• National Fuel Reports Fourth Quarter and Full Year Fiscal 2024 Earnings

    المصدر: Nasdaq GlobeNewswire / 06 نوفمبر 2024 16:46:00   America/New_York

    WILLIAMSVILLE, N.Y., Nov. 06, 2024 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the three months and fiscal year ended September 30, 2024.

    FISCAL 2024 FOURTH QUARTER SUMMARY

    • GAAP net loss of $167.6 million, or $1.84 per share, which includes $237.8 million in non-cash impairment charges.
    • Adjusted operating results of $70.5 million, or $0.77 per share, compared to $72.2 million, or $0.78 per share, in the prior year (see non-GAAP reconciliation on page 2).
    • Supply Corporation filed a certificate application with FERC for its Tioga Pathway Project, a modernization and expansion project that is expected to provide 190,000 dekatherms per day of firm transportation capacity and $15 million in annual expansion revenues.
    • In the Utility segment, a Joint Proposal was filed with the New York State utility commission for a three-year settlement of its rate proceeding, which, subject to approval, incorporates an $86 million annual revenue requirement increase over three years, with the first-year impact of $57 million in fiscal 2025 and the remainder in fiscal 2026 and 2027.
    • In the E&P segment, hedging-related gains of $61 million drove a $0.07 per Mcfe increase in natural gas price realizations, despite NYMEX decreasing by $0.40 per MMBtu compared to the prior year.

    FISCAL 2024 HIGHLIGHTS

    • The Company continued its long history of returning cash to shareholders by announcing its 54th consecutive dividend increase, to an annual rate of $2.06 per share, and through the fiscal year, repurchased $65 million of common stock as part of its $200 million share repurchase program that was authorized in March.
    • E&P segment capital efficiency continued to improve, with non-acquisition capital expenditures decreasing by $58 million, or 10%, compared to the prior year (see page 20), while production increased by approximately 5% to 392.0 Bcf.
    • Gathering segment throughput and revenues increased 6% from the prior year, driven by growth in affiliated and third-party throughput.
    • Pipeline & Storage segment revenues increased $33.2 million, or 9%, from the prior year, primarily due to the settlement of the Supply Corporation rate case, which led to increased rates effective February 2024.
    • Utility segment net income increased $8.7 million, or 18%, compared to the prior year, largely attributable to the continued impact of a rate settlement in its Pennsylvania service territory, effective August 2023.

    MANAGEMENT COMMENTS

    David P. Bauer, President and CEO, stated: “National Fuel had a good quarter driven largely by the constructive outcomes in our recent ratemaking activity at our Utility and Pipeline and Storage segments. Commodity prices were challenging for our Upstream business, but the significant gains from our hedge portfolio more than offset the impact of the substantial decline in natural gas prices.  

    “During the quarter, we achieved key milestones that position the Company to deliver long-term earnings and free cash flow growth. At Distribution Corporation, we reached a multi-year settlement of our New York rate case, which we expect will be approved in the coming months. Further, Supply Corporation filed a certificate application for our 190,000 Dth per day Tioga Pathway Project, which we expect will be in-service in late 2026. Lastly, our Seneca and NFG Midstream teams continue to see success with our transition to the Eastern Development Area, with continued operational enhancements and strong well performance driving further improvements to our capital efficiency.

    “Taken together, the progress made during the quarter further improves the long-term outlook for National Fuel and positions us well to create long-term value for our shareholders.”    

    RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS

             
      Three Months Ended Fiscal Year Ended
      September 30, September 30,
    (in thousands except per share amounts)  2024   2023   2024   2023 
    Reported GAAP Earnings $(167,621) $73,677  $77,513  $476,866 
    Items impacting comparability:        
    Impairment of assets (E&P/ Pipeline & Storage)  318,433   —   519,129   — 
    Tax impact of impairment of assets  (80,585)  —   (136,271)  — 
    Unrealized (gain) loss on derivative asset (E&P)  1,700   (2,803)  6,548   899 
    Tax impact of unrealized (gain) loss on derivative asset  (461)  775   (1,791)  (240)
    Unrealized (gain) loss on other investments (Corporate / All Other)  (1,232)  719   (3,034)  (913)
    Tax impact of unrealized (gain) loss on other investments  258   (151)  637   192 
    Adjusted Operating Results $70,492  $72,217  $462,731  $476,804 
             
    Reported GAAP Earnings Per Share $(1.84) $0.80  $0.84  $5.17 
    Items impacting comparability:        
    Impairment of assets, net of tax (E&P / Pipeline & Storage)  2.61   —   4.15   — 
    Unrealized (gain) loss on derivative asset, net of tax (E&P)  0.01   (0.02)  0.05   0.01 
    Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)  (0.01)  0.01   (0.03)  (0.01)
    Rounding  —   (0.01)  —   — 
    Adjusted Operating Results Per Share $0.77  $0.78  $5.01  $5.17 


    FISCAL 2025 GUIDANCE UPDATE

    National Fuel is updating its guidance for fiscal 2025 adjusted operating results, which are now expected to be within a range of $5.50 to $6.00 per share. This updated range reflects the impact of anticipated lower natural gas prices, partially offset by a projected decrease in Seneca’s per unit operating expenses. Adjusted operating results exclude any future potential items impacting comparability, including a non-cash ceiling test impairment anticipated in the Exploration and Production segment in the first quarter of fiscal 2025.

    The Company is now assuming NYMEX natural gas prices will average $2.80 per MMBtu for fiscal 2025, a decrease of $0.45 from preliminary guidance that was initiated last quarter. This updated natural gas price projection approximates the current NYMEX forward curve at this time, however, given the recent volatility in NYMEX natural gas prices, the Company is providing the following sensitivities to its adjusted operating results guidance range:

    NYMEX
    ($/MMBtu)    		Sensitivities
    $2.50$5.15 - $5.65
    $3.00$5.70 - $6.20
    $3.25$6.00 - $6.50


    Seneca’s production guidance for fiscal 2025 remains unchanged, with a range of 400 to 420 Bcfe, and does not incorporate any potential price-related curtailments. Seneca currently has firm sales contracts in place for 89% of its projected fiscal 2025 natural gas production, significantly limiting its exposure to in-basin markets. Further, 63% of expected 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.

    Additionally, Seneca’s depreciation, depletion and amortization (“DD&A”) guidance range was revised downward to reflect the impact of the fourth quarter fiscal 2024 ceiling test impairment and the associated impact on the full cost pool, while all other unit costs are expected to be in line with previous expectations.

    The Company’s other fiscal 2025 guidance assumptions remain largely unchanged and are detailed in the table on page 8.

    DISCUSSION OF FOURTH QUARTER RESULTS BY SEGMENT

    The following earnings discussion of each operating segment for the quarter ended September 30, 2024 is summarized in a tabular form on pages 9 and 10 of this report (earnings drivers for the fiscal year ended September 30, 2024 are summarized on pages 11 and 12). It may be helpful to refer to those tables while reviewing this discussion.

    Note that management defines adjusted operating results as reported GAAP earnings adjusted for items impacting comparability, and adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.

    Upstream Business

    Exploration and Production Segment

    The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC (“Seneca”). Seneca explores for, develops and produces primarily natural gas reserves in Pennsylvania.

     Three Months Ended
     September 30,
    (in thousands) 2024   2023  Variance
    GAAP Earnings$(166,475) $36,772  $(203,247)
    Impairment of assets, net of tax 204,089   —   204,089 
    Unrealized (gain) loss on derivative asset, net of tax 1,239   (2,028)  3,267 
    Adjusted Operating Results$38,853  $34,744  $4,109 
          
    Adjusted EBITDA$129,258  $132,641  $(3,383)


    Seneca’s fourth quarter GAAP earnings decreased $203.2 million versus the prior year. This was primarily driven by non-cash, pre-tax impairment charges of $272.4 million ($204.1 million after-tax), the vast majority of which is related to a “ceiling test” impairment which required Seneca to write-down the book value of its reserves under the full cost method of accounting. Excluding impairments, as well as the net impact of unrealized losses related to reductions in the fair value of contingent consideration received in connection with the June 2022 divestiture of Seneca’s California assets (see table above), Seneca's adjusted operating results increased $4.1 million primarily due to higher realized natural gas prices and a lower effective income tax rate, partially offset by lower natural gas production and higher operating expenses.

