WILLIAMSVILLE, N.Y., May 05, 2022 (GLOBE
NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the
“Company”) (NYSE:NFG) today announced consolidated results for the
second quarter of its 2022 fiscal year and for the six months ended
March 31, 2022.
FISCAL 2022 SECOND QUARTER
SUMMARY
- GAAP net income of
$167.3 million, or $1.82 per share, compared to GAAP net income of
$112.4 million, or $1.23 per share, in the prior year, an increase
of 48% per share.
- Adjusted operating
results of $154.4 million, or $1.68 per share, an increase of 25%,
compared to $1.34 per share, in the prior year (see non-GAAP
reconciliation on page 2).
- Adjusted EBITDA of
$337.6 million, an increase of 13%, compared to $298.4 million in
the prior year (see non-GAAP reconciliation on page 24).
- Published inaugural
Climate Report in March 2022, which further aligns the Company's
climate-risk disclosures with the Task Force on Climate-Related
Financial Disclosures framework, and evaluates the resilience of
our operations to potential risks associated with climate change,
including a less than 2-degree Celsius scenario.
- Achieved
certification under Project Canary's TrustWell™ responsibly
sourced gas program with Platinum or Gold ratings for all 121 wells
included in pilot, which combined, produce approximately 300
million cubic feet per day, or approximately 30%, of the Company's
Appalachian production. This accreditation is in addition to the
prior certification of 100% of the Company's Appalachian production
as responsibly sourced under Equitable Origin's
EO100™ Standard for Responsible Energy Development.
- Company is
increasing its fiscal 2022 earnings guidance to a range of $5.70 to
$6.00 per share, an increase of $0.50 per share at the midpoint,
excluding items impacting comparability (see Guidance Summary on
page 8).
MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive
Officer of National Fuel Gas Company, stated: “National Fuel had a
strong second quarter, with adjusted operating results increasing
25% compared to the prior year. Led by continued Appalachian
natural gas production growth and higher commodity prices at our
non-regulated businesses, earnings improved across all segments.
With Supply Corporation’s FM100 project in service and Seneca fully
utilizing its expanded firm transportation portfolio, we have
reached an inflection point where we now anticipate generating
meaningful free cash flow into the future. We expect to use that
free cash flow to reduce leverage on our balance sheet and pursue
shareholder value-enhancing opportunities to deploy capital across
the system.”
DIVESTITURE OF CALIFORNIA
PROPERTIES
On May 1, 2022, the Company entered into a
purchase and sale agreement to sell Seneca’s California oil and gas
assets to Sentinel Peak Resources California LLC for total
consideration between $280 million and $310 million, depending on
oil prices. This consideration consists of $280 million in cash at
closing, plus up to three annual contingent payments between
calendar 2023 and 2025 that can total $30 million in aggregate. The
value of these contingent payments is $1 million for each dollar
that Brent crude oil prices average over $95 per barrel in each
respective year, with a maximum of $10 million in any given year.
The transaction has an effective date of April 1, 2022 and is
expected to close on June 30, 2022, subject to customary closing
conditions (including waivers of certain transfer
restrictions).
Mr. Bauer added: “Our California operations and
the team supporting them have been a terrific asset to Seneca over
the three-plus decades that we have owned them, generating
substantial free cash that supported our significant investment in
the Appalachian Basin. However, given the strength of commodity
prices, and the continued growth of Seneca’s Appalachian position,
the timing was right to pursue a sale. Proceeds from this
transaction will help accelerate our deleveraging efforts and
provide us additional financial flexibility in the near-term.”
Kirkland & Ellis LLP served as the legal
advisor to National Fuel. Lazard Capital served as financial
advisor in connection with the transaction.
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING
RESULTS
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
March 31, |
|
March 31, |
(in thousands except per share amounts) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Reported GAAP
Earnings |
|
$ |
167,328 |
|
|
$ |
112,436 |
|
|
$ |
299,720 |
|
|
$ |
190,210 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Reduction of other post-retirement regulatory liability
(Utility) |
|
|
(18,533 |
) |
|
|
— |
|
|
|
(18,533 |
) |
|
|
— |
|
Tax impact of reduction of other post-retirement regulatory
liability |
|
|
3,892 |
|
|
|
— |
|
|
|
3,892 |
|
|
|
— |
|
Impairment of oil and gas properties (E&P) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,152 |
|
Tax impact of impairment of oil and gas properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(20,980 |
) |
Gain on sale of timber properties (Corporate / All Other) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51,066 |
) |
Tax impact of gain on sale of timber properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,069 |
|
Premium paid on early redemption of debt |
|
|
— |
|
|
|
15,715 |
|
|
|
— |
|
|
|
15,715 |
|
Tax impact of premium paid on early redemption of debt |
|
|
— |
|
|
|
(4,321 |
) |
|
|
— |
|
|
|
(4,321 |
) |
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
|
2,170 |
|
|
|
(848 |
) |
|
|
6,659 |
|
|
|
450 |
|
Tax impact of unrealized (gain) loss on other investments |
|
|
(456 |
) |
|
|
178 |
|
|
|
(1,398 |
) |
|
|
(94 |
) |
Adjusted Operating
Results |
|
$ |
154,401 |
|
|
$ |
123,160 |
|
|
$ |
290,340 |
|
|
$ |
220,135 |
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
|
$ |
1.82 |
|
|
$ |
1.23 |
|
|
$ |
3.26 |
|
|
$ |
2.08 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Reduction of other post-retirement regulatory liability, net of tax
(Utility) |
|
|
(0.16 |
) |
|
|
— |
|
|
|
(0.16 |
) |
|
|
— |
|
Impairment of oil and gas properties, net of tax (E&P) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.60 |
|
Gain on sale of timber properties, net of tax (Corporate / All
Other) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.40 |
) |
Premium paid on early redemption of debt, net of tax |
|
|
— |
|
|
|
0.12 |
|
|
|
— |
|
|
|
0.12 |
|
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
|
|
0.02 |
|
|
|
(0.01 |
) |
|
|
0.05 |
|
|
|
— |
|
Adjusted Operating
Results Per Share |
|
$ |
1.68 |
|
|
$ |
1.34 |
|
|
$ |
3.15 |
|
|
$ |
2.40 |
|
FISCAL 2022 GUIDANCE UPDATE
National Fuel is revising its fiscal 2022
earnings guidance range and is now projecting earnings, excluding
items impacting comparability, will be within the range of $5.70 to
$6.00 per share, an increase of $0.50 per share from the midpoint
of the Company’s prior guidance range. This updated range reflects
the results of the second quarter, along with updated assumptions
for the balance of the year, which have been adjusted to exclude
Seneca’s California operations as of June 30, 2022 in conjunction
with the expected closing date of its divestiture.
The Company is now assuming that NYMEX natural
gas prices will average $7.25 per MMBtu for the remainder of fiscal
2022, a $2.75 increase per MMBtu from the $4.50 per MMBtu assumed
in the previous guidance. Additionally, the Company is now
projecting that WTI oil prices will average $100.00 per Bbl for the
remainder of the year, a $20.00 increase from the $80.00 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.
The Exploration and Production segment’s fiscal
2022 net production is now expected to be in the range of 340 to
360 Bcfe, a 2.5 Bcfe reduction at the midpoint. However, this
revised range reflects the loss of approximately 4 Bcfe of
production related to the sale of Seneca’s California properties.
Seneca currently has firm sales contracts in place for
approximately 90% of its projected remaining fiscal 2022
Appalachian production, limiting its exposure to in-basin markets.
Approximately 83% of expected remaining Appalachian production is
either matched by a financial hedge or was entered into at a fixed
price.
As a result of the expected divestiture of its
California operations, Seneca has revised its unit costs to reflect
the removal of higher cost oil production, when compared to its
Appalachian operations. Lease Operating Expense (“LOE”) has been
revised lower, now expected to be within the range of $0.78 to
$0.80 per Mcfe. Depreciation, Depletion and Amortization
(“DD&A”) was revised to a range of $0.58 to $0.60 per Mcfe.
Also, General & Administrative ("G&A”) expense has been
reduced to a range of $0.19 to $0.20 per Mcfe, which excludes any
potential transaction costs associated with sale of the California
operations.
The Company’s consolidated capital expenditures
are now expected to be in the range of $725 to $870 million, a
$60.0 million, or 8%, increase from the midpoint of previous
guidance. The $50 million increase at the midpoint in the
Exploration and Production segment is largely related to a planned
acceleration of completions activity this summer, including
utilizing our spot crew on two Tioga County Utica pads sooner than
previously forecasted. Increased production resulting from this
acceleration is expected to commence later this fiscal year and
ramp up in the following quarters, maximizing production for the
upcoming winter. Additionally, Seneca continues to experience
modest inflation above previous expectations. Lastly, the Utility
segment is expecting increased spending during the upcoming
construction season as part of its ongoing modernization program
focused on replacing aging infrastructure and reducing our emission
profile.
Additional details on the Company's updated
forecast assumptions and business segment guidance for fiscal 2022
are outlined in the table on page 8.
DISCUSSION OF SECOND QUARTER RESULTS BY
SEGMENT
The following earnings discussion of each
operating segment for the quarter ended March 31, 2022 is
summarized in a tabular form on pages 9 and 10 of this report
(earnings drivers for the six months ended March 31, 2022 are
summarized on pages 11 and 12). It may be helpful to refer to those
tables while reviewing this discussion.
Note that management defines Adjusted Operating
Results as reported GAAP earnings adjusted for items impacting
comparability, and Adjusted EBITDA as reported GAAP earnings before
the following items: interest expense, income taxes, depreciation,
depletion and amortization, other income and deductions,
impairments, and other items reflected in operating income that
impact comparability.
Upstream Business
Exploration and Production Segment
The Exploration and Production segment
operations are carried out by Seneca Resources Company, LLC
("Seneca"). Seneca explores for, develops and produces natural gas
and oil reserves, primarily in Pennsylvania and California.
|
Three Months Ended |
|
March 31, |
(in thousands) |
|
2022 |
|
|
2021 |
|
Variance |
GAAP Earnings |
$ |
71,121 |
|
$ |
36,822 |
|
$ |
34,299 |
|
Premium paid on early
redemption of debt, net of tax |
|
— |
|
|
10,710 |
|
|
(10,710 |
) |
Adjusted Operating
Results |
$ |
71,121 |
|
$ |
47,532 |
|
$ |
23,589 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
158,450 |
|
$ |
127,146 |
|
$ |
31,304 |
|
Seneca’s second quarter GAAP earnings increased
$34.3 million versus the prior year. Excluding a $10.7 million
(after-tax) loss on the early redemption of long-term debt recorded
in the prior year's second quarter, Seneca’s earnings increased
$23.6 million primarily due to higher realized natural gas and
crude oil prices and higher natural gas production, as well as
higher other operating revenues and lower interest expense,
partially offset by higher operating expenses.
Seneca produced 87.1 Bcfe during the second
quarter, an increase of 1.9 Bcfe, or 2%, from the prior year. This
is a result of a 2.1 Bcf increase in natural gas production
primarily due to growth from Seneca's two-rig development program
in Appalachia. Seneca's crude oil production in California
decreased 39 MBbls, or 7%, versus the prior year due to natural
production declines.
Seneca's average realized natural gas price,
after the impact of hedging and transportation costs, was $2.60 per
Mcf, an increase of $0.32 per Mcf from the prior year. This
increase was primarily due to higher NYMEX prices and higher spot
prices at local sales points in Pennsylvania. Seneca's average
realized oil price, after the impact of hedging, was $70.45 per
Bbl, an increase of $13.34 per Bbl compared to the prior year.
Seneca’s increase in other operating revenues of
$4.7 million was primarily attributable to a temporary release of
capacity on Leidy South through March 2022.
Lease operating and transportation (“LOE”)
expense increased $5.5 million primarily due to higher steam fuel
costs as a result of higher natural gas prices, along with higher
well repairs and workover activity in California. Depreciation,
depletion and amortization ("DD&A") expense increased $4.4
million due to higher natural gas production and a higher per unit
DD&A rate, which was driven by an increase in capitalized costs
in Seneca's full cost pool. Seneca's other operating expenses
increased $2.1 million due primarily to higher consulting and
technology-related expenses, and an increase in operating costs
from additional water treatment plants acquired in September 2021.
