WILLIAMSVILLE, N.Y., Aug. 04, 2022 (GLOBE NEWSWIRE)
-- National Fuel Gas Company (“National Fuel” or the “Company”)
(NYSE:NFG) today announced consolidated results for the third
quarter of its 2022 fiscal year and for the nine months ended June
30, 2022.
FISCAL 2022 THIRD QUARTER
SUMMARY
- GAAP net income of
$108.2 million, or $1.17 per share, compared to GAAP net income of
$86.5 million, or $0.94 per share, in the prior year, an increase
of 24% per share.
- Adjusted operating
results of $141.9 million, or $1.54 per share, an increase of 66%,
compared to $0.93 per share, in the prior year (see non-GAAP
reconciliation on page 2).
- Adjusted EBITDA of
$318.1 million, an increase of 36%, compared to $234.2 million in
the prior year (see non-GAAP reconciliation on page 25).
- Successfully closed
the sale of the Company's California assets for net cash proceeds
of approximately $241 million, after customary closing adjustments,
and future contingent consideration with a potential value of up to
$30 million.
- Company is revising
its fiscal 2022 earnings guidance to a range of $5.85 to $5.95 per
share, excluding items impacting comparability, and initiating its
fiscal 2023 earnings guidance with a range of $7.25 to $7.75 per
share, an increase of 27% from fiscal 2022, at the midpoint (see
Guidance Summary on page 8).
MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive
Officer of National Fuel Gas Company, stated: “National Fuel had an
excellent third quarter, with adjusted operating results increasing
66% compared to the prior year. The benefits of our integrated
approach to development were evident during the quarter, with the
FM100 Project driving meaningful growth in our Pipeline and Storage
segment, while providing a valuable outlet for Seneca’s natural gas
production. Moreover, our coordinated approach to Appalachian
development, in which we own and operate 100% of our gathering
infrastructure, allowed us to maximize Seneca’s production during
the quarter, capitalizing on the further improved commodity price
environment.”
"As we look to next year, the Company is poised
for continued earnings growth and sustained free cash flow
generation. Underpinned by our highly-efficient Appalachian
development program, our valuable firm transportation portfolio,
and a strong natural gas price outlook, we expect to continue to
grow our natural gas production base, with our gathering business
growing in lockstep. This, coupled with our ongoing investment in
modernizing our resilient and reliable transmission, storage, and
distribution infrastructure, positions the Company to deliver value
through further earnings growth, deleveraging our balance sheet,
and the predictable return of an increasing amount of cash to
shareholders.”
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING
RESULTS
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
(in thousands except per share amounts) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Reported GAAP
Earnings |
|
$ |
108,158 |
|
|
$ |
86,475 |
|
|
$ |
407,879 |
|
|
$ |
276,685 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Items related to West Coast asset sale: |
|
|
|
|
|
|
|
|
Gain on sale of West Coast assets (E&P) |
|
|
(12,736 |
) |
|
|
— |
|
|
|
(12,736 |
) |
|
|
— |
|
Tax impact of gain on sale of West Coast assets |
|
|
3,225 |
|
|
|
— |
|
|
|
3,225 |
|
|
|
— |
|
Loss from discontinuance of crude oil cash flow hedges
(E&P) |
|
|
44,632 |
|
|
|
— |
|
|
|
44,632 |
|
|
|
— |
|
Tax impact of loss from discontinuance of crude oil cash
flow hedges |
|
|
(11,303 |
) |
|
|
— |
|
|
|
(11,303 |
) |
|
|
— |
|
Transaction and severance costs (E&P) |
|
|
9,693 |
|
|
|
— |
|
|
|
9,693 |
|
|
|
— |
|
Tax impact of transaction and severance costs |
|
|
(2,455 |
) |
|
|
— |
|
|
|
(2,455 |
) |
|
|
— |
|
Total items impacting comparability related to West Coast
asset sale |
|
|
31,056 |
|
|
|
— |
|
|
|
31,056 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Reduction of other post-retirement regulatory liability
(Utility) |
|
|
— |
|
|
|
— |
|
|
|
(18,533 |
) |
|
|
— |
|
Tax impact of reduction of other post-retirement regulatory
liability |
|
|
— |
|
|
|
— |
|
|
|
3,892 |
|
|
|
— |
|
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
|
3,434 |
|
|
|
(1,025 |
) |
|
|
10,093 |
|
|
|
(575 |
) |
Tax impact of unrealized (gain) loss on other investments |
|
|
(721 |
) |
|
|
215 |
|
|
|
(2,120 |
) |
|
|
120 |
|
Impairment of oil and gas properties (E&P) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,152 |
|
Tax impact of impairment of oil and gas properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(20,980 |
) |
Gain on sale of timber properties (Corporate / All Other) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51,066 |
) |
Tax impact of gain on sale of timber properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,069 |
|
Premium paid on early redemption of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,715 |
|
Tax impact of premium paid on early redemption of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,321 |
) |
Adjusted Operating
Results |
|
$ |
141,927 |
|
|
$ |
85,665 |
|
|
$ |
432,267 |
|
|
$ |
305,799 |
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
|
$ |
1.17 |
|
|
$ |
0.94 |
|
|
$ |
4.43 |
|
|
$ |
3.02 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Items related to West Coast asset sale: |
|
|
|
|
|
|
|
|
Gain on sale of West Coast assets, net of tax (E&P) |
|
|
(0.10 |
) |
|
|
— |
|
|
|
(0.10 |
) |
|
|
— |
|
Loss from discontinuance of crude oil cash flow hedges, net
of tax (E&P) |
|
|
0.36 |
|
|
|
— |
|
|
|
0.36 |
|
|
|
— |
|
Transaction and severance costs, net of tax (E&P) |
|
|
0.08 |
|
|
|
— |
|
|
|
0.08 |
|
|
|
— |
|
Total items impacting comparability related to West Coast
asset sale |
|
|
0.34 |
|
|
|
— |
|
|
|
0.34 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Reduction of other post-retirement regulatory liability, net of tax
(Utility) |
|
|
— |
|
|
|
— |
|
|
|
(0.16 |
) |
|
|
— |
|
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
|
|
0.03 |
|
|
|
(0.01 |
) |
|
|
0.08 |
|
|
|
— |
|
Impairment of oil and gas properties, net of tax (E&P) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.60 |
|
Gain on sale of timber properties, net of tax (Corporate / All
Other) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.40 |
) |
Premium paid on early redemption of debt, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.12 |
|
Adjusted Operating
Results Per Share |
|
$ |
1.54 |
|
|
$ |
0.93 |
|
|
$ |
4.69 |
|
|
$ |
3.34 |
|
DISCUSSION OF GUIDANCE UPDATE
National Fuel is revising its fiscal 2022
earnings guidance range and is now projecting earnings, excluding
items impacting comparability, will be within the range of $5.85 to
$5.95 per share. This updated range reflects the results of the
third quarter, along with updated assumptions for the balance of
the year, as detailed on page 8.
The Exploration and Production segment’s fiscal
2022 net production is expected to be in the range of 350 to 355
Bcfe, an increase of 2.5 Bcfe from the prior midpoint. Seneca
currently has firm sales contracts in place for approximately 90%
of its projected remaining fiscal 2022 natural gas production,
limiting its exposure to in-basin markets. Approximately 80% of
expected remaining Appalachian production is either matched by a
financial hedge or was entered into at a fixed price.
The Company is also initiating preliminary
guidance for fiscal 2023 with earnings projected to be within a
range of $7.25 to $7.75 per share, or $7.50 per share at the
midpoint of the range, an increase of 27% from the midpoint of the
fiscal 2022 guidance range. The anticipated increase in earnings is
being driven largely by higher anticipated commodity price
realizations, as well as forecasted growth in natural gas
production and the associated impact on Gathering revenues.
Seneca’s fiscal 2023 net production is
increasing to an expected range of 370 to 390 Bcfe, an increase of
27.5 Bcfe versus fiscal 2022 at the midpoint of the respective
guidance ranges. When adjusting for the sale of Seneca’s California
properties, fiscal 2023 production is expected to be 11% higher
than fiscal 2022, at the midpoint of the respective guidance
ranges.
In addition, the Company anticipates its natural
gas price realizations after hedging to increase by approximately
$0.62 per Mcf from its estimated fiscal 2022 realizations, driven
in large part by lower expected hedge losses. Overall, Seneca has
firm sales contracts in place for approximately 87% of its expected
fiscal 2023 natural gas production, limiting its exposure to
in-basin markets, while also having 67% supported by financial
hedges, limiting exposure to potential swings in natural gas prices
in fiscal 2023.
The Company’s consolidated capital expenditures
in fiscal 2023 are expected to be in a range of $830 million to
$940 million, an increase of $77.5 million versus the midpoint of
its fiscal 2022 guidance. This preliminary guidance range
incorporates planned activity, as described below, as well as
anticipated inflationary impacts across all segments.
The Exploration and Production segment expects
to maintain its current two-rig program for the entirety of fiscal
2023, and modestly increase completion activity relative to fiscal
2022. This increased level of completion activity is expected to be
coupled with a greater share of our development program targeting
the prolific Tioga County acreage. This will require incremental
near-term capital expenditures in the Gathering segment to build
out necessary infrastructure to support Seneca's growing production
in the region.
In the Company’s regulated Pipeline and Storage
and Utility segments, capital expenditures are primarily focused on
modernizing existing infrastructure, which is expected to drive
rate base growth in the range of 3% to 5%, on average over the next
several years. These modernization efforts continue to enhance the
safety and resiliency of our infrastructure and contribute to the
ongoing reduction in the Company’s emissions profile.
Additional details on the Company's updated
forecast assumptions and business segment guidance for fiscal 2022
and fiscal 2023 are outlined in the table on page 8.
DISCUSSION OF THIRD QUARTER RESULTS BY
SEGMENT
The following earnings discussion of each
operating segment for the quarter ended June 30, 2022 is summarized
in a tabular form on pages 9 and 10 of this report (earnings
drivers for the nine months ended June 30, 2022 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 natural gas
and oil reserves, primarily in Pennsylvania.
|
Three Months Ended |
|
June 30, |
(in thousands) |
|
2022 |
|
|
|
2021 |
|
Variance |
GAAP Earnings |
$ |
56,497 |
|
|
$ |
39,015 |
|
$ |
17,482 |
|
Gain on sale of West Coast
assets, net of tax |
|
(9,511 |
) |
|
|
— |
|
|
(9,511 |
) |
Loss from discontinuance of
crude oil cash flow hedges, net of tax |
|
33,329 |
|
|
|
— |
|
|
33,329 |
|
Transaction and severance costs related to West Coast asset sale,
net of tax |
|
7,238 |
|
|
|
— |
|
|
7,238 |
|
Adjusted Operating
Results |
$ |
87,553 |
|
|
$ |
39,015 |
|
$ |
48,538 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
184,622 |
|
|
$ |
116,052 |
|
$ |
68,570 |
|
Seneca’s third quarter GAAP earnings, which
increased $17.5 million versus the prior year, include several
items related to the sale of its California assets. In particular,
Seneca recorded a $12.7 million ($9.5 million after-tax) gain
related to assets that were not subject to the full cost method of
accounting. The Company also recorded a loss of $44.6 million
($33.3 million after-tax) related to the termination of its
remaining crude oil derivative contracts as a result of the sale.
In addition, the Company incurred transaction and severance costs
of $9.7 million ($7.2 million after-tax) related to the California
asset sale. Excluding these items noted above, Seneca’s earnings
increased $48.5 million primarily due to higher realized natural
gas and crude oil prices, higher natural gas production, and a
lower effective income tax rate, all of which were partially offset
by higher operating expenses and higher interest expense.
Seneca produced 92.4 Bcfe during the third
quarter, an increase of 9.4 Bcfe, or 11%, from the prior year. This
is a result of a 9.5 Bcf increase in natural gas production
primarily due to growth from Seneca's development program in
Appalachia. Seneca's crude oil production decreased 32 MBbls, or
6%, versus the prior year primarily due to natural production
decline in California.
Seneca's average realized natural gas price,
after the impact of hedging and transportation costs, was $2.87 per
Mcf, an increase of $0.67 per Mcf from the prior year. This
increase was primarily due to higher NYMEX prices and higher spot
prices at local sales points in Pennsylvania. Seneca's average
realized oil price, after the impact of hedging, was $77.65 per
Bbl, an increase of $18.43 per Bbl compared to the prior year.