    Each quarter, Seneca is required to perform a ceiling test comparing the present value of future net revenues from its reserves, after the effect of income taxes, with the book value of those reserves at the balance sheet date. The future net reserves (“the ceiling”) are based on an unweighted arithmetic average of first day of the month pricing for each month within the 12-month period prior to the end of the reporting period, adjusted for the impact of Seneca’s future natural gas hedges, discounted at the required rate of 10%. If the book value of the reserves exceeds the ceiling, a non-cash impairment charge must be recorded in order to reduce the book value of the reserves to the calculated ceiling. For purposes of the ceiling test, the 12-month average of first day of the month pricing for NYMEX natural gas for the period ended September 30, 2024 was $2.21 per MMBtu. It is expected that Seneca will record an additional non-cash impairment in the first quarter of fiscal 2025 and could record additional impairments beyond that depending on the commodity price environment.

    During the fourth quarter, Seneca produced 91.9 Bcf of natural gas, a decrease of 1.8 Bcf, or 2%, from the prior year. During the quarter, Seneca voluntarily curtailed 1.5 Bcf of production due to low in-basin pricing. Absent those curtailments, production would have been largely unchanged compared to the prior year.

    Seneca’s average realized natural gas price, after the impact of hedging and transportation costs, was $2.40 per Mcf, an increase of $0.07 per Mcf, or 3%, from the prior year. Seneca’s hedging portfolio provided an uplift of $0.67 per Mcf during the quarter, which more than offset a 13% decrease in pre-hedge natural gas price realizations versus the prior year.

    On a per unit basis, fourth quarter lease operating and transportation expense (“LOE”) was $0.74 per Mcf, an increase of $0.05 per Mcf from the prior year. On an absolute basis, LOE increased $3.2 million ($0.03 per Mcf) largely as a result of the timing of certain repairs and maintenance costs, as well as some one-time road repair costs related to Tropical Storm Debby, and higher intercompany gathering costs. LOE included $51.3 million ($0.56 per Mcf) for gathering and compression services from the Company’s Gathering segment to connect Seneca’s production to sales points along interstate pipelines.

    General and administrative (“G&A”) expense was $0.20 per Mcf, an increase of $0.02 per Mcf from the prior year. On an absolute basis, Seneca’s G&A expense increased $0.8 million primarily due to increases in personnel costs.

    DD&A expense was $0.69 per Mcf, a decrease of $0.02 per Mcf from the prior year. Absolute DD&A expense decreased $2.6 million ($0.03 per Mcf) due to the ceiling test impairment incurred during the third quarter of fiscal 2024 that lowered Seneca’s full cost pool depletable base.

    The reduction in Seneca’s income tax expense was primarily driven by a decrease in pre-tax income and lower state income tax expense. The lower state income taxes were a result of a decrease in Pennsylvania’s state income tax rate from 9.99% in the prior year to 8.99% in the current year, as well as the change in the mix of revenues between state jurisdictions.

    Proved Reserves Year-End Update

    Seneca’s total proved reserves at September 30, 2024 were 4,753 Bcfe, an increase of 217 Bcfe, or 5%, from September 30, 2023. This increase was a result of Seneca replacing 155% of its fiscal 2024 production. Proved developed reserves at the end of fiscal 2024 were 3,486 Bcfe, representing 73% of total proved reserves. In fiscal 2024, Seneca added 602 Bcfe of proved reserve extensions and discoveries and 7 Bcfe of net positive revisions due primarily to improvements in well performance and changes in development plans, partially offset by price-related revisions.

    Midstream Businesses

    Pipeline and Storage Segment

    The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.

     Three Months Ended
     September 30,
    (in thousands) 2024   2023 Variance
    GAAP Earnings$(5,812) $23,354 $(29,166)
    Impairment of assets, net of tax 33,759   —  33,759 
    Adjusted Operating Results$27,947  $23,354 $4,593 
          
    Adjusted EBITDA$62,527  $56,236 $6,291 


    The Pipeline and Storage segment’s fourth quarter GAAP earnings decreased $29.2 million versus the prior year. This was primarily driven by a non-cash, pre-tax impairment charge of $46.1 million ($33.8 million after-tax) to write-down the carrying value of certain assets associated with Supply Corporation and Empire's Northern Access project. Excluding this impairment, the Pipeline and Storage segment’s adjusted operating results increased $4.6 million primarily due to higher operating revenues, partly offset by higher operation and maintenance (“O&M”) and interest expenses.

    The impairment of the Northern Access project was a result of a detailed review of the project following the favorable resolution of pending litigation in the U.S. Court of Appeals for the D.C. Circuit earlier in the fiscal year. In connection with this review, Supply Corporation and Empire evaluated updated project costs, as well as the status of necessary state and federal authorizations, many of which expired during the extensive, multi-year litigation with the New York State Department of Environmental Conservation and other project opponents. Taking into consideration general inflationary pressures on project costs and the pipeline transportation rate increases necessary to support the project, along with the ongoing challenges facing natural gas pipeline development in the State of New York, Supply Corporation, Empire, and Seneca agreed to terminate the precedent agreements on October 16, 2024. As a result, the Company is unlikely to pursue construction of the project and has taken an impairment charge at September 30, 2024.

    The increase in operating revenues of $10.5 million, or 11%, was primarily attributable to an increase in Supply Corporation’s transportation and storage rates effective February 1, 2024, in accordance with its rate case settlement.

    O&M expense increased $4.0 million primarily due to higher pipeline integrity and personnel costs. Interest expense increased $0.9 million primarily due to a higher average amount of net borrowings.

    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
     September 30,
    (in thousands) 2024  2023 Variance
    GAAP Earnings$24,403 $26,517 $(2,114)
          
    Adjusted EBITDA$43,988 $46,874 $(2,886)


    The Gathering segment’s fourth quarter GAAP earnings decreased $2.1 million versus the prior year due to higher O&M and DD&A expense. O&M expense increased $2.1 million compared to the prior year primarily due to higher material costs, higher outside services expenses (such as contractor fees for compressor repairs, maintenance and overhauls), as well as higher personnel costs. DD&A expense increased $0.9 million primarily due 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 Corporation”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.

     Three Months Ended
     September 30,
    (in thousands) 2024   2023  Variance
    GAAP Earnings$(16,759) $(7,179) $(9,580)
          
    Adjusted EBITDA$(228) $6,693  $(6,921)


    The Utility segment’s fourth quarter GAAP net loss was $9.6 million higher than the net loss in the prior year's fourth quarter due to lower customer margins (operating revenues less purchased gas sold), an increase in O&M and interest expenses and a higher effective income tax rate.

    The $2.5 million decline in customer margin for the quarter was primarily due to adjustments related to annual reconciliations of certain regulatory rate and cost recovery mechanisms, the largest of which was negatively impacted by lower natural gas prices compared to last year. This was partially offset by the benefit from higher revenues from Distribution Corporation’s system modernization tracking mechanisms in its New York service territory and the ongoing impact of the base rate increase in its Pennsylvania service territory that went into effect in August 2023.

    O&M expense increased by $3.8 million, primarily driven by higher personnel costs, expenses related to the current New York rate case proceeding, as well as costs related to the timing of leak patrols and higher technology-related costs.

    Interest expense increased $1.3 million primarily due to a higher average amount of net borrowings. The increase in the Utility segment’s effective income tax rate was primarily driven by the recognition of tax deductions in the prior-year fourth quarter related to the adoption of updated IRS guidance on repairs and maintenance expenditures published in 2023.

    New York Rate Case Update

    The Company filed a Joint Proposal with the New York Public Service Commission (“NYPSC”) on September 9, 2024, that, if approved, would establish a three-year rate plan commencing October 1, 2024. The Joint Proposal would allow the Company to raise its base delivery rates to recover its increasing costs of providing safe and reliable utility service, including the required rate of return on utility rate base, higher operating costs, and an increase in depreciation expense. The Joint Proposal allows for an $86 million increase in annual revenue requirement over three years, with the first-year impact of $57 million in fiscal 2025 and the remainder in fiscal 2026 and 2027. The Joint Proposal is not deemed final as it remains subject to Commission approval. The Joint Proposal includes standard make-whole language allowing the recovery of authorized revenues between October 1, 2024, and the start of new rates.

