WILLIAMSVILLE, N.Y., Aug. 02, 2023 (GLOBE
NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the
“Company”) (NYSE:NFG) today announced consolidated results for the
third quarter of its 2023 fiscal year and for the nine months ended
June 30, 2023.
FISCAL 2023 THIRD QUARTER
SUMMARY
- GAAP net income of
$92.6 million, or $1.00 per share, compared to GAAP net income of
$108.2 million, or $1.17 per share, in the prior year.
- Adjusted operating
results of $93.4 million, or $1.01 per share, compared to $141.9
million, or $1.54 per share, in the prior year (see non-GAAP
reconciliation on page 2).
- E&P segment net
Appalachian natural gas production of 94.7 Bcfe, an increase of 5.9
Bcfe, or 7%, compared to the prior year, and a 2% increase when
compared to fiscal 2023 second quarter.
- Successfully closed
on the purchase of three separate upstream assets that total
approximately 36,000 net acres with flowing net production of
approximately 16 million cubic feet per day in the E&P
segment’s Eastern Development Area, for total consideration of
$138.9 million.
- The Pennsylvania
Public Utility Commission approved a joint settlement in the
Utility segment’s Pennsylvania rate case proceeding that, effective
August 1, 2023, will increase annual base rate delivery revenues by
$23 million and, among other stipulations, includes a newly
implemented weather normalization adjustment mechanism.
- The Company is
narrowing its fiscal 2023 earnings guidance to a range of $5.15 to
$5.25 per share, excluding items impacting comparability, and
initiating its fiscal 2024 earnings guidance with a range of $5.50
to $6.00 per share, an increase of 11% from fiscal 2023, at the
midpoint (see Guidance Summary on page 8).
MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive
Officer of National Fuel Gas Company, stated: “National Fuel
achieved strong operational results in the third quarter, but lower
natural gas price realizations at Seneca and higher operating
expenses across our regulated operations weighed on our financial
results. Looking ahead to fiscal 2024, we expect significant
earnings growth, driven by our integrated development program
coupled with improved earnings at our rate-regulated businesses as
a result of rate case outcomes.
“Longer-term, our continued investment in the
modernization of our rate-regulated infrastructure, along with a
disciplined approach to Seneca’s development program and an
improved long-term outlook for natural gas prices, positions the
Company well to deliver shareholder value through future earnings
growth and increasing free cash flow generation.”
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING
RESULTS
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
(in thousands except per share amounts) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Reported GAAP
Earnings |
|
$ |
92,620 |
|
|
$ |
108,158 |
|
|
$ |
403,189 |
|
|
$ |
407,879 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset (E&P) |
|
|
1,430 |
|
|
|
— |
|
|
|
3,702 |
|
|
|
— |
|
Tax impact of unrealized (gain) loss on derivative asset |
|
|
(392 |
) |
|
|
— |
|
|
|
(1,015 |
) |
|
|
— |
|
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
|
(355 |
) |
|
|
3,434 |
|
|
|
(1,632 |
) |
|
|
10,093 |
|
Tax impact of unrealized (gain) loss on other investments |
|
|
74 |
|
|
|
(721 |
) |
|
|
343 |
|
|
|
(2,120 |
) |
Items impacting comparability from West Coast asset sale
(E&P)(1) |
|
|
— |
|
|
|
41,589 |
|
|
|
— |
|
|
|
41,589 |
|
Tax impact of items impacting comparability from West Coast asset
sale(1) |
|
|
— |
|
|
|
(10,533 |
) |
|
|
— |
|
|
|
(10,533 |
) |
Reduction of other post-retirement regulatory liability
(Utility) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(18,533 |
) |
Tax impact of reduction of other post-retirement regulatory
liability |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,892 |
|
Adjusted Operating
Results |
|
$ |
93,377 |
|
|
$ |
141,927 |
|
|
$ |
404,587 |
|
|
$ |
432,267 |
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
|
$ |
1.00 |
|
|
$ |
1.17 |
|
|
$ |
4.37 |
|
|
$ |
4.43 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset, net of tax
(E&P) |
|
|
0.01 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
|
|
— |
|
|
|
0.03 |
|
|
|
(0.01 |
) |
|
|
0.08 |
|
Items impacting comparability from West Coast asset sale, net of
tax (E&P)(1) |
|
|
— |
|
|
|
0.34 |
|
|
|
— |
|
|
|
0.34 |
|
Reduction of other post-retirement regulatory liability, net of tax
(Utility) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.16 |
) |
Rounding |
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
Adjusted Operating
Results Per Share |
|
$ |
1.01 |
|
|
$ |
1.54 |
|
|
$ |
4.38 |
|
|
$ |
4.69 |
|
(1) Refer to non-GAAP reconciliation
on page 24 for a separate breakout of items impacting comparability
from the West Coast asset sale.
DISCUSSION OF GUIDANCE UPDATE
National Fuel is revising its fiscal 2023
earnings guidance range and is now projecting that earnings,
excluding items impacting comparability, will be within the range
of $5.15 to $5.25 per share. This updated range reflects the
results of the third quarter, along with updated assumptions for
the balance of the year, as detailed on page 8.
The Exploration and Production segment’s fiscal
2023 net production is now expected to be in the range of 370 to
380 Bcfe, which reflects the impacts of over 5 Bcfe of
price-related curtailments and volumes shut-in due to the
operational impacts of low in-basin pricing and third-party
pipeline system constraints during the third quarter. This guidance
range does not incorporate any additional price-related
curtailments over the remainder of the fiscal year. Seneca
currently has firm sales contracts in place for approximately 95%
of its projected remaining fiscal 2023 natural gas production,
significantly limiting its exposure to in-basin markets.
Approximately 80% of expected remaining production is either
matched by a financial hedge or was entered into at a fixed
price.
The Company is also initiating preliminary
guidance for fiscal 2024 with earnings projected to be within a
range of $5.50 to $6.00 per share, or $5.75 per share at the
midpoint of the range, an increase of 11% from the midpoint of the
revised fiscal 2023 guidance range. Drivers of the expected
increase in earnings include anticipated higher natural gas price
realizations, further growth in natural gas production and the
associated impact on Gathering segment revenues, and substantial
growth in earnings from the regulated segments expected as a result
of anticipated base rate increases.
Seneca’s fiscal 2024 net production forecast is
increasing to an expected range of 390 to 410 Bcfe, an increase of
7% versus fiscal 2023 at the midpoint of the guidance range. In
addition, the Company is assuming NYMEX natural gas prices of $3.25
per MMBtu for the year, which will drive expected natural gas price
realizations after hedging to increase by approximately $0.10 per
Mcf from its estimated fiscal 2023 realizations. Overall, Seneca
has firm sales contracts in place for approximately 88% of its
expected fiscal 2024 natural gas production, significantly limiting
its exposure to in-basin markets. Approximately 67% of expected
production is supported by financial hedges or fixed price
contracts, limiting exposure to potential swings in natural gas
prices in fiscal 2024.
The Company’s consolidated capital expenditures
in fiscal 2024 are expected to be in a range of $865 million to
$975 million, which at the midpoint, is generally in line with its
fiscal 2023 guidance.
Capital expenditures in the Company’s
rate-regulated Pipeline and Storage and Utility segments are
expected to be in the range of $250 million to $290 million for
fiscal 2024, an increase of $25 million from fiscal 2023 at the
midpoint. Most of this spending will be focused on ongoing
infrastructure modernization programs that are geared toward
enhancing the safety, reliability, and resiliency of the Company's
critical infrastructure, as well as contributing to the ongoing
reduction in the Company’s emissions profile. The ability to ramp
up growth investments in these businesses provides for the ability
to generate stable, predictable, value-accretive returns, and is an
efficient means of deploying excess free cash flow generated across
the Company to the long-term benefit of shareholders.
In the Exploration and Production segment,
Seneca’s activity is expected to further moderate as it continues a
planned transition that targets a maintenance-to-low single-digit,
long-term production growth profile. Capital spending for fiscal
2024 is expected to be in the range of $525 million to $575
million, a decrease of 7% from fiscal 2023 at the midpoint. In
addition to moderating long-term capital spending levels, Seneca is
shifting the vast majority of its development activity to its
highly prolific Eastern Development Area where, as a result of
acquisitions over the past three years, it has a significant
inventory of well locations that generate superior returns. As part
of this transition, costs related to water management will lead to
modestly higher capital spending on a per foot basis as the
transition is fully executed. Further, Seneca plans to spend more
than $35 million of one-time costs in fiscal 2024 related to this
transition as it bolsters its seismic inventory, expands its
produced water infrastructure, and increases its leasehold position
in Lycoming County. In addition, the Gathering segment will
continue its multi-year build out of key infrastructure in the
Tioga County region and as a result, expects spending to be in the
range of $90 million to $110 million, which is generally consistent
with the current fiscal year.
Additional details on the Company’s updated
forecast assumptions and business segment guidance for fiscal 2023
and fiscal 2024 are outlined in the table on page 8.
DISCUSSION OF THIRD QUARTER RESULTS BY
SEGMENT
The following earnings discussion of each
operating segment for the quarter ended June 30, 2023 is summarized
in a tabular form on pages 9 and 10 of this report (earnings
drivers for the nine months ended June 30, 2023 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 |
|
June 30 |
(in thousands) |
|
2023 |
|
|
2022 |
|
|
Variance |
GAAP Earnings |
$ |
43,329 |
|
$ |
56,497 |
|
|
$ |
(13,168 |
) |
Unrealized (gain) loss on
derivative asset, net of tax |
|
1,038 |
|
|
— |
|
|
|
1,038 |
|
Gain on sale of West Coast
assets, net of tax |
|
— |
|
|
(9,511 |
) |
|
|
9,511 |
|
Loss from discontinuance of
crude oil cash flow hedges, net of tax |
|
— |
|
|
33,329 |
|
|
|
(33,329 |
) |
Transaction and severance
costs related to West Coast asset sale, net of tax |
|
— |
|
|
7,238 |
|
|
|
(7,238 |
) |
Adjusted Operating
Results |
$ |
44,367 |
|
$ |
87,553 |
|
|
$ |
(43,186 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
134,236 |
|
$ |
184,622 |
|
|
$ |
(50,386 |
) |
Seneca’s third quarter GAAP earnings decreased
$13.2 million versus the prior year. Last year’s third quarter
earnings included several one-time items impacting comparability
shown in the table above related to the divestiture of Seneca’s
California assets in June 2022 that did not recur this year.
Earnings were also impacted by an unrealized loss of $1.4 million
($1.0 million after-tax) recognized during the current-year third
quarter from a reduction in the implied fair value of an asset
related to the contingent consideration in connection with this
divestiture. Excluding these items, Seneca’s earnings decreased
$43.2 million. Higher natural gas production was more than offset
by lower Appalachian realized natural gas prices and the loss of
earnings related to the divestiture of Seneca’s crude oil
production in California.
Seneca produced 94.8 Bcfe during the third
quarter, an increase of 2.3 Bcfe, or 3%, from the prior year.
Despite the combined impact of approximately 5 Bcfe of
price-related curtailments and other volumes shut-in due to the
operational impacts of low in-basin pricing and third-party
pipeline system constraints, production in Appalachia increased 5.9
Bcfe, or 7%. This increase was partially offset by a 3.5 Bcfe
decrease in production related to the aforementioned California
sale.
Seneca’s average realized natural gas price,
after the impact of hedging and transportation costs, was $2.27 per
Mcf, a decrease of $0.60 per Mcf from the prior year. Lower natural
gas prices, before the impact of hedging, were partially offset by
an increase in the weighted average hedge price compared to the
prior-year third quarter.
On an absolute basis, lease operating and
transportation expense (“LOE”) decreased $17.7 million primarily
due to the California sale, slightly offset by increases in LOE
from higher well repair costs in Appalachia. LOE expense includes
$54.3 million in intercompany expense for gathering and compression
services used to connect Seneca’s production to sales points along
interstate pipelines. On a per unit basis, LOE was $0.65 per Mcfe,
a decrease of $0.21 per Mcfe from the prior year.