Lease operating and transportation (“LOE”)
expense increased $12.8 million primarily due to higher
transportation costs in Appalachia as a result of increased
production, and higher steam fuel, labor, utilities, well repair
and workover expenses in California. LOE expense includes $53.1
million in intercompany expense for gathering and compression
services used to connect Seneca's Appalachian production to sales
points along interstate pipelines. Depreciation, depletion and
amortization ("DD&A") expense increased $9.3 million due to
higher natural gas production and a higher per unit DD&A rate,
which was driven by an increase in capitalized costs in Seneca's
full cost pool. Excluding the impact of the transaction and
severance costs related to the sale of Seneca's California assets
noted above, Seneca's other operating expenses increased $6.1
million due primarily to the accrual of estimated plugging and
abandonment expenses related to certain offshore Gulf of Mexico
wells that were formerly owned by the Company. Several years ago,
Seneca sold those wells to an operator that has since gone
bankrupt. As a result of that bankruptcy, the cost of abandoning
the wells will likely revert back to Seneca.
Interest expense increased $2.6 million due
primarily to a higher average amount of intercompany short-term
borrowings outstanding coupled with a higher weighted average
interest rate on such borrowings. The reduction in Seneca's
effective income tax rate was primarily driven by the realization
of the Enhanced Oil Recovery tax credit in fiscal 2022, which was
not available in the prior year.
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 |
|
June 30, |
(in thousands) |
|
2022 |
|
|
2021 |
|
Variance |
GAAP Earnings |
$ |
26,599 |
|
$ |
21,948 |
|
$ |
4,651 |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
62,565 |
|
$ |
53,086 |
|
$ |
9,479 |
The Pipeline and Storage segment’s third quarter
GAAP earnings increased $4.7 million versus the prior year
primarily due to an increase in operating revenues, partially
offset by higher operation and maintenance ("O&M") expense and
higher DD&A expense. The increase in operating revenues of
$11.5 million was primarily attributable to higher transportation
revenues from Supply Corporation's FM100 Project, which was placed
in service in December 2021. O&M expense increased $1.7 million
primarily due to an increase in personnel costs, as well as higher
vehicle fuel costs and compressor station maintenance costs. The
increase in DD&A expense of $1.7 million was primarily
attributable to incremental depreciation expense from the FM100
Project.
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 primarily delivers Seneca’s gross
Appalachian production to the interstate pipeline system.
|
Three Months Ended |
|
June 30, |
(in thousands) |
|
2022 |
|
|
2021 |
|
Variance |
GAAP Earnings |
$ |
24,658 |
|
$ |
20,427 |
|
$ |
4,231 |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
46,151 |
|
$ |
39,929 |
|
$ |
6,222 |
The Gathering segment’s third quarter GAAP
earnings increased $4.2 million versus the prior year primarily due
to higher operating revenues, which was partially offset by higher
O&M expense. Operating revenues increased $7.3 million, or 15%,
primarily driven by an 18.0 Bcf increase in gathered volumes from
new wells that were brought on-line in Appalachia. The increase in
O&M expense of $1.1 million was primarily due to an increase in
personnel costs, higher costs for materials, and an increase in
compressor station operating and preventative maintenance activity
during the quarter.
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 |
|
June 30, |
(in thousands) |
|
2022 |
|
|
2021 |
|
Variance |
GAAP Earnings |
$ |
4,622 |
|
$ |
4,841 |
|
$ |
(219 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
27,042 |
|
$ |
29,431 |
|
$ |
(2,389 |
) |
The Utility segment’s third quarter GAAP
earnings were essentially flat versus the prior year as the benefit
of higher customer margin (operating revenues less purchased gas
sold) and a decrease in non-service post-retirement benefit costs
recorded in other income (deductions) were offset by higher O&M
expense. The increase in customer margin was due primarily to
higher revenues from the Company's system modernization tracking
mechanism in its New York service territory, partially offset by a
reduction in base rates in Pennsylvania as a result of a rate
proceeding in Pennsylvania that concluded in the second quarter
whereby the Utility agreed to lower the amount of other
post-employment benefit (“OPEB”) expense it recovers in rates. With
the elimination of OPEB expenses in rates, there was also a
decrease in non-service post-retirement benefit costs recorded in
other income (deductions). The increase in O&M expense was
primarily attributable to higher personnel costs and an increase in
vehicle fuel costs.
Corporate and All Other
The Company’s operations that are included in
Corporate and All Other generated a combined net loss of $4.2
million in the current year third quarter, which was a $4.4 million
decrease from the combined earnings of $0.2 million generated in
the prior-year third quarter. The decrease in earnings was
primarily driven by unrealized losses on investment securities
recognized in the current quarter compared to unrealized gains on
investment securities in the prior-year third quarter.
EARNINGS TELECONFERENCE
The Company will host a conference call on
Friday, August 5, 2022, at 11 a.m. Eastern Time to discuss this
announcement. Pre-registration is required to access the
teleconference by phone in a listen-only mode by following this
link: https://conferencingportals.com/event/LUMnWUbV. To
access the webcast, visit the Events Calendar on the NFG Investor
Relations website at investor.nationalfuelgas.com. An audio replay
of the teleconference call will be available approximately two
hours following the teleconference at the same website link and by
phone at 800-770-2030 or 647-362-9199 using conference ID number
“99543”. Both the webcast and conference call replay will be
available until the close of business on Friday, August 12,
2022.
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 and
global, national or regional recessions, and their effect on the
demand for, and customers’ ability to pay for, the Company’s
products and services; changes in the price of natural gas; the
creditworthiness or performance of the Company’s key suppliers,
customers and counterparties; the length and severity of the
ongoing COVID-19 pandemic, including its impacts across our
businesses on demand, operations, global supply chains and
liquidity; financial and economic conditions, including the
availability of credit, and occurrences affecting the Company’s
ability to obtain financing on acceptable terms for working
capital, capital expenditures and other investments, including any
downgrades in the Company’s credit ratings and changes in interest
rates and other capital market conditions; impairments under the
SEC’s full cost ceiling test for natural gas reserves; increased
costs or delays or changes in plans with respect to Company
projects or related projects of other companies, including
disruptions due to the COVID-19 pandemic, as well as difficulties
or delays in obtaining necessary governmental approvals, permits or
orders or in obtaining the cooperation of interconnecting facility
operators; the Company's ability to complete planned strategic
transactions; the Company's ability to successfully integrate
acquired assets and achieve expected cost synergies; 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, title
disputes, weather conditions, shortages, delays or unavailability
of equipment and services required in drilling operations,
insufficient gathering, processing and transportation capacity, the
need to obtain governmental approvals and permits, and compliance
with environmental laws and regulations; increasing health care
costs and the resulting effect on health insurance premiums and on
the obligation to provide other post-retirement benefits; other
changes in price differentials between similar quantities of
natural gas having different quality, heating value, hydrocarbon
mix or delivery date; the cost and effects of legal and
administrative claims against the Company or activist shareholder
campaigns to effect changes at the Company; negotiations with the
collective bargaining units representing the Company's workforce,
including potential work stoppages during negotiations; uncertainty
of 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; 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 2022 and initiating guidance for
fiscal 2023. Additional details on the Company's forecast
assumptions and business segment guidance for fiscal 2022 and
fiscal 2023 are outlined in the table below.
The revised earnings guidance range does not
include the impact of certain items that impacted the comparability
of earnings during the nine months ended June 30, 2022, including:
(1) the after-tax gain on the sale of West Coast assets, which
increased earnings by $0.10 per share; (2) the after-tax loss from
the discontinuance of crude oil cash flow hedges, which reduced
earnings by $0.36 per share; (3) after-tax transaction and
severance costs related to the West Coast asset sale, which reduced
earnings by $0.08 per share; (4) the after-tax reduction of an
other post-retirement regulatory liability, which increased
earnings by $0.16 per share; and (5) after-tax unrealized losses on
other investments, which reduced earnings by $0.08 per share. While
the Company expects to record certain adjustments to unrealized
gain or loss on investments during the three months ending
September 30, 2022, 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.
|
Updated FY 2022 Guidance |
|
Preliminary FY 2023 Guidance |
Consolidated Earnings
per Share, excluding items impacting comparability |
$5.85 to $5.95 |
|
$7.25 to $7.75 |
Consolidated Effective
Tax Rate |
~ 25 - 25.5% |
|
~ 25.5 - 26% |
|
|
|
|
Capital
Expenditures (Millions) |
|
|
|
Exploration and
Production |
$525 - $550 |
|
$525 - $575 |
Pipeline and Storage |
$100 - $120 |
|
$110 - $130 |
Gathering |
$50 - $60 |
|
$85 - $105 |
Utility |
$100 - $110 |
|
$110 - $130 |
Consolidated Capital
Expenditures |
$775 - $840 |
|
$830 - $940 |
|
|
|
|
Exploration &
Production Segment Guidance* |
|
|
|
|
|
|
|
Commodity Price
Assumptions |
|
|
|
NYMEX natural gas price (Oct -
Mar | Apr - Sep) |
$7.75 /MMBtu |
|
$7.50 /MMBtu l $5.00 /MMBtu |
Appalachian basin spot price
(Oct - Mar | Apr - Sep) |
$7.20 /MMBtu |
|
$6.50 /MMBtu l $3.90 /MMBtu |
|
|
|
|
Production
(Bcfe) |
350 to 355 |
|
370 to 390 |
|
|
|
|
E&P Operating
Costs ($/Mcfe) |
|
|
|
LOE |
$0.70 - $0.71 |
|
$0.67 - $0.69 |
G&A |
~$0.18 |
|
$0.17 - $0.19 |
DD&A |
$0.57 - $0.59 |
|
$0.60 - $0.64 |
|
|
|
|
Other Business Segment
Guidance (Millions) |
|
|
|
Gathering Segment
Revenues |
$210 - $220 |
|
$235 - $250 |
Pipeline and Storage Segment
Revenues |
$365 - $375 |
|
$360 - $380 |
* Fiscal 2022 commodity price assumptions and
operating costs are for the remaining 3 months of the fiscal
year.
