WILLIAMSVILLE, N.Y., April 29, 2026 (GLOBE NEWSWIRE) -- National Fuel Gas Company ("National Fuel" or the "Company") $(NFG)$ today announced consolidated results for the second quarter of its 2026 fiscal year.
SECOND QUARTER FISCAL 2026 SUMMARY
-- GAAP earnings of $247.7 million, or earnings per share (EPS) of $2.59,
compared to GAAP earnings of $216.4 million, or $2.37 per share, in the
prior year.
-- Adjusted EPS of $2.71, an increase of 13% from the prior year. See
non-GAAP reconciliation on page 2.
-- Net cash provided by operating activities of $657 million, with free cash
flow of $160 million (as defined on page 22) through the second quarter
year-to-date, a $111 million increase from the prior year.
-- Integrated Upstream and Gathering segment adjusted EPS of $1.67, an
increase of 21% compared to the prior year, driven by a 17% increase in
natural gas price realizations.
-- Utility segment net income of $65 million, an increase of 3% compared to
the prior year, as continued investments in system modernization programs
in New York and Pennsylvania supported an increase in revenue.
-- Supply Corporation entered into a precedent agreement to provide 94,000
dekatherms per day of incremental capacity in connection with its new
Line N System Upgrade Project in southwest Pennsylvania, targeted for
completion in late 2028.
-- Commenced construction on both the Tioga Pathway and Shippingport Lateral
expansion projects, which remain on track for a late calendar year 2026
in-service date.
-- The Company is revising its fiscal 2026 adjusted EPS guidance range of
$7.45 to $7.75 per share, or $7.60 per share at the midpoint.
MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: "National Fuel had a solid second quarter, with adjusted EPS increasing 13% over the prior year. Operationally, our resilient natural gas system and dedicated workforce performed extremely well during the severe weather of Winter Storm Fern, delivering the safe and reliable production, transmission, storage, and distribution services that customers across our businesses expect.
"Looking forward, we've taken meaningful steps to position National Fuel for the next phase of our long-term growth strategy. In our regulated Pipeline and Storage business, our two major expansion projects are expected to be in-service late this calendar year, and we've signed an agreement for another expansion on our Line N system. At the Utility, our Ohio acquisition is on track to close in the calendar fourth quarter. Lastly, in our Integrated Upstream and Gathering business, we have decades of high-quality Appalachian inventory and a great track record of improving capital efficiency. With our ongoing testing to optimize well designs across our development footprint and our focus on continuously improving our integrated development plans, we expect to see further benefits in the future.
"With these positive catalysts across our operations, including line of sight to earnings growth at our regulated businesses and increasing free cash flow generation at our non-regulated businesses, National Fuel is well positioned to deliver long-term value to shareholders."
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED EARNINGS
Three Months Ended March 31,
-----------------------------------
(Thousands) (Per Share)
------------------- --------------
2026 2025 2026 2025
------- ----
Reported GAAP Earnings $247,668 $216,358 $ 2.59 $2.37
Items impacting
comparability:
Costs related to
the pending Ohio
gas utility
acquisition 2,499 -- 0.03 --
Tax impact of costs
related to the
pending Ohio
acquisition (579) -- (0.01) --
Impact of equity
issuance related
to pending Ohio
acquisition, net
of interest
benefits (3,422) -- 0.09 --
Tax impact of net
interest benefit
from equity
issuance 793 -- 0.01 --
Other/rounding
(refer to Segment
results for
details) 274 1,975 -- 0.02
------- ------- ----- ----
Adjusted Earnings $247,233 $218,333 $ 2.71 $2.39
======= ======= ===== ====
FISCAL 2026 GUIDANCE UPDATE
National Fuel is revising its adjusted EPS guidance for fiscal 2026, which is now expected to be within a range of $7.45 to $7.75, or $7.60 at the midpoint. This updated range incorporates second quarter results as well as modest changes to certain assumptions for the remainder of the fiscal year, primarily related to natural gas prices. The Company is now assuming the NYMEX natural gas price will average $3.00 per MMBtu for the remaining six months of fiscal 2026 (a decrease of $0.75 from previous guidance), which approximates the current NYMEX forward curve at this time.
Integrated Upstream and Gathering fiscal 2026 production is now expected to be 425 to 440 Bcf, a moderate decrease from our prior guidance. This decrease reflects the weather impacts during the period around Winter Storm Ferm, which primarily delayed flowback and completion timing. In addition, there were modest production impacts from a six-well pad in Tioga County where tests of a new Gen 4 Lower Utica well design and a new Upper Utica performed as expected, however, older generation Lower Utica wells underperformed projections. While these factors are expected to impact the fiscal year, they do not change the long-term production growth outlook, which we still expect will be in the mid-single digits over the next few years. This guidance range also does not incorporate any price-related curtailments over the remainder of the fiscal year. Capital expenditure guidance remains unchanged; however, higher oil and diesel prices related to the Iranian conflict and increased land activity represent potential headwinds that could result in capital trending toward the higher end of the range.
