WILLIAMSVILLE, N.Y., May 03, 2023 (GLOBE
NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the
“Company”) (NYSE:NFG) today announced consolidated results for the
second quarter of its 2023 fiscal year and for the six months ended
March 31, 2023.
FISCAL 2023 SECOND QUARTER
SUMMARY
- GAAP net income of
$140.9 million, or $1.53 per share, compared to GAAP net income of
$167.3 million, or $1.82 per share, in the prior year.
- Adjusted operating
results of $141.8 million, or $1.54 per share, compared to $154.4
million, or $1.68 per share, in the prior year (see non-GAAP
reconciliation on page 2).
- Net cash provided
by operating activities fiscal year to date of $711 million, an
increase of $285 million or 67%, compared to $426 million in the
prior year.
- E&P segment net
Appalachian natural gas production of 93.2 Bcfe, an increase of 9.7
Bcfe, or 12%, higher than prior year and 3% higher than fiscal 2023
first quarter.
- Joint settlement
agreement filed in Utility's Pennsylvania rate case for increase in
base rates of $23 million (black box settlement) and the addition
of a weather normalization mechanism. This joint settlement,
pending PaPUC approval, would become effective in August.
- Company is revising
its fiscal 2023 earnings guidance to a range of $5.10 to $5.40 per
share, while maintaining capital expenditure guidance with a range
of $830 million to $940 million.
MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive
Officer of National Fuel Gas Company, stated: “The Company had
strong operational results in the second quarter amidst a
challenging commodity price backdrop. Over the first six months of
fiscal 2023, we experienced a significant year-over-year increase
in free cash flow generation, affording us the flexibility to
reduce our absolute leverage levels and further strengthen our
investment grade balance sheet.
“With respect to the balance of the fiscal year,
our consistent approach to hedging, combined with the durability of
our rate-regulated cash flows, position us well to navigate current
natural gas pricing headwinds. As we look further ahead, our
ongoing investment in the modernization of our rate-regulated
infrastructure, along with Seneca’s growing natural gas production
and an improved long-term outlook for natural gas prices, should
continue to drive significant free cash flow.”
ACQUISITION OF BOLT-ON UPSTREAM ASSETS
IN EASTERN DEVELOPMENT AREA
Seneca has entered into an agreement to acquire
upstream assets in northwest Tioga County, Pennsylvania from
Southwestern Energy for total consideration of $127.0 million,
subject to certain purchase price adjustments at closing.
As part of the transaction, Seneca has agreed to
purchase approximately 30,000 net acres located in Tioga and Potter
counties, Pennsylvania. At closing, these assets are expected to
have flowing net production of approximately 20 million cubic feet
per day. The transaction is anticipated to close on June 1, 2023
and is subject to customary closing conditions.
Additionally, Seneca entered into two separate
transactions to acquire approximately 6,000 bolt-on fee and lease
acres, with a modest amount of production and one proved developed
non-producing well, in its Lycoming and Tioga operating areas for
total consideration of between $20 and $25 million, subject to
closing and title adjustments.
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING
RESULTS
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
March 31, |
|
March 31, |
|
(in thousands except per share amounts) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Reported GAAP
Earnings |
|
$ |
140,880 |
|
|
$ |
167,328 |
|
|
$ |
310,570 |
|
|
$ |
299,720 |
|
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset (E&P) |
|
|
2,471 |
|
|
|
— |
|
|
|
2,273 |
|
|
|
— |
|
|
Tax impact of unrealized (gain) loss on derivative asset |
|
|
(677 |
) |
|
|
— |
|
|
|
(623 |
) |
|
|
— |
|
|
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
|
(1,068 |
) |
|
|
2,170 |
|
|
|
(1,278 |
) |
|
|
6,659 |
|
|
Tax impact of unrealized (gain) loss on other investments |
|
|
224 |
|
|
|
(456 |
) |
|
|
268 |
|
|
|
(1,398 |
) |
|
Reduction of other post-retirement regulatory liability
(Utility) |
|
|
— |
|
|
|
(18,533 |
) |
|
|
— |
|
|
|
(18,533 |
) |
|
Tax impact of reduction of other post-retirement regulatory
liability |
|
|
— |
|
|
|
3,892 |
|
|
|
— |
|
|
|
3,892 |
|
|
Adjusted Operating Results |
|
$ |
141,830 |
|
|
$ |
154,401 |
|
|
$ |
311,210 |
|
|
$ |
290,340 |
|
| |
|
|
|
|
|
|
|
|
| Reported GAAP Earnings
Per Share |
|
$ |
1.53 |
|
|
$ |
1.82 |
|
|
$ |
3.37 |
|
|
$ |
3.26 |
|
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset, net of tax
(E&P) |
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
|
|
(0.01 |
) |
|
|
0.02 |
|
|
|
(0.01 |
) |
|
|
0.05 |
|
|
Reduction of other post-retirement regulatory liability, net of tax
(Utility) |
|
|
— |
|
|
|
(0.16 |
) |
|
|
— |
|
|
|
(0.16 |
) |
|
Rounding |
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
| Adjusted Operating
Results Per Share |
|
$ |
1.54 |
|
|
$ |
1.68 |
|
|
$ |
3.37 |
|
|
$ |
3.15 |
|
FISCAL 2023 GUIDANCE UPDATE
National Fuel is revising its fiscal 2023
earnings guidance with updated forecast assumptions and
projections. The Company is now projecting that earnings, excluding
items impacting comparability, will be within the range of $5.10 to
$5.40 per share, a decrease of $0.30 per share from the midpoint of
the Company’s prior guidance range. The decrease from the Company’s
prior earnings guidance primarily reflects the impact of lower
natural gas prices, as the rest of the Company's assumptions and
projections are unchanged.
The Company is now assuming that NYMEX natural
gas prices will average $2.50 per MMBtu for the remainder of fiscal
2023, a decrease of $0.75 per MMBtu from the $3.25 per MMBtu
assumed in the previous guidance. For guidance purposes, the
Company’s updated natural gas price projections approximate the
current NYMEX forward curve and consider the impact of local sales
point differentials and new physical firm sales, transportation,
and financial hedge contracts.
The Exploration and Production segment’s fiscal
2023 net production guidance range of 370 to 390 Bcfe remains
unchanged. Capital expenditures are expected to be within the range
of $525 to $575 million, which is consistent with prior guidance.
During the first half of the year, the Company operated a two-rig
program with a dedicated completion crew, while also periodically
utilizing a top-hole rig and an additional completion crew. As
previously planned, activity levels are expected to decrease during
the remainder of the fiscal year as the Company drops its top-hole
rig and only utilizes its dedicated completion crew.
Seneca currently has firm sales contracts in
place for approximately 92% of its projected remaining fiscal 2023
production, limiting its exposure to in-basin markets.
Approximately 77% of Seneca’s expected remaining fiscal 2023
production is either matched by a financial hedge, including a
combination of swaps and no-cost collars, or was entered into at a
fixed price.
The Company’s other guidance assumptions remain
unchanged from the previous guidance. The details are outlined in
the table on page 7.
DISCUSSION OF SECOND QUARTER RESULTS BY
SEGMENT
The following earnings discussion of each
operating segment for the quarter ended March 31, 2023 is
summarized in a tabular form on pages 8 and 9 of this report
(earnings drivers for the six months ended March 31, 2023 are
summarized on pages 10 and 11). It may be helpful to refer to those
tables while reviewing this discussion.
Note that management defines Adjusted Operating
Results as reported GAAP earnings adjusted for items impacting
comparability, and Adjusted EBITDA as reported GAAP earnings before
the following items: interest expense, income taxes, depreciation,
depletion and amortization, other income and deductions,
impairments, and other items reflected in operating income that
impact comparability.
Upstream Business
Exploration and Production Segment
The Exploration and Production segment
operations are carried out by Seneca Resources Company, LLC
(“Seneca”). Seneca explores for, develops and produces primarily
natural gas reserves in Pennsylvania.
| |
Three Months Ended |
| |
March 31, |
| (in thousands) |
|
2023 |
|
|
2022 |
|
Variance |
|
GAAP Earnings |
$ |
60,982 |
|
$ |
71,121 |
|
$ |
(10,139 |
) |
| Unrealized (gain) loss on
derivative asset, net of tax |
|
1,794 |
|
|
— |
|
|
1,794 |
|
| Adjusted Operating
Results |
$ |
62,776 |
|
$ |
71,121 |
|
$ |
(8,345 |
) |
| |
|
|
|
|
|
| Adjusted EBITDA |
$ |
154,574 |
|
$ |
158,450 |
|
$ |
(3,876 |
) |
Seneca’s second quarter GAAP earnings decreased $10.1 million
versus the prior year. Higher production and Appalachian realized
natural gas prices were more than offset by the loss of earnings
related to Seneca's crude oil production in California which was
divested in June 2022. This decrease includes an unrealized loss of
$2.5 million ($1.8 million after-tax) recognized from a reduction
in the implied fair value of an asset related to the contingent
consideration in connection with this divestiture. Excluding this
loss, Seneca's earnings decreased $8.3 million.
Seneca produced 93.3 Bcfe during the second
quarter, an increase of 6.2 Bcfe, or 7%, from the prior year. This
increase was a result of a 9.7 Bcf increase, or 12%, in Appalachian
natural gas production, partially offset by a 3.5 Bcfe decrease in
production related to the aforementioned California sale.
Seneca’s average Appalachian realized natural
gas price, after the impact of hedging and transportation costs,
was $2.58 per Mcf, an increase of $0.02 per Mcf from the prior
year. The lower Appalachian natural gas prices, before the impact
of hedging, were more than offset by an increase in the weighted
average hedge price compared to the prior year second quarter.
On an absolute basis, lease operating and
transportation expense (“LOE”) decreased $6.8 million primarily due
to the California sale. Partly offsetting that decrease were
increases in LOE from higher transportation and gathering costs as
a result of increased production, as well as higher water
management and well maintenance costs in Appalachia. LOE expense
includes $55.3 million in intercompany expense for gathering and
compression services used to connect Seneca’s production to sales
points along interstate pipelines. On a per unit basis, LOE was
$0.71 per Mcfe, a decrease of $0.12 per Mcfe from the prior
year.
General and administrative (“G&A”) expense
decreased by $1.4 million largely due to the California sale. On a
per unit basis, G&A expense was $0.19 per Mcfe, a decrease of
$0.03 per Mcfe from the prior year. The decrease in Seneca’s other
operating expenses of $2.7 million was also primarily due to the
sale of Seneca’s California assets. Other taxes decreased $2.4
million largely attributable to both the impact of the sale of
Seneca's California assets as well as lower Impact Fees in
Pennsylvania.
Depreciation, depletion and amortization
(“DD&A”) expense increased $8.1 million due to higher natural
gas production and a higher per unit DD&A rate, which was
driven by an increase in capitalized costs in Seneca’s full cost
pool. DD&A expense was $0.63 per Mcfe, an increase of $0.05 per
Mcfe from the prior year.
Midstream Businesses
Pipeline and Storage Segment
The Pipeline and Storage segment’s operations
are carried out by National Fuel Gas Supply Corporation (“Supply
Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline
and Storage segment provides natural gas transportation and storage
services to affiliated and non-affiliated companies through an
integrated system of pipelines and underground natural gas storage
fields in western New York and Pennsylvania.
| |
Three Months Ended |
| |
March 31, |
| (in thousands) |
|
2023 |
|
|
2022 |
|
Variance |
|
GAAP Earnings |
$ |
23,858 |
|
$ |
25,470 |
|
$ |
(1,612 |
) |
| |
|
|
|
|
|
| Adjusted EBITDA |
$ |
58,926 |
|
$ |
61,371 |
|
$ |
(2,445 |
) |
The Pipeline and Storage segment’s second quarter GAAP earnings
decreased $1.6 million versus the prior year primarily due to
higher operation and maintenance (“O&M”) expense, partially
offset by an increase in other income. O&M expense increased
$2.8 million primarily due to higher personnel, pipeline integrity,
and compressor maintenance costs. The increase in other income of
$1.3 million was primarily attributable to a higher weighted
average interest rate on intercompany short-term notes
receivables.