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
QUARTER ENDED JUNE 30, 2022 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2021 GAAP earnings |
$ |
39,015 |
|
|
$ |
21,948 |
|
|
$ |
20,427 |
|
|
$ |
4,841 |
|
|
$ |
244 |
|
|
$ |
86,475 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
|
(1,025 |
) |
|
|
(1,025 |
) |
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
|
215 |
|
|
|
215 |
|
Third quarter 2021
adjusted operating results |
|
39,015 |
|
|
|
21,948 |
|
|
|
20,427 |
|
|
|
4,841 |
|
|
|
(566 |
) |
|
|
85,665 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
16,589 |
|
|
|
|
|
|
|
|
|
|
|
16,589 |
|
Higher (lower) crude oil
production |
|
(1,499 |
) |
|
|
|
|
|
|
|
|
|
|
(1,499 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
47,404 |
|
|
|
|
|
|
|
|
|
|
|
47,404 |
|
Higher (lower) realized crude
oil prices, after hedging |
|
7,663 |
|
|
|
|
|
|
|
|
|
|
|
7,663 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
9,174 |
|
|
|
5,747 |
|
|
|
|
|
|
|
14,921 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and weather |
|
|
|
|
|
|
|
232 |
|
|
|
|
|
232 |
|
Impact of new rates |
|
|
|
|
|
|
|
(1,105 |
) |
|
|
|
|
(1,105 |
) |
System modernization tracker
revenues |
|
|
|
|
|
|
|
1,345 |
|
|
|
|
|
1,345 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(10,129 |
) |
|
|
|
|
|
|
|
|
|
|
(10,129 |
) |
Lower (higher) operating
expenses |
|
(4,806 |
) |
|
|
(1,360 |
) |
|
|
(833 |
) |
|
|
(2,629 |
) |
|
|
1,616 |
|
|
|
(8,012 |
) |
Lower (higher) depreciation /
depletion |
|
(7,308 |
) |
|
|
(1,353 |
) |
|
|
|
|
|
|
|
|
(8,661 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
|
|
|
|
|
|
1,938 |
|
|
|
(1,781 |
) |
|
|
157 |
|
(Higher) lower interest
expense |
|
(2,039 |
) |
|
|
(587 |
) |
|
|
|
|
(508 |
) |
|
|
965 |
|
|
|
(2,169 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
3,267 |
|
|
|
(658 |
) |
|
|
(317 |
) |
|
|
388 |
|
|
|
(1,715 |
) |
|
|
965 |
|
All other / rounding |
|
(604 |
) |
|
|
(565 |
) |
|
|
(366 |
) |
|
|
120 |
|
|
|
(24 |
) |
|
|
(1,439 |
) |
Third quarter 2022
adjusted operating results |
|
87,553 |
|
|
|
26,599 |
|
|
|
24,658 |
|
|
|
4,622 |
|
|
|
(1,505 |
) |
|
|
141,927 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of West Coast
assets |
|
12,736 |
|
|
|
|
|
|
|
|
|
|
|
12,736 |
|
Tax impact of gain on sale of
West Coast assets |
|
(3,225 |
) |
|
|
|
|
|
|
|
|
|
|
(3,225 |
) |
Loss from discontinuance of
crude oil cash flow hedges |
|
(44,632 |
) |
|
|
|
|
|
|
|
|
|
|
(44,632 |
) |
Tax impact of loss from discontinuance of crude oil cash flow
hedges |
|
11,303 |
|
|
|
|
|
|
|
|
|
|
|
11,303 |
|
Transaction and severance
costs related to West Coast asset sale |
|
(9,693 |
) |
|
|
|
|
|
|
|
|
|
|
(9,693 |
) |
Tax impact of transaction and severance costs related to West Coast
asset sale |
|
2,455 |
|
|
|
|
|
|
|
|
|
|
|
2,455 |
|
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
(3,434 |
) |
|
|
(3,434 |
) |
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
721 |
|
|
|
721 |
|
Third quarter 2022
GAAP earnings |
$ |
56,497 |
|
|
$ |
26,599 |
|
|
$ |
24,658 |
|
|
$ |
4,622 |
|
|
$ |
(4,218 |
) |
|
$ |
108,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 JUNE 30, 2022 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2021 GAAP earnings per share |
$ |
0.43 |
|
|
$ |
0.24 |
|
|
$ |
0.22 |
|
|
$ |
0.05 |
|
|
$ |
— |
|
|
$ |
0.94 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Third quarter 2021
adjusted operating results per share |
|
0.43 |
|
|
|
0.24 |
|
|
|
0.22 |
|
|
|
0.05 |
|
|
|
(0.01 |
) |
|
|
0.93 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
0.18 |
|
|
|
|
|
|
|
|
|
|
|
0.18 |
|
Higher (lower) crude oil
production |
|
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
(0.02 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
0.51 |
|
|
|
|
|
|
|
|
|
|
|
0.51 |
|
Higher (lower) realized crude
oil prices, after hedging |
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
0.08 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
0.10 |
|
|
|
0.06 |
|
|
|
|
|
|
|
0.16 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
— |
|
|
|
|
|
— |
|
Impact of new rates |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
(0.01 |
) |
System modernization tracker
revenues |
|
|
|
|
|
|
|
0.01 |
|
|
|
|
|
0.01 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
(0.11 |
) |
Lower (higher) operating
expenses |
|
(0.05 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
0.02 |
|
|
|
(0.08 |
) |
Lower (higher) depreciation /
depletion |
|
(0.08 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
(0.09 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
|
|
|
|
|
|
0.02 |
|
|
|
(0.02 |
) |
|
|
— |
|
(Higher) lower interest
expense |
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.03 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
0.04 |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.02 |
) |
|
|
0.01 |
|
All other / rounding |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Third quarter 2022
adjusted operating results per share |
|
0.95 |
|
|
|
0.29 |
|
|
|
0.27 |
|
|
|
0.05 |
|
|
|
(0.02 |
) |
|
|
1.54 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of West Coast
assets, net of tax |
|
0.10 |
|
|
|
|
|
|
|
|
|
|
|
0.10 |
|
Loss from discontinuance of
crude oil cash flow hedges, net of tax |
|
(0.36 |
) |
|
|
|
|
|
|
|
|
|
|
(0.36 |
) |
Transaction and severance
costs related to West Coast asset sale, net of tax |
|
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
(0.08 |
) |
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
(0.03 |
) |
|
|
(0.03 |
) |
Third quarter 2022
GAAP earnings per share |
$ |
0.61 |
|
|
$ |
0.29 |
|
|
$ |
0.27 |
|
|
$ |
0.05 |
|
|
$ |
(0.05 |
) |
|
$ |
1.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect
intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
NINE MONTHS ENDED JUNE 30, 2022 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended June 30, 2021 GAAP earnings |
$ |
46,213 |
|
|
$ |
71,060 |
|
|
$ |
61,677 |
|
|
$ |
59,922 |
|
|
$ |
37,813 |
|
|
$ |
276,685 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas
properties |
|
76,152 |
|
|
|
|
|
|
|
|
|
|
|
76,152 |
|
Tax impact of impairment of
oil and gas properties |
|
(20,980 |
) |
|
|
|
|
|
|
|
|
|
|
(20,980 |
) |
Gain on sale of timber
properties |
|
|
|
|
|
|
|
|
|
(51,066 |
) |
|
|
(51,066 |
) |
Tax impact of gain on sale of
timber properties |
|
|
|
|
|
|
|
|
|
14,069 |
|
|
|
14,069 |
|
Premium paid on early
redemption of debt |
|
14,772 |
|
|
|
|
|
943 |
|
|
|
|
|
|
|
15,715 |
|
Tax impact of premium paid on
early redemption of debt |
|
(4,062 |
) |
|
|
|
|
(259 |
) |
|
|
|
|
|
|
(4,321 |
) |
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
|
(575 |
) |
|
|
(575 |
) |
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
|
120 |
|
|
|
120 |
|
Nine months ended June
30, 2021 adjusted operating results |
|
112,095 |
|
|
|
71,060 |
|
|
|
62,361 |
|
|
|
59,922 |
|
|
|
361 |
|
|
|
305,799 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
30,188 |
|
|
|
|
|
|
|
|
|
|
|
30,188 |
|
Higher (lower) crude oil
production |
|
(3,787 |
) |
|
|
|
|
|
|
|
|
|
|
(3,787 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
93,251 |
|
|
|
|
|
|
|
|
|
|
|
93,251 |
|
Higher (lower) realized crude
oil prices, after hedging |
|
19,312 |
|
|
|
|
|
|
|
|
|
|
|
19,312 |
|
Higher (lower) other operating
revenues |
|
4,772 |
|
|
|
|
|
|
|
|
|
|
|
4,772 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
15,550 |
|
|
|
11,717 |
|
|
|
|
|
|
|
27,267 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
3,194 |
|
|
|
|
|
3,194 |
|
Impact of new rates |
|
|
|
|
|
|
|
(5,945 |
) |
|
|
|
|
(5,945 |
) |
System modernization tracker
revenues |
|
|
|
|
|
|
|
3,719 |
|
|
|
|
|
3,719 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
(1,047 |
) |
|
|
|
|
(1,047 |
) |
Higher (lower) energy
marketing margins |
|
|
|
|
|
|
|
|
|
1,301 |
|
|
|
1,301 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(17,314 |
) |
|
|
|
|
|
|
|
|
|
|
(17,314 |
) |
Lower (higher) operating
expenses |
|
(7,841 |
) |
|
|
(5,878 |
) |
|
|
(2,180 |
) |
|
|
(4,542 |
) |
|
|
1,756 |
|
|
|
(18,685 |
) |
Lower (higher) property,
franchise and other taxes |
|
(3,136 |
) |
|
|
(751 |
) |
|
|
|
|
|
|
|
|
(3,887 |
) |
Lower (higher) depreciation /
depletion |
|
(14,089 |
) |
|
|
(2,853 |
) |
|
|
(957 |
) |
|
|
|
|
|
|
(17,899 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
|
|
710 |
|
|
|
|
|
8,828 |
|
|
|
(1,875 |
) |
|
|
7,663 |
|
(Higher) lower interest
expense |
|
3,176 |
|
|
|
|
|
|
|
(679 |
) |
|
|
|
|
2,497 |
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
3,833 |
|
|
|
(436 |
) |
|
|
(1,019 |
) |
|
|
1,243 |
|
|
|
(2,943 |
) |
|
|
678 |
|
All other / rounding |
|
583 |
|
|
|
(166 |
) |
|
|
(35 |
) |
|
|
466 |
|
|
|
342 |
|
|
|
1,190 |
|
Nine months ended June
30, 2022 adjusted operating results |
|
221,043 |
|
|
|
77,236 |
|
|
|
69,887 |
|
|
|
65,159 |
|
|
|
(1,058 |
) |
|
|
432,267 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Reduction of other
post-retirement regulatory liability |
|
|
|
|
|
|
|
18,533 |
|
|
|
|
|
18,533 |
|
Tax impact of reduction of
other post-retirement regulatory liability |
|
|
|
|
|
|
|
(3,892 |
) |
|
|
|
|
(3,892 |
) |
Gain on sale of West Coast
assets |
|
12,736 |
|
|
|
|
|
|
|
|
|
|
|
12,736 |
|
Tax impact of gain on sale of
West Coast assets |
|
(3,225 |
) |
|
|
|
|
|
|
|
|
|
|
(3,225 |
) |