The acquisition of CenterPoint Energy's Ohio natural gas utility business is expected to close in the fourth quarter of calendar 2026, as previously planned. As a result, this is not expected to impact fiscal 2026 guidance, which also excludes any financing or acquisition-related costs.
The Company's other fiscal 2026 guidance assumptions remain largely unchanged and are detailed in the table on page 6.
DISCUSSION OF SECOND QUARTER RESULTS BY SEGMENT
The following earnings discussion of each operating segment for the quarter ended March 31, 2026 is summarized in a tabular form on pages 7 and 8 of this report (earnings drivers for the six months ended March 31, 2026 are summarized on pages 9 and 10).
Note that management defines adjusted earnings 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.
Integrated Upstream and Gathering Segment
The Integrated Upstream and Gathering segment's exploration and production operations are carried out by Seneca Resources Company, LLC ("Seneca") and its gathering operations are carried out by the operating subsidiaries of National Fuel Gas Midstream Company, LLC ("Gathering"). Seneca explores for, develops, and produces primarily natural gas reserves in Pennsylvania. Gathering constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which primarily delivers Seneca's production and, to a lesser extent, third-party Appalachian production to various interstate pipelines.
Three Months Ended
March 31,
-------------------------------
(in thousands) 2026 2025 Variance
------- ------- ----------
GAAP Earnings $152,030 $124,170 $27,860
Premiums paid on early redemption
of debt -- 2,385 (2,385)
Tax impact of premiums paid on
early redemption of debt -- (642) 642
Unrealized (gain) loss on
derivative asset (2022 CA asset
sale) -- 335 (335)
Tax impact of unrealized (gain)
loss on derivative asset -- (90) 90
------- ------- ------
Adjusted Earnings $152,030 $126,158 $25,872
Adjusted EBITDA $302,439 $267,098 $35,341
The Integrated Upstream and Gathering segment's second quarter GAAP earnings increased $27.9 million versus the prior year. Excluding items impacting comparability, adjusted earnings increased $25.9 million from the prior year, primarily due to higher realized natural gas prices, partially offset by modestly lower production volumes and additional third-party gathering expenses.
Seneca's weighted average realized natural gas price, after the impact of hedging and transportation costs, was $3.45 per Mcf, an increase of $0.51 per Mcf, or 17%, from the prior year due to higher NYMEX prices.
During the second quarter, Seneca produced 102.0 Bcf of natural gas, a decrease of 3.5 Bcf, or 3%, from the prior year. During the quarter, production was lower than the prior year due to weather-driven completion delays and typical natural gas production declines on producing wells.
Three Months Ended
March 31,
-----------------------------
(Cost per Mcf) 2026 2025 Variance
Upstream General and Administrative
Expense ("G&A") $0.18 $0.18 $ --
Lease Operating Expense ("LOE") $0.17 $0.12 $ 0.05
Adjusted Gathering Operation and
Maintenance Expense ("O&M") $0.14 $0.12 (1) $ 0.02
Taxes and Other $0.07 $0.07 $ --
---- ---- ------
Adjusted Total Cash Operating Costs $0.56 $0.49 (1) $ 0.07
Depreciation, Depletion and
Amortization Expense ("DD&A") $0.79 $0.72 $ 0.07
---- ---- ------
Adjusted Total Operating Costs $1.35 $1.21 (1) $ 0.14
(1) Adjusted Gathering O&M Expense of $0.12 per Mcf for
the quarter ended March 31, 2025 excludes a $0.03
per Mcf reduction to Gathering O&M Expense attributed
to a change in segment reporting, which is fully offset
in operating revenue.
On a per unit basis, second quarter adjusted total operating costs were $0.14 higher compared to the prior year, primarily due to higher per unit LOE and DD&A expense. The increase in per unit LOE compared to the prior year was largely driven by additional third-party gathering expenses due to new production brought online during the quarter, as well as modestly higher costs related to winter weather conditions. The increase in DD&A expense was largely driven by the impact of ceiling test impairments Seneca recorded in fiscal 2025 that artificially lowered the per unit DD&A rate in the prior year.
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) 2026 2025 Variance
------ ------ ------------
GAAP Earnings $31,606 $31,707 $ (101)
Adjusted EBITDA $71,963 $70,169 $ 1,794
The Pipeline and Storage segment's second quarter GAAP earnings were in line with the prior year as an increase in operating revenues was offset by higher expenses, the majority of which was higher DD&A as a result of a higher average depreciable plant in service compared to the prior year.
