WILLIAMSVILLE, N.Y., Nov. 03, 2022 (GLOBE NEWSWIRE) -- National
Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG)
today announced consolidated results for the three months and
fiscal year ended September 30, 2022.
FISCAL 2022 FOURTH QUARTER
SUMMARY
- GAAP net income of
$158.1 million, or $1.71 per share, compared to GAAP net income of
$87.0 million, or $0.95 per share, in the prior year, an increase
of 80% per share.
- Adjusted operating
results of $109.3 million, or $1.19 per share, an increase of 25%,
compared to $0.95 per share, in the prior year (see non-GAAP
reconciliation on page 2).
- Adjusted EBITDA of
$271.9 million, an increase of 26%, compared to $215.9 million in
the prior year (see non-GAAP reconciliation on page 26).
FISCAL 2022 HIGHLIGHTS
- GAAP net income of
$566.0 million, or $6.15 per share, an increase of 55% per share
from the prior year.
- Adjusted operating
results of $541.6 million, or $5.88 per share, an increase of 37%
per share from the prior year (see non-GAAP reconciliation on page
2).
- Adjusted EBITDA of
$1.2 billion, an increase of 23% from the prior year (see non-GAAP
reconciliation on page 26).
- E&P segment net
production increased by 8% from the prior year, which includes the
impact of the divestiture of our California operations.
- Gathering segment
revenues increased by 11% from the prior year.
- Pipeline &
Storage segment revenues increased by 10% from the prior year,
primarily driven by the completion of the Company's FM100
project.
- Utility segment
invested $82.6 million in system modernization and reliability,
replacing over 150 miles of older vintage mains and services, and
bringing 5-year total to over $377 million.
- Increased
shareholder dividend for the 52nd consecutive year to an
annual rate of $1.90 per share, an increase of 4.4%, continuing our
long history of consecutive dividend increases and our
120th year of uninterrupted dividend payments.
- Achieved an "A"
certification grade under the MiQ Standard for Methane Emissions
Performance, the highest available certification level, for 100% of
the Company's natural gas production.
- Continued to
enhance sustainability disclosures with the publication of the
inaugural Climate Report and the third annual Corporate
Responsibility Report.
MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive
Officer of National Fuel Gas Company, stated: “The fourth quarter
was a terrific ending to a very strong fiscal year for National
Fuel. Adjusted operating results for the quarter were up more than
25% compared to last year as a result of higher production at
Seneca and the tailwind of improved natural gas prices.
“As we enter fiscal 2023, the outlook for
National Fuel is excellent. Continued production growth at Seneca,
combined with a strong outlook for natural gas prices, should
translate to significant free cash flow, which will be used to
deleverage the balance sheet, pursue future growth opportunities,
and return capital to shareholders.”
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING
RESULTS
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
|
|
September 30, |
|
September 30, |
(in thousands except per
share amounts) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Reported GAAP Earnings |
|
$ |
158,143 |
|
|
$ |
86,962 |
|
|
$ |
566,021 |
|
|
$ |
363,647 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Items impacting comparability from West Coast asset sale (E&P)
(1) |
|
|
— |
|
|
|
— |
|
|
|
41,589 |
|
|
|
— |
|
Tax impact of items impacting comparability from West Coast asset
sale (1) |
|
|
— |
|
|
|
— |
|
|
|
(10,533 |
) |
|
|
— |
|
Unrealized (gain) loss on derivative asset (E&P) |
|
|
4,395 |
|
|
|
— |
|
|
|
4,395 |
|
|
|
— |
|
Tax impact of unrealized (gain) loss on derivative asset |
|
|
(1,203 |
) |
|
|
— |
|
|
|
(1,203 |
) |
|
|
— |
|
Reversal of deferred tax valuation allowance |
|
|
(24,850 |
) |
|
|
— |
|
|
|
(24,850 |
) |
|
|
— |
|
Remeasurement of deferred income taxes from Pennsylvania state
income tax rate reduction |
|
|
(28,406 |
) |
|
|
— |
|
|
|
(28,406 |
) |
|
|
— |
|
Reduction of other post-retirement regulatory liability
(Utility) |
|
|
— |
|
|
|
— |
|
|
|
(18,533 |
) |
|
|
— |
|
Tax impact of reduction of other post-retirement regulatory
liability |
|
|
— |
|
|
|
— |
|
|
|
3,892 |
|
|
|
— |
|
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
|
1,532 |
|
|
|
395 |
|
|
|
11,625 |
|
|
|
(181 |
) |
Tax impact of unrealized (gain) loss on other investments |
|
|
(322 |
) |
|
|
(83 |
) |
|
|
(2,441 |
) |
|
|
38 |
|
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 |
|
$ |
109,289 |
|
|
$ |
87,274 |
|
|
$ |
541,556 |
|
|
$ |
393,073 |
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
|
$ |
1.71 |
|
|
$ |
0.95 |
|
|
$ |
6.15 |
|
|
$ |
3.97 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Items impacting comparability from West Coast asset sale, net of
tax (E&P) (1) |
|
|
— |
|
|
|
— |
|
|
|
0.34 |
|
|
|
— |
|
Unrealized (gain) loss on derivative asset, net of tax
(E&P) |
|
|
0.03 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
Reversal of deferred tax valuation allowance |
|
|
(0.27 |
) |
|
|
— |
|
|
|
(0.27 |
) |
|
|
— |
|
Remeasurement of deferred income taxes from Pennsylvania state
income tax rate reduction |
|
|
(0.31 |
) |
|
|
— |
|
|
|
(0.31 |
) |
|
|
— |
|
Reduction of other post-retirement regulatory liability, net of tax
(Utility) |
|
|
— |
|
|
|
— |
|
|
|
(0.16 |
) |
|
|
— |
|
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
|
|
0.01 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
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 |
|
Rounding |
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted Operating
Results Per Share |
|
$ |
1.19 |
|
|
$ |
0.95 |
|
|
$ |
5.88 |
|
|
$ |
4.29 |
|
(1) |
|
Refer to non-GAAP
reconciliation on page 25 for a separate breakout of items
impacting comparability from the West Coast asset sale. |
FISCAL 2023 GUIDANCE UPDATE
National Fuel is revising its fiscal 2023
earnings guidance to reflect updated forecast assumptions and
projections, including the impact of revised natural gas price
expectations since the Company’s preliminary guidance was announced
in August 2022. The Company is now projecting that earnings will be
within the range of $6.40 to $6.90 per share, an increase of 13%
from the Company’s 2022 adjusted operating results at the midpoint
of the updated guidance range.
The Company is now assuming that NYMEX natural
gas prices will average $6.00 per MMBtu for the first six months of
fiscal 2023 (October-March) and $4.75 per MMBtu for the second half
of fiscal 2023 (April-September). For guidance purposes, the
Company’s updated natural gas price projections approximate the
current NYMEX forward curve and consider the impact of local sales
point differentials and new physical firm sales, transportation,
and financial hedge contracts.
Consistent with preliminary guidance, the
Exploration and Production segment’s fiscal 2023 net production
guidance range of 370 to 390 Bcfe remains unchanged. Seneca
currently has firm sales contracts in place for approximately 88%
of its projected fiscal 2023 Appalachian production, limiting its
exposure to in-basin markets. Approximately 67% of Seneca’s
expected Appalachian production is either matched by a financial
hedge, including a combination of swaps and no-cost collars, or
were entered into at a fixed price.
The Company’s consolidated and individual
segment capital expenditures guidance also remain unchanged from
the preliminary guidance. Other guidance assumptions remain largely
unchanged from the previous guidance. The details are outlined in
the table on page 8.
DISCUSSION OF FOURTH QUARTER RESULTS BY
SEGMENT
The following earnings discussion of each
operating segment for the quarter ended September 30, 2022 is
summarized in a tabular form on pages 9 and 10 of this report
(earnings drivers for the fiscal year ended September 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 primarily
natural gas reserves in Pennsylvania.
|
Three Months Ended |
|
September 30, |
(in thousands) |
2022 |
|
2021 |
|
Variance |
GAAP Earnings |
$ |
116,077 |
|
|
$ |
55,703 |
|
$ |
60,374 |
|
Unrealized (gain) loss on
derivative asset, net of tax |
|
3,192 |
|
|
|
— |
|
|
3,192 |
|
Reversal of deferred tax valuation allowance |
|
(28,589 |
) |
|
|
— |
|
|
(28,589 |
) |
Remeasurement of deferred income tax from Pennsylvania state income
tax rate reduction |
|
(16,152 |
) |
|
|
— |
|
|
(16,152 |
) |
Adjusted Operating
Results |
$ |
74,528 |
|
|
$ |
55,703 |
|
$ |
18,825 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
166,238 |
|
|
$ |
120,588 |
|
$ |
45,650 |
|
Seneca’s fourth quarter GAAP earnings, which
increased $60.4 million versus the prior year, include the impact
of several items noted in the table above. In particular, Seneca
reversed a valuation allowance of $28.6 million on deferred tax
assets related to certain state net operating loss and credit
carryforwards as these deferred tax assets are now expected to be
realized in the future. Seneca also recorded an income tax benefit
of $16.2 million from the remeasurement of deferred state income
taxes related to a prospective series of reductions in the
Pennsylvania state corporate income tax rate that was signed into
law in July 2022. In addition, during the fourth quarter, Seneca
recognized an unrealized loss of $4.4 million ($3.2 million
after-tax) due to a reduction in the implied fair value of an asset
related to contingent consideration in connection with the June
2022 sale of Seneca's California assets.
Excluding these items noted above, Seneca’s
earnings increased $18.8 million primarily due to higher realized
natural gas prices and higher natural gas production, which were
partially offset by the loss of earnings from Seneca's California
assets that were sold in June, as well as higher Appalachian
operating expenses, higher interest expense and a higher effective
income tax rate.
Seneca produced 87.9 Bcfe during the fourth
quarter, an increase of 8.3 Bcfe, or 10%, from the prior year. This
is a result of an 11.6 Bcf increase in natural gas production
primarily due to growth from Seneca's development program in
Appalachia. Seneca's crude oil production decreased 545 MBbls
versus the prior year due to Seneca's aforementioned sale of its
California assets in June 2022.
Seneca's average realized natural gas price,
after the impact of hedging and transportation costs, was $2.84 per
Mcf, an increase of $0.47 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.
Lease operating and transportation ("LOE")
expense was $0.71 per Mcfe, a decrease of $0.14 per Mcfe from the
prior year. General and administrative expense was $0.18 per Mcfe,
a decrease of $0.03 per Mcfe from the prior year. Depreciation,
depletion and amortization ("DD&A") expense was $0.60 per Mcfe,
an increase of $0.03 per Mcfe from the prior year.
On an absolute basis, LOE expense decreased $5.3
million primarily due to the impact of the third quarter sale of
Seneca's California assets, partly offset by increases in LOE
expense from higher transportation and gathering costs in
Appalachia as a result of increased production, as well as higher
workover and rental expenses in Appalachia. LOE expense includes
$52.1 million in intercompany expense for gathering and compression
services used to connect Seneca's Appalachian production to sales
points along interstate pipelines. The decrease in Seneca's other
operating expenses of $3.1 million was also primarily due to the
impact of the third quarter sale of Seneca's California assets.
DD&A expense increased $7.8 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.
Interest expense increased $2.5 million due
primarily to a higher weighted average interest rate on
intercompany short-term borrowings. Excluding the impact of the
elimination of the valuation allowance and remeasurement of
deferred income taxes from the reduction in the state income tax
rate in Pennsylvania, both of which are discussed above, Seneca's
effective income tax rate increased. This increase was primarily
driven by a reduction to the valuation allowance recorded in the
fiscal 2021 fourth quarter.
Proved Reserves Year-End
Update
Seneca’s total proved reserves at September 30,
2022 were 4,172 Bcfe, an increase of 319 Bcfe, or 8%, from
September 30, 2021. Seneca sold 154 Bcfe of proved reserves (81% of
which were oil reserves) with the sale of its California assets,
which represented substantially all of Seneca's oil reserves. As a
result of the sale, the proved reserves base is now comprised of
approximately 100% natural gas. Seneca also sold another 21 Bcfe of
proved reserves during fiscal 2022 related to the sale of certain
gas assets in Tioga County, Pennsylvania. Seneca’s proved developed
reserves at the end of fiscal 2022 were 3,314 Bcfe, representing
79% of total proved reserves, compared to 84% a year ago. In fiscal
2022, Seneca recorded 839 Bcfe of proved reserve extensions and
discoveries, and 8 Bcfe of net positive revisions due primarily to
certain price-related revisions, improvements in well performance
and changes in development plans. Adjusting for sales, Seneca
replaced 240% of its fiscal 2022 production.
