
|
226 |
|
|
|
129 |
|
|
|
97 |
|
|
|
626 |
|
|
525 |
|
|
101 |
|
Depreciation, Depletion and Amortization |
|
120 |
|
|
|
115 |
|
|
|
5 |
|
|
|
473 |
|
|
429 |
|
|
44 |
|
|
|
6,154 |
|
|
|
8,589 |
|
|
|
(2,435 |
) |
|
|
19,696 |
|
|
20,069 |
|
|
(373 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
(4,938 |
) |
|
|
(7,657 |
) |
|
|
2,719 |
|
|
|
(14,623 |
) |
|
(15,681 |
) |
|
1,058 |
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(386 |
) |
|
|
(354 |
) |
|
|
(32 |
) |
|
|
(1,548 |
) |
|
(1,417 |
) |
|
(131 |
) |
Interest and Other Income |
|
40,938 |
|
|
|
36,337 |
|
|
|
4,601 |
|
|
|
161,225 |
|
|
147,935 |
|
|
13,290 |
|
Interest Expense on Long-Term Debt |
|
(33,008 |
) |
|
|
(28,449 |
) |
|
|
(4,559 |
) |
|
|
(122,799 |
) |
|
(111,948 |
) |
|
(10,851 |
) |
Other Interest Expense |
|
(4,336 |
) |
|
|
(6,089 |
) |
|
|
1,753 |
|
|
|
(23,698 |
) |
|
(23,370 |
) |
|
(328 |
) |
Loss before Income Taxes |
|
(1,730 |
) |
|
|
(6,212 |
) |
|
|
4,482 |
|
|
|
(1,443 |
) |
|
(4,481 |
) |
|
3,038 |
|
Income Tax Expense
(Benefit) |
|
973 |
|
|
|
(526 |
) |
|
|
1,499 |
|
|
|
145 |
|
|
(983 |
) |
|
1,128 |
|
Net Loss |
$ |
(2,703 |
) |
|
$ |
(5,686 |
) |
|
$ |
2,983 |
|
|
$ |
(1,588 |
) |
$ |
(3,498 |
) |
$ |
1,910 |
|
Net Loss Per Share
(Diluted) |
$ |
(0.03 |
) |
|
$ |
(0.06 |
) |
|
$ |
0.03 |
|
|
$ |
(0.02 |
) |
$ |
(0.04 |
) |
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
INTERSEGMENT
ELIMINATIONS |
|
2024 |
|
|
|
2023 |
|
|
Variance |
|
|
2024 |
|
|
2023 |
|
Variance |
Intersegment Revenues |
$ |
(92,662 |
) |
|
$ |
(83,334 |
) |
|
$ |
(9,328 |
) |
|
$ |
(375,321 |
) |
$ |
(340,940 |
) |
$ |
(34,381 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
(35,611 |
) |
|
|
(27,934 |
) |
|
|
(7,677 |
) |
|
|
(134,690 |
) |
|
(112,036 |
) |
|
(22,654 |
) |
Operation and Maintenance |
|
(57,051 |
) |
|
|
(55,400 |
) |
|
|
(1,651 |
) |
|
|
(240,631 |
) |
|
(228,904 |
) |
|
(11,727 |
) |
|
|
(92,662 |
) |
|
|
(83,334 |
) |
|
|
(9,328 |
) |
|
|
(375,321 |
) |
|
(340,940 |
) |
|
(34,381 |
) |
Operating Income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Interest and Other Deductions |
|
(41,991 |
) |
|
|
(39,242 |
) |
|
|
(2,749 |
) |
|
|
(164,336 |
) |
|
(150,627 |
) |
|
(13,709 |
) |
Interest Expense |
|
41,991 |
|
|
|
39,242 |
|
|
|
2,749 |
|
|
|
164,336 |
|
|
150,627 |
|
|
13,709 |
|
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 |
|
|
2024 |
|
|
2023 |
|
(Decrease) |
|
|
2024 |
|
|
2023 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production(1) |
$ |
136,529 |
(2) |
$ |
144,938 |
(3) |
$ |
(8,409 |
) |
|
$ |
536,349 |
(2)(3) |
$ |
737,725 |
(3)(4) |
$ |
(201,376 |
) |
Pipeline and Storage |
|
42,039 |
(2) |
|
75,109 |
(3) |
|
(33,070 |
) |
|
|
110,830 |
(2)(3) |
|
141,877 |
(3)(4) |
|
(31,047 |
) |
Gathering |
|
40,163 |
(2) |
|
47,917 |
(3) |
|
(7,754 |
) |
|
|
109,251 |
(2)(3) |
|
103,295 |
(3)(4) |
|
5,956 |
|
Utility |
|
67,108 |
(2) |
|
51,246 |
(3) |
|
15,862 |
|
|
|
184,615 |
(2)(3) |
|
139,922 |
(3)(4) |
|
44,693 |
|
Total Reportable Segments |
|
285,839 |
|
|
319,210 |
|
|
(33,371 |
) |
|
|
941,045 |
|
|
1,122,819 |
|
|
(181,774 |
) |
All Other |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
Corporate |
|
717 |
|
|
305 |
|
|
412 |
|
|
|
970 |
|
|
754 |
|
|
216 |
|
Total Capital Expenditures |
$ |
286,556 |
|
$ |
319,515 |
|
$ |
(32,959 |
) |
|
$ |
942,015 |
|
$ |
1,123,573 |
|
$ |
(181,558 |
) |
(1) The year ended September 30,
2024 includes $6.2 million related to the acquisition of assets
from UGI. 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. Non-acquisition capital
expenditures were $530.1 million in fiscal 2024 and $587.9 million
in fiscal 2023, a decrease of $57.8 million.
