National Fuel Gas Company (“National Fuel” or the “Company”)
(NYSE:NFG) today announced consolidated results for the third
quarter of its 2020 fiscal year and for the nine months ended June
30, 2020.
FISCAL 2020 THIRD QUARTER
SUMMARY
- GAAP earnings of $41.3 million, or $0.47 per share, which
includes a $13.2 million after-tax impairment of oil and gas
properties, compared to GAAP net income of $63.8 million, or $0.73
per share, in the prior year
- Adjusted operating results of $50.0 million, or $0.57 per
share, compared to $61.8 million, or $0.71 per share, in the prior
year (see non-GAAP reconciliation on page 2)
- Adjusted EBITDA of $171.9 million compared to $182.9 million in
the prior year (non-GAAP reconciliation on page 24)
- Pipeline & Storage Adjusted EBITDA of $50.5 million, an
increase of 35% from the prior year, driven primarily by the
successful resolution of a National Fuel Gas Supply Corporation
rate proceeding, and reduced O&M expense
- E&P segment net production of 56.0 Bcfe, an increase of 1.3
Bcfe from the prior year
- 7.3 Bcf of price-related natural gas curtailments due to
sustained low Appalachian pricing
- Average natural gas prices, after the impact of hedging, of
$1.92 per Mcf, down $0.44 per Mcf from the prior year
- Average oil prices, after the impact of hedging, of $50.70 per
Bbl, down $12.22 per Bbl from the prior year
- Gathering Adjusted EBITDA of $27.8 million, largely unchanged
from the prior year despite the impact of price-related
curtailments
MANAGEMENT COMMENTS ON THIRD QUARTER
RESULTS
David P. Bauer, President and Chief Executive
Officer of National Fuel Gas Company, stated: “The benefits of our
integrated, diversified business model are evident as we move
through fiscal 2020, with strong results from our rate-regulated
subsidiaries providing an important measure of stability in the
face of commodity price headwinds. To the latter point, our
Exploration and Production segment activity level dropped to a
single rig in mid-June and we continue to voluntarily curtail a
portion of our Appalachian spot market volumes, which we anticipate
will continue while low prices persist through the remainder of the
summer.
Turning to fiscal 2021, as we integrate our
recently-closed, highly-accretive Appalachian acquisition into our
longer-term plans, we expect our Upstream and Gathering operations
to immediately generate significant free cash flow. Additionally,
we have line of sight on meaningful growth in our Pipeline &
Storage business, driven largely by near-term expansion and
modernization projects, including our Empire North project which we
expect to come online in the next few months. Overall,
National Fuel is well-positioned to grow our earnings and cash
flows, maintain the strength of our balance sheet, and generate
strong returns for our shareholders in the years ahead.”
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING
RESULTS
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
(in thousands except per share
amounts) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Reported GAAP
Earnings |
$ |
41,250 |
|
|
$ |
63,753 |
|
|
$ |
21,773 |
|
|
$ |
257,009 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
Impairment of oil and gas properties (E&P) |
18,236 |
|
|
— |
|
|
195,997 |
|
|
— |
|
Tax impact of impairment of oil and gas properties |
(4,986 |
) |
|
— |
|
|
(53,489 |
) |
|
— |
|
Deferred tax valuation allowance as of March 31, 2020 |
— |
|
|
— |
|
|
56,770 |
|
|
— |
|
Remeasurement of deferred income taxes under 2017 Tax Reform |
— |
|
|
— |
|
|
— |
|
|
(5,000 |
) |
Mark-to-market adjustments due to hedge ineffectiveness
(E&P) |
— |
|
|
(1,020 |
) |
|
— |
|
|
(783 |
) |
Tax impact of mark-to-market adjustments due to hedge
ineffectiveness |
— |
|
|
214 |
|
|
— |
|
|
164 |
|
Unrealized (gain) loss on other investments (Corporate / All
Other) |
(5,639 |
) |
|
(1,420 |
) |
|
794 |
|
|
1,096 |
|
Tax impact of unrealized (gain) loss on other investments |
1,184 |
|
|
298 |
|
|
(167 |
) |
|
(230 |
) |
Adjusted Operating
Results |
$ |
50,045 |
|
|
$ |
61,825 |
|
|
$ |
221,678 |
|
|
$ |
252,256 |
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
Per Share |
$ |
0.47 |
|
|
$ |
0.73 |
|
|
$ |
0.25 |
|
|
$ |
2.96 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
Impairment of oil and gas properties, net of tax (E&P) |
0.15 |
|
|
— |
|
|
1.63 |
|
|
— |
|
Deferred tax valuation allowance as of March 31, 2020 |
— |
|
|
— |
|
|
0.65 |
|
|
— |
|
Remeasurement of deferred income taxes under 2017 Tax Reform |
— |
|
|
— |
|
|
— |
|
|
(0.06 |
) |
Mark-to-market adjustments due to hedge ineffectiveness, net of tax
(E&P) |
— |
|
|
(0.01 |
) |
|
— |
|
|
(0.01 |
) |
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
(0.05 |
) |
|
(0.01 |
) |
|
0.01 |
|
|
0.01 |
|
Rounding |
— |
|
|
— |
|
|
— |
|
|
0.01 |
|
Adjusted Operating
Results Per Share |
$ |
0.57 |
|
|
$ |
0.71 |
|
|
$ |
2.54 |
|
|
$ |
2.91 |
|
SALE OF TIMBER PROPERTIES
The Company has executed a purchase and sale
agreement to divest substantially all of its Pennsylvania timber
assets for approximately $116 million, subject to customary closing
adjustments. The transaction is expected to close on or
before November 1, 2020. The Company intends to use the
proceeds from this sale to complete the permanent financing of its
recently-closed Appalachian acquisition.
DISCUSSION OF GUIDANCE
UPDATE
National Fuel is revising its fiscal 2020
earnings guidance to reflect the impact of revised commodity price
assumptions for the balance of the fiscal year, projected
price-related Appalachian production curtailments, and the results
of the fiscal third quarter. The Company is now projecting that
earnings, excluding items impacting comparability, will be within
the range of $2.75 to $2.85 per share.
The Company is assuming that NYMEX natural gas
prices will average $1.85 per MMBtu for the remainder of fiscal
2020, down $0.20 per MMBtu from the previous guidance. Based on
current forward differentials between NYMEX and regional spot
prices for natural gas, the Company is assuming that its remaining
approximately 6 Bcf of fiscal 2020 Appalachian production volumes
exposed to the spot market will be curtailed. Taking into
account these assumed curtailments, as well as the Company’s 7.3
Bcf of natural gas curtailments in the third fiscal quarter, the
Company is decreasing its production guidance range to 240 to 245
Bcfe for fiscal 2020. Additionally, the Company is now assuming
that WTI oil prices will average $40.00 per barrel (Bbl) for the
remainder of fiscal 2020, an increase of $17.50 per Bbl from the
$22.50 assumed in the previous guidance. The Company’s other
guidance assumptions remain largely unchanged from the previous
guidance.
The Company is also initiating preliminary
guidance for fiscal 2021. National Fuel is projecting that
its fiscal 2021 earnings will be within a range of $3.40 to $3.70
per share, or $3.55 per share at the midpoint of the range, an
increase of approximately 27% from the midpoint of the Company’s
updated fiscal 2020 guidance range. The Company’s fiscal 2021
earnings projections are being driven largely by an increase in
Seneca’s forecasted natural gas production and the associated
impact on Gathering segment revenues resulting from the Company’s
recent Appalachian acquisition, as well as the expected
commencement of full service on the Company’s Empire North project
in late fiscal 2020.
Seneca’s fiscal 2021 net production is expected
to be in the range of 305 to 335 Bcfe, an increase of 77.5 Bcf
versus fiscal 2020. This expected increase is driven by the
aforementioned acquisition, which includes significant flowing
natural gas production, all of which will be gathered by
Company-owned facilities. As a result, the Company expects
Gathering segment revenues to be in the range of $185 million to
$200 million, an increase of $50 million from the midpoint of the
Company’s fiscal 2020 guidance.
In addition, the Company is projecting its
natural gas price realizations after hedging to increase by
approximately $0.10 per Mcf from its estimated fiscal 2020
realizations, driven in large part by higher expected NYMEX and
regional spot prices for natural gas. Through physical firm
sales contracts in place with third parties, as well as its firm
transport capacity, Seneca currently has secured marketing outlets
for 278 Bcf, or approximately 91%, of its projected fiscal 2021
Appalachian production. Approximately 202 Bcf of these sales, or
66% of the Company’s projected fiscal 2021 Appalachian production,
are either matched with a financial hedge, including a combination
of swaps and no cost collars, or were entered into at a fixed
price.
As a result of the Company’s increased
production base, as well as the highly synergistic nature of the
Company’s Appalachian acquisition, fiscal 2021 Exploration and
Production segment operating costs are expected to be reduced by
approximately $0.10 per Mcfe based on the midpoint of the
respective LOE, G&A, and DD&A guidance ranges.
Based on the Company’s current activity level,
which includes a single drilling rig and completion crew in
Appalachia and reduced activity in California, the Exploration and
Production segment’s fiscal 2021 capital expenditures are expected
to be in the range of $290 million to $330 million, a $75 million
reduction versus fiscal 2020 at the midpoint. Gathering
segment capital expenditures are expected to be $30 million to $40
million in fiscal 2021, a decline of $30 million at the
midpoint.
Pipeline and Storage segment capital
expenditures are expected to be in the range of $250 million to
$300 million. The $100 million increase at the midpoint of
the range is due primarily to spending on the recently-certificated
$280 million FM100 expansion and modernization project that is
expected to add approximately $50 million in annualized revenues
and is anticipated to be placed in service in late calendar
2021. Utility segment capital expenditures are expected to be
modestly increased as compared to fiscal 2020 at $90 million to
$100 million as the Company continues to invest in the
modernization of its gas distribution systems, and expects a return
to spending levels in fiscal 2021 consistent with those experienced
prior to the COVID-19 pandemic.
In total, the Company’s consolidated capital
expenditures in fiscal 2021 are expected to be in a range of $660
million to $770 million, essentially flat versus fiscal 2020 at the
midpoint of the respective ranges.
Additional details on the Company's updated
forecast assumptions and business segment guidance for fiscal 2020
and fiscal 2021 are outlined in the table on page 8.
MANAGEMENT COMMENTS ON COMPANY’S
COVID-19 RESPONSE
Mr. Bauer added: “During these unprecedented
times, the safety and well-being of our workforce, customers, and
communities in which we operate is our top priority. We
continue to support our employees through a number of initiatives,
including providing a safe work environment, offering flexible work
arrangements to meet the child care needs of our employees, and the
avoidance of workforce reductions and furloughs. While
National Fuel, like so many companies across the globe, has
encountered new challenges in connection with the COVID-19
pandemic, I am proud to say that, to date, the Company has not
experienced significant operational or financial impacts during
this crisis – a testament to the diligence and commitment of our
approximately 2,100 employees, who continue to meet and exceed the
challenges of this ‘new normal'.
Furthermore, with operations that span the
entirety of the natural gas value chain, we see firsthand the
critical role that our business, and the energy industry, plays in
meeting the daily needs of our communities – producing, gathering,
transporting, and ultimately delivering critical low-cost energy
supplies to the homes that have become our offices, schools, and
gyms, and the manufacturing facilities that produce our food,
supplies, and personal protective equipment.”
DISCUSSION OF THIRD QUARTER RESULTS BY
SEGMENT
The following earnings discussion of each
operating segment for the quarter ended June 30, 2020 is summarized
in a tabular form on pages 9 and 10 of this report (earnings
drivers for the nine months ended June 30, 2020 are summarized on
pages 11 and 12). It may be helpful to refer to those tables
while reviewing this discussion. As of the quarter ended
September 30, 2019, the Company is no longer reporting the Energy
Marketing operations as a reportable segment. The Energy
Marketing operations have been included in the All Other category
in the disclosures and tables that follow below. Prior year
segment information has been restated to reflect this change in
presentation.
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 |
|
June 30, |
(in thousands) |
2020 |
|
2019 |
|
Variance |
GAAP
Earnings |
$ |
(6,434 |
) |
|
$ |
26,512 |
|
|
$ |
(32,946 |
) |
Impairment of oil and gas
properties, net of tax |
13,250 |
|
|
— |
|
|
13,250 |
|
Mark-to-market adjustments due
to hedge ineffectiveness, net of tax |
— |
|
|
(806 |
) |
|
806 |
|
Adjusted Operating
Results |
$ |
6,816 |
|
|
$ |
25,706 |
|
|
$ |
(18,890 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
64,780 |
|
|
$ |
88,175 |
|
|
$ |
(23,395 |
) |
Seneca’s third quarter GAAP earnings decreased
$32.9 million versus the prior year, which includes the impact of a
non-cash, pre-tax impairment of Seneca’s oil and natural gas
reserves.