Loss from discontinuance of
crude oil cash flow hedges |
|
(44,632 |
) |
|
|
|
|
|
|
|
|
|
|
(44,632 |
) |
Tax impact of loss from
discontinuance of crude oil cash flow hedges |
|
11,303 |
|
|
|
|
|
|
|
|
|
|
|
11,303 |
|
Transaction and severance
costs related to West Coast asset sale |
|
(9,693 |
) |
|
|
|
|
|
|
|
|
|
|
(9,693 |
) |
Tax impact of transaction and
severance costs related to West Coast asset sale |
|
2,455 |
|
|
|
|
|
|
|
|
|
|
|
2,455 |
|
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
(10,093 |
) |
|
|
(10,093 |
) |
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
2,120 |
|
|
|
2,120 |
|
Nine months ended June
30, 2022 GAAP earnings |
$ |
189,987 |
|
|
$ |
77,236 |
|
|
$ |
69,887 |
|
|
$ |
79,800 |
|
|
$ |
(9,031 |
) |
|
$ |
407,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 |
NINE MONTHS ENDED JUNE 30, 2022 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
Nine months ended June 30, 2021 GAAP earnings per
share |
$ |
0.50 |
|
|
$ |
0.78 |
|
|
$ |
0.67 |
|
|
$ |
0.65 |
|
|
$ |
0.42 |
|
|
$ |
3.02 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas
properties, net of tax |
|
0.60 |
|
|
|
|
|
|
|
|
|
|
|
0.60 |
|
Gain on sale of timber
properties, net of tax |
|
|
|
|
|
|
|
|
|
(0.40 |
) |
|
|
(0.40 |
) |
Premium paid on early
redemption of debt, net of tax |
|
0.12 |
|
|
|
|
|
— |
|
|
|
|
|
|
|
0.12 |
|
Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
Rounding |
|
|
|
|
|
0.01 |
|
|
|
|
|
(0.01 |
) |
|
|
— |
|
Nine months ended June
30, 2021 adjusted operating results per share |
|
1.22 |
|
|
|
0.78 |
|
|
|
0.68 |
|
|
|
0.65 |
|
|
|
0.01 |
|
|
|
3.34 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
0.33 |
|
|
|
|
|
|
|
|
|
|
|
0.33 |
|
Higher (lower) crude oil
production |
|
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
(0.04 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
1.01 |
|
|
|
|
|
|
|
|
|
|
|
1.01 |
|
Higher (lower) realized crude
oil prices, after hedging |
|
0.21 |
|
|
|
|
|
|
|
|
|
|
|
0.21 |
|
Higher (lower) other operating
revenues |
|
0.05 |
|
|
|
|
|
|
|
|
|
|
|
0.05 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
0.17 |
|
|
|
0.13 |
|
|
|
|
|
|
|
0.30 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
0.03 |
|
|
|
|
|
0.03 |
|
Impact of new rates |
|
|
|
|
|
|
|
(0.06 |
) |
|
|
|
|
(0.06 |
) |
System modernization tracker
revenues |
|
|
|
|
|
|
|
0.04 |
|
|
|
|
|
0.04 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
(0.01 |
) |
Higher (lower) energy
marketing margins |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.01 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(0.19 |
) |
|
|
|
|
|
|
|
|
|
|
(0.19 |
) |
Lower (higher) operating
expenses |
|
(0.09 |
) |
|
|
(0.06 |
) |
|
|
(0.02 |
) |
|
|
(0.05 |
) |
|
|
0.02 |
|
|
|
(0.20 |
) |
Lower (higher) property,
franchise and other taxes |
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
(0.04 |
) |
Lower (higher) depreciation /
depletion |
|
(0.15 |
) |
|
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
(0.19 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
|
|
0.01 |
|
|
|
|
|
0.10 |
|
|
|
(0.02 |
) |
|
|
0.09 |
|
(Higher) lower interest
expense |
|
0.03 |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
0.02 |
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
0.04 |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.03 |
) |
|
|
0.01 |
|
All other / rounding |
|
0.01 |
|
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
(0.02 |
) |
Nine months ended June
30, 2022 adjusted operating results per share |
|
2.40 |
|
|
|
0.84 |
|
|
|
0.76 |
|
|
|
0.71 |
|
|
|
(0.02 |
) |
|
|
4.69 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Reduction of other
post-retirement regulatory liability, net of tax |
|
|
|
|
|
|
|
0.16 |
|
|
|
|
|
0.16 |
|
Gain on sale of West Coast
assets, net of tax |
|
0.10 |
|
|
|
|
|
|
|
|
|
|
|
0.10 |
|
Loss from discontinuance of
crude oil cash flow hedges, net of tax |
|
(0.36 |
) |
|
|
|
|
|
|
|
|
|
|
(0.36 |
) |
Transaction and severance
costs related to West Coast asset sale, net of tax |
|
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
(0.08 |
) |
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
(0.08 |
) |
|
|
(0.08 |
) |
Nine months ended June
30, 2022 GAAP earnings per share |
$ |
2.06 |
|
|
$ |
0.84 |
|
|
$ |
0.76 |
|
|
$ |
0.87 |
|
|
$ |
(0.10 |
) |
|
$ |
4.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
|
(Unaudited) |
|
(Unaudited) |
SUMMARY OF OPERATIONS |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating Revenues: |
|
|
|
|
|
|
|
Utility and Energy Marketing Revenues |
$ |
179,888 |
|
|
$ |
126,933 |
|
|
$ |
785,664 |
|
|
$ |
587,247 |
|
Exploration and Production and Other Revenues |
|
252,638 |
|
|
|
209,618 |
|
|
|
758,594 |
|
|
|
621,933 |
|
Pipeline and Storage and Gathering Revenues |
|
70,098 |
|
|
|
57,846 |
|
|
|
206,642 |
|
|
|
177,491 |
|
|
|
502,624 |
|
|
|
394,397 |
|
|
|
1,750,900 |
|
|
|
1,386,671 |
|
Operating Expenses: |
|
|
|
|
|
|
|
Purchased Gas |
|
67,948 |
|
|
|
18,737 |
|
|
|
369,168 |
|
|
|
177,018 |
|
Operation and Maintenance: |
|
|
|
|
|
|
|
Utility and Energy Marketing |
|
46,403 |
|
|
|
42,577 |
|
|
|
146,523 |
|
|
|
139,521 |
|
Exploration and Production and Other |
|
64,593 |
|
|
|
43,112 |
|
|
|
160,016 |
|
|
|
127,033 |
|
Pipeline and Storage and Gathering |
|
33,988 |
|
|
|
31,239 |
|
|
|
97,434 |
|
|
|
87,471 |
|
Property, Franchise and Other Taxes |
|
25,874 |
|
|
|
24,492 |
|
|
|
78,093 |
|
|
|
71,259 |
|
Depreciation, Depletion and Amortization |
|
95,857 |
|
|
|
84,170 |
|
|
|
275,681 |
|
|
|
251,632 |
|
Impairment of Oil and Gas Producing Properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,152 |
|
|
|
334,663 |
|
|
|
244,327 |
|
|
|
1,126,915 |
|
|
|
930,086 |
|
Gain on Sale of Assets |
|
12,736 |
|
|
|
— |
|
|
|
12,736 |
|
|
|
51,066 |
|
Operating Income |
|
180,697 |
|
|
|
150,070 |
|
|
|
636,721 |
|
|
|
507,651 |
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
Other Income (Deductions) |
|
(5,649 |
) |
|
|
(2,028 |
) |
|
|
3,291 |
|
|
|
(15,078 |
) |
Interest Expense on Long-Term Debt |
|
(30,091 |
) |
|
|
(30,220 |
) |
|
|
(90,300 |
) |
|
|
(111,296 |
) |
Other Interest Expense |
|
(3,882 |
) |
|
|
(1,012 |
) |
|
|
(6,561 |
) |
|
|
(4,630 |
) |
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
|
141,075 |
|
|
|
116,810 |
|
|
|
543,151 |
|
|
|
376,647 |
|
|
|
|
|
|
|
|
|
Income Tax Expense |
|
32,917 |
|
|
|
30,335 |
|
|
|
135,272 |
|
|
|
99,962 |
|
|
|
|
|
|
|
|
|
Net Income Available for
Common Stock |
$ |
108,158 |
|
|
$ |
86,475 |
|
|
$ |
407,879 |
|
|
$ |
276,685 |
|
|
|
|
|
|
|
|
|
Earnings Per Common Share |
|
|
|
|
|
|
|
Basic |
$ |
1.18 |
|
|
$ |
0.95 |
|
|
$ |
4.46 |
|
|
$ |
3.04 |
|
Diluted |
$ |
1.17 |
|
|
$ |
0.94 |
|
|
$ |
4.43 |
|
|
$ |
3.02 |
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares: |
|
|
|
|
|
|
|
Used in Basic Calculation |
|
91,456,265 |
|
|
|
91,172,683 |
|
|
|
91,388,417 |
|
|
|
91,113,973 |
|
Used in Diluted
Calculation |
|
92,168,518 |
|
|
|
91,762,898 |
|
|
|
92,083,560 |
|
|
|
91,642,849 |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
|
|
|
June 30, |
|
September 30, |
(Thousands of Dollars) |
|
2022 |
|
|
|
2021 |
|
ASSETS |
|
|
|
Property, Plant and
Equipment |
$ |
12,299,545 |
|
|
$ |
13,103,639 |
|
Less -
Accumulated Depreciation, Depletion and Amortization |
|
5,914,097 |
|
|
|
6,719,356 |
|
Net Property, Plant and Equipment |
|
6,385,448 |
|
|
|
6,384,283 |
|
Current Assets: |
|
|
|
Cash and Temporary Cash
Investments |
|
432,576 |
|
|
|
31,528 |
|
Hedging Collateral
Deposits |
|
154,470 |
|
|
|
88,610 |
|
Receivables - Net |
|
399,033 |
|
|
|
205,294 |
|
Unbilled Revenue |
|
18,525 |
|
|
|
17,000 |
|
Gas Stored Underground |
|
12,336 |
|
|
|
33,669 |
|
Materials, Supplies and
Emission Allowances |
|
39,634 |
|
|
|
53,560 |
|
Unrecovered Purchased Gas
Costs |
|
32,412 |
|
|
|
33,128 |
|
Other Current Assets |
|
61,359 |
|
|
|
59,660 |
|
Total Current Assets |
|
1,150,345 |
|
|
|
522,449 |
|
Other Assets: |
|
|
|
Recoverable Future Taxes |
|
125,576 |
|
|
|
121,992 |
|
Unamortized Debt Expense |
|
9,308 |
|
|
|
10,589 |
|
Other Regulatory Assets |
|
58,075 |
|
|
|
60,145 |
|
Deferred Charges |
|
77,542 |
|
|
|
59,939 |
|
Other Investments |
|
96,566 |
|
|
|
149,632 |
|
Goodwill |
|
5,476 |
|
|
|
5,476 |
|
Prepaid Pension and
Post-Retirement Benefit Costs |
|
187,692 |
|
|
|
149,151 |
|
Fair Value of Derivative
Financial Instruments |
|
12,571 |
|
|
|
— |
|
Other |
|
3,487 |
|
|
|
1,169 |
|
Total Other Assets |
|
576,293 |
|
|
|
558,093 |
|
Total Assets |
$ |
8,112,086 |
|
|
$ |
7,464,825 |
|
CAPITALIZATION AND LIABILITIES |
|
|
|
Capitalization: |
|
|
|
Comprehensive Shareholders'
Equity |
|
|
|
Common Stock, $1 Par Value
Authorized - 200,000,000 Shares; Issued and |
|
|
|
Outstanding - 91,465,569
Shares and 91,181,549 Shares, Respectively |
$ |
91,466 |
|
|
$ |
91,182 |
|
Paid in Capital |
|
1,022,954 |
|
|
|
1,017,446 |
|
Earnings Reinvested in the
Business |
|
1,472,395 |
|
|
|
1,191,175 |
|
Accumulated Other Comprehensive Loss |
|
(582,868 |
) |
|
|
(513,597 |
) |
Total Comprehensive Shareholders' Equity |
|
2,003,947 |
|
|
|
1,786,206 |
|
Long-Term Debt, Net of Current Portion and Unamortized Discount and
Debt Issuance Costs |
|
2,082,463 |
|
|
|
2,628,687 |
|
Total Capitalization |
|
4,086,410 |
|
|
|
4,414,893 |
|
Current and Accrued Liabilities: |
|
|
|
Notes Payable to Banks and
Commercial Paper |