As a result of the recent increase in natural gas prices, other
taxes increased $2.4 million primarily due to a higher expected
Impact Fee in Pennsylvania (the Impact Fees are calculated annually
based on calendar year NYMEX natural gas prices).
Excluding the premium paid on the early
redemption of debt noted above, interest expense decreased $3.2
million due primarily to a decrease in outstanding principal
balances associated with Seneca's long-term intercompany borrowings
coupled with a lower weighted average interest rate as a result of
the Company's issuance of a 2.95% coupon 10-year note in February
2021, which re-financed a 4.9% coupon 10-year note that was
redeemed in March 2021.
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 |
|
March 31, |
(in thousands) |
2022 |
|
2021 |
|
Variance |
GAAP Earnings |
$ |
25,470 |
|
$ |
24,928 |
|
$ |
542 |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
61,371 |
|
$ |
58,570 |
|
$ |
2,801 |
The Pipeline and Storage segment’s second
quarter GAAP earnings increased $0.5 million versus the prior year
primarily due to an increase in operating revenues, partially
offset by higher operation and maintenance ("O&M") expense and
higher DD&A expense. The increase in operating revenues of $8.7
million was primarily attributable to higher transportation
revenues from new demand charges for service on the expansion
component of Supply Corporation's FM100 Project, which was placed
in service in December 2021. O&M expense increased $4.7 million
primarily due to the non-recurrence of a $3.9 million favorable
adjustment to the reserve for project development costs recorded in
last year's second quarter. Higher pipeline integrity and vehicle
fuel costs also contributed to the increase in O&M expense. The
increase in DD&A expense of $1.6 million was primarily
attributable to incremental depreciation expense from the FM100
Project.
Gathering Segment
The Gathering segment’s operations are carried
out by National Fuel Gas Midstream Company, LLC’s limited liability
companies. The Gathering segment constructs, owns and operates
natural gas gathering pipelines and compression facilities in the
Appalachian region, which primarily delivers Seneca’s gross
Appalachian production to the interstate pipeline system.
|
Three Months Ended |
|
March 31, |
(in thousands) |
2022 |
|
2021 |
|
Variance |
GAAP Earnings |
$ |
22,092 |
|
$ |
20,700 |
|
$ |
1,392 |
|
Premium paid on early
redemption of debt, net of tax |
|
— |
|
|
684 |
|
|
(684 |
) |
Adjusted Operating
Results |
$ |
22,092 |
|
$ |
21,384 |
|
$ |
708 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
43,056 |
|
$ |
41,424 |
|
$ |
1,632 |
|
The Gathering segment’s second quarter GAAP
earnings increased $1.4 million versus the prior year. Excluding a
$0.7 million (after-tax) loss on the early redemption of long-term
debt recorded in the prior year's second quarter, the Gathering
segment's earnings increased $0.7 million. The earnings increase
was primarily driven by higher operating revenues, which was
partially offset by higher O&M expense. Operating revenues
increased $2.3 million, or 5%, primarily driven by an 8.6 Bcf
increase in gathered volumes for a non-affiliated natural gas
producer in Appalachia. The increase in O&M expense of $0.7
million was primarily due to higher compressor station operating
and preventative maintenance activity during the quarter.
Downstream Business
Utility Segment
The Utility segment operations are carried out
by National Fuel Gas Distribution Corporation (“Distribution”),
which sells or transports natural gas to customers located in
western New York and northwestern Pennsylvania.
|
Three Months Ended |
|
March 31, |
(in thousands) |
2022 |
|
2021 |
|
Variance |
GAAP Earnings |
$ |
53,048 |
|
|
$ |
32,044 |
|
$ |
21,004 |
|
Reduction of other
post-retirement regulatory liability, net of tax |
|
(14,641 |
) |
|
|
— |
|
|
(14,641 |
) |
Adjusted Operating
Results |
$ |
38,407 |
|
|
$ |
32,044 |
|
$ |
6,363 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
77,529 |
|
|
$ |
73,885 |
|
$ |
3,644 |
|
The Utility segment’s second quarter GAAP
earnings increased $21.0 million versus the prior year. In February
2022, the Pennsylvania Public Utilities Commission concluded a
regulatory proceeding that addressed Distribution’s recovery of
other post-employment benefit (“OPEB”) expenses. As a result of
that proceeding, Distribution recorded an adjustment to an
OPEB-related regulatory liability that benefitted earnings by $18.5
million ($14.6 million after-tax) and agreed to reduce its base
rates in Pennsylvania to eliminate the recovery of OPEB expenses
effective October 1, 2021.
Excluding the impact of the reduction in the
OPEB regulatory liability, the Utility segment's second quarter
earnings increased $6.4 million primarily due to higher customer
margin (operating revenues less purchased gas sold) and a decrease
in non-service post-retirement benefit costs recorded in other
income (deductions). The increase in customer margin was due
primarily to increased customer usage, largely attributable to
colder weather in Distribution's Pennsylvania territory
(Pennsylvania was 8% colder on average than last year), combined
with higher revenues from the Company's system modernization
tracking mechanism in its New York service territory. These factors
were partially offset by the aforementioned reduction in base rates
in Pennsylvania. The impact of weather variations on earnings in
Distribution's New York service territory is largely mitigated by
that jurisdiction's weather normalization clause. With the
elimination of OPEB expenses in customer rates, there was a
decrease in non-service post-retirement benefit costs recorded in
other income (deductions). Distribution’s Pennsylvania service
territory recognized OPEB income during the second quarter of
fiscal 2022 whereas in the prior year’s second quarter it
recognized OPEB expenses to match against the OPEB amounts
collected in base rates.
Corporate and All Other
The Company’s operations that are included in
Corporate and All Other generated a combined net loss of $4.4
million in the current year second quarter, which was a $2.3
million higher than the combined net loss of $2.1 million in the
prior-year second quarter. The increase in net loss was primarily
driven by unrealized losses on investment securities recognized in
the current quarter compared to unrealized gains on investment
securities in the prior-year second quarter.
EARNINGS TELECONFERENCE
The Company will host a conference call on
Friday, May 6, 2022, at 11 a.m. Eastern Time to discuss this
announcement. Pre-registration is required to access the
teleconference by phone in a listen-only mode by following this
link: http://www.directeventreg.com/registration/event/4564187.
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 at
416-621-4642 or 800-585-8367 using conference ID number “4564187”.
Both the webcast and conference call replay will be available until
the close of business on Friday, May 13, 2022.
National Fuel is an integrated energy company
reporting financial results for four operating segments:
Exploration and Production, Pipeline and Storage, Gathering, and
Utility. Additional information about National Fuel is available at
www.nationalfuelgas.com.
Certain statements contained herein, including
statements identified by the use of the words “anticipates,”
“estimates,” “expects,” “forecasts,” “intends,” “plans,”
“predicts,” “projects,” “believes,” “seeks,” “will,” “may” and
similar expressions, and statements which are other than statements
of historical facts, are “forward-looking statements” as defined by
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, which
could cause actual results or outcomes to differ materially from
those expressed in the forward-looking statements. The Company’s
expectations, beliefs and projections contained herein are
expressed in good faith and are believed to have a reasonable
basis, but there can be no assurance that such expectations,
beliefs or projections will result or be achieved or accomplished.
In addition to other factors, the following are important factors
that could cause actual results to differ materially from those
discussed in the forward-looking statements: changes in laws,
regulations or judicial interpretations to which the Company is
subject, including those involving derivatives, taxes, safety,
employment, climate change, other environmental matters, real
property, and exploration and production activities such as
hydraulic fracturing; governmental/regulatory actions, initiatives
and proceedings, including those involving rate cases (which
address, among other things, target rates of return, rate design,
retained natural gas and system modernization),
environmental/safety requirements, affiliate relationships,
industry structure, and franchise renewal; the Company’s ability to
estimate accurately the time and resources necessary to meet
emissions targets; governmental/regulatory actions and/or market
pressures to reduce or eliminate reliance on natural gas; the
length and severity of the ongoing COVID-19 pandemic, including its
impacts across our businesses on demand, operations, global supply
chains and liquidity; changes in economic conditions, including
inflationary pressures and global, national or regional recessions,
and their effect on the demand for, and customers’ ability to pay
for, the Company’s products and services; changes in the price of
natural gas or oil; the creditworthiness or performance of the
Company’s key suppliers, customers and counterparties; financial
and economic conditions, including the availability of credit, and
occurrences affecting the Company’s ability to obtain financing on
acceptable terms for working capital, capital expenditures and
other investments, including any downgrades in the Company’s credit
ratings and changes in interest rates and other capital market
conditions; impairments under the SEC’s full cost ceiling test for
natural gas and oil reserves; increased costs or delays or changes
in plans with respect to Company projects or related projects of
other companies, including disruptions due to the COVID-19
pandemic, as well as difficulties or delays in obtaining necessary
governmental approvals, permits or orders or in obtaining the
cooperation of interconnecting facility operators; the Company's
ability to complete planned strategic transactions; the Company's
ability to successfully integrate acquired assets and achieve
expected cost synergies; changes in price differentials between
similar quantities of natural gas 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; negotiations with the
collective bargaining units representing the Company's workforce,
including potential work stoppages during negotiations; 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 COMPANY
AND SUBSIDIARIES
GUIDANCE SUMMARY
As discussed on page 2, the Company is revising
its earnings guidance for fiscal 2022. Additional details on the
Company's forecast assumptions and business segment guidance are
outlined in the table below.
The revised earnings guidance range does not
include the impact of certain items that impacted the comparability
of earnings during the six months ended March 31, 2022, including:
(1) the after-tax reduction of an other post-retirement regulatory
liability, which increased earnings by $0.16 per share; and (2)
after-tax unrealized losses on other investments, which reduced
earnings by $0.05 per share. While the Company expects to record
certain adjustments to unrealized gain or loss on investments
during the six months ending September 30, 2022, the amounts of
these and other potential adjustments are not reasonably
determinable at this time. As such, the Company is unable to
provide earnings guidance other than on a non-GAAP basis.
|
Updated FY 2022 Guidance |
|
Previous FY 2022 Guidance |
Consolidated Earnings
per Share, excluding items impacting comparability |
$5.70 to $6.00 |
|
$5.20 to $5.50 |
Consolidated Effective
Tax Rate |
~ 25-26% |
|
~ 25-26% |
|
|
|
|
Capital
Expenditures(Millions) |
|
|
|
Exploration and Production |
$475 - $550 |
|
$425 - $500 |
Pipeline and Storage |
$100 - $150 |
|
$100 - $150 |
Gathering |
$50 - $60 |
|
$50 - $60 |
Utility |
$100 - $110 |
|
$90 - $100 |
Consolidated Capital Expenditures |
$725 - $870 |
|
$665 - $810 |
|
|
|
|
Exploration &
Production Segment Guidance* |
|
|
|
|
|
|
|
Commodity Price Assumptions |
|
|
|
NYMEX natural gas price |
$7.25 /MMBtu |
|
$4.50 /MMBtu |
Appalachian basin spot price |
$6.25 /MMBtu |
|
$3.65 /MMBtu |
NYMEX (WTI) crude oil price |
$100.00 /Bbl |
|
$80.00 /Bbl |
California oil price premium (% of WTI) |
99% |
|
97% |
|
|
|
|
Production (Bcfe) |
340 to 360 |
|
340 to 365 |
|
|
|
|
E&P Operating Costs($/Mcfe) |
|
|
|
LOE |
$0.78 - $0.80 |
|
$0.81 - $0.84 |
G&A |
$0.19 - $0.20 |
|
$0.19 - $0.21 |
DD&A |
$0.58 - $0.60 |
|
$0.59 - $0.62 |
|
|
|
|
Other Business Segment
Guidance(Millions) |
|
|
|
Gathering Segment Revenues |
$205 - $225 |
|
$200 - $225 |
Pipeline and Storage Segment Revenues |
$360 - $380 |
|
$360 - $380 |
* Commodity price assumptions are for the
remaining 6 months of the fiscal year.
