National Fuel Gas Company (“National Fuel” or the “Company”)
(NYSE:NFG) today announced consolidated results for the three
months and fiscal year ended September 30, 2020.
FISCAL 2020 HIGHLIGHTS
- Completed highly-accretive acquisition of Appalachian upstream
and midstream gathering assets in July, which is expected to
generate in excess of $100 million of consolidated E&P and
Gathering segment free cash flow in fiscal 2021
- E&P segment capital expenditures reduced by $107 million,
or 22% from the prior year, excluding the Company's Appalachian
upstream acquisition (see page 20)
- E&P segment net production of 241.5 Bcfe, an increase of
29.7 Bcfe, or 14%, from the prior year, with corresponding 13%
increase in Gathering segment throughput
- Increased E&P segment reserves to approximately 3.5 Tcfe,
an increase of 12% versus fiscal 2019, driven largely by the
Company's recent acquisition, which added 684 Bcf of proved
developing producing reserves at a cost of $0.36 per Mcf
- Placed Empire North project into service in mid-September,
which is expected to generate $27 million in incremental annual
Pipeline & Storage segment revenue
- Invested $71.4 million in Utility system modernization and
reliability, replacing over 150 miles of older vintage mains and
services, and bringing 5-year total to over $341 million
- Increased shareholder dividend for the 50th consecutive year to
an annual rate of $1.78 per share
- Published initial Corporate Responsibility Report in September
2020, which is available on the Company's corporate responsibility
website, responsibility.natfuel.com
FISCAL 2020 FOURTH QUARTER
SUMMARY
- GAAP net loss of $145.5 million, or $1.60 per share, which
includes a $183.7 million non-cash, after-tax impairment of oil and
gas properties, compared to GAAP net income of $47.3 million, or
$0.54 per share, in the prior year
- Adjusted operating results of $36.3 million, or $0.40 per
share, compared to $47.0 million, or $0.54 per share, in the prior
year (see non-GAAP reconciliation on page 2)
- Adjusted EBITDA of $159.6 million compared to $157.3 million in
the prior year (non-GAAP reconciliation on page 25)
- Pipeline & Storage segment Adjusted EBITDA of $47.0
million, an increase of 31% from the prior year
- Gathering segment Adjusted EBITDA of $33.1 million, an increase
of 11% from the prior year
- E&P segment net production of 67.3 Bcfe, an increase of 8.2
Bcfe, or 14%, from the prior year, which includes the impact of the
Company's recently-closed Appalachian acquisition and approximately
6 Bcf of price-related natural gas curtailments
- Average natural gas prices of $1.92 per Mcf, after hedge gains
of $0.28 per Mcf, down $0.34 per Mcf from the prior year
- Average oil prices of $55.70 per Bbl, after hedge gains of
$14.49 per Bbl, down $5.30 per Bbl from the prior year
MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive
Officer of National Fuel Gas Company, stated: “National Fuel turned
a challenging 2020 fiscal year into one of opportunity, with
several important milestones achieved in our fourth quarter. Over
the past few months, we completed a highly-accretive acquisition,
brought online the $129 million Empire North expansion project, and
received the FERC certificate for our $279 million FM100 Project,
giving us line of sight on significant growth in the years ahead.
In addition, our Utility completed its annual system modernization
program, through which over 150 miles of older vintage pipelines
were replaced, further reducing our greenhouse gas emissions. And,
in September, the Company published its initial Corporate
Responsibility Report, an important step in the continuous
improvement of our environmental, social, and governance
initiatives and disclosures.
These milestones were not possible without the
significant efforts of National Fuel’s 2,100 dedicated and
hard-working employees, who have continued to meet the increased
demands of our business during the pendency of the COVID-19
pandemic. Throughout the year, as we confronted the constantly
evolving landscape of the health crisis, as well as significant
commodity price headwinds, our integrated, diversified business
model continued to provide an important measure of stability and
predictability.
As we move into fiscal 2021, National Fuel is
well-positioned for growth, and we expect our Appalachian
acquisition, which included significant, highly-economic drilling
inventory, as well as the substantial growth of our FERC-regulated
pipelines, to drive long-term value for our shareholders.
Combining this with a large base of stable, regulated cash flows,
we are poised to generate strong consolidated returns, and grow our
earnings and cash flows in the years ahead, while maintaining the
strength of the Company’s investment-grade balance sheet and our
focus on the sustainability of our operations.”
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING
RESULTS
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
|
September 30, |
|
September 30, |
(in thousands except per share
amounts) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Reported GAAP Earnings |
$ |
(145,545 |
) |
|
$ |
47,281 |
|
|
$ |
(123,772 |
) |
|
$ |
304,290 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
Impairment of oil and gas properties (E&P) |
253,441 |
|
|
— |
|
|
449,438 |
|
|
— |
|
Tax impact of impairment of oil and gas properties |
(69,698 |
) |
|
— |
|
|
(123,187 |
) |
|
— |
|
Deferred tax valuation allowance as of March 31, 2020 |
— |
|
|
— |
|
|
56,770 |
|
|
— |
|
Remeasurement of deferred income taxes under 2017 Tax Reform |
— |
|
|
— |
|
|
— |
|
|
(5,000 |
) |
Mark-to-market adjustments due to hedge ineffectiveness
(E&P) |
— |
|
|
(1,313 |
) |
|
— |
|
|
(2,096 |
) |
Tax impact of mark-to-market adjustments due to hedge
ineffectiveness |
— |
|
|
276 |
|
|
— |
|
|
440 |
|
Unrealized (gain) loss on other investments (Corporate / All
Other) |
(2,439 |
) |
|
949 |
|
|
(1,645 |
) |
|
2,045 |
|
Tax impact of unrealized (gain) loss on other investments |
512 |
|
|
(199 |
) |
|
345 |
|
|
(429 |
) |
Adjusted Operating
Results |
$ |
36,271 |
|
|
$ |
46,994 |
|
|
$ |
257,949 |
|
|
$ |
299,250 |
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
$ |
(1.60 |
) |
|
$ |
0.54 |
|
|
$ |
(1.41 |
) |
|
$ |
3.51 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
Impairment of oil and gas properties, net of tax (E&P) |
2.02 |
|
|
— |
|
|
3.71 |
|
|
— |
|
Deferred tax valuation allowance as of March 31, 2020 |
— |
|
|
— |
|
|
0.65 |
|
|
— |
|
Remeasurement of deferred income taxes under 2017 Tax Reform |
— |
|
|
— |
|
|
— |
|
|
(0.06 |
) |
Mark-to-market adjustments due to hedge ineffectiveness, net of tax
(E&P) |
— |
|
|
(0.01 |
) |
|
— |
|
|
(0.02 |
) |
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
(0.02 |
) |
|
0.01 |
|
|
(0.01 |
) |
|
0.02 |
|
Earnings per share impact of diluted shares |
— |
|
|
— |
|
|
(0.02 |
) |
|
— |
|
Adjusted Operating
Results Per Share |
$ |
0.40 |
|
|
$ |
0.54 |
|
|
$ |
2.92 |
|
|
$ |
3.45 |
|
FISCAL 2021 GUIDANCE UPDATE
National Fuel is revising its fiscal 2021
earnings guidance to reflect updated forecast assumptions and
projections, including the impact of increased near-term natural
gas price expectations since the Company’s preliminary guidance was
announced in August 2020. The Company is now projecting that
earnings will be within the range of $3.55 to $3.85 per share, an
increase of 27% from the Company’s 2020 adjusted operating results
at the midpoint of the updated guidance range. The increase from
the preliminary guidance is primarily due to higher expected price
realizations on Seneca’s natural gas production and lower expected
depreciation, depletion and amortization (“DD&A”) rates at
Seneca as a result of the Company’s fourth quarter fiscal 2020
impairment, which is expected to be partially offset by lower
expected price realizations on Seneca’s crude oil production.
The Company is now assuming that NYMEX natural
gas prices will average $3.00 per MMBtu in fiscal 2021, an increase
of $0.35 per MMBtu from the $2.65 per MMBtu assumed in the
preliminary guidance. Additionally, the Company is now
assuming that WTI oil prices will average $37.50 per Bbl in fiscal
2021, a $5.00 decrease from the $42.50 per Bbl assumed in the
previous guidance. For guidance purposes, the Company’s
updated projections approximate the current NYMEX forward markets
for natural gas and oil and consider the impact of local sales
point differentials and new physical firm sales, transportation,
and financial hedge contracts.
During the fourth quarter, Seneca executed
approximately 30 billion cubic feet (“Bcf”) of new NYMEX natural
gas swap contracts for fiscal 2021. Seneca currently has firm sales
contracts in place for 275 Bcf, or approximately 90% of its
projected fiscal 2021 Appalachian production, limiting its exposure
to in-basin markets. Approximately 234 Bcf of those sales, or
77% of Seneca’s expected Appalachian production, are either matched
by a financial hedge, including a combination of swaps and no-cost
collars, or were entered into at a fixed price.
In connection with the continued development of
the Leidy South and FM100 projects, both of which are on track to
come online in the fourth quarter of calendar 2021, the Company now
plans to add a second horizontal drilling rig in Appalachia in
early calendar 2021. Production from the first pad that will
be drilled in connection with this activity addition is expected in
early fiscal 2022. Overall, the Company's increased activity will
allow Seneca to utilize its 330,000 dekatherms per day of
incremental pipeline capacity on Leidy South to reach premium
markets during the winter heating season. The Company expects
this second drilling rig to focus on the development of its
highly-economic Eastern Development Area (“EDA”) assets, including
its recently-acquired inventory in Tioga, County, Pa. In
order to further mitigate the risk of commodity price exposure for
this additional activity, Seneca executed approximately 16 Bcf of
new NYMEX natural gas swap contracts for fiscal 2022 at an average
price of $2.90 per Mcf. In total, Seneca now has
approximately 170 Bcf of its fiscal 2022 Appalachian production
secured by either financial hedges or fixed price physical sales
contracts.
As a result of Seneca’s additional activity, the
Company is increasing its Exploration and Production segment
capital expenditure range to $350 million to $390 million, an
increase of $60 million at the midpoint of the Company’s updated
guidance range, and a decrease of approximately $15 million from
Seneca’s 2020 fiscal year capital expenditures. Based on the
Company's fiscal 2021 assumptions, the Company expects its
consolidated Exploration and Production and Gathering segment funds
from operations to significantly exceed those segments' capital
expenditures for the year, generating in excess of $100 million in
consolidated free cash flow from these businesses.
In total, the Company’s consolidated capital
expenditures in fiscal 2021 are now expected to be in the range of
$720 million to $830 million. Based on the Company’s fiscal
2021 assumptions, it still anticipates its cash flow from
operations to exceed its capital expenditures for the year.
The Company’s other guidance assumptions remain
largely unchanged from the previous guidance. Additional details on
the Company's updated forecast assumptions and business segment
guidance for fiscal 2021 are outlined in the table on page 8.
DISCUSSION OF FOURTH QUARTER RESULTS BY
SEGMENT
The following earnings discussion of each
operating segment for the quarter ended September 30, 2020 is
summarized in a tabular form on pages 9 and 10 of this report
(earnings drivers for the fiscal year ended September 30, 2020 are
summarized on pages 11 and 12). It may be helpful to refer to
those tables while reviewing this discussion.
Note that management defines Adjusted Operating
Results as reported GAAP earnings adjusted for items impacting
comparability, and Adjusted EBITDA as reported GAAP earnings before
the following items: interest expense, income taxes, depreciation,
depletion and amortization, other income and deductions,
impairments, and other items reflected in operating income that
impact comparability.
Upstream Business
Exploration and Production Segment
The Exploration and Production segment
operations are carried out by Seneca Resources Company, LLC
("Seneca"). Seneca explores for, develops and produces
natural gas and oil reserves, primarily in Pennsylvania and
California.
|
Three Months Ended |
|
September 30, |
(in thousands) |
2020 |
|
2019 |
|
Variance |
GAAP Earnings |
$ |
(169,171 |
) |
|
$ |
25,208 |
|
|
$ |
(194,379 |
) |
Impairment of oil and gas
properties, net of tax |
183,743 |
|
|
— |
|
|
183,743 |
|
Mark-to-market adjustments due
to hedge ineffectiveness, net of tax |
— |
|
|
(1,037 |
) |
|
1,037 |
|
Adjusted Operating
Results |
$ |
14,572 |
|
|
$ |
24,171 |
|
|
$ |
(9,599 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
75,439 |
|
|
$ |
89,509 |
|
|
$ |
(14,070 |
) |
Seneca’s fourth quarter GAAP earnings decreased
$194.4 million versus the prior year. This was primarily
driven by a non-cash, pre-tax impairment charge of $253.4 million
($183.7 million after-tax) to write-down the value of Seneca’s oil
and natural gas reserves under the full cost method of accounting.