Gathering Segment
The Gathering segment’s operations are carried
out by National Fuel Gas Midstream Company, LLC’s limited liability
companies. The Gathering segment constructs, owns and operates
natural gas gathering pipelines and compression facilities in the
Appalachian region, which delivers Seneca and other non-affiliated
Appalachian production to the interstate pipeline system.
| |
Three Months Ended |
| |
March 31, |
| (in thousands) |
|
2023 |
|
|
2022 |
|
Variance |
|
GAAP Earnings |
$ |
24,334 |
|
$ |
22,092 |
|
$ |
2,242 |
| |
|
|
|
|
|
| Adjusted EBITDA |
$ |
46,263 |
|
$ |
43,056 |
|
$ |
3,207 |
The Gathering segment’s second quarter GAAP earnings increased $2.2
million versus the prior year primarily due to higher operating
revenues, partially offset by higher O&M expense and higher
DD&A expense. Operating revenues increased $4.4 million, or 8%,
which was the result of a 5.6 Bcf increase in gathered volumes due
to an increase in Seneca’s natural gas production. The increase in
O&M expense of $1.2 million was due to higher compression
leasing expenses, as well as increases in personnel expenses and
costs for materials. DD&A expense increased $0.6 million due
primarily to higher average depreciable plant in service compared
to the prior year.
Downstream Business
Utility Segment
The Utility segment operations are carried out
by National Fuel Gas Distribution Corporation (“Distribution”),
which sells or transports natural gas to customers located in
western New York and northwestern Pennsylvania.
| |
Three Months Ended |
| |
March 31, |
| (in thousands) |
|
2023 |
|
|
2022 |
|
|
Variance |
|
GAAP Earnings |
$ |
31,720 |
|
$ |
53,048 |
|
|
$ |
(21,328 |
) |
| Reduction of other
post-retirement regulatory liability, net of tax |
|
— |
|
|
(14,641 |
) |
|
|
14,641 |
|
| Adjusted Operating
Results |
$ |
31,720 |
|
$ |
38,407 |
|
|
$ |
(6,687 |
) |
| |
|
|
|
|
|
| Adjusted EBITDA |
$ |
65,820 |
|
$ |
77,529 |
|
|
$ |
(11,709 |
) |
The Utility segment’s second quarter GAAP earnings decreased $21.3
million versus the prior year. Distribution's prior-year second
quarter earnings included a $14.6 million (after-tax) reduction in
an other post-employment benefit (“OPEB”) regulatory liability as a
result of the February 2022 conclusion of a rate proceeding in
Distribution's Pennsylvania service territory.
Excluding the impact of the reduction in the
OPEB-related regulatory liability recorded in the prior year's
second quarter, the Utility segment's second quarter earnings
decreased $6.7 million, due to lower customer margins (operating
revenues less purchased gas sold), along with higher O&M and
interest expense, partially offset by a decrease in non-service
pension and OPEB costs and higher other income.
The decline in customer margin of $8.5 million
was due primarily to a $8.0 million reduction in base rates in New
York as a result of a rate proceeding that became effective October
1, 2022 which temporarily reduced the Utility’s recovery of pension
and OPEB expenses to zero. In addition to lowering rates, the
proceeding mandated a corresponding decrease in pension and OPEB
expense, most of which had been previously recorded in “below the
line” non-service pension and OPEB costs. Additionally, customer
margin was lower due to a decrease in customer usage related to
weather that was 11% warmer than last year in Pennsylvania (where
the Company's current rates are not subject to a weather
normalization adjustment mechanism). These decreases were partially
offset by higher revenues from the Company’s system modernization
tracking mechanism in its New York service territory.
O&M expense increased by $3.0 million due
primarily to higher personnel costs and an increase in legal and
consulting expenses related to the current Pennsylvania rate case
proceeding filed in October 2022. An increase in the accrual for
uncollectible accounts, which was generally in line with the
increase in the Utility segment’s revenue, also contributed to
higher O&M expense for the quarter. Interest expense increased
$4.2 million due primarily to a higher weighted average interest
rate on intercompany short-term borrowings. The increase in other
income of $1.5 million was primarily attributable to interest
earned on deferred gas costs.
Corporate and All Other
The Company’s operations that are included in
Corporate and All Other generated a combined net loss of less than
$0.1 million in the current quarter, which was $4.4 million lower
than the combined net loss of $4.4 million in the prior-year second
quarter. The reduction in the net loss was primarily driven by
unrealized gains on investment securities recognized in the current
quarter compared to unrealized losses on investment securities
recognized in the prior-year second quarter.
EARNINGS TELECONFERENCE
The Company will host a conference call on
Thursday, May 4, 2023, at 11 a.m. Eastern Time to discuss this
announcement. To pre-register for this call (recommended), please
visit https://www.netroadshow.com/events/login?show=96471e60&confld=49148.
After registering, you will receive your access details via email.
To join by telephone on the day of the call, dial U.S. toll free
1-833–470–1428 and provide Access Code 565178. The teleconference
will be simultaneously webcast online and can be accessed on the
NFG Investor Relations website at investor.nationalfuelgas.com. An
audio replay of the teleconference call will be available until
Thursday, May 11, 2023. To access the telephone replay, dial U.S.
toll free 1-866-813-9403 and provide Access Code 313864.
National Fuel is an integrated energy company
reporting financial results for four operating segments:
Exploration and Production, Pipeline and Storage, Gathering, and
Utility. Additional information about National Fuel is available at
www.nationalfuelgas.com.
Certain statements contained herein, including
statements identified by the use of the words “anticipates,”
“estimates,” “expects,” “forecasts,” “intends,” “plans,”
“predicts,” “projects,” “believes,” “seeks,” “will,” “may” and
similar expressions, and statements which are other than statements
of historical facts, are “forward-looking statements” as defined by
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, which
could cause actual results or outcomes to differ materially from
those expressed in the forward-looking statements. The Company’s
expectations, beliefs and projections contained herein are
expressed in good faith and are believed to have a reasonable
basis, but there can be no assurance that such expectations,
beliefs or projections will result or be achieved or accomplished.
In addition to other factors, the following are important factors
that could cause actual results to differ materially from those
discussed in the forward-looking statements: changes in laws,
regulations or judicial interpretations to which the Company is
subject, including those involving derivatives, taxes, safety,
employment, climate change, other environmental matters, real
property, and exploration and production activities such as
hydraulic fracturing; governmental/regulatory actions, initiatives
and proceedings, including those involving rate cases (which
address, among other things, target rates of return, rate design,
retained natural gas and system modernization),
environmental/safety requirements, affiliate relationships,
industry structure, and franchise renewal; the Company’s ability to
estimate accurately the time and resources necessary to meet
emissions targets; governmental/regulatory actions and/or market
pressures to reduce or eliminate reliance on natural gas; changes
in economic conditions, including inflationary pressures, supply
chain issues, liquidity challenges, and global, national or
regional recessions, and their effect on the demand for, and
customers’ ability to pay for, the Company’s products and services;
changes in the price of natural gas; the creditworthiness or
performance of the Company’s key suppliers, customers and
counterparties; financial and economic conditions, including the
availability of credit, and occurrences affecting the Company’s
ability to obtain financing on acceptable terms for working
capital, capital expenditures and other investments, including any
downgrades in the Company’s credit ratings and changes in interest
rates and other capital market conditions; impairments under the
SEC’s full cost ceiling test for natural gas reserves; increased
costs or delays or changes in plans with respect to Company
projects or related projects of other companies, as well as
difficulties or delays in obtaining necessary governmental
approvals, permits or orders or in obtaining the cooperation of
interconnecting facility operators; the Company’s ability to
complete planned strategic transactions; changes in price
differentials between similar quantities of natural gas sold at
different geographic locations, and the effect of such changes on
commodity production, revenues and demand for pipeline
transportation capacity to or from such locations; the impact of
information technology disruptions, cybersecurity or data security
breaches; factors affecting the Company’s ability to successfully
identify, drill for and produce economically viable natural gas
reserves, including among others geology, lease availability and
costs, title disputes, weather conditions, shortages, delays or
unavailability of equipment and services required in drilling
operations, insufficient gathering, processing and transportation
capacity, the need to obtain governmental approvals and permits,
and compliance with environmental laws and regulations; increasing
health care costs and the resulting effect on health insurance
premiums and on the obligation to provide other post-retirement
benefits; other changes in price differentials between similar
quantities of natural gas having different quality, heating value,
hydrocarbon mix or delivery date; the cost and effects of legal and
administrative claims against the Company or activist shareholder
campaigns to effect changes at the Company; negotiations with the
collective bargaining units representing the Company's workforce,
including potential work stoppages during negotiations; uncertainty
of natural gas reserve estimates; significant differences between
the Company’s projected and actual production levels for natural
gas; changes in demographic patterns and weather conditions
(including those related to climate change); changes in the
availability, price or accounting treatment of derivative financial
instruments; changes in laws, actuarial assumptions, the interest
rate environment and the return on plan/trust assets related to the
Company’s pension and other post-retirement benefits, which can
affect future funding obligations and costs and plan liabilities;
economic disruptions or uninsured losses resulting from major
accidents, fires, severe weather, natural disasters, terrorist
activities or acts of war, as well as economic and operational
disruptions due to third-party outages; significant differences
between the Company’s projected and actual capital expenditures and
operating expenses; or increasing costs of insurance, changes in
coverage and the ability to obtain insurance. The Company disclaims
any obligation to update any forward-looking statements to reflect
events or circumstances after the date thereof.
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
GUIDANCE SUMMARY
As discussed on page 2, the Company is revising
its earnings guidance for fiscal 2023. Additional details on the
Company's forecast assumptions and business segment guidance are
outlined in the table below.
The revised earnings guidance range does not
include the impact of certain items that impacted the comparability
of earnings during the six months ended March 31, 2023, including:
(1) after-tax unrealized losses on a derivative asset, which
reduced earnings by $0.02 per share; and (2) after-tax unrealized
gains on other investments, which increased earnings by $0.01 per
share. While the Company expects to record certain adjustments to
unrealized gain or loss on a derivative asset and unrealized gain
or loss on investments during the six months ending September 30,
2023, the amounts of these and other potential adjustments are not
reasonably determinable at this time. As such, the Company is
unable to provide earnings guidance other than on a non-GAAP
basis.
|
|
Previous FY 2023 Guidance |
|
Updated FY 2023 Guidance |
| Consolidated Earnings
per Share, excluding items impacting comparability |
$5.35 to $5.75 |
|
$5.10 to $5.40 |
| Consolidated Effective
Tax Rate |
~ 25 - 25.5% |
|
~ 25 - 25.5% |
| |
|
|
|
| Capital
Expenditures (Millions)* |
|
|
|
|
Exploration and Production |
$525 - $575 |
|
$525 - $575 |
|
Pipeline and Storage |
$110 - $130 |
|
$110 - $130 |
|
Gathering |
$85 - $105 |
|
$85 - $105 |
|
Utility |
$110 - $130 |
|
$110 - $130 |
|
Consolidated Capital Expenditures |
$830 - $940 |
|
$830 - $940 |
| |
|
|
|
| Exploration &
Production Segment Guidance** |
|
|
|
| |
|
|
|
|
Commodity Price Assumptions |
|
|
|
|
NYMEX natural gas price |
$3.25 /MMBtu |
|
$2.50 /MMBtu |
|
Appalachian basin spot price |
$2.25 /MMBtu |
|
$1.80 /MMBtu |
|
|
|
|
|
|
Production (Bcfe) |
370 to 390 |
|
370 to 390 |
|
|
|
|
|
|
E&P Operating Costs ($/Mcfe) |
|
|
|
|
LOE |
$0.67 - $0.69 |
|
$0.67 - $0.69 |
|
G&A |
$0.17 - $0.19 |
|
$0.17 - $0.19 |
|
DD&A |
$0.60 - $0.64 |
|
$0.60 - $0.64 |
| |
|
|
|
| Other Business Segment
Guidance (Millions) |
|
|
|
|
Gathering Segment Revenues |
$230 - $245 |
|
$230 - $245 |
|
Pipeline and Storage Segment Revenues |
$360 - $380 |
|
$360 - $380 |
* Capital expenditures guidance excludes capital
related to recently announced acquisitions.