|
|
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
QUARTER ENDED MARCH 31, 2022 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter 2021 GAAP earnings |
$ |
36,822 |
|
|
$ |
24,928 |
|
|
$ |
20,700 |
|
|
$ |
32,044 |
|
|
$ |
(2,058 |
) |
|
$ |
112,436 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Premium paid on early
redemption of debt |
|
14,772 |
|
|
|
|
|
943 |
|
|
|
|
|
|
|
15,715 |
|
Tax impact of premium paid on
early redemption of debt |
|
(4,062 |
) |
|
|
|
|
(259 |
) |
|
|
|
|
|
|
(4,321 |
) |
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
|
(848 |
) |
|
|
(848 |
) |
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
|
178 |
|
|
|
178 |
|
Second quarter 2021
adjusted operating results |
|
47,532 |
|
|
|
24,928 |
|
|
|
21,384 |
|
|
|
32,044 |
|
|
|
(2,728 |
) |
|
|
123,160 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
3,758 |
|
|
|
|
|
|
|
|
|
|
|
3,758 |
|
Higher (lower) crude oil
production |
|
(1,755 |
) |
|
|
|
|
|
|
|
|
|
|
(1,755 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
21,487 |
|
|
|
|
|
|
|
|
|
|
|
21,487 |
|
Higher (lower) realized crude
oil prices, after hedging |
|
5,508 |
|
|
|
|
|
|
|
|
|
|
|
5,508 |
|
Higher (lower) other operating
revenues |
|
3,713 |
|
|
|
|
|
|
|
|
|
|
|
3,713 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
6,257 |
|
|
|
1,850 |
|
|
|
|
|
|
|
8,107 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
3,014 |
|
|
|
|
|
3,014 |
|
Impact of new rates |
|
|
|
|
|
|
|
(3,055 |
) |
|
|
|
|
(3,055 |
) |
System modernization tracker
revenues |
|
|
|
|
|
|
|
1,594 |
|
|
|
|
|
1,594 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(4,377 |
) |
|
|
|
|
|
|
|
|
|
|
(4,377 |
) |
Lower (higher) operating
expenses |
|
(1,690 |
) |
|
|
(3,729 |
) |
|
|
(567 |
) |
|
|
|
|
|
|
(5,986 |
) |
Lower (higher) property,
franchise and other taxes |
|
(1,913 |
) |
|
|
(315 |
) |
|
|
|
|
|
|
|
|
(2,228 |
) |
Lower (higher) depreciation /
depletion |
|
(3,482 |
) |
|
|
(1,236 |
) |
|
|
|
|
|
|
|
|
(4,718 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
|
|
|
|
|
|
5,197 |
|
|
|
(968 |
) |
|
|
4,229 |
|
(Higher) lower interest
expense |
|
2,563 |
|
|
|
|
|
|
|
|
|
|
|
2,563 |
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
(307 |
) |
|
|
(171 |
) |
|
|
(508 |
) |
|
|
(1,164 |
) |
|
|
1,201 |
|
|
|
(949 |
) |
All other / rounding |
|
84 |
|
|
|
(264 |
) |
|
|
(67 |
) |
|
|
777 |
|
|
|
(194 |
) |
|
|
336 |
|
Second quarter 2022
adjusted operating results |
|
71,121 |
|
|
|
25,470 |
|
|
|
22,092 |
|
|
|
38,407 |
|
|
|
(2,689 |
) |
|
|
154,401 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Reduction of other
post-retirement regulatory liability |
|
|
|
|
|
|
|
18,533 |
|
|
|
|
|
18,533 |
|
Tax impact of reduction of
other post-retirement regulatory liability |
|
|
|
|
|
|
|
(3,892 |
) |
|
|
|
|
(3,892 |
) |
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
(2,170 |
) |
|
|
(2,170 |
) |
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
456 |
|
|
|
456 |
|
Second quarter 2022
GAAP earnings |
$ |
71,121 |
|
|
$ |
25,470 |
|
|
$ |
22,092 |
|
|
$ |
53,048 |
|
|
$ |
(4,403 |
) |
|
$ |
167,328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect
intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
|
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
QUARTER ENDED MARCH 31, 2022 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter 2021 GAAP earnings per share |
$ |
0.40 |
|
|
$ |
0.27 |
|
|
$ |
0.23 |
|
|
$ |
0.35 |
|
|
$ |
(0.02 |
) |
|
$ |
1.23 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Premium paid on early
redemption of debt, net of tax |
|
0.12 |
|
|
|
|
|
— |
|
|
|
|
|
|
|
0.12 |
|
Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Second quarter 2021
adjusted operating results per share |
|
0.52 |
|
|
|
0.27 |
|
|
|
0.23 |
|
|
|
0.35 |
|
|
|
(0.03 |
) |
|
|
1.34 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
0.04 |
|
Higher (lower) crude oil
production |
|
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
(0.02 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
0.23 |
|
|
|
|
|
|
|
|
|
|
|
0.23 |
|
Higher (lower) realized crude
oil prices, after hedging |
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
0.06 |
|
Higher (lower) other operating
revenues |
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
0.04 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
0.07 |
|
|
|
0.02 |
|
|
|
|
|
|
|
0.09 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
0.03 |
|
|
|
|
|
0.03 |
|
Impact of new rates |
|
|
|
|
|
|
|
(0.03 |
) |
|
|
|
|
(0.03 |
) |
System modernization tracker
revenues |
|
|
|
|
|
|
|
0.02 |
|
|
|
|
|
0.02 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
(0.05 |
) |
Lower (higher) operating
expenses |
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
(0.07 |
) |
Lower (higher) property,
franchise and other taxes |
|
(0.02 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
(0.02 |
) |
Lower (higher) depreciation /
depletion |
|
(0.04 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
(0.05 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
|
|
|
|
|
|
0.06 |
|
|
|
(0.01 |
) |
|
|
0.05 |
|
(Higher) lower interest
expense |
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
0.03 |
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.01 |
) |
All other / rounding |
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Second quarter 2022
adjusted operating results per share |
|
0.77 |
|
|
|
0.28 |
|
|
|
0.24 |
|
|
|
0.42 |
|
|
|
(0.03 |
) |
|
|
1.68 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Reduction of other
post-retirement regulatory liability, net of tax |
|
|
|
|
|
|
|
0.16 |
|
|
|
|
|
0.16 |
|
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
(0.02 |
) |
|
|
(0.02 |
) |
Second quarter 2022
GAAP earnings per share |
$ |
0.77 |
|
|
$ |
0.28 |
|
|
$ |
0.24 |
|
|
$ |
0.58 |
|
|
$ |
(0.05 |
) |
|
$ |
1.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect
intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
|
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
SIX MONTHS ENDED MARCH 31, 2022 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended March 31, 2021 GAAP earnings |
$ |
7,199 |
|
|
$ |
49,112 |
|
|
$ |
41,250 |
|
|
$ |
55,081 |
|
|
$ |
37,568 |
|
|
$ |
190,210 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas
properties |
|
76,152 |
|
|
|
|
|
|
|
|
|
|
|
76,152 |
|
Tax impact of impairment of
oil and gas properties |
|
(20,980 |
) |
|
|
|
|
|
|
|
|
|
|
(20,980 |
) |
Gain on sale of timber
properties |
|
|
|
|
|
|
|
|
|
(51,066 |
) |
|
|
(51,066 |
) |
Tax impact of gain on sale of
timber properties |
|
|
|
|
|
|
|
|
|
14,069 |
|
|
|
14,069 |
|
Premium paid on early
redemption of debt |
|
14,772 |
|
|
|
|
|
943 |
|
|
|
|
|
|
|
15,715 |
|
Tax impact of premium paid on
early redemption of debt |
|
(4,062 |
) |
|
|
|
|
(259 |
) |
|
|
|
|
|
|
(4,321 |
) |
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
|
450 |
|
|
|
450 |
|
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
|
(94 |
) |
|
|
(94 |
) |
Six months ended March
31, 2021 adjusted operating results |
|
73,081 |
|
|
|
49,112 |
|
|
|
41,934 |
|
|
|
55,081 |
|
|
|
927 |
|
|
|
220,135 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
13,570 |
|
|
|
|
|
|
|
|
|
|
|
13,570 |
|
Higher (lower) crude oil
production |
|
(2,303 |
) |
|
|
|
|
|
|
|
|
|
|
(2,303 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
45,877 |
|
|
|
|
|
|
|
|
|
|
|
45,877 |
|
Higher (lower) realized crude
oil prices, after hedging |
|
11,664 |
|
|
|
|
|
|
|
|
|
|
|
11,664 |
|
Higher (lower) other operating
revenues |
|
5,618 |
|
|
|
|
|
|
|
|
|
|
|
5,618 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
6,375 |
|
|
|
5,972 |
|
|
|
|
|
|
|
12,347 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
2,962 |
|
|
|
|
|
2,962 |
|
Impact of new rates |
|
|
|
|
|
|
|
(4,840 |
) |
|
|
|
|
(4,840 |
) |
System modernization tracker
revenues |
|
|
|
|
|
|
|
2,375 |
|
|
|
|
|
2,375 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
(804 |
) |
|
|
|
|
(804 |
) |
Higher (lower) energy
marketing margins |
|
|
|
|
|
|
|
|
|
1,298 |
|
|
|
1,298 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(7,186 |
) |
|
|
|
|
|
|
|
|
|
|
(7,186 |
) |
Lower (higher) operating
expenses |
|
(3,035 |
) |
|
|
(4,519 |
) |
|
|
(1,346 |
) |
|
|
(1,913 |
) |
|
|
|
|
(10,813 |
) |
Lower (higher) property,
franchise and other taxes |
|
(2,931 |
) |
|
|
(424 |
) |
|
|
|
|
|
|
|
|
(3,355 |
) |
Lower (higher) depreciation /
depletion |
|
(6,781 |
) |
|
|
(1,499 |
) |
|
|
(594 |
) |
|
|
|
|
311 |
|
|
|
(8,563 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
|
|
949 |
|
|
|
|
|
6,891 |
|
|
|
|
|
7,840 |
|
(Higher) lower interest
expense |
|
5,216 |
|
|
|
421 |
|
|
|
|
|
|
|
(869 |
) |
|
|
4,768 |
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
565 |
|
|
|
222 |
|
|
|
(703 |
) |
|
|
855 |
|
|
|
(1,226 |
) |
|
|
(287 |
) |
All other / rounding |
|
135 |
|
|
|
— |
|
|
|
(34 |
) |
|
|
(70 |
) |
|
|
6 |
|
|
|
37 |
|
Six months ended March
31, 2022 adjusted operating results |
|
133,490 |
|
|
|
50,637 |
|
|
|
45,229 |
|
|
|
60,537 |
|
|
|
447 |
|
|
|
290,340 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Reduction of other
post-retirement regulatory liability |
|
|
|
|
|
|
|
18,533 |
|
|
|
|
|
18,533 |
|
Tax impact of reduction of
other post-retirement regulatory liability |
|
|
|
|
|
|
|
(3,892 |
) |
|
|
|
|
(3,892 |
) |
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
(6,659 |
) |
|
|
(6,659 |
) |
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
1,398 |
|
|
|
1,398 |
|
Six months ended March
31, 2022 GAAP earnings |
$ |
133,490 |
|
|
$ |