This method requires Seneca to perform a quarterly “ceiling test”
comparing the present value of future net revenues from its oil and
natural gas reserves based on an unweighted arithmetic average of
the first day of the month oil and gas prices for each month within
the 12-month period prior to the end of the reporting period (“the
ceiling”) with the book value of those reserves at the balance
sheet date. If the book value of the reserves exceeds the
ceiling, a non-cash impairment charge must be recorded in order to
reduce the book value of the reserves to the calculated
ceiling. Seneca could potentially record non-cash impairments
in future quarters depending on the commodity price
environment.
Excluding this item, as well as the net impact
of non-cash mark-to-market adjustments recorded in the prior year
relating to hedge ineffectiveness (see table above), Seneca’s
fourth quarter earnings decreased $9.6 million as the positive
impacts of higher natural gas production and a lower effective
income tax rate after the effect of the impairment were more than
offset by the negative impacts of lower realized natural gas and
crude oil prices, lower crude oil production, higher operating
expenses resulting from increased production and higher interest
expense.
Seneca produced 67.3 Bcfe during the fourth
quarter, an increase of 8.2 Bcfe, or 14%, from the prior
year. Natural gas production increased 8.6 Bcf, or 15%, due
primarily to production from the Company's acquisition of
Appalachian upstream assets on July 31, 2020, and new Marcellus and
Utica wells in Appalachia, partially offset by approximately 6 Bcf
of price-related curtailments. Net production increased 5.5
Bcf to 36.2 Bcf in the Eastern Development Area ("EDA"), primarily
due to higher production from the Company's recent Appalachian
acquisition, partly offset by natural production declines and the
impact of price-related curtailments. Net production increased 3.2
Bcf to 27.3 Bcf in Seneca’s Western Development Area ("WDA"),
primarily due to the ongoing development program in the region
partially offset by price-related curtailments. Oil
production for the fourth quarter decreased 56,000 Bbls, or 9%,
from the prior year due to a decline in production from assets in
the Midway Sunset area of California driven by a reduction in steam
injection rates in response to decreased oil prices, as well as
workover activities, partially offset by new production brought
on-line in Seneca’s Coalinga development area.
Seneca's average realized natural gas price,
after the impact of transportation costs and $0.28 per Mcf of
hedging gains, was $1.92 per Mcf, a decrease of $0.34 per Mcf from
the prior year. This decline was largely due to lower NYMEX prices
and lower spot pricing at local sales points in Pennsylvania.
Seneca's average realized oil price, after the impact of $14.49 per
Bbl of hedging gains, was $55.70 per Bbl, a decrease of $5.30 per
Bbl compared to the prior year. The decline in oil price
realizations was due primarily to lower market prices for unhedged
crude oil during the quarter and reduced price differentials at
local sales points in California.
Lease operating and transportation (“LOE”)
expense increased $4.6 million primarily due to higher
transportation costs in Appalachia from increased production,
partly offset by a decline in well repairs, workover activity and
steam fuel costs in California. LOE expense includes the fees
paid to the Company’s Gathering segment for gathering and
compression services used to connect Seneca’s Marcellus and Utica
production to sales points along interstate pipelines.
DD&A expense decreased $0.7 million due largely to the ceiling
test impairments recorded during fiscal 2020, partially offset by
higher natural gas production. On a unit of production basis,
Seneca's combined general and administrative ("G&A"), LOE and
DD&A expenses during the quarter collectively decreased $0.15
per Mcfe, or 8%, during the quarter. Interest expense
increased by $1.3 million from the prior year, primarily driven by
additional long-term borrowings from the Company's long-term debt
issuance in June 2020 that was used to fund a portion of the
Company's Appalachian acquisition. The reduction in Seneca's
effective income tax rate was largely driven by a reduction to
deferred state income taxes as a result of the recent Appalachian
acquisition.
Proved Reserves Year-End
Update
Seneca’s total proved natural gas and crude oil
reserves at September 30, 2020 were 3,458 Bcfe, an increase of 359
Bcfe, or 12%, from September 30, 2019. Seneca’s proved
developed reserves at the end of fiscal 2020 were 2,906 Bcfe,
representing 84% of total proved reserves, compared to 67% a year
ago. The proved reserves base is approximately 96% natural gas and
4% oil. In fiscal 2020, Seneca recorded 684 Bcfe of proved
developed producing reserves as a result of its recent Appalachian
acquisition, 9 Bcfe of proved reserve extensions and discoveries,
primarily in Appalachia, and 93 Bcfe of downward revisions due
primarily to changes in development plans and certain price-related
revisions.
Midstream Businesses
Pipeline and Storage Segment
The Pipeline and Storage segment’s operations
are carried out by National Fuel Gas Supply Corporation (“Supply
Corporation”) and Empire Pipeline, Inc. (“Empire”). The
Pipeline and Storage segment provides natural gas transportation
and storage services to affiliated and non-affiliated companies
through an integrated system of pipelines and underground natural
gas storage fields in western New York and Pennsylvania.
|
Three Months Ended |
|
September 30, |
(in thousands) |
2020 |
|
2019 |
|
Variance |
GAAP Earnings |
$ |
16,045 |
|
$ |
15,368 |
|
$ |
677 |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
46,966 |
|
$ |
35,747 |
|
$ |
11,219 |
The Pipeline and Storage segment’s fourth
quarter GAAP earnings increased $0.7 million versus the prior year,
with higher operating revenues and lower operation and maintenance
("O&M") expenses partially offset by higher DD&A expense,
higher interest expense, a decrease in other income and a higher
effective income tax rate. The increase in operating revenues
of $10.4 million, or 15%, was largely due to an increase in Supply
Corporation's transportation and storage rates effective February
1, 2020, in accordance with Supply Corporation's rate case
settlement, coupled with new demand charges for transportation
service from the Company's Empire North expansion project, which
was placed in service during the fourth quarter, and from Supply
Corporation's Line N to Monaca expansion project. O&M
expense decreased $0.9 million due to lower pipeline integrity,
compressor and facility maintenance costs. The increase in
DD&A expense of $3.3 million was primarily attributable to an
increase in Supply Corporation's depreciation rates associated with
its rate case settlement. The increase in interest expense of
$3.6 million was primarily driven by additional long-term
borrowings from the Company's long-term debt issuance in June
2020. The decrease in other income of $2.5 million was
primarily due to higher non-service pension and post-retirement
benefit costs coupled with a decrease in allowance for funds used
during construction (AFUDC). The increase in the effective
income tax rate was largely due to differences in book and tax
treatment of stock compensation.
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 currently deliver Seneca’s gross
Appalachian production to the interstate pipeline system.
|
Three Months Ended |
|
September 30, |
(in thousands) |
2020 |
|
2019 |
|
Variance |
GAAP Earnings |
$ |
17,550 |
|
$ |
16,902 |
|
$ |
648 |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
33,062 |
|
$ |
29,895 |
|
$ |
3,167 |
The Gathering segment’s fourth quarter GAAP
earnings increased $0.6 million versus the prior year. The increase
was primarily driven by higher operating revenues and the impact of
a lower effective income tax rate, which were partially offset by
higher DD&A expense, higher O&M expenses and higher
interest expense. Operating revenues increased $4.4 million
primarily due to an 8.3 Bcf increase in gathered volumes resulting
from the Company's recent Appalachian acquisition that included
certain midstream gathering assets and from new Appalachian wells
that were brought on-line, partially offset by decreases in
gathered volumes resulting from natural production declines and the
impact of price-related curtailments. The increase in
DD&A expense of $1.6 million was primarily attributable to
incremental depreciation expense related to the fourth quarter
Appalachian acquisition. This acquisition also contributed in
part to the $1.2 million increase in O&M expense, with the
remainder of the increase due to higher compressor facility and
maintenance costs. The increase in interest expense of $1.7
million was primarily driven by additional long-term borrowings
from the Company's long-term debt issuance in June 2020 that was
used to fund a portion of the Appalachian acquisition.
The reduction in the Gathering segment's effective income tax rate
was primarily due to a reduction to estimated deferred state income
taxes as a result of the recent Appalachian acquisition.
Downstream Businesses
Utility Segment
The Utility segment operations are carried out
by National Fuel Gas Distribution Corporation (“Distribution”),
which sells or transports natural gas to customers located in
western New York and northwestern Pennsylvania.
|
Three Months Ended |
|
September 30, |
(in thousands) |
2020 |
|
2019 |
|
Variance |
GAAP Earnings |
$ |
(6,969 |
) |
|
$ |
(7,728 |
) |
|
$ |
759 |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
8,550 |
|
|
$ |
6,714 |
|
|
$ |
1,836 |
The Utility segment’s fourth quarter net loss
was $0.8 million lower than the prior-year fourth quarter primarily
due to higher customer margin (operating revenues less purchased
gas sold), partially offset by higher O&M expense. The
increase in customer margin was due primarily to an increase in
customer usage and the impact of adjustments related to regulatory
rate and cost recovery mechanisms subject to annual
reconciliation.
The $2.7 million increase in O&M expense was
primarily attributable to higher personnel costs and incremental
expense recorded to increase the allowance for uncollectible
accounts due to the potential for future customer non-payment
resulting from the current economic backdrop brought on by
COVID-19.
Corporate and All Other
The Company’s operations that are included in
Corporate and All Other generated a combined net loss of $3.0
million in the current year fourth quarter, generally consistent
with the combined net loss of $2.5 million generated in the
prior-year fourth quarter.
EARNINGS TELECONFERENCE
The Company will host a conference call on
Friday, November 6, 2020, at 11 a.m. Eastern Time to discuss this
announcement. Pre-registration is required to access the
teleconference by phone in a listen-only mode by following this
link:
http://www.directeventreg.com/registration/event/5657046. To
access the webcast, visit the Events Calendar under the News &
Events page on the NFG Investor Relations website at
investor.nationalfuelgas.com. A replay of the conference call
will be available approximately two hours following the
teleconference at the same website link and by phone (toll-free) at
800-585-8367 using conference ID number “5657046”. Both the
webcast and conference call replay will be available until the
close of business on Friday, November 13, 2020.
National Fuel is an integrated energy company
reporting financial results for four operating segments:
Exploration and Production, Pipeline and Storage, Gathering, and
Utility. Additional information about National Fuel is
available at www.nationalfuelgas.com.
Certain statements contained herein, including
statements identified by the use of the words “anticipates,”
“estimates,” “expects,” “forecasts,” “intends,” “plans,”
“predicts,” “projects,” “believes,” “seeks,” “will,” “may” and
similar expressions, and statements which are other than statements
of historical facts, are “forward-looking statements” as defined by
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, which
could cause actual results or outcomes to differ materially from
those expressed in the forward-looking statements. The Company’s
expectations, beliefs and projections contained herein are
expressed in good faith and are believed to have a reasonable
basis, but there can be no assurance that such expectations,
beliefs or projections will result or be achieved or accomplished.
In addition to other factors, the following are important factors
that could cause actual results to differ materially from those
discussed in the forward-looking statements: the Company's
ability to successfully integrate acquired assets, including
Shell's upstream assets and midstream gathering assets in
Pennsylvania, and achieve expected cost synergies; the length and
severity of the recent COVID-19 pandemic, including its impacts
across our businesses on demand, operations, global supply chains
and liquidity; changes in economic conditions, including 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 or oil; impairments
under the SEC’s full cost ceiling test for natural gas and oil
reserves; the creditworthiness or performance of the Company’s key
suppliers, customers and counterparties; financial and economic
conditions, including the availability of credit, and occurrences
affecting the Company’s ability to obtain financing on acceptable
terms for working capital, capital expenditures and other
investments, including any downgrades in the Company’s credit
ratings and changes in interest rates and other capital market
conditions; 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; delays or
changes in costs or plans with respect to Company projects or
related projects of other companies, including disruptions due to
the COVID-19 pandemic, as well as difficulties or delays in
obtaining necessary governmental approvals, permits or orders or in
obtaining the cooperation of interconnecting facility operators;
the Company's ability to complete planned strategic transactions;
governmental/regulatory actions, initiatives and proceedings,
including those involving rate cases (which address, among other
things, target rates of return, rate design and retained natural
gas), environmental/safety requirements, affiliate relationships,
industry structure, and franchise renewal; changes in price
differentials between similar quantities of natural gas or oil 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 and oil reserves, including among others geology, lease
availability, title disputes, weather conditions, shortages, delays
or unavailability of equipment and services required in drilling
operations, insufficient gathering, processing and transportation
capacity, the need to obtain governmental approvals and permits,
and compliance with environmental laws and regulations; increasing
health care costs and the resulting effect on health insurance
premiums and on the obligation to provide other post-retirement
benefits; other changes in price differentials between similar
quantities of natural gas or oil 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; uncertainty
of oil and gas reserve estimates; significant differences between
the Company’s projected and actual production levels for natural
gas or oil; changes in demographic patterns and weather conditions;
changes in the availability, price or accounting treatment of
derivative financial instruments; changes in laws, actuarial
assumptions, the interest rate environment and the return on
plan/trust assets related to the Company’s pension and other
post-retirement benefits, which can affect future funding
obligations and costs and plan liabilities; economic disruptions or
uninsured losses resulting from major accidents, fires, severe
weather, natural disasters, terrorist activities or acts of war;
significant differences between the Company’s projected and actual
capital expenditures and operating expenses; or increasing costs of
insurance, changes in coverage and the ability to obtain insurance.
The Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date
thereof.
NATIONAL FUEL GAS
COMPANYAND SUBSIDIARIES
GUIDANCE SUMMARY
As discussed on page 2, the Company is revising
its earnings guidance for fiscal 2021. Additional details on
the Company's forecast assumptions and business segment guidance
are outlined in the table below.
While the Company could potentially record
non-cash impairments in future quarters depending on the commodity
price environment, the amount of these charges is not reasonably
determinable at this time. The amount of any ceiling test charge is
determined at the end of the applicable quarter and will depend on
many factors, including additions to or subtractions from proved
reserves, fluctuations in oil and gas prices, and income tax
effects related to the differences between the book and tax basis
of the Company’s oil and gas properties. Some or all of these
factors are likely to be significant. Because any potential ceiling
test impairment charges and other potential items impacting
comparability are not reasonably determinable at this time, the
Company is unable to provide earnings guidance other than on a
non-GAAP basis that excludes these items.
|
Preliminary FY 2021 Guidance |
|
Updated FY 2021 Guidance |
Consolidated Earnings
per Share, excluding items impacting comparability |
$3.40 to $3.70 |
|
$3.55 to $3.85 |
Consolidated Effective
Tax Rate |
~ 26% |
|
~ 26% |
|
|
|
|
Capital
Expenditures (Millions) |
|
|
|
Exploration and Production |
$290 - $330 |
|
$350 - $390 |
Pipeline and Storage |
$250 - $300 |
|
$250 - $300 |
Gathering |
$30 - $40 |
|
$30 - $40 |
Utility |
$90 - $100 |
|
$90 - $100 |
Consolidated Capital Expenditures |
$660 - $770 |
|
$720 - $830 |
|
|
|
|
Exploration &
Production Segment Guidance |
|
|
|
|
|
|
|
Commodity Price Assumptions |
|
|
|
NYMEX natural gas price |
$2.65 /MMBtu |
|
$3.00 /MMBtu |
Appalachian basin spot price (winter I summer) |
$2.25 /MMBtu | $2.00 /MMBtu |
|
$2.50 /MMBtu | $2.10 /MMBtu |
NYMEX (WTI) crude oil price |
$42.50 /Bbl |
|
$37.50 /Bbl |
California oil price premium (% of WTI) |
95% |
|
94% |
|
|
|
|
Production (Bcfe) |
|
|
|
East Division - Appalachia |
290 to 320 |
|
290 to 320 |
West Division - California |
~ 15 |
|
~ 15 |
Total Production |
305 to 335 |
|
305 to 335 |
|
|
|
|
E&P Operating Costs ($/Mcfe) |
|
|
|
LOE |
$0.83 - $0.85 |
|
$0.83 - $0.86 |
G&A |
$0.21 - $0.23 |
|
$0.21 - $0.23 |
DD&A |
$0.65 - $0.70 |
|
$0.60 - $0.65 |
|
|
|
|
Other Business Segment
Guidance (Millions) |
|
|
|
Gathering Segment Revenues |
$185 - $200 |
|
$185 - $200 |
Pipeline and Storage Segment Revenues |
$330 - $340 |
|
$330 - $340 |
|
|
|
|
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
QUARTER ENDED SEPTEMBER 30, 2020 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2019 GAAP earnings |
$ |
25,208 |
|
|
$ |
15,368 |
|
|
$ |
16,902 |
|
|
$ |
(7,728 |
) |
|
$ |
(2,469 |
) |
|
$ |
47,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market adjustments due
to hedge ineffectiveness |
(1,313 |
) |
|
|
|
|
|
|
|
|
|
(1,313 |
) |
Tax impact of mark-to-market
adjustments due to hedge ineffectiveness |
276 |
|
|
|
|
|
|
|
|
|
|
276 |
|
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
949 |
|
|
949 |
|
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
(199 |
) |
|
(199 |
) |
Fourth quarter 2019
adjusted operating results |
24,171 |
|
|
15,368 |
|
|
16,902 |
|
|
(7,728 |
) |
|
(1,719 |
) |
|
46,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
15,257 |
|
|
|
|
|
|
|
|
|
|
15,257 |
|
Higher (lower) crude oil
production |
(2,694 |
) |
|
|
|
|
|
|
|
|
|
(2,694 |
) |
Higher (lower) realized
natural gas prices, after hedging |
(16,951 |
) |
|
|
|
|
|
|
|
|
|
(16,951 |
) |
Higher (lower) realized crude
oil prices, after hedging |
(2,329 |
) |
|
|
|
|
|
|
|
|
|
(2,329 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
8,231 |
|
|
3,474 |
|
|
|
|
|
|
11,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
1,417 |
|
|
|
|
1,417 |
|
System modernization tracker
revenues |
|
|
|
|
|
|
225 |
|
|
|
|
225 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
1,423 |
|
|
|
|
1,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
(3,613 |
) |
|
|
|
|
|
|
|
|
|
(3,613 |
) |
Lower (higher) operating
expenses |
(563 |
) |
|
684 |
|
|
(969 |
) |
|
(2,154 |
) |
|
|
|
(3,002 |
) |
Lower (higher) depreciation /
depletion |
532 |
|
|
(2,568 |
) |
|
(1,251 |
) |
|
|
|
(703 |
) |
|
(3,990 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
(434 |
) |
|
(2,194 |
) |
|
|
|
|
|
(1,254 |
) |
|
(3,882 |
) |
(Higher) lower interest
expense |
(1,058 |
) |
|
(2,815 |
) |
|
(1,357 |
) |
|
|
|
(659 |
) |
|
(5,889 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
2,476 |
|
|
(824 |
) |
|
581 |
|
|
(22 |
) |
|
(679 |
) |
|
1,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding |
(222 |
) |
|
163 |
|
|
170 |
|
|
(130 |
) |
|
87 |
|
|
68 |
|
Fourth quarter 2020
adjusted operating results |
14,572 |
|
|
16,045 |
|
|
17,550 |
|
|
(6,969 |
) |
|
(4,927 |
) |
|
36,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas
properties |
(253,441 |
) |
|
|
|
|
|
|
|
|
|
(253,441 |
) |
Tax impact of impairment of
oil and gas properties |
69,698 |
|
|
|
|
|
|
|
|
|
|
69,698 |
|
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
2,439 |
|
|
2,439 |
|
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
(512 |
) |
|
(512 |
) |
Fourth quarter 2020
GAAP earnings |
$ |
(169,171 |
) |
|
$ |
16,045 |
|
|
$ |
17,550 |
|
|
$ |
(6,969 |
) |
|
$ |
(3,000 |
) |
|
$ |
(145,545 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not
reflect intercompany eliminations |
** Operating
results have been calculated using the 21% federal statutory rate
effective for the 2019 fiscal year. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
|
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
QUARTER ENDED SEPTEMBER 30, 2020 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2019 GAAP earnings per share |
$ |
0.29 |
|
|
$ |
0.18 |
|
|
$ |
0.19 |
|
|
$ |
(0.09 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.54 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market adjustments due
to hedge ineffectiveness, net of tax |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
(0.01 |
) |
Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
0.01 |
|
|
0.01 |
|
Fourth quarter 2019
adjusted operating results per share |
0.28 |
|
|
0.18 |
|
|
0.19 |
|
|
(0.09 |
) |
|
(0.02 |
) |
|
0.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
0.17 |
|
|
|
|
|
|
|
|
|
|
0.17 |
|
Higher (lower) crude oil
production |
(0.03 |
) |
|
|
|
|
|
|
|
|
|
(0.03 |
) |
Higher (lower) realized
natural gas prices, after hedging |
(0.19 |
) |
|
|
|
|
|
|
|
|
|
(0.19 |
) |
Higher (lower) realized crude
oil prices, after hedging |
(0.03 |
) |
|
|
|
|
|
|
|
|
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
0.09 |
|
|
0.04 |
|
|
|
|
|
|
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
0.02 |
|
|
|
|
0.02 |
|
System modernization tracker
revenues |
|
|
|
|
|
|
— |
|
|
|
|
— |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
0.02 |
|
|
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
(0.04 |
) |
|
|
|
|
|
|
|
|
|
(0.04 |
) |
Lower (higher) operating
expenses |
(0.01 |
) |
|
0.01 |
|
|
(0.01 |
) |
|
(0.02 |
) |
|
|
|
(0.03 |
) |
Lower (higher) depreciation /
depletion |
0.01 |
|
|
(0.03 |
) |
|
(0.01 |
) |
|
|
|
(0.01 |
) |
|
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
— |
|
|
(0.02 |
) |
|
|
|
|
|
(0.01 |
) |
|
(0.03 |
) |
(Higher) lower interest
expense |
(0.01 |
) |
|
(0.03 |
) |
|
(0.01 |
) |
|
|
|
(0.01 |
) |
|
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
0.03 |
|
|
(0.01 |
) |
|
0.01 |
|
|
— |
|
|
(0.01 |
) |
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding |
(0.02 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
|
(0.01 |
) |
|
0.01 |
|
|
(0.05 |
) |
Fourth quarter 2020
adjusted operating results per share |
0.16 |
|
|
0.18 |
|
|
0.19 |
|
|
(0.08 |
) |
|
(0.05 |
) |
|
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas
properties, net of tax |
(2.02 |
) |
|
|
|
|
|
|
|
|
|
(2.02 |
) |
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
0.02 |
|
|
0.02 |
|
Fourth quarter 2020
GAAP earnings per share |
$ |
(1.86 |
) |
|
$ |
0.18 |
|
|
$ |
0.19 |
|
|
$ |
(0.08 |
) |
|
$ |
(0.03 |
) |
|
$ |
(1.60 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not
reflect intercompany eliminations |
** Operating
results have been calculated using the 21% federal statutory rate
effective for the 2019 fiscal year. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
|
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
TWELVE MONTHS ENDED SEPTEMBER 30, 2020 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2019 GAAP earnings |
$ |
111,807 |
|
|
$ |
74,011 |
|
|
$ |
58,413 |
|
|
$ |
60,871 |
|
|
$ |
(812 |
) |
|
$ |
304,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Remeasurement of deferred
taxes under 2017 Tax Reform |
(990 |
) |
|
|
|
(500 |
) |
|
|
|
(3,510 |
) |
|
(5,000 |
) |
Mark-to-market adjustments due
to hedge ineffectiveness |
(2,096 |
) |
|
|
|
|
|
|
|
|
|
(2,096 |
) |
Tax impact of mark-to-market
adjustments due to hedge ineffectiveness |
440 |
|
|
|
|
|
|
|
|
|
|
440 |
|
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
2,045 |
|
|
2,045 |
|
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
(429 |
) |
|
(429 |
) |
Fiscal 2019 adjusted
operating results |
109,161 |
|
|
74,011 |
|
|
57,913 |
|
|
60,871 |
|
|
(2,706 |
) |
|
299,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
56,872 |
|
|
|
|
|
|
|
|
|
|
56,872 |
|
Higher (lower) crude oil
production |
1,192 |
|
|
|
|
|
|
|
|
|
|
1,192 |
|
Higher (lower) realized
natural gas prices, after hedging |
(66,562 |
) |
|
|
|
|
|
|
|
|
|
(66,562 |
) |
Higher (lower) realized crude
oil prices, after hedging |
(8,707 |
) |
|
|
|
|
|
|
|
|
|
(8,707 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
16,844 |
|
|
12,496 |
|
|
|
|
|
|