During the third quarter, Seneca recorded a
non-cash, pre-tax impairment charge of $18.2 million ($13.2 million
after-tax) to write-down the value of Seneca’s oil and natural gas
reserves under the full cost method of accounting. The full cost
method of accounting requires that Seneca perform a quarterly
“ceiling test” to compare the present value of future revenues from
its oil and natural gas reserves based on an unweighted arithmetic
average of the first day of the month oil and gas prices for each
month within the 12-month period prior to the end of the reporting
period (“the ceiling”) with the book value of those reserves at the
balance sheet date. If the book value of the reserves exceeds
the ceiling, a non-cash impairment charge must be recorded in order
to reduce the book value of the reserves to the calculated
ceiling. It is anticipated that the current low commodity
price environment will lead to significant non-cash impairments
during the fourth quarter of fiscal 2020 and likely in the first
quarter of fiscal 2021 as well.
Excluding this item, as well as the net impact
of non-cash mark-to-market adjustments recorded in the prior year
relating to hedge ineffectiveness (see table above), Seneca’s third
quarter earnings decreased $18.9 million as the positive impacts of
higher production and lower operating expenses were more than
offset by the negative impacts of lower realized natural gas and
crude oil prices and higher interest expense.
Seneca produced 56.0 Bcfe during the third
quarter, an increase of 1.3 Bcfe, or 2%, from the prior year.
Despite approximately 7.3 Bcf of price-related curtailments,
natural gas production increased 1.3 Bcf, or 2%, due primarily to
production from new Marcellus and Utica wells in Appalachia. Net
production increased 3.2 Bcf to 27.0 Bcf in Seneca’s Western
Development Area ("WDA"), primarily due to the ongoing development
program in the region. Net production decreased 1.9 Bcf to 25.1 Bcf
in the Eastern Development Area ("EDA"), primarily due to natural
declines in the EDA-Tioga area, partly offset by higher production
in the EDA-Lycoming area where increased production from new pads
exceeded price-related curtailments. Oil production for the
third quarter increased 8,000 Bbls, or 1%, from the prior year as
new production continues to come on-line from Seneca’s development
of the Pioneer assets in the Midway Sunset area of California, as
well as the Coalinga assets.
Seneca's average realized natural gas price,
after the impact of hedging and transportation costs, was $1.92 per
Mcf, a decrease of $0.44 per Mcf from the prior year. This decline
was largely due to lower NYMEX prices and lower spot pricing at
local sales points in Pennsylvania. Seneca's average realized oil
price, after the impact of hedging, was $50.70 per Bbl, a decrease
of $12.22 per Bbl compared to the prior year. The decline in
oil price realizations was due primarily to lower market prices for
crude oil during the quarter and reduced price differentials at
local sales points in California.
Lease operating and transportation (“LOE”)
expense decreased $1.6 million primarily due to a decline in well
repairs, workover activity and steam fuel costs in California,
partly offset by higher transportation costs in Appalachia due to
increased production. LOE expense includes the fees paid to
the Company’s Gathering segment for gathering and compression
services used to connect Seneca’s Marcellus and Utica production to
sales points along interstate pipelines. Depreciation,
depletion and amortization (“DD&A”) expense decreased $0.7
million due largely to the ceiling test impairment recorded in the
second quarter, partially offset by higher production. Seneca’s
general and administrative (“G&A”) expense decreased $1.7
million despite a modest increase in production primarily due to
lower personnel costs. On a unit of production basis, G&A, LOE
and DD&A expenses during the quarter collectively decreased
$0.11 per Mcfe, or 6% decrease, on combined G&A, LOE and
DD&A expenses during the quarter.
Midstream Businesses
Pipeline and Storage Segment
The Pipeline and Storage segment’s operations
are carried out by National Fuel Gas Supply Corporation (“Supply
Corporation”) and Empire Pipeline, Inc. (“Empire”). The
Pipeline and Storage segment provides natural gas transportation
and storage services to affiliated and non-affiliated companies
through an integrated system of pipelines and underground natural
gas storage fields in western New York and Pennsylvania.
|
Three Months Ended |
|
June 30, |
(in thousands) |
2020 |
|
2019 |
|
Variance |
GAAP Earnings |
$ |
22,623 |
|
$ |
15,792 |
|
$ |
6,831 |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
50,511 |
|
$ |
37,328 |
|
$ |
13,183 |
The Pipeline and Storage segment’s third quarter
GAAP earnings increased $6.8 million versus the prior year
primarily driven by higher operating revenues and lower operation
and maintenance (“O&M”) expenses, partially offset by higher
DD&A expense. The increase in operating revenues of $8.8
million, or 13%, was largely due to an increase in Supply
Corporation's transportation and storage rates effective February
1, 2020, in accordance with Supply Corporation's rate case
settlement, coupled with new demand charges for transportation
service from Supply Corporation's Line N to Monaca expansion
project, which was placed in service on November 1, 2019.
O&M expense decreased $4.8 million primarily due to lower
compressor and facility maintenance costs, lower pipeline integrity
costs and lower personnel costs. The increase in DD&A
expense of $3.2 million was primarily attributable to an increase
in Supply Corporation's depreciation rates associated with its rate
case settlement.
Gathering Segment
The Gathering segment’s operations are carried
out by National Fuel Gas Midstream Company, LLC’s limited liability
companies. The Gathering segment constructs, owns and operates
natural gas gathering pipelines and compression facilities in the
Appalachian region, which currently deliver Seneca’s gross
Appalachian production to the interstate pipeline system.
|
Three Months Ended |
|
June 30, |
(in thousands) |
2020 |
|
2019 |
|
Variance |
GAAP
Earnings |
$ |
15,239 |
|
$ |
14,638 |
|
$ |
601 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
27,844 |
|
$ |
27,852 |
|
$ |
(8 |
) |
The Gathering segment’s third quarter GAAP
earnings increased $0.6 million versus the prior year. The increase
was primarily driven by higher operating revenues and the impact of
a lower effective income tax rate, which were partially offset by
higher O&M expense. Operating revenues increased $0.4
million primarily due to a 0.6 Bcf increase in gathered volumes
from Seneca’s Appalachian natural gas production. The reduction in
the Gathering segment's effective tax rate was primarily due to
deferred state tax adjustments that reduced income tax expense in
the current quarter. The $0.4 million increase in O&M
expense was due to an increase in compressor facility and
maintenance activity during the current quarter.
Downstream Businesses
Utility Segment
The Utility segment operations are carried out
by National Fuel Gas Distribution Corporation (“Distribution”),
which sells or transports natural gas to customers located in
western New York and northwestern Pennsylvania.
|
Three Months Ended |
|
June 30, |
(in thousands) |
2020 |
|
2019 |
|
Variance |
GAAP Earnings |
$ |
6,254 |
|
$ |
7,362 |
|
$ |
(1,108 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
30,214 |
|
$ |
33,163 |
|
$ |
(2,949 |
) |
The Utility segment’s third quarter GAAP
earnings decreased $1.1 million over the prior year primarily due
to higher O&M expense, partially offset by higher customer
margin (operating revenues less purchased gas sold). The $4.5
million increase in O&M expense was primarily attributable to
two factors. First, the Company’s response to COVID-19
increased expenditures on personal protective equipment and led to
a higher share of personnel costs allocated to operating expense
due to reduced capital expenditure-related activities resulting
from governmental pandemic restrictions. Additionally, the
Company recorded incremental expense to increase its allowance for
uncollectible accounts due to the potential for future customer
non-payment resulting from the current economic backdrop. The
increase in customer margin was due primarily to colder weather in
Distribution's Pennsylvania service territory and higher revenues
earned through the Company’s system modernization tracking
mechanism in New York, which allows for the timely recovery of
system modernization investments in Distribution’s New York service
territory. These positive items were partially offset by the
impact of adjustments related to regulatory rate and cost recovery
mechanisms subject to annual reconciliation. Weather in
Distribution's Pennsylvania service territory was 19% colder on
average than last year, resulting in an increase in residential and
transportation customer throughput and revenues. The impact of
weather variations on earnings in Distribution's New York service
territory is largely mitigated by that jurisdiction's weather
normalization clause.
Corporate and All Other
The Company’s operations that are included in
Corporate and All Other, which now include the Company’s energy
marketing business, generated combined earnings of $3.6 million in
the current year third quarter, which was a $4.2 million increase
from a combined loss of $0.6 million generated in the prior-year
third quarter. The increase in earnings was driven primarily
by higher unrealized gains on investment securities and higher
energy marketing margins quarter over quarter, partially offset by
higher interest expense. The increase in interest expense was
mainly due to short-term borrowings from the Company's committed
credit facility and uncommitted lines of credit during the current
year third quarter.
EARNINGS TELECONFERENCE
The Company will host a conference call on
Friday, August 7, 2020, at 11 a.m. Eastern Time to discuss this
announcement. Pre-registration is required to access the
teleconference by phone in a listen-only mode by following this
link:
http://www.directeventreg.com/registration/event/9086223. To
access the webcast, visit the Events Calendar under the News &
Events page on the NFG Investor Relations website at
investor.nationalfuelgas.com. A replay of the conference call
will be available approximately two hours following the
teleconference at the same website link and by phone (toll-free) at
800-585-8367 using conference ID number “9086223”. Both the
webcast and conference call replay will be available until the
close of business on Friday, August 14, 2020.
National Fuel is an integrated energy company
reporting financial results for four operating segments:
Exploration and Production, Pipeline and Storage, Gathering, and
Utility. Additional information about National Fuel is
available at www.nationalfuelgas.com.
Certain statements contained herein, including
statements identified by the use of the words “anticipates,”
“estimates,” “expects,” “forecasts,” “intends,” “plans,”
“predicts,” “projects,” “believes,” “seeks,” “will,” “may” and
similar expressions, and statements which are other than statements
of historical facts, are “forward-looking statements” as defined by
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, which
could cause actual results or outcomes to differ materially from
those expressed in the forward-looking statements. The Company’s
expectations, beliefs and projections contained herein are
expressed in good faith and are believed to have a reasonable
basis, but there can be no assurance that such expectations,
beliefs or projections will result or be achieved or accomplished.
In addition to other factors, the following are important factors
that could cause actual results to differ materially from those
discussed in the forward-looking statements: the Company's
ability to successfully integrate acquired assets, including
Shell's upstream assets and midstream gathering assets in
Pennsylvania, and achieve expected cost synergies; impairments
under the SEC’s full cost ceiling test for natural gas and oil
reserves; changes in the price of natural gas or oil; the length
and severity of the recent COVID-19 pandemic, including its impacts
across our businesses on demand, operations, global supply chains
and liquidity; changes in economic conditions, including global,
national or regional recessions, and their effect on the demand
for, and customers’ ability to pay for, the Company’s products and
services; the creditworthiness or performance of the Company’s key
suppliers, customers and counterparties; financial and economic
conditions, including the availability of credit, and occurrences
affecting the Company’s ability to obtain financing on acceptable
terms for working capital, capital expenditures and other
investments, including any downgrades in the Company’s credit
ratings and changes in interest rates and other capital market
conditions; changes in laws, regulations or judicial
interpretations to which the Company is subject, including those
involving derivatives, taxes, safety, employment, climate change,
other environmental matters, real property, and exploration and
production activities such as hydraulic fracturing; delays or
changes in costs or plans with respect to Company projects or
related projects of other companies, including disruptions due to
the COVID-19 pandemic, as well as difficulties or delays in
obtaining necessary governmental approvals, permits or orders or in
obtaining the cooperation of interconnecting facility operators;
the Company's ability to complete planned strategic transactions;
governmental/regulatory actions, initiatives and proceedings,
including those involving rate cases (which address, among other
things, target rates of return, rate design and retained natural
gas), environmental/safety requirements, affiliate relationships,
industry structure, and franchise renewal; changes in price
differentials between similar quantities of natural gas or oil sold
at different geographic locations, and the effect of such changes
on commodity production, revenues and demand for pipeline
transportation capacity to or from such locations; the impact
of information technology disruptions, cybersecurity or data
security breaches; factors affecting the Company’s ability to
successfully identify, drill for and produce economically viable
natural gas and oil reserves, including among others geology, lease
availability, title disputes, weather conditions, shortages, delays
or unavailability of equipment and services required in drilling
operations, insufficient gathering, processing and transportation
capacity, the need to obtain governmental approvals and permits,
and compliance with environmental laws and regulations; increasing
health care costs and the resulting effect on health insurance
premiums and on the obligation to provide other post-retirement
benefits; other changes in price differentials between similar
quantities of natural gas or oil having different quality, heating
value, hydrocarbon mix or delivery date; the cost and effects of
legal and administrative claims against the Company or activist
shareholder campaigns to effect changes at the Company; uncertainty
of oil and gas reserve estimates; significant differences between
the Company’s projected and actual production levels for natural
gas or oil; changes in demographic patterns and weather conditions;
changes in the availability, price or accounting treatment of
derivative financial instruments; changes in laws, actuarial
assumptions, the interest rate environment and the return on
plan/trust assets related to the Company’s pension and other
post-retirement benefits, which can affect future funding
obligations and costs and plan liabilities; economic disruptions or
uninsured losses resulting from major accidents, fires, severe
weather, natural disasters, terrorist activities or acts of war;
significant differences between the Company’s projected and actual
capital expenditures and operating expenses; or increasing costs of
insurance, changes in coverage and the ability to obtain insurance.
The Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date
thereof.
NATIONAL FUEL GAS
COMPANYAND SUBSIDIARIES
GUIDANCE SUMMARY
As discussed on page 2, the Company is revising
its earnings guidance for fiscal 2020 and initiating preliminary
guidance for fiscal 2021. Additional details on the Company's
forecast assumptions and business segment guidance for fiscal 2020
and fiscal 2021 are outlined in the table below.
While the Company expects to incur an additional
ceiling test impairment charge in the quarter ended September 30,
2020 and likely in the first quarter of fiscal 2021 as well, the
amount of these charges is not reasonably determinable at this
time. The amount of any ceiling test charge is determined at the
end of the applicable quarter and will depend on many factors,
including additions to or subtractions from proved reserves,
fluctuations in oil and gas prices, and income tax effects related
to the differences between the book and tax basis of the Company’s
oil and gas properties. Some or all of these factors are likely to
be significant. Because the expected ceiling test impairment
charges and other potential items impacting comparability are not
reasonably determinable at this time, the Company is unable to
provide earnings guidance other than on a non-GAAP basis that
excludes these items.
|
Updated FY 2020 Guidance |
|
Preliminary FY 2021 Guidance |
Consolidated Earnings
per Share, excluding items impacting comparability |
$2.75 to $2.85 |
|
$3.40 to $3.70 |
Consolidated Effective
Tax Rate |
~ 26% |
|
~ 26% |
|
|
|
|
Capital
Expenditures (Millions) |
|
|
|
Exploration and
Production |
$375 - $395 |
|
$290 - $330 |
Pipeline and
Storage |
$165 - $185 |
|
$250 - $300 |
Gathering |
$60 - $70 |
|
$30 - $40 |
Utility |
$80 - $90 |
|
$90 - $100 |
Consolidated
Capital Expenditures |
$680 - $740 |
|
$660 - $770 |
|
|
|
|
Exploration &
Production Segment Guidance |
|
|
|
|
|
|
|
Commodity Price
Assumptions |
|
|
|
NYMEX natural gas
price |
$1.85 /MMBtu |
|
$2.65 /MMBtu |
Appalachian basin spot
price (winter I summer) (1) |
— |
|
|
$2.25 /MMBtu | $2.00 /MMBtu |
NYMEX (WTI) crude oil
price |
$40.00 /Bbl |
|
$42.50 /Bbl |
California oil price
premium (% of WTI) |
95 |
% |
|
95 |
% |
|
|
|
|
Production (Bcfe) |
|
|
|
East Division -
Appalachia |
224 to 229 |
|
290 to 320 |
West Division -
California |
~ 16 |
|
~ 15 |
Total
Production (1) |
240 to 245 |
|
305 to 335 |
|
|
|
|
E&P
Operating Costs ($/Mcfe) |
|
|
|
LOE |
$0.84 - $0.87 |
|
$0.83 - $0.85 |
G&A |
$0.26 - $0.27 |
|
$0.21 - $0.23 |
DD&A |
$0.70 - $0.74 |
|
$0.65 - $0.70 |
|
|
|
|
Other Business Segment
Guidance (Millions) |
|
|
|
Gathering Segment
Revenues |
$140 - $145 |
|
$185 - $200 |
Pipeline and Storage
Segment Revenues |
$305 - $310 |
|
$330 - $340 |
(1) Fiscal
2020 production assumes certain curtailments of all remaining
Appalachian spot production volumes.
|
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
QUARTER ENDED JUNE 30, 2020 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2019
GAAP earnings |
$ |
26,512 |
|
|
$ |
15,792 |
|
|
$ |
14,638 |
|
|
$ |
7,362 |
|
|
$ |
(551 |
) |
|
$ |
63,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market adjustments due
to hedge ineffectiveness |
(1,020 |
) |
|
|
|
|
|
|
|
|
|
(1,020 |
) |
Tax impact of mark-to-market
adjustments due to hedge ineffectiveness |
214 |
|
|
|
|
|
|
|
|
|
|
214 |
|
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
(1,420 |
) |
|
(1,420 |
) |
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
298 |
|
|
298 |
|
Third quarter 2019
adjusted operating results |
25,706 |
|
|
15,792 |
|
|
14,638 |
|
|
7,362 |
|
|
(1,673 |
) |
|
61,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
2,328 |
|
|
|
|
|
|
|
|
|
|
2,328 |
|
Higher (lower) crude oil
production |
419 |
|
|
|
|
|
|
|
|
|
|
419 |
|
Higher (lower) realized
natural gas prices, after hedging |
(17,957 |
) |
|
|
|
|
|
|
|
|
|
(17,957 |
) |
Higher (lower) realized crude
oil prices, after hedging |
(5,644 |
) |
|
|
|
|
|
|
|
|
|
(5,644 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
6,988 |
|
|
335 |
|
|
|
|
|
|
7,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
1,193 |
|
|
|
|
1,193 |
|
System modernization tracker
revenues |
|
|
|
|
|
|
742 |
|
|
|
|
742 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
(692 |
) |
|
|
|
(692 |
) |
Higher (lower) energy
marketing margins |
|
|
|
|
|
|
|
|
1,639 |
|
|
1,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
1,230 |
|
|
|
|
|
|
|
|
|
|
1,230 |
|
Lower (higher) operating
expenses |
917 |
|
|
3,798 |
|
|
(343 |
) |
|
(3,609 |
) |
|
|
|
763 |
|
Lower (higher) property,
franchise and other taxes |
|
|
(419 |
) |
|
|
|
|
|
|
|
(419 |
) |
Lower (higher) depreciation /
depletion |
540 |
|
|
(2,526 |
) |
|
|
|
|
|
333 |
|
|
(1,653 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
(412 |
) |
|
(678 |
) |
|
|
|
758 |
|
|
324 |
|
|
(8 |
) |
(Higher) lower interest
expense |
(374 |
) |
|
(435 |
) |
|
|
|
|
|
(1,177 |
) |
|
(1,986 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
(162 |
) |
|
55 |
|
|
646 |
|
|
278 |
|
|
(396 |
) |
|
421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding |
225 |
|
|
48 |
|
|
(37 |
) |
|
222 |
|
|
63 |
|
|
521 |
|
Third quarter 2020
adjusted operating results |
6,816 |
|
|
22,623 |
|
|
15,239 |
|
|
6,254 |
|
|
(887 |
) |
|
50,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas
properties |
(18,236 |
) |
|
|
|
|
|
|
|
|
|
(18,236 |
) |
Tax impact of impairment of
oil and gas properties |
4,986 |
|
|
|
|
|
|
|
|
|
|
4,986 |
|
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
5,639 |
|
|
5,639 |
|
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
(1,184 |
) |
|
(1,184 |
) |
Third quarter 2020
GAAP earnings |
$ |
(6,434 |
) |
|
$ |
22,623 |
|
|
$ |
15,239 |
|
|
$ |
6,254 |
|
|
$ |
3,568 |
|
|
$ |
41,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect
intercompany eliminations |
|
|
|
|
|
|
|
|
|
|
|
** Operating
results have been calculated using the 21% federal statutory rate
effective for the 2019 fiscal year. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
QUARTER ENDED JUNE 30, 2020 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2019
GAAP earnings per share |
$ |
0.31 |
|
|
|
$ |
0.18 |
|
|
$ |
0.17 |
|
|
$ |
0.08 |
|
|
$ |
(0.01 |
) |
|
$ |
0.73 |
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market adjustments due
to hedge ineffectiveness, net of tax |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
(0.01 |
) |
|
(0.01 |
) |
Third quarter 2019
adjusted operating results per share |
0.30 |
|
|
|
0.18 |
|
|
0.17 |
|
|
0.08 |
|
|
(0.02 |
) |
|
0.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
0.03 |
|
Higher (lower) crude oil
production |
— |
|
|
|
|
|
|
|
|
|
|
|
— |
|
Higher (lower) realized
natural gas prices, after hedging |
(0.20 |
) |
|
|
|
|
|
|
|
|
|
|
(0.20 |
) |
Higher (lower) realized crude
oil prices, after hedging |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
0.08 |
|
|
— |
|
|
|
|
|
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
0.01 |
|
|
|
|
0.01 |
|
System modernization tracker
revenues |
|
|
|
|
|
|
0.01 |
|
|
|
|
0.01 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
(0.01 |
) |
|
|
|
(0.01 |
) |
Higher (lower) energy
marketing margins |
|
|
|
|
|
|
|
|
0.02 |
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
0.01 |
|
Lower (higher) operating
expenses |
0.01 |
|
|
|
0.04 |
|
|
— |
|
|
(0.04 |
) |
|
|
|
0.01 |
|
Lower (higher) property,
franchise and other taxes |
|
|
— |
|
|
|
|
|
|
|
|
— |
|
Lower (higher) depreciation /
depletion |
0.01 |
|
|
|
(0.03 |
) |
|
|
|
|
|
— |
|
|
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
— |
|
|
|
(0.01 |
) |
|
|
|
0.01 |
|
|
— |
|
|
— |
|
(Higher) lower interest
expense |
— |
|
|
|
— |
|
|
|
|
|
|
(0.01 |
) |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
— |
|
|
|
— |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding |
(0.02 |
) |
|
|
— |
|
|
(0.01 |
) |
|
0.01 |
|
|
— |
|
|
(0.02 |
) |
Third quarter 2020
adjusted operating results per share |
0.08 |
|
|
|
0.26 |
|
|
0.17 |
|
|
0.07 |
|
|
(0.01 |
) |
|
0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas
properties, net of tax |
(0.15 |
) |
|
|
|
|
|
|
|
|
|
|
(0.15 |
) |
Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
0.05 |
|
|
0.05 |
|
Third quarter 2020
GAAP earnings per share |
$ |
(0.07 |
) |
|
|
$ |
0.26 |
|
|
$ |
0.17 |
|
|
$ |
0.07 |
|
|
$ |
0.04 |
|
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect
intercompany eliminations |
|
|
|
|
|
|
|
|
|
|
|
** Operating
results have been calculated using the 21% federal statutory rate
effective for the 2019 fiscal year. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
NINE MONTHS ENDED JUNE 30, 2020 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
(Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
Consolidated* |
|
|
|
|
|
|
|
|
|
|
|
Nine months ended June
30, 2019 GAAP earnings |
$ |
86,599 |
|
|
$ |
58,643 |
|
|
$ |
41,511 |
|
|
$ |
68,600 |
|
|
$ |
1,656 |
|
|
$ |
257,009 |
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
Remeasurement of deferred
taxes under 2017 Tax Reform |
(990 |
) |
|
|
|
(500 |
) |
|
|
|
(3,510 |
) |
|
(5,000 |
) |
Mark-to-market adjustments due
to hedge ineffectiveness |
(783 |
) |
|
|
|
|
|
|
|
|
(783 |
) |
Tax impact of mark-to-market
adjustments due to hedge ineffectiveness |
164 |
|
|
|
|
|
|
|
|
|
164 |
|
Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
1,096 |
|
|
1,096 |
|
Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
(230 |
) |
|
(230 |
) |
Nine months ended June
30, 2019 adjusted operating results |
84,990 |
|
|
58,643 |
|
|
41,011 |
|
|
68,600 |
|
|
(988 |
) |
|
252,256 |
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
Higher (lower) natural gas
production |
41,557 |
|
|
|
|
|
|
|
|
|
41,557 |
|
Higher (lower) crude oil
production |
3,930 |
|
|
|
|
|
|
|
|
|
3,930 |
|
Higher (lower) realized
natural gas prices, after hedging |
(49,552 |
) |
|
|
|
|
|
|
|
|
(49,552 |
) |