    Corporate and All Other

    The Company’s operations that are included in Corporate and All Other generated a combined net loss of $3.0 million in the current-year fourth quarter, which was $2.8 million lower than the combined net loss of $5.8 million in the prior-year fourth quarter. The reduction in net loss was primarily driven by lower O&M expense as a result of a decrease in professional services expense. In addition, the mark-to-market of investment securities swung from a modest unrealized loss in fiscal 2023 to a modest unrealized gain in the current year.

    EARNINGS TELECONFERENCE

    A conference call to discuss the results will be held on Thursday, November 7, 2024, at 10 a.m. ET. All participants must pre-register to join this conference using the Participant Registration link. A webcast link to the conference call will be provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay will be available following the call through the end of the day, Thursday, November 14, 2024. To access the replay, dial 1-866-813-9403 and provide Access Code 646147.

    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.nationalfuel.com.

    Analyst Contact:Natalie M. Fischer716-857-7315
    Media Contact:Karen L. Merkel716-857-7654


    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: 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; changes in the price of natural gas; 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; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in 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, water availability and disposal or recycling opportunities of used water, 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; the Company’s ability to complete strategic transactions; 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 2025. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below.

    While the Company expects to record an additional ceiling test impairment charge, certain adjustments to unrealized gain or loss on a derivative asset and unrealized gain or loss on investments during the fiscal year ending September 30, 2025, the amounts of these and other potential adjustments and charges 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 2025 Guidance Updated FY 2025 Guidance
    Adjusted Consolidated Earnings per Share, excluding items impacting comparability$5.75 to $6.25 $5.50 to $6.00
    Consolidated Effective Tax Rate~ 24.5 - 25% ~ 24.5 - 25%
        
    Capital Expenditures(Millions)   
    Exploration and Production$495 - $525 $495 - $525
    Pipeline and Storage$130 - $150 $130 - $150
    Gathering$95 - $110 $95 - $110
    Utility$165 - $185 $165 - $185
    Consolidated Capital Expenditures$885 - $970 $885 - $970
        
    Exploration and Production Segment Guidance   
        
    Commodity Price Assumptions   
    NYMEX natural gas price$3.25 /MMBtu $2.80 /MMBtu
    Appalachian basin spot price$2.30 /MMBtu $2.00 /MMBtu
        
    Realized natural gas prices, after hedging ($/Mcf)$2.62 - $2.66 $2.47 - $2.51
        
    Production (Bcf)400 to 420 400 to 420
        
    E&P Operating Costs($/Mcf)   
    LOE$0.68 - $0.70 $0.68 - $0.70
    G&A$0.18 - $0.19 $0.18 - $0.19
    DD&A$0.70 - $0.74 $0.65 - $0.69
        
    Other Business Segment Guidance(Millions)   
    Gathering Segment Revenues$245 - $255 $245 - $255
    Pipeline and Storage Segment Revenues$415 - $435 $415 - $435

     

    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
    QUARTER ENDED SEPTEMBER 30, 2024
    (Unaudited)
                
     Upstream Midstream Downstream    
                
     Exploration & Pipeline &     Corporate /  
    (Thousands of Dollars)Production Storage Gathering Utility All Other Consolidated*
                
    Fourth quarter 2023 GAAP earnings$36,772  $23,354  $26,517  $(7,179) $(5,787) $73,677 
    Items impacting comparability:           
    Unrealized (gain) loss on derivative asset (2,803)          (2,803)
    Tax impact of unrealized (gain) loss on derivative asset 775           775 
    Unrealized (gain) loss on other investments         719   719 
    Tax impact of unrealized (gain) loss on other investments         (151)  (151)
    Fourth quarter 2023 adjusted operating results 34,744   23,354   26,517   (7,179)  (5,219)  72,217 
    Drivers of adjusted operating results**           
    Upstream Revenues           
    Higher (lower) natural gas production (3,331)          (3,331)
    Higher (lower) realized natural gas prices, after hedging 4,433           4,433 
    Midstream Revenues           
    Higher (lower) operating revenues   8,298   (389)      7,909 
    Downstream Margins***           
    Impact of usage and weather       (678)    (678)
    Impact of new rates in Pennsylvania       442     442 
    System modernization and improvement tracker revenues       1,714     1,714 
    Regulatory revenue adjustments       (3,180)    (3,180)
    Operating Expenses           
    Lower (higher) lease operating and transportation expenses (2,527)          (2,527)
    Lower (higher) operating expenses (1,005)  (3,192)  (1,697)  (3,023)  1,991   (6,926)
    Lower (higher) depreciation / depletion 2,086     (716)  (441)    929 
    Other Income (Expense)           
    (Higher) lower interest expense   (738)    (1,160)    (1,898)
    Income Taxes           
    Lower (higher) income tax expense / effective tax rate 4,439   390   862   (3,089)  (556)  2,046 
    All other / rounding 14   (165)  (174)  (165)  (168)  (658)
    Fourth quarter 2024 adjusted operating results 38,853   27,947   24,403   (16,759)  (3,952)  70,492 
    Items impacting comparability:           
    Impairment of assets (272,358)  (46,075)        (318,433)
    Tax impact of impairment of assets 68,269   12,316         80,585 
    Unrealized gain (loss) on derivative asset (1,700)          (1,700)
    Tax impact of unrealized gain (loss) on derivative asset 461           461 
    Unrealized gain (loss) on other investments         1,232   1,232 
    Tax impact of unrealized gain (loss) on other investments         (258)  (258)
    Fourth quarter 2024 GAAP earnings$(166,475) $(5,812) $24,403  $(16,759) $(2,978) $(167,621)
                
    * Amounts do not reflect intercompany eliminations.           
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
     

     

    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
    QUARTER ENDED SEPTEMBER 30, 2024
    (Unaudited)
                
     Upstream Midstream Downstream    
                
     Exploration & Pipeline &     Corporate /  
     Production Storage Gathering Utility All Other Consolidated*
                
    Fourth quarter 2023 GAAP earnings per share$0.40  $0.25  $0.29  $(0.08) $(0.06) $0.80 
    Items impacting comparability:           
    Unrealized (gain) loss on derivative asset, net of tax (0.02)          (0.02)
    Unrealized (gain) loss on other investments, net of tax         0.01   0.01 
    Rounding         (0.01)  (0.01)
    Fourth quarter 2023 adjusted operating results per share 0.38   0.25   0.29   (0.08)  (0.06)  0.78 
    Drivers of adjusted operating results**           
    Upstream Revenues           
    Higher (lower) natural gas production (0.04)          (0.04)
    Higher (lower) realized natural gas prices, after hedging 0.05           0.05 
    Midstream Revenues           
    Higher (lower) operating revenues   0.09   —       0.09 
    Downstream Margins***           
    Impact of usage and weather       (0.01)    (0.01)
    Impact of new rates in Pennsylvania       —     — 
    System modernization and improvement tracker revenues       0.02     0.02 
    Regulatory revenue adjustments       (0.03)    (0.03)
    Operating Expenses           
    Lower (higher) lease operating and transportation expenses (0.03)          (0.03)
    Lower (higher) operating expenses (0.01)  (0.03)  (0.02)  (0.03)  0.02   (0.07)
    Lower (higher) depreciation / depletion 0.02     (0.01)  —     0.01 
    Other Income (Expense)           
    (Higher) lower interest expense   (0.01)    (0.01)    (0.02)
    Income Taxes           
    Lower (higher) income tax expense / effective tax rate 0.05   —   0.01   (0.03)  (0.01)  0.02 
    All other / rounding —   —   —   (0.01)  0.01   — 
    Fourth quarter 2024 adjusted operating results per share 0.42   0.30   0.27   (0.18)  (0.04)  0.77 
    Items impacting comparability:           
    Impairment of assets, net of tax (2.24)  (0.37)        (2.61)
    Unrealized gain (loss) on derivative asset, net of tax (0.01)          (0.01)
    Unrealized gain (loss) on other investments, net of tax         0.01   0.01 
    Rounding 0.01         (0.01)  — 
    Fourth quarter 2024 GAAP earnings per share$(1.82) $(0.07) $0.27  $(0.18) $(0.04) $(1.84)
                
    * Amounts do not reflect intercompany eliminations.           
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
     

     

    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
    TWELVE MONTHS ENDED SEPTEMBER 30, 2024
    (Unaudited)
                