29,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
(1,063 |
) |
|
|
|
(1,063 |
) |
System modernization tracker
revenues |
|
|
|
|
|
|
3,113 |
|
|
|
|
3,113 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
2,755 |
|
|
|
|
2,755 |
|
Higher (lower) energy
marketing margins |
|
|
|
|
|
|
|
|
3,022 |
|
|
3,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
(13,465 |
) |
|
|
|
|
|
|
|
|
|
(13,465 |
) |
Lower (higher) operating
expenses |
(662 |
) |
|
5,743 |
|
|
(3,350 |
) |
|
(8,474 |
) |
|
404 |
|
|
(6,339 |
) |
Lower (higher) property,
franchise and other taxes |
1,643 |
|
|
(1,818 |
) |
|
|
|
|
|
|
|
(175 |
) |
Lower (higher) depreciation /
depletion |
(13,699 |
) |
|
(7,113 |
) |
|
(1,898 |
) |
|
(1,119 |
) |
|
|
|
(23,829 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
(1,559 |
) |
|
(3,271 |
) |
|
|
|
502 |
|
|
|
|
(4,328 |
) |
(Higher) lower interest
expense |
(2,624 |
) |
|
(2,835 |
) |
|
(1,162 |
) |
|
725 |
|
|
(2,554 |
) |
|
(8,450 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
(666 |
) |
|
(3,228 |
) |
|
1,013 |
|
|
(189 |
) |
|
(1,338 |
) |
|
(4,408 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding |
(1,114 |
) |
|
527 |
|
|
(150 |
) |
|
245 |
|
|
223 |
|
|
(269 |
) |
Fiscal 2020 adjusted
operating results |
59,810 |
|
|
78,860 |
|
|
64,862 |
|
|
57,366 |
|
|
(2,949 |
) |
|
257,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas
properties |
(449,438 |
) |
|
|
|
|
|
|
|
|
|
(449,438 |
) |
Tax impact of impairment of
oil and gas properties |
123,187 |
|
|
|
|
|
|
|
|
|
|
123,187 |
|
Deferred tax valuation
allowance |
(60,463 |
) |
|
|
|
3,769 |
|
|
|
|
(76 |
) |
|
(56,770 |
) |
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
1,645 |
|
|
1,645 |
|
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
(345 |
) |
|
(345 |
) |
Fiscal 2020 GAAP
earnings |
$ |
(326,904 |
) |
|
$ |
78,860 |
|
|
$ |
68,631 |
|
|
$ |
57,366 |
|
|
$ |
(1,725 |
) |
|
$ |
(123,772 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect
intercompany eliminations |
|
|
|
|
|
|
|
|
|
|
|
** Operating
results have been calculated using the 21% federal statutory rate
effective for the 2019 fiscal year. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
|
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
TWELVE MONTHS ENDED SEPTEMBER 30, 2020 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
Fiscal 2019 GAAP earnings per share |
$ |
1.29 |
|
|
$ |
0.85 |
|
|
$ |
0.67 |
|
|
$ |
0.70 |
|
|
$ |
— |
|
|
$ |
3.51 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Remeasurement of deferred
taxes under 2017 Tax Reform |
(0.01 |
) |
|
|
|
(0.01 |
) |
|
|
|
(0.04 |
) |
|
(0.06 |
) |
Mark-to-market adjustments due
to hedge ineffectiveness, net of tax |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
(0.02 |
) |
Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
0.02 |
|
|
0.02 |
|
Rounding |
|
|
|
|
0.01 |
|
|
|
|
(0.01 |
) |
|
— |
|
Fiscal 2019 adjusted
operating results per share |
1.26 |
|
|
0.85 |
|
|
0.67 |
|
|
0.70 |
|
|
(0.03 |
) |
|
3.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
0.64 |
|
|
|
|
|
|
|
|
|
|
0.64 |
|
Higher (lower) crude oil
production |
0.01 |
|
|
|
|
|
|
|
|
|
|
0.01 |
|
Higher (lower) realized
natural gas prices, after hedging |
(0.75 |
) |
|
|
|
|
|
|
|
|
|
(0.75 |
) |
Higher (lower) realized crude
oil prices, after hedging |
(0.10 |
) |
|
|
|
|
|
|
|
|
|
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
0.19 |
|
|
0.14 |
|
|
|
|
|
|
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
(0.01 |
) |
|
|
|
(0.01 |
) |
System modernization tracker
revenues |
|
|
|
|
|
|
0.04 |
|
|
|
|
0.04 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
0.03 |
|
|
|
|
0.03 |
|
Higher (lower) energy
marketing margins |
|
|
|
|
|
|
|
|
0.03 |
|
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
(0.15 |
) |
|
|
|
|
|
|
|
|
|
(0.15 |
) |
Lower (higher) operating
expenses |
(0.01 |
) |
|
0.06 |
|
|
(0.04 |
) |
|
(0.10 |
) |
|
— |
|
|
(0.09 |
) |
Lower (higher) property,
franchise and other taxes |
0.02 |
|
|
(0.02 |
) |
|
|
|
|
|
|
|
— |
|
Lower (higher) depreciation /
depletion |
(0.15 |
) |
|
(0.08 |
) |
|
(0.02 |
) |
|
(0.01 |
) |
|
|
|
(0.26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
(0.02 |
) |
|
(0.04 |
) |
|
|
|
0.01 |
|
|
|
|
(0.05 |
) |
(Higher) lower interest
expense |
(0.03 |
) |
|
(0.03 |
) |
|
(0.01 |
) |
|
0.01 |
|
|
(0.03 |
) |
|
(0.09 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
(0.01 |
) |
|
(0.04 |
) |
|
0.01 |
|
|
— |
|
|
(0.02 |
) |
|
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding |
(0.03 |
) |
|
— |
|
|
(0.02 |
) |
|
(0.02 |
) |
|
0.02 |
|
|
(0.05 |
) |
Fiscal 2020 adjusted
operating results per share |
0.68 |
|
|
0.89 |
|
|
0.73 |
|
|
0.65 |
|
|
(0.03 |
) |
|
2.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas
properties, net of tax |
(3.71 |
) |
|
|
|
|
|
|
|
|
|
(3.71 |
) |
Deferred tax valuation
allowance |
(0.69 |
) |
|
|
|
0.04 |
|
|
|
|
— |
|
|
(0.65 |
) |
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
0.01 |
|
|
0.01 |
|
Earnings per share impact of
diluted shares |
|
|
0.01 |
|
|
0.01 |
|
|
|
|
|
|
0.02 |
|
Fiscal 2020 GAAP
earnings per share |
$ |
(3.72 |
) |
|
$ |
0.90 |
|
|
$ |
0.78 |
|
|
$ |
0.65 |
|
|
$ |
(0.02 |
) |
|
$ |
(1.41 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect
intercompany eliminations |
|
|
|
|
|
|
|
|
|
|
|
** Operating
results have been calculated using the 21% federal statutory rate
effective for the 2019 fiscal year. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
(Thousands of Dollars, except
per share amounts) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
(Unaudited) |
|
(Unaudited) |
SUMMARY OF
OPERATIONS |
2020 |
|
2019 |
|
2020 |
|
2019 |
Operating Revenues: |
|
|
|
|
|
|
|
Utility and Energy Marketing Revenues |
$ |
78,016 |
|
|
$ |
79,925 |
|
|
$ |
728,336 |
|
|
$ |
860,985 |
|
Exploration and Production and Other Revenues |
155,811 |
|
|
166,262 |
|
|
611,885 |
|
|
636,528 |
|
Pipeline and Storage and Gathering Revenues |
54,162 |
|
|
47,153 |
|
|
206,070 |
|
|
195,819 |
|
|
287,989 |
|
|
293,340 |
|
|
1,546,291 |
|
|
1,693,332 |
|
Operating Expenses: |
|
|
|
|
|
|
|
Purchased Gas |
(5,773 |
) |
|
4,728 |
|
|
233,890 |
|
|
386,265 |
|
Operation and Maintenance: |
|
|
|
|
|
|
|
Utility and Energy Marketing |
42,120 |
|
|
39,390 |
|
|
181,051 |
|
|
171,472 |
|
Exploration and Production and Other |
39,800 |
|
|
38,847 |
|
|
148,856 |
|
|
147,457 |
|
Pipeline and Storage and Gathering |
31,151 |
|
|
30,926 |
|
|
108,640 |
|
|
111,783 |
|
Property, Franchise and Other Taxes |
21,132 |
|
|
20,839 |
|
|
88,400 |
|
|
88,886 |
|
Depreciation, Depletion and Amortization |
80,097 |
|
|
74,670 |
|
|
306,158 |
|
|
275,660 |
|
Impairment of Oil and Gas Producing Properties |
253,441 |
|
|
— |
|
|
449,438 |
|
|
— |
|
|
461,968 |
|
|
209,400 |
|
|
1,516,433 |
|
|
1,181,523 |
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
(173,979 |
) |
|
83,940 |
|
|
29,858 |
|
|
511,809 |
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
Other Income (Deductions) |
159 |
|
|
1,435 |
|
|
(17,814 |
) |
|
(15,542 |
) |
Interest Expense on Long-Term Debt |
(32,159 |
) |
|
(25,598 |
) |
|
(110,012 |
) |
|
(101,614 |
) |
Other Interest Expense |
(2,202 |
) |
|
(1,081 |
) |
|
(7,065 |
) |
|
(5,142 |
) |
|
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
(208,181 |
) |
|
58,696 |
|
|
(105,033 |
) |
|
389,511 |
|
|
|
|
|
|
|
|
|
Income Tax Expense
(Benefit) |
(62,636 |
) |
|
11,415 |
|
|
18,739 |
|
|
85,221 |
|
|
|
|
|
|
|
|
|
Net Income (Loss) Available
for Common Stock |
$ |
(145,545 |
) |
|
$ |
47,281 |
|
|
$ |
(123,772 |
) |
|
$ |
304,290 |
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per Common
Share |
|
|
|
|
|
|
|
Basic |
$ |
(1.60 |
) |
|
$ |
0.55 |
|
|
$ |
(1.41 |
) |
|
$ |
3.53 |
|
Diluted |
$ |
(1.60 |
) |
|
$ |
0.54 |
|
|
$ |
(1.41 |
) |
|
$ |
3.51 |
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares: |
|
|
|
|
|
|
|
Used in Basic Calculation |
90,954,447 |
|
86,315,038 |
|
87,968,895 |
|
86,235,550 |
Used in Diluted
Calculation |
90,954,447 |
|
86,807,821 |
|
87,968,895 |
|
86,773,259 |
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
|
|
|
September 30, |
|
September 30, |
(Thousands of Dollars) |
|
2020 |
|
|
2019 |
|
|
|
|
ASSETS |
|
|
|
Property, Plant and Equipment |
$ |
12,351,852 |
|
|
$ |
11,204,838 |
|
Less -
Accumulated Depreciation, Depletion and Amortization |
|
6,353,785 |
|
|
|
5,695,328 |
|
Net Property, Plant and Equipment |
|
5,998,067 |
|
|
|
5,509,510 |
|
Assets
Held for Sale, Net |
|
53,424 |
|
|
|
— |
|
|
|
|
|
Current Assets: |
|
|
|
Cash and Temporary Cash
Investments |
|
20,541 |
|
|
|
20,428 |
|
Hedging Collateral
Deposits |
|
— |
|
|
|
6,832 |
|
Receivables - Net |
|
143,583 |
|
|
|
139,956 |
|
Unbilled Revenue |
|
17,302 |
|
|
|
18,758 |
|
Gas Stored Underground |
|
33,338 |
|
|
|
36,632 |
|
Materials, Supplies and
Emission Allowances |
|
51,877 |
|
|
|
40,717 |
|
Unrecovered Purchased Gas
Costs |
|
— |
|
|
|
2,246 |
|
Other Current Assets |
|
47,557 |
|
|
|
97,054 |
|
Total Current Assets |
|
314,198 |
|
|
|
362,623 |
|
|
|
|
|
Other Assets: |
|
|
|
Recoverable Future Taxes |
|
118,310 |
|
|
|
115,197 |
|
Unamortized Debt Expense |
|
12,297 |
|
|
|
14,005 |
|
Other Regulatory Assets |
|
156,106 |
|
|
|
167,320 |
|
Deferred Charges |
|
67,131 |
|
|
|
33,843 |
|
Other Investments |
|
154,502 |
|
|
|
144,917 |
|
Goodwill |
|
5,476 |
|
|
|
5,476 |
|
Prepaid Post-Retirement
Benefit Costs |
|
76,035 |
|
|
|
60,517 |
|
Fair Value of Derivative
Financial Instruments |
|
9,308 |
|
|
|
48,669 |
|
Other |
|
81 |
|
|
|
80 |
|
Total Other Assets |
|
599,246 |
|
|
|
590,024 |
|
Total
Assets |
$ |
6,964,935 |
|
|
$ |
6,462,157 |
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES |
|
|
|
Capitalization: |
|
|
|
Comprehensive Shareholders'
Equity |
|
|
|
Common Stock, $1 Par Value
Authorized - 200,000,000 Shares; Issued and |
|
|
|
Outstanding - 90,954,696
Shares and 86,315,287 Shares, Respectively |
$ |
90,955 |