The decrease in Seneca’s other operating expense
of $6.5 million was primarily due to the prior-year third quarter,
non-recurring accrual of plugging and abandonment expenses related
to certain formerly owned offshore Gulf of Mexico wells that were
sold in prior years, as well as the sale of Seneca’s California
assets. Other taxes decreased $4.8 million largely attributable to
both the impact of the sale of Seneca's California assets as well
as lower Impact Fees in Pennsylvania due to the decrease in NYMEX
natural gas prices.
Depreciation, depletion and amortization
(“DD&A”) expense increased $5.4 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. DD&A expense was $0.64 per Mcfe, an increase of $0.04 per
Mcfe from the prior year.
Midstream Businesses
Pipeline and Storage Segment
The Pipeline and Storage segment’s operations
are carried out by National Fuel Gas Supply Corporation (“Supply
Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline
and Storage segment provides natural gas transportation and storage
services to affiliated and non-affiliated companies through an
integrated system of pipelines and underground natural gas storage
fields in western New York and Pennsylvania.
|
Three Months Ended |
|
June 30 |
(in thousands) |
|
2023 |
|
|
2022 |
|
Variance |
GAAP Earnings |
$ |
23,813 |
|
$ |
26,599 |
|
$ |
(2,786 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
57,636 |
|
$ |
62,565 |
|
$ |
(4,929 |
) |
The Pipeline and Storage segment’s third quarter
GAAP earnings decreased $2.8 million versus the prior year
primarily due to lower operating revenues and higher operation and
maintenance (“O&M”) expense, partially offset by an increase in
other income. The decrease in operating revenues of $3.2 million
was primarily attributable to contract expirations, partially
offset by an increase in new short-term contracts. O&M expense
increased $1.6 million primarily due to higher pipeline integrity
and personnel costs. The increase in other income of $1.7 million
was primarily attributable to a higher weighted average interest
rate on intercompany short-term notes receivables.
Gathering Segment
The Gathering segment’s operations are carried
out by National Fuel Gas Midstream Company, LLC’s limited liability
companies. The Gathering segment constructs, owns and operates
natural gas gathering pipelines and compression facilities in the
Appalachian region, which delivers Seneca and other non-affiliated
Appalachian production to the interstate pipeline system.
|
Three Months Ended |
|
June 30 |
(in thousands) |
|
2023 |
|
|
2022 |
|
Variance |
GAAP Earnings |
$ |
24,135 |
|
$ |
24,658 |
|
$ |
(523 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
46,032 |
|
$ |
46,151 |
|
$ |
(119 |
) |
The Gathering segment’s third quarter GAAP
earnings decreased $0.5 million versus the prior year primarily due
to higher O&M expense and higher income tax expense, both of
which were almost entirely offset by higher operating revenues.
Operating revenues increased $3.0 million, or 5%, which was the
result of an 8.9 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 $3.1
million was due to an increase in compressor station preventative
maintenance activity and higher compression leasing expenses, as
well as increases in personnel expenses and costs for materials.
The increase in material costs primarily reflects a higher amount
of materials being purchased as a result of the increase in
gathered volume, and to a lesser extent, rising costs from
inflation. The increase in income tax expense was primarily driven
by a higher effective state income tax rate.
Downstream Business
Utility Segment
The Utility segment operations are carried out
by National Fuel Gas Distribution Corporation (“Distribution”),
which sells or transports natural gas to customers located in
western New York and northwestern Pennsylvania.
|
Three Months Ended |
|
June 30 |
(in thousands) |
|
2023 |
|
|
2022 |
|
Variance |
GAAP Earnings |
$ |
37 |
|
$ |
4,622 |
|
$ |
(4,585 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
20,912 |
|
$ |
27,042 |
|
$ |
(6,130 |
) |
The Utility segment’s third quarter GAAP
earnings decreased $4.6 million versus the prior year primarily due
to lower customer margins (operating revenues less purchased gas
sold), as well as increases in O&M and interest expense,
partially offset by a decrease in non-service pension and OPEB
costs and higher other income.
The decline in customer margin of $2.9 million
was due primarily to a $2.6 million reduction in base rates in New
York as a result of a rate proceeding that became effective October
1, 2022 which temporarily reduced the Utility’s recovery of pension
and other post-employment benefit (“OPEB”) expenses to zero. In
addition to lowering rates, the proceeding mandated a corresponding
decrease in pension and OPEB expense, most of which had been
previously recorded in “below the line” non-service pension and
OPEB costs. This decrease was partially offset by higher revenues
from the Company’s system modernization and improvement tracking
mechanisms in its New York service territory.
O&M expense increased by $3.7 million due
primarily to higher personnel costs and an increase in legal and
consulting expenses. An increase in the cost of materials and
transportation expenses, primarily as a result of rising costs from
inflation, also contributed to higher O&M expense for the
quarter. Interest expense increased $2.4 million due primarily to a
higher weighted average interest rate on intercompany short-term
borrowings. The increase in other income of $1.3 million was
primarily attributable to interest earned on deferred gas
costs.
Corporate and All Other
The Company’s operations that are included in
Corporate and All Other generated combined earnings of $1.3 million
in the current quarter, which was a $5.5 million increase over the
combined net loss of $4.2 million in the prior-year third quarter.
The increase in earnings was primarily driven by unrealized gains
on investment securities recognized in the current quarter compared
to unrealized losses on investment securities recognized in the
prior-year third quarter. Also contributing to the increase were
changes in cash surrender value of life insurance policies, which
increased in value $1.1 million during the current quarter compared
to a decrease in value of less than $0.1 million during the
prior-year third quarter.
EARNINGS TELECONFERENCE
The Company will host a conference call on
Thursday, August 3, 2023, at 10 a.m. Eastern Time to discuss this
announcement. To pre-register for this call (recommended), please
visit https://conferencingportals.com/event/ygNxHFJo. 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
1-888–330–2513 and provide Conference ID 47961. 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
Thursday, August 10, 2023. To access the telephone replay, dial
U.S. toll free 1-800-770-2030 and provide Conference ID 47961.
National Fuel is an integrated energy company
reporting financial results for four operating segments:
Exploration and Production, Pipeline and Storage, Gathering, and
Utility. Additional information about National Fuel is available at
www.nationalfuelgas.com.
Analyst Contact: |
Brandon J. Haspett |
716-857-7697 |
Media
Contact: |
Karen L.
Merkel |
716-857-7654 |
Certain statements contained herein, including
statements identified by the use of the words “anticipates,”
“estimates,” “expects,” “forecasts,” “intends,” “plans,”
“predicts,” “projects,” “believes,” “seeks,” “will,” “may” and
similar expressions, and statements which are other than statements
of historical facts, are “forward-looking statements” as defined by
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, which
could cause actual results or outcomes to differ materially from
those expressed in the forward-looking statements. The Company’s
expectations, beliefs and projections contained herein are
expressed in good faith and are believed to have a reasonable
basis, but there can be no assurance that such expectations,
beliefs or projections will result or be achieved or accomplished.
In addition to other factors, the following are important factors
that could cause actual results to differ materially from those
discussed in the forward-looking statements: changes in laws,
regulations or judicial interpretations to which the Company is
subject, including those involving derivatives, taxes, safety,
employment, climate change, other environmental matters, real
property, and exploration and production activities such as
hydraulic fracturing; governmental/regulatory actions, initiatives
and proceedings, including those involving rate cases (which
address, among other things, target rates of return, rate design,
retained natural gas and system modernization),
environmental/safety requirements, affiliate relationships,
industry structure, and franchise renewal; the Company’s ability to
estimate accurately the time and resources necessary to meet
emissions targets; governmental/regulatory actions and/or market
pressures to reduce or eliminate reliance on natural gas; changes
in economic conditions, including inflationary pressures, supply
chain issues, liquidity challenges, and global, national or
regional recessions, and their effect on the demand for, and
customers’ ability to pay for, the Company’s products and services;
changes in the price of natural gas; the creditworthiness or
performance of the Company’s key suppliers, customers and
counterparties; financial and economic conditions, including the
availability of credit, and occurrences affecting the Company’s
ability to obtain financing on acceptable terms for working
capital, capital expenditures and other investments, including any
downgrades in the Company’s credit ratings and changes in interest
rates and other capital market conditions; impairments under the
SEC’s full cost ceiling test for natural gas reserves; increased
costs or delays or changes in plans with respect to Company
projects or related projects of other companies, as well as
difficulties or delays in obtaining necessary governmental
approvals, permits or orders or in obtaining the cooperation of
interconnecting facility operators; the Company’s ability to
complete planned strategic transactions; changes in price
differentials between similar quantities of natural gas sold at
different geographic locations, and the effect of such changes on
commodity production, revenues and demand for pipeline
transportation capacity to or from such locations; the impact of
information technology disruptions, cybersecurity or data security
breaches; factors affecting the Company’s ability to successfully
identify, drill for and produce economically viable natural gas
reserves, including among others geology, lease availability and
costs, title disputes, weather conditions, shortages, delays or
unavailability of equipment and services required in drilling
operations, insufficient gathering, processing and transportation
capacity, the need to obtain governmental approvals and permits,
and compliance with environmental laws and regulations; increasing
health care costs and the resulting effect on health insurance
premiums and on the obligation to provide other post-retirement
benefits; other changes in price differentials between similar
quantities of natural gas having different quality, heating value,
hydrocarbon mix or delivery date; the cost and effects of legal and
administrative claims against the Company or activist shareholder
campaigns to effect changes at the Company; negotiations with the
collective bargaining units representing the Company's workforce,
including potential work stoppages during negotiations; uncertainty
of natural gas reserve estimates; significant differences between
the Company’s projected and actual production levels for natural
gas; changes in demographic patterns and weather conditions
(including those related to climate change); changes in the
availability, price or accounting treatment of derivative financial
instruments; changes in laws, actuarial assumptions, the interest
rate environment and the return on plan/trust assets related to the
Company’s pension and other post-retirement benefits, which can
affect future funding obligations and costs and plan liabilities;
economic disruptions or uninsured losses resulting from major
accidents, fires, severe weather, natural disasters, terrorist
activities or acts of war, as well as economic and operational
disruptions due to third-party outages; significant differences
between the Company’s projected and actual capital expenditures and
operating expenses; or increasing costs of insurance, changes in
coverage and the ability to obtain insurance. The Company disclaims
any obligation to update any forward-looking statements to reflect
events or circumstances after the date thereof.
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
GUIDANCE SUMMARY
As discussed on page 2, the Company is revising
its earnings guidance for fiscal 2023 and initiating guidance for
fiscal 2024. Additional details on the Company's forecast
assumptions and business segment guidance for fiscal 2023 and
fiscal 2024 are outlined in the table below.
The revised earnings guidance range does not
include the impact of certain items that impacted the comparability
of earnings during the nine months ended June 30, 2023, including:
(1) after-tax unrealized losses on a derivative asset, which
reduced earnings by $0.03 per share; and (2) after-tax unrealized
gains on other investments, which increased earnings by $0.01 per
share. 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 three months 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.
|
Updated FY 2023
Guidance |
|
Preliminary FY 2024 Guidance |
Adjusted Consolidated
Earnings per Share, excluding items impacting
comparability |
$5.15 to $5.25 |
|
$5.50 to $6.00 |
Consolidated Effective
Tax Rate |
~ 25.5% |
|
~ 25.5 - 26% |
|
|
|
|
Capital
Expenditures (Millions)* |
|
|
|
Exploration and Production |
$575 - $600 |
|
$525 - $575 |
Pipeline and Storage |
$110 - $130 |
|
$120 - $140 |
Gathering |
$95 - $105 |
|
$90 - $110 |
Utility |
$125 - $135 |
|
$130 - $150 |
Consolidated Capital Expenditures |
$905 - $970 |
|
$865 - $975 |
|
|
|
|
Exploration &
Production Segment Guidance** |
|
|
|
|
|
|
|
Commodity Price Assumptions |
|
|
|
NYMEX natural gas price |
$2.60 /MMBtu |
|
$3.25 /MMBtu |
Appalachian basin spot price |
$1.60 /MMBtu |
|
$2.45 /MMBtu |
|
|
|
|
Production (Bcfe) |
370 to 380 |
|
390 to 410 |
|
|
|
|
E&P Operating Costs ($/Mcfe) |
|
|
|
LOE |
$0.67 - $0.68 |
|
$0.69 - $0.71 |
G&A |
~$0.18 |
|
$0.17 - $0.19 |
DD&A |
$0.62 - $0.64 |
|
$0.66 - $0.70 |
|
|
|
|
Other Business Segment
Guidance (Millions) |
|
|
|
Gathering Segment Revenues |
$225 - $235 |
|
$240 - $260 |
Pipeline and Storage Segment Revenues |
$370 - $380 |
|
$380 - $420 |
* Capital expenditures guidance for fiscal 2023
excludes capital related to acquisitions announced during the
fiscal year.