     Upstream Midstream Downstream    
                
     Exploration & Pipeline &     Corporate /  
    (Thousands of Dollars)Production Storage Gathering Utility All Other Consolidated*
    Fiscal 2023 GAAP earnings$232,275  $100,501  $99,724  $48,395  $(4,029) $476,866 
    Items impacting comparability:           
    Unrealized (gain) loss on derivative asset 899           899 
    Tax impact of unrealized (gain) loss on derivative asset (240)          (240)
    Unrealized (gain) loss on other investments         (913)  (913)
    Tax impact of unrealized (gain) loss on other investments         192   192 
    Fiscal 2023 adjusted operating results 232,934   100,501   99,724   48,395   (4,750)  476,804 
    Drivers of adjusted operating results**           
    Upstream Revenues           
    Higher (lower) natural gas production 39,805           39,805 
    Higher (lower) realized natural gas prices, after hedging (34,033)          (34,033)
    Higher (lower) other operating revenues (3,729)          (3,729)
    Midstream Revenues           
    Higher (lower) operating revenues   26,230   10,987       37,217 
    Downstream Margins***           
    Impact of usage and weather       (1,388)    (1,388)
    Impact of new rates in Pennsylvania       18,104     18,104 
    System modernization and improvement tracker revenues       7,924     7,924 
    Regulatory revenue adjustments       (5,299)    (5,299)
    Higher (lower) other operating revenues       (2,094)    (2,094)
    Operating Expenses           
    Lower (higher) lease operating and transportation expenses (13,724)          (13,724)
    Lower (higher) operating expenses (8,908)  (7,648)  (1,247)  (10,747)  412   (28,138)
    Lower (higher) property, franchise and other taxes 3,218   (653)        2,565 
    Lower (higher) depreciation / depletion (29,074)  (2,925)  (2,443)  (3,011)    (37,453)
    Other Income (Expense)           
    Higher (lower) other income   1,565     1,714   (2,027)  1,252 
    (Higher) lower interest expense (4,331)  (3,104)  619   (935)  1,827   (5,924)
    Income Taxes           
    Lower (higher) income tax expense / effective tax rate 7,331   (456)  (141)  4,446   (491)  10,689 
    All other / rounding 413   (81)  (586)  (20)  427   153 
    Fiscal 2024 adjusted operating results 189,902   113,429   106,913   57,089   (4,602)  462,731 
    Items impacting comparability:           
    Impairment of assets (473,054)  (46,075)        (519,129)
    Tax impact of impairment of assets 123,955   12,316         136,271 
    Unrealized gain (loss) on derivative asset (6,548)          (6,548)
    Tax impact of unrealized gain (loss) on derivative asset 1,791           1,791 
    Unrealized gain (loss) on other investments         3,034   3,034 
    Tax impact of unrealized gain (loss) on other investments         (637)  (637)
    Fiscal 2024 GAAP earnings$(163,954) $79,670  $106,913  $57,089  $(2,205) $77,513 
                
    * Amounts do not reflect intercompany eliminations.           
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
     

     

    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
    TWELVE MONTHS ENDED SEPTEMBER 30, 2024
    (Unaudited)
                
     Upstream Midstream Downstream    
                
     Exploration & Pipeline &     Corporate /  
     Production Storage Gathering Utility All Other Consolidated*
    Fiscal 2023 GAAP earnings per share$2.52  $1.09  $1.08  $0.52  $(0.04) $5.17 
    Items impacting comparability:           
    Unrealized (gain) loss on derivative asset, net of tax 0.01           0.01 
    Unrealized (gain) loss on other investments, net of tax         (0.01)  (0.01)
    Rounding (0.01)        0.01   — 
    Fiscal 2023 adjusted operating results per share 2.52   1.09   1.08   0.52   (0.04)  5.17 
    Drivers of adjusted operating results**           
    Upstream Revenues           
    Higher (lower) natural gas production 0.43           0.43 
    Higher (lower) realized natural gas prices, after hedging (0.37)          (0.37)
    Higher (lower) other operating revenues (0.04)          (0.04)
    Midstream Revenues           
    Higher (lower) operating revenues   0.28   0.12       0.40 
    Downstream Margins***           
    Impact of usage and weather       (0.02)    (0.02)
    Impact of new rates in Pennsylvania       0.20     0.20 
    System modernization and improvement tracker revenues       0.09     0.09 
    Regulatory revenue adjustments       (0.06)    (0.06)
    Higher (lower) other operating revenues       (0.02)    (0.02)
    Operating Expenses           
    Lower (higher) lease operating and transportation expenses (0.15)          (0.15)
    Lower (higher) operating expenses (0.10)  (0.08)  (0.01)  (0.12)  —   (0.31)
    Lower (higher) property, franchise and other taxes 0.03   (0.01)        0.02 
    Lower (higher) depreciation / depletion (0.31)  (0.03)  (0.03)  (0.03)    (0.40)
    Other Income (Expense)           
    Higher (lower) other income   0.02     0.02   (0.02)  0.02 
    (Higher) lower interest expense (0.05)  (0.03)  0.01   (0.01)  0.02   (0.06)
    Income Taxes           
    Lower (higher) income tax expense / effective tax rate 0.08   —   —   0.05   (0.01)  0.12 
    All other / rounding 0.02   (0.01)  (0.01)  —   (0.01)  (0.01)
    Fiscal 2024 adjusted operating results per share 2.06   1.23   1.16   0.62   (0.06)  5.01 
    Items impacting comparability:           
    Impairment of assets, net of tax (3.78)  (0.37)        (4.15)
    Unrealized gain (loss) on derivative asset, net of tax (0.05)          (0.05)
    Unrealized gain (loss) on other investments, net of tax         0.03   0.03 
    Rounding (0.01)        0.01   — 
    Fiscal 2024 GAAP earnings per share$(1.78) $0.86  $1.16  $0.62  $(0.02) $0.84 
                
    * Amounts do not reflect intercompany eliminations.           
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.

     

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
            
    (Thousands of Dollars, except per share amounts)       
     Three Months Ended Twelve Months Ended
     September 30, September 30,
     (Unaudited) (Unaudited)
    SUMMARY OF OPERATIONS 2024   2023   2024   2023 
    Operating Revenues:       
    Utility Revenues$79,830  $78,865  $696,807  $941,779 
    Exploration and Production and Other Revenues 221,540   220,348   961,078   958,455 
    Pipeline and Storage and Gathering Revenues 70,698   69,735   286,925   273,537 
      372,068   368,948   1,944,810   2,173,771 
    Operating Expenses:       
    Purchased Gas (17,382)  (12,865)  150,062   437,595 
    Operation and Maintenance:       
    Utility 51,988   48,354   218,393   205,239 
    Exploration and Production and Other 38,540   37,955   141,308   124,270 
    Pipeline and Storage and Gathering 45,996   39,901   160,317   149,247 
    Property, Franchise and Other Taxes 22,216   20,701   88,851   92,700 
    Depreciation, Depletion and Amortization 108,847   109,599   457,026   409,573 
    Impairment of Assets 318,433   —   519,129   — 
      568,638   243,645   1,735,086   1,418,624 
            
    Operating Income (Loss) (196,570)  125,303   209,724   755,147 
            
    Other Income (Expense):       
    Other Income (Deductions) 3,237   5,384   16,226   18,138 
    Interest Expense on Long-Term Debt (33,008)  (28,449)  (122,799)  (111,948)
    Other Interest Expense (1,646)  (4,453)  (15,896)  (19,938)
            
    Income (Loss) Before Income Taxes (227,987)  97,785   87,255   641,399 
            
    Income Tax Expense (Benefit) (60,366)  24,108   9,742   164,533 
            
    Net Income (Loss) Available for Common Stock$(167,621) $73,677  $77,513  $476,866 
            
    Earnings (Loss) Per Common Share       
    Basic$(1.84) $0.80  $0.84  $5.20 
    Diluted$(1.84) $0.80  $0.84  $5.17 
            
    Weighted Average Common Shares:       
    Used in Basic Calculation 91,270,386   91,818,933   91,791,167   91,748,890 
    Used in Diluted Calculation 91,270,386   92,378,675   92,344,511   92,285,918 

     

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Unaudited)
      