Midstream Businesses
Pipeline and Storage Segment
The Pipeline and Storage segment’s operations
are carried out by National Fuel Gas Supply Corporation (“Supply
Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline
and Storage segment provides natural gas transportation and storage
services to affiliated and non-affiliated companies through an
integrated system of pipelines and underground natural gas storage
fields in western New York and Pennsylvania.
|
Three Months Ended |
|
September 30, |
(in thousands) |
2022 |
|
2021 |
|
Variance |
GAAP Earnings |
$ |
25,320 |
|
$ |
21,482 |
|
$ |
3,838 |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
59,819 |
|
$ |
49,131 |
|
$ |
10,688 |
The Pipeline and Storage segment’s fourth
quarter GAAP earnings increased $3.8 million versus the prior year
primarily due to an increase in operating revenues, partially
offset by higher operation and maintenance ("O&M") expense,
higher DD&A expense and a higher effective income tax rate. The
increase in operating revenues of $12.7 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 $2.1 million primarily due
to an increase in personnel 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. The increase in the Pipeline and Storage
segment's effective income tax rate was primarily driven by a
reduction in benefits associated with the tax sharing agreement
with affiliated companies combined with higher state income taxes
due to higher pre-tax earnings.
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 |
|
September 30, |
(in thousands) |
2022 |
|
2021 |
|
Variance |
GAAP Earnings |
$ |
31,224 |
|
|
$ |
18,597 |
|
$ |
12,627 |
|
Reversal of deferred tax valuation allowance |
|
3,739 |
|
|
|
— |
|
|
3,739 |
|
Remeasurement of deferred income tax from Pennsylvania state income
tax rate reduction |
|
(11,856 |
) |
|
|
— |
|
|
(11,856 |
) |
Adjusted Operating
Results |
$ |
23,107 |
|
|
$ |
18,597 |
|
$ |
4,510 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
43,335 |
|
|
$ |
37,858 |
|
$ |
5,477 |
|
The Gathering segment’s fourth quarter GAAP
earnings increased $12.6 million versus the prior year. Earnings
were positively impacted by an $11.9 million income tax benefit
recorded due to the remeasurement of deferred income taxes related
to the aforementioned reduction in the Pennsylvania corporate
income tax rate. Earnings were also impacted by the Gathering
segment's recognition of a $3.7 million increase in income tax
expense that was recorded as an offset to the reversal of a
valuation allowance described above in the Exploration and
Production segment due to the Gathering and Exploration and
Production segments' subsidiaries filing a combined state tax
return. Excluding these items, the Gathering segment's earnings
increased $4.5 million. The increase was primarily driven by higher
operating revenues, which were partially offset by higher O&M
expense. Operating revenues increased $6.7 million, or 14%,
primarily driven by a 14.0 Bcf increase in gathered volumes due to
an increase in natural gas production from both Seneca and
non-affiliated parties. The increase in O&M expense of $1.3
million was primarily due to higher costs for materials and higher
compression leasing expenses, which are both primarily attributable
to higher throughput, as well as an increase in personnel
costs.
Downstream Business
Utility Segment
The Utility segment operations are carried out
by National Fuel Gas Distribution Corporation (“Distribution”),
which sells or transports natural gas to customers located in
western New York and northwestern Pennsylvania.
|
Three Months Ended |
|
September 30, |
(in thousands) |
2022 |
|
2021 |
|
Variance |
GAAP Earnings |
$ |
(10,852 |
) |
|
$ |
(5,587 |
) |
|
$ |
(5,265 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
6,270 |
|
|
$ |
11,093 |
|
|
$ |
(4,823 |
) |
The Utility segment’s fourth quarter net loss
was $5.3 million higher than the net loss in the prior-year fourth
quarter primarily due to higher O&M and interest expense,
partially offset by higher customer margin (operating revenues less
purchased gas sold) and a decrease in non-service post-retirement
benefit costs recorded in other income (deductions). The increase
in O&M expense of $6.5 million was primarily attributable to
higher personnel costs and higher pipeline integrity expenses.
Interest expense increased $1.7 million due primarily to a higher
weighted average interest rate on intercompany short-term
borrowings. The increase in customer margin was due primarily to
the positive impact of adjustments related to certain regulatory
rate and cost recovery mechanisms subject to annual reconciliation,
partially offset by a reduction in base rates in Pennsylvania as a
result of a rate proceeding 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).
Corporate and All Other
The Company’s operations that are included in
Corporate and All Other generated a combined net loss of $3.6
million in the current year fourth quarter, which was $0.4 million
higher than the combined net loss of $3.2 million in the prior-year
fourth quarter. The increase in net loss was primarily driven by a
higher amount of unrealized losses on investment securities
recognized in the current quarter as compared to the prior-year
fourth quarter.
EARNINGS TELECONFERENCE
The Company will host a conference call on
Friday, November 4, 2022, at 11 a.m. Eastern Time to discuss this
announcement. To pre-register for this call (recommended), please
visit https://www.netroadshow.com/events/login?show=d40ff074&confId=42546.
After registering, you will receive your access details via email.
To join by telephone on the day of the call, dial U.S. toll free
1-844–200–6205 and provide Access Code 879958. The teleconference
will be simultaneously webcast online and can be accessed on the
NFG Investor Relations website at investor.nationalfuelgas.com. An
audio replay of the teleconference call will be available until
Friday November 11, 2022. To access the telephone replay, dial U.S.
toll free 866-813-9403 and provide Access Code 533110.
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.
Certain statements contained herein, including
statements identified by the use of the words “anticipates,”
“estimates,” “expects,” “forecasts,” “intends,” “plans,”
“predicts,” “projects,” “believes,” “seeks,” “will,” “may” and
similar expressions, and statements which are other than statements
of historical facts, are “forward-looking statements” as defined by
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, which
could cause actual results or outcomes to differ materially from
those expressed in the forward-looking statements. The Company’s
expectations, beliefs and projections contained herein are
expressed in good faith and are believed to have a reasonable
basis, but there can be no assurance that such expectations,
beliefs or projections will result or be achieved or accomplished.
In addition to other factors, the following are important factors
that could cause actual results to differ materially from those
discussed in the forward-looking statements: changes in laws,
regulations or judicial interpretations to which the Company is
subject, including those involving derivatives, taxes, safety,
employment, climate change, other environmental matters, real
property, and exploration and production activities such as
hydraulic fracturing; governmental/regulatory actions, initiatives
and proceedings, including those involving rate cases (which
address, among other things, target rates of return, rate design,
retained natural gas and system modernization),
environmental/safety requirements, affiliate relationships,
industry structure, and franchise renewal; the Company’s ability to
estimate accurately the time and resources necessary to meet
emissions targets; governmental/regulatory actions and/or market
pressures to reduce or eliminate reliance on natural gas; changes
in economic conditions, including inflationary pressures, supply
chain issues, liquidity challenges, and global, national or
regional recessions, and their effect on the demand for, and
customers’ ability to pay for, the Company’s products and services;
changes in the price of natural gas; the creditworthiness or
performance of the Company’s key suppliers, customers and
counterparties; financial and economic conditions, including the
availability of credit, and occurrences affecting the Company’s
ability to obtain financing on acceptable terms for working
capital, capital expenditures and other investments, including any
downgrades in the Company’s credit ratings and changes in interest
rates and other capital market conditions; impairments under the
SEC’s full cost ceiling test for natural gas reserves; increased
costs or delays or changes in plans with respect to Company
projects or related projects of other companies, as well as
difficulties or delays in obtaining necessary governmental
approvals, permits or orders or in obtaining the cooperation of
interconnecting facility operators; the Company's ability to
complete planned strategic transactions; 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 and costs, title disputes, weather
conditions, shortages, delays or unavailability of equipment and
services required in drilling operations, insufficient gathering,
processing and transportation capacity, the need to obtain
governmental approvals and permits, and compliance with
environmental laws and regulations; increasing health care costs
and the resulting effect on health insurance premiums and on the
obligation to provide other post-retirement benefits; other changes
in price differentials between similar quantities of natural gas
having different quality, heating value, hydrocarbon mix or
delivery date; the cost and effects of legal and administrative
claims against the Company or activist shareholder campaigns to
effect changes at the Company; negotiations with the collective
bargaining units representing the Company's workforce, including
potential work stoppages during negotiations; uncertainty of gas
reserve estimates; significant differences between the Company’s
projected and actual production levels for natural gas; changes in
demographic patterns and weather conditions (including those
related to climate change); changes in the availability, price or
accounting treatment of derivative financial instruments; changes
in laws, actuarial assumptions, the interest rate environment and
the return on plan/trust assets related to the Company’s pension
and other post-retirement benefits, which can affect future funding
obligations and costs and plan liabilities; economic disruptions or
uninsured losses resulting from major accidents, fires, severe
weather, natural disasters, terrorist activities or acts of war, as
well as economic and operational disruptions due to third-party
outages; significant differences between the Company’s projected
and actual capital expenditures and operating expenses; or
increasing costs of insurance, changes in coverage and the ability
to obtain insurance. The Company disclaims any obligation to update
any forward-looking statements to reflect events or circumstances
after the date thereof.
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
GUIDANCE SUMMARY
As discussed on page 2, the Company is revising
its earnings guidance for fiscal 2023. Additional details on the
Company's forecast assumptions and business segment guidance are
outlined in the table below.
While the Company expects to record certain
adjustments to unrealized gain or loss on a derivative asset and
unrealized gain or loss on investments during the fiscal year
ending September 30, 2023, 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.