50,637 |
|
|
$ |
45,229 |
|
|
$ |
75,178 |
|
|
$ |
(4,814 |
) |
|
$ |
299,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect
intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
SIX MONTHS ENDED MARCH 31, 2022 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
Six months ended March 31, 2021 GAAP earnings per
share |
$ |
0.08 |
|
|
$ |
0.54 |
|
|
$ |
0.45 |
|
|
$ |
0.60 |
|
|
$ |
0.41 |
|
|
$ |
2.08 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas
properties, net of tax |
|
0.60 |
|
|
|
|
|
|
|
|
|
|
|
0.60 |
|
Gain on sale of timber
properties, net of tax |
|
|
|
|
|
|
|
|
|
(0.40 |
) |
|
|
(0.40 |
) |
Premium paid on early
redemption of debt, net of tax |
|
0.12 |
|
|
|
|
|
— |
|
|
|
|
|
|
|
0.12 |
|
Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
Six months ended March
31, 2021 adjusted operating results per share |
|
0.80 |
|
|
|
0.54 |
|
|
|
0.45 |
|
|
|
0.60 |
|
|
|
0.01 |
|
|
|
2.40 |
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
|
0.15 |
|
|
|
|
|
|
|
|
|
|
|
0.15 |
|
Higher (lower) crude oil
production |
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
(0.03 |
) |
Higher (lower) realized
natural gas prices, after hedging |
|
0.50 |
|
|
|
|
|
|
|
|
|
|
|
0.50 |
|
Higher (lower) realized crude
oil prices, after hedging |
|
0.13 |
|
|
|
|
|
|
|
|
|
|
|
0.13 |
|
Higher (lower) other operating
revenues |
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
0.06 |
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
|
0.07 |
|
|
|
0.06 |
|
|
|
|
|
|
|
0.13 |
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
|
0.03 |
|
|
|
|
|
0.03 |
|
Impact of new rates |
|
|
|
|
|
|
|
(0.05 |
) |
|
|
|
|
(0.05 |
) |
System modernization tracker
revenues |
|
|
|
|
|
|
|
0.03 |
|
|
|
|
|
0.03 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
(0.01 |
) |
Higher (lower) energy
marketing margins |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.01 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
|
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
(0.08 |
) |
Lower (higher) operating
expenses |
|
(0.03 |
) |
|
|
(0.05 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
|
|
(0.11 |
) |
Lower (higher) property,
franchise and other taxes |
|
(0.03 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
(0.03 |
) |
Lower (higher) depreciation /
depletion |
|
(0.07 |
) |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
|
|
— |
|
|
|
(0.10 |
) |
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
|
|
|
0.01 |
|
|
|
|
|
0.07 |
|
|
|
|
|
0.08 |
|
(Higher) lower interest
expense |
|
0.06 |
|
|
|
— |
|
|
|
|
|
|
|
(0.01 |
) |
|
|
0.05 |
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
|
0.01 |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
— |
|
All other / rounding |
|
(0.02 |
) |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
Six months ended March
31, 2022 adjusted operating results per share |
|
1.45 |
|
|
|
0.55 |
|
|
|
0.49 |
|
|
|
0.66 |
|
|
|
— |
|
|
|
3.15 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Reduction of other
post-retirement regulatory liability, net of tax |
|
|
|
|
|
|
|
0.16 |
|
|
|
|
|
0.16 |
|
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
(0.05 |
) |
|
|
(0.05 |
) |
Six months ended March
31, 2022 GAAP earnings per share |
$ |
1.45 |
|
|
$ |
0.55 |
|
|
$ |
0.49 |
|
|
$ |
0.82 |
|
|
$ |
(0.05 |
) |
|
$ |
3.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect
intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
(Thousands of Dollars, except
per share amounts) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
March 31, |
|
March 31, |
|
(Unaudited) |
|
(Unaudited) |
SUMMARY OF OPERATIONS |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating Revenues: |
|
|
|
|
|
|
|
Utility and Energy Marketing Revenues |
$ |
369,092 |
|
|
$ |
270,849 |
|
|
$ |
605,776 |
|
|
$ |
460,315 |
|
Exploration and Production and Other Revenues |
|
261,676 |
|
|
|
220,281 |
|
|
|
505,957 |
|
|
|
412,316 |
|
Pipeline and Storage and Gathering Revenues |
|
70,952 |
|
|
|
59,985 |
|
|
|
136,544 |
|
|
|
119,644 |
|
|
|
701,720 |
|
|
|
551,115 |
|
|
|
1,248,277 |
|
|
|
992,275 |
|
Operating Expenses: |
|
|
|
|
|
|
|
Purchased Gas |
|
199,592 |
|
|
|
106,661 |
|
|
|
301,219 |
|
|
|
158,280 |
|
Operation and Maintenance: |
|
|
|
|
|
|
|
Utility and Energy Marketing |
|
53,476 |
|
|
|
52,058 |
|
|
|
100,120 |
|
|
|
96,944 |
|
Exploration and Production and Other |
|
49,806 |
|
|
|
41,895 |
|
|
|
95,425 |
|
|
|
83,922 |
|
Pipeline and Storage and Gathering |
|
33,518 |
|
|
|
28,133 |
|
|
|
63,446 |
|
|
|
56,231 |
|
Property, Franchise and Other Taxes |
|
27,717 |
|
|
|
23,987 |
|
|
|
52,219 |
|
|
|
46,768 |
|
Depreciation, Depletion and Amortization |
|
91,245 |
|
|
|
84,342 |
|
|
|
179,823 |
|
|
|
167,462 |
|
Impairment of Oil and Gas Producing Properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,152 |
|
|
|
455,354 |
|
|
|
337,076 |
|
|
|
792,252 |
|
|
|
685,759 |
|
Gain on Sale of Timber Properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
51,066 |
|
Operating Income |
|
246,366 |
|
|
|
214,039 |
|
|
|
456,025 |
|
|
|
357,582 |
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
Other Income (Deductions) |
|
10,018 |
|
|
|
(10,875 |
) |
|
|
8,940 |
|
|
|
(13,051 |
) |
Interest Expense on Long-Term Debt |
|
(30,079 |
) |
|
|
(48,820 |
) |
|
|
(60,209 |
) |
|
|
(81,076 |
) |
Other Interest Expense |
|
(1,519 |
) |
|
|
(1,698 |
) |
|
|
(2,680 |
) |
|
|
(3,618 |
) |
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
|
224,786 |
|
|
|
152,646 |
|
|
|
402,076 |
|
|
|
259,837 |
|
|
|
|
|
|
|
|
|
Income Tax Expense |
|
57,458 |
|
|
|
40,210 |
|
|
|
102,356 |
|
|
|
69,627 |
|
|
|
|
|
|
|
|
|
Net Income Available for
Common Stock |
$ |
167,328 |
|
|
$ |
112,436 |
|
|
$ |
299,720 |
|
|
$ |
190,210 |
|
|
|
|
|
|
|
|
|
Earnings Per Common Share |
|
|
|
|
|
|
|
Basic |
$ |
1.83 |
|
|
$ |
1.23 |
|
|
$ |
3.28 |
|
|
$ |
2.09 |
|
Diluted |
$ |
1.82 |
|
|
$ |
1.23 |
|
|
$ |
3.26 |
|
|
$ |
2.08 |
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares: |
|
|
|
|
|
|
|
Used in Basic Calculation |
|
91,444,638 |
|
|
|
91,163,291 |
|
|
|
91,354,488 |
|
|
|
91,084,620 |
|
Used in Diluted
Calculation |
|
92,064,711 |
|
|
|
91,645,679 |
|
|
|
92,047,467 |
|
|
|
91,581,918 |
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
|
|
|
March 31, |
|
September 30, |
(Thousands of Dollars) |
|
2022 |
|
|
|
2021 |
|
ASSETS |
|
|
|
Property, Plant and
Equipment |
$ |
13,457,342 |
|
|
$ |
13,103,639 |
|
Less -
Accumulated Depreciation, Depletion and Amortization |
|
6,882,961 |
|
|
|
6,719,356 |
|
Net Property, Plant and Equipment |
|
6,574,381 |
|
|
|
6,384,283 |
|
Current Assets: |
|
|
|
Cash and Temporary Cash
Investments |
|
52,569 |
|
|
|
31,528 |
|
Hedging Collateral
Deposits |
|
102,370 |
|
|
|
88,610 |
|
Receivables - Net |
|
339,421 |
|
|
|
205,294 |
|
Unbilled Revenue |
|
49,551 |
|
|
|
17,000 |
|
Gas Stored Underground |
|
6,302 |
|
|
|
33,669 |
|
Materials, Supplies and
Emission Allowances |
|
48,887 |
|
|
|
53,560 |
|
Unrecovered Purchased Gas
Costs |
|
3,751 |
|
|
|
33,128 |
|
Other Current Assets |
|
68,265 |
|
|
|
59,660 |
|
Total Current Assets |
|
671,116 |
|
|
|
522,449 |
|
Other Assets: |
|
|
|
Recoverable Future Taxes |
|
123,709 |
|
|
|
121,992 |
|
Unamortized Debt Expense |
|
9,735 |
|
|
|
10,589 |
|
Other Regulatory Assets |
|
57,693 |
|
|
|
60,145 |
|
Deferred Charges |
|
81,646 |
|
|
|
59,939 |
|
Other Investments |
|
103,164 |
|
|
|
149,632 |
|
Goodwill |
|
5,476 |
|
|
|
5,476 |
|
Prepaid Pension and
Post-Retirement Benefit Costs |
|
178,102 |
|
|
|
149,151 |
|
Fair Value of Derivative
Financial Instruments |
|
1 |
|
|
|
— |
|
Other |
|
— |
|
|
|
1,169 |
|
Total Other Assets |
|
559,526 |
|
|
|
558,093 |
|
Total Assets |
$ |
7,805,023 |
|
|
$ |
7,464,825 |
|
CAPITALIZATION AND LIABILITIES |
|
|
|
Capitalization: |
|
|
|
Comprehensive Shareholders'
Equity |
|
|
|
Common Stock, $1 Par Value
Authorized - 200,000,000 Shares; Issued and |
|
|
|
Outstanding - 91,449,226
Shares and 91,181,549 Shares, Respectively |
$ |
91,449 |
|
|
$ |
91,182 |
|
Paid in Capital |
|
1,018,784 |
|
|
|
1,017,446 |
|
Earnings Reinvested in the
Business |
|
1,407,683 |
|
|
|
1,191,175 |
|
Accumulated Other Comprehensive Loss |
|
(654,254 |
) |
|
|
(513,597 |
) |
Total Comprehensive Shareholders' Equity |
|
1,863,662 |
|
|
|
1,786,206 |
|
Long-Term Debt, Net of Current Portion and Unamortized Discount and
Debt Issuance Costs |
|
2,081,529 |
|
|
|
2,628,687 |
|
Total Capitalization |
|
3,945,191 |
|
|
|
4,414,893 |
|
Current and Accrued Liabilities: |
|
|
|
Notes Payable to Banks and
Commercial Paper |
|
218,000 |
|
|
|
158,500 |
|
Current Portion of Long-Term
Debt |
|
549,000 |
|
|
|
— |
|
Accounts Payable |
|
135,775 |
|
|
|
171,655 |
|
Amounts Payable to
Customers |
|
3,422 |
|
|
|
21 |
|
Dividends Payable |
|
41,608 |
|
|
|
41,487 |
|
Interest Payable on Long-Term
Debt |
|
17,376 |
|
|
|
17,376 |
|
Customer Advances |
|
— |
|
|
|
17,223 |
|
Customer Security
Deposits |
|
20,766 |
|
|
|
19,292 |
|
Other Accruals and Current
Liabilities |
|
218,139 |
|
|
|
194,169 |
|
Fair
Value of Derivative Financial Instruments |
|
802,076 |
|
|
|
616,410 |
|
Total Current and Accrued Liabilities |
|
2,006,162 |
|
|
|
1,236,133 |
|
Other Liabilities: |
|
|
|
Deferred Income Taxes |
|
709,598 |
|
|
|
660,420 |
|
Taxes Refundable to
Customers |
|
348,480 |
|
|
|
354,089 |
|
Cost of Removal Regulatory
Liability |
|
252,471 |
|
|
|
245,636 |
|
Other Regulatory
Liabilities |
|
196,589 |
|
|
|
200,643 |
|
Pension and Other
Post-Retirement Liabilities |
|
4,756 |
|
|
|
7,526 |
|
Asset Retirement
Obligations |
|
207,047 |
|
|
|