|
400,000 |
|
|
|
158,500 |
|
Current Portion of Long-Term
Debt |
|
549,000 |
|
|
|
— |
|
Accounts Payable |
|
145,320 |
|
|
|
171,655 |
|
Amounts Payable to
Customers |
|
292 |
|
|
|
21 |
|
Dividends Payable |
|
43,446 |
|
|
|
41,487 |
|
Interest Payable on Long-Term
Debt |
|
45,017 |
|
|
|
17,376 |
|
Customer Advances |
|
— |
|
|
|
17,223 |
|
Customer Security
Deposits |
|
25,200 |
|
|
|
19,292 |
|
Other Accruals and Current
Liabilities |
|
254,383 |
|
|
|
194,169 |
|
Fair
Value of Derivative Financial Instruments |
|
703,788 |
|
|
|
616,410 |
|
Total Current and Accrued Liabilities |
|
2,166,446 |
|
|
|
1,236,133 |
|
Other Liabilities: |
|
|
|
Deferred Income Taxes |
|
767,207 |
|
|
|
660,420 |
|
Taxes Refundable to
Customers |
|
346,577 |
|
|
|
354,089 |
|
Cost of Removal Regulatory
Liability |
|
256,092 |
|
|
|
245,636 |
|
Other Regulatory
Liabilities |
|
199,094 |
|
|
|
200,643 |
|
Pension and Other
Post-Retirement Liabilities |
|
4,732 |
|
|
|
7,526 |
|
Asset Retirement
Obligations |
|
152,100 |
|
|
|
209,639 |
|
Other
Liabilities |
|
133,428 |
|
|
|
135,846 |
|
Total Other Liabilities |
|
1,859,230 |
|
|
|
1,813,799 |
|
Commitments and Contingencies |
|
— |
|
|
|
— |
|
Total Capitalization and Liabilities |
$ |
8,112,086 |
|
|
$ |
7,464,825 |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
|
Nine Months Ended |
|
|
June 30, |
(Thousands of Dollars) |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
Operating Activities: |
|
|
|
|
Net Income Available for
Common Stock |
|
$ |
407,879 |
|
|
$ |
276,685 |
|
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities: |
|
|
|
|
Gain on Sale of Assets |
|
|
(12,736 |
) |
|
|
(51,066 |
) |
Impairment of Oil and Gas Producing Properties |
|
|
— |
|
|
|
76,152 |
|
Depreciation, Depletion and Amortization |
|
|
275,681 |
|
|
|
251,632 |
|
Deferred Income Taxes |
|
|
121,150 |
|
|
|
89,277 |
|
Premium Paid on Early Redemption of Debt |
|
|
— |
|
|
|
15,715 |
|
Stock-Based Compensation |
|
|
15,178 |
|
|
|
12,296 |
|
Reduction of Other Post-Retirement Regulatory Liability |
|
|
(18,533 |
) |
|
|
— |
|
Other |
|
|
27,527 |
|
|
|
7,795 |
|
Change in: |
|
|
|
|
Receivables and Unbilled Revenue |
|
|
(194,832 |
) |
|
|
(40,733 |
) |
Gas Stored Underground and Materials, Supplies and Emission
Allowances |
|
|
24,141 |
|
|
|
19,024 |
|
Unrecovered Purchased Gas Costs |
|
|
716 |
|
|
|
— |
|
Other Current Assets |
|
|
(1,699 |
) |
|
|
(4,282 |
) |
Accounts Payable |
|
|
19,259 |
|
|
|
7,474 |
|
Amounts Payable to Customers |
|
|
271 |
|
|
|
(3,595 |
) |
Customer Advances |
|
|
(17,223 |
) |
|
|
(15,319 |
) |
Customer Security Deposits |
|
|
5,908 |
|
|
|
2,073 |
|
Other Accruals and Current Liabilities |
|
|
61,322 |
|
|
|
23,154 |
|
Other Assets |
|
|
(44,184 |
) |
|
|
5,839 |
|
Other Liabilities |
|
|
(15,809 |
) |
|
|
(311 |
) |
Net Cash Provided by Operating Activities |
|
$ |
654,016 |
|
|
$ |
671,810 |
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
Capital Expenditures |
|
$ |
(592,487 |
) |
|
$ |
(512,775 |
) |
Net Proceeds from Sale of Oil
and Gas Producing Properties |
|
|
254,439 |
|
|
|
— |
|
Net Proceeds from Sale of
Timber Properties |
|
|
— |
|
|
|
104,582 |
|
Sale of Fixed Income Mutual
Fund Shares in Grantor Trust |
|
|
30,000 |
|
|
|
— |
|
Other |
|
|
13,528 |
|
|
|
11,223 |
|
Net Cash Used in Investing Activities |
|
$ |
(294,520 |
) |
|
$ |
(396,970 |
) |
|
|
|
|
|
Financing Activities: |
|
|
|
|
Changes in Notes Payable to
Banks and Commercial Paper |
|
$ |
241,500 |
|
|
$ |
(30,000 |
) |
Reduction of Long-Term
Debt |
|
|
— |
|
|
|
(515,715 |
) |
Dividends Paid on Common
Stock |
|
|
(124,701 |
) |
|
|
(121,606 |
) |
Net Proceeds From Issuance of
Long-Term Debt |
|
|
— |
|
|
|
495,267 |
|
Net
Repurchases of Common Stock |
|
|
(9,387 |
) |
|
|
(3,605 |
) |
Net Cash Provided by (Used in) Financing
Activities |
|
$ |
107,412 |
|
|
$ |
(175,659 |
) |
|
|
|
|
|
Net Increase in Cash, Cash
Equivalents, and Restricted Cash |
|
|
466,908 |
|
|
|
99,181 |
|
Cash,
Cash Equivalents, and Restricted Cash at Beginning of Period |
|
|
120,138 |
|
|
|
20,541 |
|
Cash, Cash Equivalents, and Restricted Cash at June 30 |
|
$ |
587,046 |
|
|
$ |
119,722 |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
UPSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
EXPLORATION AND
PRODUCTION SEGMENT |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Total Operating Revenues |
$ |
252,638 |
|
|
$ |
209,535 |
|
|
$ |
43,103 |
|
|
$ |
758,428 |
|
$ |
621,116 |
|
$ |
137,312 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
|
General and Administrative Expense |
|
26,844 |
|
|
|
16,165 |
|
|
|
10,679 |
|
|
|
63,396 |
|
|
51,017 |
|
|
12,379 |
|
Lease Operating and Transportation Expense |
|
79,529 |
|
|
|
66,708 |
|
|
|
12,821 |
|
|
|
221,213 |
|
|
199,296 |
|
|
21,917 |
|
All Other Operation and Maintenance Expense |
|
8,854 |
|
|
|
3,757 |
|
|
|
5,097 |
|
|
|
18,183 |
|
|
10,944 |
|
|
7,239 |
|
Property, Franchise and Other Taxes |
|
7,114 |
|
|
|
6,853 |
|
|
|
261 |
|
|
|
19,888 |
|
|
15,918 |
|
|
3,970 |
|
Depreciation, Depletion and Amortization |
|
55,136 |
|
|
|
45,886 |
|
|
|
9,250 |
|
|
|
155,190 |
|
|
137,356 |
|
|
17,834 |
|
Impairment of Oil and Gas Producing Properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
76,152 |
|
|
(76,152 |
) |
|
|
177,477 |
|
|
|
139,369 |
|
|
|
38,108 |
|
|
|
477,870 |
|
|
490,683 |
|
|
(12,813 |
) |
Gain on Sale of Assets |
|
12,736 |
|
|
|
— |
|
|
|
12,736 |
|
|
|
12,736 |
|
|
— |
|
|
12,736 |
|
Operating Income |
|
87,897 |
|
|
|
70,166 |
|
|
|
17,731 |
|
|
|
293,294 |
|
|
130,433 |
|
|
162,861 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(186 |
) |
|
|
(289 |
) |
|
|
103 |
|
|
|
(558 |
) |
|
(860 |
) |
|
302 |
|
Interest and Other Income |
|
482 |
|
|
|
18 |
|
|
|
464 |
|
|
|
613 |
|
|
176 |
|
|
437 |
|
Interest Expense on Long-Term Debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(15,119 |
) |
|
15,119 |
|
Interest Expense |
|
(14,589 |
) |
|
|
(12,008 |
) |
|
|
(2,581 |
) |
|
|
(38,927 |
) |
|
(42,601 |
) |
|
3,674 |
|
Income Before Income
Taxes |
|
73,604 |
|
|
|
57,887 |
|
|
|
15,717 |
|
|
|
254,422 |
|
|
72,029 |
|
|
182,393 |
|
Income Tax Expense |
|
17,107 |
|
|
|
18,872 |
|
|
|
(1,765 |
) |
|
|
64,435 |
|
|
25,816 |
|
|
38,619 |
|
Net Income |
$ |
56,497 |
|
|
$ |
39,015 |
|
|
$ |
17,482 |
|
|
$ |
189,987 |
|
$ |
46,213 |
|
$ |
143,774 |
|
Net Income Per Share
(Diluted) |
$ |
0.61 |
|
|
$ |
0.43 |
|
|
$ |
0.18 |
|
|
$ |
2.06 |
|
$ |
0.50 |
|
$ |
1.56 |
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
MIDSTREAM BUSINESSES |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
PIPELINE AND
STORAGE SEGMENT |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Revenues from External Customers |
$ |
67,236 |
|
|
$ |
57,258 |
|
|
$ |
9,978 |
|
|
$ |
196,579 |
|
$ |
175,881 |
|
$ |
20,698 |
|
Intersegment Revenues |
|
28,312 |
|
|
|
26,805 |
|
|
|
1,507 |
|
|
|
82,716 |
|
|
82,651 |
|
|
65 |
|
Total Operating Revenues |
|
95,548 |
|
|
|
84,063 |
|
|
|
11,485 |
|
|
|
279,295 |
|
|
258,532 |
|
|
20,763 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
(139 |
) |
|
|
(11 |
) |
|
|
(128 |
) |
|
|
1,298 |
|
|
219 |
|
|
1,079 |
|
Operation and Maintenance |
|
24,639 |
|
|
|
22,918 |
|
|
|
1,721 |
|
|
|
71,249 |
|
|
63,809 |
|
|
7,440 |
|
Property, Franchise and Other
Taxes |
|
8,483 |
|
|
|
8,070 |
|
|
|
413 |
|
|
|
25,664 |
|
|
24,713 |
|
|
951 |
|
Depreciation, Depletion and
Amortization |
|
17,322 |
|
|
|
15,609 |
|
|
|
1,713 |
|
|
|
50,417 |
|
|
46,806 |
|
|
3,611 |
|
|
|
50,305 |
|
|
|
46,586 |
|
|
|
3,719 |
|
|
|
148,628 |
|
|
135,547 |
|
|
13,081 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
45,243 |
|
|
|
37,477 |
|
|
|
7,766 |
|
|
|
130,667 |
|
|
122,985 |
|
|
7,682 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit |
|
767 |
|
|
|
125 |
|
|
|
642 |
|
|
|
2,302 |
|
|
376 |
|
|
1,926 |
|
Interest and Other Income |
|
735 |
|
|
|
1,364 |
|
|
|
(629 |
) |
|
|
2,330 |
|
|
3,159 |
|
|
(829 |
) |
Interest Expense |
|
(10,813 |
) |
|
|
(10,070 |
) |
|
|
(743 |
) |
|
|
(31,564 |
) |
|
(31,353 |
) |
|
(211 |
) |
Income Before Income
Taxes |
|
35,932 |
|
|
|
28,896 |
|
|
|
7,036 |
|
|
|
103,735 |
|
|
95,167 |
|
|
8,568 |
|
Income Tax Expense |
|
9,333 |
|
|
|
6,948 |
|
|
|
2,385 |
|
|
|
26,499 |
|
|
24,107 |
|
|
2,392 |
|
Net Income |
$ |
26,599 |
|
|
$ |
21,948 |
|
|
$ |
4,651 |
|
|
$ |
77,236 |
|
$ |
71,060 |
|
$ |
6,176 |
|
Net Income Per Share
(Diluted) |
$ |
0.29 |
|
|
$ |
0.24 |
|
|
$ |
0.05 |
|
|
$ |
0.84 |
|
$ |
0.78 |
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
March 31, |
|
June 30, |
GATHERING
SEGMENT |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Revenues from External
Customers |
$ |
2,862 |
|
|
$ |
588 |
|
|
$ |
2,274 |
|
|
$ |
10,063 |
|
$ |
1,610 |
|
$ |
8,453 |
|
Intersegment Revenues |
|
53,069 |
|
|
|
48,068 |
|
|
|
5,001 |
|
|
|
150,696 |
|
|
144,317 |
|
|
6,379 |
|
Total Operating Revenues |
|
55,931 |
|
|
|
48,656 |
|
|
|
7,275 |
|
|
|
160,759 |
|
|
145,927 |
|
|
14,832 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
9,770 |
|
|
|
8,715 |
|
|
|
1,055 |
|
|
|
27,509 |
|
|
24,750 |
|
|
2,759 |
|
Property, Franchise and Other Taxes |
|
10 |
|
|
|
12 |
|
|
|
(2 |
) |
|
|
12 |
|
|
30 |
|
|
(18 |
) |
Depreciation, Depletion and Amortization |
|
8,589 |
|
|
|
8,131 |
|
|
|
458 |
|
|
|
25,343 |
|
|
24,132 |
|
|
1,211 |
|
|
|
18,369 |
|
|
|
16,858 |
|
|
|
1,511 |
|
|
|
52,864 |