Higher (lower) realized crude
oil prices, after hedging |
(6,421 |
) |
|
|
|
|
|
|
|
|
(6,421 |
) |
|
|
|
|
|
|
|
|
|
|
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
Higher (lower) operating
revenues |
|
|
8,613 |
|
|
9,023 |
|
|
|
|
|
17,636 |
|
|
|
|
|
|
|
|
|
|
|
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
Impact of usage and
weather |
|
|
|
|
|
|
(2,481 |
) |
|
|
(2,481 |
) |
System modernization tracker
revenues |
|
|
|
|
|
|
2,888 |
|
|
|
2,888 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
771 |
|
|
|
771 |
|
Higher (lower) energy
marketing margins |
|
|
|
|
|
|
|
|
2,530 |
|
|
2,530 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating
and transportation expenses |
(9,851 |
) |
|
|
|
|
|
|
|
|
(9,851 |
) |
Lower (higher) operating
expenses |
|
|
5,058 |
|
|
(2,381 |
) |
|
(6,322 |
) |
|
750 |
|
|
(2,895 |
) |
Lower (higher) property,
franchise and other taxes |
1,592 |
|
|
(1,633 |
) |
|
|
|
|
|
|
(41 |
) |
Lower (higher) depreciation /
depletion |
(14,230 |
) |
|
(4,544 |
) |
|
(647 |
) |
|
(821 |
) |
|
435 |
|
|
(19,807 |
) |
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
(Higher) lower other
deductions |
(1,125 |
) |
|
(1,594 |
) |
|
|
|
694 |
|
|
1,329 |
|
|
(696 |
) |
(Higher) lower interest
expense |
(1,566 |
) |
|
|
|
|
|
935 |
|
|
(1,894 |
) |
|
(2,525 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax
expense / effective tax rate |
(3,143 |
) |
|
(2,404 |
) |
|
432 |
|
|
(166 |
) |
|
(660 |
) |
|
(5,941 |
) |
|
|
|
|
|
|
|
|
|
|
|
All other / rounding |
(943 |
) |
|
676 |
|
|
(126 |
) |
|
237 |
|
|
476 |
|
|
320 |
|
Nine months ended June
30, 2020 adjusted operating results |
45,238 |
|
|
62,815 |
|
|
47,312 |
|
|
64,335 |
|
|
1,978 |
|
|
221,678 |
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas
properties |
(195,997 |
) |
|
|
|
|
|
|
|
|
(195,997 |
) |
Tax impact of impairment of
oil and gas properties |
53,489 |
|
|
|
|
|
|
|
|
|
53,489 |
|
Deferred tax valuation
allowance |
(60,463 |
) |
|
|
|
3,769 |
|
|
|
|
(76 |
) |
|
(56,770 |
) |
Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
(794 |
) |
|
(794 |
) |
Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
167 |
|
|
167 |
|
Nine months ended June
30, 2020 GAAP earnings |
$ |
(157,733 |
) |
|
$ |
62,815 |
|
|
$ |
51,081 |
|
|
$ |
64,335 |
|
|
$ |
1,275 |
|
|
$ |
21,773 |
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not
reflect intercompany eliminations |
** Operating
results have been calculated using the 21% federal statutory rate
effective for the 2019 fiscal year. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
NATIONAL FUEL GAS COMPANY |
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
NINE MONTHS ENDED JUNE 30, 2020 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
|
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
Nine months ended June 30, 2019 GAAP earnings per
share |
$ |
1.00 |
|
|
$ |
0.68 |
|
|
$ |
0.48 |
|
|
$ |
0.79 |
|
|
$ |
0.01 |
|
|
$ |
2.96 |
|
Items
impacting comparability: |
|
|
|
|
|
|
|
|
|
|
|
Remeasurement of
deferred taxes under 2017 Tax Reform |
(0.01 |
) |
|
|
|
(0.01 |
) |
|
|
|
(0.04 |
) |
|
(0.06 |
) |
Mark-to-market
adjustments due to hedge ineffectiveness, net of tax |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
(0.01 |
) |
Unrealized (gain)
loss on other investments, net of tax |
|
|
|
|
|
|
|
|
0.01 |
|
|
0.01 |
|
Rounding |
|
|
|
|
|
|
|
|
0.01 |
|
|
0.01 |
|
Nine
months ended June 30, 2019 adjusted operating results per
share |
0.98 |
|
|
0.68 |
|
|
0.47 |
|
|
0.79 |
|
|
(0.01 |
) |
|
2.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of
adjusted operating results** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower)
natural gas production |
0.48 |
|
|
|
|
|
|
|
|
|
|
0.48 |
|
Higher (lower)
crude oil production |
0.04 |
|
|
|
|
|
|
|
|
|
|
0.04 |
|
Higher (lower)
realized natural gas prices, after hedging |
(0.57 |
) |
|
|
|
|
|
|
|
|
|
(0.57 |
) |
Higher (lower)
realized crude oil prices, after hedging |
(0.07 |
) |
|
|
|
|
|
|
|
|
|
(0.07 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Higher (lower)
operating revenues |
|
|
0.10 |
|
|
0.10 |
|
|
|
|
|
|
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
Impact of usage
and weather |
|
|
|
|
|
|
(0.03 |
) |
|
|
|
(0.03 |
) |
System
modernization tracker revenues |
|
|
|
|
|
|
0.03 |
|
|
|
|
0.03 |
|
Regulatory revenue
adjustments |
|
|
|
|
|
|
0.01 |
|
|
|
|
0.01 |
|
Higher (lower)
energy marketing margins |
|
|
|
|
|
|
|
|
0.03 |
|
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher)
lease operating and transportation expenses |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
(0.11 |
) |
Lower (higher)
operating expenses |
|
|
0.06 |
|
|
(0.03 |
) |
|
(0.07 |
) |
|
0.01 |
|
|
(0.03 |
) |
Lower (higher)
property, franchise and other taxes |
0.02 |
|
|
(0.02 |
) |
|
|
|
|
|
|
|
— |
|
Lower (higher)
depreciation / depletion |
(0.16 |
) |
|
(0.05 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
— |
|
|
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
(Higher) lower
other deductions |
(0.01 |
) |
|
(0.02 |
) |
|
|
|
0.01 |
|
|
0.02 |
|
|
— |
|
(Higher) lower
interest expense |
(0.02 |
) |
|
|
|
|
|
0.01 |
|
|
(0.02 |
) |
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
Lower (higher)
income tax expense / effective tax rate |
(0.04 |
) |
|
(0.03 |
) |
|
— |
|
|
— |
|
|
(0.01 |
) |
|
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
All other /
rounding |
(0.02 |
) |
|
— |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
(0.01 |
) |
Nine
months ended June 30, 2020 adjusted operating results per
share |
0.52 |
|
|
0.72 |
|
|
0.54 |
|
|
0.74 |
|
|
0.02 |
|
|
2.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Items
impacting comparability: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil
and gas properties, net of tax |
(1.63 |
) |
|
|
|
|
|
|
|
|
|
(1.63 |
) |
Deferred tax
valuation allowance |
(0.69 |
) |
|
|
|
0.04 |
|
|
|
|
— |
|
|
(0.65 |
) |
Unrealized gain
(loss) on other investments, net of tax |
|
|
|
|
|
|
|
|
(0.01 |
) |
|
(0.01 |
) |
Rounding |
(0.01 |
) |
|
|
|
|
|
|
|
0.01 |
|
|
— |
|
Nine
months ended June 30, 2020 GAAP earnings per share |
$ |
(1.81 |
) |
|
$ |
0.72 |
|
|
$ |
0.58 |
|
|
$ |
0.74 |
|
|
$ |
0.02 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not
reflect intercompany eliminations |
** Operating
results have been calculated using the 21% federal statutory rate
effective for the 2019 fiscal year. |
*** Downstream
margin defined as operating revenues less purchased gas
expense. |
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
(Thousands of
Dollars, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
|
(Unaudited) |
|
(Unaudited) |
SUMMARY OF
OPERATIONS |
2020 |
|
2019 |
|
2020 |
|
|
2019 |
|
Operating
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Utility and Energy Marketing Revenues |
$ |
139,661 |
|
|
$ |
151,312 |
|
|
$ |
650,320 |
|
|
$ |
781,059 |
|
Exploration and Production and Other Revenues |
132,338 |
|
|
159,864 |
|
|
456,073 |
|
|
|
470,267 |
|
Pipeline and Storage and Gathering Revenues |
51,020 |
|
|
46,024 |
|
|
151,908 |
|
|
|
148,665 |
|
|
323,019 |
|
|
357,200 |
|
|
1,258,301 |
|
|
|
1,399,991 |
|
Operating
Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
29,121 |
|
|
47,839 |
|
|
239,663 |
|
|
|
381,537 |
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
|
Utility and Energy Marketing |
43,950 |
|
|
39,607 |
|
|
138,931 |
|
|
|
132,082 |
|
Exploration and Production and Other |
32,404 |
|
|
35,674 |
|
|
109,056 |
|
|
|
108,610 |
|
Pipeline and Storage and Gathering |
24,298 |
|
|
28,675 |
|
|
77,488 |
|
|
|
80,857 |
|
Property, Franchise and Other Taxes |
21,381 |
|
|
21,506 |
|
|
67,268 |
|
|
|
68,046 |
|
Depreciation, Depletion and Amortization |
73,232 |
|
|
71,072 |
|
|
226,062 |
|
|
|
200,990 |
|
Impairment of Oil and Gas Producing Properties |
18,236 |
|
|
— |
|
|
195,997 |
|
|
|
— |
|
|
242,622 |
|
|
244,373 |
|
|
1,054,465 |
|
|
|
972,122 |
|
|
|
|
|
|
|
|
|
|
|
Operating
Income |
80,397 |
|
|
112,827 |
|
|
203,836 |
|
|
|
427,869 |
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense): |
|
|
|
|
|
|
|
|
|
Other Income (Deductions) |
2,547 |
|
|
(1,456 |
) |
|
(17,971 |
) |
|
|
(16,977 |
) |
Interest Expense on Long-Term Debt |
(27,140 |
) |
|
(25,303 |
) |
|
(77,853 |
) |
|
|
(76,016 |
) |
Other Interest Expense |
(1,420 |
) |
|
(1,202 |
) |
|
(4,863 |
) |
|
|
(4,061 |
) |
|
|
|
|
|
|
|
|
|
|
Income Before
Income Taxes |
54,384 |
|
|
84,866 |
|
|
103,149 |
|
|
|
330,815 |
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Expense |
13,134 |
|
|
21,113 |
|
|
81,376 |
|
|
|
73,806 |
|
|
|
|
|
|
|
|
|
|
|
Net Income
Available for Common Stock |
$ |
41,250 |
|
|
$ |
63,753 |
|
|
$ |
21,773 |
|
|
$ |
257,009 |
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Common Share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.47 |
|
|
$ |
0.74 |
|
|
$ |
0.25 |
|
|
$ |
2.98 |
|
Diluted |
$ |
0.47 |
|
|
$ |
0.73 |
|
|
$ |
0.25 |
|
|
$ |
2.96 |
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Common Shares: |
|
|
|
|
|
|
|
|
|
Used in Basic
Calculation |
87,966,289 |
|
|
86,306,434 |
|
|
86,966,448 |
|
|
|
86,208,766 |
|
Used in Diluted
Calculation |
88,323,699 |
|
|
86,839,841 |
|
|
87,346,362 |
|
|
|
86,765,781 |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
|
|
|
June 30, |
|
September 30, |
(Thousands of Dollars) |
2020 |
|
2019 |
|
|
|
|
ASSETS |
|
|
|
Property, Plant and
Equipment |
$ |
11,710,155 |
|
|
$ |
11,204,838 |
|
Less - Accumulated
Depreciation, Depletion and Amortization |
|
6,088,803 |
|
|
|
5,695,328 |
|
Net Property, Plant and Equipment |
|
5,621,352 |
|
|
|
5,509,510 |
|
|
|
|
|
Current Assets: |
|
|
|
Cash and Temporary Cash
Investments |
|
556,264 |
|
|
|
20,428 |
|
Hedging Collateral
Deposits |
|
7,699 |
|
|
|
6,832 |
|
Receivables - Net |
|
136,438 |
|
|
|
139,956 |
|
Unbilled Revenue |
|
17,903 |
|
|
|
18,758 |
|
Gas Stored Underground |
|
14,356 |
|
|
|
36,632 |
|
Materials and Supplies - at