209,639 |
|
Other
Liabilities |
|
134,729 |
|
|
|
135,846 |
|
Total Other Liabilities |
|
1,853,670 |
|
|
|
1,813,799 |
|
Commitments and Contingencies |
|
— |
|
|
|
— |
|
Total Capitalization and Liabilities |
$ |
7,805,023 |
|
|
$ |
7,464,825 |
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
|
Six Months Ended |
|
|
March 31, |
(Thousands of Dollars) |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
Operating Activities: |
|
|
|
|
Net Income Available for
Common Stock |
|
$ |
299,720 |
|
|
$ |
190,210 |
|
Adjustments to Reconcile Net
Income to Net Cash
Provided by Operating Activities: |
|
|
|
|
Gain on Sale of Timber Properties |
|
|
— |
|
|
|
(51,066 |
) |
Impairment of Oil and Gas Producing Properties |
|
|
— |
|
|
|
76,152 |
|
Depreciation, Depletion and Amortization |
|
|
179,823 |
|
|
|
167,462 |
|
Deferred Income Taxes |
|
|
94,212 |
|
|
|
61,408 |
|
Premium Paid on Early Redemption of Debt |
|
|
— |
|
|
|
15,715 |
|
Stock-Based Compensation |
|
|
10,631 |
|
|
|
8,657 |
|
Reduction of Other Post-Retirement Regulatory Liability |
|
|
(18,533 |
) |
|
|
— |
|
Other |
|
|
14,494 |
|
|
|
6,742 |
|
Change in: |
|
|
|
|
Receivables and Unbilled Revenue |
|
|
(166,584 |
) |
|
|
(101,159 |
) |
Gas Stored Underground and Materials, Supplies and Emission
Allowances |
|
|
32,040 |
|
|
|
27,258 |
|
Unrecovered Purchased Gas Costs |
|
|
29,377 |
|
|
|
(479 |
) |
Other Current Assets |
|
|
(8,605 |
) |
|
|
(8,447 |
) |
Accounts Payable |
|
|
2,006 |
|
|
|
8,613 |
|
Amounts Payable to Customers |
|
|
3,401 |
|
|
|
8,980 |
|
Customer Advances |
|
|
(17,223 |
) |
|
|
(15,319 |
) |
Customer Security Deposits |
|
|
1,474 |
|
|
|
2,304 |
|
Other Accruals and Current Liabilities |
|
|
11,164 |
|
|
|
9,058 |
|
Other Assets |
|
|
(32,659 |
) |
|
|
11,039 |
|
Other Liabilities |
|
|
(9,119 |
) |
|
|
5 |
|
Net Cash Provided by Operating Activities |
|
$ |
425,619 |
|
|
$ |
417,133 |
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
Capital Expenditures |
|
$ |
(415,415 |
) |
|
$ |
(338,867 |
) |
Net Proceeds from Sale of Oil
and Gas Producing Properties |
|
|
13,525 |
|
|
|
— |
|
Net Proceeds from Sale of
Timber Properties |
|
|
— |
|
|
|
104,582 |
|
Sale of Fixed Income Mutual
Fund Shares in Grantor Trust |
|
|
30,000 |
|
|
|
— |
|
Other |
|
|
13,689 |
|
|
|
12,095 |
|
Net Cash Used in Investing Activities |
|
$ |
(358,201 |
) |
|
$ |
(222,190 |
) |
|
|
|
|
|
Financing Activities: |
|
|
|
|
Changes in Notes Payable to
Banks and Commercial Paper |
|
$ |
59,500 |
|
|
$ |
(30,000 |
) |
Reduction of Long-Term
Debt |
|
|
— |
|
|
|
(515,715 |
) |
Dividends Paid on Common
Stock |
|
|
(83,091 |
) |
|
|
(81,035 |
) |
Net Proceeds From Issuance of
Long-Term Debt |
|
|
— |
|
|
|
495,267 |
|
Net
Repurchases of Common Stock |
|
|
(9,026 |
) |
|
|
(3,534 |
) |
Net Cash Used in Financing Activities |
|
$ |
(32,617 |
) |
|
$ |
(135,017 |
) |
|
|
|
|
|
Net Increase in Cash, Cash
Equivalents, and Restricted Cash |
|
|
34,801 |
|
|
|
59,926 |
|
Cash,
Cash Equivalents, and Restricted Cash at Beginning of Period |
|
|
120,138 |
|
|
|
20,541 |
|
Cash, Cash Equivalents, and Restricted Cash at March 31 |
|
$ |
154,939 |
|
|
$ |
80,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
UPSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
(Thousands of Dollars, except
per share amounts) |
March 31, |
|
March 31, |
EXPLORATION AND
PRODUCTION SEGMENT |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Total Operating Revenues |
$ |
261,593 |
|
|
$ |
220,187 |
|
|
$ |
41,406 |
|
$ |
505,791 |
|
$ |
411,582 |
|
$ |
94,209 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
|
General and Administrative Expense |
|
18,798 |
|
|
|
17,899 |
|
|
|
899 |
|
|
36,553 |
|
|
34,852 |
|
|
1,701 |
|
Lease Operating and Transportation Expense |
|
72,548 |
|
|
|
67,008 |
|
|
|
5,540 |
|
|
141,684 |
|
|
132,588 |
|
|
9,096 |
|
All Other Operation and Maintenance Expense |
|
4,756 |
|
|
|
3,515 |
|
|
|
1,241 |
|
|
9,328 |
|
|
7,187 |
|
|
2,141 |
|
Property, Franchise and Other Taxes |
|
7,041 |
|
|
|
4,619 |
|
|
|
2,422 |
|
|
12,775 |
|
|
9,065 |
|
|
3,710 |
|
Depreciation, Depletion and Amortization |
|
50,547 |
|
|
|
46,139 |
|
|
|
4,408 |
|
|
100,054 |
|
|
91,471 |
|
|
8,583 |
|
Impairment of Oil and Gas Producing Properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
76,152 |
|
|
(76,152 |
) |
|
|
153,690 |
|
|
|
139,180 |
|
|
|
14,510 |
|
|
300,394 |
|
|
351,315 |
|
|
(50,921 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
107,903 |
|
|
|
81,007 |
|
|
|
26,896 |
|
|
205,397 |
|
|
60,267 |
|
|
145,130 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(186 |
) |
|
|
(286 |
) |
|
|
100 |
|
|
(372 |
) |
|
(570 |
) |
|
198 |
|
Interest and Other Income |
|
75 |
|
|
|
67 |
|
|
|
8 |
|
|
131 |
|
|
158 |
|
|
(27 |
) |
Interest Expense on Long-Term Debt |
|
— |
|
|
|
(15,119 |
) |
|
|
15,119 |
|
|
— |
|
|
(15,119 |
) |
|
15,119 |
|
Interest Expense |
|
(12,206 |
) |
|
|
(15,103 |
) |
|
|
2,897 |
|
|
(24,338 |
) |
|
(30,594 |
) |
|
6,256 |
|
Income Before Income
Taxes |
|
95,586 |
|
|
|
50,566 |
|
|
|
45,020 |
|
|
180,818 |
|
|
14,142 |
|
|
166,676 |
|
Income Tax Expense |
|
24,465 |
|
|
|
13,744 |
|
|
|
10,721 |
|
|
47,328 |
|
|
6,943 |
|
|
40,385 |
|
Net Income |
$ |
71,121 |
|
|
$ |
36,822 |
|
|
$ |
34,299 |
|
$ |
133,490 |
|
$ |
7,199 |
|
$ |
126,291 |
|
Net Income Per Share
(Diluted) |
$ |
0.77 |
|
|
$ |
0.40 |
|
|
$ |
0.37 |
|
$ |
1.45 |
|
$ |
0.08 |
|
$ |
1.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
MIDSTREAM BUSINESSES |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
(Thousands of Dollars, except
per share amounts) |
March 31, |
|
March 31, |
PIPELINE AND
STORAGE SEGMENT |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Revenues from External Customers |
$ |
67,795 |
|
|
$ |
59,314 |
|
|
$ |
8,481 |
|
|
$ |
129,342 |
|
$ |
118,623 |
|
$ |
10,719 |
|
Intersegment Revenues |
|
27,602 |
|
|
|
27,390 |
|
|
|
212 |
|
|
|
54,405 |
|
|
55,846 |
|
|
(1,441 |
) |
Total Operating Revenues |
|
95,397 |
|
|
|
86,704 |
|
|
|
8,693 |
|
|
|
183,747 |
|
|
174,469 |
|
|
9,278 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
989 |
|
|
|
216 |
|
|
|
773 |
|
|
|
1,437 |
|
|
229 |
|
|
1,208 |
|
Operation and Maintenance |
|
24,438 |
|
|
|
19,718 |
|
|
|
4,720 |
|
|
|
46,611 |
|
|
40,891 |
|
|
5,720 |
|
Property, Franchise and Other
Taxes |
|
8,599 |
|
|
|
8,200 |
|
|
|
399 |
|
|
|
17,180 |
|
|
16,643 |
|
|
537 |
|
Depreciation, Depletion and
Amortization |
|
17,294 |
|
|
|
15,729 |
|
|
|
1,565 |
|
|
|
33,095 |
|
|
31,197 |
|
|
1,898 |
|
|
|
51,320 |
|
|
|
43,863 |
|
|
|
7,457 |
|
|
|
98,323 |
|
|
88,960 |
|
|
9,363 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
44,077 |
|
|
|
42,841 |
|
|
|
1,236 |
|
|
|
85,424 |
|
|
85,509 |
|
|
(85 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit |
|
767 |
|
|
|
125 |
|
|
|
642 |
|
|
|
1,534 |
|
|
250 |
|
|
1,284 |
|
Interest and Other Income |
|
192 |
|
|
|
939 |
|
|
|
(747 |
) |
|
|
1,595 |
|
|
1,795 |
|
|
(200 |
) |
Interest Expense |
|
(10,618 |
) |
|
|
(10,552 |
) |
|
|
(66 |
) |
|
|
(20,750 |
) |
|
(21,283 |
) |
|
533 |
|
Income Before Income
Taxes |
|
34,418 |
|
|
|
33,353 |
|
|
|
1,065 |
|
|
|
67,803 |
|
|
66,271 |
|
|
1,532 |
|
Income Tax Expense |
|
8,948 |
|
|
|
8,425 |
|
|
|
523 |
|
|
|
17,166 |
|
|
17,159 |
|
|
7 |
|
Net Income |
$ |
25,470 |
|
|
$ |
24,928 |
|
|
$ |
542 |
|
|
$ |
50,637 |
|
$ |
49,112 |
|
$ |
1,525 |
|
Net Income Per Share
(Diluted) |
$ |
0.28 |
|
|
$ |
0.27 |
|
|
$ |
0.01 |
|
|
$ |
0.55 |
|
$ |
0.54 |
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
March 31, |
|
March 31, |
GATHERING
SEGMENT |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Revenues from External
Customers |
$ |
3,157 |
|
|
$ |
671 |
|
|
$ |
2,486 |
|
|
$ |
7,202 |
|
$ |
1,021 |
|
$ |
6,181 |
|
Intersegment Revenues |
|
49,447 |
|
|
|
49,591 |
|
|
|
(144 |
) |
|
|
97,627 |
|
|
96,249 |
|
|
1,378 |
|
Total Operating Revenues |
|
52,604 |
|
|
|
50,262 |
|
|
|
2,342 |
|
|
|
104,829 |
|
|
97,270 |
|
|
7,559 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
9,551 |
|
|
|
8,833 |
|
|
|
718 |
|
|
|
17,739 |
|
|
16,035 |
|
|
1,704 |
|
Property, Franchise and Other Taxes |
|
(3 |
) |
|
|
5 |
|
|
|
(8 |
) |
|
|
2 |
|
|
18 |
|
|
(16 |
) |
Depreciation, Depletion and Amortization |
|
8,362 |
|
|
|
8,096 |
|
|
|
266 |
|
|
|
16,753 |
|
|
16,001 |
|
|
752 |
|
|
|
17,910 |
|
|
|
16,934 |
|
|
|
976 |
|
|
|
34,494 |
|
|
32,054 |
|
|
2,440 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
34,694 |
|
|
|
33,328 |
|
|
|
1,366 |
|
|
|
70,335 |
|
|
65,216 |
|
|
5,119 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(56 |
) |
|
|
(68 |
) |
|
|
12 |
|
|
|
(112 |
) |
|
(135 |
) |
|
23 |
|
Interest and Other Income |
|
18 |
|
|
|
9 |
|
|
|
9 |
|
|
|
27 |
|
|
243 |
|
|
(216 |
) |
Interest Expense on Long-Term Debt |
|
— |
|
|
|
(965 |
) |
|
|
965 |
|
|
|
— |
|
|
(965 |
) |
|
965 |
|
Interest Expense |
|
(4,071 |
) |
|
|
(4,201 |
) |
|
|
130 |
|
|
|
(8,219 |
) |
|
(8,332 |
) |
|
113 |
|
Income Before Income
Taxes |
|
30,585 |
|
|
|
28,103 |
|
|
|
2,482 |
|
|
|
62,031 |
|
|
56,027 |
|
|
6,004 |
|
Income Tax Expense |
|
8,493 |
|
|
|
7,403 |
|
|
|
1,090 |
|
|
|
16,802 |
|
|
14,777 |
|
|
2,025 |
|
Net Income |
$ |
22,092 |
|
|
$ |
20,700 |
|
|
$ |
1,392 |
|
|
$ |
45,229 |
|
$ |
41,250 |
|
$ |
3,979 |
|
Net Income Per Share
(Diluted) |
$ |
0.24 |
|
|
$ |
0.23 |
|
|
$ |
0.01 |
|
|
$ |
0.49 |
|
$ |
0.45 |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
DOWNSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
(Thousands of Dollars, except
per share amounts) |
March 31, |
|
March 31, |
UTILITY
SEGMENT |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Revenues from External Customers |