|
|
$ |
86,315 |
|
Paid in Capital |
|
1,004,158 |
|
|
|
832,264 |
|
Earnings Reinvested in the
Business |
|
991,630 |
|
|
|
1,272,601 |
|
Accumulated Other Comprehensive Loss |
|
(114,757 |
) |
|
|
(52,155 |
) |
Total Comprehensive
Shareholders' Equity |
|
1,971,986 |
|
|
|
2,139,025 |
|
Long-Term Debt, Net of Current Portion and Unamortized Discount and
Debt Issuance Costs |
|
2,629,576 |
|
|
|
2,133,718 |
|
Total Capitalization |
|
4,601,562 |
|
|
|
4,272,743 |
|
|
|
|
|
Current and Accrued
Liabilities: |
|
|
|
Notes Payable to Banks and
Commercial Paper |
|
30,000 |
|
|
|
55,200 |
|
Current Portion of Long-Term
Debt |
|
— |
|
|
|
— |
|
Accounts Payable |
|
134,126 |
|
|
|
132,208 |
|
Amounts Payable to
Customers |
|
10,788 |
|
|
|
4,017 |
|
Dividends Payable |
|
40,475 |
|
|
|
37,547 |
|
Interest Payable on Long-Term
Debt |
|
27,521 |
|
|
|
18,508 |
|
Customer Advances |
|
15,319 |
|
|
|
13,044 |
|
Customer Security
Deposits |
|
17,199 |
|
|
|
16,210 |
|
Other Accruals and Current
Liabilities |
|
140,176 |
|
|
|
139,600 |
|
Fair
Value of Derivative Financial Instruments |
|
43,969 |
|
|
|
5,574 |
|
Total Current and Accrued Liabilities |
|
459,573 |
|
|
|
421,908 |
|
|
|
|
|
Deferred Credits: |
|
|
|
Deferred Income Taxes |
|
696,054 |
|
|
|
653,382 |
|
Taxes Refundable to
Customers |
|
357,508 |
|
|
|
366,503 |
|
Cost of Removal Regulatory
Liability |
|
230,079 |
|
|
|
221,699 |
|
Other Regulatory
Liabilities |
|
161,573 |
|
|
|
142,367 |
|
Pension and Other
Post-Retirement Liabilities |
|
127,181 |
|
|
|
133,729 |
|
Asset Retirement
Obligations |
|
192,228 |
|
|
|
127,458 |
|
Other
Deferred Credits |
|
139,177 |
|
|
|
122,368 |
|
Total Deferred Credits |
|
1,903,800 |
|
|
|
1,767,506 |
|
Commitments and Contingencies |
|
— |
|
|
|
— |
|
Total
Capitalization and Liabilities |
$ |
6,964,935 |
|
|
$ |
6,462,157 |
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
Twelve Months Ended |
|
September 30, |
(Thousands of Dollars) |
2020 |
|
2019 |
|
|
|
|
Operating Activities: |
|
|
|
Net Income (Loss) Available for Common Stock |
$ |
(123,772 |
) |
|
$ |
304,290 |
|
Adjustments to Reconcile Net
Income to Net Cash |
|
|
|
Provided by Operating Activities: |
|
|
|
Impairment of Oil and Gas Producing Properties |
449,438 |
|
|
— |
|
Depreciation, Depletion and Amortization |
306,158 |
|
|
275,660 |
|
Deferred Income Taxes |
54,313 |
|
|
122,265 |
|
Stock-Based Compensation |
14,931 |
|
|
21,186 |
|
Other |
6,527 |
|
|
8,608 |
|
Change in: |
|
|
|
Receivables and Unbilled Revenue |
(2,578 |
) |
|
6,379 |
|
Gas Stored Underground and Materials, Supplies and Emission
Allowances |
(6,625 |
) |
|
(3,713 |
) |
Unrecovered Purchased Gas Costs |
2,246 |
|
|
1,958 |
|
Other Current Assets |
49,367 |
|
|
(29,030 |
) |
Accounts Payable |
(4,657 |
) |
|
(24,770 |
) |
Amounts Payable to Customers |
6,771 |
|
|
623 |
|
Customer Advances |
2,275 |
|
|
(565 |
) |
Customer Security Deposits |
989 |
|
|
(9,493 |
) |
Other Accruals and Current Liabilities |
5,001 |
|
|
10,992 |
|
Other Assets |
(24,203 |
) |
|
5,115 |
|
Other Liabilities |
4,628 |
|
|
4,978 |
|
Net Cash Provided by Operating Activities |
$ |
740,809 |
|
|
$ |
694,483 |
|
|
|
|
|
Investing Activities: |
|
|
|
Capital Expenditures |
$ |
(716,153 |
) |
|
$ |
(788,938 |
) |
Acquisition of Upstream Assets
and Midstream Gathering Assets |
(506,258 |
) |
|
— |
|
Other |
(1,205 |
) |
|
(10,237 |
) |
Net Cash Used in Investing Activities |
$ |
(1,223,616 |
) |
|
$ |
(799,175 |
) |
|
|
|
|
Financing Activities: |
|
|
|
Changes in Notes Payable to
Banks and Commercial Paper |
$ |
(25,200 |
) |
|
$ |
55,200 |
|
Dividends Paid on Common
Stock |
(153,322 |
) |
|
(147,418 |
) |
Net Proceeds From Issuance of
Long-Term Debt |
493,007 |
|
|
— |
|
Net
Proceeds from Issuance (Repurchase) of Common Stock |
161,603 |
|
|
(8,877 |
) |
Net Cash Provided by (Used in) Financing Activities |
$ |
476,088 |
|
|
$ |
(101,095 |
) |
|
|
|
|
Net Decrease in Cash, Cash
Equivalents, and Restricted Cash |
(6,719 |
) |
|
(205,787 |
) |
Cash,
Cash Equivalents, and Restricted Cash at Beginning of Period |
27,260 |
|
|
233,047 |
|
Cash,
Cash Equivalents, and Restricted Cash at September 30 |
$ |
20,541 |
|
|
$ |
27,260 |
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
UPSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Thousands of Dollars, except
per share amounts) |
September 30, |
|
September 30, |
EXPLORATION AND
PRODUCTION SEGMENT |
2020 |
|
2019 |
|
Variance |
|
2020 |
2019 |
Variance |
Total Operating Revenues |
$ |
154,726 |
|
|
$ |
164,887 |
|
|
$ |
(10,161 |
) |
|
$ |
607,453 |
|
$ |
632,740 |
|
$ |
(25,287 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
|
General and Administrative Expense |
16,653 |
|
|
16,063 |
|
|
590 |
|
|
63,429 |
|
64,003 |
|
(574 |
) |
Lease Operating and Transportation Expense |
54,983 |
|
|
50,409 |
|
|
4,574 |
|
|
203,670 |
|
186,626 |
|
17,044 |
|
All Other Operation and Maintenance Expense |
3,548 |
|
|
3,425 |
|
|
123 |
|
|
12,542 |
|
11,130 |
|
1,412 |
|
Property, Franchise and Other Taxes |
4,103 |
|
|
4,168 |
|
|
(65 |
) |
|
15,646 |
|
17,726 |
|
(2,080 |
) |
Depreciation, Depletion and Amortization |
43,467 |
|
|
44,141 |
|
|
(674 |
) |
|
172,124 |
|
154,784 |
|
17,340 |
|
Impairment of Oil and Gas Producing Properties |
253,441 |
|
|
— |
|
|
253,441 |
|
|
449,438 |
|
— |
|
449,438 |
|
|
376,195 |
|
|
118,206 |
|
|
257,989 |
|
|
916,849 |
|
434,269 |
|
482,580 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
(221,469 |
) |
|
46,681 |
|
|
(268,150 |
) |
|
(309,396 |
) |
198,471 |
(507,867 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
(395 |
) |
|
(4 |
) |
|
(391 |
) |
|
(1,580 |
) |
(16 |
) |
(1,564 |
) |
Interest and Other Income |
115 |
|
|
273 |
|
|
(158 |
) |
|
698 |
|
1,107 |
|
(409 |
) |
Interest Expense |
(15,555 |
) |
|
(14,216 |
) |
|
(1,339 |
) |
|
(58,098 |
) |
(54,777 |
) |
(3,321 |
) |
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
(237,304 |
) |
|
32,734 |
|
|
(270,038 |
) |
|
(368,376 |
) |
144,785 |
|
(513,161 |
) |
Income Tax Expense
(Benefit) |
(68,133 |
) |
|
7,526 |
|
|
(75,659 |
) |
|
(41,472 |
) |
32,978 |
|
(74,450 |
) |
Net Income (Loss) |
$ |
(169,171 |
) |
|
$ |
25,208 |
|
|
$ |
(194,379 |
) |
|
$ |
(326,904 |
) |
$ |
111,807 |
|
$ |
(438,711 |
) |
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Share
(Diluted) |
$ |
(1.86 |
) |
|
$ |
0.29 |
|
|
$ |
(2.15 |
) |
|
$ |
(3.72 |
) |
$ |
1.29 |
|
$ |
(5.01 |
) |
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
MIDSTREAM BUSINESSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Thousands of Dollars, except
per share amounts) |
September 30, |
|
September 30, |
PIPELINE AND STORAGE
SEGMENT |
2020 |
|
2019 |
|
Variance |
|
2020 |
2019 |
Variance |
Revenues from External Customers |
$ |
54,090 |
|
|
$ |
47,143 |
|
|
$ |
6,947 |
|
|
$ |
205,998 |
|
$ |
195,808 |
|
$ |
10,190 |
|
Intersegment Revenues |
26,236 |
|
|
22,764 |
|
|
3,472 |
|
|
103,606 |
|
92,475 |
|
11,131 |
|
Total Operating Revenues |
80,326 |
|
|
69,907 |
|
|
10,419 |
|
|
309,604 |
|
288,283 |
|
21,321 |
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
74 |
|
|
241 |
|
|
(167 |
) |
|
75 |
|
1,124 |
|
(1,049 |
) |
Operation and Maintenance |
25,233 |
|
|
26,099 |
|
|
(866 |
) |
|
87,440 |
|
94,710 |
|
(7,270 |
) |
Property, Franchise and Other
Taxes |
8,053 |
|
|
7,820 |
|
|
233 |
|
|
32,569 |
|
30,268 |
|
2,301 |
|
Depreciation, Depletion and
Amortization |
14,638 |
|
|
11,387 |
|
|
3,251 |
|
|
53,951 |
|
44,947 |
|
9,004 |
|
|
47,998 |
|
|
45,547 |
|
|
2,451 |
|
|
174,035 |
|
171,049 |
|
2,986 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
32,328 |
|
|
24,360 |
|
|
7,968 |
|
|
135,569 |
|
117,234 |
|
18,335 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit (Costs) Credit |
(394 |
) |
|
930 |
|
|
(1,324 |
) |
|
(917 |
) |
3,257 |
|
(4,174 |
) |
Interest and Other Income |
701 |
|
|
1,882 |
|
|
(1,181 |
) |
|
5,552 |
|
5,900 |
|
(348 |
) |
Interest Expense |
(10,695 |
) |
|
(7,132 |
) |
|
(3,563 |
) |
|
(32,731 |
) |
(29,142 |
) |
(3,589 |
) |
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
21,940 |
|
|
20,040 |
|
|
1,900 |
|
|
107,473 |
|
97,249 |
|
10,224 |
|
Income Tax Expense |
5,895 |
|
|
4,672 |
|
|
1,223 |
|
|
28,613 |
|
23,238 |
|
5,375 |
|
Net Income |
$ |
16,045 |
|
|
$ |
15,368 |
|
|
$ |
677 |
|
|
$ |
78,860 |
|
$ |
74,011 |
|
$ |
4,849 |
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share
(Diluted) |
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
— |
|
|
$ |
0.90 |
|
$ |
0.85 |
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
GATHERING
SEGMENT |
2020 |
|
2019 |
|
Variance |
|
2020 |
2019 |
Variance |
Revenues from External
Customers |
$ |
72 |
|
|
$ |
10 |
|
|
$ |
62 |
|
|
$ |
72 |
|
$ |
11 |
|
$ |
61 |
|
Intersegment Revenues |
39,467 |
|
|
35,132 |
|
|
4,335 |
|
|
142,821 |
|
127,064 |
|
15,757 |
|
Total Operating Revenues |
39,539 |
|
|
35,142 |
|
|
4,397 |
|
|
142,893 |
|
127,075 |
|
15,818 |
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
6,455 |
|
|
5,229 |
|
|
1,226 |
|
|
22,942 |
|
18,702 |
|
4,240 |
|
Property, Franchise and Other Taxes |
22 |
|
|
18 |
|
|
4 |
|
|
72 |
|
81 |
|
(9 |
) |
Depreciation, Depletion and Amortization |
6,785 |
|
|
5,202 |
|
|
1,583 |
|
|
22,440 |
|
20,038 |
|
2,402 |
|
|
13,262 |
|
|
10,449 |
|
|
2,813 |
|
|
45,454 |
|
38,821 |
|
6,633 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
26,277 |
|
|
24,693 |
|
|
1,584 |
|
|
97,439 |
|
88,254 |
|
9,185 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
(71 |
) |
|
(1 |
) |
|
(70 |
) |
|
(285 |
) |
(86 |
) |
(199 |
) |
Interest and Other Income |
346 |
|
|
57 |
|
|
289 |
|
|
545 |
|
546 |
|
(1 |
) |
Interest Expense |
(4,115 |
) |
|
(2,397 |
) |
|
(1,718 |
) |
|
(10,877 |
) |
(9,406 |
) |
(1,471 |
) |
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
22,437 |
|
|
22,352 |
|
|
85 |
|
|
86,822 |
|
79,308 |
|
7,514 |
|
Income Tax Expense |
4,887 |
|
|
5,450 |
|
|
(563 |
) |
|
18,191 |
|
20,895 |
|
(2,704 |