|
|
48,912 |
|
|
3,952 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
37,562 |
|
|
|
31,798 |
|
|
|
5,764 |
|
|
|
107,895 |
|
|
97,015 |
|
|
10,880 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(56 |
) |
|
|
(68 |
) |
|
|
12 |
|
|
|
(168 |
) |
|
(203 |
) |
|
35 |
|
Interest and Other Income |
|
53 |
|
|
|
10 |
|
|
|
43 |
|
|
|
81 |
|
|
253 |
|
|
(172 |
) |
Interest Expense on Long-Term Debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(965 |
) |
|
965 |
|
Interest Expense |
|
(4,164 |
) |
|
|
(4,102 |
) |
|
|
(62 |
) |
|
|
(12,383 |
) |
|
(12,435 |
) |
|
52 |
|
Income Before Income
Taxes |
|
33,395 |
|
|
|
27,638 |
|
|
|
5,757 |
|
|
|
95,425 |
|
|
83,665 |
|
|
11,760 |
|
Income Tax Expense |
|
8,737 |
|
|
|
7,211 |
|
|
|
1,526 |
|
|
|
25,538 |
|
|
21,988 |
|
|
3,550 |
|
Net Income |
$ |
24,658 |
|
|
$ |
20,427 |
|
|
$ |
4,231 |
|
|
$ |
69,887 |
|
$ |
61,677 |
|
$ |
8,210 |
|
Net Income Per Share
(Diluted) |
$ |
0.27 |
|
|
$ |
0.22 |
|
|
$ |
0.05 |
|
|
$ |
0.76 |
|
$ |
0.67 |
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
DOWNSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
UTILITY
SEGMENT |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Revenues from External Customers |
$ |
179,888 |
|
|
$ |
126,934 |
|
|
$ |
52,954 |
|
|
$ |
785,664 |
|
$ |
586,618 |
|
$ |
199,046 |
|
Intersegment Revenues |
|
60 |
|
|
|
74 |
|
|
|
(14 |
) |
|
|
245 |
|
|
271 |
|
|
(26 |
) |
Total Operating Revenues |
|
179,948 |
|
|
|
127,008 |
|
|
|
52,940 |
|
|
|
785,909 |
|
|
586,889 |
|
|
199,020 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
95,587 |
|
|
|
44,848 |
|
|
|
50,739 |
|
|
|
448,268 |
|
|
255,011 |
|
|
193,257 |
|
Operation and Maintenance |
|
47,176 |
|
|
|
43,296 |
|
|
|
3,880 |
|
|
|
148,885 |
|
|
141,412 |
|
|
7,473 |
|
Property, Franchise and Other Taxes |
|
10,143 |
|
|
|
9,433 |
|
|
|
710 |
|
|
|
32,156 |
|
|
30,181 |
|
|
1,975 |
|
Depreciation, Depletion and Amortization |
|
14,765 |
|
|
|
14,505 |
|
|
|
260 |
|
|
|
44,592 |
|
|
42,811 |
|
|
1,781 |
|
|
|
167,671 |
|
|
|
112,082 |
|
|
|
55,589 |
|
|
|
673,901 |
|
|
469,415 |
|
|
204,486 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
12,277 |
|
|
|
14,926 |
|
|
|
(2,649 |
) |
|
|
112,008 |
|
|
117,474 |
|
|
(5,466 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit (Costs) |
|
(2,678 |
) |
|
|
(5,747 |
) |
|
|
3,069 |
|
|
|
6,018 |
|
|
(24,674 |
) |
|
30,692 |
|
Interest and Other Income |
|
349 |
|
|
|
960 |
|
|
|
(611 |
) |
|
|
1,162 |
|
|
2,142 |
|
|
(980 |
) |
Interest Expense |
|
(6,087 |
) |
|
|
(5,510 |
) |
|
|
(577 |
) |
|
|
(17,115 |
) |
|
(16,457 |
) |
|
(658 |
) |
Income Before Income
Taxes |
|
3,861 |
|
|
|
4,629 |
|
|
|
(768 |
) |
|
|
102,073 |
|
|
78,485 |
|
|
23,588 |
|
Income Tax Expense
(Benefit) |
|
(761 |
) |
|
|
(212 |
) |
|
|
(549 |
) |
|
|
22,273 |
|
|
18,563 |
|
|
3,710 |
|
Net Income |
$ |
4,622 |
|
|
$ |
4,841 |
|
|
$ |
(219 |
) |
|
$ |
79,800 |
|
$ |
59,922 |
|
$ |
19,878 |
|
Net Income Per Share
(Diluted) |
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
— |
|
|
$ |
0.87 |
|
$ |
0.65 |
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
ALL
OTHER |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Revenues from External Customers |
$ |
— |
|
|
$ |
(1 |
) |
|
$ |
1 |
|
|
$ |
— |
|
$ |
1,174 |
|
$ |
(1,174 |
) |
Intersegment Revenues |
|
— |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
6 |
|
|
22 |
|
|
(16 |
) |
Total Operating Revenues |
|
— |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
6 |
|
|
1,196 |
|
|
(1,190 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
— |
|
|
|
4 |
|
|
|
(4 |
) |
|
|
6 |
|
|
2,297 |
|
|
(2,291 |
) |
Operation and Maintenance |
|
— |
|
|
|
17 |
|
|
|
(17 |
) |
|
|
5 |
|
|
701 |
|
|
(696 |
) |
Property, Franchise and Other Taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
47 |
|
|
(47 |
) |
Depreciation, Depletion and Amortization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
394 |
|
|
(394 |
) |
|
|
— |
|
|
|
21 |
|
|
|
(21 |
) |
|
|
11 |
|
|
3,439 |
|
|
(3,428 |
) |
Gain on Sale of Assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
51,066 |
|
|
(51,066 |
) |
Operating Income (Loss) |
|
— |
|
|
|
(20 |
) |
|
|
20 |
|
|
|
(5 |
) |
|
48,823 |
|
|
(48,828 |
) |
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(7 |
) |
|
7 |
|
Interest and Other Income |
|
— |
|
|
|
3 |
|
|
|
(3 |
) |
|
|
2 |
|
|
229 |
|
|
(227 |
) |
Income (Loss) before Income
Taxes |
|
— |
|
|
|
(17 |
) |
|
|
17 |
|
|
|
(3 |
) |
|
49,045 |
|
|
(49,048 |
) |
Income Tax Expense
(Benefit) |
|
— |
|
|
|
(1,056 |
) |
|
|
1,056 |
|
|
|
4 |
|
|
11,428 |
|
|
(11,424 |
) |
Net Income (Loss) |
$ |
— |
|
|
$ |
1,039 |
|
|
$ |
(1,039 |
) |
|
$ |
(7 |
) |
$ |
37,617 |
|
$ |
(37,624 |
) |
Net Income (Loss) Per Share
(Diluted) |
$ |
— |
|
|
$ |
0.01 |
|
|
$ |
(0.01 |
) |
|
$ |
— |
|
$ |
0.41 |
|
$ |
(0.41 |
) |
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
CORPORATE |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Revenues from External
Customers |
$ |
— |
|
|
$ |
83 |
|
|
$ |
(83 |
) |
|
$ |
166 |
|
$ |
272 |
|
$ |
(106 |
) |
Intersegment Revenues |
|
1,082 |
|
|
|
1,027 |
|
|
|
55 |
|
|
|
3,247 |
|
|
2,718 |
|
|
529 |
|
Total Operating Revenues |
|
1,082 |
|
|
|
1,110 |
|
|
|
(28 |
) |
|
|
3,413 |
|
|
2,990 |
|
|
423 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
3,195 |
|
|
|
5,224 |
|
|
|
(2,029 |
) |
|
|
10,039 |
|
|
11,566 |
|
|
(1,527 |
) |
Property, Franchise and Other Taxes |
|
124 |
|
|
|
124 |
|
|
|
— |
|
|
|
373 |
|
|
370 |
|
|
3 |
|
Depreciation, Depletion and Amortization |
|
45 |
|
|
|
39 |
|
|
|
6 |
|
|
|
139 |
|
|
133 |
|
|
6 |
|
|
|
3,364 |
|
|
|
5,387 |
|
|
|
(2,023 |
) |
|
|
10,551 |
|
|
12,069 |
|
|
(1,518 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
(2,282 |
) |
|
|
(4,277 |
) |
|
|
1,995 |
|
|
|
(7,138 |
) |
|
(9,079 |
) |
|
1,941 |
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(1,017 |
) |
|
|
(923 |
) |
|
|
(94 |
) |
|
|
(3,052 |
) |
|
(2,769 |
) |
|
(283 |
) |
Interest and Other Income |
|
31,019 |
|
|
|
33,433 |
|
|
|
(2,414 |
) |
|
|
92,937 |
|
|
107,728 |
|
|
(14,791 |
) |
Interest Expense on Long-Term Debt |
|
(30,091 |
) |
|
|
(30,220 |
) |
|
|
129 |
|
|
|
(90,300 |
) |
|
(95,212 |
) |
|
4,912 |
|
Other Interest Expense |
|
(3,346 |
) |
|
|
(236 |
) |
|
|
(3,110 |
) |
|
|
(4,948 |
) |
|
(2,412 |
) |
|
(2,536 |
) |
Loss before Income Taxes |
|
(5,717 |
) |
|
|
(2,223 |
) |
|
|
(3,494 |
) |
|
|
(12,501 |
) |
|
(1,744 |
) |
|
(10,757 |
) |
Income Tax Benefit |
|
(1,499 |
) |
|
|
(1,428 |
) |
|
|
(71 |
) |
|
|
(3,477 |
) |
|
(1,940 |
) |
|
(1,537 |
) |
Net Income (Loss) |
$ |
(4,218 |
) |
|
$ |
(795 |
) |
|
$ |
(3,423 |
) |
|
$ |
(9,024 |
) |
$ |
196 |
|
$ |
(9,220 |
) |
Net Income (Loss) Per Share
(Diluted) |
$ |
(0.05 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.10 |
) |
$ |
0.01 |
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
INTERSEGMENT
ELIMINATIONS |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Intersegment Revenues |
$ |
(82,523 |
) |
|
$ |
(75,976 |
) |
|
$ |
(6,547 |
) |
|
$ |
(236,910 |
) |
$ |
(229,979 |
) |
$ |
(6,931 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
(27,500 |
) |
|
|
(26,104 |
) |
|
|
(1,396 |
) |
|
|
(80,404 |
) |
|
(80,509 |
) |
|
105 |
|
Operation and Maintenance |
|
(55,023 |
) |
|
|
(49,872 |
) |
|
|
(5,151 |
) |
|
|
(156,506 |
) |
|
(149,470 |
) |
|
(7,036 |
) |
|
|
(82,523 |
) |
|
|
(75,976 |
) |
|
|
(6,547 |
) |
|
|
(236,910 |
) |
|
(229,979 |
) |
|
(6,931 |
) |
Operating Income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Interest and Other Deductions |
|
(35,117 |
) |
|
|
(30,914 |
) |
|
|
(4,203 |
) |
|
|
(98,376 |
) |
|
(100,628 |
) |
|
2,252 |
|
Interest Expense |
|
35,117 |
|
|
|
30,914 |
|
|
|
4,203 |
|
|
|
98,376 |
|
|
100,628 |
|
|
(2,252 |
) |
Net Income |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Net Income Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION (Continued) |
(Thousands of Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2022 |
|
|
2021 |
|
|
(Decrease) |
|
|
2022 |
|
|
2021 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production |
$ |
131,776 |
(1) |
$ |
94,152 |
|
(3) |
$ |
37,624 |
|
|
$ |
405,736 |
(1)(2) |
$ |
263,763 |
|
(3)(4) |
$ |
141,973 |
|
Pipeline and Storage |
|
19,778 |
(1) |
|
63,863 |
|
(3) |
|
(44,085 |
) |
|
|
58,243 |
(1)(2) |
|
155,556 |
|
(3)(4) |
|
(97,313 |
) |
Gathering |
|
8,614 |
(1) |
|
6,209 |
|
(3) |
|
2,405 |
|
|
|
28,588 |
(1)(2) |
|
25,628 |
|
(3)(4) |
|
2,960 |
|
Utility |
|
27,664 |
(1) |
|
24,866 |
|
(3) |
|
2,798 |
|
|
|
70,972 |
(1)(2) |
|
66,691 |
|
(3)(4) |
|
4,281 |
|
Total Reportable Segments |
|
187,832 |
|
|
189,090 |
|
|
|
(1,258 |
) |
|
|
563,539 |
|
|
511,638 |
|
|
|
51,901 |
|
All Other |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Corporate |
|
166 |
|
|
129 |
|
|
|
37 |
|
|
|
663 |
|
|
218 |
|
|
|
445 |
|
Eliminations |
|
— |
|
|
(1,898 |
) |
|
|
1,898 |
|
|
|
— |
|
|
(2,118 |
) |
|
|
2,118 |
|
Total Capital Expenditures |
$ |
187,998 |
|
$ |
187,321 |
|
|
$ |
677 |
|
|
$ |
564,202 |
|
$ |
509,738 |
|
|
$ |
54,464 |
|
(1) Capital expenditures for the
quarter and nine months ended June 30, 2022, include accounts
payable and accrued liabilities related to capital expenditures of
$62.0 million, $5.2 million, $2.5 million, and $4.7 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
June 30, 2022, since they represent non-cash investing activities
at that date.