     September 30, September 30,
    (Thousands of Dollars) 2024   2023 
    ASSETS   
    Property, Plant and Equipment$14,524,798  $13,635,303 
    Less - Accumulated Depreciation, Depletion and Amortization 7,185,593   6,335,441 
    Net Property, Plant and Equipment 7,339,205   7,299,862 
    Current Assets:   
    Cash and Temporary Cash Investments 38,222   55,447 
    Receivables - Net 127,222   160,601 
    Unbilled Revenue 15,521   16,622 
    Gas Stored Underground 35,055   32,509 
    Materials and Supplies - at average cost 47,670   48,989 
    Other Current Assets 92,229   100,260 
    Total Current Assets 355,919   414,428 
    Other Assets:   
    Recoverable Future Taxes 80,084   69,045 
    Unamortized Debt Expense 5,604   7,240 
    Other Regulatory Assets 108,022   72,138 
    Deferred Charges 69,662   82,416 
    Other Investments 81,705   73,976 
    Goodwill 5,476   5,476 
    Prepaid Pension and Post-Retirement Benefit Costs 180,230   200,301 
    Fair Value of Derivative Financial Instruments 87,905   50,487 
    Other 5,958   4,891 
    Total Other Assets 624,646   565,970 
    Total Assets$8,319,770  $8,280,260 
    CAPITALIZATION AND LIABILITIES   
    Capitalization:   
    Comprehensive Shareholders' Equity   
    Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and   
    Outstanding - 91,005,993 Shares and 91,819,405 Shares, Respectively$91,006  $91,819 
    Paid in Capital 1,045,487   1,040,761 
    Earnings Reinvested in the Business 1,727,326   1,885,856 
    Accumulated Other Comprehensive Loss (15,476)  (55,060)
    Total Comprehensive Shareholders' Equity 2,848,343   2,963,376 
    Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs 2,188,243   2,384,485 
    Total Capitalization 5,036,586   5,347,861 
    Current and Accrued Liabilities:   
    Notes Payable to Banks and Commercial Paper 90,700   287,500 
    Current Portion of Long-Term Debt 500,000   — 
    Accounts Payable 165,068   152,193 
    Amounts Payable to Customers 42,720   59,019 
    Dividends Payable 46,872   45,451 
    Interest Payable on Long-Term Debt 27,247   20,399 
    Customer Advances 19,373   21,003 
    Customer Security Deposits 36,265   28,764 
    Other Accruals and Current Liabilities 162,903   160,974 
    Fair Value of Derivative Financial Instruments 4,744   31,009 
    Total Current and Accrued Liabilities 1,095,892   806,312 
    Other Liabilities:   
    Deferred Income Taxes 1,111,165   1,124,170 
    Taxes Refundable to Customers 305,645   268,562 
    Cost of Removal Regulatory Liability 292,477   277,694 
    Other Regulatory Liabilities 151,452   165,441 
    Other Post-Retirement Liabilities 3,511   2,915 
    Asset Retirement Obligations 203,006   165,492 
    Other Liabilities 120,036   121,813 
    Total Other Liabilities 2,187,292   2,126,087 
    Commitments and Contingencies —   — 
    Total Capitalization and Liabilities$8,319,770  $8,280,260 

     

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
      Twelve Months Ended
      September 30,
    (Thousands of Dollars)  2024   2023 
         
    Operating Activities:    
    Net Income Available for Common Stock $77,513  $476,866 
    Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:    
    Impairment of Assets  519,129   — 
    Depreciation, Depletion and Amortization  457,026   409,573 
    Deferred Income Taxes  (2,610)  151,403 
    Stock-Based Compensation  22,080   20,630 
    Other  24,411   19,647 
    Change in:    
    Receivables and Unbilled Revenue  34,369   213,579 
    Gas Stored Underground and Materials and Supplies  1,738   (8,406)
    Unrecovered Purchased Gas Costs  —   99,342 
    Other Current Assets  8,144   (41,077)
    Accounts Payable  5,616   (37,095)
    Amounts Payable to Customers  (16,299)  58,600 
    Customer Advances  (1,630)  (5,105)
    Customer Security Deposits  7,501   4,481 
    Other Accruals and Current Liabilities  2,637   (67,664)
    Other Assets  (48,183)  (26,564)
    Other Liabilities  (25,481)  (31,135)
    Net Cash Provided by Operating Activities $1,065,961  $1,237,075 
         
    Investing Activities:    
    Capital Expenditures $(931,236) $(1,009,868)
    Acquisition of Upstream Assets  —   (124,758)
    Sale of Fixed Income Mutual Fund Shares in Grantor Trust  —   10,000 
    Other  (2,669)  12,279 
    Net Cash Used in Investing Activities $(933,905) $(1,112,347)
         
    Financing Activities:    
    Proceeds from Issuance of Short-Term Note Payable to Bank $—  $250,000 
    Repayment of Short-Term Note Payable to Bank  —   (250,000)
    Net Change in Other Short-Term Notes Payable to Banks and Commercial Paper  (196,800)  227,500 
    Shares Repurchased Under Repurchase Plan  (64,086)  — 
    Reduction of Long-Term Debt  —   (549,000)
    Net Proceeds From Issuance of Long-Term Debt  299,359   297,306 
    Dividends Paid on Common Stock  (183,798)  (176,096)
    Net Repurchases of Common Stock Under Stock and Benefit Plans  (3,956)  (6,709)
    Net Cash Used in Financing Activities $(149,281) $(206,999)
         
    Net Decrease in Cash, Cash Equivalents, and Restricted Cash  (17,225)  (82,271)
    Cash, Cash Equivalents, and Restricted Cash at Beginning of Period  55,447   137,718 
    Cash, Cash Equivalents, and Restricted Cash at September 30 $38,222  $55,447 

     

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
              
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
              
    UPSTREAM BUSINESS
              
     Three Months Ended Twelve Months Ended
    (Thousands of Dollars, except per share amounts)September 30, September 30,
    EXPLORATION AND PRODUCTION SEGMENT 2024   2023  Variance  2024  2023 Variance
    Total Operating Revenues$221,540  $220,348  $1,192  $961,078 $958,455 $2,623 
    Operating Expenses:         
    Operation and Maintenance:         
    General and Administrative Expense 17,977   17,163   814   71,148  66,074  5,074 
    Lease Operating and Transportation Expense 67,611   64,412   3,199   270,927  253,555  17,372 
    All Other Operation and Maintenance Expense 2,815   2,357   458   15,529  9,327  6,202 
    Property, Franchise and Other Taxes 3,879   3,775   104   13,643  17,717  (4,074)
    Depreciation, Depletion and Amortization 63,754   66,394   (2,640)  277,945  241,142  36,803 
    Impairment of Assets 272,358   —   272,358   473,054  —  473,054 
      428,394   154,101   274,293   1,122,246  587,815  534,431 
              
    Operating Income (Loss) (206,854)  66,247   (273,101)  (161,168) 370,640  (531,808)
              
    Other Income (Expense):         
    Non-Service Pension and Post-Retirement Benefit Credit 100   347   (247)  402  1,389  (987)
    Interest and Other Income (Deductions) (988)  3,457   (4,445)  (1,819) 2,359  (4,178)
    Interest Expense (14,753)  (15,268)  515   (59,799) (54,317) (5,482)
    Income (Loss) Before Income Taxes (222,495)  54,783   (277,278)  (222,384) 320,071  (542,455)
    Income Tax Expense (Benefit) (56,020)  18,011   (74,031)  (58,430) 87,796  (146,226)
    Net Income (Loss)$(166,475) $36,772  $(203,247) $(163,954)$232,275 $(396,229)
    Net Income (Loss) Per Share (Diluted)$(1.82) $0.40  $(2.22) $(1.78)$2.52 $(4.30)
              

     

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
              
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
              
    MIDSTREAM BUSINESSES
              
     Three Months Ended Twelve Months Ended
    (Thousands of Dollars, except per share amounts)September 30, September 30,
    PIPELINE AND STORAGE SEGMENT 2024   2023  Variance  2024  2023 Variance
    Revenues from External Customers$67,318  $64,846  $2,472  $271,388 $259,646 $11,742 
    Intersegment Revenues 37,224   29,192   8,032   141,005  119,545  21,460 
    Total Operating Revenues 104,542   94,038   10,504   412,393  379,191  33,202 
    Operating Expenses:         
    Purchased Gas (3)  326   (329)  1,537  1,436  101 
    Operation and Maintenance 33,194   29,154   4,040   116,335  106,654  9,681 
    Property, Franchise and Other Taxes 8,824   8,322   502   34,601  33,774  827 
    Depreciation, Depletion and Amortization 18,373   17,953   420   74,530  70,827  3,703 
    Impairment of Assets 46,075   —   46,075   46,075  —  46,075 
      106,463   55,755   50,708   273,078  212,691  60,387 
              