** Fiscal 2023 commodity price assumptions are for the remaining
three months of the fiscal year.
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
QUARTER ENDED JUNE 30, 2023 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2022 GAAP earnings |
$ |
56,497 |
|
|
$ |
26,599 |
|
|
$ |
24,658 |
|
|
$ |
4,622 |
|
|
$ |
(4,218 |
) |
|
$ |
108,158 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of West Coast
assets |
|
(12,736 |
) |
|
|
|
|
|
|
|
|
|
|
(12,736 |
) |
Tax impact of gain on sale of
West Coast assets |
|
3,225 |
|
|
|
|
|
|
|
|
|
|
|
3,225 |
|
Loss from discontinuance of
crude oil cash flow hedges |
|
44,632 |
|
|
|
|
|
|
|
|
|
|
|
44,632 |
|
Tax impact of loss from
discontinuance of crude oil cash flow hedges |
|
(11,303 |
) |
|
|
|
|
|
|
|
|
|
|
(11,303 |
) |
Transaction and severance
costs related to West Coast asset sale |
|
9,693 |
|
|
|
|
|
|
|
|
|
|
|
9,693 |
|
Tax impact of transaction and
severance costs related to West Coast asset sale |
|
(2,455 |
) |
|
|
|
|
|
|
|
|
|
|
(2,455 |
) |
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
|
3,434 |
|
|
|
3,434 |
|
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
|
(721 |
) |
|
|
(721 |
) |
Third quarter 2022
adjusted operating results |
|
87,553 |
|
|
|
26,599 |
|
|
|
24,658 |
|
|
|
4,622 |
|
|
|
(1,505 |
) |
|
|
141,927 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
12,371 |
|
|
|
|
|
|
|
|
|
|
|
12,371 |
|
Higher (lower) crude oil
production |
|
(31,860 |
) |
|
|
|
|
|
|
|
|
|
|
(31,860 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
(44,649 |
) |
|
|
|
|
|
|
|
|
|
|
(44,649 |
) |
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
(2,491 |
) |
|
|
2,350 |
|
|
|
|
|
|
|
(141 |
) |
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of new rates**** |
|
|
|
|
|
|
|
(2,015 |
) |
|
|
|
|
(2,015 |
) |
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
866 |
|
|
|
|
|
866 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
13,994 |
|
|
|
|
|
|
|
|
|
|
|
13,994 |
|
Lower (higher) operating
expenses |
|
6,138 |
|
|
|
(1,239 |
) |
|
|
(2,432 |
) |
|
|
(3,105 |
) |
|
|
|
|
(638 |
) |
Lower (higher) property,
franchise and other taxes |
|
3,807 |
|
|
|
|
|
|
|
|
|
|
|
3,807 |
|
Lower (higher) depreciation /
depletion |
|
(4,304 |
) |
|
|
(324 |
) |
|
|
(314 |
) |
|
|
|
|
|
|
(4,942 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
533 |
|
|
|
1,292 |
|
|
|
|
|
3,188 |
|
|
|
|
|
5,013 |
|
(Higher) lower interest
expense |
|
759 |
|
|
|
|
|
435 |
|
|
|
(2,154 |
) |
|
|
2,199 |
|
|
|
1,239 |
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
(370 |
) |
|
|
187 |
|
|
|
(631 |
) |
|
|
(884 |
) |
|
|
146 |
|
|
|
(1,552 |
) |
All other / rounding |
|
395 |
|
|
|
(211 |
) |
|
|
69 |
|
|
|
(481 |
) |
|
|
185 |
|
|
|
(43 |
) |
Third quarter 2023
adjusted operating results |
|
44,367 |
|
|
|
23,813 |
|
|
|
24,135 |
|
|
|
37 |
|
|
|
1,025 |
|
|
|
93,377 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset |
|
(1,430 |
) |
|
|
|
|
|
|
|
|
|
|
(1,430 |
) |
Tax impact of unrealized gain
(loss) on derivative asset |
|
392 |
|
|
|
|
|
|
|
|
|
|
|
392 |
|
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
355 |
|
|
|
355 |
|
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
(74 |
) |
|
|
(74 |
) |
Third quarter 2023
GAAP earnings |
$ |
43,329 |
|
|
$ |
23,813 |
|
|
$ |
24,135 |
|
|
$ |
37 |
|
|
$ |
1,306 |
|
|
$ |
92,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect
intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
**** Amount is
offset by corresponding decrease in other deductions and will have
no earnings impact for the year ended September 30, 2023. |
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
QUARTER ENDED JUNE 30, 2023 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2022 GAAP earnings per share |
$ |
0.61 |
|
|
$ |
0.29 |
|
|
$ |
0.27 |
|
|
$ |
0.05 |
|
|
$ |
(0.05 |
) |
|
$ |
1.17 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of West Coast
assets, net of tax |
|
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
(0.10 |
) |
Loss from discontinuance of
crude oil cash flow hedges, net of tax |
|
0.36 |
|
|
|
|
|
|
|
|
|
|
|
0.36 |
|
Transaction and severance
costs related to West Coast asset sale, net of tax |
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
0.08 |
|
Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
0.03 |
|
|
|
0.03 |
|
Third quarter 2022
adjusted operating results per share |
|
0.95 |
|
|
|
0.29 |
|
|
|
0.27 |
|
|
|
0.05 |
|
|
|
(0.02 |
) |
|
|
1.54 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
0.13 |
|
|
|
|
|
|
|
|
|
|
|
0.13 |
|
Higher (lower) crude oil
production |
|
(0.35 |
) |
|
|
|
|
|
|
|
|
|
|
(0.35 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
(0.48 |
) |
|
|
|
|
|
|
|
|
|
|
(0.48 |
) |
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
(0.03 |
) |
|
|
0.03 |
|
|
|
|
|
|
|
— |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of new rates**** |
|
|
|
|
|
|
|
(0.02 |
) |
|
|
|
|
(0.02 |
) |
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
0.01 |
|
|
|
|
|
0.01 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
0.15 |
|
|
|
|
|
|
|
|
|
|
|
0.15 |
|
Lower (higher) operating
expenses |
|
0.07 |
|
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
|
|
|
|
— |
|
Lower (higher) property,
franchise and other taxes |
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
0.04 |
|
Lower (higher) depreciation /
depletion |
|
(0.05 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
(0.05 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
0.01 |
|
|
|
0.01 |
|
|
|
|
|
0.03 |
|
|
|
|
|
0.05 |
|
(Higher) lower interest
expense |
|
0.01 |
|
|
|
|
|
— |
|
|
|
(0.02 |
) |
|
|
0.02 |
|
|
|
0.01 |
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.02 |
) |
All other / rounding |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
— |
|
Third quarter 2023
adjusted operating results per share |
|
0.48 |
|
|
|
0.26 |
|
|
|
0.26 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
1.01 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset, net of tax |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
Third quarter 2023
GAAP earnings per share |
$ |
0.47 |
|
|
$ |
0.26 |
|
|
$ |
0.26 |
|
|
$ |
— |
|
|
$ |
0.01 |
|
|
$ |
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect
intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
**** Amount is
offset by corresponding decrease in other deductions and will have
no earnings impact for the year ended September 30, 2023. |
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
NINE MONTHS ENDED JUNE 30, 2023 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended June 30, 2022 GAAP earnings |
$ |
189,987 |
|
|
$ |
77,236 |
|
|
$ |
69,887 |
|
|
$ |
79,800 |
|
|
$ |
(9,031 |
) |
|
$ |
407,879 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Reduction of other
post-retirement regulatory liability |
|
|
|
|
|
|
|
(18,533 |
) |
|
|
|
|
(18,533 |
) |
Tax impact of reduction of
other post-retirement regulatory liability |
|
|
|
|
|
|
|
3,892 |
|
|
|
|
|
3,892 |
|
Gain on sale of West Coast
assets |
|
(12,736 |
) |
|
|
|
|
|
|
|
|
|
|
(12,736 |
) |
Tax impact of gain on sale of
West Coast assets |
|
3,225 |
|
|
|
|
|
|
|
|
|
|
|
3,225 |
|
Loss from discontinuance of
crude oil cash flow hedges |
|
44,632 |
|
|
|
|
|
|
|
|
|
|
|
44,632 |
|
Tax impact of loss from
discontinuance of crude oil cash flow hedges |
|
(11,303 |
) |
|
|
|
|
|
|
|
|
|
|
(11,303 |
) |
Transaction and severance
costs related to West Coast asset sale |
|
9,693 |
|
|
|
|
|
|
|
|
|
|
|
9,693 |
|
Tax impact of transaction and
severance costs related to West Coast asset sale |
|
(2,455 |
) |
|
|
|
|
|
|
|
|
|
|
(2,455 |
) |
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
|
10,093 |
|
|
|
10,093 |
|
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
|
(2,120 |
) |
|
|
(2,120 |
) |
Nine months ended June
30, 2022 adjusted operating results |
|
221,043 |
|
|
|
77,236 |
|
|
|
69,887 |
|
|
|
65,159 |
|
|
|
(1,058 |
) |
|
|
432,267 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
49,567 |
|
|
|
|
|
|
|
|
|
|
|
49,567 |
|
Higher (lower) crude oil
production |
|
(87,986 |
) |
|
|
|
|
|
|
|
|
|
|
(87,986 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
(10,815 |
) |
|
|
|
|
|
|
|
|
|
|
(10,815 |
) |
Higher (lower) other operating
revenues |
|
(2,161 |
) |
|
|
|
|
|
|
|
|
|
|
(2,161 |
) |
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
4,629 |
|
|
|
9,117 |
|
|
|
|
|
|
|
13,746 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of new rates**** |
|
|
|
|
|
|
|
(11,126 |
) |
|
|
|
|
(11,126 |
) |
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
3,462 |
|
|
|
|
|
3,462 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
25,335 |
|
|
|
|
|
|
|
|
|
|
|
25,335 |
|
Lower (higher) operating
expenses |
|
12,644 |
|
|
|
(4,939 |
) |
|
|
(4,537 |
) |
|
|
(7,213 |
) |
|
|
(590 |
) |
|
|
(4,635 |
) |
Lower (higher) property,
franchise and other taxes |
|
4,697 |
|
|
|
|
|
|
|
|
|
|
|
4,697 |
|
Lower (higher) depreciation /
depletion |
|
(15,450 |
) |
|
|
(1,941 |
) |
|
|
(1,003 |
) |
|
|
|
|
|
|
(18,394 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
2,837 |
|
|
|
2,810 |
|
|
|
519 |
|
|
|
12,840 |
|
|
|
(3,585 |
) |
|
|