average cost |
|
51,396 |
|
|
|
40,717 |
|
Unrecovered Purchased Gas
Costs |
|
— |
|
|
|
2,246 |
|
Other Current Assets |
|
47,652 |
|
|
|
97,054 |
|
Total Current Assets |
|
831,708 |
|
|
|
362,623 |
|
|
|
|
|
Other Assets: |
|
|
|
Recoverable Future Taxes |
|
116,758 |
|
|
|
115,197 |
|
Unamortized Debt Expense |
|
12,724 |
|
|
|
14,005 |
|
Other Regulatory Assets |
|
160,294 |
|
|
|
167,320 |
|
Deferred Charges |
|
87,956 |
|
|
|
33,843 |
|
Other Investments |
|
144,584 |
|
|
|
144,917 |
|
Goodwill |
|
5,476 |
|
|
|
5,476 |
|
Prepaid Post-Retirement
Benefit Costs |
|
75,235 |
|
|
|
60,517 |
|
Fair Value of Derivative
Financial Instruments |
|
62,817 |
|
|
|
48,669 |
|
Other |
|
81 |
|
|
|
80 |
|
Total Other Assets |
|
665,925 |
|
|
|
590,024 |
|
Total Assets |
$ |
7,118,985 |
|
|
$ |
6,462,157 |
|
|
|
|
|
CAPITALIZATION AND
LIABILITIES |
|
|
|
Capitalization: |
|
|
|
Comprehensive Shareholders'
Equity |
|
|
|
Common Stock, $1 Par Value
Authorized - 200,000,000 Shares; Issued and |
|
|
|
Outstanding - 90,943,652
Shares and 86,315,287 Shares, Respectively |
$ |
90,944 |
|
|
$ |
86,315 |
|
Paid in Capital |
|
999,057 |
|
|
|
832,264 |
|
Earnings Reinvested in the
Business |
|
1,177,650 |
|
|
|
1,272,601 |
|
Accumulated Other
Comprehensive Loss |
|
(41,794 |
) |
|
|
(52,155 |
) |
Total Comprehensive Shareholders' Equity |
|
2,225,857 |
|
|
|
2,139,025 |
|
Long-Term Debt, Net of Current
Portion and Unamortized Discount and Debt Issuance Costs |
|
2,628,782 |
|
|
|
2,133,718 |
|
Total Capitalization |
|
4,854,639 |
|
|
|
4,272,743 |
|
|
|
|
|
Current and Accrued
Liabilities: |
|
|
|
Notes Payable to Banks and
Commercial Paper |
|
— |
|
|
|
55,200 |
|
Current Portion of Long-Term
Debt |
|
— |
|
|
|
— |
|
Accounts Payable |
|
94,123 |
|
|
|
132,208 |
|
Amounts Payable to
Customers |
|
18,772 |
|
|
|
4,017 |
|
Dividends Payable |
|
40,470 |
|
|
|
37,547 |
|
Interest Payable on Long-Term
Debt |
|
31,600 |
|
|
|
18,508 |
|
Customer Advances |
|
561 |
|
|
|
13,044 |
|
Customer Security
Deposits |
|
15,226 |
|
|
|
16,210 |
|
Other Accruals and Current
Liabilities |
|
138,344 |
|
|
|
139,600 |
|
Fair Value of Derivative
Financial Instruments |
|
3,264 |
|
|
|
5,574 |
|
Total Current and Accrued Liabilities |
|
342,360 |
|
|
|
421,908 |
|
|
|
|
|
Deferred Credits: |
|
|
|
Deferred Income Taxes |
|
783,377 |
|
|
|
653,382 |
|
Taxes Refundable to
Customers |
|
357,945 |
|
|
|
366,503 |
|
Cost of Removal Regulatory
Liability |
|
227,043 |
|
|
|
221,699 |
|
Other Regulatory
Liabilities |
|
160,501 |
|
|
|
142,367 |
|
Pension and Other
Post-Retirement Liabilities |
|
127,237 |
|
|
|
133,729 |
|
Asset Retirement
Obligations |
|
128,666 |
|
|
|
127,458 |
|
Other Deferred Credits |
|
137,217 |
|
|
|
122,368 |
|
Total Deferred Credits |
|
1,921,986 |
|
|
|
1,767,506 |
|
Commitments and Contingencies |
|
— |
|
|
|
— |
|
Total Capitalization and Liabilities |
$ |
7,118,985 |
|
|
$ |
6,462,157 |
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
|
|
Nine Months Ended |
|
June 30, |
(Thousands of Dollars) |
2020 |
|
2019 |
|
|
|
|
Operating Activities: |
|
|
|
Net Income Available for
Common Stock |
$ |
21,773 |
|
|
$ |
257,009 |
|
Adjustments to Reconcile Net
Income to Net Cash Provided by Operating Activities: |
|
|
|
Impairment of Oil and Gas Producing Properties |
195,997 |
|
|
— |
|
Depreciation, Depletion and Amortization |
226,062 |
|
|
200,990 |
|
Deferred Income Taxes |
116,332 |
|
|
111,123 |
|
Stock-Based Compensation |
9,716 |
|
|
16,144 |
|
Other |
5,645 |
|
|
7,964 |
|
Change in: |
|
|
|
Receivables and Unbilled Revenue |
4,045 |
|
|
(31,584 |
) |
Gas Stored Underground and Materials and Supplies |
11,597 |
|
|
17,551 |
|
Unrecovered Purchased Gas Costs |
2,246 |
|
|
4,204 |
|
Other Current Assets |
49,312 |
|
|
11,972 |
|
Accounts Payable |
(13,166 |
) |
|
(16,132 |
) |
Amounts Payable to Customers |
14,755 |
|
|
11,152 |
|
Customer Advances |
(12,483 |
) |
|
(13,443 |
) |
Customer Security Deposits |
(984 |
) |
|
(8,902 |
) |
Other Accruals and Current Liabilities |
6,774 |
|
|
36,040 |
|
Other Assets |
(18,215 |
) |
|
(34,594 |
) |
Other Liabilities |
4,464 |
|
|
1,061 |
|
Net Cash Provided by Operating Activities |
$ |
623,870 |
|
|
$ |
570,555 |
|
|
|
|
|
Investing Activities: |
|
|
|
Capital Expenditures |
$ |
(551,004 |
) |
|
$ |
(587,442 |
) |
Acquisition of Upstream Assets
and Midstream Gathering Assets |
(27,050 |
) |
|
— |
|
Other |
4,126 |
|
|
(3,071 |
) |
Net Cash Used in Investing Activities |
$ |
(573,928 |
) |
|
$ |
(590,513 |
) |
|
|
|
|
Financing Activities: |
|
|
|
Changes in Notes Payable to
Banks and Commercial Paper |
$ |
(55,200 |
) |
|
$ |
— |
|
Dividends Paid on Common
Stock |
(112,851 |
) |
|
(109,875 |
) |
Net Proceeds From Issuance of
Long-Term Debt |
493,108 |
|
|
— |
|
Net Proceeds from Issuance
(Repurchase) of Common Stock |
161,704 |
|
|
(8,864 |
) |
Net Cash Provided by (Used in) Financing Activities |
$ |
486,761 |
|
|
$ |
(118,739 |
) |
|
|
|
|
Net Increase (Decrease) in
Cash, Cash Equivalents, and Restricted Cash |
536,703 |
|
|
(138,697 |
) |
Cash, Cash Equivalents, and
Restricted Cash at Beginning of Period |
27,260 |
|
|
233,047 |
|
Cash, Cash Equivalents, and Restricted Cash at June 30 |
$ |
563,963 |
|
|
$ |
94,350 |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
UPSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
EXPLORATION AND
PRODUCTION SEGMENT |
2020 |
|
2019 |
|
Variance |
|
2020 |
2019 |
Variance |
Total Operating Revenues |
$ |
131,228 |
|
|
$ |
158,875 |
|
|
$ |
(27,647 |
) |
|
$ |
452,728 |
|
|
$ |
467,853 |
|
$ |
(15,125 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
|
General and Administrative Expense |
13,968 |
|
|
15,628 |
|
|
(1,660 |
) |
|
46,777 |
|
|
47,940 |
|
(1,163 |
) |
Lease Operating and Transportation Expense |
46,157 |
|
|
47,714 |
|
|
(1,557 |
) |
|
148,687 |
|
|
136,217 |
|
12,470 |
|
All Other Operation and Maintenance Expense |
2,952 |
|
|
2,453 |
|
|
499 |
|
|
8,994 |
|
|
7,705 |
|
1,289 |
|
Property, Franchise and Other Taxes |
3,371 |
|
|
3,885 |
|
|
(514 |
) |
|
11,543 |
|
|
13,558 |
|
(2,015 |
) |
Depreciation, Depletion and Amortization |
39,372 |
|
|
40,055 |
|
|
(683 |
) |
|
128,656 |
|
|
110,643 |
|
18,013 |
|
Impairment of Oil and Gas Producing Properties |
18,236 |
|
|
— |
|
|
18,236 |
|
|
195,997 |
|
|
— |
|
195,997 |
|
|
124,056 |
|
|
109,735 |
|
|
14,321 |
|
|
540,654 |
|
|
316,063 |
|
224,591 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
7,172 |
|
|
49,140 |
|
|
(41,968 |
) |
|
(87,926 |
) |
|
151,790 |
|
(239,716 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
(395 |
) |
|
(4 |
) |
|
(391 |
) |
|
(1,185 |
) |
|
(12 |
) |
(1,173 |
) |
Interest and Other Income |
142 |
|
|
272 |
|
|
(130 |
) |
|
583 |
|
|
834 |
|
(251 |
) |
Interest Expense |
(14,323 |
) |
|
(13,850 |
) |
|
(473 |
) |
|
(42,543 |
) |
|
(40,561 |
) |
(1,982 |
) |
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
(7,404 |
) |
|
35,558 |
|
|
(42,962 |
) |
|
(131,071 |
) |
|
112,051 |
|
(243,122 |
) |
Income Tax Expense
(Benefit) |
(970 |
) |
|
9,046 |
|
|
(10,016 |
) |
|
26,662 |
|
|
25,452 |
|
1,210 |
|
Net Income (Loss) |
$ |
(6,434 |
) |
|
$ |
26,512 |
|
|
$ |
(32,946 |
) |
|
$ |
(157,733 |
) |
|
$ |
86,599 |
|
$ |
(244,332 |
) |
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Share
(Diluted) |
$ |
(0.07 |
) |
|
$ |
0.31 |
|
|
$ |
(0.38 |
) |
|
$ |
(1.81 |
) |
|
$ |
1.00 |
|
$ |
(2.81 |
) |
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
|
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDSTREAM BUSINESSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
(Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
|
PIPELINE AND STORAGE
SEGMENT |
2020 |
|
2019 |
|
Variance |
|
2020 |
2019 |
Variance |
Revenues from External
Customers |
$ |
51,020 |
|
|
$ |
46,024 |
|
|
$ |
4,996 |
|
|
$ |
151,908 |
|
|
$ |
148,663 |
|
|
$ |
3,245 |
|
Intersegment Revenues |
26,793 |
|
|
22,943 |
|
|
3,850 |
|
|
77,370 |
|
|
69,712 |
|
|
|
7,658 |
|
Total Operating Revenues |
77,813 |
|
|
68,967 |
|
|
8,846 |
|
|
229,278 |
|
|
218,375 |
|
|
|
10,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas |
11 |
|
|
70 |
|
|
(59 |
) |
|
1 |
|
|
884 |
|
|
|
(883 |
) |
Operation and Maintenance |
19,262 |
|
|
24,070 |
|
|
(4,808 |
) |
|
62,207 |
|
|
68,610 |
|
|
|
(6,403 |
) |
Property, Franchise and Other
Taxes |
8,029 |
|
|
7,499 |
|
|
530 |
|
|
24,515 |
|
|
22,448 |
|
|
|
2,067 |
|
Depreciation, Depletion and
Amortization |
14,352 |
|
|
11,154 |
|
|
3,198 |
|
|
39,313 |
|
|
33,561 |
|
|
|
5,752 |
|
|
41,654 |
|
|
42,793 |
|
|
(1,139 |
) |
|
126,036 |
|
|
125,503 |
|
|
|
533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
36,159 |
|
|
26,174 |
|
|
9,985 |
|
|
103,242 |
|
|
92,872 |
|
|
|
10,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit (Costs) Credit |
(174 |
) |
|
930 |
|
|
(1,104 |
) |
|
(523 |
) |
|
2,328 |
|
|
|
(2,851 |
|
Interest and Other Income |
1,763 |
|
|
1,517 |
|
|
246 |
|
|
4,851 |
|
|
4,018 |
|
|
|
833 |
|
Interest Expense |
(7,773 |
) |
|
(7,223 |
) |
|
(550 |
) |
|
(22,037 |
) |
|
(22,009 |
) |
|
|
(28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
29,975 |
|
|
21,398 |
|
|
8,577 |
|
|
85,533 |
|
|
77,209 |
|
|
|
8,324 |
|
Income Tax Expense |
7,352 |
|
|
5,606 |
|
|
1,746 |
|
|
22,718 |
|
|
18,566 |
|
|
|
4,152 |
|
Net Income |
$ |
22,623 |
|
|
$ |
15,792 |
|
|
$ |
6,831 |
|
|
$ |
62,815 |
|
|
$ |
58,643 |
|
|
$ |
4,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share
(Diluted) |
$ |
0.26 |
|
|
$ |
0.18 |
|
|
$ |
0.08 |
|
|
$ |
0.72 |
|
|
$ |
0.68 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
GATHERING
SEGMENT |
2020 |
|
2019 |
|
Variance |
|
2020 |
2019 |
|
|
Variance |
|
Revenues from External
Customers |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2 |
|
|
$ |
(2 |
) |
Intersegment Revenues |
33,299 |
|
|
32,875 |
|
|
424 |
|
|
103,355 |
|
|
91,931 |
|
|
|
11,424 |
|
Total Operating Revenues |
33,299 |
|
|
32,875 |
|
|
424 |
|
|
103,355 |
|
|
91,933 |
|
|
|