|
Preliminary FY 2023 Guidance |
|
Updated FY 2023 Guidance |
Consolidated Earnings
per Share, excluding items impacting comparability |
$7.25 to $7.75 |
|
$6.40 to $6.90 |
Consolidated Effective
Tax Rate |
~ 25.5 - 26% |
|
~ 25.5 - 26% |
|
|
|
|
Capital
Expenditures (Millions) |
|
|
|
Exploration and Production |
$525 - $575 |
|
$525 - $575 |
Pipeline and Storage |
$110 - $130 |
|
$110 - $130 |
Gathering |
$85 - $105 |
|
$85 - $105 |
Utility |
$110 - $130 |
|
$110 - $130 |
Consolidated Capital
Expenditures |
$830 - $940 |
|
$830 - $940 |
|
|
|
|
Exploration &
Production Segment Guidance |
|
|
|
|
|
|
|
Commodity Price Assumptions |
|
|
|
NYMEX natural gas price (Oct - Mar | Apr - Sep) |
$7.50 /MMBtu l $5.00 /MMBtu |
|
$6.00 /MMBtu l $4.75 /MMBtu |
Appalachian basin spot price (Oct - Mar | Apr - Sep) |
$6.50 /MMBtu l $3.90 /MMBtu |
|
$4.95 /MMBtu l $3.55 /MMBtu |
|
|
|
|
Production (Bcfe) |
370 to 390 |
|
370 to 390 |
|
|
|
|
E&P Operating Costs ($/Mcfe) |
|
|
|
LOE |
$0.67 - $0.69 |
|
$0.67 - $0.69 |
G&A |
$0.17 - $0.19 |
|
$0.17 - $0.19 |
DD&A |
$0.60 - $0.64 |
|
$0.60 - $0.64 |
|
|
|
|
Other Business Segment
Guidance (Millions) |
|
|
|
Gathering Segment Revenues |
$235 - $250 |
|
$230 - $245 |
Pipeline and Storage Segment Revenues |
$360 - $380 |
|
$360 - $380 |
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
QUARTER ENDED SEPTEMBER 30, 2022 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2021 GAAP earnings |
$ |
55,703 |
|
|
$ |
21,482 |
|
|
$ |
18,597 |
|
|
$ |
(5,587 |
) |
|
$ |
(3,233 |
) |
|
$ |
86,962 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
|
395 |
|
|
|
395 |
|
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
|
(83 |
) |
|
|
(83 |
) |
Fourth quarter 2021
adjusted operating results |
|
55,703 |
|
|
|
21,482 |
|
|
|
18,597 |
|
|
|
(5,587 |
) |
|
|
(2,921 |
) |
|
|
87,274 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
21,670 |
|
|
|
|
|
|
|
|
|
|
|
21,670 |
|
Higher (lower) crude oil
production |
|
(25,805 |
) |
|
|
|
|
|
|
|
|
|
|
(25,805 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
32,485 |
|
|
|
|
|
|
|
|
|
|
|
32,485 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
10,052 |
|
|
|
5,330 |
|
|
|
|
|
|
|
15,382 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and weather |
|
|
|
|
|
|
|
507 |
|
|
|
|
|
507 |
|
Impact of new rates |
|
|
|
|
|
|
|
(465 |
) |
|
|
|
|
(465 |
) |
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
1,108 |
|
|
|
|
|
1,108 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
4,201 |
|
|
|
|
|
|
|
|
|
|
|
4,201 |
|
Lower (higher) operating
expenses |
|
2,410 |
|
|
|
(1,694 |
) |
|
|
(1,003 |
) |
|
|
(4,960 |
) |
|
|
(762 |
) |
|
|
(6,009 |
) |
Lower (higher) property,
franchise and other taxes |
|
653 |
|
|
|
|
|
|
|
|
|
|
|
653 |
|
Lower (higher) depreciation /
depletion |
|
(6,180 |
) |
|
|
(1,309 |
) |
|
|
|
|
|
|
|
|
(7,489 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
1,093 |
|
|
|
|
|
|
|
939 |
|
|
|
(1,386 |
) |
|
|
646 |
|
(Higher) lower interest
expense |
|
(2,000 |
) |
|
|
(1,032 |
) |
|
|
|
|
(1,314 |
) |
|
|
1,934 |
|
|
|
(2,412 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
(10,151 |
) |
|
|
(1,844 |
) |
|
|
441 |
|
|
|
(669 |
) |
|
|
374 |
|
|
|
(11,849 |
) |
All other / rounding |
|
449 |
|
|
|
(335 |
) |
|
|
(258 |
) |
|
|
(411 |
) |
|
|
(53 |
) |
|
|
(608 |
) |
Fourth quarter 2022
adjusted operating results |
|
74,528 |
|
|
|
25,320 |
|
|
|
23,107 |
|
|
|
(10,852 |
) |
|
|
(2,814 |
) |
|
|
109,289 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset |
|
(4,395 |
) |
|
|
|
|
|
|
|
|
|
|
(4,395 |
) |
Tax impact of unrealized gain
(loss) on derivative asset |
|
1,203 |
|
|
|
|
|
|
|
|
|
|
|
1,203 |
|
Reversal of deferred tax
valuation allowance |
|
28,589 |
|
|
|
|
|
(3,739 |
) |
|
|
|
|
|
|
24,850 |
|
Remeasurement of deferred
income taxes from Pennsylvania state income tax rate reduction |
|
16,152 |
|
|
|
|
|
11,856 |
|
|
|
|
|
398 |
|
|
|
28,406 |
|
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
(1,532 |
) |
|
|
(1,532 |
) |
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
322 |
|
|
|
322 |
|
Fourth quarter 2022
GAAP earnings |
$ |
116,077 |
|
|
$ |
25,320 |
|
|
$ |
31,224 |
|
|
$ |
(10,852 |
) |
|
$ |
(3,626 |
) |
|
$ |
158,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not
reflect intercompany
eliminations. |
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
QUARTER ENDED SEPTEMBER 30, 2022 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2021 GAAP earnings per share |
$ |
0.61 |
|
|
$ |
0.23 |
|
|
$ |
0.20 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.95 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
Fourth quarter 2021
adjusted operating results per share |
|
0.61 |
|
|
|
0.23 |
|
|
|
0.20 |
|
|
|
(0.06 |
) |
|
|
(0.03 |
) |
|
|
0.95 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
0.24 |
|
|
|
|
|
|
|
|
|
|
|
0.24 |
|
Higher (lower) crude oil
production |
|
(0.28 |
) |
|
|
|
|
|
|
|
|
|
|
(0.28 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
0.35 |
|
|
|
|
|
|
|
|
|
|
|
0.35 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
0.11 |
|
|
|
0.06 |
|
|
|
|
|
|
|
0.17 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
0.01 |
|
|
|
|
|
0.01 |
|
Impact of new rates |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
(0.01 |
) |
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
0.01 |
|
|
|
|
|
0.01 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
0.05 |
|
|
|
|
|
|
|
|
|
|
|
0.05 |
|
Lower (higher) operating
expenses |
|
0.03 |
|
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.05 |
) |
|
|
(0.01 |
) |
|
|
(0.06 |
) |
Lower (higher) property,
franchise and other taxes |
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
0.01 |
|
Lower (higher) depreciation /
depletion |
|
(0.07 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
(0.08 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
0.01 |
|
|
|
|
|
|
|
0.01 |
|
|
|
(0.02 |
) |
|
|
— |
|
(Higher) lower interest
expense |
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
|
|
(0.01 |
) |
|
|
0.02 |
|
|
|
(0.02 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
(0.11 |
) |
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.14 |
) |
All other / rounding |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.02 |
|
|
|
(0.01 |
) |
Fourth quarter 2022
adjusted operating results per share |
|
0.81 |
|
|
|
0.27 |
|
|
|
0.25 |
|
|
|
(0.12 |
) |
|
|
(0.02 |
) |
|
|
1.19 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset, net of tax |
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
(0.03 |
) |
Reversal of deferred tax
valuation allowance |
|
0.31 |
|
|
|
|
|
(0.04 |
) |
|
|
|
|
|
|
0.27 |
|
Remeasurement of deferred
income taxes from Pennsylvania state income tax rate reduction |
|
0.18 |
|
|
|
|
|
0.13 |
|
|
|
|
|
— |
|
|
|
0.31 |
|
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Rounding |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
(0.02 |
) |
Fourth quarter 2022
GAAP earnings per share |
$ |
1.26 |
|
|
$ |
0.27 |
|
|
$ |
0.34 |
|
|
$ |
(0.12 |
) |
|
$ |
(0.04 |
) |
|
$ |
1.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not
reflect intercompany
eliminations. |
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
TWELVE MONTHS ENDED SEPTEMBER 30, 2022 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
Fiscal 2021 GAAP earnings |
$ |
101,916 |
|
|
$ |
92,542 |
|
|
$ |
80,274 |
|
|
$ |
54,335 |
|
|
$ |
34,580 |
|
|
$ |
363,647 |
|
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 |
|
|
|
|
|
|
|
|
|
(181 |
) |
|
|
(181 |
) |
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
|
38 |
|
|
|
38 |
|
Fiscal 2021 adjusted
operating results |
|
167,798 |
|
|
|
92,542 |
|
|
|
80,958 |
|
|
|
54,335 |
|
|
|
(2,560 |
) |
|
|
393,073 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
51,264 |
|
|
|
|
|
|
|
|
|
|
|
51,264 |
|
Higher (lower) crude oil
production |
|
(28,169 |
) |
|
|
|
|
|
|
|
|
|
|
(28,169 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
126,330 |
|
|
|
|
|
|
|
|
|
|
|
126,330 |
|
Higher (lower) realized crude
oil prices, after hedging |
|
18,071 |
|
|
|
|
|
|
|
|
|
|
|
18,071 |
|
Higher (lower) other operating
revenues |
|
5,037 |
|
|
|
|
|
|
|
|
|
|
|
5,037 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
25,738 |
|
|
|
17,047 |
|
|
|
|
|
|
|
42,785 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
2,887 |
|
|
|
|
|
2,887 |
|
Impact of new rates |
|
|
|
|
|
|
|
(5,596 |
) |
|
|
|
|
(5,596 |
) |
System modernization tracker
revenues |
|
|
|
|
|
|
|
3,585 |
|
|
|
|
|
3,585 |
|
Higher (lower) energy
marketing margins |
|
|
|
|
|
|
|
|
|
1,287 |
|
|
|
1,287 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(13,112 |
) |
|
|
|
|
|
|
|
|
|
|
(13,112 |
) |
Lower (higher) operating
expenses |
|
(5,432 |
) |
|
|
(7,571 |
) |
|
|
(3,181 |
) |
|
|
(9,502 |
) |
|
|
995 |
|
|
|
(24,691 |
) |
Lower (higher) property,
franchise and other taxes |
|
(2,484 |
) |
|
|
(800 |
) |
|
|
|
|
|
|
|
|
(3,284 |
) |
Lower (higher) depreciation /
depletion |
|
(20,268 |
) |
|
|
(4,163 |
) |
|
|
(1,302 |
) |
|
|
|
|
|
|
(25,733 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
1,676 |
|
|
|
|
|
|
|
9,767 |
|
|
|
(3,262 |
) |
|
|
8,181 |
|
(Higher) lower interest
expense |
|
1,176 |
|
|
|
(1,198 |
) |
|
|
|
|
(1,992 |
) |
|
|
2,030 |
|
|
|
16 |
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax expense / effective tax rate |
|
(6,318 |
) |
|
|
(2,279 |
) |
|
|
(578 |
) |
|
|
574 |
|
|
|
(2,569 |
) |
|
|
(11,170 |
) |
All other / rounding |
|
2 |
|
|
|
288 |
|
|
|
50 |
|
|
|
249 |
|
|
|
206 |
|
|
|
795 |
|
Fiscal 2022 adjusted
operating results |
|
295,571 |
|
|
|
102,557 |
|
|
|
92,994 |
|
|
|
54,307 |
|
|
|
(3,873 |
) |
|
|
541,556 |
|
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 Cost asset sale |
|
2,455 |
|
|
|
|
|
|
|
|
|
|
|
2,455 |
|
Unrealized gain (loss) on
derivative asset |
|
(4,395 |
) |
|
|
|
|
|
|
|
|
|
|
(4,395 |
) |
Tax impact of unrealized gain
(loss) on derivative asset |
|
1,203 |
|
|
|
|
|
|
|
|
|
|
|
1,203 |
|
Reversal of deferred tax
valuation allowance |
|
28,589 |
|
|
|
|
|
(3,739 |
) |
|
|
|
|
|
|
24,850 |
|
Remeasurement of deferred
income taxes from Pennsylvania state income tax rate reduction |
|
16,152 |
|
|
|
|
|
11,856 |
|
|
|
|
|
398 |
|
|
|
28,406 |
|
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
(11,625 |
) |
|
|
(11,625 |
) |
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
2,441 |
|
|
|
2,441 |
|
Fiscal 2022 GAAP
earnings |
$ |
306,064 |
|
|
$ |
102,557 |
|
|
$ |
101,111 |
|
|
$ |
68,948 |
|
|
$ |
(12,659 |
) |
|
$ |
566,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not
reflect intercompany eliminations.