15,421 |
|
(Higher) lower interest
expense |
|
|
|
(899 |
) |
|
|
653 |
|
|
|
(7,577 |
) |
|
|
5,837 |
|
|
|
(1,986 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
(1,807 |
) |
|
|
(64 |
) |
|
|
(1,408 |
) |
|
|
(144 |
) |
|
|
(13 |
) |
|
|
(3,436 |
) |
All other / rounding |
|
286 |
|
|
|
315 |
|
|
|
(21 |
) |
|
|
173 |
|
|
|
(122 |
) |
|
|
631 |
|
Nine months ended June
30, 2023 adjusted operating results |
|
198,190 |
|
|
|
77,147 |
|
|
|
73,207 |
|
|
|
55,574 |
|
|
|
469 |
|
|
|
404,587 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset |
|
(3,702 |
) |
|
|
|
|
|
|
|
|
|
|
(3,702 |
) |
Tax impact of unrealized gain
(loss) on derivative asset |
|
1,015 |
|
|
|
|
|
|
|
|
|
|
|
1,015 |
|
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
1,632 |
|
|
|
1,632 |
|
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
(343 |
) |
|
|
(343 |
) |
Nine months ended June
30, 2023 GAAP earnings |
$ |
195,503 |
|
|
$ |
77,147 |
|
|
$ |
73,207 |
|
|
$ |
55,574 |
|
|
$ |
1,758 |
|
|
$ |
403,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect
intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
**** Amount is
offset by corresponding decrease in other deductions and will have
no earnings impact for the year ended September 30, 2023. |
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
NINE MONTHS ENDED JUNE 30, 2023 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
Nine months ended June 30, 2022 GAAP earnings per
share |
$ |
2.06 |
|
|
$ |
0.84 |
|
|
$ |
0.76 |
|
|
$ |
0.87 |
|
|
$ |
(0.10 |
) |
|
$ |
4.43 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Reduction of other post-retirement regulatory liability, net of
tax |
|
|
|
|
|
|
|
(0.16 |
) |
|
|
|
|
(0.16 |
) |
Gain on sale of West Coast
assets, net of tax |
|
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
(0.10 |
) |
Loss from discontinuance of
crude oil cash flow hedges, net of tax |
|
0.36 |
|
|
|
|
|
|
|
|
|
|
|
0.36 |
|
Transaction and severance
costs related to West Coast asset sale, net of tax |
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
0.08 |
|
Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
0.08 |
|
|
|
0.08 |
|
Nine months ended June
30, 2022 adjusted operating results per share |
|
2.40 |
|
|
|
0.84 |
|
|
|
0.76 |
|
|
|
0.71 |
|
|
|
(0.02 |
) |
|
|
4.69 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
0.54 |
|
|
|
|
|
|
|
|
|
|
|
0.54 |
|
Higher (lower) crude oil
production |
|
(0.95 |
) |
|
|
|
|
|
|
|
|
|
|
(0.95 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|
(0.12 |
) |
Higher (lower) other operating
revenues |
|
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
(0.02 |
) |
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
0.05 |
|
|
|
0.10 |
|
|
|
|
|
|
|
0.15 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of new rates**** |
|
|
|
|
|
|
|
(0.12 |
) |
|
|
|
|
(0.12 |
) |
System modernization and
improvement tracker revenues |
|
|
|
|
|
|
|
0.04 |
|
|
|
|
|
0.04 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
0.27 |
|
|
|
|
|
|
|
|
|
|
|
0.27 |
|
Lower (higher) operating
expenses |
|
0.14 |
|
|
|
(0.05 |
) |
|
|
(0.05 |
) |
|
|
(0.08 |
) |
|
|
(0.01 |
) |
|
|
(0.05 |
) |
Lower (higher) property,
franchise and other taxes |
|
0.05 |
|
|
|
|
|
|
|
|
|
|
|
0.05 |
|
Lower (higher) depreciation /
depletion |
|
(0.17 |
) |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
(0.20 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
0.03 |
|
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.14 |
|
|
|
(0.04 |
) |
|
|
0.17 |
|
(Higher) lower interest
expense |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.08 |
) |
|
|
0.06 |
|
|
|
(0.02 |
) |
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.04 |
) |
All other / rounding |
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.01 |
) |
Nine months ended June
30, 2023 adjusted operating results per share |
|
2.15 |
|
|
|
0.84 |
|
|
|
0.79 |
|
|
|
0.60 |
|
|
|
— |
|
|
|
4.38 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on
derivative asset, net of tax |
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
(0.03 |
) |
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.01 |
|
Rounding |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.01 |
|
Nine months ended June
30, 2023 GAAP earnings per share |
$ |
2.12 |
|
|
$ |
0.84 |
|
|
$ |
0.79 |
|
|
$ |
0.60 |
|
|
$ |
0.02 |
|
|
$ |
4.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect
intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
**** Amount is
offset by corresponding decrease in other deductions and will have
no earnings impact for the year ended September 30, 2023. |
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
(Thousands of Dollars, except
per share amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
(Unaudited) |
|
(Unaudited) |
|
SUMMARY OF OPERATIONS |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Operating Revenues: |
|
|
|
|
|
|
|
|
Utility Revenues |
$ |
144,538 |
|
|
$ |
179,888 |
|
|
$ |
862,914 |
|
|
$ |
785,664 |
|
|
Exploration and Production and Other Revenues |
|
216,581 |
|
|
|
252,638 |
|
|
|
738,107 |
|
|
|
758,594 |
|
|
Pipeline and Storage and
Gathering Revenues |
|
67,585 |
|
|
|
70,098 |
|
|
|
203,803 |
|
|
|
206,642 |
|
|
|
|
428,704 |
|
|
|
502,624 |
|
|
|
1,804,824 |
|
|
|
1,750,900 |
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
Purchased Gas |
|
35,425 |
|
|
|
67,948 |
|
|
|
450,461 |
|
|
|
369,168 |
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
Utility |
|
50,080 |
|
|
|
46,403 |
|
|
|
156,885 |
|
|
|
146,523 |
|
|
Exploration and Production and Other |
|
27,659 |
|
|
|
64,593 |
|
|
|
86,315 |
|
|
|
160,016 |
|
|
Pipeline and Storage and Gathering |
|
38,607 |
|
|
|
33,988 |
|
|
|
109,347 |
|
|
|
97,434 |
|
|
Property, Franchise and Other Taxes |
|
20,427 |
|
|
|
25,874 |
|
|
|
71,999 |
|
|
|
78,093 |
|
|
Depreciation, Depletion and Amortization |
|
102,410 |
|
|
|
95,857 |
|
|
|
299,973 |
|
|
|
275,681 |
|
|
|
|
274,608 |
|
|
|
334,663 |
|
|
|
1,174,980 |
|
|
|
1,126,915 |
|
|
Gain on Sale of Assets |
|
— |
|
|
|
12,736 |
|
|
|
— |
|
|
|
12,736 |
|
|
Operating Income |
|
154,096 |
|
|
|
180,697 |
|
|
|
629,844 |
|
|
|
636,721 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
Other Income (Deductions) |
|
3,551 |
|
|
|
(5,649 |
) |
|
|
12,754 |
|
|
|
3,291 |
|
|
Interest Expense on Long-Term Debt |
|
(26,311 |
) |
|
|
(30,091 |
) |
|
|
(83,499 |
) |
|
|
(90,300 |
) |
|
Other Interest Expense |
|
(5,781 |
) |
|
|
(3,882 |
) |
|
|
(15,485 |
) |
|
|
(6,561 |
) |
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
|
125,555 |
|
|
|
141,075 |
|
|
|
543,614 |
|
|
|
543,151 |
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense |
|
32,935 |
|
|
|
32,917 |
|
|
|
140,425 |
|
|
|
135,272 |
|
|
|
|
|
|
|
|
|
|
|
Net Income Available for
Common Stock |
$ |
92,620 |
|
|
$ |
108,158 |
|
|
$ |
403,189 |
|
|
$ |
407,879 |
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share |
|
|
|
|
|
|
|
|
Basic |
$ |
1.01 |
|
|
$ |
1.18 |
|
|
$ |
4.40 |
|
|
$ |
4.46 |
|
|
Diluted |
$ |
1.00 |
|
|
$ |
1.17 |
|
|
$ |
4.37 |
|
|
$ |
4.43 |
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares: |
|
|
|
|
|
|
|
|
Used in Basic Calculation |
|
91,803,638 |
|
|
|
91,456,265 |
|
|
|
91,725,286 |
|
|
|
91,388,417 |
|
|
Used in Diluted
Calculation |
|
92,294,666 |
|
|
|
92,168,518 |
|
|
|
92,268,904 |
|
|
|
92,083,560 |
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
|
|
|
June 30, |
|
September 30, |
(Thousands of Dollars) |
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
Property, Plant and
Equipment |
$ |
13,326,563 |
|
|
$ |
12,551,909 |
|
Less -
Accumulated Depreciation, Depletion and Amortization |
|
6,245,650 |
|
|
|
5,985,432 |
|
Net Property, Plant and Equipment |
|
7,080,913 |
|
|
|
6,566,477 |
|
Current Assets: |
|
|
|
Cash and Temporary Cash
Investments |
|
53,415 |
|
|
|
46,048 |
|
Hedging Collateral
Deposits |
|
— |
|
|
|
91,670 |
|
Receivables - Net |
|
183,377 |
|
|
|
361,626 |
|
Unbilled Revenue |
|
13,476 |
|
|
|
30,075 |
|
Gas Stored Underground |
|
13,047 |
|
|
|
32,364 |
|
Materials and Supplies - at
average cost |
|
48,288 |
|
|
|
40,637 |
|
Unrecovered Purchased Gas
Costs |
|
24,098 |
|
|
|
99,342 |
|
Other Current Assets |
|
71,586 |
|
|
|
59,369 |
|
Total Current Assets |
|
407,287 |
|
|
|
761,131 |
|
Other Assets: |
|
|
|
Recoverable Future Taxes |
|
104,794 |
|
|
|
106,247 |
|
Unamortized Debt Expense |
|
7,651 |
|
|
|
8,884 |
|
Other Regulatory Assets |
|
63,398 |
|
|
|
67,101 |
|
Deferred Charges |
|
77,886 |
|
|
|
77,472 |
|
Other Investments |
|
74,777 |
|
|
|
95,025 |
|
Goodwill |
|
5,476 |
|
|
|
5,476 |
|
Prepaid Pension and
Post-Retirement Benefit Costs |
|
234,425 |
|
|
|
196,597 |
|
Fair Value of Derivative
Financial Instruments |
|
46,280 |
|
|
|
9,175 |
|
Other |
|
3,745 |
|
|
|
2,677 |
|
Total Other Assets |
|
618,432 |
|
|
|
568,654 |
|
Total Assets |
$ |
8,106,632 |
|
|
$ |
7,896,262 |
|
CAPITALIZATION AND LIABILITIES |
|
|
|
Capitalization: |
|
|
|
Comprehensive Shareholders'
Equity |
|
|
|
Common Stock, $1 Par Value
Authorized - 200,000,000 Shares; Issued and |
|
|
|
Outstanding - 91,803,996
Shares and 91,478,064 Shares, Respectively |
$ |
91,804 |
|
|
$ |
91,478 |
|