(2) Capital expenditures for the quarter and year
ended September 30, 2024, include accounts payable and accrued
liabilities related to capital expenditures of $63.3 million, $14.4
million, $21.7 million, and $20.6 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,
2024, since they represent non-cash investing activities at that
date.
(3) Capital expenditures for the year ended
September 30, 2024, 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 year ended September 30, 2024. 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 September 30, 2024.
(4) 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.
|
|
|
|
|
|
|
|
|
|
DEGREE
DAYS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Colder |
|
|
|
|
|
|
|
(Warmer) Than: |
Three Months Ended
September 30, |
Normal |
|
2024 |
|
2023 |
|
Normal(1) |
|
Last Year(1) |
Buffalo, NY |
162 |
|
34 |
|
61 |
|
(79.0 |
) |
|
(44.3 |
) |
Erie, PA(2) |
78 |
|
23 |
|
59 |
|
(70.5 |
) |
|
(61.0 |
) |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
September 30, |
|
|
|
|
|
|
|
|
|
Buffalo, NY |
6,653 |
|
5,162 |
|
5,717 |
|
(22.4 |
) |
|
(9.7 |
) |
Erie, PA(2) |
5,805 |
|
4,782 |
|
5,493 |
|
(17.6 |
) |
|
(12.9 |
) |
|
|
|
|
|
|
|
|
|
|
(1) Percents compare actual 2024
degree days to normal degree days and actual 2024 degree days to
actual 2023 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 |
|
Twelve Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
|
2024 |
|
|
2023 |
|
(Decrease) |
|
|
2024 |
|
|
2023 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
Production (MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
|
91,902 |
|
|
93,709 |
|
|
(1,807 |
) |
|
|
392,047 |
|
|
372,271 |
|
|
19,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Mcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average |
|
$ |
1.73 |
|
$ |
1.99 |
|
$ |
(0.26 |
) |
|
$ |
1.88 |
|
$ |
2.78 |
|
$ |
(0.90 |
) |
Weighted Average after Hedging |
|
|
2.40 |
|
|
2.33 |
|
|
0.07 |
|
|
|
2.44 |
|
|
2.55 |
|
|
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Performance Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
General and Administrative
Expense per Mcf(1) |
|
$ |
0.20 |
|
$ |
0.18 |
|
$ |
0.02 |
|
|
$ |
0.18 |
|
$ |
0.18 |
|
$ |
— |
|
Lease Operating and
Transportation Expense per Mcf(1)(2) |
|
$ |
0.74 |
|
$ |
0.69 |
|
$ |
0.05 |
|
|
$ |
0.69 |
|
$ |
0.68 |
|
$ |
0.01 |
|
Depreciation, Depletion and
Amortization per Mcf(1) |
|
$ |
0.69 |
|
$ |
0.71 |
|
$ |
(0.02 |
) |
|
$ |
0.71 |
|
$ |
0.65 |
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Refer to page 16 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 $0.57
and $0.55 per Mcf for the three months ended September 30, 2024 and
September 30, 2023, respectively. Amounts include transportation
expense of $0.57 per Mcf for the twelve months ended September 30,
2024 and September 30, 2023.