|
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
TWELVE MONTHS ENDED SEPTEMBER 30, 2022 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
Fiscal 2021 GAAP earnings per share |
$ |
1.11 |
|
|
$ |
1.01 |
|
|
$ |
0.88 |
|
|
$ |
0.59 |
|
|
$ |
0.38 |
|
|
$ |
3.97 |
|
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 |
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
Fiscal 2021 adjusted
operating results per share |
|
1.83 |
|
|
|
1.01 |
|
|
|
0.88 |
|
|
|
0.59 |
|
|
|
(0.02 |
) |
|
|
4.29 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
0.56 |
|
|
|
|
|
|
|
|
|
|
|
0.56 |
|
Higher (lower) crude oil
production |
|
(0.31 |
) |
|
|
|
|
|
|
|
|
|
|
(0.31 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
1.37 |
|
|
|
|
|
|
|
|
|
|
|
1.37 |
|
Higher (lower) realized crude
oil prices, after hedging |
|
0.20 |
|
|
|
|
|
|
|
|
|
|
|
0.20 |
|
Higher (lower) other operating
revenues |
|
0.05 |
|
|
|
|
|
|
|
|
|
|
|
0.05 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
0.28 |
|
|
|
0.19 |
|
|
|
|
|
|
|
0.47 |
|
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 |
|
Higher (lower) energy
marketing margins |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.01 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(0.14 |
) |
|
|
|
|
|
|
|
|
|
|
(0.14 |
) |
Lower (higher) operating
expenses |
|
(0.06 |
) |
|
|
(0.08 |
) |
|
|
(0.03 |
) |
|
|
(0.10 |
) |
|
|
0.01 |
|
|
|
(0.26 |
) |
Lower (higher) property,
franchise and other taxes |
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
(0.04 |
) |
Lower (higher) depreciation /
depletion |
|
(0.22 |
) |
|
|
(0.05 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
(0.28 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
0.02 |
|
|
|
|
|
|
|
0.11 |
|
|
|
(0.04 |
) |
|
|
0.09 |
|
(Higher) lower interest
expense |
|
0.01 |
|
|
|
(0.01 |
) |
|
|
|
|
(0.02 |
) |
|
|
0.02 |
|
|
|
— |
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
(0.07 |
) |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.03 |
) |
|
|
(0.12 |
) |
All other / rounding |
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.02 |
) |
Fiscal 2022 adjusted
operating results per share |
|
3.21 |
|
|
|
1.11 |
|
|
|
1.01 |
|
|
|
0.59 |
|
|
|
(0.04 |
) |
|
|
5.88 |
|
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
derivative asset, net of tax |
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
(0.03 |
) |
Reversal of deferred tax
valuation allowance |
|
0.31 |
|
|
|
|
|
(0.04 |
) |
|
|
|
|
|
|
0.27 |
|
Remeasurement of deferred
income taxes from Pennsylvania state income tax rate reduction |
|
0.18 |
|
|
|
|
|
0.13 |
|
|
|
|
|
— |
|
|
|
0.31 |
|
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
(0.10 |
) |
|
|
(0.10 |
) |
Rounding |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
0.01 |
|
|
|
— |
|
Fiscal 2022 GAAP
earnings per share |
$ |
3.32 |
|
|
$ |
1.11 |
|
|
$ |
1.10 |
|
|
$ |
0.75 |
|
|
$ |
(0.13 |
) |
|
$ |
6.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not
reflect intercompany
eliminations. |
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
(Thousands of Dollars, except
per share amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
September 30, |
|
September 30, |
|
|
(Unaudited) |
|
(Unaudited) |
|
SUMMARY OF OPERATIONS |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Operating Revenues: |
|
|
|
|
|
|
|
|
Utility and Energy Marketing Revenues |
$ |
112,252 |
|
|
$ |
80,302 |
|
|
$ |
897,916 |
|
|
$ |
667,549 |
|
|
Exploration and Production and Other Revenues |
|
252,035 |
|
|
|
215,664 |
|
|
|
1,010,629 |
|
|
|
837,597 |
|
|
Pipeline and Storage and Gathering Revenues |
|
70,859 |
|
|
|
60,022 |
|
|
|
277,501 |
|
|
|
237,513 |
|
|
|
|
435,146 |
|
|
|
355,988 |
|
|
|
2,186,046 |
|
|
|
1,742,659 |
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
Purchased Gas |
|
22,925 |
|
|
|
(5,190 |
) |
|
|
392,093 |
|
|
|
171,827 |
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
Utility and Energy Marketing |
|
46,535 |
|
|
|
40,026 |
|
|
|
193,058 |
|
|
|
179,547 |
|
|
Exploration and Production and Other |
|
31,554 |
|
|
|
46,007 |
|
|
|
191,572 |
|
|
|
173,041 |
|
|
Pipeline and Storage and Gathering |
|
39,138 |
|
|
|
35,747 |
|
|
|
136,571 |
|
|
|
123,218 |
|
|
Property, Franchise and Other Taxes |
|
23,089 |
|
|
|
23,454 |
|
|
|
101,182 |
|
|
|
94,713 |
|
|
Depreciation, Depletion and Amortization |
|
94,109 |
|
|
|
83,671 |
|
|
|
369,790 |
|
|
|
335,303 |
|
|
Impairment of Oil and Gas Producing Properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,152 |
|
|
|
|
257,350 |
|
|
|
223,715 |
|
|
|
1,384,266 |
|
|
|
1,153,801 |
|
|
Gain on Sale of Assets |
|
— |
|
|
|
— |
|
|
|
12,736 |
|
|
|
51,066 |
|
|
Operating Income |
|
177,796 |
|
|
|
132,273 |
|
|
|
814,516 |
|
|
|
639,924 |
|
|
|
|
|
|
|
|
|
|
|
Other Expense: |
|
|
|
|
|
|
|
|
Other Income (Deductions) |
|
(4,800 |
) |
|
|
(160 |
) |
|
|
(1,509 |
) |
|
|
(15,238 |
) |
|
Interest Expense on Long-Term Debt |
|
(30,207 |
) |
|
|
(30,161 |
) |
|
|
(120,507 |
) |
|
|
(141,457 |
) |
|
Other Interest Expense |
|
(3,289 |
) |
|
|
(270 |
) |
|
|
(9,850 |
) |
|
|
(4,900 |
) |
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
|
139,500 |
|
|
|
101,682 |
|
|
|
682,650 |
|
|
|
478,329 |
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
(Benefit) |
|
(18,643 |
) |
|
|
14,720 |
|
|
|
116,629 |
|
|
|
114,682 |
|
|
|
|
|
|
|
|
|
|
|
Net Income Available for
Common Stock |
$ |
158,143 |
|
|
$ |
86,962 |
|
|
$ |
566,021 |
|
|
$ |
363,647 |
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share |
|
|
|
|
|
|
|
|
Basic |
$ |
1.73 |
|
|
$ |
0.95 |
|
|
$ |
6.19 |
|
|
$ |
3.99 |
|
|
Diluted |
$ |
1.71 |
|
|
$ |
0.95 |
|
|
$ |
6.15 |
|
|
$ |
3.97 |
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares: |
|
|
|
|
|
|
|
|
Used in Basic Calculation |
|
91,476,535 |
|
|
|
91,181,292 |
|
|
|
91,410,625 |
|
|
|
91,130,941 |
|
|
Used in Diluted
Calculation |
|
92,218,581 |
|
|
|
91,851,443 |
|
|
|
92,107,066 |
|
|
|
91,684,583 |
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
|
|
|
September 30, |
|
September 30, |
(Thousands of Dollars) |
2022 |
|
2021 |
ASSETS |
|
|
|
Property, Plant and Equipment |
$ |
12,551,909 |
|
|
$ |
13,103,639 |
|
Less -
Accumulated Depreciation, Depletion and Amortization |
|
5,985,432 |
|
|
|
6,719,356 |
|
Net Property, Plant and Equipment |
|
6,566,477 |
|
|
|
6,384,283 |
|
Current Assets: |
|
|
|
Cash and Temporary Cash
Investments |
|
46,048 |
|
|
|
31,528 |
|
Hedging Collateral
Deposits |
|
91,670 |
|
|
|
88,610 |
|
Receivables - Net |
|
361,626 |
|
|
|
205,294 |
|
Unbilled Revenue |
|
30,075 |
|
|
|
17,000 |
|
Gas Stored Underground |
|
32,364 |
|
|
|
33,669 |
|
Materials, Supplies and
Emission Allowances |
|
40,637 |
|
|
|
53,560 |
|
Unrecovered Purchased Gas
Costs |
|
99,342 |
|
|
|
33,128 |
|
Other Current Assets |
|
59,369 |
|
|
|
59,660 |
|
Total Current Assets |
|
761,131 |
|
|
|
522,449 |
|
Other Assets: |
|
|
|
Recoverable Future Taxes |
|
106,247 |
|
|
|
121,992 |
|
Unamortized Debt Expense |
|
8,884 |
|
|
|
10,589 |
|
Other Regulatory Assets |
|
67,101 |
|
|
|
60,145 |
|
Deferred Charges |
|
77,472 |
|
|
|
59,939 |
|
Other Investments |
|
95,025 |
|
|
|
149,632 |
|
Goodwill |
|
5,476 |
|
|
|
5,476 |
|
Prepaid Pension and
Post-Retirement Benefit Costs |
|
196,597 |
|
|
|
149,151 |
|
Fair Value of Derivative
Financial Instruments |
|
9,175 |
|
|
|
— |
|
Other |
|
2,677 |
|
|
|
1,169 |
|
Total Other Assets |
|
568,654 |
|
|
|
558,093 |
|
Total Assets |
$ |
7,896,262 |
|
|
$ |
7,464,825 |
|
CAPITALIZATION AND LIABILITIES |
|
|
|
Capitalization: |
|
|
|
Comprehensive Shareholders'
Equity |
|
|
|
Common Stock, $1 Par Value
Authorized - 200,000,000 Shares; Issued and |
|
|
|
Outstanding - 91,478,064
Shares and 91,181,549 Shares, Respectively |
$ |
91,478 |
|
|
$ |
91,182 |
|
Paid in Capital |
|
1,027,066 |
|
|
|
1,017,446 |
|
Earnings Reinvested in the
Business |
|
1,587,085 |
|
|
|
1,191,175 |
|
Accumulated Other Comprehensive Loss |
|
(625,733 |
) |
|
|
(513,597 |
) |
Total Comprehensive Shareholders' Equity |
|
2,079,896 |
|
|
|
1,786,206 |
|
Long-Term Debt, Net of Current Portion and Unamortized Discount and
Debt Issuance Costs |
|
2,083,409 |
|
|
|
2,628,687 |
|
Total Capitalization |
|
4,163,305 |
|
|
|
4,414,893 |
|
Current and Accrued Liabilities: |
|
|
|
Notes Payable to Banks and
Commercial Paper |
|
60,000 |
|
|
|
158,500 |
|
Current Portion of Long-Term
Debt |
|
549,000 |
|
|
|
— |
|
Accounts Payable |
|
178,945 |
|
|
|
171,655 |
|
Amounts Payable to
Customers |
|
419 |
|
|
|
21 |
|
Dividends Payable |
|
43,452 |
|
|
|
41,487 |
|
Interest Payable on Long-Term
Debt |
|
17,376 |
|
|
|
17,376 |
|
Customer Advances |
|
26,108 |
|
|
|
17,223 |
|
Customer Security
Deposits |
|
24,283 |
|
|
|
19,292 |
|
Other Accruals and Current
Liabilities |
|
257,327 |
|
|
|
194,169 |
|
Fair
Value of Derivative Financial Instruments |
|
785,659 |
|
|
|
616,410 |
|
Total Current and Accrued Liabilities |
|
1,942,569 |
|
|
|
1,236,133 |
|
Other Liabilities: |
|
|
|
Deferred Income Taxes |
|
698,229 |
|
|
|
660,420 |
|
Taxes Refundable to
Customers |
|
362,098 |
|
|
|
354,089 |
|
Cost of Removal Regulatory
Liability |
|
259,947 |
|
|
|
245,636 |
|
Other Regulatory
Liabilities |
|
188,803 |
|
|
|
200,643 |
|
Pension and Other
Post-Retirement Liabilities |
|
3,065 |
|
|
|
7,526 |
|
Asset Retirement
Obligations |
|
161,545 |
|
|
|
209,639 |
|