** Commodity price assumptions are for the remaining 6 months of
the fiscal year.
|
NATIONAL FUEL GAS COMPANY |
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
|
QUARTER ENDED MARCH 31, 2023 |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
| (Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter 2022 GAAP earnings |
$ |
71,121 |
|
|
$ |
25,470 |
|
|
$ |
22,092 |
|
|
$ |
53,048 |
|
|
$ |
(4,403 |
) |
|
$ |
167,328 |
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
| Reduction of other
post-retirement regulatory liability |
|
|
|
|
|
|
|
(18,533 |
) |
|
|
|
|
(18,533 |
) |
| Tax impact of reduction of
other post-retirement regulatory liability |
|
|
|
|
|
|
|
3,892 |
|
|
|
|
|
3,892 |
|
| Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
|
2,170 |
|
|
|
2,170 |
|
| Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
|
(456 |
) |
|
|
(456 |
) |
| Second quarter 2022
adjusted operating results |
|
71,121 |
|
|
|
25,470 |
|
|
|
22,092 |
|
|
|
38,407 |
|
|
|
(2,689 |
) |
|
|
154,401 |
|
| Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
| Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) natural gas
production |
|
19,077 |
|
|
|
|
|
|
|
|
|
|
|
19,077 |
|
| Higher (lower) crude oil
production |
|
(28,690 |
) |
|
|
|
|
|
|
|
|
|
|
(28,690 |
) |
| Higher (lower) realized
natural gas prices, after hedging |
|
(1,289 |
) |
|
|
|
|
|
|
|
|
|
|
(1,289 |
) |
| Higher (lower) other operating
revenues |
|
(2,580 |
) |
|
|
|
|
|
|
|
|
|
|
(2,580 |
) |
| Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) operating
revenues |
|
|
|
|
|
3,458 |
|
|
|
|
|
|
|
3,458 |
|
| Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
| Impact of usage and
weather |
|
|
|
|
|
|
|
(2,919 |
) |
|
|
|
|
(2,919 |
) |
| Impact of new rates**** |
|
|
|
|
|
|
|
(6,333 |
) |
|
|
|
|
(6,333 |
) |
| System modernization tracker
revenues |
|
|
|
|
|
|
|
1,729 |
|
|
|
|
|
1,729 |
|
| Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
| Lower (higher) lease operating
and transportation expenses |
|
5,344 |
|
|
|
|
|
|
|
|
|
|
|
5,344 |
|
| Lower (higher) operating
expenses |
|
3,184 |
|
|
|
(2,241 |
) |
|
|
(920 |
) |
|
|
(1,718 |
) |
|
|
|
|
(1,695 |
) |
| Lower (higher) property,
franchise and other taxes |
|
1,872 |
|
|
|
|
|
|
|
|
|
|
|
1,872 |
|
| Lower (higher) depreciation /
depletion |
|
(6,366 |
) |
|
|
|
|
(439 |
) |
|
|
|
|
|
|
(6,805 |
) |
| Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
| (Higher) lower other
deductions |
|
1,032 |
|
|
|
927 |
|
|
|
|
|
5,517 |
|
|
|
562 |
|
|
|
8,038 |
|
| (Higher) lower interest
expense |
|
|
|
|
|
|
|
(3,395 |
) |
|
|
1,917 |
|
|
|
(1,478 |
) |
| Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
| Lower (higher) income tax
expense / effective tax rate |
|
35 |
|
|
|
(60 |
) |
|
|
(224 |
) |
|
|
806 |
|
|
|
(205 |
) |
|
|
352 |
|
| All other / rounding |
|
36 |
|
|
|
(238 |
) |
|
|
367 |
|
|
|
(374 |
) |
|
|
(443 |
) |
|
|
(652 |
) |
| Second quarter 2023
adjusted operating results |
|
62,776 |
|
|
|
23,858 |
|
|
|
24,334 |
|
|
|
31,720 |
|
|
|
(858 |
) |
|
|
141,830 |
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
| Unrealized gain (loss) on
derivative asset |
|
(2,471 |
) |
|
|
|
|
|
|
|
|
|
|
(2,471 |
) |
| Tax impact of unrealized gain
(loss) on derivative asset |
|
677 |
|
|
|
|
|
|
|
|
|
|
|
677 |
|
| Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
1,068 |
|
|
|
1,068 |
|
| Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
(224 |
) |
|
|
(224 |
) |
| Second quarter 2023
GAAP earnings |
$ |
60,982 |
|
|
$ |
23,858 |
|
|
$ |
24,334 |
|
|
$ |
31,720 |
|
|
$ |
(14 |
) |
|
$ |
140,880 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| * Amounts do not reflect
intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
| ** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
| *** Downstream
margin defined as operating revenues less purchased gas
expense. |
| **** Amount is
offset by corresponding decrease in other deductions and will have
no earnings impact for the year ended September 30, 2023. |
|
|
|
NATIONAL FUEL GAS COMPANY |
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
|
QUARTER ENDED MARCH 31, 2023 |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
| |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter 2022 GAAP earnings per share |
$ |
0.77 |
|
|
$ |
0.28 |
|
|
$ |
0.24 |
|
|
$ |
0.58 |
|
|
$ |
(0.05 |
) |
|
$ |
1.82 |
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
| Reduction of other
post-retirement liability, net of tax |
|
|
|
|
|
|
|
(0.16 |
) |
|
|
|
|
(0.16 |
) |
| Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
0.02 |
|
|
|
0.02 |
|
| Second quarter 2022
adjusted operating results per share |
|
0.77 |
|
|
|
0.28 |
|
|
|
0.24 |
|
|
|
0.42 |
|
|
|
(0.03 |
) |
|
|
1.68 |
|
| Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
| Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) natural gas
production |
|
0.21 |
|
|
|
|
|
|
|
|
|
|
|
0.21 |
|
| Higher (lower) crude oil
production |
|
(0.31 |
) |
|
|
|
|
|
|
|
|
|
|
(0.31 |
) |
| Higher (lower) realized
natural gas prices, after hedging |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
| Higher (lower) other operating
revenues |
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
(0.03 |
) |
| Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) operating
revenues |
|
|
|
|
|
0.04 |
|
|
|
|
|
|
|
0.04 |
|
| Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
| Impact of usage and
weather |
|
|
|
|
|
|
|
(0.03 |
) |
|
|
|
|
(0.03 |
) |
| Impact of new rates**** |
|
|
|
|
|
|
|
(0.07 |
) |
|
|
|
|
(0.07 |
) |
| System modernization tracker
revenues |
|
|
|
|
|
|
|
0.02 |
|
|
|
|
|
0.02 |
|
| Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
| Lower (higher) lease operating
and transportation expenses |
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
0.06 |
|
| Lower (higher) operating
expenses |
|
0.03 |
|
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
|
|
(0.02 |
) |
| Lower (higher) property,
franchise and other taxes |
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
0.02 |
|
| Lower (higher) depreciation /
depletion |
|
(0.07 |
) |
|
|
|
|
— |
|
|
|
|
|
|
|
(0.07 |
) |
| Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
| (Higher) lower other
deductions |
|
0.01 |
|
|
|
0.01 |
|
|
|
|
|
0.06 |
|
|
|
0.01 |
|
|
|
0.09 |
|
| (Higher) lower interest
expense |
|
|
|
|
|
|
|
(0.04 |
) |
|
|
0.02 |
|
|
|
(0.02 |
) |
| Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
| Lower (higher) income tax
expense / effective tax rate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
| All other / rounding |
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
(0.03 |
) |
| Second quarter 2023
adjusted operating results per share |
|
0.68 |
|
|
|
0.26 |
|
|
|
0.26 |
|
|
|
0.35 |
|
|
|
(0.01 |
) |
|
|
1.54 |
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
| Unrealized gain (loss) on
derivative asset, net of tax |
|
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
(0.02 |
) |
| Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.01 |
|
| Second quarter 2023
GAAP earnings per share |
$ |
0.66 |
|
|
$ |
0.26 |
|
|
$ |
0.26 |
|
|
$ |
0.35 |
|
|
$ |
— |
|
|
$ |
1.53 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| * Amounts do not reflect
intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
| ** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
| *** Downstream
margin defined as operating revenues less purchased gas
expense. |
| **** Amount is
offset by corresponding decrease in other deductions and will have
no earnings impact for the year ended September 30, 2023. |
|
NATIONAL FUEL GAS COMPANY |
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
|
SIX MONTHS ENDED MARCH 31, 2023 |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
| (Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended March 31, 2022 GAAP earnings |
$ |
133,490 |
|
|
$ |
50,637 |
|
|
$ |
45,229 |
|
|
$ |
75,178 |
|
|
$ |
(4,814 |
) |
|
$ |
299,720 |
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
| Reduction of other
post-retirement regulatory liability |
|
|
|
|
|
|
|
(18,533 |
) |
|
|
|
|
(18,533 |
) |
| Tax impact of reduction of
other post-retirement regulatory liability |
|
|
|
|
|
|
|
3,892 |
|
|
|
|
|
3,892 |
|
| Unrealized (gain) loss on
other investments |
|
|
|
|
|
|
|
|
|
6,659 |
|
|
|
6,659 |
|
| Tax impact of unrealized
(gain) loss on other investments |
|
|
|
|
|
|
|
|
|
(1,398 |
) |
|
|
(1,398 |
) |
| Six months ended March
31, 2022 adjusted operating results |
|
133,490 |
|
|
|
50,637 |
|
|
|
45,229 |
|
|
|
60,537 |
|
|
|
447 |
|
|
|
290,340 |
|
| Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
| Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) natural gas
production |
|
36,513 |
|
|
|
|
|
|
|
|
|
|
|
36,513 |
|
| Higher (lower) crude oil
production |
|
(56,128 |
) |
|
|
|
|
|
|
|
|
|
|
(56,128 |
) |
| Higher (lower) realized
natural gas prices, after hedging |
|
34,518 |
|
|
|
|
|
|
|
|
|
|
|
34,518 |
|
| Higher (lower) other operating
revenues |
|
(2,601 |
) |
|
|
|
|
|
|
|
|
|
|
(2,601 |
) |
| Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) operating
revenues |
|
|
|
7,119 |
|
|
|
6,766 |
|
|
|
|
|
|
|
13,885 |
|
| Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
| Impact of usage and
weather |
|
|
|
|
|
|
|
348 |
|
|
|
|
|
348 |
|
| Impact of new rates**** |
|
|
|
|
|
|
|
(10,059 |
) |
|
|
|
|
(10,059 |
) |
| System modernization tracker
revenues |
|
|
|
|
|
|
|
2,597 |
|
|
|
|
|
2,597 |
|
| Higher (lower) other operating
revenues |
|
|
|
|
|
|
|
1,741 |
|
|
|
|
|
1,741 |
|
| Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
| Lower (higher) lease operating
and transportation expenses |
|
11,341 |
|
|
|
|
|
|
|
|
|
|
|
11,341 |
|
| Lower (higher) operating
expenses |
|
6,507 |
|
|
|
(3,700 |
) |
|
|
(2,105 |
) |
|
|
(4,108 |
) |
|
|
(489 |
) |
|
|
(3,895 |
) |
| Lower (higher) property,
franchise and other taxes |
|
891 |
|
|
|
|
|
|
|
|
|
|
|
891 |
|
| Lower (higher) depreciation /
depletion |
|
(11,147 |
) |
|
|
(1,617 |
) |
|
|
(690 |
) |
|
|
|
|
|
|
(13,454 |
) |
| Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
| (Higher) lower other
deductions |
|
2,304 |
|
|
|
1,519 |
|
|
|
438 |
|
|
|
9,652 |
|
|
|
(3,881 |
) |
|
|
10,032 |
|
| (Higher) lower interest
expense |
|
(855 |
) |
|
|