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
Hedging Summary for
Fiscal 2025 |
|
Volume |
|
|
Average Hedge Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
127,030,000 |
MMBTU |
|
$ |
3.46 / MMBTU |
No Cost Collars |
|
57,085,000 |
MMBTU |
|
$ |
3.44 / MMBTU (Floor) / $4.54 / MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
80,398,595 |
MMBTU |
|
$ |
2.48 / MMBTU |
Total |
|
264,513,595 |
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2026 |
|
Volume |
|
|
Average Hedge Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
52,065,000 |
MMBTU |
|
$ |
3.84 / MMBTU |
No Cost Collars |
|
59,275,000 |
MMBTU |
|
$ |
3.45 / MMBTU (Floor) / $4.58 / MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
76,656,505 |
MMBTU |
|
$ |
2.44 / MMBTU |
Total |
|
187,996,505 |
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2027 |
|
Volume |
|
|
Average Hedge Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
36,810,000 |
MMBTU |
|
$ |
3.92 / MMBTU |
No Cost Collars |
|
14,120,000 |
MMBTU |
|
$ |
3.31 / MMBTU (Floor) / $4.19 / MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
59,128,595 |
MMBTU |
|
$ |
2.50 / MMBTU |
Total |
|
110,058,595 |
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2028 |
|
Volume |
|
|
Average Hedge Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
9,630,000 |
MMBTU |
|
$ |
3.67 / MMBTU |
No Cost Collars |
|
1,880,000 |
MMBTU |
|
$ |
3.26 / MMBTU (Floor) / $4.00 / MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
22,011,060 |
MMBTU |
|
$ |
2.68 / MMBTU |
Total |
|
33,521,060 |
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2029 |
|
Volume |
|
|
Average Hedge Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
1,500,000 |
MMBTU |
|
$ |
3.53 / MMBTU |
Fixed Price Physical
Sales |
|
7,050,570 |
MMBTU |
|
$ |
2.88 / MMBTU |
Total |
|
8,550,570 |
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2030 |
|
Volume |
|
|
Average Hedge Price |
Fixed Price Physical
Sales |
|
266,194 |
MMBTU |
|
$ |
2.92 / MMBTU |
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
|
|
|
|
|
Reserve Quantity Information |
(Unaudited) |
|
|
|
|
|
|
|
U.S. |
|
Appalachian Region |
|
Gas |
|
Oil |
|
Total |
|
(MMcf) |
|
(Mbbl) |
|
(MMcfe) |
Proved Developed and
Undeveloped Reserves: |
|
|
|
|
|
September 30, 2023 |
4,535,084 |
|
|
216 |
|
|
4,536,380 |
|
Extensions and
Discoveries |
601,679 |
|
|
— |
|
|
601,679 |
|
Revisions of Previous
Estimates |
7,046 |
|
|
8 |
|
|
7,092 |
|
Production |
(392,047 |
) |
|
(31 |
) |
|
(392,230 |
) |
September 30, 2024 |
4,751,762 |
|
|
193 |
|
|
4,752,921 |
|
|
|
|
|
|
|
Proved Developed
Reserves: |
|
|
|
|
|
September 30, 2023 |
3,550,034 |
|
|
216 |
|
|
3,551,330 |
|
September 30, 2024 |
3,484,852 |
|
|
193 |
|
|
3,486,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline
and Storage Throughput - (millions of cubic feet -
MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2024 |
|
2023 |
|
(Decrease) |
|
2024 |
|
2023 |
|
(Decrease) |
Firm Transportation - Affiliated |
|
16,412 |
|
17,589 |
|
(1,177 |
) |
|
108,845 |
|
126,500 |
|
(17,655 |
) |
Firm Transportation -
Non-Affiliated |
|
150,126 |
|
161,750 |
|
(11,624 |
) |
|
648,562 |
|
689,984 |
|
(41,422 |
) |
Interruptible
Transportation |
|
283 |
|
168 |
|
115 |
|
|
1,791 |
|
2,192 |
|
(401 |
) |
|
|
166,821 |
|
179,507 |
|
(12,686 |
) |
|
759,198 |
|
818,676 |
|
(59,478 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering Volume -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2024 |
|
2023 |
|
(Decrease) |
|
2024 |
|
2023 |
|
(Decrease) |
Gathered Volume |
|
112,856 |
|
117,260 |
|
(4,404 |
) |
|
480,688 |
|
453,338 |
|
27,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Throughput -
(MMcf) |
|
|
|
|
|
|
|