) |
Net Income |
$ |
17,550 |
|
|
$ |
16,902 |
|
|
$ |
648 |
|
|
$ |
68,631 |
|
$ |
58,413 |
|
$ |
10,218 |
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share
(Diluted) |
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
— |
|
|
$ |
0.78 |
|
$ |
0.67 |
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
DOWNSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Thousands of Dollars, except
per share amounts) |
September 30, |
|
September 30, |
UTILITY
SEGMENT |
2020 |
|
2019 |
|
Variance |
|
2020 |
2019 |
Variance |
Revenues from External Customers |
$ |
73,000 |
|
|
$ |
67,189 |
|
|
$ |
5,811 |
|
|
$ |
642,855 |
|
$ |
715,813 |
|
$ |
(72,958 |
) |
Intersegment Revenues |
944 |
|
|
1,645 |
|
|
(701 |
) |
|
9,443 |
|
11,629 |
|
(2,186 |
) |
Total Operating Revenues |
73,944 |
|
|
68,834 |
|
|
5,110 |
|
|
652,298 |
|
727,442 |
|
(75,144 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
15,243 |
|
|
14,712 |
|
|
531 |
|
|
263,112 |
|
342,832 |
|
(79,720 |
) |
Operation and Maintenance |
41,573 |
|
|
38,845 |
|
|
2,728 |
|
|
178,896 |
|
168,684 |
|
10,212 |
|
Property, Franchise and Other Taxes |
8,578 |
|
|
8,563 |
|
|
15 |
|
|
38,872 |
|
39,792 |
|
(920 |
) |
Depreciation, Depletion and Amortization |
14,007 |
|
|
13,630 |
|
|
377 |
|
|
55,248 |
|
53,832 |
|
1,416 |
|
|
79,401 |
|
|
75,750 |
|
|
3,651 |
|
|
536,128 |
|
605,140 |
|
(69,012 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
(5,457 |
) |
|
(6,916 |
) |
|
1,459 |
|
|
116,170 |
|
122,302 |
|
(6,132 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
(2,001 |
) |
|
(2,040 |
) |
|
39 |
|
|
(26,963 |
) |
(27,600 |
) |
637 |
|
Interest and Other Income |
589 |
|
|
870 |
|
|
(281 |
) |
|
3,583 |
|
3,579 |
|
4 |
|
Interest Expense |
(5,720 |
) |
|
(5,492 |
) |
|
(228 |
) |
|
(22,150 |
) |
(23,443 |
) |
1,293 |
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
(12,589 |
) |
|
(13,578 |
) |
|
989 |
|
|
70,640 |
|
74,838 |
|
(4,198 |
) |
Income Tax Expense
(Benefit) |
(5,620 |
) |
|
(5,850 |
) |
|
230 |
|
|
13,274 |
|
13,967 |
|
(693 |
) |
Net Income (Loss) |
$ |
(6,969 |
) |
|
$ |
(7,728 |
) |
|
$ |
759 |
|
|
$ |
57,366 |
|
$ |
60,871 |
|
$ |
(3,505 |
) |
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Share
(Diluted) |
$ |
(0.08 |
) |
|
$ |
(0.09 |
) |
|
$ |
0.01 |
|
|
$ |
0.65 |
|
$ |
0.70 |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Thousands of Dollars, except
per share amounts) |
September 30, |
|
September 30, |
ALL
OTHER |
2020 |
|
2019 |
|
Variance |
|
2020 |
2019 |
Variance |
Revenues from External Customers |
$ |
5,988 |
|
|
$ |
13,977 |
|
|
$ |
(7,989 |
) |
|
$ |
89,435 |
|
$ |
148,582 |
|
$ |
(59,147 |
) |
Intersegment Revenues |
237 |
|
|
71 |
|
|
166 |
|
|
836 |
|
1,127 |
|
(291 |
) |
Total Operating Revenues |
6,225 |
|
|
14,048 |
|
|
(7,823 |
) |
|
90,271 |
|
149,709 |
|
(59,438 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
5,263 |
|
|
13,439 |
|
|
(8,176 |
) |
|
80,485 |
|
144,292 |
|
(63,807 |
) |
Operation and Maintenance |
2,139 |
|
|
1,837 |
|
|
302 |
|
|
7,895 |
|
7,549 |
|
346 |
|
Property, Franchise and Other Taxes |
243 |
|
|
141 |
|
|
102 |
|
|
765 |
|
540 |
|
225 |
|
Depreciation, Depletion and Amortization |
1,064 |
|
|
115 |
|
|
949 |
|
|
1,716 |
|
1,291 |
|
425 |
|
|
8,709 |
|
|
15,532 |
|
|
(6,823 |
) |
|
90,861 |
|
153,672 |
|
(62,811 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Loss |
(2,484 |
) |
|
(1,484 |
) |
|
(1,000 |
) |
|
(590 |
) |
(3,963 |
) |
3,373 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
(69 |
) |
|
(11 |
) |
|
(58 |
) |
|
(276 |
) |
(153 |
) |
(123 |
) |
Interest and Other Income |
201 |
|
|
319 |
|
|
(118 |
) |
|
873 |
|
1,371 |
|
(498 |
) |
Interest Expense |
(13 |
) |
|
(6 |
) |
|
(7 |
) |
|
(66 |
) |
(21 |
) |
(45 |
) |
|
|
|
|
|
|
|
|
|
|
Loss before Income Taxes |
(2,365 |
) |
|
(1,182 |
) |
|
(1,183 |
) |
|
(59 |
) |
(2,766 |
) |
2,707 |
|
Income Tax Expense
(Benefit) |
(565 |
) |
|
(316 |
) |
|
(249 |
) |
|
210 |
|
(955 |
) |
1,165 |
|
Net Loss |
$ |
(1,800 |
) |
|
$ |
(866 |
) |
|
$ |
(934 |
) |
|
$ |
(269 |
) |
$ |
(1,811 |
) |
$ |
1,542 |
|
Net Loss Per Share
(Diluted) |
$ |
(0.02 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
$ |
— |
|
$ |
(0.02 |
) |
$ |
0.02 |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
CORPORATE |
2020 |
|
2019 |
|
Variance |
|
2020 |
2019 |
Variance |
Revenues from External
Customers |
$ |
113 |
|
|
$ |
134 |
|
|
$ |
(21 |
) |
|
$ |
478 |
|
$ |
378 |
|
$ |
100 |
|
Intersegment Revenues |
1,463 |
|
|
1,144 |
|
|
319 |
|
|
4,744 |
|
4,638 |
|
106 |
|
Total Operating Revenues |
1,576 |
|
|
1,278 |
|
|
298 |
|
|
5,222 |
|
5,016 |
|
206 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
4,481 |
|
|
4,348 |
|
|
133 |
|
|
13,401 |
|
14,258 |
|
(857 |
) |
Property, Franchise and Other Taxes |
133 |
|
|
129 |
|
|
4 |
|
|
476 |
|
479 |
|
(3 |
) |
Depreciation, Depletion and Amortization |
136 |
|
|
195 |
|
|
(59 |
) |
|
679 |
|
768 |
|
(89 |
) |
|
4,750 |
|
|
4,672 |
|
|
78 |
|
|
14,556 |
|
15,505 |
|
(949 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Loss |
(3,174 |
) |
|
(3,394 |
) |
|
220 |
|
|
(9,334 |
) |
(10,489 |
) |
1,155 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
(775 |
) |
|
(647 |
) |
|
(128 |
) |
|
(3,101 |
) |
(2,679 |
) |
(422 |
) |
Interest and Other Income |
37,730 |
|
|
28,993 |
|
|
8,737 |
|
|
127,524 |
|
115,605 |
|
11,919 |
|
Interest Expense on Long-Term Debt |
(32,159 |
) |
|
(25,598 |
) |
|
(6,561 |
) |
|
(110,012 |
) |
(101,614 |
) |
(8,398 |
) |
Other Interest Expense |
(1,922 |
) |
|
(1,024 |
) |
|
(898 |
) |
|
(6,610 |
) |
(4,726 |
) |
(1,884 |
) |
|
|
|
|
|
|
|
|
|
|
Loss before Income Taxes |
(300 |
) |
|
(1,670 |
) |
|
1,370 |
|
|
(1,533 |
) |
(3,903 |
) |
2,370 |
|
Income Tax Expense
(Benefit) |
900 |
|
|
(67 |
) |
|
967 |
|
|
(77 |
) |
(4,902 |
) |
4,825 |
|
Net Income (Loss) |
$ |
(1,200 |
) |
|
$ |
(1,603 |
) |
|
$ |
403 |
|
|
$ |
(1,456 |
) |
$ |
999 |
|
$ |
(2,455 |
) |
Net Income (Loss) Per Share
(Diluted) |
$ |
(0.01 |
) |
|
$ |
(0.02 |
) |
|
$ |
0.01 |
|
|
$ |
(0.02 |
) |
$ |
0.02 |
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
INTERSEGMENT
ELIMINATIONS |
2020 |
|
2019 |
|
Variance |
|
2020 |
2019 |
Variance |
Intersegment Revenues |
$ |
(68,347 |
) |
|
$ |
(60,756 |
) |
|
$ |
(7,591 |
) |
|
$ |
(261,450 |
) |
$ |
(236,933 |
) |
$ |
(24,517 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
(26,353 |
) |
|
(23,664 |
) |
|
(2,689 |
) |
|
(109,782 |
) |
(101,983 |
) |
(7,799 |
) |
Operation and Maintenance |
(41,994 |
) |
|
(37,092 |
) |
|
(4,902 |
) |
|
(151,668 |
) |
(134,950 |
) |
(16,718 |
) |
|
(68,347 |
) |
|
(60,756 |
) |
|
(7,591 |
) |
|
(261,450 |
) |
(236,933 |
) |
(24,517 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Income |
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Interest and Other Deductions |
(35,818 |
) |
|
(29,186 |
) |
|
(6,632 |
) |
|
(123,467 |
) |
(116,373 |
) |
(7,094 |
) |
Interest Expense |
35,818 |
|
|
29,186 |
|
|
6,632 |
|
|
123,467 |
|
116,373 |
|
7,094 |
|
Net Income (Loss) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Net Income (Loss) Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION (Continued) |
(Thousands of Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
2020 |
|
2019 |
|
(Decrease) |
|
2020 |
|
2019 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production (1) |
$ |
375,466 |
|
(3) |
$ |
100,215 |
(4) |
$ |
275,251 |
|
|
$ |
670,455 |
|
(3)(4) |
$ |
491,889 |
(4)(5) |
$ |
178,566 |
|
Pipeline and Storage |
42,520 |
|
(3) |
54,878 |
(4) |
(12,358 |
) |
|
166,652 |
|
(3)(4) |
143,005 |
(4)(5) |
23,647 |
|
Gathering (2) |
251,606 |
|
(3) |
10,254 |
(4) |
241,352 |
|
|
297,806 |
|
(3)(4) |
49,650 |
(4)(5) |
248,156 |
|
Utility |
32,034 |
|
(3) |
37,483 |
(4) |
(5,449 |
) |
|
94,273 |
|
(3)(4) |
95,847 |
(4)(5) |
(1,574 |
) |
Total Reportable Segments |
701,626 |
|
|
202,830 |
|
498,796 |
|
|
1,229,186 |
|
|
780,391 |
|
448,795 |
|
All Other |
2 |
|
|
5 |
|
(3 |
) |
|
39 |
|
|
128 |
|
(89 |
) |
Corporate |
102 |
|
|
358 |
|
(256 |
) |
|
522 |
|
|
727 |
|
(205 |
) |
Eliminations |
(1,130 |
) |
|
— |
|
(1,130 |
) |
|
(1,130 |
) |
|
— |
|
(1,130 |
) |
Total Capital Expenditures |
$ |
700,600 |
|
|
$ |
203,193 |
|
$ |
497,407 |
|
|
$ |
1,228,617 |
|
|
$ |
781,246 |
|
$ |
447,371 |
|
(1) |
2020 includes $285.6 million related to the acquisition of upstream
assets acquired from Shell, of which $284.5 million is included in
Property, Plant and Equipment and $1.1 million is included in
Materials, Supplies and Emission Allowances. Excluding
liabilities accrued, the amount paid was $282.8 million. |
|
|
(2) |
2020 includes $223.5
million related to the acquisition of midstream gathering assets
acquired from Shell, of which $223.4 million is included in
Property, Plant and Equipment and $0.1 million is included in
Materials, Supplies and Emission Allowances. |
|
|
(3) |
Capital expenditures for the
quarter and year ended September 30, 2020, include accounts payable
and accrued liabilities related to capital expenditures of $45.8
million, $17.3 million, $13.5 million, and $10.7 million in the
Exploration and Production segment, Pipeline and Storage segment,
Gathering segment and Utility segment, respectively. These
amounts have been excluded from the Consolidated Statement of Cash
Flows at September 30, 2020, since they represent non-cash
investing activities at that date. |
|
|
(4) |
Capital expenditures for the year
ended September 30, 2020, exclude capital expenditures of $38.0
million, $23.8 million, $6.6 million and $12.7 million in the
Exploration and Production segment, Pipeline and Storage segment,
Gathering segment and Utility segment, respectively. These
amounts were in accounts payable and accrued liabilities at
September 30, 2019 and paid during the year ended September 30,
2020. These amounts were excluded from the Consolidated
Statement of Cash Flows at September 30, 2019, since they
represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at September 30, 2020. |