(2) Capital expenditures for the nine months ended
June 30, 2022, exclude capital expenditures of $47.9 million, $39.4
million, $4.8 million and $10.6 million in the Exploration and
Production segment, Pipeline and Storage segment, Gathering segment
and Utility segment, respectively. These amounts were in accounts
payable and accrued liabilities at September 30, 2021 and paid
during the nine months ended June 30, 2022. These amounts were
excluded from the Consolidated Statement of Cash Flows at September
30, 2021, since they represented non-cash investing activities at
that date. These amounts have been included in the Consolidated
Statement of Cash Flows at June 30, 2022.
(3) Capital expenditures for the quarter and nine
months ended June 30, 2021, include accounts payable and accrued
liabilities related to capital expenditures of $49.7 million, $25.8
million, $0.9 million, and $5.1 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 June 30, 2021,
since they represent non-cash investing activities at that
date.
(4) Capital expenditures for the nine months ended
June 30, 2021, exclude capital expenditures of $45.8 million, $17.3
million, $13.5 million and $10.7 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, 2020 and paid
during the nine months ended June 30, 2021. These amounts were
excluded from the Consolidated Statement of Cash Flows at September
30, 2020, since they represented non-cash investing activities at
that date. These amounts have been included in the Consolidated
Statement of Cash Flows at June 30, 2021.
|
|
|
|
|
|
|
|
|
|
DEGREE
DAYS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Colder |
|
|
|
|
|
|
|
(Warmer) Than: |
Three Months Ended June
30, |
Normal |
|
2022 |
|
2021 |
|
Normal (1) |
|
Last Year (1) |
Buffalo, NY |
912 |
|
797 |
|
794 |
|
(12.6 |
) |
|
0.4 |
|
Erie, PA |
871 |
|
741 |
|
741 |
|
(14.9 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June
30, |
|
|
|
|
|
|
|
|
|
Buffalo, NY |
6,455 |
|
5,662 |
|
5,693 |
|
(12.3 |
) |
|
(0.5 |
) |
Erie, PA |
6,023 |
|
5,274 |
|
5,188 |
|
(12.4 |
) |
|
1.7 |
|
|
|
|
|
|
|
|
|
|
|
(1) Percents compare actual 2022
degree days to normal degree days and actual 2022 degree days to
actual 2021 degree days.
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
|
2022 |
|
|
2021 |
|
(Decrease) |
|
|
2022 |
|
|
2021 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
Production (MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
|
88,888 |
|
|
79,314 |
|
|
9,574 |
|
|
|
253,842 |
|
|
236,429 |
|
|
17,413 |
|
West Coast |
|
|
405 |
|
|
431 |
|
|
(26 |
) |
|
|
1,210 |
|
|
1,300 |
|
|
(90 |
) |
Total Production |
|
|
89,293 |
|
|
79,745 |
|
|
9,548 |
|
|
|
255,052 |
|
|
237,729 |
|
|
17,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Mcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
$ |
5.50 |
|
$ |
2.29 |
|
$ |
3.21 |
|
|
$ |
4.64 |
|
$ |
2.25 |
|
$ |
2.39 |
|
West Coast |
|
|
10.29 |
|
|
5.36 |
|
|
4.93 |
|
|
|
10.04 |
|
|
5.83 |
|
|
4.21 |
|
Weighted Average |
|
|
5.52 |
|
|
2.31 |
|
|
3.21 |
|
|
|
4.67 |
|
|
2.27 |
|
|
2.40 |
|
Weighted Average after Hedging |
|
|
2.87 |
|
|
2.20 |
|
|
0.67 |
|
|
|
2.67 |
|
|
2.21 |
|
|
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
Production (Thousands of
Barrels) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
|
7 |
|
|
1 |
|
|
6 |
|
|
|
8 |
|
|
2 |
|
|
6 |
|
West Coast |
|
|
519 |
|
|
557 |
|
|
(38 |
) |
|
|
1,589 |
|
|
1,681 |
|
|
(92 |
) |
Total Production |
|
|
526 |
|
|
558 |
|
|
(32 |
) |
|
|
1,597 |
|
|
1,683 |
|
|
(86 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per
Barrel) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
$ |
108.47 |
|
$ |
42.09 |
|
$ |
66.38 |
|
|
$ |
104.83 |
|
$ |
43.13 |
|
$ |
61.70 |
|
West Coast |
|
|
110.79 |
|
|
67.55 |
|
|
43.24 |
|
|
|
94.06 |
|
|
56.92 |
|
|
37.14 |
|
Weighted Average |
|
|
110.76 |
|
|
67.52 |
|
|
43.24 |
|
|
|
94.11 |
|
|
56.90 |
|
|
37.21 |
|
Weighted Average after Hedging (1) |
|
|
77.65 |
|
|
59.22 |
|
|
18.43 |
|
|
|
70.71 |
|
|
55.40 |
|
|
15.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production (MMcfe) |
|
|
92,449 |
|
|
83,093 |
|
|
9,356 |
|
|
|
264,634 |
|
|
247,827 |
|
|
16,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Performance Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
General & Administrative
Expense per Mcfe (2) |
|
$ |
0.19 |
|
$ |
0.19 |
|
$ |
— |
|
|
$ |
0.20 |
|
$ |
0.21 |
|
$ |
(0.01 |
) |
Lease Operating and
Transportation Expense per Mcfe (2)(3) |
|
$ |
0.86 |
|
$ |
0.80 |
|
$ |
0.06 |
|
|
$ |
0.84 |
|
$ |
0.80 |
|
$ |
0.04 |
|
Depreciation, Depletion &
Amortization per Mcfe (2) |
|
$ |
0.60 |
|
$ |
0.55 |
|
$ |
0.05 |
|
|
$ |
0.59 |
|
$ |
0.55 |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Weighted average oil price
after hedging for the three and nine months ended June 30, 2022
excludes a loss on discontinuance of crude oil cash flow hedges of
$44,632.
(2) 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. General and Administrative
Expense per Mcfe for the three and nine months ended June 30, 2022
excludes transaction and severance costs related to the California
asset sale.
(3) Amounts include
transportation expense of $0.57 and $0.57 per Mcfe for the three
months ended June 30, 2022 and June 30, 2021, respectively. Amounts
include transportation expense of $0.56 and $0.57 per Mcfe for the
nine months ended June 30, 2022 and June 30, 2021,
respectively.
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
Hedging Summary for
Remaining Three Months of Fiscal 2022 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
53,580,000
MMBTU |
|
$ |
2.76 / MMBTU |
Fixed Price Physical
Sales |
|
18,940,197
MMBTU |
|
$ |
2.62 / MMBTU |
Total |
|
72,520,197
MMBTU |
|
$ |
2.72 /
MMBTU |
Hedging Summary for
Fiscal 2023 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
116,200,000
MMBTU |
|
$ |
2.79 / MMBTU |
No Cost Collars |
|
70,400,000
MMBTU |
|
$ |
3.11 / MMBTU (Floor) / $3.64 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
73,107,694
MMBTU |
|
$ |
2.44 / MMBTU |
Total |
|
259,707,694 MMBTU |
|
|
|
Hedging Summary for
Fiscal 2024 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
61,080,000
MMBTU |
|
$ |
2.72 / MMBTU |
No Cost Collars |
|
59,200,000
MMBTU |
|
$ |
3.20 / MMBTU (Floor) / $3.78 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
60,223,801
MMBTU |
|
$ |
2.22 / MMBTU |
Total |
|
180,503,801 MMBTU |
|
|
|
Hedging Summary for
Fiscal 2025 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
23,660,000
MMBTU |
|
$ |
2.74 / MMBTU |
No Cost Collars |
|
43,960,000
MMBTU |
|
$ |
3.49 / MMBTU (Floor) / $4.65 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
57,180,046
MMBTU |
|
$ |
2.21 / MMBTU |
Total |
|
124,800,046 MMBTU |
|
|
|
Hedging Summary for
Fiscal 2026 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
1,720,000
MMBTU |
|
$ |
2.75 / MMBTU |
No Cost Collars |
|
42,720,000
MMBTU |
|
$ |
3.53 / MMBTU (Floor) / $4.76 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
60,185,049
MMBTU |
|
$ |
2.30 / MMBTU |
Total |
|
104,625,049 MMBTU |
|
|
|
Hedging Summary for
Fiscal 2027 |
|
Volume |
|
|
Average Hedge
Price |
No Cost Collars |
|
3,560,000
MMBTU |
|
$ |
3.53 / MMBTU (Floor) / $4.76 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
43,434,257
MMBTU |
|
$ |
2.35 / MMBTU |
Total |
|
46,994,257
MMBTU |
|
|
|
Hedging Summary for
Fiscal 2028 |
|
Volume |
|
|
Average Hedge
Price |
Fixed Price Physical
Sales |
|
11,850,451
MMBTU |
|
$ |
2.48 / MMBTU |
Hedging Summary for
Fiscal 2029 |
|
Volume |
|
|
Average Hedge
Price |
Fixed Price Physical
Sales |
|
766,673
MMBTU |
|
$ |
2.54 / MMBTU |
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline
& Storage Throughput - (millions of cubic feet -
MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2022 |
|
2021 |
|
(Decrease) |
|
2022 |
|
2021 |
|
(Decrease) |
Firm Transportation - Affiliated |
|
19,558 |
|
19,202 |
|
356 |
|
|
94,213 |
|
92,290 |
|
1,923 |
Firm Transportation -
Non-Affiliated |
|
156,310 |
|
155,022 |
|
1,288 |
|
|
507,278 |
|
494,458 |
|
12,820 |
Interruptible
Transportation |
|
206 |
|
181 |
|
25 |
|
|
1,726 |
|
1,205 |
|
521 |
|
|
176,074 |
|
174,405 |
|
1,669 |
|
|
603,217 |
|
587,953 |
|
15,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering Volume -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2022 |
|
2021 |
|
(Decrease) |
|
2022 |
|
2021 |
|
(Decrease) |
Gathered Volume |
|
109,797 |
|
91,817 |
|
17,980 |
|
|
314,625 |
|
275,283 |
|
39,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Throughput -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2022 |
|
2021 |
|
(Decrease) |
|
2022 |
|
2021 |
|
(Decrease) |
Retail Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential Sales |
|
10,344 |
|
9,776 |
|
568 |
|
|
59,865 |
|
57,241 |
|
2,624 |
Commercial Sales |
|
1,511 |
|
1,369 |
|
142 |
|
|
8,977 |
|
8,206 |
|
771 |
Industrial Sales |
|
74 |
|
65 |
|
9 |
|
|
466 |
|
441 |
|
25 |
|
|
11,929 |
|
11,210 |
|
719 |
|
|
69,308 |
|
65,888 |
|
3,420 |
Transportation |
|
12,936 |
|
13,298 |
|
(362 |
) |
|
56,274 |
|
55,815 |
|
459 |
|
|
24,865 |
|
24,508 |
|
357 |
|
|
125,582 |
|
121,703 |
|
3,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
In addition to financial measures calculated in
accordance with generally accepted accounting principles (GAAP),
this press release contains information regarding Adjusted
Operating Results, Adjusted EBITDA and free cash flow, which are
non-GAAP financial measures. The Company believes that these
non-GAAP financial measures are useful to investors because they
provide an alternative method for assessing the Company's ongoing
operating results or liquidity and for comparing the Company’s
financial performance to other companies. The Company's management
uses these non-GAAP financial measures for the same purpose, and
for planning and forecasting purposes. The presentation of non-GAAP
financial measures is not meant to be a substitute for financial
measures in accordance with GAAP.