11,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
5,443 |
|
|
5,009 |
|
|
434 |
|
|
16,487 |
|
|
13,473 |
|
|
|
3,014 |
|
Property, Franchise and Other Taxes |
12 |
|
|
14 |
|
|
(2 |
) |
|
50 |
|
|
62 |
|
|
|
(12 |
) |
Depreciation, Depletion and Amortization |
5,237 |
|
|
5,485 |
|
|
(248 |
) |
|
15,655 |
|
|
14,836 |
|
|
|
819 |
|
|
10,692 |
|
|
10,508 |
|
|
184 |
|
|
32,192 |
|
|
28,371 |
|
|
|
3,821 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
22,607 |
|
|
22,367 |
|
|
240 |
|
|
71,163 |
|
|
63,562 |
|
|
|
7,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
(71 |
) |
|
(1 |
) |
|
(70 |
) |
|
(214 |
) |
|
(85 |
) |
|
|
(129 |
) |
Interest and Other Income |
41 |
|
|
173 |
|
|
(132 |
) |
|
198 |
|
|
489 |
|
|
|
(291 |
) |
Interest Expense |
(2,383 |
) |
|
(2,288 |
) |
|
(95 |
) |
|
(6,762 |
) |
|
(7,010 |
) |
|
|
248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
20,194 |
|
|
20,251 |
|
|
(57 |
) |
|
64,385 |
|
|
56,956 |
|
|
|
7,429 |
|
Income Tax Expense |
4,955 |
|
|
5,613 |
|
|
(658 |
) |
|
13,304 |
|
|
15,445 |
|
|
|
(2,141 |
) |
Net Income |
$ |
15,239 |
|
|
$ |
14,638 |
|
|
$ |
601 |
|
|
$ |
51,081 |
|
|
$ |
41,511 |
|
|
$ |
9,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share
(Diluted) |
$ |
0.17 |
|
|
$ |
0.17 |
|
|
$ |
— |
|
|
$ |
0.58 |
|
|
$ |
0.48 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
DOWNSTREAM BUSINESS |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
(Thousands of Dollars, except
per share amounts) |
June 30, |
June 30, |
UTILITY
SEGMENT |
2020 |
|
2019 |
|
Variance |
2020 |
2019 |
Variance |
Revenues from External
Customers |
$ |
124,390 |
|
|
|
$ |
129,977 |
|
|
|
$ |
(5,587 |
) |
|
$ |
569,856 |
|
|
$ |
648,624 |
|
|
$ |
(78,768 |
) |
Intersegment Revenues |
2,647 |
|
|
2,944 |
|
|
(297 |
) |
8,499 |
|
|
9,984 |
|
|
(1,485 |
) |
Total Operating Revenues |
127,037 |
|
|
132,921 |
|
|
(5,884 |
) |
578,355 |
|
|
658,608 |
|
|
(80,253 |
) |
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
Purchased Gas |
43,752 |
|
|
51,003 |
|
|
(7,251 |
) |
247,869 |
|
|
328,119 |
|
|
(80,250 |
) |
Operation and Maintenance |
43,410 |
|
|
38,890 |
|
|
4,520 |
|
137,323 |
|
|
129,839 |
|
|
7,484 |
|
Property, Franchise and Other Taxes |
9,661 |
|
|
9,865 |
|
|
(204 |
) |
30,295 |
|
|
31,229 |
|
|
(934 |
) |
Depreciation, Depletion and Amortization |
13,860 |
|
|
13,546 |
|
|
314 |
|
41,241 |
|
|
40,202 |
|
|
1,039 |
|
|
110,683 |
|
|
113,304 |
|
|
(2,621 |
) |
456,728 |
|
|
529,389 |
|
|
(72,661 |
) |
|
|
|
|
|
|
|
|
|
Operating Income |
16,354 |
|
|
19,617 |
|
|
(3,263 |
) |
|
121,627 |
|
|
129,219 |
|
|
(7,592 |
) |
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
(5,811 |
) |
|
(5,946 |
) |
|
135 |
|
|
(24,962 |
) |
|
(25,560 |
) |
|
598 |
|
Interest and Other Income |
1,749 |
|
|
929 |
|
|
820 |
|
|
2,994 |
|
|
2,709 |
|
|
285 |
|
Interest Expense |
(5,240 |
) |
|
(5,793 |
) |
|
553 |
|
|
(16,430 |
) |
|
(17,950 |
) |
|
1,520 |
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
7,052 |
|
|
8,807 |
|
|
(1,755 |
) |
|
83,229 |
|
|
88,418 |
|
|
(5,189 |
) |
Income Tax Expense |
798 |
|
|
1,445 |
|
|
(647 |
) |
|
18,894 |
|
|
19,818 |
|
|
(924 |
) |
Net Income |
$ |
6,254 |
|
|
$ |
7,362 |
|
|
$ |
(1,108 |
) |
|
$ |
64,335 |
|
|
$ |
68,600 |
|
|
$ |
(4,265 |
) |
|
|
|
|
|
|
|
|
|
Net Income Per Share
(Diluted) |
$ |
0.07 |
|
|
$ |
0.08 |
|
|
$ |
(0.01 |
) |
|
$ |
0.74 |
|
|
$ |
0.79 |
|
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
ALL
OTHER |
2020 |
|
2019 |
|
Variance |
|
2020 |
2019 |
Variance |
Revenues from External
Customers |
$ |
16,286 |
|
|
$ |
22,189 |
|
|
$ |
(5,903 |
) |
|
$ |
83,445 |
|
|
$ |
134,605 |
|
|
$ |
(51,160 |
) |
Intersegment Revenues |
341 |
|
|
681 |
|
|
(340 |
) |
|
598 |
|
|
1,056 |
|
|
(458 |
) |
Total Operating Revenues |
16,627 |
|
|
22,870 |
|
|
(6,243 |
) |
|
84,043 |
|
|
135,661 |
|
|
(51,618 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
14,038 |
|
|
22,517 |
|
|
(8,479 |
) |
|
75,222 |
|
|
130,853 |
|
|
(55,631 |
) |
Operation and Maintenance |
2,176 |
|
|
1,890 |
|
|
286 |
|
|
5,754 |
|
|
5,713 |
|
|
41 |
|
Property, Franchise and Other Taxes |
202 |
|
|
127 |
|
|
75 |
|
|
522 |
|
|
398 |
|
|
124 |
|
Depreciation, Depletion and Amortization |
245 |
|
|
640 |
|
|
(395 |
) |
|
653 |
|
|
1,176 |
|
|
(523 |
) |
|
16,661 |
|
|
25,174 |
|
|
(8,513 |
) |
|
82,151 |
|
|
138,140 |
|
|
(55,989 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
(34 |
) |
|
(2,304 |
) |
|
2,270 |
|
|
1,892 |
|
|
(2,479 |
) |
|
4,371 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
(69 |
) |
|
(11 |
) |
|
(58 |
) |
|
(207 |
) |
|
(143 |
) |
|
(64 |
) |
Interest and Other Income |
202 |
|
|
387 |
|
|
(185 |
) |
|
674 |
|
|
1,052 |
|
|
(378 |
) |
Interest Expense |
(10 |
) |
|
(3 |
) |
|
(7 |
) |
|
(52 |
) |
|
(16 |
) |
|
(36 |
) |
|
|
|
|
|
|
|
|
|
|
Income (Loss) before Income
Taxes |
89 |
|
|
(1,931 |
) |
|
2,020 |
|
|
2,307 |
|
|
(1,586 |
) |
|
3,893 |
|
Income Tax Expense
(Benefit) |
98 |
|
|
(487 |
) |
|
585 |
|
|
775 |
|
|
(640 |
) |
|
1,415 |
|
Net Income (Loss) |
$ |
(9 |
) |
|
$ |
(1,444 |
) |
|
$ |
1,435 |
|
|
$ |
1,532 |
|
|
$ |
(946 |
) |
|
$ |
2,478 |
|
Net Income (Loss) Per Share
(Diluted) |
$ |
— |
|
|
$ |
(0.02 |
) |
|
$ |
0.02 |
|
|
$ |
0.02 |
|
|
$ |
(0.01 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
CORPORATE |
2020 |
|
2019 |
|
Variance |
|
2020 |
2019 |
Variance |
Revenues from External
Customers |
$ |
95 |
|
|
$ |
135 |
|
|
$ |
(40 |
) |
|
$ |
364 |
|
|
$ |
244 |
|
|
$ |
120 |
|
Intersegment Revenues |
1,094 |
|
|
1,165 |
|
|
(71 |
) |
|
3,281 |
|
|
3,494 |
|
|
(213 |
) |
Total Operating Revenues |
1,189 |
|
|
1,300 |
|
|
(111 |
) |
|
3,645 |
|
|
3,738 |
|
|
(93 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
2,778 |
|
|
3,159 |
|
|
(381 |
) |
|
8,920 |
|
|
9,910 |
|
|
(990 |
) |
Property, Franchise and Other Taxes |
106 |
|
|
116 |
|
|
(10 |
) |
|
343 |
|
|
351 |
|
|
(8 |
) |
Depreciation, Depletion and Amortization |
166 |
|
|
192 |
|
|
(26 |
) |
|
544 |
|
|
572 |
|
|
(28 |
) |
|
3,050 |
|
|
3,467 |
|
|
(417 |
) |
|
9,807 |
|
|
10,833 |
|
|
(1,026 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Loss |
(1,861 |
) |
|
(2,167 |
) |
|
306 |
|
|
(6,162 |
) |
|
(7,095 |
) |
|
933 |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
(775 |
) |
|
(647 |
) |
|
(128 |
) |
|
(2,326 |
) |
|
(2,032 |
) |
|
(294 |
) |
Interest and Other Income |
35,919 |
|
|
30,235 |
|
|
5,684 |
|
|
89,795 |
|
|
86,612 |
|
|
3,183 |
|
Interest Expense on Long-Term Debt |
(27,140 |
) |
|
(25,303 |
) |
|
(1,837 |
) |
|
(77,853 |
) |
|
(76,016 |
) |
|
(1,837 |
) |
Other Interest Expense |
(1,665 |
) |
|
(1,335 |
) |
|
(330 |
) |
|
(4,688 |
) |
|
(3,702 |
) |
|
(986 |
) |
|
|
|
|
|
|
|
|
|
|
Income (Loss) before Income
Taxes |
4,478 |
|
|
783 |
|
|
3,695 |
|
|
(1,234 |
) |
|
(2,233 |
) |
|
999 |
|
Income Tax Expense
(Benefit) |
901 |
|
|
(110 |
) |
|
1,011 |
|
|
(977 |
) |
|
(4,835 |
) |
|
3,858 |
|
Net Income (Loss) |
$ |
3,577 |
|
|
$ |
893 |
|
|
$ |
2,684 |
|
|
$ |
(257 |
) |
|
$ |
2,602 |
|
|
$ |
(2,859 |
) |
Net Income (Loss) Per Share
(Diluted) |
$ |
0.04 |
|
|
$ |
0.01 |
|
|
$ |
0.03 |
|
|
$ |
— |
|
|
$ |
0.02 |
|
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
INTERSEGMENT
ELIMINATIONS |
2020 |
|
2019 |
|
Variance |
|
2020 |
2019 |
Variance |
Intersegment Revenues |
$ |
(64,174 |
) |
|
$ |
(60,608 |
) |
|
$ |
(3,566 |
) |
|
$ |
(193,103 |
) |
|
$ |
(176,177 |
) |
|
$ |
(16,926 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
(28,680 |
) |
|
(25,751 |
) |
|
(2,929 |
) |
|
(83,429 |
) |
|
(78,319 |
) |
|
(5,110 |
) |
Operation and Maintenance |
(35,494 |
) |
|
(34,857 |
) |
|
(637 |
) |
|
(109,674 |
) |
|
(97,858 |
) |
|
(11,816 |
) |
|
(64,174 |
) |
|
(60,608 |
) |
|
(3,566 |
) |
|
(193,103 |
) |
|
(176,177 |
) |
|
(16,926 |
) |
|
|
|
|
|
|
|
|
|
|
Operating Income |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Interest and Other Deductions |
(29,974 |
) |
|
(29,290 |
) |
|
(684 |
) |
|
(87,649 |
) |
|
(87,187 |
) |
|
(462 |
) |
Interest Expense |
29,974 |
|
|
29,290 |
|
|
684 |
|
|
87,649 |
|
|
87,187 |
|
|
462 |
|
Net Income (Loss) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Net Income (Loss) Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION (Continued) |
(Thousands of Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
2020 |
|
2019 |
|
(Decrease) |
|
2020 |
|
2019 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
Exploration and
Production |
$ |
65,647 |
(1) |
$ |
128,888 |
(3) |
$ |
(63,241 |
) |
|
$ |
294,990 |
(1)(2) |
$ |
391,674 |
(3)(4) |
$ |
(96,684 |
) |
Pipeline and Storage |
41,494 |
(1) |
35,489 |
(3) |
6,005 |
|
|
124,131 |
(1)(2) |
88,127 |
(3)(4) |
36,004 |
|
Gathering |
21,289 |
(1) |
17,926 |
(3) |
3,363 |
|
|
46,200 |
(1)(2) |
39,396 |
(3)(4) |
6,804 |
|
Utility |
25,616 |
(1) |
22,706 |
(3) |
2,910 |
|
|
62,238 |
(1)(2) |
58,363 |
(3)(4) |
3,875 |
|
Total Reportable Segments |
154,046 |
|
205,009 |
|
(50,963 |
) |
|
527,559 |
|
577,560 |
|
(50,001 |
) |
All Other |
16 |
|
82 |
|
(66 |
) |
|
38 |
|
124 |
|
(86 |
) |
Corporate |
100 |
|
267 |
|
(167 |
) |
|
420 |
|
369 |
|
51 |
|
Total Capital Expenditures |
$ |
154,162 |
|
$ |
205,358 |
|
$ |
(51,196 |
) |
|
$ |
528,017 |
|
$ |
578,053 |
|
$ |
(50,036 |
) |
(1) |
|
Capital expenditures for the quarter and nine months ended June 30,
2020, include accounts payable and accrued liabilities related to
capital expenditures of $26.5 million, $16.4 million, $6.5 million,
and $8.7 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility
segment, respectively. These amounts have been excluded from
the Consolidated Statement of Cash Flows at June 30, 2020, since
they represent non-cash investing activities at that date. |
|
|
|
(2) |
|
Capital expenditures for the nine months ended June 30, 2020,
exclude capital expenditures of $38.0 million, $23.8 million, $6.6
million and $12.7 million in the Exploration and Production
segment, Pipeline and Storage segment, Gathering segment and
Utility segment, respectively. These amounts were in accounts