Other
Liabilities |
|
116,701 |
|
|
|
135,846 |
|
Total Other Liabilities |
|
1,790,388 |
|
|
|
1,813,799 |
|
Commitments and Contingencies |
|
— |
|
|
|
— |
|
Total Capitalization and Liabilities |
$ |
7,896,262 |
|
|
$ |
7,464,825 |
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
|
Twelve Months Ended |
|
|
September 30, |
(Thousands of Dollars) |
|
2022 |
|
2021 |
|
|
|
|
|
Operating Activities: |
|
|
|
|
Net Income Available for Common Stock |
|
$ |
566,021 |
|
|
$ |
363,647 |
|
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 |
|
|
369,790 |
|
|
|
335,303 |
|
Deferred Income Taxes |
|
|
104,415 |
|
|
|
105,993 |
|
Premium Paid on Early Redemption of Debt |
|
|
— |
|
|
|
15,715 |
|
Stock-Based Compensation |
|
|
19,506 |
|
|
|
17,065 |
|
Reduction of Other Post-Retirement Regulatory Liability |
|
|
(18,533 |
) |
|
|
— |
|
Other |
|
|
31,983 |
|
|
|
10,896 |
|
Change in: |
|
|
|
|
Receivables and Unbilled Revenue |
|
|
(168,769 |
) |
|
|
(61,413 |
) |
Gas Stored Underground and Materials, Supplies and Emission
Allowances |
|
|
3,109 |
|
|
|
(2,014 |
) |
Unrecovered Purchased Gas Costs |
|
|
(66,214 |
) |
|
|
(33,128 |
) |
Other Current Assets |
|
|
291 |
|
|
|
(11,972 |
) |
Accounts Payable |
|
|
11,907 |
|
|
|
31,352 |
|
Amounts Payable to Customers |
|
|
398 |
|
|
|
(10,767 |
) |
Customer Advances |
|
|
8,885 |
|
|
|
1,904 |
|
Customer Security Deposits |
|
|
4,991 |
|
|
|
2,093 |
|
Other Accruals and Current Liabilities |
|
|
34,260 |
|
|
|
34,314 |
|
Other Assets |
|
|
(58,924 |
) |
|
|
1,250 |
|
Other Liabilities |
|
|
(17,859 |
) |
|
|
(33,771 |
) |
Net Cash Provided by Operating Activities |
|
$ |
812,521 |
|
|
$ |
791,553 |
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
Capital Expenditures |
|
$ |
(811,826 |
) |
|
$ |
(751,734 |
) |
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 |
|
|
8,683 |
|
|
|
13,935 |
|
Net Cash Used in Investing Activities |
|
$ |
(518,704 |
) |
|
$ |
(633,217 |
) |
|
|
|
|
|
Financing Activities: |
|
|
|
|
Changes in Notes Payable to
Banks and Commercial Paper |
|
$ |
(98,500 |
) |
|
$ |
128,500 |
|
Reduction of Long-Term
Debt |
|
|
— |
|
|
|
(515,715 |
) |
Dividends Paid on Common
Stock |
|
|
(168,147 |
) |
|
|
(163,089 |
) |
Net Proceeds From Issuance of
Long-Term Debt |
|
|
— |
|
|
|
495,267 |
|
Net
Repurchases of Common Stock |
|
|
(9,590 |
) |
|
|
(3,702 |
) |
Net Cash Used in Financing Activities |
|
$ |
(276,237 |
) |
|
$ |
(58,739 |
) |
|
|
|
|
|
Net Increase in Cash, Cash
Equivalents, and Restricted Cash |
|
|
17,580 |
|
|
|
99,597 |
|
Cash,
Cash Equivalents, and Restricted Cash at Beginning of Period |
|
|
120,138 |
|
|
|
20,541 |
|
Cash, Cash Equivalents, and Restricted Cash at September 30 |
|
$ |
137,718 |
|
|
$ |
120,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
UPSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Thousands of Dollars, except
per share amounts) |
September 30, |
|
September 30, |
EXPLORATION AND
PRODUCTION SEGMENT |
2022 |
|
2021 |
|
Variance |
|
2022 |
|
2021 |
|
Variance |
Total Operating Revenues |
$ |
252,035 |
|
|
$ |
215,581 |
|
|
$ |
36,454 |
|
|
$ |
1,010,464 |
|
$ |
836,697 |
|
$ |
173,767 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
|
General and Administrative Expense |
|
15,664 |
|
|
|
16,957 |
|
|
|
(1,293 |
) |
|
|
79,061 |
|
|
67,973 |
|
|
11,088 |
|
Lease Operating and Transportation Expense |
|
62,701 |
|
|
|
68,019 |
|
|
|
(5,318 |
) |
|
|
283,914 |
|
|
267,316 |
|
|
16,598 |
|
All Other Operation and Maintenance Expense |
|
1,957 |
|
|
|
3,715 |
|
|
|
(1,758 |
) |
|
|
20,140 |
|
|
14,659 |
|
|
5,481 |
|
Property, Franchise and Other Taxes |
|
5,475 |
|
|
|
6,302 |
|
|
|
(827 |
) |
|
|
25,364 |
|
|
22,220 |
|
|
3,144 |
|
Depreciation, Depletion and Amortization |
|
52,958 |
|
|
|
45,135 |
|
|
|
7,823 |
|
|
|
208,148 |
|
|
182,492 |
|
|
25,656 |
|
Impairment of Oil and Gas Producing Properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
76,152 |
|
|
(76,152 |
) |
|
|
138,755 |
|
|
|
140,128 |
|
|
|
(1,373 |
) |
|
|
616,627 |
|
|
630,812 |
|
|
(14,185 |
) |
Gain on Sale of Assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,736 |
|
|
— |
|
|
12,736 |
|
Operating Income |
|
113,280 |
|
|
|
75,453 |
|
|
|
37,827 |
|
|
|
406,573 |
|
|
205,885 |
|
|
200,688 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(186 |
) |
|
|
(289 |
) |
|
|
103 |
|
|
|
(744 |
) |
|
(1,148 |
) |
|
404 |
|
Interest and Other Income |
|
(3,080 |
) |
|
|
35 |
|
|
|
(3,115 |
) |
|
|
(2,466 |
) |
|
211 |
|
|
(2,677 |
) |
Interest Expense on Long-Term Debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(15,119 |
) |
|
15,119 |
|
Interest Expense |
|
(14,474 |
) |
|
|
(11,942 |
) |
|
|
(2,532 |
) |
|
|
(53,401 |
) |
|
(54,543 |
) |
|
1,142 |
|
Income Before Income
Taxes |
|
95,540 |
|
|
|
63,257 |
|
|
|
32,283 |
|
|
|
349,962 |
|
|
135,286 |
|
|
214,676 |
|
Income Tax Expense
(Benefit) |
|
(20,537 |
) |
|
|
7,554 |
|
|
|
(28,091 |
) |
|
|
43,898 |
|
|
33,370 |
|
|
10,528 |
|
Net Income |
$ |
116,077 |
|
|
$ |
55,703 |
|
|
$ |
60,374 |
|
|
$ |
306,064 |
|
$ |
101,916 |
|
$ |
204,148 |
|
Net Income Per Share
(Diluted) |
$ |
1.26 |
|
|
$ |
0.61 |
|
|
$ |
0.65 |
|
|
$ |
3.32 |
|
$ |
1.11 |
|
$ |
2.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
MIDSTREAM BUSINESSES |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Thousands of Dollars, except
per share amounts) |
September 30, |
|
September 30, |
PIPELINE AND
STORAGE SEGMENT |
2022 |
|
2021 |
|
Variance |
|
2022 |
2021 |
|
Variance |
Revenues from External Customers |
$ |
68,836 |
|
|
$ |
58,515 |
|
|
$ |
10,321 |
|
|
$ |
265,415 |
|
$ |
234,397 |
|
$ |
31,018 |
|
Intersegment Revenues |
|
28,913 |
|
|
|
26,510 |
|
|
|
2,403 |
|
|
|
111,629 |
|
|
109,160 |
|
|
2,469 |
|
Total Operating Revenues |
|
97,749 |
|
|
|
85,025 |
|
|
|
12,724 |
|
|
|
377,044 |
|
|
343,557 |
|
|
33,487 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
592 |
|
|
|
764 |
|
|
|
(172 |
) |
|
|
1,890 |
|
|
983 |
|
|
907 |
|
Operation and Maintenance |
|
28,868 |
|
|
|
26,724 |
|
|
|
2,144 |
|
|
|
100,117 |
|
|
90,533 |
|
|
9,584 |
|
Property, Franchise and Other
Taxes |
|
8,470 |
|
|
|
8,406 |
|
|
|
64 |
|
|
|
34,133 |
|
|
33,120 |
|
|
1,013 |
|
Depreciation, Depletion and
Amortization |
|
17,283 |
|
|
|
15,626 |
|
|
|
1,657 |
|
|
|
67,701 |
|
|
62,431 |
|
|
5,270 |
|
|
|
55,213 |
|
|
|
51,520 |
|
|
|
3,693 |
|
|
|
203,841 |
|
|
187,067 |
|
|
16,774 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
42,536 |
|
|
|
33,505 |
|
|
|
9,031 |
|
|
|
173,203 |
|
|
156,490 |
|
|
16,713 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit |
|
767 |
|
|
|
125 |
|
|
|
642 |
|
|
|
3,069 |
|
|
501 |
|
|
2,568 |
|
Interest and Other Income |
|
1,490 |
|
|
|
2,180 |
|
|
|
(690 |
) |
|
|
3,820 |
|
|
5,339 |
|
|
(1,519 |
) |
Interest Expense |
|
(10,929 |
) |
|
|
(9,623 |
) |
|
|
(1,306 |
) |
|
|
(42,492 |
) |
|
(40,976 |
) |
|
(1,516 |
) |
Income Before Income
Taxes |
|
33,864 |
|
|
|
26,187 |
|
|
|
7,677 |
|
|
|
137,600 |
|
|
121,354 |
|
|
16,246 |
|
Income Tax Expense |
|
8,544 |
|
|
|
4,705 |
|
|
|
3,839 |
|
|
|
35,043 |
|
|
28,812 |
|
|
6,231 |
|
Net Income |
$ |
25,320 |
|
|
$ |
21,482 |
|
|
$ |
3,838 |
|
|
$ |
102,557 |
|
$ |
92,542 |
|
$ |
10,015 |
|
Net Income Per Share
(Diluted) |
$ |
0.27 |
|
|
$ |
0.23 |
|
|
$ |
0.04 |
|
|
$ |
1.11 |
|
$ |
1.01 |
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
GATHERING
SEGMENT |
2022 |
|
2021 |
|
Variance |
|
2022 |
2021 |
|
Variance |
Revenues from External
Customers |
$ |
2,023 |
|
|
$ |
1,507 |
|
|
$ |
516 |
|
|
$ |
12,086 |
|
$ |
3,116 |
|
$ |
8,970 |
|
Intersegment Revenues |
|
52,061 |
|
|
|
45,830 |
|
|
|
6,231 |
|
|
|
202,757 |
|
|
190,148 |
|
|
12,609 |
|
Total Operating Revenues |
|
54,084 |
|
|
|
47,337 |
|
|
|
6,747 |
|
|
|
214,843 |
|
|
193,264 |
|
|
21,579 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
10,725 |
|
|
|
9,456 |
|
|
|
1,269 |
|
|
|
38,234 |
|
|
34,207 |
|
|
4,027 |
|
Property, Franchise and Other Taxes |
|
24 |
|
|
|
23 |
|
|
|
1 |
|
|
|
37 |
|
|
52 |
|
|
(15 |
) |
Depreciation, Depletion and Amortization |
|
8,656 |
|
|
|
8,219 |
|
|
|
437 |
|
|
|
33,998 |
|
|
32,350 |
|
|
1,648 |
|
|
|
19,405 |
|
|
|
17,698 |
|
|
|
1,707 |
|
|
|
72,269 |
|
|
66,609 |
|
|
5,660 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
34,679 |
|
|
|
29,639 |
|
|
|
5,040 |
|
|
|
142,574 |
|
|
126,655 |
|
|
15,919 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(56 |
) |
|
|
(68 |
) |
|
|
12 |
|
|
|
(224 |
) |
|
(271 |
) |
|
47 |
|
Interest and Other Income |
|
117 |
|
|
|
6 |
|
|
|
111 |
|
|
|
198 |
|
|
259 |
|
|
(61 |
) |
Interest Expense on Long-Term Debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(965 |
) |
|
965 |
|
Interest Expense |
|
(4,105 |
) |
|
|
(4,093 |
) |
|
|
(12 |
) |
|
|
(16,488 |
) |
|
(16,528 |
) |
|
40 |
|
Income Before Income
Taxes |
|
30,635 |
|
|
|
25,484 |
|
|
|
5,151 |
|
|
|
126,060 |
|
|
109,150 |
|
|
16,910 |
|
Income Tax Expense
(Benefit) |
|
(589 |
) |
|
|
6,887 |
|
|
|
(7,476 |
) |
|
|
24,949 |
|
|
28,876 |
|
|
(3,927 |
) |
Net Income |
$ |
31,224 |
|
|
$ |
18,597 |
|
|
$ |
12,627 |
|
|
$ |
101,111 |
|
$ |
80,274 |
|
$ |
20,837 |
|
Net Income Per Share
(Diluted) |
$ |
0.34 |
|
|
$ |
0.20 |
|
|
$ |
0.14 |
|
|
$ |
1.10 |
|
$ |
0.88 |
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
DOWNSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Thousands of Dollars, except