    Operating Income (Loss) (1,921)  38,283   (40,204)  139,315  166,500  (27,185)
              
    Other Income (Expense):         
    Non-Service Pension and Post-Retirement Benefit Credit 1,257   1,330   (73)  5,030  5,319  (289)
    Interest and Other Income 2,458   2,017   441   8,798  6,670  2,128 
    Interest Expense (11,730)  (10,796)  (934)  (47,428) (43,499) (3,929)
    Income (Loss) Before Income Taxes (9,936)  30,834   (40,770)  105,715  134,990  (29,275)
    Income Tax Expense (Benefit) (4,124)  7,480   (11,604)  26,045  34,489  (8,444)
    Net Income (Loss)$(5,812) $23,354  $(29,166) $79,670 $100,501 $(20,831)
    Net Income (Loss) Per Share (Diluted)$(0.07) $0.25  $(0.32) $0.86 $1.09 $(0.23)
              
              
     Three Months Ended Twelve Months Ended
     September 30, September 30,
    GATHERING SEGMENT 2024   2023  Variance  2024  2023 Variance
    Revenues from External Customers$3,380  $4,889  $(1,509) $15,537 $13,891 $1,646 
    Intersegment Revenues 54,145   53,129   1,016   228,688  216,426  12,262 
    Total Operating Revenues 57,525   58,018   (493)  244,225  230,317  13,908 
    Operating Expenses:         
    Operation and Maintenance 13,271   11,123   2,148   45,954  44,375  1,579 
    Property, Franchise and Other Taxes 266   21   245   489  60  429 
    Depreciation, Depletion and Amortization 10,017   9,111   906   38,817  35,725  3,092 
      23,554   20,255   3,299   85,260  80,160  5,100 
              
    Operating Income 33,971   37,763   (3,792)  158,965  150,157  8,808 
              
    Other Income (Expense):         
    Non-Service Pension and Post-Retirement Benefit Credit 9   37   (28)  38  150  (112)
    Interest and Other Income 76   75   1   333  534  (201)
    Interest Expense (3,381)  (3,433)  52   (14,206) (14,989) 783 
    Income Before Income Taxes 30,675   34,442   (3,767)  145,130  135,852  9,278 
    Income Tax Expense 6,272   7,925   (1,653)  38,217  36,128  2,089 
    Net Income$24,403  $26,517  $(2,114) $106,913 $99,724 $7,189 
    Net Income Per Share (Diluted)$0.27  $0.29  $(0.02) $1.16 $1.08 $0.08 
              

     

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
              
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
              
    DOWNSTREAM BUSINESS
              
     Three Months Ended Twelve Months Ended
    (Thousands of Dollars, except per share amounts)September 30, September 30,
    UTILITY SEGMENT 2024   2023  Variance  2024  2023 Variance
    Revenues from External Customers$79,830  $78,865  $965  $696,807 $941,779 $(244,972)
    Intersegment Revenues 77   81   (4)  555  581  (26)
    Total Operating Revenues 79,907   78,946   961   697,362  942,360  (244,998)
    Operating Expenses:         
    Purchased Gas 18,232   14,743   3,489   283,215  548,195  (264,980)
    Operation and Maintenance 52,882   49,056   3,826   222,142  208,539  13,603 
    Property, Franchise and Other Taxes 9,021   8,454   567   39,492  40,624  (1,132)
    Depreciation, Depletion and Amortization 16,583   16,026   557   65,261  61,450  3,811 
      96,718   88,279   8,439   610,110  858,808  (248,698)
              
    Operating Income (Loss) (16,811)  (9,333)  (7,478)  87,252  83,552  3,700 
              
    Other Income (Expense):         
    Non-Service Pension and Post-Retirement Benefit Credit 251   9   242   2,040  4  2,036 
    Interest and Other Income 1,740   1,437   303   6,475  6,339  136 
    Interest Expense (9,325)  (8,041)  (1,284)  (34,727) (34,233) (494)
    Income (Loss) Before Income Taxes (24,145)  (15,928)  (8,217)  61,040  55,662  5,378 
    Income Tax Expense (Benefit) (7,386)  (8,749)  1,363   3,951  7,267  (3,316)
    Net Income (Loss)$(16,759) $(7,179) $(9,580) $57,089 $48,395 $8,694 
    Net Income (Loss) Per Share (Diluted)$(0.18) $(0.08) $(0.10) $0.62 $0.52 $0.10 
              

     

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
              
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
              
     Three Months Ended Twelve Months Ended
    (Thousands of Dollars, except per share amounts)September 30, September 30,
    ALL OTHER 2024   2023  Variance  2024  2023 Variance
    Total Operating Revenues$—  $—  $—  $— $— $— 
    Operating Expenses:         
    Operation and Maintenance 17   —   17   17  21  (4)
      17   —   17   17  21  (4)
              
    Operating Loss (17)  —   (17)  (17) (21) 4 
    Other Income (Expense):         
    Interest and Other Income (Deductions) (227)  (66)  (161)  (412) (517) 105 
    Interest Expense (112)  (68)  (44)  (374) (157) (217)
    Loss before Income Taxes (356)  (134)  (222)  (803) (695) (108)
    Income Tax Benefit (81)  (33)  (48)  (186) (164) (22)
    Net Loss$(275) $(101) $(174) $(617)$(531)$(86)
    Net Loss Per Share (Diluted)$(0.01) $—  $(0.01) $— $— $— 
          
     Three Months Ended Twelve Months Ended
     September 30, September 30,
    CORPORATE 2024   2023  Variance  2024  2023 Variance
    Revenues from External Customers$—  $—  $—  $— $— $— 
    Intersegment Revenues 1,216   932   284   5,073  4,388  685 
    Total Operating Revenues 1,216   932   284   5,073  4,388  685 
    Operating Expenses:         
    Operation and Maintenance 5,808   8,345   (2,537)  18,597  19,115  (518)
    Property, Franchise and Other Taxes 226   129   97   626  525  101 
    Depreciation, Depletion and Amortization 120   115   5   473  429  44 
      6,154   8,589   (2,435)  19,696  20,069  (373)
              
    Operating Loss (4,938)  (7,657)  2,719   (14,623) (15,681) 1,058 
    Other Income (Expense):         
    Non-Service Pension and Post-Retirement Benefit Costs (386)  (354)  (32)  (1,548) (1,417) (131)
    Interest and Other Income 40,938   36,337   4,601   161,225  147,935  13,290 
    Interest Expense on Long-Term Debt (33,008)  (28,449)  (4,559)  (122,799) (111,948) (10,851)
    Other Interest Expense (4,336)  (6,089)  1,753   (23,698) (23,370) (328)
    Loss before Income Taxes (1,730)  (6,212)  4,482   (1,443) (4,481) 3,038 
    Income Tax Expense (Benefit) 973   (526)  1,499   145  (983) 1,128 
    Net Loss$(2,703) $(5,686) $2,983  $(1,588)$(3,498)$1,910 
    Net Loss Per Share (Diluted)$(0.03) $(0.06) $0.03  $(0.02)$(0.04)$0.02 
              
              
     Three Months Ended Twelve Months Ended
     September 30, September 30,
    INTERSEGMENT ELIMINATIONS 2024   2023  Variance  2024  2023 Variance
    Intersegment Revenues$(92,662) $(83,334) $(9,328) $(375,321)$(340,940)$(34,381)
    Operating Expenses:         
    Purchased Gas (35,611)  (27,934)  (7,677)  (134,690) (112,036) (22,654)
    Operation and Maintenance (57,051)  (55,400)  (1,651)  (240,631) (228,904) (11,727)
      (92,662)  (83,334)  (9,328)  (375,321) (340,940) (34,381)
    Operating Income —   —   —   —  —  — 
    Other Income (Expense):         
    Interest and Other Deductions (41,991)  (39,242)  (2,749)  (164,336) (150,627) (13,709)
    Interest Expense 41,991   39,242   2,749   164,336  150,627  13,709 
    Net Income$—  $—  $—  $— $— $— 
    Net Income Per Share (Diluted)$—  $—  $—  $— $— $— 