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
March 31,
----------------------------
(in thousands) 2026 2025 Variance
------ ------ ----------
GAAP Earnings $65,349 $63,544 $ 1,805
Adjusted EBITDA $99,763 $95,270 $ 4,493
The Utility segment's second quarter GAAP earnings increased $1.8 million, or 3%, primarily as a result of higher customer margin (operating revenue less purchased gas sold) of $9.1 million. The biggest contributors to increased customer margin were the implementation of year two of the Utility's three-year rate agreement in New York and revenue from the Utility's Distribution System Improvement Charge in Pennsylvania. Partially offsetting this was an increase in O&M expense driven by higher employee-related costs (which were largely the result of new collective bargaining agreements) and an increase in uncollectible expense, as well as higher DD&A expense due to a larger average depreciable plant in service compared to the prior year.
Corporate and All Other
The Company's operations that are included in Corporate and All Other generated a combined net loss of $1.3 million in the second quarter, largely due to transaction and financing costs related to the pending Ohio gas utility acquisition.
EARNINGS TELECONFERENCE
A conference call to discuss the results will be held on Thursday, April 30, 2026, at 9 a.m. ET. All participants must pre-register to join this conference using the Participant Registration link. A webcast link to the conference call is provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com, and a replay of the webcast will be available on the website following the call.
National Fuel is an integrated energy company reporting financial results for three operating segments: Integrated Upstream and Gathering, Pipeline and Storage, and Utility. Additional information about National Fuel is available at www.nationalfuel.com.
Analyst Contact: Natalie M. Fischer 716-857-7315 Media Contact: Karen L. Merkel 716-857-7654
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: 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; changes in economic conditions, including the imposition of additional tariffs on U.S. imports and related retaliatory tariffs, 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 Company's ability to complete strategic transactions, such as the pending transaction with CenterPoint Energy Resources Corp., including receipt of required regulatory clearances and satisfaction of other conditions to closing, and to recognize the anticipated benefits of such transactions; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; the Company's ability to estimate accurately the time and resources necessary to meet emissions targets; changes in the price of natural gas; impairments under the SEC's full cost ceiling test for natural gas reserves; 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, other investments, and acquisitions, including any downgrades in the Company's credit ratings and changes in interest rates and other capital market conditions; negotiations with the collective bargaining units representing the Company's workforce, including potential work stoppages during negotiations; 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, including the impact of issues that may arise from the use of artificial intelligence technologies; 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; 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; 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; 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 adjusted earnings per share guidance for fiscal 2026. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below. The acquisition of CenterPoint Energy's Ohio natural gas utility business still is expected to close in the fourth quarter of calendar 2026, as previously planned. As a result, this is not expected to impact fiscal 2026 guidance, which also excludes any financing or acquisition-related costs. Fiscal 2026 adjusted earnings per share guidance also excludes after-tax financing and acquisition related costs during the six months ended March 31, 2026, which reduced earnings by $0.18 per share, and expected financing and acquisition related costs during the six months ending September 30, 2026.
The revised adjusted earnings per share guidance range also excludes certain items that impacted the comparability of adjusted operating results during the six months ended March 31, 2026, including after-tax unrealized losses on other investments, which reduced earnings by $0.01 per share. While the Company expects to record certain adjustments to unrealized gain or loss on investments during the remaining six months ending September 30, 2026, 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 2026 Updated FY 2026
Guidance Guidance
Consolidated Adjusted
Earnings per Share $7.60 - $8.10 $7.45 - $7.75
Consolidated Effective
Tax Rate 25.5% 25.5%
Capital Expenditures
(Millions)
Integrated Upstream
and Gathering $560 - $610 $560 - $610
Pipeline and Storage $210 - $250 $210 - $250
Utility $185 - $205 $185 - $205
---------------------- -----------------------
Consolidated Capital
Expenditures $955 - $1,065 $955 - $1,065
Integrated Upstream &
Gathering Segment
Guidance
Commodity Price (price for remaining (price for remaining
Assumptions nine months) six months)
NYMEX natural gas
price (per MMBtu) $3.75 $3.00
Appalachian basin
spot price (per
MMBtu) $2.85 $2.20
Production (Bcf) 440 to 455 425 to 440
Integrated Operating
Costs ($/Mcf)
Upstream General and
Administrative
Expense $0.18 $0.18
Lease Operating
Expense $0.17 - $0.18 $0.16 - $0.17
Gathering Operation
and Maintenance
Expense $0.11 $0.12
Depreciation,
Depletion and
Amortization $0.76 - $0.81 $0.76 - $0.81
Pipeline and Storage
Segment Revenues
(Millions) $415 - $430 $420 - $435
Utility Segment
Guidance (Millions)
Customer Margin(1) $470 - $490 $470 - $490
O&M Expense $250 -- $260 $250 -- $260
Non-Service Pension
& OPEB Income $23 - $27 $23 - $27
(1) Customer Margin is defined as Operating Revenues less Purchased Gas Expense.