(852 |
) |
|
|
|
|
(5,423 |
) |
|
|
3,639 |
|
|
|
(3,491 |
) |
| Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
| Lower (higher) income tax
expense / effective tax rate |
|
(1,137 |
) |
|
|
(251 |
) |
|
|
(776 |
) |
|
|
739 |
|
|
|
(158 |
) |
|
|
(1,583 |
) |
| All other / rounding |
|
128 |
|
|
|
480 |
|
|
|
210 |
|
|
|
(487 |
) |
|
|
(116 |
) |
|
|
215 |
|
| Six months ended March
31, 2023 adjusted operating results |
|
153,824 |
|
|
|
53,335 |
|
|
|
49,072 |
|
|
|
55,537 |
|
|
|
(558 |
) |
|
|
311,210 |
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
| Unrealized gain (loss) on
derivative asset |
|
(2,273 |
) |
|
|
|
|
|
|
|
|
|
|
(2,273 |
) |
| Tax impact of unrealized gain
(loss) on derivative asset |
|
623 |
|
|
|
|
|
|
|
|
|
|
|
623 |
|
| Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
1,278 |
|
|
|
1,278 |
|
| Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
(268 |
) |
|
|
(268 |
) |
| Six months ended March
31, 2023 GAAP earnings |
$ |
152,174 |
|
|
$ |
53,335 |
|
|
$ |
49,072 |
|
|
$ |
55,537 |
|
|
$ |
452 |
|
|
$ |
310,570 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| * Amounts do not reflect
intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
| ** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
| *** Downstream
margin defined as operating revenues less purchased gas
expense. |
| **** Amount is
offset by corresponding decrease in other deductions and will have
no earnings impact for the year ended September 30, 2023. |
|
|
|
NATIONAL FUEL GAS COMPANY |
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
|
SIX MONTHS ENDED MARCH 31, 2023 |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Upstream |
|
Midstream |
|
Downstream |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Exploration & |
|
Pipeline & |
|
|
|
|
|
Corporate / |
|
|
| |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
All Other |
|
Consolidated* |
|
Six months ended March 31, 2022 GAAP earnings per
share |
$ |
1.45 |
|
|
$ |
0.55 |
|
|
$ |
0.49 |
|
|
$ |
0.82 |
|
|
$ |
(0.05 |
) |
|
$ |
3.26 |
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
| Reduction of other
post-retirement regulatory liability, net of tax |
|
|
|
|
|
|
|
(0.16 |
) |
|
|
|
|
(0.16 |
) |
| Unrealized (gain) loss on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
0.05 |
|
|
|
0.05 |
|
| Six months ended March
31, 2022 adjusted operating results per share |
|
1.45 |
|
|
|
0.55 |
|
|
|
0.49 |
|
|
|
0.66 |
|
|
|
— |
|
|
|
3.15 |
|
| Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
| Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) natural gas
production |
|
0.40 |
|
|
|
|
|
|
|
|
|
|
|
0.40 |
|
| Higher (lower) crude oil
production |
|
(0.61 |
) |
|
|
|
|
|
|
|
|
|
|
(0.61 |
) |
| Higher (lower) realized
natural gas prices, after hedging |
|
0.37 |
|
|
|
|
|
|
|
|
|
|
|
0.37 |
|
| Higher (lower) other operating
revenues |
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
(0.03 |
) |
| Midstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) operating
revenues |
|
|
|
0.08 |
|
|
|
0.07 |
|
|
|
|
|
|
|
0.15 |
|
| Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
| Impact of usage and
weather |
|
|
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| Impact of new rates**** |
|
|
|
|
|
|
|
(0.11 |
) |
|
|
|
|
(0.11 |
) |
| System modernization tracker
revenues |
|
|
|
|
|
|
|
0.03 |
|
|
|
|
|
0.03 |
|
| Higher (lower) other operating
revenues |
|
|
|
|
|
|
|
0.02 |
|
|
|
|
|
0.02 |
|
| Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
| Lower (higher) lease operating
and transportation expenses |
|
0.12 |
|
|
|
|
|
|
|
|
|
|
|
0.12 |
|
| Lower (higher) operating
expenses |
|
0.07 |
|
|
|
(0.04 |
) |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
(0.01 |
) |
|
|
(0.04 |
) |
| Lower (higher) property,
franchise and other taxes |
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
0.01 |
|
| Lower (higher) depreciation /
depletion |
|
(0.12 |
) |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
(0.15 |
) |
| Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
| (Higher) lower other
deductions |
|
0.02 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
(0.04 |
) |
|
|
0.10 |
|
| (Higher) lower interest
expense |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
|
|
(0.06 |
) |
|
|
0.04 |
|
|
|
(0.04 |
) |
| Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
| Lower (higher) income tax
expense / effective tax rate |
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
— |
|
|
|
(0.01 |
) |
| All other / rounding |
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
0.01 |
|
| Six months ended March
31, 2023 adjusted operating results per share |
|
1.67 |
|
|
|
0.58 |
|
|
|
0.53 |
|
|
|
0.60 |
|
|
|
(0.01 |
) |
|
|
3.37 |
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
| Unrealized gain (loss) on
derivative asset, net of tax |
|
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
(0.02 |
) |
| Unrealized gain (loss) on
other investments, net of tax |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.01 |
|
| Rounding |
|
|
|
|
|
|
|
|
|
0.01 |
|
|
|
0.01 |
|
| Six months ended March
31, 2023 GAAP earnings per share |
$ |
1.65 |
|
|
$ |
0.58 |
|
|
$ |
0.53 |
|
|
$ |
0.60 |
|
|
$ |
0.01 |
|
|
$ |
3.37 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| * Amounts do not reflect
intercompany eliminations. |
|
|
|
|
|
|
|
|
|
|
|
| ** Drivers of
adjusted operating results have been calculated using the 21%
federal statutory rate. |
| *** Downstream
margin defined as operating revenues less purchased gas
expense. |
| **** Amount is
offset by corresponding decrease in other deductions and will have
no earnings impact for the year ended September 30, 2023. |
| |
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
| (Thousands of Dollars, except
per share amounts) |
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
| |
March 31, |
|
March 31, |
| |
(Unaudited) |
|
(Unaudited) |
|
SUMMARY OF OPERATIONS |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Operating Revenues: |
|
|
|
|
|
|
|
|
Utility Revenues |
$ |
406,758 |
|
|
$ |
369,092 |
|
|
$ |
718,376 |
|
|
$ |
605,776 |
|
|
Exploration and Production and Other Revenues |
|
244,552 |
|
|
|
261,676 |
|
|
|
521,525 |
|
|
|
505,957 |
|
|
Pipeline and Storage and Gathering Revenues |
|
65,951 |
|
|
|
70,952 |
|
|
|
136,218 |
|
|
|
136,544 |
|
| |
|
717,261 |
|
|
|
701,720 |
|
|
|
1,376,119 |
|
|
|
1,248,277 |
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
Purchased Gas |
|
243,839 |
|
|
|
199,592 |
|
|
|
415,035 |
|
|
|
301,219 |
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
Utility |
|
56,453 |
|
|
|
53,476 |
|
|
|
106,805 |
|
|
|
100,120 |
|
|
Exploration and Production and Other |
|
31,782 |
|
|
|
49,806 |
|
|
|
58,655 |
|
|
|
95,425 |
|
|
Pipeline and Storage and Gathering |
|
37,479 |
|
|
|
33,518 |
|
|
|
70,740 |
|
|
|
63,446 |
|
|
Property, Franchise and Other Taxes |
|
25,367 |
|
|
|
27,717 |
|
|
|
51,572 |
|
|
|
52,219 |
|
|
Depreciation, Depletion and Amortization |
|
100,964 |
|
|
|
91,245 |
|
|
|
197,564 |
|
|
|
179,823 |
|
| |
|
495,884 |
|
|
|
455,354 |
|
|
|
900,371 |
|
|
|
792,252 |
|
| |
|
|
|
|
|
|
|
| Operating Income |
|
221,377 |
|
|
|
246,366 |
|
|
|
475,748 |
|
|
|
456,025 |
|
| |
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
Other Income |
|
2,884 |
|
|
|
10,018 |
|
|
|
9,203 |
|
|
|
8,940 |
|
|
Interest Expense on Long-Term Debt |
|
(27,583 |
) |
|
|
(30,079 |
) |
|
|
(57,188 |
) |
|
|
(60,209 |
) |
|
Other Interest Expense |
|
(5,861 |
) |
|
|
(1,519 |
) |
|
|
(9,704 |
) |
|
|
(2,680 |
) |
| |
|
|
|
|
|
|
|
| Income Before Income
Taxes |
|
190,817 |
|
|
|
224,786 |
|
|
|
418,059 |
|
|
|
402,076 |
|
| |
|
|
|
|
|
|
|
| Income Tax Expense |
|
49,937 |
|
|
|
57,458 |
|
|
|
107,489 |
|
|
|
102,356 |
|
| |
|
|
|
|
|
|
|
| Net Income Available for
Common Stock |
$ |
140,880 |
|
|
$ |
167,328 |
|
|
$ |
310,570 |
|
|
$ |
299,720 |
|
| |
|
|
|
|
|
|
|
| Earnings Per Common Share |
|
|
|
|
|
|
|
|
Basic |
$ |
1.53 |
|
|
$ |
1.83 |
|
|
$ |
3.39 |
|
|
$ |
3.28 |
|
|
Diluted |
$ |
1.53 |
|
|
$ |
1.82 |
|
|
$ |
3.37 |
|
|
$ |
3.26 |
|
| |
|
|
|
|
|
|
|
| Weighted Average
Common Shares: |
|
|
|
|
|
|
|
| Used in Basic Calculation |
|
91,794,765 |
|
|
|
91,444,638 |
|
|
|
91,686,110 |
|
|
|
91,354,488 |
|
| Used in Diluted
Calculation |
|
92,256,348 |
|
|
|
92,064,711 |
|
|
|
92,264,717 |
|
|
|
92,047,467 |
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(Unaudited) |
| |
|
| |
March 31, |
|
September 30, |
|
(Thousands of Dollars) |
|
2023 |
|
|
|
2022 |
|
|
ASSETS |
|
|
|
| Property, Plant and
Equipment |
$ |
12,978,137 |
|
|
$ |
12,551,909 |
|
| Less -
Accumulated Depreciation, Depletion and Amortization |
|
6,162,406 |
|
|
|
5,985,432 |
|
|
Net Property, Plant and Equipment |
|
6,815,731 |
|
|
|
6,566,477 |
|
|
Current Assets: |
|
|
|
| Cash and Temporary Cash
Investments |
|
71,533 |
|
|
|
46,048 |
|
| Hedging Collateral
Deposits |
|
— |
|
|
|
91,670 |
|
| Receivables - Net |
|
257,965 |
|
|
|
361,626 |
|
| Unbilled Revenue |
|
60,018 |
|
|
|
30,075 |
|
| Gas Stored Underground |
|
6,554 |
|
|
|
32,364 |
|
| Materials and Supplies - at
average cost |
|
45,204 |
|
|
|
40,637 |
|
| Unrecovered Purchased Gas
Costs |
|
26,851 |
|
|
|
99,342 |
|
| Other Current Assets |
|
75,233 |
|
|
|
59,369 |
|
|
Total Current Assets |
|
543,358 |
|
|
|
761,131 |
|
|
Other Assets: |
|
|
|
| Recoverable Future Taxes |
|
104,426 |
|
|
|
106,247 |
|
| Unamortized Debt Expense |
|
8,062 |
|
|
|
8,884 |
|
| Other Regulatory Assets |
|
61,497 |
|
|
|
67,101 |
|
| Deferred Charges |
|
85,053 |
|
|
|
77,472 |
|
| Other Investments |
|
74,618 |
|
|
|
95,025 |
|
| Goodwill |
|
5,476 |
|
|
|
5,476 |
|
| Prepaid Pension and
Post-Retirement Benefit Costs |
|
224,701 |
|
|
|
196,597 |
|
| Fair Value of Derivative
Financial Instruments |
|
42,424 |
|
|
|
9,175 |
|
|
Other |
|
1,896 |
|
|
|
2,677 |
|
|
Total Other Assets |
|
608,153 |
|
|
|
568,654 |
|
|
Total Assets |
$ |
7,967,242 |
|
|
$ |
7,896,262 |
|
|
CAPITALIZATION AND LIABILITIES |
|
|
|
| Capitalization: |
|
|
|
| Comprehensive Shareholders'
Equity |
|
|
|
| Common Stock, $1 Par Value
Authorized - 200,000,000 Shares; Issued and |
|
|
|
| Outstanding - 91,795,080
Shares and 91,478,064 Shares, Respectively |
$ |
91,795 |
|
|
$ |
91,478 |
|
| Paid in Capital |