per share amounts) |
September 30, |
|
September 30, |
UTILITY
SEGMENT |
2022 |
|
2021 |
|
Variance |
|
2022 |
|
2021 |
|
Variance |
Revenues from External Customers |
$ |
112,252 |
|
|
$ |
80,302 |
|
|
$ |
31,950 |
|
|
$ |
897,916 |
|
$ |
666,920 |
|
$ |
230,996 |
|
Intersegment Revenues |
|
60 |
|
|
|
60 |
|
|
|
— |
|
|
|
305 |
|
|
331 |
|
|
(26 |
) |
Total Operating Revenues |
|
112,312 |
|
|
|
80,362 |
|
|
|
31,950 |
|
|
|
898,221 |
|
|
667,251 |
|
|
230,970 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
49,692 |
|
|
|
19,826 |
|
|
|
29,866 |
|
|
|
497,959 |
|
|
274,837 |
|
|
223,122 |
|
Operation and Maintenance |
|
47,369 |
|
|
|
40,855 |
|
|
|
6,514 |
|
|
|
196,254 |
|
|
182,266 |
|
|
13,988 |
|
Property, Franchise and Other Taxes |
|
8,981 |
|
|
|
8,588 |
|
|
|
393 |
|
|
|
41,137 |
|
|
38,769 |
|
|
2,368 |
|
Depreciation, Depletion and Amortization |
|
15,167 |
|
|
|
14,646 |
|
|
|
521 |
|
|
|
59,760 |
|
|
57,457 |
|
|
2,303 |
|
|
|
121,209 |
|
|
|
83,915 |
|
|
|
37,294 |
|
|
|
795,110 |
|
|
553,329 |
|
|
241,781 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
(8,897 |
) |
|
|
(3,553 |
) |
|
|
(5,344 |
) |
|
|
103,111 |
|
|
113,922 |
|
|
(10,811 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit (Costs) Credit |
|
(492 |
) |
|
|
(1,985 |
) |
|
|
1,493 |
|
|
|
5,526 |
|
|
(26,659 |
) |
|
32,185 |
|
Interest and Other Income |
|
429 |
|
|
|
733 |
|
|
|
(304 |
) |
|
|
1,591 |
|
|
2,874 |
|
|
(1,283 |
) |
Interest Expense |
|
(7,000 |
) |
|
|
(5,337 |
) |
|
|
(1,663 |
) |
|
|
(24,115 |
) |
|
(21,795 |
) |
|
(2,320 |
) |
Income (Loss) Before Income
Taxes |
|
(15,960 |
) |
|
|
(10,142 |
) |
|
|
(5,818 |
) |
|
|
86,113 |
|
|
68,342 |
|
|
17,771 |
|
Income Tax Expense
(Benefit) |
|
(5,108 |
) |
|
|
(4,555 |
) |
|
|
(553 |
) |
|
|
17,165 |
|
|
14,007 |
|
|
3,158 |
|
Net Income (Loss) |
$ |
(10,852 |
) |
|
$ |
(5,587 |
) |
|
$ |
(5,265 |
) |
|
$ |
68,948 |
|
$ |
54,335 |
|
$ |
14,613 |
|
Net Income (Loss) Per Share
(Diluted) |
$ |
(0.12 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.06 |
) |
|
$ |
0.75 |
|
$ |
0.59 |
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Thousands of Dollars, except
per share amounts) |
September 30, |
|
September 30, |
ALL
OTHER |
2022 |
|
2021 |
|
Variance |
|
2022 |
|
2021 |
|
Variance |
Revenues from External Customers |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
1,173 |
|
$ |
(1,173 |
) |
Intersegment Revenues |
|
— |
|
|
|
26 |
|
|
|
(26 |
) |
|
|
6 |
|
|
49 |
|
|
(43 |
) |
Total Operating Revenues |
|
— |
|
|
|
26 |
|
|
|
(26 |
) |
|
|
6 |
|
|
1,222 |
|
|
(1,216 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
— |
|
|
|
9 |
|
|
|
(9 |
) |
|
|
6 |
|
|
2,306 |
|
|
(2,300 |
) |
Operation and Maintenance |
|
— |
|
|
|
(20 |
) |
|
|
20 |
|
|
|
5 |
|
|
682 |
|
|
(677 |
) |
Property, Franchise and Other Taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
47 |
|
|
(47 |
) |
Depreciation, Depletion and Amortization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
394 |
|
|
(394 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
11 |
|
|
|
11 |
|
|
3,429 |
|
|
(3,418 |
) |
Gain on Sale of Assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
51,066 |
|
|
(51,066 |
) |
Operating Income (Loss) |
|
— |
|
|
|
37 |
|
|
|
(37 |
) |
|
|
(5 |
) |
|
48,859 |
|
|
(48,864 |
) |
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(7 |
) |
|
7 |
|
Interest and Other Income |
|
1 |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
3 |
|
|
231 |
|
|
(228 |
) |
Interest Expense |
|
(4 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
(4 |
) |
|
— |
|
|
(4 |
) |
Income (Loss) before Income
Taxes |
|
(3 |
) |
|
|
39 |
|
|
|
(42 |
) |
|
|
(6 |
) |
|
49,083 |
|
|
(49,089 |
) |
Income Tax Expense
(Benefit) |
|
(1 |
) |
|
|
10 |
|
|
|
(11 |
) |
|
|
3 |
|
|
11,438 |
|
|
(11,435 |
) |
Net Income (Loss) |
$ |
(2 |
) |
|
$ |
29 |
|
|
$ |
(31 |
) |
|
$ |
(9 |
) |
$ |
37,645 |
|
$ |
(37,654 |
) |
Net Income (Loss) Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
0.41 |
|
$ |
(0.41 |
) |
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
CORPORATE |
2022 |
|
2021 |
|
Variance |
|
2022 |
|
2021 |
|
Variance |
Revenues from External
Customers |
$ |
— |
|
|
$ |
83 |
|
|
$ |
(83 |
) |
|
$ |
165 |
|
$ |
356 |
|
$ |
(191 |
) |
Intersegment Revenues |
|
1,183 |
|
|
|
1,146 |
|
|
|
37 |
|
|
|
4,430 |
|
|
3,864 |
|
|
566 |
|
Total Operating Revenues |
|
1,183 |
|
|
|
1,229 |
|
|
|
(46 |
) |
|
|
4,595 |
|
|
4,220 |
|
|
375 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
4,801 |
|
|
|
3,857 |
|
|
|
944 |
|
|
|
14,841 |
|
|
15,423 |
|
|
(582 |
) |
Property, Franchise and Other Taxes |
|
139 |
|
|
|
135 |
|
|
|
4 |
|
|
|
511 |
|
|
505 |
|
|
6 |
|
Depreciation, Depletion and Amortization |
|
45 |
|
|
|
45 |
|
|
|
— |
|
|
|
183 |
|
|
179 |
|
|
4 |
|
|
|
4,985 |
|
|
|
4,037 |
|
|
|
948 |
|
|
|
15,535 |
|
|
16,107 |
|
|
(572 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
(3,802 |
) |
|
|
(2,808 |
) |
|
|
(994 |
) |
|
|
(10,940 |
) |
|
(11,887 |
) |
|
947 |
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(1,017 |
) |
|
|
(923 |
) |
|
|
(94 |
) |
|
|
(4,069 |
) |
|
(3,692 |
) |
|
(377 |
) |
Interest and Other Income |
|
33,712 |
|
|
|
31,154 |
|
|
|
2,558 |
|
|
|
126,648 |
|
|
138,882 |
|
|
(12,234 |
) |
Interest Expense on Long-Term Debt |
|
(30,207 |
) |
|
|
(30,161 |
) |
|
|
(46 |
) |
|
|
(120,507 |
) |
|
(125,373 |
) |
|
4,866 |
|
Other Interest Expense |
|
(3,262 |
) |
|
|
(405 |
) |
|
|
(2,857 |
) |
|
|
(8,211 |
) |
|
(2,816 |
) |
|
(5,395 |
) |
Loss before Income Taxes |
|
(4,576 |
) |
|
|
(3,143 |
) |
|
|
(1,433 |
) |
|
|
(17,079 |
) |
|
(4,886 |
) |
|
(12,193 |
) |
Income Tax Expense
(Benefit) |
|
(952 |
) |
|
|
119 |
|
|
|
(1,071 |
) |
|
|
(4,429 |
) |
|
(1,821 |
) |
|
(2,608 |
) |
Net Loss |
$ |
(3,624 |
) |
|
$ |
(3,262 |
) |
|
$ |
(362 |
) |
|
$ |
(12,650 |
) |
$ |
(3,065 |
) |
$ |
(9,585 |
) |
Net Loss Per Share
(Diluted) |
$ |
(0.04 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.13 |
) |
$ |
(0.03 |
) |
$ |
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
INTERSEGMENT
ELIMINATIONS |
2022 |
|
2021 |
|
Variance |
|
2022 |
|
2021 |
|
Variance |
Intersegment Revenues |
$ |
(82,217 |
) |
|
$ |
(73,572 |
) |
|
$ |
(8,645 |
) |
|
$ |
(319,127 |
) |
$ |
(303,552 |
) |
$ |
(15,575 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
(27,359 |
) |
|
|
(25,789 |
) |
|
|
(1,570 |
) |
|
|
(107,762 |
) |
|
(106,299 |
) |
|
(1,463 |
) |
Operation and Maintenance |
|
(54,858 |
) |
|
|
(47,783 |
) |
|
|
(7,075 |
) |
|
|
(211,365 |
) |
|
(197,253 |
) |
|
(14,112 |
) |
|
|
(82,217 |
) |
|
|
(73,572 |
) |
|
|
(8,645 |
) |
|
|
(319,127 |
) |
|
(303,552 |
) |
|
(15,575 |
) |
Operating Income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Interest and Other Deductions |
|
(36,485 |
) |
|
|
(31,130 |
) |
|
|
(5,355 |
) |
|
|
(134,861 |
) |
|
(131,758 |
) |
|
(3,103 |
) |
Interest Expense |
|
36,485 |
|
|
|
31,130 |
|
|
|
5,355 |
|
|
|
134,861 |
|
|
131,758 |
|
|
3,103 |
|
Net Income |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Net Income Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION (Continued) |
(Thousands of Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
2022 |
|
2021 |
|
(Decrease) |
|
2022 |
|
2021 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production |
$ |
160,056 |
(1) |
$ |
117,646 |
(2) |
$ |
42,410 |
|
|
$ |
565,791 |
(1)(2) |
$ |
381,408 |
(2)(3) |
$ |
184,383 |
|
Pipeline and Storage |
|
37,563 |
(1) |
|
96,760 |
(2) |
|
(59,197 |
) |
|
|
95,806 |
(1)(2) |
|
252,316 |
(2)(3) |
|
(156,510 |
) |
Gathering |
|
26,957 |
(1) |
|
9,041 |
(2) |
|
17,916 |
|
|
|
55,546 |
(1)(2) |
|
34,669 |
(2)(3) |
|
20,877 |
|
Utility |
|
40,061 |
(1) |
|
34,154 |
(2) |
|
5,907 |
|
|
|
111,033 |
(1)(2) |
|
100,845 |
(2)(3) |
|
10,188 |
|
Total Reportable Segments |
|
264,637 |
|
|
257,601 |
|
|
7,036 |
|
|
|
828,176 |
|
|
769,238 |
|
|
58,938 |
|
All Other |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
Corporate |
|
549 |
|
|
231 |
|
|
318 |
|
|
|
1,212 |
|
|
450 |
|
|
762 |
|
Eliminations |
|
— |
|
|
2,341 |
|
|
(2,341 |
) |
|
|
— |
|
|
223 |
|
|
(223 |
) |
Total Capital Expenditures |
$ |
265,186 |
|
$ |
260,173 |
|
$ |
5,013 |
|
|
$ |
829,388 |
|
$ |
769,911 |
|
$ |
59,477 |
|
(1) |
|
Capital expenditures for the
quarter and year ended September 30, 2022, include accounts payable
and accrued liabilities related to capital expenditures of $83.0
million, $15.2 million, $10.7 million, and $11.4 million in the
Exploration and Production segment, Pipeline and Storage segment,
Gathering segment and Utility segment, respectively. These amounts
have been excluded from the Consolidated Statement of Cash Flows at
September 30, 2022, since they represent non-cash investing
activities at that date. |
|
|
|
(2) |
|
Capital expenditures for the
year ended September 30, 2022, exclude capital expenditures of
$47.9 million, $39.4 million, $4.8 million and $10.6 million in the
Exploration and Production segment, Pipeline and Storage segment,
Gathering segment and Utility segment, respectively. These amounts
were in accounts payable and accrued liabilities at September 30,
2021 and paid during the year ended September 30, 2022. These
amounts were excluded from the Consolidated Statement of Cash Flows
at September 30, 2021, since they represented non-cash investing
activities at that date. These amounts have been included in the