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED MARCH 31, 2026
(Unaudited)
Integrated
Pipeline
Upstream & Corporate /
(Thousands of
Dollars) & Gathering Storage Utility All Other Consolidated(1)
Second quarter
2025 GAAP
earnings $ 124,170 $31,707 $63,544 $ (3,063) $ 216,358
Items impacting
comparability:
Premiums paid
on early
redemption of
debt 2,385 2,385
Tax impact of
premiums paid
on early
redemption of
debt (642) (642)
Unrealized
(gain) loss on
derivative
asset 335 335
Tax impact of
unrealized
(gain) loss on
derivative
asset (90) (90)
Unrealized
(gain) loss on
other
investments (17) (17)
Tax impact of
unrealized
(gain) loss on
other
investments 4 4
Second quarter
2025 adjusted
earnings 126,158 31,707 63,544 (3,076) 218,333
Drivers of
adjusted
earnings(2)
Integrated
Upstream and
Gathering
Revenues
Higher (lower)
natural gas
production (8,162) (8,162)
Higher (lower)
realized
natural gas
prices, after
hedging 40,515 40,515
Higher (lower)
other
operating
revenues 2,560 2,560
Pipeline and
Storage
Revenues
Higher (lower)
operating
revenues 1,493 1,493
Utility
Margins(3)
Impact of usage
and weather (1,172) (1,172)
Impact of new
rates in New
York 3,128 3,128
Regulatory
revenue
adjustments 3,562 3,562
Higher (lower)
other
operating
revenues 891 891
Operating
Expenses
Lower (higher)
lease
operating
expenses (3,846) (3,846)
Lower (higher)
operating
expenses (3,210) (419) (2,911) (1,014) (7,554)
Lower (higher)
depreciation /
depletion (4,023) (1,117) (1,158) (6,298)
Other Income
(Expense)
Higher (lower)
other income (525) 1,599 1,074
(Higher) lower
interest
expense 4,209 564 4,773
Income Taxes
Lower (higher)
income tax
expense /
effective tax
rate (2,023) 187 (665) 168 (2,333)
All other /
rounding (148) 280 130 7 269
Second quarter
2026 adjusted
earnings 152,030 31,606 65,349 (1,752) 247,233
Items impacting
comparability:
Costs related
to the pending
Ohio gas
utility
acquisition (2,499) (2,499)
Tax impact of
costs related
to the pending
Ohio gas
utility
acquisition 579 579
Net interest
benefit from
equity
issuance 3,422 3,422
Tax impact of
net interest
benefit from
equity
issuance (793) (793)
Unrealized gain
(loss) on
other
investments (347) (347)
Tax impact of
unrealized
gain (loss) on
other
investments 73 73
Second quarter
2026 GAAP
earnings $ 152,030 $31,606 $65,349 $ (1,317) $ 247,668
======= ====== ====== ====== === ==========
(1) Amounts do not reflect intercompany eliminations.
(2) Drivers of adjusted earnings have been calculated
using the 21% federal statutory rate.
(3) Downstream margin defined as operating revenues
less purchased gas expense.
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
PER SHARE
QUARTER ENDED MARCH 31, 2026
(Unaudited)
Integrated
Upstream Pipeline & Corporate /
& Gathering Storage Utility All Other Consolidated(1)
Second quarter
2025 GAAP
earnings per
share $ 1.36 $ 0.35 $ 0.70 $ (0.04) $ 2.37
Items impacting
comparability:
Premiums paid on
early redemption
of debt, net of
tax 0.02 0.02
Unrealized (gain)
loss on
derivative asset,
net of tax -- --
Unrealized (gain)
loss on other
investments, net
of tax -- --
Second quarter
2025 adjusted
earnings per
share 1.38 0.35 0.70 (0.04) 2.39
Drivers of
adjusted
earnings(2)(4)
Integrated
Upstream and
Gathering
Revenues
Higher (lower)
natural gas
production (0.09) (0.09)
Higher (lower)
realized natural
gas prices,
after hedging 0.44 0.44
Higher (lower)
other operating
revenues 0.03 0.03
Pipeline and
Storage Revenues
Higher (lower)
operating
revenues 0.02 0.02
Utility
Margins(3)
Impact of usage
and weather (0.01) (0.01)
Impact of new
rates in New
York 0.03 0.03
Regulatory
revenue
adjustments 0.04 0.04
Higher (lower)
other operating
revenues 0.01 0.01
Operating
Expenses
Lower (higher)
lease operating
expenses (0.04) (0.04)
Lower (higher)
operating
expenses (0.04) -- (0.03) (0.01) (0.08)
Lower (higher)
depreciation /
depletion (0.04) (0.01) (0.01) (0.06)
Other Income
(Expense)
Higher (lower)
other income (0.01) 0.02 0.01
(Higher) lower
interest
expense 0.05 0.01 0.06
Income Taxes
Lower (higher)
income tax
expense /
effective tax
rate (0.02) -- (0.01) -- (0.03)
All other /
rounding -- -- (0.01) -- (0.01)
Second quarter
2026 adjusted
earnings per
share(4) 1.67 0.35 0.71 (0.02) 2.71
Items impacting
comparability(4)
:
Costs related to
the pending Ohio
gas utility
acquisition, net
of tax (0.02) (0.02)
Impact of equity
issuance related
to pending
acquisition, net
of interest
benefits (0.08) (0.02) (0.03) 0.03 (0.10)
Unrealized gain
(loss) on other
investments, net
of tax -- --
Second quarter
2026 GAAP
earnings per
share $ 1.59 $ 0.33 $ 0.68 $ (0.01) $ 2.59
=== ====== ===== ===== ====== ==== ======= ====
(1) Amounts do not reflect intercompany eliminations.