|
1,031,341 |
|
|
|
1,027,066 |
|
| Earnings Reinvested in the
Business |
|
1,810,454 |
|
|
|
1,587,085 |
|
|
Accumulated Other Comprehensive Loss |
|
(54,864 |
) |
|
|
(625,733 |
) |
|
Total Comprehensive Shareholders' Equity |
|
2,878,726 |
|
|
|
2,079,896 |
|
|
Long-Term Debt, Net of Current Portion and Unamortized Discount and
Debt Issuance Costs |
|
2,085,235 |
|
|
|
2,083,409 |
|
|
Total Capitalization |
|
4,963,961 |
|
|
|
4,163,305 |
|
|
Current and Accrued Liabilities: |
|
|
|
| Notes Payable to Banks and
Commercial Paper |
|
410,000 |
|
|
|
60,000 |
|
| Current Portion of Long-Term
Debt |
|
— |
|
|
|
549,000 |
|
| Accounts Payable |
|
119,497 |
|
|
|
178,945 |
|
| Amounts Payable to
Customers |
|
2,830 |
|
|
|
419 |
|
| Dividends Payable |
|
43,602 |
|
|
|
43,452 |
|
| Interest Payable on Long-Term
Debt |
|
14,303 |
|
|
|
17,376 |
|
| Customer Advances |
|
— |
|
|
|
26,108 |
|
| Customer Security
Deposits |
|
34,382 |
|
|
|
24,283 |
|
| Other Accruals and Current
Liabilities |
|
257,923 |
|
|
|
257,327 |
|
| Fair
Value of Derivative Financial Instruments |
|
34,763 |
|
|
|
785,659 |
|
|
Total Current and Accrued Liabilities |
|
917,300 |
|
|
|
1,942,569 |
|
|
Other Liabilities: |
|
|
|
| Deferred Income Taxes |
|
1,000,526 |
|
|
|
698,229 |
|
| Taxes Refundable to
Customers |
|
354,274 |
|
|
|
362,098 |
|
| Cost of Removal Regulatory
Liability |
|
265,626 |
|
|
|
259,947 |
|
| Other Regulatory
Liabilities |
|
189,378 |
|
|
|
188,803 |
|
| Other Post-Retirement
Liabilities |
|
2,977 |
|
|
|
3,065 |
|
| Asset Retirement
Obligations |
|
160,910 |
|
|
|
161,545 |
|
| Other
Liabilities |
|
112,290 |
|
|
|
116,701 |
|
|
Total Other Liabilities |
|
2,085,981 |
|
|
|
1,790,388 |
|
|
Commitments and Contingencies |
|
— |
|
|
|
— |
|
|
Total Capitalization and Liabilities |
$ |
7,967,242 |
|
|
$ |
7,896,262 |
|
| |
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(Unaudited) |
| |
|
Six Months Ended |
| |
|
March 31, |
|
(Thousands of Dollars) |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
| Operating Activities: |
|
|
|
|
| Net Income Available for
Common Stock |
|
$ |
310,570 |
|
|
$ |
299,720 |
|
| Adjustments to Reconcile Net
Income to Net Cash |
|
|
|
|
|
Provided by Operating Activities: |
|
|
|
|
|
Depreciation, Depletion and Amortization |
|
|
197,564 |
|
|
|
179,823 |
|
|
Deferred Income Taxes |
|
|
80,745 |
|
|
|
94,212 |
|
|
Stock-Based Compensation |
|
|
11,286 |
|
|
|
10,631 |
|
|
Reduction of Other Post-Retirement Regulatory Liability |
|
|
— |
|
|
|
(18,533 |
) |
|
Other |
|
|
10,758 |
|
|
|
14,494 |
|
|
Change in: |
|
|
|
|
|
Receivables and Unbilled Revenue |
|
|
71,760 |
|
|
|
(166,584 |
) |
|
Gas Stored Underground and Materials, Supplies and Emission
Allowances |
|
|
21,243 |
|
|
|
32,040 |
|
|
Unrecovered Purchased Gas Costs |
|
|
72,491 |
|
|
|
29,377 |
|
|
Other Current Assets |
|
|
(15,864 |
) |
|
|
(8,605 |
) |
|
Accounts Payable |
|
|
(29,169 |
) |
|
|
2,006 |
|
|
Amounts Payable to Customers |
|
|
2,411 |
|
|
|
3,401 |
|
|
Customer Advances |
|
|
(26,108 |
) |
|
|
(17,223 |
) |
|
Customer Security Deposits |
|
|
10,099 |
|
|
|
1,474 |
|
|
Other Accruals and Current Liabilities |
|
|
28,741 |
|
|
|
11,164 |
|
|
Other Assets |
|
|
(26,901 |
) |
|
|
(32,659 |
) |
|
Other Liabilities |
|
|
(8,417 |
) |
|
|
(9,119 |
) |
|
Net Cash Provided by Operating Activities |
|
$ |
711,209 |
|
|
$ |
425,619 |
|
|
|
|
|
|
|
| Investing Activities: |
|
|
|
|
| Capital Expenditures |
|
$ |
(496,362 |
) |
|
$ |
(415,415 |
) |
| Net Proceeds from Sale of Oil
and Gas Producing Properties |
|
|
— |
|
|
|
13,525 |
|
| Deposit Paid for Upstream
Assets |
|
|
(12,700 |
) |
|
|
— |
|
| Sale of Fixed Income Mutual
Fund Shares in Grantor Trust |
|
|
10,000 |
|
|
|
30,000 |
|
|
Other |
|
|
14,413 |
|
|
|
13,689 |
|
|
Net Cash Used in Investing Activities |
|
$ |
(484,649 |
) |
|
$ |
(358,201 |
) |
|
|
|
|
|
|
| Financing Activities: |
|
|
|
|
| Proceeds from Issuance of
Short-Term Note Payable to Bank |
|
$ |
250,000 |
|
|
$ |
— |
|
| Net Change in Other Short-Term
Notes Payable to Banks and Commercial Paper |
|
|
100,000 |
|
|
|
59,500 |
|
| Reduction of Long-Term
Debt |
|
|
(549,000 |
) |
|
|
— |
|
| Dividends Paid on Common
Stock |
|
|
(87,051 |
) |
|
|
(83,091 |
) |
| Net
Repurchases of Common Stock |
|
|
(6,694 |
) |
|
|
(9,026 |
) |
|
Net Cash Used in Financing Activities |
|
$ |
(292,745 |
) |
|
$ |
(32,617 |
) |
|
|
|
|
|
|
| Net Increase (Decrease) in
Cash, Cash Equivalents, and Restricted Cash |
|
|
(66,185 |
) |
|
|
34,801 |
|
| Cash,
Cash Equivalents, and Restricted Cash at Beginning of Period |
|
|
137,718 |
|
|
|
120,138 |
|
|
Cash, Cash Equivalents, and Restricted Cash at March 31 |
|
$ |
71,533 |
|
|
$ |
154,939 |
|
| |
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
|
(UNAUDITED) |
| |
|
|
|
|
|
|
|
|
|
|
UPSTREAM BUSINESS |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
| (Thousands of Dollars, except
per share amounts) |
March 31, |
|
March 31, |
| EXPLORATION AND
PRODUCTION SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
|
Total Operating Revenues |
$ |
244,552 |
|
|
$ |
261,593 |
|
|
$ |
(17,041 |
) |
|
$ |
521,525 |
|
$ |
505,791 |
|
$ |
15,734 |
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
|
|
General and Administrative Expense |
|
17,435 |
|
|
|
18,798 |
|
|
|
(1,363 |
) |
|
|
33,033 |
|
|
36,553 |
|
|
(3,520 |
) |
|
Lease Operating and Transportation Expense |
|
65,783 |
|
|
|
72,548 |
|
|
|
(6,765 |
) |
|
|
127,328 |
|
|
141,684 |
|
|
(14,356 |
) |
|
All Other Operation and Maintenance Expense |
|
2,089 |
|
|
|
4,756 |
|
|
|
(2,667 |
) |
|
|
4,612 |
|
|
9,328 |
|
|
(4,716 |
) |
|
Property, Franchise and Other Taxes |
|
4,671 |
|
|
|
7,041 |
|
|
|
(2,370 |
) |
|
|
11,647 |
|
|
12,775 |
|
|
(1,128 |
) |
|
Depreciation, Depletion and Amortization |
|
58,605 |
|
|
|
50,547 |
|
|
|
8,058 |
|
|
|
114,164 |
|
|
100,054 |
|
|
14,110 |
|
| |
|
148,583 |
|
|
|
153,690 |
|
|
|
(5,107 |
) |
|
|
290,784 |
|
|
300,394 |
|
|
(9,610 |
) |
| |
|
|
|
|
|
|
|
|
|
| Operating Income |
|
95,969 |
|
|
|
107,903 |
|
|
|
(11,934 |
) |
|
|
230,741 |
|
|
205,397 |
|
|
25,344 |
|
| |
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit (Costs) Credit |
|
347 |
|
|
|
(186 |
) |
|
|
533 |
|
|
|
694 |
|
|
(372 |
) |
|
1,066 |
|
|
Interest and Other Income |
|
(1,623 |
) |
|
|
75 |
|
|
|
(1,698 |
) |
|
|
(292 |
) |
|
131 |
|
|
(423 |
) |
|
Interest Expense |
|
(12,186 |
) |
|
|
(12,206 |
) |
|
|
20 |
|
|
|
(25,420 |
) |
|
(24,338 |
) |
|
(1,082 |
) |
| Income Before Income
Taxes |
|
82,507 |
|
|
|
95,586 |
|
|
|
(13,079 |
) |
|
|
205,723 |
|
|
180,818 |
|
|
24,905 |
|
| Income Tax Expense |
|
21,525 |
|
|
|
24,465 |
|
|
|
(2,940 |
) |
|
|
53,549 |
|
|
47,328 |
|
|
6,221 |
|
| Net Income |
$ |
60,982 |
|
|
$ |
71,121 |
|
|
$ |
(10,139 |
) |
|
$ |
152,174 |
|
$ |
133,490 |
|
$ |
18,684 |
|
| Net Income Per Share
(Diluted) |
$ |
0.66 |
|
|
$ |
0.77 |
|
|
$ |
(0.11 |
) |
|
$ |
1.65 |
|
$ |
1.45 |
|
$ |
0.20 |
|
| |
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
|
(UNAUDITED) |
| |
|
|
|
|
|
|
|
|
|
|
MIDSTREAM BUSINESSES |
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
| (Thousands of Dollars, except
per share amounts) |
March 31, |
|
March 31, |
| PIPELINE AND
STORAGE SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
|
Revenues from External Customers |
$ |
64,223 |
|
|
$ |
67,795 |
|
|
$ |
(3,572 |
) |
|
$ |
131,844 |
|
$ |
129,342 |
|
$ |
2,502 |
|
| Intersegment Revenues |
|
30,880 |
|
|
|
27,602 |
|
|
|
3,278 |
|
|
|
60,915 |
|
|
54,405 |
|
|
6,510 |
|
| Total Operating Revenues |
|
95,103 |
|
|
|
95,397 |
|
|
|
(294 |
) |
|
|
192,759 |
|
|
183,747 |
|
|
9,012 |
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
| Purchased Gas |
|
462 |
|
|
|
989 |
|
|
|
(527 |
) |
|
|
887 |
|
|
1,437 |
|
|
(550 |
) |
| Operation and Maintenance |
|
27,275 |
|
|
|
24,438 |
|
|
|
2,837 |
|
|
|
51,294 |
|
|
46,611 |
|
|
4,683 |
|
| Property, Franchise and Other
Taxes |
|
8,440 |
|
|
|
8,599 |
|
|
|
(159 |
) |
|
|
17,123 |
|
|
17,180 |
|
|
(57 |
) |
| Depreciation, Depletion and
Amortization |
|
17,728 |
|
|
|
17,294 |
|
|
|
434 |
|
|
|
35,142 |
|
|
33,095 |
|
|
2,047 |
|
| |
|
53,905 |
|
|
|
51,320 |
|
|
|
2,585 |
|
|
|
104,446 |
|
|
98,323 |
|
|
6,123 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Income |
|
41,198 |
|
|
|
44,077 |
|
|
|
(2,879 |
) |
|
|
88,313 |
|
|
85,424 |
|
|
2,889 |
|
| |
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Credit |
|
1,330 |
|
|
|
767 |
|
|
|
563 |
|
|
|
2,660 |
|
|
1,534 |
|
|
1,126 |
|
|
Interest and Other Income |
|
958 |
|
|
|
192 |
|
|
|
766 |
|
|
|
2,822 |
|
|
1,595 |
|
|
1,227 |
|
|
Interest Expense |
|
(10,877 |
) |
|
|
(10,618 |
) |
|
|
(259 |
) |
|
|
(21,829 |
) |
|
(20,750 |
) |
|
(1,079 |
) |
| Income Before Income
Taxes |
|
32,609 |
|
|
|
34,418 |
|
|
|
(1,809 |
) |
|
|
71,966 |
|
|
67,803 |
|
|
4,163 |
|
| Income Tax Expense |
|
8,751 |
|
|
|
8,948 |
|
|
|
(197 |
) |
|
|
18,631 |
|
|
17,166 |
|
|
1,465 |
|
| Net Income |
$ |
23,858 |
|
|
$ |
25,470 |
|
|
$ |
(1,612 |
) |
|
$ |
53,335 |
|
$ |
50,637 |
|
$ |
2,698 |
|
| Net Income Per Share
(Diluted) |
$ |
0.26 |
|
|
$ |
0.28 |
|
|
$ |
(0.02 |
) |
|
$ |
0.58 |
|
$ |
0.55 |
|
$ |
0.03 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
| |
March 31, |
|
March 31, |
| GATHERING
SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
| Revenues from External
Customers |
$ |
1,728 |
|
|
$ |
3,157 |
|
|
$ |
(1,429 |
) |
|
$ |
4,374 |
|
$ |
7,202 |
|
$ |
(2,828 |
) |
| Intersegment Revenues |
|
55,253 |
|
|
|
49,447 |
|
|
|
5,806 |
|
|
|
109,020 |
|
|
97,627 |
|
|
11,393 |
|
| Total Operating Revenues |
|
56,981 |
|
|
|
52,604 |
|
|
|
4,377 |
|
|
|
113,394 |
|
|
104,829 |
|
|
8,565 |
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
10,715 |
|
|
|
9,551 |
|
|
|
1,164 |
|
|
|
20,403 |
|
|
17,739 |
|
|
2,664 |
|
|
Property, Franchise and Other Taxes |
|
3 |
|
|
|
(3 |
) |
|
|
6 |
|
|
|
14 |
|
|
2 |
|
|
12 |
|
|
Depreciation, Depletion and Amortization |
|
8,918 |
|
|
|
8,362 |
|
|
|
556 |
|
|
|
17,626 |
|
|
16,753 |
|
|
873 |
|
| |
|
19,636 |
|
|
|
17,910 |
|
|
|
1,726 |
|
|
|
38,043 |
|
|
34,494 |
|
|
3,549 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Income |
|
37,345 |
|
|
|
34,694 |
|
|
|
2,651 |
|
|
|
75,351 |
|
|
70,335 |
|
|
5,016 |
|
| |