Management defines Adjusted Operating Results as
reported GAAP earnings before items impacting comparability. The
following table reconciles National Fuel's reported GAAP earnings
to Adjusted Operating Results for the three and nine months ended
June 30, 2022 and 2021:
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
(in thousands except per share amounts) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Reported GAAP
Earnings |
|
$ |
108,158 |
|
|
$ |
86,475 |
|
|
$ |
407,879 |
|
|
$ |
276,685 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Items related to West Coast asset sale: |
|
|
|
|
|
|
|
|
Gain on sale of West Coast assets (E&P) |
|
|
(12,736 |
) |
|
|
— |
|
|
|
(12,736 |
) |
|
|
— |
|
Tax impact of gain on sale of West Coast assets |
|
|
3,225 |
|
|
|
— |
|
|
|
3,225 |
|
|
|
— |
|
Loss from discontinuance of crude oil cash flow hedges
(E&P) |
|
|
44,632 |
|
|
|
— |
|
|
|
44,632 |
|
|
|
— |
|
Tax impact of loss from discontinuance of crude oil cash
flow hedges |
|
|
(11,303 |
) |
|
|
— |
|
|
|
(11,303 |
) |
|
|
— |
|
Transaction and severance costs (E&P) |
|
|
9,693 |
|
|
|
— |
|
|
|
9,693 |
|
|
|
— |
|
Tax impact of transaction and severance costs |
|
|
(2,455 |
) |
|
|
— |
|
|
|
(2,455 |
) |
|
|
— |
|
Total items impacting comparability related to West Coast
asset sale |
|
|
31,056 |
|
|
|
— |
|
|
|
31,056 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Reduction of other post-retirement regulatory liability
(Utility) |
|
|
— |
|
|
|
— |
|
|
|
(18,533 |
) |
|
|
— |
|
Tax impact of reduction of other post-retirement regulatory
liability |
|
|
— |
|
|
|
— |
|
|
|
3,892 |
|
|
|
— |
|
Unrealized (gain) loss on other investments (Corporate/All
Other) |
|
|
3,434 |
|
|
|
(1,025 |
) |
|
|
10,093 |
|
|
|
(575 |
) |
Tax impact of unrealized (gain) loss on other investments |
|
|
(721 |
) |
|
|
215 |
|
|
|
(2,120 |
) |
|
|
120 |
|
Impairment of oil and gas properties (E&P) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,152 |
|
Tax impact of impairment of oil and gas properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(20,980 |
) |
Gain on sale of timber properties (Corporate/All Other) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51,066 |
) |
Tax impact of gain on sale of timber properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,069 |
|
Premium paid on early redemption of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,715 |
|
Tax impact of premium paid on early redemption of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,321 |
) |
Adjusted Operating
Results |
|
$ |
141,927 |
|
|
$ |
85,665 |
|
|
$ |
432,267 |
|
|
$ |
305,799 |
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
|
$ |
1.17 |
|
|
$ |
0.94 |
|
|
$ |
4.43 |
|
|
$ |
3.02 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Items related to West Coast asset sale: |
|
|
|
|
|
|
|
|
Gain on sale of West Coast assets, net of tax (E&P) |
|
|
(0.10 |
) |
|
|
— |
|
|
|
(0.10 |
) |
|
|
— |
|
Loss from discontinuance of crude oil cash flow hedges, net
of tax (E&P) |
|
|
0.36 |
|
|
|
— |
|
|
|
0.36 |
|
|
|
— |
|
Transaction and severance costs, net of tax (E&P) |
|
|
0.08 |
|
|
|
— |
|
|
|
0.08 |
|
|
|
— |
|
Total items impacting comparability related to West Coast
asset sale |
|
|
0.34 |
|
|
|
— |
|
|
|
0.34 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Reduction of other post-retirement regulatory liability, net of tax
(Utility) |
|
|
— |
|
|
|
— |
|
|
|
(0.16 |
) |
|
|
— |
|
Unrealized (gain) loss on other investments, net of tax
(Corporate/All Other) |
|
|
0.03 |
|
|
|
(0.01 |
) |
|
|
0.08 |
|
|
|
— |
|
Impairment of oil and gas properties, net of tax (E&P) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.60 |
|
Gain on sale of timber properties, net of tax (Corporate/All
Other) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.40 |
) |
Premium paid on early redemption of debt, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.12 |
|
Adjusted Operating
Results Per Share |
|
$ |
1.54 |
|
|
$ |
0.93 |
|
|
$ |
4.69 |
|
|
$ |
3.34 |
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
(Continued)
Management defines Adjusted EBITDA as reported
GAAP earnings before the following items: interest expense, income
taxes, depreciation, depletion and amortization, other income and
deductions, impairments, and other items reflected in operating
income that impact comparability. The following tables reconcile
National Fuel's reported GAAP earnings to Adjusted EBITDA for the
three and nine months ended June 30, 2022 and 2021:
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
(in thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Reported GAAP
Earnings |
|
$ |
108,158 |
|
|
$ |
86,475 |
|
|
$ |
407,879 |
|
|
$ |
276,685 |
|
Depreciation, Depletion and Amortization |
|
|
95,857 |
|
|
|
84,170 |
|
|
|
275,681 |
|
|
|
251,632 |
|
Other (Income) Deductions |
|
|
5,649 |
|
|
|
2,028 |
|
|
|
(3,291 |
) |
|
|
15,078 |
|
Interest Expense |
|
|
33,973 |
|
|
|
31,232 |
|
|
|
96,861 |
|
|
|
115,926 |
|
Income Taxes |
|
|
32,917 |
|
|
|
30,335 |
|
|
|
135,272 |
|
|
|
99,962 |
|
Impairment of Oil and Gas Producing Properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,152 |
|
Gain on Sale of Assets |
|
|
(12,736 |
) |
|
|
— |
|
|
|
(12,736 |
) |
|
|
(51,066 |
) |
Loss from discontinuance of crude oil cash flow hedges
(E&P) |
|
|
44,632 |
|
|
|
— |
|
|
|
44,632 |
|
|
|
— |
|
Transaction and severance costs related to West Coast asset sale
(E&P) |
|
|
9,693 |
|
|
|
— |
|
|
|
9,693 |
|
|
|
— |
|
Adjusted
EBITDA |
|
$ |
318,143 |
|
|
$ |
234,240 |
|
|
$ |
953,991 |
|
|
$ |
784,369 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Segment |
|
|
|
|
|
|
|
|
Pipeline and Storage Adjusted
EBITDA |
|
$ |
62,565 |
|
|
$ |
53,086 |
|
|
$ |
181,084 |
|
|
$ |
169,791 |
|
Gathering Adjusted EBITDA |
|
|
46,151 |
|
|
|
39,929 |
|
|
|
133,238 |
|
|
|
121,147 |
|
Total Midstream Businesses
Adjusted EBITDA |
|
|
108,716 |
|
|
|
93,015 |
|
|
|
314,322 |
|
|
|
290,938 |
|
Exploration and Production
Adjusted EBITDA |
|
|
184,622 |
|
|
|
116,052 |
|
|
|
490,073 |
|
|
|
343,941 |
|
Utility Adjusted EBITDA |
|
|
27,042 |
|
|
|
29,431 |
|
|
|
156,600 |
|
|
|
160,285 |
|
Corporate and All Other
Adjusted EBITDA |
|
|
(2,237 |
) |
|
|
(4,258 |
) |
|
|
(7,004 |
) |
|
|
(10,795 |
) |
Total Adjusted
EBITDA |
|
$ |
318,143 |
|
|
$ |
234,240 |
|
|
$ |
953,991 |
|
|
$ |
784,369 |
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
(in thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Exploration and
Production Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
56,497 |
|
|
$ |
39,015 |
|
|
$ |
189,987 |
|
|
$ |
46,213 |
|
Depreciation, Depletion and Amortization |
|
|
55,136 |
|
|
|
45,886 |
|
|
|
155,190 |
|
|
|
137,356 |
|
Other (Income) Deductions |
|
|
(296 |
) |
|
|
271 |
|
|
|
(55 |
) |
|
|
684 |
|
Interest Expense |
|
|
14,589 |
|
|
|
12,008 |
|
|
|
38,927 |
|
|
|
57,720 |
|
Income Taxes |
|
|
17,107 |
|
|
|
18,872 |
|
|
|
64,435 |
|
|
|
25,816 |
|
Impairment of Oil and Gas Producing Properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,152 |
|
Gain on Sale of West Coast assets |
|
|
(12,736 |
) |
|
|
— |
|
|
|
(12,736 |
) |
|
|
— |
|
Loss from discontinuance of crude oil cash flow hedges |
|
|
44,632 |
|
|
|
— |
|
|
|
44,632 |
|
|
|
— |
|
Transaction and severance costs related to West Coast asset
sale |
|
|
9,693 |
|
|
|
— |
|
|
|
9,693 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
184,622 |
|
|
$ |
116,052 |
|
|
$ |
490,073 |
|
|
$ |
343,941 |
|
|
|
|
|
|
|
|
|
|
Pipeline and
Storage Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
26,599 |
|
|
$ |
21,948 |
|
|
$ |
77,236 |
|
|
$ |
71,060 |
|
Depreciation, Depletion and Amortization |
|
|
17,322 |
|
|
|
15,609 |
|
|
|
50,417 |
|
|
|
46,806 |
|
Other (Income) Deductions |
|
|
(1,502 |
) |
|
|
(1,489 |
) |
|
|
(4,632 |
) |
|
|
(3,535 |
) |
Interest Expense |
|
|
10,813 |
|
|
|
10,070 |
|
|
|
31,564 |
|
|
|
31,353 |
|
Income Taxes |
|
|
9,333 |
|
|
|
6,948 |
|
|
|
26,499 |
|
|
|
24,107 |
|
Adjusted EBITDA |
|
$ |
62,565 |
|
|
$ |
53,086 |
|
|
$ |
181,084 |
|
|
$ |
169,791 |
|
|
|
|
|
|
|
|
|
|
Gathering
Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
24,658 |
|
|
$ |
20,427 |
|
|
$ |
69,887 |
|
|
$ |
61,677 |
|
Depreciation, Depletion and Amortization |
|
|
8,589 |
|
|
|
8,131 |
|
|
|
25,343 |
|
|
|
24,132 |
|
Other (Income) Deductions |
|
|
3 |
|
|
|
58 |
|
|
|
87 |
|
|
|
(50 |
) |
Interest Expense |
|
|
4,164 |
|
|
|
4,102 |
|
|
|
12,383 |
|
|
|
13,400 |
|
Income Taxes |
|
|
8,737 |
|
|
|
7,211 |
|
|
|
25,538 |
|
|
|
21,988 |
|
Adjusted EBITDA |
|
$ |
46,151 |
|
|
$ |
39,929 |
|
|
$ |
133,238 |
|
|
$ |
121,147 |
|
|
|
|
|
|
|
|
|
|
Utility
Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
4,622 |
|
|
$ |
4,841 |
|
|
$ |
79,800 |
|
|
$ |
59,922 |
|
Depreciation, Depletion and Amortization |
|
|
14,765 |
|
|
|
14,505 |
|
|
|
44,592 |
|
|
|
42,811 |
|
Other (Income) Deductions |
|
|
2,329 |
|
|
|
4,787 |
|
|
|
(7,180 |
) |
|
|
22,532 |
|
Interest Expense |
|
|
6,087 |
|
|
|
5,510 |
|
|
|
17,115 |
|
|
|
16,457 |
|
Income Taxes |
|
|
(761 |
) |
|
|
(212 |
) |
|
|
22,273 |
|
|
|
18,563 |
|
Adjusted EBITDA |
|
$ |
27,042 |
|
|
$ |
29,431 |
|
|
$ |
156,600 |
|
|
$ |
160,285 |
|
|
|
|
|
|
|
|
|
|
Corporate and All
Other |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
(4,218 |
) |
|
$ |
244 |
|
|
$ |
(9,031 |
) |
|
$ |
37,813 |
|
Depreciation, Depletion and Amortization |
|
|
45 |
|
|
|
39 |
|
|
|
139 |
|
|
|
527 |
|
Other (Income) Deductions |
|
|
5,115 |
|
|
|
(1,599 |
) |
|
|
8,489 |
|
|
|
(4,553 |
) |
Interest Expense |
|
|
(1,680 |
) |
|
|
(458 |
) |
|
|
(3,128 |
) |
|
|
(3,004 |
) |
Income Taxes |
|
|
(1,499 |
) |
|
|
(2,484 |
) |
|
|
(3,473 |
) |
|
|
9,488 |
|
Gain on Sale of Timber Properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51.066 |
) |
Adjusted EBITDA |
|
$ |
(2,237 |
) |
|
$ |
(4,258 |
) |
|
$ |
(7,004 |
) |
|
$ |
(10,795 |
) |
Management defines free cash flow as funds from
operations (net cash provided by operating activities less changes
in working capital) less capital expenditures. 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 calculate 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
Karen M. Camiolo
Treasurer
716-857-7344
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