Paid in Capital |
|
1,035,852 |
|
|
|
1,027,066 |
|
Earnings Reinvested in the
Business |
|
1,857,630 |
|
|
|
1,587,085 |
|
Accumulated Other Comprehensive Loss |
|
(49,384 |
) |
|
|
(625,733 |
) |
Total Comprehensive Shareholders' Equity |
|
2,935,902 |
|
|
|
2,079,896 |
|
Long-Term Debt, Net of Current Portion and Unamortized Discount and
Debt Issuance Costs |
|
2,383,685 |
|
|
|
2,083,409 |
|
Total Capitalization |
|
5,319,587 |
|
|
|
4,163,305 |
|
Current and Accrued Liabilities: |
|
|
|
Notes Payable to Banks and
Commercial Paper |
|
138,500 |
|
|
|
60,000 |
|
Current Portion of Long-Term
Debt |
|
— |
|
|
|
549,000 |
|
Accounts Payable |
|
91,808 |
|
|
|
178,945 |
|
Amounts Payable to
Customers |
|
22,391 |
|
|
|
419 |
|
Dividends Payable |
|
45,444 |
|
|
|
43,452 |
|
Interest Payable on Long-Term
Debt |
|
40,134 |
|
|
|
17,376 |
|
Customer Advances |
|
— |
|
|
|
26,108 |
|
Customer Security
Deposits |
|
34,024 |
|
|
|
24,283 |
|
Other Accruals and Current
Liabilities |
|
260,897 |
|
|
|
257,327 |
|
Fair
Value of Derivative Financial Instruments |
|
32,502 |
|
|
|
785,659 |
|
Total Current and Accrued Liabilities |
|
665,700 |
|
|
|
1,942,569 |
|
Other Liabilities: |
|
|
|
Deferred Income Taxes |
|
1,030,526 |
|
|
|
698,229 |
|
Taxes Refundable to
Customers |
|
347,066 |
|
|
|
362,098 |
|
Cost of Removal Regulatory
Liability |
|
272,740 |
|
|
|
259,947 |
|
Other Regulatory
Liabilities |
|
190,907 |
|
|
|
188,803 |
|
Other Post-Retirement
Liabilities |
|
2,921 |
|
|
|
3,065 |
|
Asset Retirement
Obligations |
|
160,415 |
|
|
|
161,545 |
|
Other
Liabilities |
|
116,770 |
|
|
|
116,701 |
|
Total Other Liabilities |
|
2,121,345 |
|
|
|
1,790,388 |
|
Commitments and Contingencies |
|
— |
|
|
|
— |
|
Total Capitalization and Liabilities |
$ |
8,106,632 |
|
|
$ |
7,896,262 |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
|
Nine Months Ended |
|
|
June 30, |
(Thousands of Dollars) |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
Operating Activities: |
|
|
|
|
Net Income Available for
Common Stock |
|
$ |
403,189 |
|
|
$ |
407,879 |
|
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities: |
|
|
|
|
Gain on Sale of Assets |
|
|
— |
|
|
|
(12,736 |
) |
Depreciation, Depletion and Amortization |
|
|
299,973 |
|
|
|
275,681 |
|
Deferred Income Taxes |
|
|
101,096 |
|
|
|
121,150 |
|
Stock-Based Compensation |
|
|
15,807 |
|
|
|
15,178 |
|
Reduction of Other Post-Retirement Regulatory Liability |
|
|
— |
|
|
|
(18,533 |
) |
Other |
|
|
16,640 |
|
|
|
27,527 |
|
Change in: |
|
|
|
|
Receivables and Unbilled Revenue |
|
|
192,324 |
|
|
|
(194,832 |
) |
Gas Stored Underground and Materials, Supplies and Emission
Allowances |
|
|
11,757 |
|
|
|
24,141 |
|
Unrecovered Purchased Gas Costs |
|
|
75,244 |
|
|
|
716 |
|
Other Current Assets |
|
|
(12,230 |
) |
|
|
(1,699 |
) |
Accounts Payable |
|
|
(52,340 |
) |
|
|
19,259 |
|
Amounts Payable to Customers |
|
|
21,972 |
|
|
|
271 |
|
Customer Advances |
|
|
(26,108 |
) |
|
|
(17,223 |
) |
Customer Security Deposits |
|
|
9,741 |
|
|
|
5,908 |
|
Other Accruals and Current Liabilities |
|
|
45,363 |
|
|
|
61,322 |
|
Other Assets |
|
|
(39,367 |
) |
|
|
(44,184 |
) |
Other Liabilities |
|
|
(7,949 |
) |
|
|
(15,809 |
) |
Net Cash Provided by Operating Activities |
|
$ |
1,055,112 |
|
|
$ |
654,016 |
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
Capital Expenditures |
|
$ |
(727,738 |
) |
|
$ |
(592,487 |
) |
Net Proceeds from Sale of Oil
and Gas Producing Properties |
|
|
— |
|
|
|
254,439 |
|
Acquisition of Upstream
Assets |
|
|
(124,758 |
) |
|
|
— |
|
Sale of Fixed Income Mutual
Fund Shares in Grantor Trust |
|
|
10,000 |
|
|
|
30,000 |
|
Other |
|
|
13,397 |
|
|
|
13,528 |
|
Net Cash Used in Investing Activities |
|
$ |
(829,099 |
) |
|
$ |
(294,520 |
) |
|
|
|
|
|
Financing Activities: |
|
|
|
|
Proceeds from Issuance of
Short-Term Note Payable to Bank |
|
$ |
250,000 |
|
|
$ |
— |
|
Repayment of Short-Term Note
Payable to Bank |
|
|
(250,000 |
) |
|
|
— |
|
Net Change in Other Short-Term
Notes Payable to Banks and Commercial Paper |
|
|
78,500 |
|
|
|
241,500 |
|
Reduction of Long-Term
Debt |
|
|
(549,000 |
) |
|
|
— |
|
Dividends Paid on Common
Stock |
|
|
(130,653 |
) |
|
|
(124,701 |
) |
Net Proceeds From Issuance of
Long-Term Debt |
|
|
297,533 |
|
|
|
— |
|
Net
Repurchases of Common Stock |
|
|
(6,696 |
) |
|
|
(9,387 |
) |
Net Cash Provided by (Used in) Financing Activities |
|
$ |
(310,316 |
) |
|
$ |
107,412 |
|
|
|
|
|
|
Net Increase (Decrease) in
Cash, Cash Equivalents, and Restricted Cash |
|
|
(84,303 |
) |
|
|
466,908 |
|
Cash,
Cash Equivalents, and Restricted Cash at Beginning of Period |
|
|
137,718 |
|
|
|
120,138 |
|
Cash, Cash Equivalents, and Restricted Cash at June 30 |
|
$ |
53,415 |
|
|
$ |
587,046 |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
UPSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
EXPLORATION AND
PRODUCTION SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
Total Operating Revenues |
$ |
216,581 |
|
|
$ |
252,638 |
|
|
$ |
(36,057 |
) |
|
$ |
738,107 |
|
$ |
758,428 |
|
$ |
(20,321 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
|
General and Administrative Expense |
|
15,877 |
|
|
|
26,844 |
|
|
|
(10,967 |
) |
|
|
48,910 |
|
|
63,396 |
|
|
(14,486 |
) |
Lease Operating and Transportation Expense |
|
61,815 |
|
|
|
79,529 |
|
|
|
(17,714 |
) |
|
|
189,144 |
|
|
221,213 |
|
|
(32,069 |
) |
All Other Operation and Maintenance Expense |
|
2,358 |
|
|
|
8,854 |
|
|
|
(6,496 |
) |
|
|
6,970 |
|
|
18,183 |
|
|
(11,213 |
) |
Property, Franchise and Other Taxes |
|
2,295 |
|
|
|
7,114 |
|
|
|
(4,819 |
) |
|
|
13,943 |
|
|
19,888 |
|
|
(5,945 |
) |
Depreciation, Depletion and Amortization |
|
60,584 |
|
|
|
55,136 |
|
|
|
5,448 |
|
|
|
174,747 |
|
|
155,190 |
|
|
19,557 |
|
|
|
142,929 |
|
|
|
177,477 |
|
|
|
(34,548 |
) |
|
|
433,714 |
|
|
477,870 |
|
|
(44,156 |
) |
Gain on Sale of Assets |
|
— |
|
|
|
12,736 |
|
|
|
(12,736 |
) |
|
|
— |
|
|
12,736 |
|
|
(12,736 |
) |
Operating Income |
|
73,652 |
|
|
|
87,897 |
|
|
|
(14,245 |
) |
|
|
304,393 |
|
|
293,294 |
|
|
11,099 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit (Costs) Credit |
|
347 |
|
|
|
(186 |
) |
|
|
533 |
|
|
|
1,042 |
|
|
(558 |
) |
|
1,600 |
|
Interest and Other Income (Deductions) |
|
(806 |
) |
|
|
482 |
|
|
|
(1,288 |
) |
|
|
(1,098 |
) |
|
613 |
|
|
(1,711 |
) |
Interest Expense |
|
(13,628 |
) |
|
|
(14,589 |
) |
|
|
961 |
|
|
|
(39,049 |
) |
|
(38,927 |
) |
|
(122 |
) |
Income Before Income
Taxes |
|
59,565 |
|
|
|
73,604 |
|
|
|
(14,039 |
) |
|
|
265,288 |
|
|
254,422 |
|
|
10,866 |
|
Income Tax Expense |
|
16,236 |
|
|
|
17,107 |
|
|
|
(871 |
) |
|
|
69,785 |
|
|
64,435 |
|
|
5,350 |
|
Net Income |
$ |
43,329 |
|
|
$ |
56,497 |
|
|
$ |
(13,168 |
) |
|
$ |
195,503 |
|
$ |
189,987 |
|
$ |
5,516 |
|
Net Income Per Share
(Diluted) |
$ |
0.47 |
|
|
$ |
0.61 |
|
|
$ |
(0.14 |
) |
|
$ |
2.12 |
|
$ |
2.06 |
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
MIDSTREAM BUSINESSES |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
PIPELINE AND
STORAGE SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
Revenues from External
Customers |
$ |
62,956 |
|
|
$ |
67,236 |
|
|
$ |
(4,280 |
) |
|
$ |
194,800 |
|
$ |
196,579 |
|
$ |
(1,779 |
) |
Intersegment Revenues |
|
29,439 |
|
|
|
28,312 |
|
|
|
1,127 |
|
|
|
90,354 |
|
|
82,716 |
|
|
7,638 |
|
Total Operating Revenues |
|
92,395 |
|
|
|
95,548 |
|
|
|
(3,153 |
) |
|
|
285,154 |
|
|
279,295 |
|
|
5,859 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
223 |
|
|
|
(139 |
) |
|
|
362 |
|
|
|
1,111 |
|
|
1,298 |
|
|
(187 |
) |
Operation and Maintenance |
|
26,207 |
|
|
|
24,639 |
|
|
|
1,568 |
|
|
|
77,501 |
|
|
71,249 |
|
|
6,252 |
|
Property, Franchise and Other Taxes |
|
8,329 |
|
|
|
8,483 |
|
|
|
(154 |
) |
|
|
25,452 |
|
|
25,664 |
|
|
(212 |
) |
Depreciation, Depletion and Amortization |
|
17,732 |
|
|
|
17,322 |
|
|
|
410 |
|
|
|
52,874 |
|
|
50,417 |
|
|
2,457 |
|
|
|
52,491 |
|
|
|
50,305 |
|
|
|
2,186 |
|
|
|
156,938 |
|
|
148,628 |
|
|
8,310 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
39,904 |
|
|
|
45,243 |
|
|
|
(5,339 |
) |
|
|
128,216 |
|
|
130,667 |
|
|
(2,451 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit |
|
1,330 |
|
|
|
767 |
|
|
|
563 |
|
|
|
3,990 |
|
|
2,302 |
|
|
1,688 |
|
Interest and Other Income |
|
1,831 |
|
|
|
735 |
|
|
|
1,096 |
|
|
|
4,653 |
|
|
2,330 |
|
|
2,323 |
|
Interest Expense |
|
(10,873 |
) |
|
|
(10,813 |
) |
|
|
(60 |
) |
|
|
(32,702 |
) |
|
(31,564 |
) |
|
(1,138 |
) |
Income Before Income
Taxes |
|
32,192 |
|
|
|
35,932 |
|
|
|
(3,740 |
) |
|
|
104,157 |
|
|
103,735 |
|
|
422 |
|
Income Tax Expense |
|
8,379 |
|
|
|
9,333 |
|
|
|
(954 |
) |
|
|
27,010 |
|
|
26,499 |
|
|
511 |
|
Net Income |
$ |
23,813 |
|
|
$ |
26,599 |
|
|
$ |
(2,786 |
) |
|
$ |
77,147 |
|
$ |
77,236 |
|
$ |
(89 |
) |
Net Income Per Share
(Diluted) |
$ |
0.26 |
|
|
$ |
0.29 |
|
|
$ |
(0.03 |
) |
|
$ |
0.84 |
|
$ |
0.84 |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
GATHERING
SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
Revenues from External
Customers |
$ |
4,629 |
|
|
$ |
2,862 |
|
|
$ |
1,767 |
|
|
$ |
9,003 |
|
$ |
10,063 |
|
$ |
(1,060 |
) |
Intersegment Revenues |