(2) Drivers of adjusted earnings have been calculated
using the 21% federal statutory rate.
(3) Downstream margin defined as operating revenues
less purchased gas expense.
(4) As a result of the equity issuance, drivers of
adjusted earnings, second quarter 2026 adjusted earnings
per share, and items impacting comparability for the
second quarter 2026 have been calculated using adjusted
diluted shares of 91,289,437.
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
SIX MONTHS ENDED MARCH 31, 2026
(Unaudited)
Integrated
Pipeline
Upstream & Corporate /
(Thousands of
Dollars) & Gathering Storage Utility All Other Consolidated(1)
Six months ended
March 31, 2025
GAAP earnings $ 104,538 $64,162 $96,043 $ (3,399) $ 261,344
Items impacting
comparability:
Impairment of
assets 141,802 141,802
Tax impact of
impairment of
assets (37,169) (37,169)
Premiums paid on
early
redemption of
debt 2,385 2,385
Tax impact of
premiums paid
on early
redemption of
debt (642) (642)
Unrealized
(gain) loss on
derivative
asset 684 684
Tax impact of
unrealized
(gain) loss on
derivative
asset (184) (184)
Unrealized
(gain) loss on
other
investments 2,600 2,600
Tax impact of
unrealized
(gain) loss on
other
investments (546) (546)
Six months ended
March 31, 2025
adjusted
earnings 211,414 64,162 96,043 (1,345) 370,274
Drivers of
adjusted
earnings(2)
Integrated
Upstream and
Gathering
Revenues
Higher (lower)
natural gas
production 17,244 17,244
Higher (lower)
realized
natural gas
prices, after
hedging 69,357 69,357
Higher (lower)
gathering
revenues (1,020) (1,020)
Higher (lower)
other operating
revenues 5,050 5,050
Pipeline and
Storage
Revenues
Higher (lower)
operating
revenues 1,721 1,721
Utility
Margins(3)
Impact of usage
and weather 1,646 1,646
Impact of new
rates in New
York 6,077 6,077
Regulatory
revenue
adjustments 4,552 4,552
Higher (lower)
other operating
revenues 1,285 1,285
Operating
Expenses
Lower (higher)
lease operating
expenses (8,723) (8,723)
Lower (higher)
operating
expenses (5,772) (599) (6,653) (1,953) (14,977)
Lower (higher)
property,
franchise and
other taxes (787) (787)
Lower (higher)
depreciation /
depletion (12,273) (1,525) (2,464) (16,262)
Other Income
(Expense)
Higher (lower)
other income (688) (1,715) 1,163 (1,240)
(Higher) lower
interest
expense 6,798 (870) (1,313) 4,615
Income Taxes
Lower (higher)
income tax
expense /
effective tax
rate (4,382) 575 (579) (29) (4,415)
All other /
rounding (141) 206 402 50 517
Six months ended
March 31, 2026
adjusted
earnings 276,077 62,825 99,439 (3,427) 434,914
Items impacting
comparability:
Costs related to
the pending
Ohio gas
utility
acquisition (10,186) (10,186)
Tax impact of
costs related
to the pending
Ohio gas
utility
acquisition 2,361 2,361
Net interest
benefit from
equity
issuance 3,931 3,931
Tax impact of
net interest
benefit from
equity
issuance (911) (911)
Unrealized gain
(loss) on other
investments (1,008) (1,008)
Tax impact of
unrealized gain
(loss) on other
investments 212 212
Six months ended
March 31, 2026
GAAP earnings $ 276,077 $62,825 $99,439 $ (9,028) $ 429,313
======= ====== ====== ======= === ======== ====
(1) Amounts do not reflect intercompany eliminations.
(2) Drivers of adjusted earnings have been calculated
using the 21% federal statutory rate.
(3) Downstream margin defined as operating revenues
less purchased gas expense.