     

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                
    SEGMENT INFORMATION (Continued)
    (Thousands of Dollars)
                
     Three Months Ended Twelve Months Ended
     September 30, September 30,
     (Unaudited) (Unaudited)
         Increase     Increase
      2024  2023 (Decrease)  2024  2023 (Decrease)
                
    Capital Expenditures:           
    Exploration and Production(1)$136,529(2)$144,938(3)$(8,409) $536,349(2)(3)$737,725(3)(4)$(201,376)
    Pipeline and Storage 42,039(2) 75,109(3) (33,070)  110,830(2)(3) 141,877(3)(4) (31,047)
    Gathering 40,163(2) 47,917(3) (7,754)  109,251(2)(3) 103,295(3)(4) 5,956 
    Utility 67,108(2) 51,246(3) 15,862   184,615(2)(3) 139,922(3)(4) 44,693 
    Total Reportable Segments 285,839  319,210  (33,371)  941,045  1,122,819  (181,774)
    All Other —  —  —   —  —  — 
    Corporate 717  305  412   970  754  216 
    Total Capital Expenditures$286,556 $319,515 $(32,959) $942,015 $1,123,573 $(181,558)

    (1) The year ended September 30, 2024 includes $6.2 million related to the acquisition of assets from UGI. The year ended September 30, 2023 includes $124.8 million related to the acquisition of upstream assets acquired from SWN, as well as $25.0 million related to the acquisition of assets from EXCO and UGI. The acquisition cost for the assets acquired from SWN is reported as a component of Acquisition of Upstream Assets on the Consolidated Statement of Cash Flows. Non-acquisition capital expenditures were $530.1 million in fiscal 2024 and $587.9 million in fiscal 2023, a decrease of $57.8 million.
    (2) Capital expenditures for the quarter and year ended September 30, 2024, include accounts payable and accrued liabilities related to capital expenditures of $63.3 million, $14.4 million, $21.7 million, and $20.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at September 30, 2024, since they represent non-cash investing activities at that date.
    (3) Capital expenditures for the year ended September 30, 2024, exclude capital expenditures of $43.2 million, $31.8 million, $20.6 million and $13.6 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, 2023 and paid during the year ended September 30, 2024. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2023, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2024.
    (4) Capital expenditures for the year ended September 30, 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 year ended September 30, 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 September 30, 2023.

              
    DEGREE DAYS         
           Percent Colder
           (Warmer) Than:
    Three Months Ended September 30,Normal 2024 2023 Normal(1) Last Year(1)
    Buffalo, NY162 34 61 (79.0) (44.3)
    Erie, PA(2)78 23 59 (70.5) (61.0)
              
    Twelve Months Ended September 30,         
    Buffalo, NY6,653 5,162 5,717 (22.4) (9.7)
    Erie, PA(2)5,805 4,782 5,493 (17.6) (12.9)
              

    (1) Percents compare actual 2024 degree days to normal degree days and actual 2024 degree days to actual 2023 degree days.
    (2) Normal degree days changed from NOAA 30-year degree days to NOAA 15-year degree days with the implementation of new base rates in Pennsylvania in August 2023.

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                 
    EXPLORATION AND PRODUCTION INFORMATION
                 
      Three Months Ended Twelve Months Ended
      September 30, September 30,
          Increase     Increase
       2024  2023 (Decrease)  2024  2023 (Decrease)
                 
    Gas Production/Prices:            
    Production (MMcf)            
    Appalachia  91,902  93,709  (1,807)  392,047  372,271  19,776 
                 
    Average Prices (Per Mcf)            
    Weighted Average $1.73 $1.99 $(0.26) $1.88 $2.78 $(0.90)
    Weighted Average after Hedging  2.40  2.33  0.07   2.44  2.55  (0.11)
                 
    Selected Operating Performance Statistics:            
    General and Administrative Expense per Mcf(1) $0.20 $0.18 $0.02  $0.18 $0.18 $— 
    Lease Operating and Transportation Expense per Mcf(1)(2) $0.74 $0.69 $0.05  $0.69 $0.68 $0.01 
    Depreciation, Depletion and Amortization per Mcf(1) $0.69 $0.71 $(0.02) $0.71 $0.65 $0.06 
                 

    (1) Refer to page 16 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.
    (2) Amounts include transportation expense of $0.57 and $0.55 per Mcf for the three months ended September 30, 2024 and September 30, 2023, respectively. Amounts include transportation expense of $0.57 per Mcf for the twelve months ended September 30, 2024 and September 30, 2023.

      

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
           
    EXPLORATION AND PRODUCTION INFORMATION
     
    Hedging Summary for Fiscal 2025 Volume  Average Hedge Price
    Gas Swaps      
    NYMEX 127,030,000MMBTU $3.46 / MMBTU
    No Cost Collars 57,085,000MMBTU $3.44 / MMBTU (Floor) / $4.54 / MMBTU (Ceiling)
    Fixed Price Physical Sales 80,398,595MMBTU $2.48 / MMBTU
    Total 264,513,595MMBTU   
           
    Hedging Summary for Fiscal 2026 Volume  Average Hedge Price
    Gas Swaps      
    NYMEX 52,065,000MMBTU $3.84 / MMBTU
    No Cost Collars 59,275,000MMBTU $3.45 / MMBTU (Floor) / $4.58 / MMBTU (Ceiling)
    Fixed Price Physical Sales 76,656,505MMBTU $2.44 / MMBTU
    Total 187,996,505MMBTU   
           
    Hedging Summary for Fiscal 2027 Volume  Average Hedge Price
    Gas Swaps      
    NYMEX 36,810,000MMBTU $3.92 / MMBTU
    No Cost Collars 14,120,000MMBTU $3.31 / MMBTU (Floor) / $4.19 / MMBTU (Ceiling)
    Fixed Price Physical Sales 59,128,595MMBTU $2.50 / MMBTU
    Total 110,058,595MMBTU   
           
    Hedging Summary for Fiscal 2028 Volume  Average Hedge Price
    Gas Swaps      
    NYMEX 9,630,000MMBTU $3.67 / MMBTU
    No Cost Collars 1,880,000MMBTU $3.26 / MMBTU (Floor) / $4.00 / MMBTU (Ceiling)
    Fixed Price Physical Sales 22,011,060MMBTU $2.68 / MMBTU
    Total 33,521,060MMBTU   
           
    Hedging Summary for Fiscal 2029 Volume  Average Hedge Price
    Gas Swaps      
    NYMEX 1,500,000MMBTU $3.53 / MMBTU
    Fixed Price Physical Sales 7,050,570MMBTU $2.88 / MMBTU
    Total 8,550,570MMBTU   
           
    Hedging Summary for Fiscal 2030 Volume  Average Hedge Price
    Fixed Price Physical Sales 266,194MMBTU $2.92 / MMBTU

     

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
          
    EXPLORATION AND PRODUCTION INFORMATION
          
    Reserve Quantity Information
    (Unaudited)
          
     U.S.
     Appalachian Region
     Gas Oil Total
     (MMcf) (Mbbl) (MMcfe)
    Proved Developed and Undeveloped Reserves:     
    September 30, 20234,535,084  216  4,536,380 
    Extensions and Discoveries601,679  —  601,679 
    Revisions of Previous Estimates7,046  8  7,092 
    Production(392,047) (31) (392,230)
    September 30, 20244,751,762  193  4,752,921 
          
    Proved Developed Reserves:     
    September 30, 20233,550,034  216  3,551,330 
    September 30, 20243,484,852  193  3,486,010 

     

                 
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                 
    Pipeline and Storage Throughput - (millions of cubic feet - MMcf)    
                 
      Three Months Ended Twelve Months Ended
      September 30, September 30,
          Increase     Increase
      2024 2023 (Decrease) 2024 2023 (Decrease)
    Firm Transportation - Affiliated 16,412 17,589 (1,177) 108,845 126,500 (17,655)
    Firm Transportation - Non-Affiliated 150,126 161,750 (11,624) 648,562 689,984 (41,422)
    Interruptible Transportation 283 168 115  1,791 2,192 (401)
      166,821 179,507 (12,686) 759,198 818,676 (59,478)
                 