|
|
(5) |
Capital expenditures for the year
ended September 30, 2019, exclude capital expenditures of $51.3
million, $21.9 million, $6.1 million and $9.5 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, 2018 and paid during the year ended September 30,
2019. These amounts were excluded from the Consolidated
Statement of Cash Flows at September 30, 2018, since they
represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at September 30, 2019. |
|
|
|
|
|
|
|
|
|
|
DEGREE
DAYS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Colder |
|
|
|
|
|
|
|
(Warmer) Than: |
Three Months Ended September
30, |
Normal |
|
2020 |
|
2019 |
|
Normal (1) |
|
Last Year (1) |
|
|
|
|
|
|
|
|
|
|
Buffalo, NY |
162 |
|
101 |
|
45 |
|
(37.7 |
) |
|
124.4 |
|
Erie, PA |
124 |
|
68 |
|
12 |
|
(45.2 |
) |
|
466.7 |
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended September
30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo, NY |
6,653 |
|
6,103 |
|
6,699 |
|
(8.3 |
) |
|
(8.9 |
) |
Erie, PA |
6,181 |
|
5,449 |
|
5,911 |
|
(11.8 |
) |
|
(7.8 |
) |
|
|
|
|
|
|
|
|
|
|
(1) |
Percents compare actual 2020 degree days to normal degree days and
actual 2020 degree days to actual 2019 degree days. |
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
2020 |
|
2019 |
|
(Decrease) |
|
2020 |
|
2019 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
Gas
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
Production (MMcf) |
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
63,548 |
|
54,952 |
|
8,596 |
|
|
225,513 |
|
195,906 |
|
29,607 |
|
West Coast |
455 |
|
491 |
|
(36 |
) |
|
1,889 |
|
1,974 |
|
(85 |
) |
Total Production |
64,003 |
|
55,443 |
|
8,560 |
|
|
227,402 |
|
197,880 |
|
29,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Mcf) |
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
$ |
1.63 |
|
$ |
1.95 |
|
$ |
(0.32 |
) |
|
$ |
1.75 |
|
$ |
2.40 |
|
$ |
(0.65 |
) |
West Coast |
3.31 |
|
3.94 |
|
(0.63 |
) |
|
3.82 |
|
5.15 |
|
(1.33 |
) |
Weighted Average |
1.64 |
|
1.97 |
|
(0.33 |
) |
|
1.77 |
|
2.43 |
|
(0.66 |
) |
Weighted Average after Hedging |
1.92 |
|
2.26 |
|
(0.34 |
) |
|
2.07 |
|
2.44 |
|
(0.37 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Oil
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
Production (Thousands of
Barrels) |
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
1 |
|
1 |
|
— |
|
|
3 |
|
3 |
|
— |
|
West Coast |
555 |
|
611 |
|
(56 |
) |
|
2,345 |
|
2,320 |
|
25 |
|
Total Production |
556 |
|
612 |
|
(56 |
) |
|
2,348 |
|
2,323 |
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per
Barrel) |
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
$ |
31.22 |
|
$ |
60.70 |
|
$ |
(29.48 |
) |
|
$ |
45.69 |
|
$ |
57.14 |
|
$ |
(11.45 |
) |
West Coast |
41.22 |
|
61.85 |
|
(20.63 |
) |
|
45.94 |
|
64.18 |
|
(18.24 |
) |
Weighted Average |
41.21 |
|
61.85 |
|
(20.64 |
) |
|
45.94 |
|
64.17 |
|
(18.23 |
) |
Weighted Average after Hedging |
55.70 |
|
61.00 |
|
(5.30 |
) |
|
56.96 |
|
61.65 |
|
(4.69 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total Production (MMcfe) |
67,339 |
|
59,115 |
|
8,224 |
|
|
241,490 |
|
211,818 |
|
29,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Performance Statistics: |
|
|
|
|
|
|
|
|
|
|
|
General & Administrative
Expense per Mcfe (1) |
$ |
0.25 |
|
$ |
0.27 |
|
$ |
(0.02 |
) |
|
$ |
0.26 |
|
$ |
0.30 |
|
$ |
(0.04 |
) |
Lease Operating and
Transportation Expense per Mcfe (1)(2) |
$ |
0.82 |
|
$ |
0.85 |
|
$ |
(0.03 |
) |
|
$ |
0.84 |
|
$ |
0.88 |
|
$ |
(0.04 |
) |
Depreciation, Depletion &
Amortization per Mcfe (1) |
$ |
0.65 |
|
$ |
0.75 |
|
$ |
(0.10 |
) |
|
$ |
0.71 |
|
$ |
0.73 |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Refer to page 16 for the General and Administrative Expense, Lease
Operating and Transportation Expense and Depreciation, Depletion,
and Amortization Expense for the Exploration and Production
segment. |
|
|
(2) |
Amounts include transportation
expense of $0.57 and $0.56 per Mcfe for the three months ended
September 30, 2020 and September 30, 2019, respectively. Amounts
include transportation expense of $0.57 and $0.56 per Mcfe for the
twelve months ended September 30, 2020 and September 30, 2019,
respectively. |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2021 |
|
Volume |
|
|
Average Hedge
Price |
Oil Swaps |
|
|
|
|
|
|
Brent |
|
936,000 |
|
BBL |
|
$ |
59.45 / BBL |
NYMEX |
|
156,000 |
|
BBL |
|
$ |
51.00 / BBL |
Total |
|
1,092,000 |
|
BBL |
|
$ |
58.24 /
BBL |
|
|
|
|
|
|
|
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
149,160,000 |
|
MMBTU |
|
$ |
2.63 / MMBTU |
DAWN |
|
600,000 |
|
MMBTU |
|
$ |
3.00 / MMBTU |
No Cost Collars |
|
25,850,000 |
|
MMBTU |
|
$ |
2.28 / MMBTU (Floor) / $2.77 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
65,421,882 |
|
MMBTU |
|
$ |
2.20 / MMBTU |
Total |
|
241,031,882 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2022 |
|
Volume |
|
|
Average Hedge
Price |
Oil Swaps |
|
|
|
|
|
|
Brent |
|
300,000 |
|
BBL |
|
$ |
60.07 / BBL |
NYMEX |
|
156,000 |
|
BBL |
|
$ |
51.00 / BBL |
Total |
|
456,000 |
|
BBL |
|
$ |
56.97 /
BBL |
|
|
|
|
|
|
|
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
128,530,000 |
|
MMBTU |
|
$ |
2.65 / MMBTU |
No Cost Collars |
|
2,350,000 |
|
MMBTU |
|
$ |
2.28 / MMBTU (Floor) / $2.77 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
43,814,854 |
|
MMBTU |
|
$ |
2.30 / MMBTU |
Total |
|
174,694,854 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2023 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
23,240,000 |
|
MMBTU |
|
$ |
2.54 / MMBTU |
Fixed Price Physical
Sales |
|
38,508,864 |
|
MMBTU |
|
$ |
2.29 / MMBTU |
Total |
|
61,748,864 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2024 |
|
Volume |
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
NYMEX |
|
1,150,000 |
|
MMBTU |
|
$ |
2.45 / MMBTU |
Fixed Price Physical
Sales |
|
20,971,393 |
|
MMBTU |
|
$ |
2.25 / MMBTU |
Total |
|
22,121,393 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2025 |
|
Volume |
|
|
Average Hedge
Price |
Fixed Price Physical
Sales |
|
2,293,200 |
|
MMBTU |
|
$ |
2.18 / MMBTU |
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
|
|
|
Reserve Quantity Information |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Gas MMcf |
|
U.S. |
|
Appalachian |
West Coast |
Total |
|
Region |
Region |
Company |
Proved Developed and
Undeveloped Reserves: |
|
|
|
September 30, 2019 |
2,915,886 |
|
33,633 |
|
2,949,519 |
|
Extensions and
Discoveries |
7,246 |
|
— |
|
7,246 |
|
Revisions of Previous
Estimates |
(85,647 |
) |
(2,772 |
) |
(88,419 |
) |
Production |
(225,513 |
) |
(1,889 |
) |
(227,402 |
) |
Purchases of Minerals in
Place |
684,141 |
|
— |
|
684,141 |
|
September 30, 2020 |
3,296,113 |
|
28,972 |
|
3,325,085 |
|
|
|
|
|
Proved Developed
Reserves: |
|
|
|
September 30, 2019 |
1,901,162 |
|
33,633 |
|
1,934,795 |
|
September 30, 2020 |
2,744,851 |
|
28,972 |
|
2,773,823 |
|
|
|
|
|
|
|
|
|
|
Oil Mbbl |
|
U.S. |
|
Appalachian |
West Coast |
Total |
|
Region |
Region |
Company |
Proved Developed and
Undeveloped Reserves: |
|
|
|
September 30, 2019 |
13 |
|
24,860 |
|
24,873 |
|
Extensions and
Discoveries |
— |
|
288 |
|
288 |
|
Revisions of Previous
Estimates |
2 |
|
(715 |
) |
(713 |
) |
Production |
(3 |
) |
(2,345 |
) |
(2,348 |
) |
September 30, 2020 |
12 |
|
22,088 |
|
22,100 |
|
|
|
|
|
Proved Developed
Reserves: |
|
|
|
September 30, 2019 |
13 |
|
24,246 |
|
24,259 |
|
September 30, 2020 |
12 |
|
22,088 |
|
22,100 |
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline
& Storage Throughput - (millions of cubic feet -
MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
2020 |
|
2019 |
|
(Decrease) |
|
2020 |
|
2019 |
|
(Decrease) |
Firm Transportation - Affiliated |
13,021 |
|
14,194 |
|
(1,173 |
) |
|
111,166 |
|
121,618 |
|
(10,452 |
) |
Firm Transportation -
Non-Affiliated |
162,727 |
|
153,838 |
|
8,889 |
|
|
641,607 |
|
596,676 |
|
44,931 |
|
Interruptible
Transportation |
857 |
|
189 |
|
668 |
|
|
2,859 |
|
2,163 |
|
696 |
|
|
176,605 |
|
168,221 |
|
8,384 |
|
|
755,632 |
|
720,457 |
|
35,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering Volume -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
2020 |
|
2019 |
|
(Decrease) |
|
2020 |
|
2019 |
|
(Decrease) |
Gathered Volume -
Affiliated |
73,441 |
|
65,170 |
|
8,271 |
|
|
264,305 |
|
234,760 |
|
29,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Throughput -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
2020 |
|
2019 |
|
(Decrease) |
|
2020 |
|
2019 |
|
(Decrease) |
Retail Sales: |
|
|
|
|
|
|
|
|
|
|
|
Residential Sales |
4,033 |
|
3,247 |
|
786 |
|
|
60,977 |
|
63,828 |
|
(2,851 |
) |
Commercial Sales |
503 |
|
490 |
|
13 |
|
|
8,798 |
|
9,489 |
|
(691 |
) |
Industrial Sales |
31 |
|
63 |
|
(32 |
) |
|
537 |
|
702 |
|
(165 |
) |
|
4,567 |
|
3,800 |
|
767 |
|
|
70,312 |
|
74,019 |
|
(3,707 |
) |
Transportation |
9,040 |
|
10,115 |
|
(1,075 |
) |
|
68,272 |
|
76,028 |
|
(7,756 |
) |
|
13,607 |
|
13,915 |
|
(308 |
) |
|
138,584 |
|
150,047 |
|
(11,463 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS
COMPANYAND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
In addition to financial measures calculated in
accordance with generally accepted accounting principles (GAAP),
this press release contains information regarding Adjusted
Operating Results, Adjusted EBITDA and free cash flow, which are
non-GAAP financial measures. The Company believes that these
non-GAAP financial measures are useful to investors because they
provide an alternative method for assessing the Company's ongoing
operating results or liquidity and for comparing the Company’s
financial performance to other companies. The Company's
management uses these non-GAAP financial measures for the same
purpose, and for planning and forecasting purposes. The
presentation of non-GAAP financial measures is not meant to be a
substitute for financial measures in accordance with
GAAP.