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit (Costs) Credit |
|
37 |
|
|
|
(56 |
) |
|
|
93 |
|
|
|
75 |
|
|
(112 |
) |
|
187 |
|
|
Interest and Other Income |
|
225 |
|
|
|
18 |
|
|
|
207 |
|
|
|
395 |
|
|
27 |
|
|
368 |
|
|
Interest Expense |
|
(3,900 |
) |
|
|
(4,071 |
) |
|
|
171 |
|
|
|
(7,943 |
) |
|
(8,219 |
) |
|
276 |
|
| Income Before Income
Taxes |
|
33,707 |
|
|
|
30,585 |
|
|
|
3,122 |
|
|
|
67,878 |
|
|
62,031 |
|
|
5,847 |
|
| Income Tax Expense |
|
9,373 |
|
|
|
8,493 |
|
|
|
880 |
|
|
|
18,806 |
|
|
16,802 |
|
|
2,004 |
|
| Net Income |
$ |
24,334 |
|
|
$ |
22,092 |
|
|
$ |
2,242 |
|
|
$ |
49,072 |
|
$ |
45,229 |
|
$ |
3,843 |
|
| Net Income Per Share
(Diluted) |
$ |
0.26 |
|
|
$ |
0.24 |
|
|
$ |
0.02 |
|
|
$ |
0.53 |
|
$ |
0.49 |
|
$ |
0.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
|
(UNAUDITED) |
| |
|
|
|
|
|
|
|
|
|
|
DOWNSTREAM BUSINESS |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
| (Thousands of Dollars, except
per share amounts) |
March 31, |
|
March 31, |
| UTILITY
SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
|
Revenues from External Customers |
$ |
406,758 |
|
|
$ |
369,092 |
|
|
$ |
37,666 |
|
|
$ |
718,376 |
|
$ |
605,776 |
|
$ |
112,600 |
|
| Intersegment Revenues |
|
358 |
|
|
|
110 |
|
|
|
248 |
|
|
|
420 |
|
|
184 |
|
|
236 |
|
| Total Operating Revenues |
|
407,116 |
|
|
|
369,202 |
|
|
|
37,914 |
|
|
|
718,796 |
|
|
605,960 |
|
|
112,836 |
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
271,881 |
|
|
|
225,469 |
|
|
|
46,412 |
|
|
|
470,301 |
|
|
352,680 |
|
|
117,621 |
|
|
Operation and Maintenance |
|
57,292 |
|
|
|
54,249 |
|
|
|
3,043 |
|
|
|
108,568 |
|
|
101,710 |
|
|
6,858 |
|
|
Property, Franchise and Other Taxes |
|
12,123 |
|
|
|
11,955 |
|
|
|
168 |
|
|
|
22,531 |
|
|
22,013 |
|
|
518 |
|
|
Depreciation, Depletion and Amortization |
|
15,553 |
|
|
|
14,997 |
|
|
|
556 |
|
|
|
30,428 |
|
|
29,827 |
|
|
601 |
|
| |
|
356,849 |
|
|
|
306,670 |
|
|
|
50,179 |
|
|
|
631,828 |
|
|
506,230 |
|
|
125,598 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Income |
|
50,267 |
|
|
|
62,532 |
|
|
|
(12,265 |
) |
|
|
86,968 |
|
|
99,730 |
|
|
(12,762 |
) |
| |
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit (Costs) Credit |
|
(5 |
) |
|
|
13,023 |
|
|
|
(13,028 |
) |
|
|
(13 |
) |
|
8,697 |
|
|
(8,710 |
) |
|
Interest and Other Income |
|
1,769 |
|
|
|
289 |
|
|
|
1,480 |
|
|
|
3,211 |
|
|
813 |
|
|
2,398 |
|
|
Interest Expense |
|
(9,709 |
) |
|
|
(5,504 |
) |
|
|
(4,205 |
) |
|
|
(17,752 |
) |
|
(11,028 |
) |
|
(6,724 |
) |
| Income Before Income
Taxes |
|
42,322 |
|
|
|
70,340 |
|
|
|
(28,018 |
) |
|
|
72,414 |
|
|
98,212 |
|
|
(25,798 |
) |
| Income Tax Expense |
|
10,602 |
|
|
|
17,292 |
|
|
|
(6,690 |
) |
|
|
16,877 |
|
|
23,034 |
|
|
(6,157 |
) |
| Net Income |
$ |
31,720 |
|
|
$ |
53,048 |
|
|
$ |
(21,328 |
) |
|
$ |
55,537 |
|
$ |
75,178 |
|
$ |
(19,641 |
) |
| Net Income Per Share
(Diluted) |
$ |
0.35 |
|
|
$ |
0.58 |
|
|
$ |
(0.23 |
) |
|
$ |
0.60 |
|
$ |
0.82 |
|
$ |
(0.22 |
) |
| |
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
|
(UNAUDITED) |
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
| (Thousands of Dollars, except
per share amounts) |
March 31, |
|
March 31, |
| ALL
OTHER |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
|
Revenues from External Customers |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
| Intersegment Revenues |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
$ |
6 |
|
$ |
(6 |
) |
| Total Operating Revenues |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
6 |
|
|
(6 |
) |
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
6 |
|
|
(6 |
) |
|
Operation and Maintenance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21 |
|
|
5 |
|
|
16 |
|
| |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21 |
|
|
11 |
|
|
10 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21 |
) |
|
(5 |
) |
|
(16 |
) |
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Interest and Other Income |
|
(62 |
) |
|
|
— |
|
|
|
(62 |
) |
|
|
(387 |
) |
|
2 |
|
|
(389 |
) |
|
Interest Expense |
|
(28 |
) |
|
|
— |
|
|
|
(28 |
) |
|
|
(49 |
) |
|
— |
|
|
(49 |
) |
| Loss before Income Taxes |
|
(90 |
) |
|
|
— |
|
|
|
(90 |
) |
|
|
(457 |
) |
|
(3 |
) |
|
(454 |
) |
| Income Tax Expense
(Benefit) |
|
(21 |
) |
|
|
— |
|
|
|
(21 |
) |
|
|
(107 |
) |
|
4 |
|
|
(111 |
) |
| Net Loss |
$ |
(69 |
) |
|
|
— |
|
|
|
(69 |
) |
|
|
(350 |
) |
|
(7 |
) |
|
(343 |
) |
| Net Loss Per Share
(Diluted) |
$ |
— |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
— |
|
$ |
0.00 |
|
| |
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
| |
March 31, |
|
March 31, |
|
CORPORATE |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
| Revenues from External
Customers |
$ |
— |
|
|
$ |
83 |
|
|
$ |
(83 |
) |
|
$ |
— |
|
$ |
166 |
|
$ |
(166 |
) |
| Intersegment Revenues |
|
1,153 |
|
|
|
1,082 |
|
|
|
71 |
|
|
|
2,304 |
|
|
2,165 |
|
|
139 |
|
| Total Operating Revenues |
|
1,153 |
|
|
|
1,165 |
|
|
|
(12 |
) |
|
|
2,304 |
|
|
2,331 |
|
|
(27 |
) |
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
|
4,265 |
|
|
|
3,835 |
|
|
|
430 |
|
|
|
7,447 |
|
|
6,844 |
|
|
603 |
|
|
Property, Franchise and Other Taxes |
|
130 |
|
|
|
125 |
|
|
|
5 |
|
|
|
257 |
|
|
249 |
|
|
8 |
|
|
Depreciation, Depletion and Amortization |
|
160 |
|
|
|
45 |
|
|
|
115 |
|
|
|
204 |
|
|
94 |
|
|
110 |
|
| |
|
4,555 |
|
|
|
4,005 |
|
|
|
550 |
|
|
|
7,908 |
|
|
7,187 |
|
|
721 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Loss |
|
(3,402 |
) |
|
|
(2,840 |
) |
|
|
(562 |
) |
|
|
(5,604 |
) |
|
(4,856 |
) |
|
(748 |
) |
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Non-Service Pension and Post-Retirement Benefit Costs |
|
(354 |
) |
|
|
(1,017 |
) |
|
|
663 |
|
|
|
(709 |
) |
|
(2,034 |
) |
|
1,325 |
|
|
Interest and Other Income |
|
37,409 |
|
|
|
28,740 |
|
|
|
8,669 |
|
|
|
75,286 |
|
|
61,918 |
|
|
13,368 |
|
|
Interest Expense on Long-Term Debt |
|
(27,583 |
) |
|
|
(30,079 |
) |
|
|
2,496 |
|
|
|
(57,188 |
) |
|
(60,209 |
) |
|
3,021 |
|
|
Other Interest Expense |
|
(6,308 |
) |
|
|
(947 |
) |
|
|
(5,361 |
) |
|
|
(11,250 |
) |
|
(1,604 |
) |
|
(9,646 |
) |
| Income (Loss) before Income
Taxes |
|
(238 |
) |
|
|
(6,143 |
) |
|
|
5,905 |
|
|
|
535 |
|
|
(6,785 |
) |
|
7,320 |
|
| Income Tax Benefit |
|
(293 |
) |
|
|
(1,740 |
) |
|
|
1,447 |
|
|
|
(267 |
) |
|
(1,978 |
) |
|
1,711 |
|
| Net Income (Loss) |
$ |
55 |
|
|
$ |
(4,403 |
) |
|
$ |
4,458 |
|
|
$ |
802 |
|
$ |
(4,807 |
) |
$ |
5,609 |
|
| Net Income (Loss) Per Share
(Diluted) |
$ |
— |
|
|
$ |
(0.05 |
) |
|
$ |
0.05 |
|
|
$ |
0.01 |
|
$ |
(0.05 |
) |
$ |
0.06 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
| |
March 31, |
|
March 31, |
| INTERSEGMENT
ELIMINATIONS |
|
2023 |
|
|
|
2022 |
|
|
Variance |
|
|
2023 |
|
|
2022 |
|
Variance |
| Intersegment Revenues |
$ |
(87,644 |
) |
|
$ |
(78,241 |
) |
|
$ |
(9,403 |
) |
|
$ |
(172,659 |
) |
$ |
(154,387 |
) |
$ |
(18,272 |
) |
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
(28,504 |
) |
|
|
(26,866 |
) |
|
|
(1,638 |
) |
|
|
(56,153 |
) |
|
(52,904 |
) |
|
(3,249 |
) |
|
Operation and Maintenance |
|
(59,140 |
) |
|
|
(51,375 |
) |
|
|
(7,765 |
) |
|
|
(116,506 |
) |
|
(101,483 |
) |
|
(15,023 |
) |
| |
|
(87,644 |
) |
|
|
(78,241 |
) |
|
|
(9,403 |
) |
|
|
(172,659 |
) |
|
(154,387 |
) |
|
(18,272 |
) |
| Operating Income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Interest and Other Deductions |
|
(37,147 |
) |
|
|
(31,827 |
) |
|
|
(5,320 |
) |
|
|
(74,539 |
) |
|
(63,259 |
) |
|
(11,280 |
) |
|
Interest Expense |
|
37,147 |
|
|
|
31,827 |
|
|
|
5,320 |
|
|
|
74,539 |
|
|
63,259 |
|
|
11,280 |
|
| Net Income |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
| Net Income Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION (Continued) |
|
(Thousands of Dollars) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
| |
March 31, |
|
March 31, |
| |
(Unaudited) |
|
(Unaudited) |
| |
|
|
|
|
Increase |
|
|
|
|
|
Increase |
| |
|
2023 |
|
|
2022 |
|
(Decrease) |
|
|
2023 |
|
|
2022 |
|
(Decrease) |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital
Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production |
$ |
155,112 |
(1) |
$ |
134,748 |
(3) |
$ |
20,364 |
|
$ |
323,617 |
(1)(2) |
$ |
273,960 |
(3)(4) |
$ |
49,657 |
|
| Pipeline and Storage |
|
16,838 |
(1) |
|
14,404 |
(3) |
|
2,434 |
|
|
33,265 |
(1)(2) |
|
38,465 |
(3)(4) |
|
(5,200 |
) |
| Gathering |
|
20,788 |
(1) |
|
11,055 |
(3) |
|
9,733 |
|
|
34,081 |
(1)(2) |
|
19,975 |
(3)(4) |
|
14,106 |
|
| Utility |
|
23,942 |
(1) |
|
23,925 |
(3) |
|
17 |
|
|
49,230 |
(1)(2) |
|
43,308 |
(3)(4) |
|
5,922 |
|
| Total Reportable Segments |
|
216,680 |
|
|
184,132 |
|
|
32,548 |
|
|
440,193 |
|
|
375,708 |
|
|
64,485 |
|
| All Other |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Corporate |
|
391 |
|
|
271 |
|
|
120 |
|
|
403 |
|
|
496 |
|
|
(93 |
) |
|
Total Capital Expenditures |
$ |
217,071 |
|
$ |
184,403 |
|
$ |
32,668 |
|
$ |
440,596 |
|
$ |
376,204 |
|
$ |
64,392 |
|
|
(1) |
Capital expenditures for the quarter and six months ended March 31,
2023, include accounts payable and accrued liabilities related to
capital expenditures of $56.1 million, $2.2 million, $2.0 million,
and $4.2 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility
segment, respectively. These amounts have been excluded from the
Consolidated Statement of Cash Flows at March 31, 2023, since they
represent non-cash investing activities at that date. |
|
|
|
|
(2) |
Capital expenditures for the six months ended March 31, 2023,
exclude capital expenditures of $83.0 million, $15.2 million, $10.7
million and $11.4 million in the Exploration and Production
segment, Pipeline and Storage segment, Gathering segment and
Utility segment, respectively. These amounts were in accounts
payable and accrued liabilities at September 30, 2022 and paid
during the six months ended March 31, 2023. These amounts were
excluded from the Consolidated Statement of Cash Flows at September
30, 2022, since they represented non-cash investing activities at
that date. These amounts have been included in the Consolidated
Statement of Cash Flows at March 31, 2023. |
|
|
|
|
(3) |
Capital expenditures for the quarter and six months ended March 31,