|
54,277 |
|
|
|
53,069 |
|
|
|
1,208 |
|
|
|
163,297 |
|
|
150,696 |
|
|
12,601 |
|
Total Operating Revenues |
|
58,906 |
|
|
|
55,931 |
|
|
|
2,975 |
|
|
|
172,300 |
|
|
160,759 |
|
|
11,541 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
12,849 |
|
|
|
9,770 |
|
|
|
3,079 |
|
|
|
33,252 |
|
|
27,509 |
|
|
5,743 |
|
Property, Franchise and Other Taxes |
|
25 |
|
|
|
10 |
|
|
|
15 |
|
|
|
39 |
|
|
12 |
|
|
27 |
|
Depreciation, Depletion and Amortization |
|
8,987 |
|
|
|
8,589 |
|
|
|
398 |
|
|
|
26,613 |
|
|
25,343 |
|
|
1,270 |
|
|
|
21,861 |
|
|
|
18,369 |
|
|
|
3,492 |
|
|
|
59,904 |
|
|
52,864 |
|
|
7,040 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
37,045 |
|
|
|
37,562 |
|
|
|
(517 |
) |
|
|
112,396 |
|
|
107,895 |
|
|
4,501 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit (Costs) Credit |
|
37 |
|
|
|
(56 |
) |
|
|
93 |
|
|
|
112 |
|
|
(168 |
) |
|
280 |
|
Interest and Other Income |
|
63 |
|
|
|
53 |
|
|
|
10 |
|
|
|
458 |
|
|
81 |
|
|
377 |
|
Interest Expense |
|
(3,613 |
) |
|
|
(4,164 |
) |
|
|
551 |
|
|
|
(11,556 |
) |
|
(12,383 |
) |
|
827 |
|
Income Before Income
Taxes |
|
33,532 |
|
|
|
33,395 |
|
|
|
137 |
|
|
|
101,410 |
|
|
95,425 |
|
|
5,985 |
|
Income Tax Expense |
|
9,397 |
|
|
|
8,737 |
|
|
|
660 |
|
|
|
28,203 |
|
|
25,538 |
|
|
2,665 |
|
Net Income |
$ |
24,135 |
|
|
$ |
24,658 |
|
|
$ |
(523 |
) |
|
$ |
73,207 |
|
$ |
69,887 |
|
$ |
3,320 |
|
Net Income Per Share
(Diluted) |
$ |
0.26 |
|
|
$ |
0.27 |
|
|
$ |
(0.01 |
) |
|
$ |
0.79 |
|
$ |
0.76 |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
DOWNSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
UTILITY
SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
Revenues from External
Customers |
$ |
144,538 |
|
|
$ |
179,888 |
|
|
$ |
(35,350 |
) |
|
$ |
862,914 |
|
$ |
785,664 |
|
$ |
77,250 |
|
Intersegment Revenues |
|
79 |
|
|
|
60 |
|
|
|
19 |
|
|
|
500 |
|
|
245 |
|
|
255 |
|
Total Operating Revenues |
|
144,617 |
|
|
|
179,948 |
|
|
|
(35,331 |
) |
|
|
863,414 |
|
|
785,909 |
|
|
77,505 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
63,151 |
|
|
|
95,587 |
|
|
|
(32,436 |
) |
|
|
533,452 |
|
|
448,268 |
|
|
85,184 |
|
Operation and Maintenance |
|
50,915 |
|
|
|
47,176 |
|
|
|
3,739 |
|
|
|
159,483 |
|
|
148,885 |
|
|
10,598 |
|
Property, Franchise and Other Taxes |
|
9,639 |
|
|
|
10,143 |
|
|
|
(504 |
) |
|
|
32,169 |
|
|
32,156 |
|
|
13 |
|
Depreciation, Depletion and Amortization |
|
14,997 |
|
|
|
14,765 |
|
|
|
232 |
|
|
|
45,425 |
|
|
44,592 |
|
|
833 |
|
|
|
138,702 |
|
|
|
167,671 |
|
|
|
(28,969 |
) |
|
|
770,529 |
|
|
673,901 |
|
|
96,628 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
5,915 |
|
|
|
12,277 |
|
|
|
(6,362 |
) |
|
|
92,885 |
|
|
112,008 |
|
|
(19,123 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit (Costs) Credit |
|
8 |
|
|
|
(2,678 |
) |
|
|
2,686 |
|
|
|
(5 |
) |
|
6,018 |
|
|
(6,023 |
) |
Interest and Other Income |
|
1,694 |
|
|
|
349 |
|
|
|
1,345 |
|
|
|
4,903 |
|
|
1,162 |
|
|
3,741 |
|
Interest Expense |
|
(8,441 |
) |
|
|
(6,087 |
) |
|
|
(2,354 |
) |
|
|
(26,193 |
) |
|
(17,115 |
) |
|
(9,078 |
) |
Income (Loss) Before Income
Taxes |
|
(824 |
) |
|
|
3,861 |
|
|
|
(4,685 |
) |
|
|
71,590 |
|
|
102,073 |
|
|
(30,483 |
) |
Income Tax Expense
(Benefit) |
|
(861 |
) |
|
|
(761 |
) |
|
|
(100 |
) |
|
|
16,016 |
|
|
22,273 |
|
|
(6,257 |
) |
Net Income |
$ |
37 |
|
|
$ |
4,622 |
|
|
$ |
(4,585 |
) |
|
$ |
55,574 |
|
$ |
79,800 |
|
$ |
(24,226 |
) |
Net Income Per Share
(Diluted) |
$ |
— |
|
|
$ |
0.05 |
|
|
$ |
(0.05 |
) |
|
$ |
0.60 |
|
$ |
0.87 |
|
$ |
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
ALL
OTHER |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
Revenues from External
Customers |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Intersegment Revenues |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
6 |
|
|
(6 |
) |
Total Operating Revenues |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
6 |
|
|
(6 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
6 |
|
|
(6 |
) |
Operation and Maintenance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21 |
|
|
5 |
|
|
16 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21 |
|
|
11 |
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21 |
) |
|
(5 |
) |
|
(16 |
) |
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Interest and Other Income (Deductions) |
|
(65 |
) |
|
|
— |
|
|
|
(65 |
) |
|
|
(451 |
) |
|
2 |
|
|
(453 |
) |
Interest Expense |
|
(41 |
) |
|
|
— |
|
|
|
(41 |
) |
|
|
(89 |
) |
|
— |
|
|
(89 |
) |
Loss before Income Taxes |
|
(106 |
) |
|
|
— |
|
|
|
(106 |
) |
|
|
(561 |
) |
|
(3 |
) |
|
(558 |
) |
Income Tax Expense
(Benefit) |
|
(25 |
) |
|
|
— |
|
|
|
(25 |
) |
|
|
(131 |
) |
|
4 |
|
|
(135 |
) |
Net Loss |
$ |
(81 |
) |
|
$ |
— |
|
|
$ |
(81 |
) |
|
$ |
(430 |
) |
$ |
(7 |
) |
$ |
(423 |
) |
Net Loss Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
CORPORATE |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
Revenues from External
Customers |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
166 |
|
$ |
(166 |
) |
Intersegment Revenues |
|
1,152 |
|
|
|
1,082 |
|
|
|
70 |
|
|
|
3,455 |
|
|
3,247 |
|
|
208 |
|
Total Operating Revenues |
|
1,152 |
|
|
|
1,082 |
|
|
|
70 |
|
|
|
3,455 |
|
|
3,413 |
|
|
42 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
3,323 |
|
|
|
3,195 |
|
|
|
128 |
|
|
|
10,770 |
|
|
10,039 |
|
|
731 |
|
Property, Franchise and Other Taxes |
|
139 |
|
|
|
124 |
|
|
|
15 |
|
|
|
396 |
|
|
373 |
|
|
23 |
|
Depreciation, Depletion and Amortization |
|
110 |
|
|
|
45 |
|
|
|
65 |
|
|
|
314 |
|
|
139 |
|
|
175 |
|
|
|
3,572 |
|
|
|
3,364 |
|
|
|
208 |
|
|
|
11,480 |
|
|
10,551 |
|
|
929 |
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
(2,420 |
) |
|
|
(2,282 |
) |
|
|
(138 |
) |
|
|
(8,025 |
) |
|
(7,138 |
) |
|
(887 |
) |
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(354 |
) |
|
|
(1,017 |
) |
|
|
663 |
|
|
|
(1,063 |
) |
|
(3,052 |
) |
|
1,989 |
|
Interest and Other Income |
|
36,312 |
|
|
|
31,019 |
|
|
|
5,293 |
|
|
|
111,598 |
|
|
92,937 |
|
|
18,661 |
|
Interest Expense on Long-Term Debt |
|
(26,311 |
) |
|
|
(30,091 |
) |
|
|
3,780 |
|
|
|
(83,499 |
) |
|
(90,300 |
) |
|
6,801 |
|
Other Interest Expense |
|
(6,031 |
) |
|
|
(3,346 |
) |
|
|
(2,685 |
) |
|
|
(17,281 |
) |
|
(4,948 |
) |
|
(12,333 |
) |
Income (Loss) before Income
Taxes |
|
1,196 |
|
|
|
(5,717 |
) |
|
|
6,913 |
|
|
|
1,730 |
|
|
(12,501 |
) |
|
14,231 |
|
Income Tax Benefit |
|
(191 |
) |
|
|
(1,499 |
) |
|
|
1,308 |
|
|
|
(458 |
) |
|
(3,477 |
) |
|
3,019 |
|
Net Income (Loss) |
$ |
1,387 |
|
|
$ |
(4,218 |
) |
|
$ |
5,605 |
|
|
$ |
2,188 |
|
$ |
(9,024 |
) |
$ |
11,212 |
|
Net Income (Loss) Per Share
(Diluted) |
$ |
0.01 |
|
|
$ |
(0.05 |
) |
|
$ |
0.06 |
|
|
$ |
0.02 |
|
$ |
(0.10 |
) |
$ |
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
INTERSEGMENT
ELIMINATIONS |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
Intersegment Revenues |
$ |
(84,947 |
) |
|
$ |
(82,523 |
) |
|
$ |
(2,424 |
) |
|
$ |
(257,606 |
) |
$ |
(236,910 |
) |
$ |
(20,696 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
(27,949 |
) |
|
|
(27,500 |
) |
|
|
(449 |
) |
|
|
(84,102 |
) |
|
(80,404 |
) |
|
(3,698 |
) |
Operation and Maintenance |
|
(56,998 |
) |
|
|
(55,023 |
) |
|
|
(1,975 |
) |
|
|
(173,504 |
) |
|
(156,506 |
) |
|
(16,998 |
) |
|
|
(84,947 |
) |
|
|
(82,523 |
) |
|
|
(2,424 |
) |
|
|
(257,606 |
) |
|
(236,910 |
) |
|
(20,696 |
) |
Operating Income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Interest and Other Deductions |
|
(36,846 |
) |
|
|
(35,117 |
) |
|
|
(1,729 |
) |
|
|
(111,385 |
) |
|
(98,376 |
) |
|
(13,009 |
) |
Interest Expense |
|
36,846 |
|
|
|
35,117 |
|
|
|
1,729 |
|
|
|
111,385 |
|
|
98,376 |
|
|
13,009 |
|
Net Income |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Net Income Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION (Continued) |
(Thousands of Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2023 |
|
|
2022 |
|
(Decrease) |
|
|
2023 |
|
|
2022 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production(1) |
$ |
269,171 |
(2) |
$ |
131,776 |
(4) |
$ |
137,395 |
|
|
$ |
592,787 |
(2)(3) |
$ |
405,736 |
(4)(5) |
$ |
187,051 |
|
Pipeline and Storage |
|
33,503 |
(2) |
|
19,778 |
(4) |
|
13,725 |
|
|
|
66,767 |
(2)(3) |
|
58,243 |
(4)(5) |
|
8,524 |
|
Gathering |
|
21,297 |
(2) |
|
8,614 |
(4) |
|
12,683 |
|
|
|
55,379 |
(2)(3) |
|
28,588 |
(4)(5) |
|
26,791 |
|
Utility |
|
39,446 |
(2) |
|
27,664 |
(4) |
|
11,782 |
|
|
|
88,676 |
(2)(3) |
|
70,972 |
(4)(5) |
|
17,704 |
|
Total Reportable Segments |
|
363,417 |
|
|
187,832 |
|
|
175,585 |
|
|
|
803,609 |
|
|
563,539 |
|
|
240,070 |
|
All Other |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
Corporate |
|
45 |
|
|
166 |
|
|
(121 |
) |
|
|
449 |
|
|
663 |
|
|
(214 |
) |
Total Capital Expenditures |
$ |
363,462 |
|
$ |
187,998 |
|
$ |
175,464 |
|
|
$ |
804,058 |
|
$ |
564,202 |
|
$ |
239,856 |
|
(1) The quarter and
nine months ended June 30, 2023 includes $124.8 million related to
the acquisition of upstream assets acquired from SWN. The
acquisition cost is reported as a component of Acquisition of
Upstream Assets on the Consolidated Statement of Cash Flows.