Management defines Adjusted Operating Results as
reported GAAP earnings before items impacting comparability.
The following table reconciles National Fuel's reported GAAP
earnings to Adjusted Operating Results for the three and twelve
months ended September 30, 2020 and 2019:
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
(in thousands except per share
amounts) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Reported GAAP Earnings |
$ |
(145,545 |
) |
|
$ |
47,281 |
|
|
$ |
(123,772 |
) |
|
$ |
304,290 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
Impairment of oil and gas properties (E&P) |
253,441 |
|
|
— |
|
|
449,438 |
|
|
— |
|
Tax impact of impairment of oil and gas properties |
(69,698 |
) |
|
— |
|
|
(123,187 |
) |
|
— |
|
Deferred tax valuation allowance as of March 31, 2020 |
— |
|
|
— |
|
|
56,770 |
|
|
— |
|
Remeasurement of deferred income taxes under 2017 Tax Reform |
— |
|
|
— |
|
|
— |
|
|
(5,000 |
) |
Mark-to-market adjustments due to hedge ineffectiveness
(E&P) |
— |
|
|
(1,313 |
) |
|
— |
|
|
(2,096 |
) |
Tax impact of mark-to-market adjustments due to hedge
ineffectiveness |
— |
|
|
276 |
|
|
— |
|
|
440 |
|
Unrealized (gain) loss on other investments (Corporate/All
Other) |
(2,439 |
) |
|
949 |
|
|
(1,645 |
) |
|
2,045 |
|
Tax impact of unrealized (gain) loss on other investments |
512 |
|
|
(199 |
) |
|
345 |
|
|
(429 |
) |
Adjusted Operating
Results |
$ |
36,271 |
|
|
$ |
46,994 |
|
|
$ |
257,949 |
|
|
$ |
299,250 |
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
per share |
$ |
(1.60 |
) |
|
$ |
0.54 |
|
|
$ |
(1.41 |
) |
|
$ |
3.51 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
Impairment of oil and gas properties, net of tax (E&P) |
2.02 |
|
|
— |
|
|
3.71 |
|
|
— |
|
Deferred tax valuation allowance as March 31, 2020 |
— |
|
|
— |
|
|
0.65 |
|
|
— |
|
Remeasurement of deferred income taxes under 2017 Tax Reform |
— |
|
|
— |
|
|
— |
|
|
(0.06 |
) |
Mark-to-market adjustments due to hedge ineffectiveness, net of tax
(E&P) |
— |
|
|
(0.01 |
) |
|
— |
|
|
(0.02 |
) |
Unrealized (gain) loss on other investments, net of tax
(Corporate/All Other) |
(0.02 |
) |
|
0.01 |
|
|
(0.01 |
) |
|
0.02 |
|
Earnings per share impact of diluted shares |
— |
|
|
— |
|
|
(0.02 |
) |
|
— |
|
Adjusted Operating
Results Per Share |
$ |
0.40 |
|
|
$ |
0.54 |
|
|
$ |
2.92 |
|
|
$ |
3.45 |
|
Management defines Adjusted EBITDA as reported
GAAP earnings before the following items: interest expense,
income taxes, depreciation, depletion and amortization, other
income and deductions, impairments, and other items reflected in
operating income that impact comparability. The following
tables reconcile National Fuel's reported GAAP earnings to Adjusted
EBITDA for the three and twelve months ended September 30, 2020 and
2019:
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
(in thousands) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Reported GAAP Earnings |
$ |
(145,545 |
) |
|
$ |
47,281 |
|
|
$ |
(123,772 |
) |
|
$ |
304,290 |
|
Depreciation, Depletion and Amortization |
80,097 |
|
|
74,670 |
|
|
306,158 |
|
|
275,660 |
|
Other (Income) Deductions |
(159 |
) |
|
(1,435 |
) |
|
17,814 |
|
|
15,542 |
|
Interest Expense |
34,361 |
|
|
26,679 |
|
|
117,077 |
|
|
106,756 |
|
Income Taxes |
(62,636 |
) |
|
11,415 |
|
|
18,739 |
|
|
85,221 |
|
Mark-to-Market Adjustments due to Hedge Ineffectiveness |
— |
|
|
(1,313 |
) |
|
— |
|
|
(2,096 |
) |
Impairment of Oil and Gas Producing Properties |
253,441 |
|
|
— |
|
|
449,438 |
|
|
— |
|
Adjusted
EBITDA |
$ |
159,559 |
|
|
$ |
157,297 |
|
|
$ |
785,454 |
|
|
$ |
785,373 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Segment |
|
|
|
|
|
|
|
Pipeline and Storage Adjusted
EBITDA |
$ |
46,966 |
|
|
$ |
35,747 |
|
|
$ |
189,520 |
|
|
$ |
162,181 |
|
Gathering Adjusted EBITDA |
33,062 |
|
|
29,895 |
|
|
119,879 |
|
|
108,292 |
|
Total Midstream Businesses
Adjusted EBITDA |
80,028 |
|
|
65,642 |
|
|
309,399 |
|
|
270,473 |
|
Exploration and Production
Adjusted EBITDA |
75,439 |
|
|
89,509 |
|
|
312,166 |
|
|
351,159 |
|
Utility Adjusted EBITDA |
8,550 |
|
|
6,714 |
|
|
171,418 |
|
|
176,134 |
|
Corporate and All Other
Adjusted EBITDA |
(4,458 |
) |
|
(4,568 |
) |
|
(7,529 |
) |
|
(12,393 |
) |
Total Adjusted
EBITDA |
$ |
159,559 |
|
|
$ |
157,297 |
|
|
$ |
785,454 |
|
|
$ |
785,373 |
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
NON-GAAP FINANCIAL MEASURES |
SEGMENT ADJUSTED EBITDA |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, |
|
September 30, |
(in thousands) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Exploration and
Production Segment |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
(169,171 |
) |
|
$ |
25,208 |
|
|
$ |
(326,904 |
) |
|
$ |
111,807 |
|
Depreciation, Depletion and Amortization |
43,467 |
|
|
44,141 |
|
|
172,124 |
|
|
154,784 |
|
Other (Income) Deductions |
280 |
|
|
(269 |
) |
|
882 |
|
|
(1,091 |
) |
Interest Expense |
15,555 |
|
|
14,216 |
|
|
58,098 |
|
|
54,777 |
|
Income Taxes |
(68,133 |
) |
|
7,526 |
|
|
(41,472 |
) |
|
32,978 |
|
Mark-to-Market Adjustments due to Hedge Ineffectiveness |
— |
|
|
(1,313 |
) |
|
— |
|
|
(2,096 |
) |
Impairment of Oil and Gas Producing Properties |
253,441 |
|
|
— |
|
|
449,438 |
|
|
— |
|
Adjusted EBITDA |
$ |
75,439 |
|
|
$ |
89,509 |
|
|
$ |
312,166 |
|
|
$ |
351,159 |
|
|
|
|
|
|
|
|
|
Pipeline and Storage
Segment |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
16,045 |
|
|
$ |
15,368 |
|
|
$ |
78,860 |
|
|
$ |
74,011 |
|
Depreciation, Depletion and Amortization |
14,638 |
|
|
11,387 |
|
|
53,951 |
|
|
44,947 |
|
Other (Income) Deductions |
(307 |
) |
|
(2,812 |
) |
|
(4,635 |
) |
|
(9,157 |
) |
Interest Expense |
10,695 |
|
|
7,132 |
|
|
32,731 |
|
|
29,142 |
|
Income Taxes |
5,895 |
|
|
4,672 |
|
|
28,613 |
|
|
23,238 |
|
Adjusted EBITDA |
$ |
46,966 |
|
|
$ |
35,747 |
|
|
$ |
189,520 |
|
|
$ |
162,181 |
|
|
|
|
|
|
|
|
|
Gathering
Segment |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
17,550 |
|
|
$ |
16,902 |
|
|
$ |
68,631 |
|
|
$ |
58,413 |
|
Depreciation, Depletion and Amortization |
6,785 |
|
|
5,202 |
|
|
22,440 |
|
|
20,038 |
|
Other (Income) Deductions |
(275 |
) |
|
(56 |
) |
|
(260 |
) |
|
(460 |
) |
Interest Expense |
4,115 |
|
|
2,397 |
|
|
10,877 |
|
|
9,406 |
|
Income Taxes |
4,887 |
|
|
5,450 |
|
|
18,191 |
|
|
20,895 |
|
Adjusted EBITDA |
$ |
33,062 |
|
|
$ |
29,895 |
|
|
$ |
119,879 |
|
|
$ |
108,292 |
|
|
|
|
|
|
|
|
|
Utility
Segment |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
(6,969 |
) |
|
$ |
(7,728 |
) |
|
$ |
57,366 |
|
|
$ |
60,871 |
|
Depreciation, Depletion and Amortization |
14,007 |
|
|
13,630 |
|
|
55,248 |
|
|
53,832 |
|
Other (Income) Deductions |
1,412 |
|
|
1,170 |
|
|
23,380 |
|
|
24,021 |
|
Interest Expense |
5,720 |
|
|
5,492 |
|
|
22,150 |
|
|
23,443 |
|
Income Taxes |
(5,620 |
) |
|
(5,850 |
) |
|
13,274 |
|
|
13,967 |
|
Adjusted EBITDA |
$ |
8,550 |
|
|
$ |
6,714 |
|
|
$ |
171,418 |
|
|
$ |
176,134 |
|
|
|
|
|
|
|
|
|
Corporate and All
Other |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
(3,000 |
) |
|
$ |
(2,469 |
) |
|
$ |
(1,725 |
) |
|
$ |
(812 |
) |
Depreciation, Depletion and Amortization |
1,200 |
|
|
310 |
|
|
2,395 |
|
|
2,059 |
|
Other (Income) Deductions |
(1,269 |
) |
|
532 |
|
|
(1,553 |
) |
|
2,229 |
|
Interest Expense |
(1,724 |
) |
|
(2,558 |
) |
|
(6,779 |
) |
|
(10,012 |
) |
Income Taxes |
335 |
|
|
(383 |
) |
|
133 |
|
|
(5,857 |
) |
Adjusted EBITDA |
$ |
(4,458 |
) |
|
$ |
(4,568 |
) |
|
$ |
(7,529 |
) |
|
$ |
(12,393 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management defines free cash flow as funds from operations less
capital expenditures. The Company is unable to provide a
reconciliation of projected free cash flow as described in this
release to its comparable financial measure calculated in
accordance with GAAP without unreasonable efforts. This is due to
our inability to calculate the comparable GAAP projected metrics,
including operating income and total production costs, given the
unknown effect, timing, and potential significance of certain
income statement items.
Analyst Contact:
Kenneth E. Webster
716-857-7067
Media Contact:
Karen L. Merkel
716-857-7654
National Fuel Gas (NYSE:NFG)
Historical Stock Chart
From Aug 2024 to Sep 2024
National Fuel Gas (NYSE:NFG)
Historical Stock Chart
From Sep 2023 to Sep 2024