2022, include accounts payable and accrued liabilities related to
capital expenditures of $52.5 million, $3.5 million, $3.4 million,
and $4.1 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility
segment, respectively. These amounts have been excluded from the
Consolidated Statement of Cash Flows at March 31, 2022, since they
represent non-cash investing activities at that date. |
|
|
|
|
(4) |
Capital expenditures for the six months ended March 31, 2022,
exclude capital expenditures of $47.9 million, $39.4 million, $4.8
million and $10.6 million in the Exploration and Production
segment, Pipeline and Storage segment, Gathering segment and
Utility segment, respectively. These amounts were in accounts
payable and accrued liabilities at September 30, 2021 and paid
during the six months ended March 31, 2022. These amounts were
excluded from the Consolidated Statement of Cash Flows at September
30, 2021, since they represented non-cash investing activities at
that date. These amounts have been included in the Consolidated
Statement of Cash Flows at March 31, 2022. |
| |
|
|
|
|
|
|
|
|
|
| DEGREE
DAYS |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Percent Colder |
| |
|
|
|
|
|
|
(Warmer) Than: |
| Three Months Ended March
31, |
Normal |
|
2023 |
|
2022 |
|
Normal (1) |
|
Last Year (1) |
|
Buffalo, NY |
3,290 |
|
2,820 |
|
3,161 |
|
(14.3 |
) |
|
(10.8 |
) |
|
Erie, PA |
3,108 |
|
2,645 |
|
2,973 |
|
(14.9 |
) |
|
(11.0 |
) |
| |
|
|
|
|
|
|
|
|
|
| Six Months Ended March
31, |
|
|
|
|
|
|
|
|
|
|
Buffalo, NY |
5,543 |
|
4,868 |
|
4,865 |
|
(12.2 |
) |
|
0.1 |
|
|
Erie, PA |
5,152 |
|
4,632 |
|
4,533 |
|
(10.1 |
) |
|
2.2 |
|
(1) Percents compare
actual 2023 degree days to normal degree days and actual 2023
degree days to actual 2022 degree days.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
March 31, |
|
March 31, |
| |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
| |
|
|
2023 |
|
|
2022 |
|
(Decrease) |
|
|
2023 |
|
|
2022 |
|
(Decrease) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gas
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
| Production (MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
|
93,241 |
|
|
83,565 |
|
|
9,676 |
|
|
|
183,815 |
|
|
164,954 |
|
|
18,861 |
|
|
West Coast |
|
|
— |
|
|
397 |
|
|
(397 |
) |
|
|
— |
|
|
805 |
|
|
(805 |
) |
| Total Production |
|
|
93,241 |
|
|
83,962 |
|
|
9,279 |
|
|
|
183,815 |
|
|
165,759 |
|
|
18,056 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Average Prices (Per Mcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
$ |
2.79 |
|
$ |
3.97 |
|
$ |
(1.18 |
) |
|
$ |
3.77 |
|
$ |
4.18 |
|
$ |
(0.41 |
) |
|
West Coast |
|
N/M |
|
|
10.04 |
|
N/M |
|
N/M |
|
|
9.91 |
|
N/M |
|
Weighted Average |
|
|
2.79 |
|
|
4.00 |
|
|
(1.21 |
) |
|
|
3.77 |
|
|
4.21 |
|
|
(0.44 |
) |
|
Weighted Average after Hedging |
|
|
2.58 |
|
|
2.60 |
|
|
(0.02 |
) |
|
|
2.80 |
|
|
2.56 |
|
|
0.24 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Oil
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
| Production (Thousands of
Barrels) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
|
7 |
|
|
1 |
|
|
6 |
|
|
|
15 |
|
|
1 |
|
|
14 |
|
|
West Coast |
|
|
— |
|
|
522 |
|
|
(522 |
) |
|
|
— |
|
|
1,070 |
|
|
(1,070 |
) |
| Total Production |
|
|
7 |
|
|
523 |
|
|
(516 |
) |
|
|
15 |
|
|
1,071 |
|
|
(1,056 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Average Prices (Per
Barrel) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
$ |
74.12 |
|
$ |
78.32 |
|
$ |
(4.20 |
) |
|
$ |
78.25 |
|
$ |
75.38 |
|
$ |
2.87 |
|
|
West Coast |
|
N/M |
|
|
94.95 |
|
N/M |
|
N/M |
|
|
85.93 |
|
N/M |
|
Weighted Average |
|
|
74.12 |
|
|
94.93 |
|
|
(20.81 |
) |
|
|
78.25 |
|
|
85.93 |
|
|
(7.68 |
) |
|
Weighted Average after Hedging |
|
|
74.12 |
|
|
70.45 |
|
|
3.67 |
|
|
|
78.25 |
|
|
67.30 |
|
|
10.95 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total Production (MMcfe) |
|
|
93,283 |
|
|
87,100 |
|
|
6,183 |
|
|
|
183,905 |
|
|
172,185 |
|
|
11,720 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Selected Operating
Performance Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
| General & Administrative
Expense per Mcfe (1) |
|
$ |
0.19 |
|
$ |
0.22 |
|
$ |
(0.03 |
) |
|
$ |
0.18 |
|
$ |
0.21 |
|
$ |
(0.03 |
) |
| Lease Operating and
Transportation Expense per Mcfe (1)(2) |
|
$ |
0.71 |
|
$ |
0.83 |
|
$ |
(0.12 |
) |
|
$ |
0.69 |
|
$ |
0.82 |
|
$ |
(0.13 |
) |
| Depreciation, Depletion &
Amortization per Mcfe (1) |
|
$ |
0.63 |
|
$ |
0.58 |
|
$ |
0.05 |
|
|
$ |
0.62 |
|
$ |
0.58 |
|
$ |
0.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
N/M Not Meaningful (as a result of the sale of Seneca's West Coast
assets in June 2022)
|
|
|
|
|
(1) |
Refer to page 15 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 $0.58 and $0.55 per Mcfe
for the three months ended March 31, 2023 and March 31, 2022,
respectively. Amounts include transportation expense of $0.58 and
$0.56 per Mcfe for the six months ended March 31, 2023 and March
31, 2022, respectively. |
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
| |
| Hedging Summary for
Remaining Six Months of Fiscal 2023 |
|
Volume |
|
|
Average Hedge
Price |
| Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
65,640,000 |
|
MMBTU |
|
$ |
2.88 / MMBTU |
| No Cost Collars |
|
47,880,000 |
|
MMBTU |
|
$ |
3.43 / MMBTU (Floor) / $4.13 /
MMBTU (Ceiling) |
| Fixed Price Physical
Sales |
|
41,700,181 |
|
MMBTU |
|
$ |
2.25 / MMBTU |
|
Total |
|
155,220,181 |
|
MMBTU |
|
|
|
| |
|
|
|
|
|
|
|
| Hedging Summary for
Fiscal 2024 |
|
Volume |
|
|
Average Hedge
Price |
| Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
119,180,000 |
|
MMBTU |
|
$ |
3.28 / MMBTU |
| No Cost Collars |
|
65,280,000 |
|
MMBTU |
|
$ |
3.33 / MMBTU (Floor) / $4.17 /
MMBTU (Ceiling) |
| Fixed Price Physical
Sales |
|
73,687,093 |
|
MMBTU |
|
$ |
2.42 / MMBTU |
|
Total |
|
258,147,093 |
|
MMBTU |
|
|
|
| |
|
|
|
|
|
|
|
| Hedging Summary for
Fiscal 2025 |
|
Volume |
|
|
Average Hedge
Price |
| Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
59,560,000 |
|
MMBTU |
|
$ |
3.39 / MMBTU |
| No Cost Collars |
|
43,960,000 |
|
MMBTU |
|
$ |
3.49 / MMBTU (Floor) / $4.65 /
MMBTU (Ceiling) |
| Fixed Price Physical
Sales |
|
70,289,781 |
|
MMBTU |
|
$ |
2.46 / MMBTU |
|
Total |
|
173,809,781 |
|
MMBTU |
|
|
|
| |
|
|
|
|
|
|
|
| Hedging Summary for
Fiscal 2026 |
|
Volume |
|
|
Average Hedge
Price |
| Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
15,520,000 |
|
MMBTU |
|
$ |
4.03 / MMBTU |
| No Cost Collars |
|
42,720,000 |
|
MMBTU |
|
$ |
3.53 / MMBTU (Floor) / $4.76 /
MMBTU (Ceiling) |
| Fixed Price Physical
Sales |
|
62,893,544 |
|
MMBTU |
|
$ |
2.37 / MMBTU |
|
Total |
|
121,133,544 |
|
MMBTU |
|
|
|
| |
|
|
|
|
|
|
|
| Hedging Summary for
Fiscal 2027 |
|
Volume |
|
|
Average Hedge
Price |
| Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
12,000,000 |
|
MMBTU |
|
$ |
4.29 / MMBTU |
| No Cost Collars |
|
3,560,000 |
|
MMBTU |
|
$ |
3.53 / MMBTU (Floor) / $4.76 /
MMBTU (Ceiling) |
| Fixed Price Physical
Sales |
|
45,517,002 |
|
MMBTU |
|
$ |
2.39 / MMBTU |
|
Total |
|
61,077,002 |
|
MMBTU |
|
|
|
| |
|
|
|
|
|
|
|
| Hedging Summary for
Fiscal 2028 |
|
Volume |
|
|
Average Hedge
Price |
| Gas Swaps |
|
|
|
|
|
|
|
|
NYMEX |
|
1,000,000 |
|
MMBTU |
|
$ |
4.29 / MMBTU |
| Fixed Price Physical
Sales |
|
11,850,451 |
|
MMBTU |
|
$ |
2.48 / MMBTU |
|
Total |
|
12,850,451 |
|
MMBTU |
|
|
|
| |
|
|
|
|
|
|
|
| Hedging Summary for
Fiscal 2029 |
|
Volume |
|
|
Average Hedge
Price |
| Fixed Price Physical
Sales |
|
766,673 |
|
MMBTU |
|
$ |
2.54 / MMBTU |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Pipeline
& Storage Throughput - (millions of cubic feet -
MMcf) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
March 31, |
|
March 31, |
| |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
| |
|
2023 |
|
2022 |
|
(Decrease) |
|
2023 |
|
2022 |
|
(Decrease) |
|
Firm Transportation - Affiliated |
|
48,147 |
|
46,459 |
|
1,688 |
|
|
86,616 |
|
74,656 |
|
11,960 |
|
| Firm Transportation -
Non-Affiliated |
|
182,934 |
|
185,571 |
|
(2,637 |
) |
|
369,089 |
|
350,967 |
|
18,122 |
|
| Interruptible
Transportation |
|
619 |
|
752 |
|
(133 |
) |
|
1,927 |
|
1,520 |
|
407 |
|
| |
|
231,700 |
|
232,782 |
|
(1,082 |
) |
|
457,632 |
|
427,143 |
|
30,489 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gathering Volume -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
March 31, |
|
March 31, |
| |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
| |
|
2023 |
|
2022 |
|
(Decrease) |
|
2023 |
|
2022 |
|
(Decrease) |
| Gathered Volume |
|
109,344 |
|
103,736 |
|
5,608 |
|
|
217,371 |
|
204,829 |
|
12,542 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Utility Throughput -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
March 31, |
|
March 31, |
| |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
| |
|
2023 |
|
2022 |
|
(Decrease) |
|
2023 |
|
2022 |
|
(Decrease) |
| Retail Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Sales |
|
27,884 |
|
32,026 |
|
(4,142 |
) |
|
48,037 |
|
49,521 |
|
(1,484 |
) |
|
Commercial Sales |
|
4,384 |
|
4,923 |
|
(539 |
) |
|
7,378 |
|
7,466 |
|
(88 |
) |
|
Industrial Sales |
|
267 |
|
268 |
|
(1 |
) |
|
418 |
|
392 |
|
26 |
|
| |
|
32,535 |
|
37,217 |
|
(4,682 |
) |
|
55,833 |
|
57,379 |
|
(1,546 |
) |
| Transportation |
|
22,788 |
|
25,745 |
|
(2,957 |
) |
|
41,098 |
|
43,338 |
|
(2,240 |
) |
| |
|
55,323 |
|
62,962 |
|
(7,639 |
) |
|
96,931 |
|
100,717 |
|
(3,786 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
In addition to financial measures calculated in
accordance with generally accepted accounting principles (GAAP),
this press release contains information regarding Adjusted
Operating Results, Adjusted EBITDA and free cash flow, which are
non-GAAP financial measures. The Company believes that these
non-GAAP financial measures are useful to investors because they
provide an alternative method for assessing the Company's ongoing
operating results or liquidity and for comparing the Company’s
financial performance to other companies. The Company's management
uses these non-GAAP financial measures for the same purpose, and
for planning and forecasting purposes. The presentation of non-GAAP
financial measures is not meant to be a substitute for financial
measures in accordance with GAAP.