$ |
369,092 |
|
|
$ |
270,784 |
|
|
$ |
98,308 |
|
|
$ |
605,776 |
|
$ |
459,684 |
|
$ |
146,092 |
|
Intersegment Revenues |
|
110 |
|
|
|
97 |
|
|
|
13 |
|
|
|
184 |
|
|
197 |
|
|
(13 |
) |
Total Operating Revenues |
|
369,202 |
|
|
|
270,881 |
|
|
|
98,321 |
|
|
|
605,960 |
|
|
459,881 |
|
|
146,079 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
225,469 |
|
|
|
133,132 |
|
|
|
92,337 |
|
|
|
352,680 |
|
|
210,164 |
|
|
142,516 |
|
Operation and Maintenance |
|
54,249 |
|
|
|
52,864 |
|
|
|
1,385 |
|
|
|
101,710 |
|
|
98,116 |
|
|
3,594 |
|
Property, Franchise and Other Taxes |
|
11,955 |
|
|
|
11,000 |
|
|
|
955 |
|
|
|
22,013 |
|
|
20,748 |
|
|
1,265 |
|
Depreciation, Depletion and Amortization |
|
14,997 |
|
|
|
14,311 |
|
|
|
686 |
|
|
|
29,827 |
|
|
28,305 |
|
|
1,522 |
|
|
|
306,670 |
|
|
|
211,307 |
|
|
|
95,363 |
|
|
|
506,230 |
|
|
357,333 |
|
|
148,897 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
62,532 |
|
|
|
59,574 |
|
|
|
2,958 |
|
|
|
99,730 |
|
|
102,548 |
|
|
(2,818 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit (Costs) |
|
13,023 |
|
|
|
(12,243 |
) |
|
|
25,266 |
|
|
|
8,697 |
|
|
(18,927 |
) |
|
27,624 |
|
Interest and Other Income |
|
289 |
|
|
|
443 |
|
|
|
(154 |
) |
|
|
813 |
|
|
1,181 |
|
|
(368 |
) |
Interest Expense |
|
(5,504 |
) |
|
|
(5,495 |
) |
|
|
(9 |
) |
|
|
(11,028 |
) |
|
(10,947 |
) |
|
(81 |
) |
Income Before Income
Taxes |
|
70,340 |
|
|
|
42,279 |
|
|
|
28,061 |
|
|
|
98,212 |
|
|
73,855 |
|
|
24,357 |
|
Income Tax Expense |
|
17,292 |
|
|
|
10,235 |
|
|
|
7,057 |
|
|
|
23,034 |
|
|
18,774 |
|
|
4,260 |
|
Net Income |
$ |
53,048 |
|
|
$ |
32,044 |
|
|
$ |
21,004 |
|
|
$ |
75,178 |
|
$ |
55,081 |
|
$ |
20,097 |
|
Net Income Per Share
(Diluted) |
$ |
0.58 |
|
|
$ |
0.35 |
|
|
$ |
0.23 |
|
|
$ |
0.82 |
|
$ |
0.60 |
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
(Thousands of Dollars, except
per share amounts) |
March 31, |
|
March 31, |
ALL
OTHER |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Revenues from External Customers |
$ |
— |
|
|
$ |
64 |
|
|
$ |
(64 |
) |
|
$ |
— |
|
$ |
1,175 |
|
$ |
(1,175 |
) |
Intersegment Revenues |
|
— |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
6 |
|
|
20 |
|
|
(14 |
) |
Total Operating Revenues |
|
— |
|
|
|
65 |
|
|
|
(65 |
) |
|
|
6 |
|
|
1,195 |
|
|
(1,189 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
— |
|
|
|
6 |
|
|
|
(6 |
) |
|
|
6 |
|
|
2,293 |
|
|
(2,287 |
) |
Operation and Maintenance |
|
— |
|
|
|
(81 |
) |
|
|
81 |
|
|
|
5 |
|
|
683 |
|
|
(678 |
) |
Property, Franchise and Other Taxes |
|
— |
|
|
|
38 |
|
|
|
(38 |
) |
|
|
— |
|
|
47 |
|
|
(47 |
) |
Depreciation, Depletion and Amortization |
|
— |
|
|
|
9 |
|
|
|
(9 |
) |
|
|
— |
|
|
394 |
|
|
(394 |
) |
|
|
— |
|
|
|
(28 |
) |
|
|
28 |
|
|
|
11 |
|
|
3,417 |
|
|
(3,406 |
) |
Gain on Sale of Timber Properties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
51,066 |
|
|
(51,066 |
) |
Operating Income (Loss) |
|
— |
|
|
|
93 |
|
|
|
(93 |
) |
|
|
(5 |
) |
|
48,844 |
|
|
(48,849 |
) |
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
— |
|
|
|
(3 |
) |
|
|
3 |
|
|
|
— |
|
|
(7 |
) |
|
7 |
|
Interest and Other Income |
|
— |
|
|
|
41 |
|
|
|
(41 |
) |
|
|
2 |
|
|
225 |
|
|
(223 |
) |
Income (Loss) before Income
Taxes |
|
— |
|
|
|
131 |
|
|
|
(131 |
) |
|
|
(3 |
) |
|
49,062 |
|
|
(49,065 |
) |
Income Tax Expense |
|
— |
|
|
|
1,114 |
|
|
|
(1,114 |
) |
|
|
4 |
|
|
12,485 |
|
|
(12,481 |
) |
Net Income (Loss) |
$ |
— |
|
|
$ |
(983 |
) |
|
$ |
983 |
|
|
$ |
(7 |
) |
$ |
36,577 |
|
$ |
(36,584 |
) |
Net Income (Loss) Per Share
(Diluted) |
$ |
— |
|
|
$ |
(0.01 |
) |
|
$ |
0.01 |
|
|
$ |
— |
|
$ |
0.40 |
|
$ |
(0.40 |
) |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
March 31, |
|
March 31, |
CORPORATE |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Revenues from External
Customers |
$ |
83 |
|
|
$ |
95 |
|
|
$ |
(12 |
) |
|
$ |
166 |
|
$ |
190 |
|
$ |
(24 |
) |
Intersegment Revenues |
|
1,082 |
|
|
|
1,027 |
|
|
|
55 |
|
|
|
2,165 |
|
|
1,691 |
|
|
474 |
|
Total Operating Revenues |
|
1,165 |
|
|
|
1,122 |
|
|
|
43 |
|
|
|
2,331 |
|
|
1,881 |
|
|
450 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
3,835 |
|
|
|
3,743 |
|
|
|
92 |
|
|
|
6,844 |
|
|
6,342 |
|
|
502 |
|
Property, Franchise and Other Taxes |
|
125 |
|
|
|
125 |
|
|
|
— |
|
|
|
249 |
|
|
247 |
|
|
2 |
|
Depreciation, Depletion and Amortization |
|
45 |
|
|
|
58 |
|
|
|
(13 |
) |
|
|
94 |
|
|
94 |
|
|
— |
|
|
|
4,005 |
|
|
|
3,926 |
|
|
|
79 |
|
|
|
7,187 |
|
|
6,683 |
|
|
504 |
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
(2,840 |
) |
|
|
(2,804 |
) |
|
|
(36 |
) |
|
|
(4,856 |
) |
|
(4,802 |
) |
|
(54 |
) |
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(1,017 |
) |
|
|
(922 |
) |
|
|
(95 |
) |
|
|
(2,034 |
) |
|
(1,846 |
) |
|
(188 |
) |
Interest and Other Income |
|
28,740 |
|
|
|
35,317 |
|
|
|
(6,577 |
) |
|
|
61,918 |
|
|
74,296 |
|
|
(12,378 |
) |
Interest Expense on Long-Term Debt |
|
(30,079 |
) |
|
|
(32,736 |
) |
|
|
2,657 |
|
|
|
(60,209 |
) |
|
(64,992 |
) |
|
4,783 |
|
Other Interest Expense |
|
(947 |
) |
|
|
(641 |
) |
|
|
(306 |
) |
|
|
(1,604 |
) |
|
(2,176 |
) |
|
572 |
|
Income (Loss) before Income
Taxes |
|
(6,143 |
) |
|
|
(1,786 |
) |
|
|
(4,357 |
) |
|
|
(6,785 |
) |
|
480 |
|
|
(7,265 |
) |
Income Tax Expense
(Benefit) |
|
(1,740 |
) |
|
|
(711 |
) |
|
|
(1,029 |
) |
|
|
(1,978 |
) |
|
(511 |
) |
|
(1,467 |
) |
Net Income (Loss) |
$ |
(4,403 |
) |
|
$ |
(1,075 |
) |
|
$ |
(3,328 |
) |
|
$ |
(4,807 |
) |
$ |
991 |
|
$ |
(5,798 |
) |
Net Income (Loss) Per Share
(Diluted) |
$ |
(0.05 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.05 |
) |
$ |
0.01 |
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
March 31, |
|
March 31, |
INTERSEGMENT
ELIMINATIONS |
|
2022 |
|
|
|
2021 |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
Variance |
Intersegment Revenues |
$ |
(78,241 |
) |
|
$ |
(78,106 |
) |
|
$ |
(135 |
) |
|
$ |
(154,387 |
) |
$ |
(154,003 |
) |
$ |
(384 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
(26,866 |
) |
|
|
(26,693 |
) |
|
|
(173 |
) |
|
|
(52,904 |
) |
|
(54,406 |
) |
|
1,502 |
|
Operation and Maintenance |
|
(51,375 |
) |
|
|
(51,413 |
) |
|
|
38 |
|
|
|
(101,483 |
) |
|
(99,597 |
) |
|
(1,886 |
) |
|
|
(78,241 |
) |
|
|
(78,106 |
) |
|
|
(135 |
) |
|
|
(154,387 |
) |
|
(154,003 |
) |
|
(384 |
) |
Operating Income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Interest and Other Deductions |
|
(31,827 |
) |
|
|
(34,294 |
) |
|
|
2,467 |
|
|
|
(63,259 |
) |
|
(69,714 |
) |
|
6,455 |
|
Interest Expense |
|
31,827 |
|
|
|
34,294 |
|
|
|
(2,467 |
) |
|
|
63,259 |
|
|
69,714 |
|
|
(6,455 |
) |
Net Income |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Net Income Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION (Continued) |
(Thousands of Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
March 31, |
|
March 31, |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
2022 |
|
2021 |
|
(Decrease) |
|
2022 |
|
2021 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production |
$ |
134,748 |
(1) |
$ |
88,271 |
(3) |
$ |
46,477 |
|
|
$ |
273,960 |
(1)(2) |
$ |
169,610 |
(3)(4) |
$ |
104,350 |
|
Pipeline and Storage |
|
14,404 |
(1) |
|
47,970 |
(3) |
|
(33,566 |
) |
|
|
38,465 |
(1)(2) |
|
91,693 |
(3)(4) |
|
(53,228 |
) |
Gathering |
|
11,055 |
(1) |
|
11,099 |
(3) |
|
(44 |
) |
|
|
19,975 |
(1)(2) |
|
19,419 |
(3)(4) |
|
556 |
|
Utility |
|
23,925 |
(1) |
|
24,480 |
(3) |
|
(555 |
) |
|
|
43,308 |
(1)(2) |
|
41,825 |
(3)(4) |
|
1,483 |
|
Total Reportable Segments |
|
184,132 |
|
|
171,820 |
|
|
12,312 |
|
|
|
375,708 |
|
|
322,547 |
|
|
53,161 |
|
All Other |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
Corporate |
|
271 |
|
|
50 |
|
|
221 |
|
|
|
496 |
|
|
89 |
|
|
407 |
|
Eliminations |
|
— |
|
|
(373 |
) |
|
373 |
|
|
|
— |
|
|
(219 |
) |
|
219 |
|
Total Capital Expenditures |
$ |
184,403 |
|
$ |
171,497 |
|
$ |
12,906 |
|
|
$ |
376,204 |
|
$ |
322,417 |
|
$ |
53,787 |
|
(1) |
|
Capital expenditures for the quarter and six months ended March 31,
2022, include accounts payable and accrued liabilities related to
capital expenditures of $52.5 million, $3.5 million, $3.4 million,
and $4.1 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility
segment, respectively. These amounts have been excluded from the
Consolidated Statement of Cash Flows at March 31, 2022, since they
represent non-cash investing activities at that date. |
|
|
|
(2) |
|
Capital expenditures for the six months ended March 31, 2022,
exclude capital expenditures of $47.9 million, $39.4 million, $4.8
million and $10.6 million in the Exploration and Production
segment, Pipeline and Storage segment, Gathering segment and
Utility segment, respectively. These amounts were in accounts
payable and accrued liabilities at September 30, 2021 and paid
during the six months ended March 31, 2022. These amounts were
excluded from the Consolidated Statement of Cash Flows at September
30, 2021, since they represented non-cash investing activities at
that date. These amounts have been included in the Consolidated
Statement of Cash Flows at March 31, 2022. |
|
|
|
(3) |
|
Capital expenditures for the quarter and six months ended March 31,
2021, include accounts payable and accrued liabilities related to
capital expenditures of $44.5 million, $16.0 million, $2.9 million,
and $4.7 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility
segment, respectively. These amounts have been excluded from the
Consolidated Statement of Cash Flows at March 31, 2021, since they
represent non-cash investing activities at that date.