    Gathering Volume - (MMcf)            
      Three Months Ended Twelve Months Ended
      September 30, September 30,
          Increase     Increase
      2024 2023 (Decrease) 2024 2023 (Decrease)
    Gathered Volume 112,856 117,260 (4,404) 480,688 453,338 27,350 
                 
                 
    Utility Throughput - (MMcf)            
      Three Months Ended Twelve Months Ended
      September 30, September 30,
          Increase     Increase
      2024 2023 (Decrease) 2024 2023 (Decrease)
    Retail Sales:            
    Residential Sales 3,590 3,765 (175) 56,758 61,401 (4,643)
    Commercial Sales 588 530 58  8,989 9,342 (353)
    Industrial Sales 54 42 12  444 548 (104)
      4,232 4,337 (105) 66,191 71,291 (5,100)
    Transportation 9,313 9,419 (106) 62,297 62,986 (689)
      13,545 13,756 (211) 128,488 134,277 (5,789)
                 


    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 three and twelve months ended September 30, 2024 and 2023:

      Three Months Ended Twelve Months Ended
      September 30, September 30,
    (in thousands except per share amounts)  2024   2023   2024   2023 
    Reported GAAP Earnings $(167,621) $73,677  $77,513  $476,866 
    Items impacting comparability:        
    Impairment of assets (E&P / Pipeline & Storage)  318,433   —   519,129   — 
    Tax impact of impairment of assets  (80,585)  —   (136,271)  — 
    Unrealized (gain) loss on derivative asset (E&P)  1,700   (2,803)  6,548   899 
    Tax impact of unrealized (gain) loss on derivative asset  (461)  775   (1,791)  (240)
    Unrealized (gain) loss on other investments (Corporate / All Other)  (1,232)  719   (3,034)  (913)
    Tax impact of unrealized (gain) loss on other investments  258   (151)  637   192 
    Adjusted Operating Results $70,492  $72,217  $462,731  $476,804 
             
    Reported GAAP Earnings Per Share $(1.84) $0.80  $0.84  $5.17 
    Items impacting comparability:        
    Impairment of assets, net of tax (E&P / Pipeline & Storage)  2.61   —   4.15   — 
    Unrealized (gain) loss on derivative asset, net of tax (E&P)  0.01   (0.02)  0.05   0.01 
    Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)  (0.01)  0.01   (0.03)  (0.01)
    Rounding  —   (0.01)  —   — 
    Adjusted Operating Results Per Share $0.77  $0.78  $5.01  $5.17 


    Management defines adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel's reported GAAP earnings to adjusted EBITDA for the three and twelve months ended September 30, 2024 and 2023:

      Three Months Ended Twelve Months Ended
      September 30, September 30,
    (in thousands)  2024   2023   2024   2023 
    Reported GAAP Earnings $(167,621) $73,677  $77,513  $476,866 
    Depreciation, Depletion and Amortization  108,847   109,599   457,026   409,573 
    Other (Income) Deductions  (3,237)  (5,384)  (16,226)  (18,138)
    Interest Expense  34,654   32,902   138,695   131,886 
    Income Taxes  (60,366)  24,108   9,742   164,533 
    Impairment of Assets  318,433   —   519,129   — 
    Adjusted EBITDA $230,710  $234,902  $1,185,879  $1,164,720 
             
    Adjusted EBITDA by Segment        
    Pipeline and Storage Adjusted EBITDA $62,527  $56,236  $259,920  $237,327 
    Gathering Adjusted EBITDA  43,988   46,874   197,782   185,882 
    Total Midstream Businesses Adjusted EBITDA  106,515   103,110   457,702   423,209 
    Exploration and Production Adjusted EBITDA  129,258   132,641   589,831   611,782 
    Utility Adjusted EBITDA  (228)  6,693   152,513   145,002 
    Corporate and All Other Adjusted EBITDA  (4,835)  (7,542)  (14,167)  (15,273)
    Total Adjusted EBITDA $230,710  $234,902  $1,185,879  $1,164,720 

     

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    NON-GAAP FINANCIAL MEASURES
    SEGMENT ADJUSTED EBITDA

      Three Months Ended Twelve Months Ended
      September 30, September 30,
    (in thousands)  2024   2023   2024   2023 
    Exploration and Production Segment        
    Reported GAAP Earnings $(166,475) $36,772  $(163,954) $232,275 
    Depreciation, Depletion and Amortization  63,754   66,394   277,945   241,142 
    Other (Income) Deductions  888   (3,804)  1,417   (3,748)
    Interest Expense  14,753   15,268   59,799   54,317 
    Income Taxes  (56,020)  18,011   (58,430)  87,796 
    Impairment of Assets  272,358   —   473,054   — 
    Adjusted EBITDA $129,258  $132,641  $589,831  $611,782 
             
    Pipeline and Storage Segment        
    Reported GAAP Earnings $(5,812) $23,354  $79,670  $100,501 
    Depreciation, Depletion and Amortization  18,373   17,953   74,530   70,827 
    Other (Income) Deductions  (3,715)  (3,347)  (13,828)  (11,989)
    Interest Expense  11,730   10,796   47,428   43,499 
    Income Taxes  (4,124)  7,480   26,045   34,489 
    Impairment of Assets  46,075   —   46,075   — 
    Adjusted EBITDA $62,527  $56,236  $259,920  $237,327 
             
    Gathering Segment        
    Reported GAAP Earnings $24,403  $26,517  $106,913  $99,724 
    Depreciation, Depletion and Amortization  10,017   9,111   38,817   35,725 
    Other (Income) Deductions  (85)  (112)  (371)  (684)
    Interest Expense  3,381   3,433   14,206   14,989 
    Income Taxes  6,272   7,925   38,217   36,128 
    Adjusted EBITDA $43,988  $46,874  $197,782  $185,882 
             
    Utility Segment        
    Reported GAAP Earnings $(16,759) $(7,179) $57,089  $48,395 
    Depreciation, Depletion and Amortization  16,583   16,026   65,261   61,450 
    Other (Income) Deductions  (1,991)  (1,446)  (8,515)  (6,343)
    Interest Expense  9,325   8,041   34,727   34,233 
    Income Taxes  (7,386)  (8,749)  3,951   7,267 
    Adjusted EBITDA $(228) $6,693  $152,513  $145,002 
             
    Corporate and All Other        
    Reported GAAP Earnings $(2,978) $(5,787) $(2,205) $(4,029)
    Depreciation, Depletion and Amortization  120   115   473   429 
    Other (Income) Deductions  1,666   3,325   5,071   4,626 
    Interest Expense  (4,535)  (4,636)  (17,465)  (15,152)
    Income Taxes  892   (559)  (41)  (1,147)
    Adjusted EBITDA $(4,835) $(7,542) $(14,167) $(15,273)

     

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    NON-GAAP FINANCIAL MEASURES
    FREE CASH FLOW

    Management defines free cash flow as net cash provided by operating activities, less net cash used in investing activities, adjusted for acquisitions and divestitures. The following table reconciles National Fuel's free cash flow to Net Cash Provided by Operating Activities on the Consolidated Statement of Cash Flows for the twelve months ended September 30, 2024 and 2023:

         
      Twelve Months Ended
      September 30,
    (in thousands)  2024  2023
         
    Net Cash Provided by Operating Activities $1,065,961 $1,237,075
         
    Less:    
    Net Cash Used in Investing Activities  933,905  1,112,347
       132,056  124,728
    Plus:    
    Acquisitions  —  124,758
    Upstream Acquisitions Included in Capital Expenditures(1)  6,178  25,057
         
    Free Cash Flow $138,234 $274,543

    (1) Amount for the year ended September 30, 3024 of $6.2 million relates to the acquisition of assets from UGI. Amount for the year ended September 30, 2023 of $25.0 million relates to the acquisition of assets from EXCO and UGI. Both of these amounts are included in Capital Expenditures on the Consolidated Statement of Cash Flows for the respective periods.

    The Company is unable to provide a reconciliation of any projected free cash flow measure to its comparable GAAP financial measure without unreasonable efforts. This is due to an inability to calculate the comparable GAAP projected metrics, including operating income and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.


    Natalie M. Fischer
Investor Relations
716-857-7315

Timothy J. Silverstein
Chief Financial Officer
716-857-6987

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