(2) Capital
expenditures for the quarter and nine months ended June 30, 2023,
include accounts payable and accrued liabilities related to capital
expenditures of $52.8 million, $7.7 million, $2.8 million, and $8.5
million in the Exploration and Production segment, Pipeline and
Storage segment, Gathering segment and Utility segment,
respectively. These amounts have been excluded from the
Consolidated Statement of Cash Flows at June 30, 2023, since they
represent non-cash investing activities at that date.
(3) Capital
expenditures for the nine months ended June 30, 2023, exclude
capital expenditures of $83.0 million, $15.2 million, $10.7 million
and $11.4 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility
segment, respectively. These amounts were in accounts payable and
accrued liabilities at September 30, 2022 and paid during the nine
months ended June 30, 2023. These amounts were excluded from the
Consolidated Statement of Cash Flows at September 30, 2022, since
they represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at June 30, 2023.
(4) Capital
expenditures for the quarter and nine months ended June 30, 2022,
include accounts payable and accrued liabilities related to capital
expenditures of $62.0 million, $5.2 million, $2.5 million, and $4.7
million in the Exploration and Production segment, Pipeline and
Storage segment, Gathering segment and Utility segment,
respectively. These amounts have been excluded from the
Consolidated Statement of Cash Flows at June 30, 2022, since they
represent non-cash investing activities at that date.
(5) Capital
expenditures for the nine months ended June 30, 2022, exclude
capital expenditures of $47.9 million, $39.4 million, $4.8 million
and $10.6 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility
segment, respectively. These amounts were in accounts payable and
accrued liabilities at September 30, 2021 and paid during the nine
months ended June 30, 2022. These amounts were excluded from the
Consolidated Statement of Cash Flows at September 30, 2021, since
they represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at June 30, 2022.
DEGREE
DAYS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Colder |
|
|
|
|
|
|
|
(Warmer) Than: |
Three Months Ended June
30, |
Normal |
|
2023 |
|
2022 |
|
Normal(1) |
|
Last Year(1) |
Buffalo, NY |
912 |
|
788 |
|
797 |
|
(13.6 |
) |
|
(1.1 |
) |
Erie, PA |
871 |
|
802 |
|
741 |
|
(7.9 |
) |
|
8.2 |
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June
30, |
|
|
|
|
|
|
|
|
|
Buffalo, NY |
6,455 |
|
5,656 |
|
5,662 |
|
(12.4 |
) |
|
(0.1 |
) |
Erie, PA |
6,023 |
|
5,434 |
|
5,274 |
|
(9.8 |
) |
|
3.0 |
|
|
|
|
|
|
|
|
|
|
|
(1) Percents compare
actual 2023 degree days to normal degree days and actual 2023
degree days to actual 2022 degree days.
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
|
2023 |
|
|
2022 |
|
(Decrease) |
|
|
2023 |
|
|
2022 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
Production (MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
|
94,747 |
|
|
88,888 |
|
|
5,859 |
|
|
|
278,562 |
|
|
253,842 |
|
|
24,720 |
|
West Coast |
|
|
— |
|
|
405 |
|
|
(405 |
) |
|
|
— |
|
|
1,210 |
|
|
(1,210 |
) |
Total Production |
|
|
94,747 |
|
|
89,293 |
|
|
5,454 |
|
|
|
278,562 |
|
|
255,052 |
|
|
23,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Mcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
$ |
1.66 |
|
$ |
5.50 |
|
$ |
(3.84 |
) |
|
$ |
3.05 |
|
$ |
4.64 |
|
$ |
(1.59 |
) |
West Coast |
|
N/M |
|
|
10.29 |
|
N/M |
|
N/M |
|
|
10.04 |
|
N/M |
Weighted Average |
|
|
1.66 |
|
|
5.52 |
|
|
(3.86 |
) |
|
|
3.05 |
|
|
4.67 |
|
|
(1.62 |
) |
Weighted Average after Hedging |
|
|
2.27 |
|
|
2.87 |
|
|
(0.60 |
) |
|
|
2.62 |
|
|
2.67 |
|
|
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
Production (Thousands of
Barrels) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
|
7 |
|
|
7 |
|
|
— |
|
|
|
22 |
|
|
8 |
|
|
14 |
|
West Coast |
|
|
— |
|
|
519 |
|
|
(519 |
) |
|
|
— |
|
|
1,589 |
|
|
(1,589 |
) |
Total Production |
|
|
7 |
|
|
526 |
|
|
(519 |
) |
|
|
22 |
|
|
1,597 |
|
|
(1,575 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per
Barrel) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
$ |
69.66 |
|
$ |
108.47 |
|
$ |
(38.81 |
) |
|
$ |
75.50 |
|
$ |
104.83 |
|
$ |
(29.33 |
) |
West Coast |
|
N/M |
|
|
110.79 |
|
N/M |
|
N/M |
|
|
94.06 |
|
N/M |
Weighted Average |
|
|
69.66 |
|
|
110.76 |
|
|
(41.10 |
) |
|
|
75.50 |
|
|
94.11 |
|
|
(18.61 |
) |
Weighted Average after Hedging(1) |
|
|
69.66 |
|
|
77.65 |
|
|
(7.99 |
) |
|
|
75.50 |
|
|
70.71 |
|
|
4.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production (MMcfe) |
|
|
94,789 |
|
|
92,449 |
|
|
2,340 |
|
|
|
278,694 |
|
|
264,634 |
|
|
14,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Performance Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
General & Administrative
Expense per Mcfe(2) |
|
$ |
0.17 |
|
$ |
0.19 |
|
$ |
(0.02 |
) |
|
$ |
0.18 |
|
$ |
0.20 |
|
$ |
(0.02 |
) |
Lease Operating and
Transportation Expense per Mcfe(2)(3) |
|
$ |
0.65 |
|
$ |
0.86 |
|
$ |
(0.21 |
) |
|
$ |
0.68 |
|
$ |
0.84 |
|
$ |
(0.16 |
) |
Depreciation, Depletion &
Amortization per Mcfe(2) |
|
$ |
0.64 |
|
$ |
0.60 |
|
$ |
0.04 |
|
|
$ |
0.63 |
|
$ |
0.59 |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 three and nine months ended June
30, 2022 excludes a loss on discontinuance of crude oil cash flow
hedges of $44.6 million.
(2) Refer to page 16
for the General and Administrative Expense, Lease Operating and
Transportation Expense and Depreciation, Depletion, and
Amortization Expense for the Exploration and Production segment.
General and Administrative Expense per Mcfe for the three and nine
months ended June 30, 2022 excludes transaction and severance costs
related to the California asset sale.
(3) Amounts include
transportation expense of $0.55 and $0.57 per Mcfe for the three
months ended June 30, 2023 and June 30, 2022, respectively. Amounts
include transportation expense of $0.57 and $0.56 per Mcfe for the
nine months ended June 30, 2023 and June 30, 2022,
respectively.
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
Hedging Summary for
Remaining Three Months of Fiscal 2023 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
32,820,000 |
MMBTU |
|
$ |
2.88 / MMBTU |
No Cost Collars |
|
23,940,000 |
MMBTU |
|
$ |
3.43 / MMBTU (Floor) / $4.13 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
23,006,166 |
MMBTU |
|
$ |
2.20 / MMBTU |
Total |
|
79,766,166 |
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2024 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
134,930,000 |
MMBTU |
|
$ |
3.34 / MMBTU |
No Cost Collars |
|
65,280,000 |
MMBTU |
|
$ |
3.33 / MMBTU (Floor) / $4.17 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
75,554,510 |
MMBTU |
|
$ |
2.44 / MMBTU |
Total |
|
275,764,510 |
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2025 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
80,560,000 |
MMBTU |
|
$ |
3.49 / MMBTU |
No Cost Collars |
|
43,960,000 |
MMBTU |
|
$ |
3.49 / MMBTU (Floor) / $4.65 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
73,371,069 |
MMBTU |
|
$ |
2.49 / MMBTU |
Total |
|
197,891,069 |
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2026 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
29,020,000 |
MMBTU |
|
$ |
3.98 / MMBTU |
No Cost Collars |
|
42,720,000 |
MMBTU |
|
$ |
3.53 / MMBTU (Floor) / $4.76 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
65,847,497 |
MMBTU |
|
$ |
2.39 / MMBTU |
Total |
|
137,587,497 |
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2027 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
12,750,000 |
MMBTU |
|
$ |
4.27 / MMBTU |
No Cost Collars |
|
3,560,000 |
MMBTU |
|
$ |
3.53 / MMBTU (Floor) / $4.76 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
45,656,079 |
MMBTU |
|
$ |
2.39 / MMBTU |
Total |
|
61,966,079 |
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2028 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
1,000,000 |
MMBTU |
|
$ |
4.29 / MMBTU |
Fixed Price Physical
Sales |
|
12,081,308 |
MMBTU |
|
$ |
2.48 / MMBTU |
Total |
|
13,081,308 |
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2029 |
|
Volume |
|
|
Average Hedge
Price |
Fixed Price Physical
Sales |
|
782,637 |
MMBTU |
|
$ |
2.54 / MMBTU |
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline
& Storage Throughput - (millions of cubic feet -
MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2023 |
|
2022 |
|
(Decrease) |
|
2023 |
|
2022 |
|
(Decrease) |
Firm Transportation - Affiliated |
|
22,295 |
|
19,558 |
|
2,737 |
|
|
108,911 |
|
94,213 |
|
14,698 |
|
Firm Transportation -
Non-Affiliated |
|
159,145 |
|
156,310 |
|
2,835 |
|
|
528,234 |
|
507,278 |
|
20,956 |
|
Interruptible
Transportation |
|
97 |
|
206 |
|
(109 |
) |
|
2,024 |
|
1,726 |
|
298 |
|
|
|
181,537 |
|
176,074 |
|
5,463 |
|
|
639,169 |
|
603,217 |
|
35,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering Volume -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2023 |
|
2022 |
|
(Decrease) |
|
2023 |
|
2022 |
|
(Decrease) |
Gathered Volume |
|
118,707 |
|
109,797 |
|
8,910 |
|
|
336,078 |
|
314,625 |
|
21,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Throughput -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2023 |
|
2022 |
|
(Decrease) |
|
2023 |
|
2022 |
|
(Decrease) |
Retail Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential Sales |
|
9,600 |
|
10,344 |
|
(744 |
) |
|
57,636 |
|
59,865 |
|
(2,229 |
) |
Commercial Sales |
|
1,434 |
|
1,511 |
|
(77 |
) |
|
8,812 |
|
8,977 |
|
(165 |
) |
Industrial Sales |
|
87 |
|
74 |
|
13 |
|
|
506 |
|
466 |
|
40 |
|
|
|
11,121 |
|
11,929 |
|
(808 |
) |
|
66,954 |
|
69,308 |
|
(2,354 |
) |
Transportation |
|
12,468 |
|
12,936 |
|
(468 |
) |
|
53,567 |
|
56,274 |
|
(2,707 |
) |
|
|
23,589 |
|
24,865 |
|
(1,276 |
) |
|
120,521 |
|
125,582 |
|
(5,061 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
In addition to financial measures calculated in
accordance with generally accepted accounting principles (GAAP),
this press release contains information regarding Adjusted
Operating Results, Adjusted EBITDA and free cash flow, which are
non-GAAP financial measures. The Company believes that these
non-GAAP financial measures are useful to investors because they
provide an alternative method for assessing the Company's ongoing
operating results or liquidity and for comparing the Company’s
financial performance to other companies. The Company's management
uses these non-GAAP financial measures for the same purpose, and
for planning and forecasting purposes. The presentation of non-GAAP
financial measures is not meant to be a substitute for financial
measures in accordance with GAAP.