|
|
|
|
(4) |
|
Capital expenditures for the six months ended March 31, 2021,
exclude capital expenditures of $45.8 million, $17.3 million, $13.5
million and $10.7 million in the Exploration and Production
segment, Pipeline and Storage segment, Gathering segment and
Utility segment, respectively. These amounts were in accounts
payable and accrued liabilities at September 30, 2020 and paid
during the six months ended March 31, 2021. These amounts were
excluded from the Consolidated Statement of Cash Flows at September
30, 2020, since they represented non-cash investing activities at
that date. These amounts have been included in the Consolidated
Statement of Cash Flows at March 31, 2021. |
|
|
|
|
|
|
|
|
|
|
DEGREE
DAYS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Colder |
|
|
|
|
|
|
|
(Warmer) Than: |
Three Months Ended March
31, |
Normal |
|
2022 |
|
2021 |
|
Normal(1) |
|
Last Year(1) |
Buffalo, NY |
3,290 |
|
3,161 |
|
2,978 |
|
(3.9 |
) |
|
6.1 |
|
Erie, PA |
3,108 |
|
2,973 |
|
2,750 |
|
(4.3 |
) |
|
8.1 |
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March
31, |
|
|
|
|
|
|
|
|
|
Buffalo, NY |
5,543 |
|
4,865 |
|
4,899 |
|
(12.2 |
) |
|
(0.7 |
) |
Erie, PA |
5,152 |
|
4,533 |
|
4,447 |
|
(12.0 |
) |
|
1.9 |
|
|
|
|
|
|
|
|
|
|
|
(1) Percents compare
actual 2022 degree days to normal degree days and actual 2022
degree days to actual 2021 degree days.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
March 31, |
|
March 31, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2022 |
|
|
2021 |
|
(Decrease) |
|
2022 |
|
2021 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
Production (MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
|
83,565 |
|
|
81,446 |
|
|
2,119 |
|
|
|
164,954 |
|
|
157,115 |
|
|
7,839 |
|
West Coast |
|
|
397 |
|
|
428 |
|
|
(31 |
) |
|
|
805 |
|
|
869 |
|
|
(64 |
) |
Total Production |
|
|
83,962 |
|
|
81,874 |
|
|
2,088 |
|
|
|
165,759 |
|
|
157,984 |
|
|
7,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Mcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
$ |
3.97 |
|
$ |
2.28 |
|
$ |
1.69 |
|
|
$ |
4.18 |
|
$ |
2.23 |
|
$ |
1.95 |
|
West Coast |
|
|
10.04 |
|
|
7.14 |
|
|
2.90 |
|
|
|
9.91 |
|
|
6.07 |
|
|
3.84 |
|
Weighted Average |
|
|
4.00 |
|
|
2.31 |
|
|
1.69 |
|
|
|
4.21 |
|
|
2.25 |
|
|
1.96 |
|
Weighted Average after Hedging |
|
|
2.60 |
|
|
2.28 |
|
|
0.32 |
|
|
|
2.56 |
|
|
2.21 |
|
|
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
Production (Thousands of
Barrels) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
|
1 |
|
|
1 |
|
|
— |
|
|
|
1 |
|
|
1 |
|
|
— |
|
West Coast |
|
|
522 |
|
|
561 |
|
|
(39 |
) |
|
|
1,070 |
|
|
1,124 |
|
|
(54 |
) |
Total Production |
|
|
523 |
|
|
562 |
|
|
(39 |
) |
|
|
1,071 |
|
|
1,125 |
|
|
(54 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per
Barrel) |
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
$ |
78.32 |
|
$ |
48.47 |
|
$ |
29.85 |
|
|
$ |
75.38 |
|
$ |
43.83 |
|
$ |
31.55 |
|
West Coast |
|
|
94.95 |
|
|
59.83 |
|
|
35.12 |
|
|
|
85.93 |
|
|
51.64 |
|
|
34.29 |
|
Weighted Average |
|
|
94.93 |
|
|
59.82 |
|
|
35.11 |
|
|
|
85.93 |
|
|
51.63 |
|
|
34.30 |
|
Weighted Average after Hedging |
|
|
70.45 |
|
|
57.11 |
|
|
13.34 |
|
|
|
67.30 |
|
|
53.50 |
|
|
13.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production (MMcfe) |
|
|
87,100 |
|
|
85,246 |
|
|
1,854 |
|
|
|
172,185 |
|
|
164,734 |
|
|
7,451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Performance Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
General & Administrative
Expense per Mcfe(1) |
|
$ |
0.22 |
|
$ |
0.21 |
|
$ |
0.01 |
|
|
$ |
0.21 |
|
$ |
0.21 |
|
$ |
— |
|
Lease Operating and
Transportation Expense per Mcfe(1)(2) |
|
$ |
0.83 |
|
$ |
0.79 |
|
$ |
0.04 |
|
|
$ |
0.82 |
|
$ |
0.80 |
|
$ |
0.02 |
|
Depreciation, Depletion &
Amortization per Mcfe(1) |
|
$ |
0.58 |
|
$ |
0.54 |
|
$ |
0.04 |
|
|
$ |
0.58 |
|
$ |
0.56 |
|
$ |
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 $0.55 and $0.57 per Mcfe
for the three months ended March 31, 2022 and March 31, 2021,
respectively. Amounts include transportation expense of $0.56 and
$0.57 per Mcfe for the six months ended March 31, 2022 and March
31, 2021, respectively. |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
Hedging Summary for
Remaining Six Months of Fiscal 2022 |
|
Volume |
|
|
|
Average Hedge
Price |
Oil Swaps |
|
|
|
|
|
|
|
|
Brent |
|
570,000 |
|
BBL |
|
$ |
|
58.28 / BBL |
NYMEX |
|
78,000 |
|
BBL |
|
$ |
|
51.00 / BBL |
Total |
|
648,000 |
|
BBL |
|
$ |
|
57.40 /
BBL |
|
|
|
|
|
|
|
|
|
Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
107,160,000 |
|
MMBTU |
|
$ |
|
2.76 / MMBTU |
Fixed Price Physical
Sales |
|
38,061,033 |
|
MMBTU |
|
$ |
|
2.65 / MMBTU |
Total |
|
145,221,033 |
|
MMBTU |
|
$ |
|
2.73 /
MMBTU |
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2023 |
|
Volume |
|
|
|
Average Hedge
Price |
Oil Swaps |
|
|
|
|
|
|
|
|
Brent |
|
480,000 |
|
BBL |
|
$ |
|
58.48 / BBL |
Total |
|
480,000 |
|
BBL |
|
$ |
|
58.48 /
BBL |
|
|
|
|
|
|
|
|
|
Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
116,200,000 |
|
MMBTU |
|
$ |
|
2.79 / MMBTU |
No Cost Collars |
|
70,400,000 |
|
MMBTU |
|
$ |
|
3.11 / MMBTU (Floor) / $3.64 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
72,896,598 |
|
MMBTU |
|
$ |
|
2.45 / MMBTU |
Total |
|
259,496,598 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2024 |
|
Volume |
|
|
|
Average Hedge
Price |
Oil Swaps |
|
|
|
|
|
|
|
|
Brent |
|
120,000 |
|
BBL |
|
$ |
|
50.30 / BBL |
Total |
|
120,000 |
|
BBL |
|
$ |
|
50.30 /
BBL |
|
|
|
|
|
|
|
|
|
Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
61,080,000 |
|
MMBTU |
|
$ |
|
2.72 / MMBTU |
No Cost Collars |
|
59,200,000 |
|
MMBTU |
|
$ |
|
3.20 / MMBTU (Floor) / $3.78 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
59,807,855 |
|
MMBTU |
|
$ |
|
2.22 / MMBTU |
Total |
|
180,087,855 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2025 |
|
Volume |
|
|
|
Average Hedge
Price |
Oil Swaps |
|
|
|
|
|
|
|
|
Brent |
|
120,000 |
|
BBL |
|
$ |
|
50.32 / BBL |
Total |
|
120,000 |
|
BBL |
|
$ |
|
50.32 /
BBL |
|
|
|
|
|
|
|
|
|
Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
23,660,000 |
|
MMBTU |
|
$ |
|
2.74 / MMBTU |
No Cost Collars |
|
22,400,000 |
|
MMBTU |
|
$ |
|
3.24 / MMBTU (Floor) / $3.65 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
56,366,847 |
|
MMBTU |
|
$ |
|
2.21 / MMBTU |
Total |
|
102,426,847 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2026 |
|
Volume |
|
|
|
Average Hedge
Price |
Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
1,720,000 |
|
MMBTU |
|
$ |
|
2.75 / MMBTU |
No Cost Collars |
|
19,200,000 |
|
MMBTU |
|
$ |
|
3.25 / MMBTU (Floor) / $3.61 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
58,883,559 |
|
MMBTU |
|
$ |
|
2.30 / MMBTU |
Total |
|
79,803,559 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2027 |
|
Volume |
|
|
|
Average Hedge
Price |
No Cost Collars |
|
1,600,000 |
|
MMBTU |
|
$ |
|
3.25 / MMBTU (Floor) / $3.61 /
MMBTU (Ceiling) |
Fixed Price Physical
Sales |
|
43,434,257 |
|
MMBTU |
|
$ |
|
2.35 / MMBTU |
Total |
|
45,034,257 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2028 |
|
Volume |
|
|
|
Average Hedge
Price |
Fixed Price Physical
Sales |
|
11,850,451 |
|
MMBTU |
|
$ |
|
2.48 / MMBTU |
|
|
|
|
|
|
|
Hedging Summary for
Fiscal 2029 |
|
Volume |
|
|
|
Average Hedge
Price |
Fixed Price Physical
Sales |
|
766,673 |
|
MMBTU |
|
$ |
|
2.54 / MMBTU |
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline
& Storage Throughput - (millions of cubic feet -
MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
March 31, |
|
March 31, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2022 |
|
2021 |
|
(Decrease) |
|
2022 |
|
2021 |
|
(Decrease) |
Firm Transportation -
Affiliated |
|
46,459 |
|
43,124 |
|
3,335 |
|
74,656 |
|
73,088 |
|
1,568 |
Firm Transportation -
Non-Affiliated |
|
185,571 |
|
166,372 |
|
19,199 |
|
350,967 |
|
339,436 |
|
11,531 |
Interruptible
Transportation |
|
752 |
|
435 |
|
317 |
|
1,520 |
|
1,024 |
|
496 |
|
|
232,782 |
|
209,931 |
|
22,851 |
|
427,143 |
|
413,548 |
|
13,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering Volume -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
March 31, |
|
March 31, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2022 |
|
2021 |
|
(Decrease) |
|
2022 |
|
2021 |
|
(Decrease) |
Gathered Volume |
|
103,736 |
|
95,121 |
|
8,615 |
|
204,829 |
|
183,466 |
|
21,363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Throughput -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
March 31, |
|
March 31, |
|
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
|
2022 |
|
2021 |
|
(Decrease) |
|
2022 |
|
2021 |
|
(Decrease) |
Retail Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential Sales |
|
32,026 |
|
29,052 |
|
2,974 |
|
49,521 |
|
47,465 |
|
2,056 |
Commercial Sales |
|
4,923 |
|
4,309 |
|
614 |
|
7,466 |
|
6,836 |
|
630 |
Industrial Sales |
|
268 |
|
223 |
|
45 |
|
392 |
|
376 |
|
16 |
|
|
37,217 |
|
33,584 |
|
3,633 |
|
57,379 |
|
54,677 |
|
2,702 |
Transportation |
|
25,745 |
|
24,584 |
|
1,161 |
|
43,338 |
|
42,518 |
|
820 |
|
|
62,962 |
|
58,168 |
|
4,794 |
|
100,717 |
|
97,195 |
|
3,522 |
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
In addition to financial measures calculated in
accordance with generally accepted accounting principles (GAAP),
this press release contains information regarding Adjusted
Operating Results, Adjusted EBITDA and free cash flow, which are
non-GAAP financial measures. The Company believes that these
non-GAAP financial measures are useful to investors because they
provide an alternative method for assessing the Company's ongoing
operating results or liquidity and for comparing the Company’s
financial performance to other companies. The Company's management
uses these non-GAAP financial measures for the same purpose, and
for planning and forecasting purposes. The presentation of non-GAAP
financial measures is not meant to be a substitute for financial
measures in accordance with GAAP.