Consolidated Statement of Cash Flows at September 30,
2022. |
|
|
|
(3) |
|
Capital expenditures for the
year ended September 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 year ended September 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 September
30, 2021. |
|
|
|
|
|
|
|
|
|
|
DEGREE
DAYS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Colder |
|
|
|
|
|
|
|
(Warmer) Than: |
Three Months Ended
September 30, |
Normal |
|
2022 |
|
2021 |
|
Normal (1) |
|
Last Year (1) |
Buffalo, NY |
162 |
|
107 |
|
38 |
|
(34.0 |
) |
|
181.6 |
Erie, PA |
124 |
|
94 |
|
33 |
|
(24.2 |
) |
|
184.8 |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
September 30, |
|
|
|
|
|
|
|
|
|
Buffalo, NY |
6,617 |
|
5,769 |
|
5,731 |
|
(12.8 |
) |
|
0.7 |
Erie, PA |
6,147 |
|
5,368 |
|
5,221 |
|
(12.7 |
) |
|
2.8 |
|
|
|
|
|
|
|
|
|
|
(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 |
|
Twelve Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2022 |
|
2021 |
|
(Decrease) |
|
2022 |
|
2021 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
Production (MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
|
87,858 |
|
|
75,871 |
|
|
11,987 |
|
|
|
341,700 |
|
|
312,300 |
|
|
29,400 |
|
West Coast |
|
|
1 |
|
|
420 |
|
|
(419 |
) |
|
|
1,211 |
|
|
1,720 |
|
|
(509 |
) |
Total Production |
|
|
87,859 |
|
|
76,291 |
|
|
11,568 |
|
|
|
342,911 |
|
|
314,020 |
|
|
28,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Mcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
$ |
6.16 |
|
$ |
3.14 |
|
$ |
3.02 |
|
|
$ |
5.03 |
|
$ |
2.46 |
|
$ |
2.57 |
|
West Coast |
|
N/M |
|
|
7.93 |
|
N/M |
|
|
|
10.03 |
|
|
6.34 |
|
|
3.69 |
|
Weighted Average |
|
|
6.16 |
|
|
3.16 |
|
|
3.00 |
|
|
|
5.05 |
|
|
2.49 |
|
|
2.56 |
|
Weighted Average after Hedging |
|
|
2.84 |
|
|
2.37 |
|
|
0.47 |
|
|
|
2.71 |
|
|
2.25 |
|
|
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
Production (Thousands of
Barrels) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
|
7 |
|
|
1 |
|
|
6 |
|
|
|
16 |
|
|
2 |
|
|
14 |
|
West Coast |
|
|
— |
|
|
551 |
|
|
(551 |
) |
|
|
1,588 |
|
|
2,233 |
|
|
(645 |
) |
Total Production |
|
|
7 |
|
|
552 |
|
|
(545 |
) |
|
|
1,604 |
|
|
2,235 |
|
|
(631 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per
Barrel) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
$ |
90.22 |
|
$ |
66.34 |
|
$ |
23.88 |
|
|
$ |
97.82 |
|
$ |
48.02 |
|
$ |
49.80 |
|
West Coast |
|
N/M |
|
|
71.46 |
|
N/M |
|
|
|
94.06 |
|
|
60.50 |
|
|
33.56 |
|
Weighted Average |
|
|
90.93 |
|
|
71.45 |
|
|
19.48 |
|
|
|
94.10 |
|
|
60.49 |
|
|
33.61 |
|
Weighted Average after Hedging (1) |
|
|
90.86 |
|
|
60.04 |
|
|
30.82 |
|
|
|
70.80 |
|
|
56.54 |
|
|
14.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production (MMcfe) |
|
|
87,901 |
|
|
79,603 |
|
|
8,298 |
|
|
|
352,535 |
|
|
327,430 |
|
|
25,105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Performance Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
General & Administrative
Expense per Mcfe (2) |
|
$ |
0.18 |
|
$ |
0.21 |
|
$ |
(0.03 |
) |
|
$ |
0.20 |
|
$ |
0.21 |
|
$ |
(0.01 |
) |
Lease Operating and
Transportation Expense per Mcfe (2)(3) |
|
$ |
0.71 |
|
$ |
0.85 |
|
$ |
(0.14 |
) |
|
$ |
0.81 |
|
$ |
0.82 |
|
$ |
(0.01 |
) |
Depreciation, Depletion &
Amortization per Mcfe (2) |
|
$ |
0.60 |
|
$ |
0.57 |
|
$ |
0.03 |
|
|
$ |
0.59 |
|
$ |
0.56 |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M Not Meaningful (as a result of the sale of Seneca's West
Coast assets in June
2022)
(1) |
|
Weighted average oil price
after hedging for the twelve months ended September 30, 2022
excludes a loss on discontinuance of crude oil cash flow hedges of
$44,632. |
|
|
|
(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 twelve months
ended September 30, 2022 excludes transaction and severance costs
related to the California asset sale. |
|
|
|
(3) |
|
Amounts include
transportation expense of $0.58 and $0.55 per Mcfe for the three
months ended September 30, 2022 and September 30, 2021,
respectively. Amounts include transportation expense of $0.57 and
$0.57 per Mcfe for the twelve months ended September 30, 2022 and
September 30, 2021, respectively. |
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
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 |
|
73,283,422 MMBTU |
|
$ |
2.44 / MMBTU |
Total |
|
259,883,422
MMBTU |
|
|
|
Hedging Summary for
Fiscal 2024 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
67,680,000 MMBTU |
|
$ |
2.98 / MMBTU |
No Cost Collars |
|
59,200,000 MMBTU |
|
$ |
3.20 / MMBTU (Floor) / $3.78 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
66,115,483 MMBTU |
|
$ |
2.39 / MMBTU |
Total |
|
192,995,483 MMBTU |
|
|
|
Hedging Summary for
Fiscal 2025 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
27,560,000 MMBTU |
|
$ |
3.07 / MMBTU |
No Cost Collars |
|
43,960,000 MMBTU |
|
$ |
3.49 / MMBTU (Floor) / $4.65 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
64,600,416 MMBTU |
|
$ |
2.43 / MMBTU |
Total |
|
136,120,416 MMBTU |
|
|
|
Hedging Summary for
Fiscal 2026 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
2,020,000 MMBTU |
|
$ |
3.09 / MMBTU |
No Cost Collars |
|
42,720,000 MMBTU |
|
$ |
3.53 / MMBTU (Floor) / $4.76 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
62,983,519 MMBTU |
|
$ |
2.37 / MMBTU |
Total |
|
107,723,519 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 |
|
46,003,865 MMBTU |
|
$ |
2.39 / MMBTU |
Total |
|
49,563,865
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 |
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
|
|
|
|
Reserve Quantity Information |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Gas MMcf |
|
|
U.S. |
|
|
Appalachian |
West Coast |
Total |
|
|
Region |
Region |
Company |
Proved Developed and
Undeveloped Reserves: |
|
|
|
|
September 30, 2021 |
|
3,693,148 |
|
30,285 |
|
3,723,433 |
|
Extensions and
Discoveries |
|
837,510 |
|
— |
|
837,510 |
|
Revisions of Previous
Estimates |
|
2,882 |
|
71 |
|
2,953 |
|
Production |
|
(341,700 |
) |
(1,211 |
) |
(342,911 |
) |
Sales of Minerals in
Place |
|
(21,178 |
) |
(29,145 |
) |
(50,323 |
) |
September 30, 2022 |
|
4,170,662 |
|
— |
|
4,170,662 |
|
|
|
|
|
|
Proved Developed
Reserves: |
|
|
|
|
September 30, 2021 |
|
3,061,178 |
|
30,285 |
|
3,091,463 |
|
September 30, 2022 |
|
3,312,568 |
|
— |
|
3,312,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Mbbl |
|
|
U.S. |
|
|
Appalachian |
West Coast |
Total |
|
|
Region |
Region |
Company |
Proved Developed and
Undeveloped Reserves: |
|
|
|
|
September 30, 2021 |
|
11 |
|
21,526 |
|
21,537 |
|
Extensions and
Discoveries |
|
— |
|
296 |
|
296 |
|
Revisions of Previous
Estimates |
|
255 |
|
532 |
|
787 |
|
Production |
|
(16 |
) |
(1,588 |
) |
(1,604 |
) |
Sales of Minerals in
Place |
|
— |
|
(20,766 |
) |
(20,766 |
) |
September 30, 2022 |
|
250 |
|
— |
|
250 |
|
|
|
|
|
|
Proved Developed
Reserves: |
|
|
|
|
September 30, 2021 |
|
11 |
|
20,932 |
|
20,943 |
|
September 30, 2022 |
|
250 |
|
— |
|
250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline
& Storage Throughput - (millions of cubic feet -
MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2022 |
|
2021 |
|
(Decrease) |
|
2022 |
|
2021 |
|
(Decrease) |
Firm Transportation - Affiliated |
|
16,943 |
|
14,916 |
|
2,027 |
|
|
111,157 |
|
107,206 |
|
3,951 |
|
Firm Transportation -
Non-Affiliated |
|
171,983 |
|
168,619 |
|
3,364 |
|
|
679,260 |
|
663,078 |
|
16,182 |
|
Interruptible
Transportation |
|
3,886 |
|
256 |
|
3,630 |
|
|
5,612 |
|
1,460 |
|
4,152 |
|
|
|
192,812 |
|
183,791 |
|
9,021 |
|
|
796,029 |
|
771,744 |
|
24,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering Volume -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2022 |
|
2021 |
|
(Decrease) |
|
2022 |
|
2021 |
|
(Decrease) |
Gathered Volume |
|
104,707 |
|
90,750 |
|
13,957 |
|
|
419,332 |
|
366,033 |
|
53,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Throughput -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2022 |
|
2021 |
|
(Decrease) |
|
2022 |
|
2021 |
|
(Decrease) |
Retail Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential Sales |
|
4,146 |
|
3,797 |
|
349 |
|
|
64,011 |
|
61,038 |
|
2,973 |
|
Commercial Sales |
|
644 |
|
535 |
|
109 |
|
|
9,621 |
|
8,741 |
|
880 |
|
Industrial Sales |
|
75 |
|
33 |
|
42 |
|
|
541 |
|
475 |
|
66 |
|
|
|
4,865 |
|
4,365 |
|
500 |
|
|
74,173 |
|
70,254 |
|
3,919 |
|
Transportation |
|
9,720 |
|
10,197 |
|
(477 |
) |
|
65,993 |
|
66,012 |
|
(19 |
) |
|
|
14,585 |
|
14,562 |
|
23 |
|
|
140,166 |
|
136,266 |
|
3,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
In addition to financial measures calculated in
accordance with generally accepted accounting principles (GAAP),
this press release contains information regarding Adjusted
Operating Results, Adjusted EBITDA and free cash flow, which are
non-GAAP financial measures. The Company believes that these
non-GAAP financial measures are useful to investors because they
provide an alternative method for assessing the Company's ongoing
operating results or liquidity and for comparing the Company’s
financial performance to other companies. The Company's management
uses these non-GAAP financial measures for the same purpose, and
for planning and forecasting purposes. The presentation of non-GAAP
financial measures is not meant to be a substitute for financial
measures in accordance with GAAP.