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
PER SHARE
SIX MONTHS ENDED MARCH 31, 2026
(Unaudited)
Integrated
Upstream Pipeline & Corporate /
& Gathering Storage Utility All Other Consolidated(1)
Six months ended
March 31, 2025
GAAP earnings
per share $ 1.15 $ 0.70 $ 1.05 $ (0.04) $ 2.86
Items impacting
comparability:
Impairment of
assets, net of
tax 1.14 1.14
Premiums paid on
early redemption
of debt, net of
tax 0.02 0.02
Unrealized (gain)
loss on
derivative
asset, net of
tax 0.01 0.01
Unrealized (gain)
loss on other
investments, net
of tax 0.02 0.02
Rounding 0.01 0.01
Six months ended
March 31, 2025
adjusted
earnings per
share 2.32 0.70 1.05 (0.01) 4.06
Drivers of
adjusted
earnings(2)(4)
Integrated
Upstream and
Gathering
Revenues
Higher (lower)
natural gas
production 0.19 0.19
Higher (lower)
realized natural
gas prices,
after hedging 0.76 0.76
Higher (lower)
gathering
revenues (0.01) (0.01)
Higher (lower)
other operating
revenues 0.06 0.06
Pipeline and
Storage Revenues
Higher (lower)
operating
revenues 0.02 0.02
Utility
Margins(3)
Impact of usage
and weather 0.02 0.02
Impact of new
rates in New
York 0.07 0.07
Regulatory
revenue
adjustments 0.05 0.05
Higher (lower)
other operating
revenues 0.01 0.01
Operating
Expenses
Lower (higher)
lease operating
expenses (0.10) (0.10)
Lower (higher)
operating
expenses (0.06) (0.01) (0.07) (0.02) (0.16)
Lower (higher)
property,
franchise and
other taxes (0.01) (0.01)
Lower (higher)
depreciation /
depletion (0.13) (0.02) (0.03) (0.18)
Other Income
(Expense)
Higher (lower)
other income (0.01) (0.02) 0.01 (0.02)
(Higher) lower
interest
expense 0.07 (0.01) (0.01) 0.05
Income Taxes
Lower (higher)
income tax
expense /
effective tax
rate (0.05) 0.01 (0.01) -- (0.05)
All other /
rounding (0.01) 0.01 0.01 -- 0.01
Six months ended
March 31, 2026
adjusted
earnings per
share(4) 3.02 0.69 1.09 (0.03) 4.77
Items impacting
comparability(4)
:
Costs related to
the pending Ohio
gas utility
acquisition, net
of tax (0.09) (0.09)
Impact of equity
issuance related
to pending
acquisition, net
of interest
benefits (0.08) (0.02) (0.03) 0.04 (0.09)
Unrealized gain
(loss) on other
investments, net
of tax (0.01) (0.01)
Six months ended
March 31, 2026
GAAP earnings
per share $ 2.94 $ 0.67 $ 1.06 $ (0.09) $ 4.58
=== ====== ===== ===== ====== ==== ======= ====
(1) Amounts do not reflect intercompany eliminations.
(2) Drivers of adjusted earnings have been calculated
using the 21% federal statutory rate.
(3) Downstream margin defined as operating revenues
less purchased gas expense.
(4) As a result of the equity issuance, drivers of
adjusted earnings, six months ended March 31, 2026
adjusted earnings per share, and items impacting comparability
for the six months ended March 31, 2026 have been
calculated using adjusted diluted shares of 91,265,508.
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 2026 2025 2026 2025
----------------- ---------- ----------
Operating
Revenues:
Utility
Revenues $ 425,788 $ 343,574 $ 684,837 $ 571,998
Integrated
Upstream and
Gathering
Revenues 358,823 315,191 682,045 567,499
Pipeline and
Storage
Revenues 73,762 71,185 142,999 139,935
---------- ---------- ---------- ----------
858,373 729,950 1,509,881 1,279,432
Operating
Expenses:
Purchased Gas 207,851 135,338 293,457 200,675
Operation and
Maintenance:
Utility 67,060 63,447 126,957 118,691
Integrated
Upstream
and
Gathering
and Other 61,064 47,269 117,370 90,174
Pipeline
and
Storage 30,660 30,153 57,446 56,730
Property,
Franchise and
Other Taxes 25,274 25,214 50,037 47,270
Depreciation,
Depletion and
Amortization 119,329 111,277 241,354 220,647
Impairment of
Assets -- -- -- 141,802
---------- ---------- ---------- ----------
511,238 412,698 886,621 875,989
Operating Income 347,135 317,252 623,260 403,443
Other Income
(Expense):
Other Income 17,002 15,232 25,235 22,952
Interest
Expense on
Long-Term
Debt (30,083) (39,662) (63,596) (73,024)
Other Interest
Expense (3,651) (5,095) (13,514) (9,476)
---------- ---------- ---------- ----------
Income Before
Income Taxes 330,403 287,727 571,385 343,895
Income Tax
Expense 82,735 71,369 142,072 82,551
---------- ---------- ---------- ----------
Net Income
Available for
Common Stock $ 247,668 $ 216,358 $ 429,313 $ 261,344
========== ========== ========== ==========
Earnings Per
Common Share
Basic $ 2.61 $ 2.39 $ 4.61 $ 2.88
========== ========== ========== ==========
Diluted $ 2.59 $ 2.37 $ 4.58 $ 2.86
