National Fuel Gas Company Earnings Recaps
National Fuel shares fell 3.4% after earnings, with management flagging lower natural gas prices as a near-term headwind to Seneca Resources’ earnings and cash flow. That outlook tempers a year of higher adjusted earnings and progress in regulated businesses.
Key takeaways
- Fiscal 2026 adjusted EPS was $7.55, up 9% year over year; fourth-quarter adjusted EPS was $1.22.
- Management expects lower commodity prices to weigh on Seneca’s earnings and cash flow, despite being nearly two-thirds hedged for the year at prices above the strip.
- Tioga Pathway and Shippingport Lateral entered service and are expected to add about $30 million in annual revenue; the Line N upgrade is on track for late 2028 and is expected to add about $20 million annually.
- Pennsylvania’s final rate order granted a $10 million increase and reset the Distribution System Improvement Charge; New York approved a System Modernization Tracker for real-time recovery of modernization investments.
- National Fuel closed its Ohio utility acquisition on October 1 and says it does not expect to file an Ohio rate case until 2029, when the capital-spending riders expire.
Shares of National Fuel Gas fell 5.8% following second quarter results, as investors responded negatively to management's downward revision of full-year production expectations driven by weather-related disruptions in the upstream business.
Key takeaways
- Adjusted EPS for the quarter was $2.71, up 13% year-over-year.
- Management flagged that severe winter weather and associated road closures led to operational slowdowns, modestly reducing both quarterly and anticipated full-year production.
- Progress continues on pipeline expansion projects, including the Line N system upgrade, Shippingport Lateral, and Tioga Pathway, with targeted in-service dates in late 2026–2028.
- Rate case activity is underway, with Supply Corporation filing for a ~$95 million cost-of-service increase and ongoing regulatory proceedings in New York and Pennsylvania.
- The CenterPoint Ohio acquisition remains on track for closing in the fourth quarter of the calendar year.
National Fuel Gas Company reported a solid first quarter for fiscal 2026 with adjusted EPS of $2.06, driven by strong upstream performance and effective regulated business strategies.
Key takeaways
- Adjusted EBITDA increased by 29% year-over-year, fueled by higher natural gas prices and production levels.
- Strategic expansion projects, including the Tioga Pathway and Shippingport Lateral, are progressing on schedule, contributing to future growth.
- Filed a new rate case in Pennsylvania seeking a $20 million increase to address cost inflation while maintaining the lowest delivery rates in the state.
- The company’s $350 million equity placement enhances liquidity to support the upcoming acquisition of CenterPoint's Ohio LDC, expected to close by Q4 2026.
- Positive policy developments in New York suggest a favorable environment for continued investment in natural gas infrastructure.
National Fuel Gas Company reported a robust fourth quarter with adjusted earnings per share increasing 58% year-over-year, culminating in a record-setting fiscal 2025 driven by strong operational performance across all business segments.
Key takeaways
- Adjusted EPS for Q4 reached $1.22, contributing to a 38% overall increase for fiscal 2025 compared to the previous year.
- Significant expansion of Tioga County inventory with an addition of 220 prospective well locations in the Upper Utica formation, nearly doubling EDA inventory.
- Strategic acquisition of CenterPoint's Ohio Gas LDC will double the utility rate base and enhance long-term earnings potential.
- Ongoing projects like the Tioga Pathway and Shipping Port lateral are on schedule, set to add substantial new delivery capacity and revenue by 2026.
- Positive momentum in New York's energy policy reflects increasing recognition of natural gas's role in economic development and energy reliability.