payable and accrued liabilities at September 30, 2019 and paid
during the nine months ended June 30, 2020. These amounts
were excluded from the Consolidated Statement of Cash Flows at
September 30, 2019, since they represented non-cash investing
activities at that date. These amounts have been included in
the Consolidated Statement of Cash Flows at June 30, 2020. |
|
|
|
(3) |
|
Capital expenditures for the quarter and nine months ended June 30,
2019, include accounts payable and accrued liabilities related to
capital expenditures of $51.0 million, $14.0 million, $8.3 million,
and $6.1 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility
segment, respectively. These amounts have been excluded from
the Consolidated Statement of Cash Flows at June 30, 2019, since
they represent non-cash investing activities at that date. |
|
|
|
(4) |
|
Capital expenditures for the nine months ended June 30, 2019,
exclude capital expenditures of $51.3 million, $21.9 million, $6.1
million and $9.5 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility
segment, respectively. These amounts were in accounts payable
and accrued liabilities at September 30, 2018 and paid during the
nine months ended June 30, 2019. These amounts were excluded
from the Consolidated Statement of Cash Flows at September 30,
2018, since they represented non-cash investing activities at that
date. These amounts have been included in the Consolidated
Statement of Cash Flows at June 30, 2019. |
DEGREE
DAYS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Colder |
|
|
|
|
|
|
|
(Warmer) Than: |
Three Months Ended June
30, |
Normal |
|
2020 |
|
2019 |
|
Normal (1) |
|
Last Year (1) |
|
|
|
|
|
|
|
|
|
|
Buffalo, NY |
912 |
|
1,032 |
|
957 |
|
13.2 |
|
|
|
7.8 |
|
|
Erie, PA |
871 |
|
920 |
|
773 |
|
5.6 |
|
|
|
19.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June
30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo, NY |
6,491 |
|
6,002 |
|
6,654 |
|
(7.5 |
) |
|
|
(9.8 |
) |
|
Erie, PA |
6,057 |
|
5,381 |
|
5,899 |
|
(11.2 |
) |
|
|
(8.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
(1) Percents
compare actual 2020 degree days to normal degree days and actual
2020 degree days to actual 2019 degree days.
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
2020 |
|
2019 |
|
(Decrease) |
|
2020 |
|
2019 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
Gas
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
Production (MMcf) |
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
52,043 |
|
50,766 |
|
1,277 |
|
|
161,965 |
|
140,954 |
|
21,011 |
|
West Coast |
468 |
|
494 |
|
(26 |
) |
|
1,434 |
|
1,483 |
|
(49 |
) |
Total Production |
52,511 |
|
51,260 |
|
1,251 |
|
|
163,399 |
|
142,437 |
|
20,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Mcf) |
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
$ |
1.45 |
|
$ |
2.21 |
|
$ |
(0.76 |
) |
|
$ |
1.80 |
|
$ |
2.58 |
|
$ |
(0.78 |
) |
West Coast |
2.58 |
|
3.84 |
|
(1.26 |
) |
|
3.98 |
|
5.55 |
|
(1.57 |
) |
Weighted Average |
1.46 |
|
2.22 |
|
(0.76 |
) |
|
1.82 |
|
2.61 |
|
(0.79 |
) |
Weighted Average after Hedging |
1.92 |
|
2.36 |
|
(0.44 |
) |
|
2.13 |
|
2.51 |
|
(0.38 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Oil
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
Production (Thousands of
Barrels) |
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
— |
|
1 |
|
(1 |
) |
|
2 |
|
2 |
|
— |
|
West Coast |
584 |
|
575 |
|
9 |
|
|
1,790 |
|
1,710 |
|
80 |
|
Total Production |
584 |
|
576 |
|
8 |
|
|
1,792 |
|
1,712 |
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per
Barrel) |
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
$ |
27.50 |
|
$ |
55.45 |
|
$ |
(27.95 |
) |
|
$ |
50.28 |
|
$ |
55.80 |
|
$ |
(5.52 |
) |
West Coast |
29.13 |
|
67.43 |
|
(38.30 |
) |
|
47.40 |
|
65.01 |
|
(17.61 |
) |
Weighted Average |
29.12 |
|
67.41 |
|
(38.29 |
) |
|
47.41 |
|
65.00 |
|
(17.59 |
) |
Weighted Average after Hedging |
50.70 |
|
62.92 |
|
(12.22 |
) |
|
57.35 |
|
61.88 |
|
(4.53 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total Production (MMcfe) |
56,015 |
|
54,716 |
|
1,299 |
|
|
174,151 |
|
152,709 |
|
21,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating
Performance Statistics: |
|
|
|
|
|
|
|
|
|
|
|
General & Administrative
Expense per Mcfe (1) |
$ |
0.25 |
|
$ |
0.29 |
|
$ |
(0.04 |
) |
|
$ |
0.27 |
|
$ |
0.31 |
|
$ |
(0.04 |
) |
Lease Operating and
Transportation Expense per Mcfe (1)(2) |
$ |
0.82 |
|
$ |
0.87 |
|
$ |
(0.05 |
) |
|
$ |
0.85 |
|
$ |
0.89 |
|
$ |
(0.04 |
) |
Depreciation, Depletion &
Amortization per Mcfe (1) |
$ |
0.70 |
|
$ |
0.73 |
|
$ |
(0.03 |
) |
|
$ |
0.74 |
|
$ |
0.72 |
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Refer to page 16 for the General
and Administrative Expense, Lease Operating and Transportation
Expense and Depreciation, Depletion, and Amortization Expense for
the Exploration and Production segment. |
|
|
|
(2) |
|
Amounts include transportation
expense of $0.57 and $0.57 per Mcfe for the three months ended June
30, 2020 and June 30, 2019, respectively. Amounts include
transportation expense of $0.57 and $0.55 per Mcfe for the nine
months ended June 30, 2020 and June 30, 2019, respectively. |
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
|
Hedging
Summary for Remaining Three Months of Fiscal 2020 |
Volume |
|
|
Average
Hedge Price |
Oil Swaps |
|
|
|
|
|
Brent |
385,000 |
|
BBL |
|
$ |
62.31 / BBL |
NYMEX |
81,000 |
|
BBL |
|
$ |
50.52 / BBL |
Total |
466,000 |
|
BBL |
|
$ |
60.26 /
BBL |
|
|
|
|
|
|
Gas Swaps |
|
|
|
|
|
NYMEX |
23,010,000 |
|
MMBTU |
|
$ |
2.66 / MMBTU |
DAWN |
1,800,000 |
|
MMBTU |
|
$ |
3.00 / MMBTU |
Fixed Price
Physical Sales |
21,571,753 |
|
MMBTU |
|
$ |
2.13 / MMBTU |
Total |
46,381,753 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
Hedging
Summary for Fiscal 2021 |
Volume |
|
|
Average
Hedge Price |
Oil Swaps |
|
|
|
|
|
Brent |
936,000 |
|
BBL |
|
$ |
59.45 / BBL |
NYMEX |
156,000 |
|
BBL |
|
$ |
51.00 / BBL |
Total |
1,092,000 |
|
BBL |
|
$ |
58.24 /
BBL |
|
|
|
|
|
|
Gas Swaps |
|
|
|
|
|
NYMEX |
133,540,000 |
|
MMBTU |
|
$ |
2.61/ MMBTU |
DAWN |
600,000 |
|
MMBTU |
|
$ |
3.00 / MMBTU |
No Cost
Collars |
25,850,000 |
|
MMBTU |
|
$ |
2.28 / MMBTU
(Floor) / $2.77 / MMBTU (Ceiling) |
Fixed Price
Physical Sales |
50,040,640 |
|
MMBTU |
|
$ |
2.21 / MMBTU |
Total |
210,030,640 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
Hedging
Summary for Fiscal 2022 |
Volume |
|
|
Average
Hedge Price |
Oil Swaps |
|
|
|
|
|
Brent |
300,000 |
|
BBL |
|
$ |
60.07 / BBL |
NYMEX |
156,000 |
|
BBL |
|
$ |
51.00 / BBL |
Total |
456,000 |
|
BBL |
|
$ |
56.97 /
BBL |
|
|
|
|
|
|
Gas Swaps |
|
|
|
|
|
NYMEX |
79,590,000 |
|
MMBTU |
|
$ |
2.55 / MMBTU |
No Cost
Collars |
2,350,000 |
|
MMBTU |
|
$ |
2.28 / MMBTU
(Floor) / $2.77 / MMBTU (Ceiling) |
Fixed Price
Physical Sales |
40,674,677 |
|
MMBTU |
|
$ |
2.23 / MMBTU |
Total |
122,614,677 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging
Summary for Fiscal 2023 |
Volume |
|
|
Average
Hedge Price |
Gas Swaps |
|
|
|
|
|
NYMEX |
18,920,000 |
|
MMBTU |
|
$ |
2.48 / MMBTU |
Fixed Price
Physical Sales |
36,919,798 |
|
MMBTU |
|
$ |
2.25 / MMBTU |
Total |
55,839,798 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
Hedging
Summary for Fiscal 2024 |
Volume |
|
|
Average
Hedge Price |
Gas Swaps |
|
|
|
|
|
NYMEX |
1,150,000 |
|
MMBTU |
|
$ |
2.45 / MMBTU |
Fixed Price
Physical Sales |
20,954,870 |
|
MMBTU |
|
$ |
2.25 / MMBTU |
Total |
22,104,870 |
|
MMBTU |
|
|
|
|
|
|
|
|
|
Hedging
Summary for Fiscal 2025 |
Volume |
|
|
Average
Hedge Price |
Fixed Price
Physical Sales |
2,293,200 |
|
MMBTU |
|
$ |
2.18 / MMBTU |
NATIONAL FUEL GAS COMPANY |
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline
& Storage Throughput - (millions of cubic feet -
MMcf) |
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
2020 |
|
2019 |
|
(Decrease) |
|
2020 |
|
2019 |
|
(Decrease) |
Firm Transportation - Affiliated |
20,877 |
|
20,755 |
|
122 |
|
|
98,145 |
|
107,423 |
|
(9,278 |
) |
Firm Transportation -
Non-Affiliated |
151,702 |
|
137,984 |
|
13,718 |
|
|
478,880 |
|
442,839 |
|
36,041 |
|
Interruptible
Transportation |
757 |
|
309 |
|
448 |
|
|
2,002 |
|
1,974 |
|
28 |
|
|
173,336 |
|
159,048 |
|
14,288 |
|
|
579,027 |
|
552,236 |
|
26,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering Volume -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
2020 |
|
2019 |
|
(Decrease) |
|
2020 |
|
2019 |
|
(Decrease) |
Gathered Volume -
Affiliated |
61,338 |
|
60,745 |
|
593 |
|
|
190,864 |
|
169,590 |
|
21,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Throughput -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
|
2020 |
|
2019 |
|
(Decrease) |
|
2020 |
|
2019 |
|
(Decrease) |
Retail Sales: |
|
|
|
|
|
|
|
|
|
|
|
Residential Sales |
11,312 |
|
9,895 |
|
1,417 |
|
|
56,943 |
|
60,581 |
|
(3,638 |
) |
Commercial Sales |
1,450 |
|
1,441 |
|
9 |
|
|
8,295 |
|
8,999 |
|
(704 |
) |
Industrial Sales |
106 |
|
151 |
|
(45 |
) |
|
506 |
|
639 |
|
(133 |
) |
|
12,868 |
|
11,487 |
|
1,381 |
|
|
65,744 |
|
70,219 |
|
(4,475 |
) |
Transportation |
13,520 |
|
14,716 |
|
(1,196 |
) |
|
59,233 |
|
65,914 |
|
(6,681 |
) |
|
26,388 |
|
26,203 |
|
185 |
|
|
124,977 |
|
136,133 |
|
(11,156 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS
COMPANYAND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
In addition to financial measures calculated in
accordance with generally accepted accounting principles (GAAP),
this press release contains information regarding Adjusted
Operating Results and Adjusted EBITDA, 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 and for comparing the Company’s financial performance to
other companies. The Company's management uses these non-GAAP
financial measures for the same purpose, and for planning and
forecasting purposes. The presentation of non-GAAP financial
measures is not meant to be a substitute for financial measures in
accordance with GAAP.