========== ========== ========== ==========
Weighted Average
Common Shares:
Used in Basic
Calculation 95,026,278 90,500,162 93,077,818 90,640,333
========== ========== ========== ==========
Used in Diluted
Calculation 95,691,950 91,176,327 93,805,419 91,312,334
========== ========== ========== ==========
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, September 30,
(Thousands of Dollars) 2026 2025
ASSETS
Property, Plant and Equipment $15,832,704 $ 15,406,329
Less - Accumulated Depreciation, Depletion
and Amortization 7,902,521 7,693,687
------------------------------------------ ---------- ----------
Net Property, Plant and Equipment 7,930,183 7,712,642
Current Assets:
Cash and Temporary Cash Investments 26,596 43,166
Receivables - Net 292,548 180,801
Unbilled Revenue 52,963 16,219
Gas Stored Underground 4,768 33,468
Materials and Supplies - at average cost 53,773 50,545
Unrecovered Purchased Gas Costs 13,005 5,769
Other Current Assets 63,943 80,759
Total Current Assets 507,596 410,727
------------------------------------------ ---------- ----------
Other Assets:
Recoverable Future Taxes 96,226 89,247
Unamortized Debt Expense 5,307 6,236
Other Regulatory Assets 127,061 135,486
Deferred Charges 81,332 73,941
Other Investments 65,870 68,346
Goodwill 5,476 5,476
Prepaid Pension and Post-Retirement
Benefit Costs 182,682 169,228
Fair Value of Derivative Financial
Instruments 116,014 39,388
Other 9,857 8,387
------------------------------------------ ---------- ----------
Total Other Assets 689,825 595,735
------------------------------------------ ---------- ----------
Total Assets $ 9,127,604 $ 8,719,104
------------------------------------------ ---------- ----------
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized -
200,000,000 Shares; Issued and
Outstanding - 95,027,447 Shares and
90,379,095 Shares, Respectively $ 95,027 $ 90,379
Paid in Capital 1,388,193 1,050,918
Earnings Reinvested in the Business 2,340,168 2,012,529
Accumulated Other Comprehensive Income
(Loss) 1,111 (59,222)
------------------------------------------ ---------- ----------
Total Comprehensive Shareholders' Equity 3,824,499 3,094,604
Long-Term Debt, Net of Current Portion and
Unamortized Discount and Debt Issuance
Costs 2,084,882 2,382,861
------------------------------------------ ---------- ----------
Total Capitalization 5,909,381 5,477,465
------------------------------------------ ---------- ----------
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial
Paper 41,300 150,200
Current Portion of Long-Term Debt 300,000 300,000
Accounts Payable 143,180 184,046
Amounts Payable to Customers 288 968
Dividends Payable 50,840 48,353
Interest Payable on Long-Term Debt 13,738 14,393
Customer Advances -- 17,188
Customer Security Deposits 27,805 29,853
Other Accruals and Current Liabilities 242,760 174,689
Fair Value of Derivative Financial
Instruments 236 6,074
------------------------------------------ ---------- ----------
Total Current and Accrued
Liabilities 820,147 925,764
------------------------------------------ ---------- ----------
Other Liabilities:
Deferred Income Taxes 1,325,733 1,225,262
Taxes Refundable to Customers 303,199 306,335
Cost of Removal Regulatory Liability 314,865 307,659
Other Regulatory Liabilities 116,509 121,944
Pension and Other Post-Retirement
Liabilities 3,741 5,252
Asset Retirement Obligations 228,105 236,787
Other Liabilities 105,924 112,636
------------------------------------------ ---------- ----------
Total Other Liabilities 2,398,076 2,315,875
------------------------------------------ ---------- ----------
Commitments and Contingencies -- --
------------------------------------------ ---------- ----------
Total Capitalization and Liabilities $ 9,127,604 $ 8,719,104
------------------------------------------ ---------- ----------
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
March 31,
(Thousands of Dollars) 2026 2025
Operating Activities:
Net Income Available for Common Stock $ 429,313 $ 261,344
Adjustments to Reconcile Net Income to
Net Cash
Provided by Operating Activities:
Impairment of Assets -- 141,802
Depreciation, Depletion and
Amortization 241,354 220,647
Deferred Income Taxes 68,296 25,787
Premium Paid on Early Redemption of
Debt -- 2,385
Stock-Based Compensation 9,941 10,487
Other 14,319 14,317
Change in:
Receivables and Unbilled Revenue (146,459) (197,553)
Gas Stored Underground and Materials
and Supplies 25,472 27,861