Management defines Adjusted Operating Results as
reported GAAP earnings before items impacting comparability. The
following table reconciles National Fuel's reported GAAP earnings
to Adjusted Operating Results for the six months ended March 31,
2023 and 2022:
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
March 31, |
|
March 31, |
|
(in thousands except per share amounts) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Reported GAAP
Earnings |
|
$ |
140,880 |
|
|
$ |
167,328 |
|
|
$ |
310,570 |
|
|
$ |
299,720 |
|
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset (E&P) |
|
|
2,471 |
|
|
|
— |
|
|
|
2,273 |
|
|
|
— |
|
|
Tax impact of unrealized (gain) loss on derivative asset |
|
|
(677 |
) |
|
|
— |
|
|
|
(623 |
) |
|
|
— |
|
|
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
|
(1,068 |
) |
|
|
2,170 |
|
|
|
(1,278 |
) |
|
|
6,659 |
|
|
Tax impact of unrealized (gain) loss on other investments |
|
|
224 |
|
|
|
(456 |
) |
|
|
268 |
|
|
|
(1,398 |
) |
|
Reduction of other post-retirement regulatory liability
(Utility) |
|
|
— |
|
|
|
(18,533 |
) |
|
|
— |
|
|
|
(18,533 |
) |
|
Tax impact of reduction of other post-retirement regulatory
liability |
|
|
— |
|
|
|
3,892 |
|
|
|
— |
|
|
|
3,892 |
|
| Adjusted Operating
Results |
|
$ |
141,830 |
|
|
$ |
154,401 |
|
|
$ |
311,210 |
|
|
$ |
290,340 |
|
| |
|
|
|
|
|
|
|
|
| Reported GAAP Earnings
Per Share |
|
$ |
1.53 |
|
|
$ |
1.82 |
|
|
$ |
3.37 |
|
|
$ |
3.26 |
|
|
Items impacting comparability: |
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss on derivative asset, net of tax
(E&P) |
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
Unrealized (gain) loss on other investments, net of tax (Corporate
/ All Other) |
|
|
(0.01 |
) |
|
|
0.02 |
|
|
|
(0.01 |
) |
|
|
0.05 |
|
|
Reduction of other post-retirement regulatory liability, net of tax
(Utility) |
|
|
— |
|
|
|
(0.16 |
) |
|
|
— |
|
|
|
(0.16 |
) |
|
Rounding |
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
| Adjusted Operating
Results Per Share |
|
$ |
1.54 |
|
|
$ |
1.68 |
|
|
$ |
3.37 |
|
|
$ |
3.15 |
|
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
six months ended March 31, 2023 and 2022:
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
March 31, |
|
March 31, |
|
(in thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Reported GAAP
Earnings |
|
$ |
140,880 |
|
|
$ |
167,328 |
|
|
$ |
310,570 |
|
|
$ |
299,720 |
|
|
Depreciation, Depletion and Amortization |
|
|
100,964 |
|
|
|
91,245 |
|
|
|
197,564 |
|
|
|
179,823 |
|
|
Other (Income) Deductions |
|
|
(2,884 |
) |
|
|
(10,018 |
) |
|
|
(9,203 |
) |
|
|
(8,940 |
) |
|
Interest Expense |
|
|
33,444 |
|
|
|
31,598 |
|
|
|
66,892 |
|
|
|
62,889 |
|
|
Income Taxes |
|
|
49,937 |
|
|
|
57,458 |
|
|
|
107,489 |
|
|
|
102,356 |
|
| Adjusted
EBITDA |
|
$ |
322,341 |
|
|
$ |
337,611 |
|
|
$ |
673,312 |
|
|
$ |
635,848 |
|
| |
|
|
|
|
|
|
|
|
| Adjusted EBITDA by
Segment |
|
|
|
|
|
|
|
|
| Pipeline and Storage Adjusted
EBITDA |
|
$ |
58,926 |
|
|
$ |
61,371 |
|
|
$ |
123,455 |
|
|
$ |
118,519 |
|
| Gathering Adjusted EBITDA |
|
|
46,263 |
|
|
|
43,056 |
|
|
|
92,977 |
|
|
|
87,088 |
|
| Total Midstream Businesses
Adjusted EBITDA |
|
|
105,189 |
|
|
|
104,427 |
|
|
|
216,432 |
|
|
|
205,607 |
|
| Exploration and Production
Adjusted EBITDA |
|
|
154,574 |
|
|
|
158,450 |
|
|
|
344,905 |
|
|
|
305,451 |
|
| Utility Adjusted EBITDA |
|
|
65,820 |
|
|
|
77,529 |
|
|
|
117,396 |
|
|
|
129,557 |
|
| Corporate and All Other
Adjusted EBITDA |
|
|
(3,242 |
) |
|
|
(2,795 |
) |
|
|
(5,421 |
) |
|
|
(4,767 |
) |
| Total Adjusted
EBITDA |
|
$ |
322,341 |
|
|
$ |
337,611 |
|
|
$ |
673,312 |
|
|
$ |
635,848 |
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA |
| |
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
March 31, |
|
March 31, |
|
(in thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Exploration and
Production Segment |
|
|
|
|
|
|
|
|
| Reported GAAP Earnings |
|
$ |
60,982 |
|
|
$ |
71,121 |
|
|
$ |
152,174 |
|
|
$ |
133,490 |
|
|
Depreciation, Depletion and Amortization |
|
|
58,605 |
|
|
|
50,547 |
|
|
|
114,164 |
|
|
|
100,054 |
|
|
Other (Income) Deductions |
|
|
1,276 |
|
|
|
111 |
|
|
|
(402 |
) |
|
|
241 |
|
|
Interest Expense |
|
|
12,186 |
|
|
|
12,206 |
|
|
|
25,420 |
|
|
|
24,338 |
|
|
Income Taxes |
|
|
21,525 |
|
|
|
24,465 |
|
|
|
53,549 |
|
|
|
47,328 |
|
| Adjusted EBITDA |
|
$ |
154,574 |
|
|
$ |
158,450 |
|
|
$ |
344,905 |
|
|
$ |
305,451 |
|
| |
|
|
|
|
|
|
|
|
| Pipeline and
Storage Segment |
|
|
|
|
|
|
|
|
| Reported GAAP Earnings |
|
$ |
23,858 |
|
|
$ |
25,470 |
|
|
$ |
53,335 |
|
|
$ |
50,637 |
|
|
Depreciation, Depletion and Amortization |
|
|
17,728 |
|
|
|
17,294 |
|
|
|
35,142 |
|
|
|
33,095 |
|
|
Other (Income) Deductions |
|
|
(2,288 |
) |
|
|
(959 |
) |
|
|
(5,482 |
) |
|
|
(3,129 |
) |
|
Interest Expense |
|
|
10,877 |
|
|
|
10,618 |
|
|
|
21,829 |
|
|
|
20,750 |
|
|
Income Taxes |
|
|
8,751 |
|
|
|
8,948 |
|
|
|
18,631 |
|
|
|
17,166 |
|
| Adjusted EBITDA |
|
$ |
58,926 |
|
|
$ |
61,371 |
|
|
$ |
123,455 |
|
|
$ |
118,519 |
|
| |
|
|
|
|
|
|
|
|
| Gathering
Segment |
|
|
|
|
|
|
|
|
| Reported GAAP Earnings |
|
$ |
24,334 |
|
|
$ |
22,092 |
|
|
$ |
49,072 |
|
|
$ |
45,229 |
|
|
Depreciation, Depletion and Amortization |
|
|
8,918 |
|
|
|
8,362 |
|
|
|
17,626 |
|
|
|
16,753 |
|
|
Other (Income) Deductions |
|
|
(262 |
) |
|
|
38 |
|
|
|
(470 |
) |
|
|
85 |
|
|
Interest Expense |
|
|
3,900 |
|
|
|
4,071 |
|
|
|
7,943 |
|
|
|
8,219 |
|
|
Income Taxes |
|
|
9,373 |
|
|
|
8,493 |
|
|
|
18,806 |
|
|
|
16,802 |
|
| Adjusted EBITDA |
|
$ |
46,263 |
|
|
$ |
43,056 |
|
|
$ |
92,977 |
|
|
$ |
87,088 |
|
| |
|
|
|
|
|
|
|
|
| Utility
Segment |
|
|
|
|
|
|
|
|
| Reported GAAP Earnings |
|
$ |
31,720 |
|
|
$ |
53,048 |
|
|
$ |
55,537 |
|
|
$ |
75,178 |
|
|
Depreciation, Depletion and Amortization |
|
|
15,553 |
|
|
|
14,997 |
|
|
|
30,428 |
|
|
|
29,827 |
|
|
Other (Income) Deductions |
|
|
(1,764 |
) |
|
|
(13,312 |
) |
|
|
(3,198 |
) |
|
|
(9,510 |
) |
|
Interest Expense |
|
|
9,709 |
|
|
|
5,504 |
|
|
|
17,752 |
|
|
|
11,028 |
|
|
Income Taxes |
|
|
10,602 |
|
|
|
17,292 |
|
|
|
16,877 |
|
|
|
23,034 |
|
| Adjusted EBITDA |
|
$ |
65,820 |
|
|
$ |
77,529 |
|
|
$ |
117,396 |
|
|
$ |
129,557 |
|
| |
|
|
|
|
|
|
|
|
| Corporate and All
Other |
|
|
|
|
|
|
|
|
| Reported GAAP Earnings |
|
$ |
(14 |
) |
|
$ |
(4,403 |
) |
|
$ |
452 |
|
|
$ |
(4,814 |
) |
|
Depreciation, Depletion and Amortization |
|
|
160 |
|
|
|
45 |
|
|
|
204 |
|
|
|
94 |
|
|
Other (Income) Deductions |
|
|
154 |
|
|
|
4,104 |
|
|
|
349 |
|
|
|
3,373 |
|
|
Interest Expense |
|
|
(3,228 |
) |
|
|
(801 |
) |
|
|
(6,052 |
) |
|
|
(1,446 |
) |
|
Income Taxes |
|
|
(314 |
) |
|
|
(1,740 |
) |
|
|
(374 |
) |
|
|
(1,974 |
) |
| Adjusted EBITDA |
|
$ |
(3,242 |
) |
|
$ |
(2,795 |
) |
|
$ |
(5,421 |
) |
|
$ |
(4,767 |
) |
Management defines free cash flow as net cash provided by operating
activities less capital expenditures. The Company is unable to
provide a reconciliation of projected free cash flow as described
in this release to its comparable financial measure calculated in
accordance with GAAP without unreasonable efforts. This is due to
our inability to reliably predict the comparable GAAP projected
metrics, including operating income and total production costs,
given the unknown effect, timing, and potential significance of
certain income statement items.
Timothy J. Silverstein
Treasurer
716-857-6987
Analyst Contact:
Brandon J. Haspett
716-857-7697
Media Contact:
Karen L. Merkel
716-857-7654
National Fuel Gas (NYSE:NFG)
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From Jul 2023 to Jul 2024