Management defines Adjusted Operating Results as
reported GAAP earnings before items impacting comparability. The
following table reconciles National Fuel's reported GAAP earnings
to Adjusted Operating Results for the three and nine months ended
June 30, 2023 and 2022:
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
(in thousands except per share amounts) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Reported GAAP
Earnings |
|
$ |
92,620 |
|
|
$ |
108,158 |
|
|
$ |
403,189 |
|
|
$ |
407,879 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Items related to West Coast asset sale: |
|
|
|
|
|
|
|
|
Gain on sale of West Coast assets (E&P) |
|
|
— |
|
|
|
(12,736 |
) |
|
|
— |
|
|
|
(12,736 |
) |
Tax impact of gain on sale of West Coast assets |
|
|
— |
|
|
|
3,225 |
|
|
|
— |
|
|
|
3,225 |
|
Loss from discontinuance of crude oil cash flow hedges
(E&P) |
|
|
— |
|
|
|
44,632 |
|
|
|
— |
|
|
|
44,632 |
|
Tax impact of loss from discontinuance of crude oil cash flow
hedges |
|
|
— |
|
|
|
(11,303 |
) |
|
|
— |
|
|
|
(11,303 |
) |
Transaction and severance costs (E&P) |
|
|
— |
|
|
|
9,693 |
|
|
|
— |
|
|
|
9,693 |
|
Tax impact of transaction and severance costs |
|
|
— |
|
|
|
(2,455 |
) |
|
|
— |
|
|
|
(2,455 |
) |
Total items impacting comparability related to West Coast asset
sale |
|
|
— |
|
|
|
31,056 |
|
|
|
— |
|
|
|
31,056 |
|
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset (E&P) |
|
|
1,430 |
|
|
|
— |
|
|
|
3,702 |
|
|
|
— |
|
Tax impact of unrealized (gain) loss on derivative asset |
|
|
(392 |
) |
|
|
— |
|
|
|
(1,015 |
) |
|
|
— |
|
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
|
(355 |
) |
|
|
3,434 |
|
|
|
(1,632 |
) |
|
|
10,093 |
|
Tax impact of unrealized (gain) loss on other investments |
|
|
74 |
|
|
|
(721 |
) |
|
|
343 |
|
|
|
(2,120 |
) |
Reduction of other post-retirement regulatory liability
(Utility) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(18,533 |
) |
Tax impact of reduction of other post-retirement regulatory
liability |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,892 |
|
Adjusted Operating
Results |
|
$ |
93,377 |
|
|
$ |
141,927 |
|
|
$ |
404,587 |
|
|
$ |
432,267 |
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
|
$ |
1.00 |
|
|
$ |
1.17 |
|
|
$ |
4.37 |
|
|
$ |
4.43 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Items related to West Coast asset sale: |
|
|
|
|
|
|
|
|
Gain on sale of West Coast assets, net of tax (E&P) |
|
|
— |
|
|
|
(0.10 |
) |
|
|
— |
|
|
|
(0.10 |
) |
Loss from discontinuance of crude oil cash flow hedges, net of tax
(E&P) |
|
|
— |
|
|
|
0.36 |
|
|
|
— |
|
|
|
0.36 |
|
Transaction and severance costs, net of tax (E&P) |
|
|
— |
|
|
|
0.08 |
|
|
|
— |
|
|
|
0.08 |
|
Total items impacting comparability related to West Coast asset
sale |
|
|
— |
|
|
|
0.34 |
|
|
|
— |
|
|
|
0.34 |
|
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset, net of tax
(E&P) |
|
|
0.01 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
|
|
— |
|
|
|
0.03 |
|
|
|
(0.01 |
) |
|
|
0.08 |
|
Reduction of other post-retirement regulatory liability, net of tax
(Utility) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.16 |
) |
Rounding |
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
Adjusted Operating
Results Per Share |
|
$ |
1.01 |
|
|
$ |
1.54 |
|
|
$ |
4.38 |
|
|
$ |
4.69 |
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
(Continued)
Management defines Adjusted EBITDA as reported
GAAP earnings before the following items: interest expense, income
taxes, depreciation, depletion and amortization, other income and
deductions, impairments, and other items reflected in operating
income that impact comparability. The following tables reconcile
National Fuel's reported GAAP earnings to Adjusted EBITDA for the
three and nine months ended June 30, 2023 and 2022:
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
(in thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Reported GAAP
Earnings |
|
$ |
92,620 |
|
|
$ |
108,158 |
|
|
$ |
403,189 |
|
|
$ |
407,879 |
|
Depreciation, Depletion and Amortization |
|
|
102,410 |
|
|
|
95,857 |
|
|
|
299,973 |
|
|
|
275,681 |
|
Other (Income) Deductions |
|
|
(3,551 |
) |
|
|
5,649 |
|
|
|
(12,754 |
) |
|
|
(3,291 |
) |
Interest Expense |
|
|
32,092 |
|
|
|
33,973 |
|
|
|
98,984 |
|
|
|
96,861 |
|
Income Taxes |
|
|
32,935 |
|
|
|
32,917 |
|
|
|
140,425 |
|
|
|
135,272 |
|
Gain on Sale of Assets |
|
|
— |
|
|
|
(12,736 |
) |
|
|
— |
|
|
|
(12,736 |
) |
Loss from discontinuance of crude oil cash flow hedges
(E&P) |
|
|
— |
|
|
|
44,632 |
|
|
|
— |
|
|
|
44,632 |
|
Transaction and severance costs related to West Coast asset sale
(E&P) |
|
|
— |
|
|
|
9,693 |
|
|
|
— |
|
|
|
9,693 |
|
Adjusted
EBITDA |
|
$ |
256,506 |
|
|
$ |
318,143 |
|
|
$ |
929,817 |
|
|
$ |
953,991 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Segment |
|
|
|
|
|
|
|
|
Pipeline and Storage Adjusted
EBITDA |
|
$ |
57,636 |
|
|
$ |
62,565 |
|
|
$ |
181,090 |
|
|
$ |
181,084 |
|
Gathering Adjusted EBITDA |
|
|
46,032 |
|
|
|
46,151 |
|
|
|
139,009 |
|
|
|
133,238 |
|
Total Midstream Businesses
Adjusted EBITDA |
|
|
103,668 |
|
|
|
108,716 |
|
|
|
320,099 |
|
|
|
314,322 |
|
Exploration and Production
Adjusted EBITDA |
|
|
134,236 |
|
|
|
184,622 |
|
|
|
479,140 |
|
|
|
490,073 |
|
Utility Adjusted EBITDA |
|
|
20,912 |
|
|
|
27,042 |
|
|
|
138,310 |
|
|
|
156,600 |
|
Corporate and All Other
Adjusted EBITDA |
|
|
(2,310 |
) |
|
|
(2,237 |
) |
|
|
(7,732 |
) |
|
|
(7,004 |
) |
Total Adjusted
EBITDA |
|
$ |
256,506 |
|
|
$ |
318,143 |
|
|
$ |
929,817 |
|
|
$ |
953,991 |
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
(in thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Exploration and
Production Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
43,329 |
|
|
$ |
56,497 |
|
|
$ |
195,503 |
|
|
$ |
189,987 |
|
Depreciation, Depletion and Amortization |
|
|
60,584 |
|
|
|
55,136 |
|
|
|
174,747 |
|
|
|
155,190 |
|
Other (Income) Deductions |
|
|
459 |
|
|
|
(296 |
) |
|
|
56 |
|
|
|
(55 |
) |
Interest Expense |
|
|
13,628 |
|
|
|
14,589 |
|
|
|
39,049 |
|
|
|
38,927 |
|
Income Taxes |
|
|
16,236 |
|
|
|
17,107 |
|
|
|
69,785 |
|
|
|
64,435 |
|
Gain on Sale of West Coast Assets |
|
|
— |
|
|
|
(12,736 |
) |
|
|
— |
|
|
|
(12,736 |
) |
Loss from Discontinuance of Crude Oil Cash Flow Hedges |
|
|
— |
|
|
|
44,632 |
|
|
|
— |
|
|
|
44,632 |
|
Transaction and Severance Costs related to West Coast Asset
Sale |
|
|
— |
|
|
|
9,693 |
|
|
|
— |
|
|
|
9,693 |
|
Adjusted EBITDA |
|
$ |
134,236 |
|
|
$ |
184,622 |
|
|
$ |
479,140 |
|
|
$ |
490,073 |
|
|
|
|
|
|
|
|
|
|
Pipeline and
Storage Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
23,813 |
|
|
$ |
26,599 |
|
|
$ |
77,147 |
|
|
$ |
77,236 |
|
Depreciation, Depletion and Amortization |
|
|
17,732 |
|
|
|
17,322 |
|
|
|
52,874 |
|
|
|
50,417 |
|
Other (Income) Deductions |
|
|
(3,161 |
) |
|
|
(1,502 |
) |
|
|
(8,643 |
) |
|
|
(4,632 |
) |
Interest Expense |
|
|
10,873 |
|
|
|
10,813 |
|
|
|
32,702 |
|
|
|
31,564 |
|
Income Taxes |
|
|
8,379 |
|
|
|
9,333 |
|
|
|
27,010 |
|
|
|
26,499 |
|
Adjusted EBITDA |
|
$ |
57,636 |
|
|
$ |
62,565 |
|
|
$ |
181,090 |
|
|
$ |
181,084 |
|
|
|
|
|
|
|
|
|
|
Gathering
Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
24,135 |
|
|
$ |
24,658 |
|
|
$ |
73,207 |
|
|
$ |
69,887 |
|
Depreciation, Depletion and Amortization |
|
|
8,987 |
|
|
|
8,589 |
|
|
|
26,613 |
|
|
|
25,343 |
|
Other (Income) Deductions |
|
|
(100 |
) |
|
|
3 |
|
|
|
(570 |
) |
|
|
87 |
|
Interest Expense |
|
|
3,613 |
|
|
|
4,164 |
|
|
|
11,556 |
|
|
|
12,383 |
|
Income Taxes |
|
|
9,397 |
|
|
|
8,737 |
|
|
|
28,203 |
|
|
|
25,538 |
|
Adjusted EBITDA |
|
$ |
46,032 |
|
|
$ |
46,151 |
|
|
$ |
139,009 |
|
|
$ |
133,238 |
|
|
|
|
|
|
|
|
|
|
Utility
Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
37 |
|
|
$ |
4,622 |
|
|
$ |
55,574 |
|
|
$ |
79,800 |
|
Depreciation, Depletion and Amortization |
|
|
14,997 |
|
|
|
14,765 |
|
|
|
45,425 |
|
|
|
44,592 |
|
Other (Income) Deductions |
|
|
(1,702 |
) |
|
|
2,329 |
|
|
|
(4,898 |
) |
|
|
(7,180 |
) |
Interest Expense |
|
|
8,441 |
|
|
|
6,087 |
|
|
|
26,193 |
|
|
|
17,115 |
|
Income Taxes |
|
|
(861 |
) |
|
|
(761 |
) |
|
|
16,016 |
|
|
|
22,273 |
|
Adjusted EBITDA |
|
$ |
20,912 |
|
|
$ |
27,042 |
|
|
$ |
138,310 |
|
|
$ |
156,600 |
|
|
|
|
|
|
|
|
|
|
Corporate and All
Other |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
1,306 |
|
|
$ |
(4,218 |
) |
|
$ |
1,758 |
|
|
$ |
(9,031 |
) |
Depreciation, Depletion and Amortization |
|
|
110 |
|
|
|
45 |
|
|
|
314 |
|
|
|
139 |
|
Other (Income) Deductions |
|
|
953 |
|
|
|
5,115 |
|
|
|
1,301 |
|
|
|
8,489 |
|
Interest Expense |
|
|
(4,463 |
) |
|
|
(1,680 |
) |
|
|
(10,516 |
) |
|
|
(3,128 |
) |
Income Taxes |
|
|
(216 |
) |
|
|
(1,499 |
) |
|
|
(589 |
) |
|
|
(3,473 |
) |
Adjusted EBITDA |
|
$ |
(2,310 |
) |
|
$ |
(2,237 |
) |
|
$ |
(7,732 |
) |
|
$ |
(7,004 |
) |
Management defines free cash flow as net cash
provided by operating activities 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 reliably predict the
comparable GAAP projected metrics, including operating income and
total production costs, given the unknown effect, timing, and
potential significance of certain income statement items.
Brandon J. Haspett
Investor Relations
716-857-7697
Timothy J. Silverstein
Treasurer
716-857-6987
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