Management defines Adjusted Operating Results as
reported GAAP earnings before items impacting comparability. The
following table reconciles National Fuel's reported GAAP earnings
to Adjusted Operating Results for the six months ended March 31,
2022 and 2021:
|
|
Three Months Ended |
|
Six Months Ended |
|
|
March 31, |
|
March 31, |
(in thousands except per share amounts) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Reported GAAP
Earnings |
|
$ |
167,328 |
|
|
$ |
112,436 |
|
|
$ |
299,720 |
|
|
$ |
190,210 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Reduction of other post-retirement regulatory liability
(Utility) |
|
|
(18,533 |
) |
|
|
— |
|
|
|
(18,533 |
) |
|
|
— |
|
Tax impact of reduction of other post-retirement regulatory
liability |
|
|
3,892 |
|
|
|
— |
|
|
|
3,892 |
|
|
|
— |
|
Impairment of oil and gas properties (E&P) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,152 |
|
Tax impact of impairment of oil and gas properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(20,980 |
) |
Gain on sale of timber properties (Corporate/All Other) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51,066 |
) |
Tax impact of gain on sale of timber properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,069 |
|
Premium paid on early redemption of debt |
|
|
— |
|
|
|
15,715 |
|
|
|
— |
|
|
|
15,715 |
|
Tax impact of premium paid on early redemption of debt |
|
|
— |
|
|
|
(4,321 |
) |
|
|
— |
|
|
|
(4,321 |
) |
Unrealized (gain) loss on other investments (Corporate/All
Other) |
|
|
2,170 |
|
|
|
(848 |
) |
|
|
6,659 |
|
|
|
450 |
|
Tax impact of unrealized (gain) loss on other investments |
|
|
(456 |
) |
|
|
178 |
|
|
|
(1,398 |
) |
|
|
(94 |
) |
Adjusted Operating
Results |
|
$ |
154,401 |
|
|
$ |
123,160 |
|
|
$ |
290,340 |
|
|
$ |
220,135 |
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
|
$ |
1.82 |
|
|
$ |
1.23 |
|
|
$ |
3.26 |
|
|
$ |
2.08 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
Reduction of other post-retirement regulatory liability, net of tax
(Utility) |
|
|
(0.16 |
) |
|
|
— |
|
|
|
(0.16 |
) |
|
|
— |
|
Impairment of oil and gas properties, net of tax (E&P) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.60 |
|
Gain on sale of timber properties, net of tax (Corporate/All
Other) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.40 |
) |
Premium paid on early redemption of debt, net of tax |
|
|
— |
|
|
|
0.12 |
|
|
|
— |
|
|
|
0.12 |
|
Unrealized (gain) loss on other investments, net of tax
(Corporate/All Other) |
|
|
0.02 |
|
|
|
(0.01 |
) |
|
|
0.05 |
|
|
|
— |
|
Adjusted Operating
Results Per Share |
|
$ |
1.68 |
|
|
$ |
1.34 |
|
|
$ |
3.15 |
|
|
$ |
2.40 |
|
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 six months ended March 31, 2022 and 2021:
|
|
Three Months Ended |
|
Six Months Ended |
|
|
March 31, |
|
March 31, |
(in thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Reported GAAP
Earnings |
|
$ |
167,328 |
|
|
$ |
112,436 |
|
|
$ |
299,720 |
|
|
$ |
190,210 |
|
Depreciation, Depletion and Amortization |
|
|
91,245 |
|
|
|
84,342 |
|
|
|
179,823 |
|
|
|
167,462 |
|
Other (Income) Deductions |
|
|
(10,018 |
) |
|
|
10,875 |
|
|
|
(8,940 |
) |
|
|
13,051 |
|
Interest Expense |
|
|
31,598 |
|
|
|
50,518 |
|
|
|
62,889 |
|
|
|
84,694 |
|
Income Taxes |
|
|
57,458 |
|
|
|
40,210 |
|
|
|
102,356 |
|
|
|
69,627 |
|
Impairment of Oil and Gas Producing Properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,152 |
|
Gain on Sale of Timber Properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51,066 |
) |
Adjusted
EBITDA |
|
$ |
337,611 |
|
|
$ |
298,381 |
|
|
$ |
635,848 |
|
|
$ |
550,130 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Segment |
|
|
|
|
|
|
|
|
Pipeline and Storage Adjusted
EBITDA |
|
$ |
61,371 |
|
|
$ |
58,570 |
|
|
$ |
118,519 |
|
|
$ |
116,706 |
|
Gathering Adjusted EBITDA |
|
|
43,056 |
|
|
|
41,424 |
|
|
|
87,088 |
|
|
|
81,217 |
|
Total Midstream Businesses
Adjusted EBITDA |
|
|
104,427 |
|
|
|
99,994 |
|
|
|
205,607 |
|
|
|
197,923 |
|
Exploration and Production
Adjusted EBITDA |
|
|
158,450 |
|
|
|
127,146 |
|
|
|
305,451 |
|
|
|
227,890 |
|
Utility Adjusted EBITDA |
|
|
77,529 |
|
|
|
73,885 |
|
|
|
129,557 |
|
|
|
130,853 |
|
Corporate and All Other
Adjusted EBITDA |
|
|
(2,795 |
) |
|
|
(2,644 |
) |
|
|
(4,767 |
) |
|
|
(6,536 |
) |
Total Adjusted
EBITDA |
|
$ |
337,611 |
|
|
$ |
298,381 |
|
|
$ |
635,848 |
|
|
$ |
550,130 |
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA
|
|
Three Months Ended |
|
Six Months Ended |
|
|
March 31, |
|
March 31, |
(in thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Exploration and
Production Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
71,121 |
|
|
$ |
36,822 |
|
|
$ |
133,490 |
|
|
$ |
7,199 |
|
Depreciation, Depletion and Amortization |
|
|
50,547 |
|
|
|
46,139 |
|
|
|
100,054 |
|
|
|
91,471 |
|
Other (Income) Deductions |
|
|
111 |
|
|
|
219 |
|
|
|
241 |
|
|
|
412 |
|
Interest Expense |
|
|
12,206 |
|
|
|
30,222 |
|
|
|
24,338 |
|
|
|
45,713 |
|
Income Taxes |
|
|
24,465 |
|
|
|
13,744 |
|
|
|
47,328 |
|
|
|
6,943 |
|
Impairment of Oil and Gas Producing Properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,152 |
|
Adjusted EBITDA |
|
$ |
158,450 |
|
|
$ |
127,146 |
|
|
$ |
305,451 |
|
|
$ |
227,890 |
|
|
|
|
|
|
|
|
|
|
Pipeline and
Storage Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
25,470 |
|
|
$ |
24,928 |
|
|
$ |
50,637 |
|
|
$ |
49,112 |
|
Depreciation, Depletion and Amortization |
|
|
17,294 |
|
|
|
15,729 |
|
|
|
33,095 |
|
|
|
31,197 |
|
Other (Income) Deductions |
|
|
(959 |
) |
|
|
(1,064 |
) |
|
|
(3,129 |
) |
|
|
(2,045 |
) |
Interest Expense |
|
|
10,618 |
|
|
|
10,552 |
|
|
|
20,750 |
|
|
|
21,283 |
|
Income Taxes |
|
|
8,948 |
|
|
|
8,425 |
|
|
|
17,166 |
|
|
|
17,159 |
|
Adjusted EBITDA |
|
$ |
61,371 |
|
|
$ |
58,570 |
|
|
$ |
118,519 |
|
|
$ |
116,706 |
|
|
|
|
|
|
|
|
|
|
Gathering
Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
22,092 |
|
|
$ |
20,700 |
|
|
$ |
45,229 |
|
|
$ |
41,250 |
|
Depreciation, Depletion and Amortization |
|
|
8,362 |
|
|
|
8,096 |
|
|
|
16,753 |
|
|
|
16,001 |
|
Other (Income) Deductions |
|
|
38 |
|
|
|
59 |
|
|
|
85 |
|
|
|
(108 |
) |
Interest Expense |
|
|
4,071 |
|
|
|
5,166 |
|
|
|
8,219 |
|
|
|
9,297 |
|
Income Taxes |
|
|
8,493 |
|
|
|
7,403 |
|
|
|
16,802 |
|
|
|
14,777 |
|
Adjusted EBITDA |
|
$ |
43,056 |
|
|
$ |
41,424 |
|
|
$ |
87,088 |
|
|
$ |
81,217 |
|
|
|
|
|
|
|
|
|
|
Utility
Segment |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
53,048 |
|
|
$ |
32,044 |
|
|
$ |
75,178 |
|
|
$ |
55,081 |
|
Depreciation, Depletion and Amortization |
|
|
14,997 |
|
|
|
14,311 |
|
|
|
29,827 |
|
|
|
28,305 |
|
Other (Income) Deductions |
|
|
(13,312 |
) |
|
|
11,800 |
|
|
|
(9,510 |
) |
|
|
17,746 |
|
Interest Expense |
|
|
5,504 |
|
|
|
5,495 |
|
|
|
11,028 |
|
|
|
10,947 |
|
Income Taxes |
|
|
17,292 |
|
|
|
10,235 |
|
|
|
23,034 |
|
|
|
18,774 |
|
Adjusted EBITDA |
|
$ |
77,529 |
|
|
$ |
73,885 |
|
|
$ |
129,557 |
|
|
$ |
130,853 |
|
|
|
|
|
|
|
|
|
|
Corporate and All
Other |
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
(4,403 |
) |
|
$ |
(2,058 |
) |
|
$ |
(4,814 |
) |
|
$ |
37,568 |
|
Depreciation, Depletion and Amortization |
|
|
45 |
|
|
|
67 |
|
|
|
94 |
|
|
|
488 |
|
Gain on Sale of Timber Properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51,066 |
) |
Other (Income) Deductions |
|
|
4,104 |
|
|
|
(139 |
) |
|
|
3,373 |
|
|
|
(2,954 |
) |
Interest Expense |
|
|
(801 |
) |
|
|
(917 |
) |
|
|
(1,446 |
) |
|
|
(2,546 |
) |
Income Taxes |
|
|
(1,740 |
) |
|
|
403 |
|
|
|
(1,974 |
) |
|
|
11,974 |
|
Adjusted EBITDA |
|
$ |
(2,795 |
) |
|
$ |
(2,644 |
) |
|
$ |
(4,767 |
) |
|
$ |
(6,536 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
Brandon J. Haspett
716-857-7697
Media Contact:
Karen L. Merkel
716-857-7654
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