Management defines Adjusted Operating Results as
reported GAAP earnings before items impacting comparability.
The following table reconciles National Fuel's reported GAAP
earnings to Adjusted Operating Results for the three and nine
months ended June 30, 2020 and 2019:
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
(in thousands except per share
amounts) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Reported GAAP
Earnings |
$ |
41,250 |
|
|
$ |
63,753 |
|
|
$ |
21,773 |
|
|
$ |
257,009 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
Impairment of oil and gas properties (E&P) |
18,236 |
|
|
— |
|
|
195,997 |
|
|
— |
|
Tax impact of impairment of oil and gas properties |
(4,986 |
) |
|
— |
|
|
(53,489 |
) |
|
— |
|
Deferred tax valuation allowance as of March 31, 2020 |
— |
|
|
— |
|
|
56,770 |
|
|
— |
|
Remeasurement of deferred income taxes under 2017 Tax Reform |
— |
|
|
— |
|
|
— |
|
|
(5,000 |
) |
Mark-to-market adjustments due to hedge ineffectiveness
(E&P) |
— |
|
|
(1,020 |
) |
|
— |
|
|
(783 |
) |
Tax impact of mark-to-market adjustments due to hedge
ineffectiveness |
— |
|
|
214 |
|
|
— |
|
|
164 |
|
Unrealized (gain) loss on other investments (Corporate/All
Other) |
(5,639 |
) |
|
(1,420 |
) |
|
794 |
|
|
1,096 |
|
Tax impact of unrealized (gain) loss on other investments |
1,184 |
|
|
298 |
|
|
(167 |
) |
|
(230 |
) |
Adjusted Operating
Results |
$ |
50,045 |
|
|
$ |
61,825 |
|
|
$ |
221,678 |
|
|
$ |
252,256 |
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
per share |
$ |
0.47 |
|
|
$ |
0.73 |
|
|
$ |
0.25 |
|
|
$ |
2.96 |
|
Items impacting comparability: |
|
|
|
|
|
|
|
Impairment of oil and gas properties, net of tax (E&P) |
0.15 |
|
|
— |
|
|
1.63 |
|
|
— |
|
Deferred tax valuation allowance as of March 31, 2020 |
— |
|
|
— |
|
|
0.65 |
|
|
— |
|
Remeasurement of deferred income taxes under 2017 Tax Reform |
— |
|
|
— |
|
|
— |
|
|
(0.06 |
) |
Mark-to-market adjustments due to hedge ineffectiveness, net of tax
(E&P) |
— |
|
|
(0.01 |
) |
|
— |
|
|
(0.01 |
) |
Unrealized (gain) loss on other investments, net of tax
(Corporate/All Other) |
(0.05 |
) |
|
(0.01 |
) |
|
0.01 |
|
|
0.01 |
|
Rounding |
— |
|
|
— |
|
|
— |
|
|
0.01 |
|
Adjusted Operating
Results Per Share |
$ |
0.57 |
|
|
$ |
0.71 |
|
|
$ |
2.54 |
|
|
$ |
2.91 |
|
Management defines Adjusted EBITDA as reported
GAAP earnings before the following items: interest expense,
income taxes, depreciation, depletion and amortization, other
income and deductions, impairments, and other items reflected in
operating income that impact comparability. The following
tables reconcile National Fuel's reported GAAP earnings to Adjusted
EBITDA for the three and nine months ended June 30, 2020 and
2019:
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
(in thousands) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Reported GAAP
Earnings |
$ |
41,250 |
|
|
$ |
63,753 |
|
|
$ |
21,773 |
|
|
$ |
257,009 |
|
Depreciation, Depletion and Amortization |
73,232 |
|
|
71,072 |
|
|
226,062 |
|
|
200,990 |
|
Other (Income) Deductions |
(2,547 |
) |
|
1,456 |
|
|
17,971 |
|
|
16,977 |
|
Interest Expense |
28,560 |
|
|
26,505 |
|
|
82,716 |
|
|
80,077 |
|
Income Taxes |
13,134 |
|
|
21,113 |
|
|
81,376 |
|
|
73,806 |
|
Mark-to-Market Adjustments due to Hedge Ineffectiveness |
— |
|
|
(1,020 |
) |
|
— |
|
|
(783 |
) |
Impairment of Oil and Gas Producing Properties |
18,236 |
|
|
— |
|
|
195,997 |
|
|
— |
|
Adjusted
EBITDA |
$ |
171,865 |
|
|
$ |
182,879 |
|
|
$ |
625,895 |
|
|
$ |
628,076 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by
Segment |
|
|
|
|
|
|
|
Pipeline and Storage Adjusted
EBITDA |
$ |
50,511 |
|
|
$ |
37,328 |
|
|
$ |
142,555 |
|
|
$ |
126,433 |
|
Gathering Adjusted EBITDA |
27,844 |
|
|
27,852 |
|
|
86,818 |
|
|
78,398 |
|
Total Midstream Businesses
Adjusted EBITDA |
78,355 |
|
|
65,180 |
|
|
229,373 |
|
|
204,831 |
|
Exploration and Production
Adjusted EBITDA |
64,780 |
|
|
88,175 |
|
|
236,727 |
|
|
261,650 |
|
Utility Adjusted EBITDA |
30,214 |
|
|
33,163 |
|
|
162,868 |
|
|
169,421 |
|
Corporate and All Other
Adjusted EBITDA |
(1,484 |
) |
|
(3,639 |
) |
|
(3,073 |
) |
|
(7,826 |
) |
Total Adjusted
EBITDA |
$ |
171,865 |
|
|
$ |
182,879 |
|
|
$ |
625,895 |
|
|
$ |
628,076 |
|
NATIONAL FUEL GAS
COMPANYAND SUBSIDIARIESNON-GAAP
FINANCIAL MEASURES SEGMENT ADJUSTED
EBITDA
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
(in thousands) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Exploration and
Production Segment |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
(6,434 |
) |
|
$ |
26,512 |
|
|
$ |
(157,733 |
) |
|
$ |
86,599 |
|
Depreciation, Depletion and Amortization |
39,372 |
|
|
40,055 |
|
|
128,656 |
|
|
110,643 |
|
Other (Income) Deductions |
253 |
|
|
(268 |
) |
|
602 |
|
|
(822 |
) |
Interest Expense |
14,323 |
|
|
13,850 |
|
|
42,543 |
|
|
40,561 |
|
Income Taxes |
(970 |
) |
|
9,046 |
|
|
26,662 |
|
|
25,452 |
|
Mark-to-Market Adjustments due to Hedge Ineffectiveness |
— |
|
|
(1,020 |
) |
|
— |
|
|
(783 |
) |
Impairment of Oil and Gas Producing Properties |
18,236 |
|
|
— |
|
|
195,997 |
|
|
— |
|
Adjusted EBITDA |
$ |
64,780 |
|
|
$ |
88,175 |
|
|
$ |
236,727 |
|
|
$ |
261,650 |
|
|
|
|
|
|
|
|
|
Pipeline and Storage
Segment |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
22,623 |
|
|
$ |
15,792 |
|
|
$ |
62,815 |
|
|
$ |
58,643 |
|
Depreciation, Depletion and Amortization |
14,352 |
|
|
11,154 |
|
|
39,313 |
|
|
33,561 |
|
Other (Income) Deductions |
(1,589 |
) |
|
(2,447 |
) |
|
(4,328 |
) |
|
(6,346 |
) |
Interest Expense |
7,773 |
|
|
7,223 |
|
|
22,037 |
|
|
22,009 |
|
Income Taxes |
7,352 |
|
|
5,606 |
|
|
22,718 |
|
|
18,566 |
|
Adjusted EBITDA |
$ |
50,511 |
|
|
$ |
37,328 |
|
|
$ |
142,555 |
|
|
$ |
126,433 |
|
|
|
|
|
|
|
|
|
Gathering
Segment |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
15,239 |
|
|
$ |
14,638 |
|
|
$ |
51,081 |
|
|
$ |
41,511 |
|
Depreciation, Depletion and Amortization |
5,237 |
|
|
5,485 |
|
|
15,655 |
|
|
14,836 |
|
Other (Income) Deductions |
30 |
|
|
(172 |
) |
|
16 |
|
|
(404 |
) |
Interest Expense |
2,383 |
|
|
2,288 |
|
|
6,762 |
|
|
7,010 |
|
Income Taxes |
4,955 |
|
|
5,613 |
|
|
13,304 |
|
|
15,445 |
|
Adjusted EBITDA |
$ |
27,844 |
|
|
$ |
27,852 |
|
|
$ |
86,818 |
|
|
$ |
78,398 |
|
|
|
|
|
|
|
|
|
Utility
Segment |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
6,254 |
|
|
$ |
7,362 |
|
|
$ |
64,335 |
|
|
$ |
68,600 |
|
Depreciation, Depletion and Amortization |
13,860 |
|
|
13,546 |
|
|
41,241 |
|
|
40,202 |
|
Other (Income) Deductions |
4,062 |
|
|
5,017 |
|
|
21,968 |
|
|
22,851 |
|
Interest Expense |
5,240 |
|
|
5,793 |
|
|
16,430 |
|
|
17,950 |
|
Income Taxes |
798 |
|
|
1,445 |
|
|
18,894 |
|
|
19,818 |
|
Adjusted EBITDA |
$ |
30,214 |
|
|
$ |
33,163 |
|
|
$ |
162,868 |
|
|
$ |
169,421 |
|
|
|
|
|
|
|
|
|
Corporate and All
Other |
|
|
|
|
|
|
|
Reported GAAP Earnings |
$ |
3,568 |
|
|
$ |
(551 |
) |
|
$ |
1,275 |
|
|
$ |
1,656 |
|
Depreciation, Depletion and Amortization |
411 |
|
|
832 |
|
|
1,197 |
|
|
1,748 |
|
Other (Income) Deductions |
(5,303 |
) |
|
(674 |
) |
|
(287 |
) |
|
1,698 |
|
Interest Expense |
(1,159 |
) |
|
(2,649 |
) |
|
(5,056 |
) |
|
(7,453 |
) |
Income Taxes |
999 |
|
|
(597 |
) |
|
(202 |
) |
|
(5,475 |
) |
Adjusted EBITDA |
$ |
(1,484 |
) |
|
$ |
(3,639 |
) |
|
$ |
(3,073 |
) |
|
$ |
(7,826 |
) |
|
|
|
|
|
Analyst Contact:
Kenneth E. Webster
716-857-7067
Media Contact:
Karen L. Merkel
716-857-7654
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