Management defines Adjusted Operating Results as
reported GAAP earnings before items impacting comparability. The
following table reconciles National Fuel's reported GAAP earnings
to Adjusted Operating Results for the three and twelve months ended
September 30, 2022 and 2021:
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
September 30, |
|
September 30, |
(in thousands except per
share amounts) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Reported GAAP Earnings |
|
$ |
158,143 |
|
|
$ |
86,962 |
|
|
$ |
566,021 |
|
|
$ |
363,647 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Items related to West Coast asset sale: |
|
|
|
|
|
|
|
|
Gain on sale of West Coast assets (E&P) |
|
|
— |
|
|
|
— |
|
|
|
(12,736 |
) |
|
|
— |
|
Tax impact of gain on sale of West Coast assets |
|
|
— |
|
|
|
— |
|
|
|
3,225 |
|
|
|
— |
|
Loss from discontinuance of crude oil cash flow hedges
(E&P) |
|
|
— |
|
|
|
— |
|
|
|
44,632 |
|
|
|
— |
|
Tax impact of loss from discontinuance of crude oil cash flow
hedges |
|
|
— |
|
|
|
— |
|
|
|
(11,303 |
) |
|
|
— |
|
Transaction and severance costs (E&P) |
|
|
— |
|
|
|
— |
|
|
|
9,693 |
|
|
|
— |
|
Tax impact of transaction and severance costs |
|
|
— |
|
|
|
— |
|
|
|
(2,455 |
) |
|
|
— |
|
Total items impacting comparability related to West Coast asset
sale |
|
|
— |
|
|
|
— |
|
|
|
31,056 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset (E&P) |
|
|
4,395 |
|
|
|
— |
|
|
|
4,395 |
|
|
|
— |
|
Tax impact of unrealized (gain) loss on derivative asset |
|
|
(1,203 |
) |
|
|
— |
|
|
|
(1,203 |
) |
|
|
— |
|
Reversal of deferred tax valuation allowance |
|
|
(24,850 |
) |
|
|
— |
|
|
|
(24,850 |
) |
|
|
— |
|
Remeasurement of deferred income taxes from Pennsylvania state
income tax rate reduction |
|
|
(28,406 |
) |
|
|
— |
|
|
|
(28,406 |
) |
|
|
— |
|
Reduction of other post-retirement regulatory liability
(Utility) |
|
|
— |
|
|
|
— |
|
|
|
(18,533 |
) |
|
|
— |
|
Tax impact of reduction of other post-retirement regulatory
liability |
|
|
— |
|
|
|
— |
|
|
|
3,892 |
|
|
|
— |
|
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
|
1,532 |
|
|
|
395 |
|
|
|
11,625 |
|
|
|
(181 |
) |
Tax impact of unrealized (gain) loss on other investments |
|
|
(322 |
) |
|
|
(83 |
) |
|
|
(2,441 |
) |
|
|
38 |
|
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 |
|
$ |
109,289 |
|
|
$ |
87,274 |
|
|
$ |
541,556 |
|
|
$ |
393,073 |
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
|
$ |
1.71 |
|
|
$ |
0.95 |
|
|
$ |
6.15 |
|
|
$ |
3.97 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Items related to West Coast asset sale: |
|
|
|
|
|
|
|
|
Gain on sale of West Coast assets, net of tax (E&P) |
|
|
— |
|
|
|
— |
|
|
|
(0.10 |
) |
|
|
— |
|
Loss from discontinuance of crude oil cash flow hedges, net of tax
(E&P) |
|
|
— |
|
|
|
— |
|
|
|
0.36 |
|
|
|
— |
|
Transaction and severance costs, net of tax (E&P) |
|
|
— |
|
|
|
— |
|
|
|
0.08 |
|
|
|
— |
|
Total items impacting comparability related to West Coast asset
sale |
|
|
— |
|
|
|
— |
|
|
|
0.34 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset, net of tax
(E&P) |
|
|
0.03 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
Reversal of deferred tax valuation allowance |
|
|
(0.27 |
) |
|
|
— |
|
|
|
(0.27 |
) |
|
|
— |
|
Remeasurement of deferred income taxes from Pennsylvania state
income tax rate reduction |
|
|
(0.31 |
) |
|
|
— |
|
|
|
(0.31 |
) |
|
|
— |
|
Reduction of other post-retirement regulatory liability, net of tax
(Utility) |
|
|
— |
|
|
|
— |
|
|
|
(0.16 |
) |
|
|
— |
|
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
|
|
0.01 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
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 |
|
Rounding |
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted Operating
Results Per Share |
|
$ |
1.19 |
|
|
$ |
0.95 |
|
|
$ |
5.88 |
|
|
$ |
4.29 |
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
(Continued)
Management defines Adjusted EBITDA as reported
GAAP earnings before the following items: interest expense, income
taxes, depreciation, depletion and amortization, other income and
deductions, impairments, and other items reflected in operating
income that impact comparability. The following tables reconcile
National Fuel's reported GAAP earnings to Adjusted EBITDA for the
three and twelve months ended September 30, 2022 and 2021:
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
September 30, |
|
September 30, |
(in thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Reported GAAP Earnings |
|
$ |
158,143 |
|
|
$ |
86,962 |
|
|
$ |
566,021 |
|
|
$ |
363,647 |
|
Depreciation, Depletion and Amortization |
|
|
94,109 |
|
|
|
83,671 |
|
|
|
369,790 |
|
|
|
335,303 |
|
Other (Income) Deductions |
|
|
4,800 |
|
|
|
160 |
|
|
|
1,509 |
|
|
|
15,238 |
|
Interest Expense |
|
|
33,496 |
|
|
|
30,431 |
|
|
|
130,357 |
|
|
|
146,357 |
|
Income Taxes |
|
|
(18,643 |
) |
|
|
14,720 |
|
|
|
116,629 |
|
|
|
114,682 |
|
Impairment of Oil and Gas Producing Properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,152 |
|
Gain on Sale of Assets |
|
|
— |
|
|
|
— |
|
|
|
(12,736 |
) |
|
|
(51,066 |
) |
Loss from Discontinuance of Crude Oil Cash Flow Hedges
(E&P) |
|
|
— |
|
|
|
— |
|
|
|
44,632 |
|
|
|
— |
|
Transaction and Severance Costs related to West Coast Asset Sale
(E&P) |
|
|
— |
|
|
|
— |
|
|
|
9,693 |
|
|
|
— |
|
Adjusted
EBITDA |
|
$ |
271,905 |
|
|
$ |
215,944 |
|
|
$ |
1,225,895 |
|
|
$ |
1,000,313 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Segment |
|
|
|
|
|
|
|
|
Pipeline and Storage Adjusted
EBITDA |
|
$ |
59,819 |
|
|
$ |
49,131 |
|
|
$ |
240,904 |
|
|
$ |
218,921 |
|
Gathering Adjusted EBITDA |
|
|
43,335 |
|
|
|
37,858 |
|
|
|
176,572 |
|
|
|
159,005 |
|
Total Midstream Businesses
Adjusted EBITDA |
|
|
103,154 |
|
|
|
86,989 |
|
|
|
417,476 |
|
|
|
377,926 |
|
Exploration and Production
Adjusted EBITDA |
|
|
166,238 |
|
|
|
120,588 |
|
|
|
656,310 |
|
|
|
464,529 |
|
Utility Adjusted EBITDA |
|
|
6,270 |
|
|
|
11,093 |
|
|
|
162,871 |
|
|
|
171,379 |
|
Corporate and All Other
Adjusted EBITDA |
|
|
(3,757 |
) |
|
|
(2,726 |
) |
|
|
(10,762 |
) |
|
|
(13,521 |
) |
Total Adjusted
EBITDA |
|
$ |
271,905 |
|
|
$ |
215,944 |
|
|
$ |
1,225,895 |
|
|
$ |
1,000,313 |
|
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
September 30, |
|
September 30, |
(in thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Exploration and
Production Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
116,077 |
|
|
$ |
55,703 |
|
|
$ |
306,064 |
|
|
$ |
101,916 |
|
Depreciation, Depletion and Amortization |
|
|
52,958 |
|
|
|
45,135 |
|
|
|
208,148 |
|
|
|
182,492 |
|
Other (Income) Deductions |
|
|
3,266 |
|
|
|
254 |
|
|
|
3,210 |
|
|
|
937 |
|
Interest Expense |
|
|
14,474 |
|
|
|
11,942 |
|
|
|
53,401 |
|
|
|
69,662 |
|
Income Taxes |
|
|
(20,537 |
) |
|
|
7,554 |
|
|
|
43,898 |
|
|
|
33,370 |
|
Impairment of Oil and Gas Producing Properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,152 |
|
Gain on Sale of West Coast Assets |
|
|
— |
|
|
|
— |
|
|
|
(12,736 |
) |
|
|
— |
|
Loss from Discontinuance of Crude Oil Cash Flow Hedges |
|
|
— |
|
|
|
— |
|
|
|
44,632 |
|
|
|
— |
|
Transaction and Severance Costs related to West Coast Asset
Sale |
|
|
— |
|
|
|
— |
|
|
|
9,693 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
166,238 |
|
|
$ |
120,588 |
|
|
$ |
656,310 |
|
|
$ |
464,529 |
|
|
|
|
|
|
|
|
|
|
Pipeline and
Storage Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
25,320 |
|
|
$ |
21,482 |
|
|
$ |
102,557 |
|
|
$ |
92,542 |
|
Depreciation, Depletion and Amortization |
|
|
17,283 |
|
|
|
15,626 |
|
|
|
67,701 |
|
|
|
62,431 |
|
Other (Income) Deductions |
|
|
(2,257 |
) |
|
|
(2,305 |
) |
|
|
(6,889 |
) |
|
|
(5,840 |
) |
Interest Expense |
|
|
10,929 |
|
|
|
9,623 |
|
|
|
42,492 |
|
|
|
40,976 |
|
Income Taxes |
|
|
8,544 |
|
|
|
4,705 |
|
|
|
35,043 |
|
|
|
28,812 |
|
Adjusted EBITDA |
|
$ |
59,819 |
|
|
$ |
49,131 |
|
|
$ |
240,904 |
|
|
$ |
218,921 |
|
|
|
|
|
|
|
|
|
|
Gathering
Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
31,224 |
|
|
$ |
18,597 |
|
|
$ |
101,111 |
|
|
$ |
80,274 |
|
Depreciation, Depletion and Amortization |
|
|
8,656 |
|
|
|
8,219 |
|
|
|
33,998 |
|
|
|
32,350 |
|
Other (Income) Deductions |
|
|
(61 |
) |
|
|
62 |
|
|
|
26 |
|
|
|
12 |
|
Interest Expense |
|
|
4,105 |
|
|
|
4,093 |
|
|
|
16,488 |
|
|
|
17,493 |
|
Income Taxes |
|
|
(589 |
) |
|
|
6,887 |
|
|
|
24,949 |
|
|
|
28,876 |
|
Adjusted EBITDA |
|
$ |
43,335 |
|
|
$ |
37,858 |
|
|
$ |
176,572 |
|
|
$ |
159,005 |
|
|
|
|
|
|
|
|
|
|
Utility
Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
(10,852 |
) |
|
$ |
(5,587 |
) |
|
$ |
68,948 |
|
|
$ |
54,335 |
|
Depreciation, Depletion and Amortization |
|
|
15,167 |
|
|
|
14,646 |
|
|
|
59,760 |
|
|
|
57,457 |
|
Other (Income) Deductions |
|
|
63 |
|
|
|
1,252 |
|
|
|
(7,117 |
) |
|
|
23,785 |
|
Interest Expense |
|
|
7,000 |
|
|
|
5,337 |
|
|
|
24,115 |
|
|
|
21,795 |
|
Income Taxes |
|
|
(5,108 |
) |
|
|
(4,555 |
) |
|
|
17,165 |
|
|
|
14,007 |
|
Adjusted EBITDA |
|
$ |
6,270 |
|
|
$ |
11,093 |
|
|
$ |
162,871 |
|
|
$ |
171,379 |
|
|
|
|
|
|
|
|
|
|
Corporate and All
Other |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
(3,626 |
) |
|
$ |
(3,233 |
) |
|
$ |
(12,659 |
) |
|
$ |
34,580 |
|
Depreciation, Depletion and Amortization |
|
|
45 |
|
|
|
45 |
|
|
|
183 |
|
|
|
573 |
|
Other (Income) Deductions |
|
|
3,789 |
|
|
|
897 |
|
|
|
12,279 |
|
|
|
(3,656 |
) |
Interest Expense |
|
|
(3,012 |
) |
|
|
(564 |
) |
|
|
(6,139 |
) |
|
|
(3,569 |
) |
Income Taxes |
|
|
(953 |
) |
|
|
129 |
|
|
|
(4,426 |
) |
|
|
9,617 |
|
Gain on Sale of Timber Properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51,066 |
) |
Adjusted EBITDA |
|
$ |
(3,757 |
) |
|
$ |
(2,726 |
) |
|
$ |
(10,762 |
) |
|
$ |
(13,521 |
) |
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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