Unrecovered Purchased Gas Costs (7,236) (3,562)
Other Current Assets 16,726 13,737
Accounts Payable 13,469 17,322
Amounts Payable to Customers (680) (8,327)
Customer Advances (17,188) (19,373)
Customer Security Deposits (2,048) (5,907)
Other Accruals and Current
Liabilities 56,167 21,528
Other Assets (18,864) (20,282)
Other Liabilities (25,303) (28,343)
------------------------------------------ -------- --------
Net Cash Provided by Operating
Activities $ 657,279 $ 473,870
------------------------------------------ -------- --------
Investing Activities:
Capital Expenditures $(498,267) $(434,260)
Other 523 8,881
------------------------------------------ -------- --------
Net Cash Used in Investing
Activities $(497,744) $(425,379)
------------------------------------------ -------- --------
Financing Activities:
Changes in Notes Payable to Banks and
Commercial Paper $(108,900) $ 117,700
Shares Repurchased Under Repurchase Plan -- (50,471)
Reduction of Long-Term Debt (300,000) (954,086)
Net Proceeds From Issuance of Long-Term
Debt -- 989,019
Dividends Paid on Common Stock (99,187) (93,543)
Net Proceeds from Common Stock Sale 338,403 --
Net Repurchases of Common Stock Under
Stock and Benefit Plans (6,421) (4,026)
------------------------------------------ -------- --------
Net Cash Provided by (Used in)
Financing Activities $(176,105) $ 4,593
------------------------------------------ -------- --------
Net Increase (Decrease) in Cash, Cash
Equivalents, and Restricted Cash (16,570) 53,084
Cash, Cash Equivalents, and Restricted
Cash at Beginning of Period 43,166 38,222
------------------------------------------ -------- --------
Cash, Cash Equivalents, and Restricted
Cash at March 31 $ 26,596 $ 91,306
------------------------------------------ -------- --------
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
INTEGRATED UPSTREAM AND GATHERING SEGMENT
Three Months Ended Six Months Ended
(Thousands of
Dollars, except per
share amounts) March 31, March 31,
------------------------------ ----------------------------------
2026 2025 Variance 2026 2025 Variance
------- ------- -------- ------- ------- ------------
Total Operating
Revenues $358,823 $315,191 $43,632 $682,045 $567,499 $ 114,546
------- ------- ------ ------- ------- --------
Operating Expenses:
Operation and
Maintenance:
Upstream
General and
Administrative
Expense 18,472 18,847 (375) 37,878 38,173 (295)
Lease Operating
Expense 17,362 12,494 4,868 34,187 23,145 11,042
Gathering
Operation and
Maintenance
Expense 13,805 9,160 4,645 24,193 15,894 8,299
All Other
Operation and
Maintenance
Expense 3,102 3,310 (208) 6,481 7,178 (697)
Property,
Franchise and
Other Taxes 3,643 4,282 (639) 8,426 7,430 996
Depreciation,
Depletion and
Amortization 80,548 75,456 5,092 164,810 149,274 15,536
Impairment of
Assets -- -- -- -- 141,802 (141,802)
------- ------- ------ ------- ------- --------
136,932 123,549 13,383 275,975 382,896 (106,921)
Operating Income 221,891 191,642 30,249 406,070 184,603 221,467
Other Income
(Expense):
Non-Service
Pension and
Post-Retirement
Benefit Credit
(Cost) (81) 37 (118) (162) 73 (235)
Interest and
Other Income 380 194 186 573 525 48
Interest Expense
on Long-Term
Debt -- (3,283) 3,283 -- (3,283) 3,283
Interest Expense (15,111) (19,541) 4,430 (31,245) (38,952) 7,707
------- ------- ------ ------- ------- --------
Income Before
Income Taxes 207,079 169,049 38,030 375,236 142,966 232,270
Income Tax Expense 55,049 44,879 10,170 99,159 38,428 60,731
------- ------- ------ ------- ------- --------
Net Income $152,030 $124,170 $27,860 $276,077 $104,538 $ 171,539
======= ======= ====== ======= ======= ========
Net Income Per
Share (Diluted) $ 1.59 $ 1.36 $ 0.23 $ 2.94 $ 1.15 $ 1.79
======= ======= ====== ======= ======= ========
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
PIPELINE AND STORAGE SEGMENT
Three Months Ended Six Months Ended
(Thousands of
Dollars, except per
share amounts) March 31, March 31,
--------------------------------
2026 2025 Variance 2026 2025 Variance
------- ------- ---------- ------- ------- ----------
Revenues from
External
Customers $ 73,762 $ 71,185 $ 2,577 $142,999 $139,935 $ 3,064
Intersegment
Revenues 37,701 38,388 (687) 75,365 76,251 (886)
------- ------- ----- ------- ------- ------
Total Operating
Revenues 111,463 109,573 1,890 218,364 216,186 2,178
------- ------- ----- ------- ------- ------
Operating Expenses:
Purchased Gas (7) 162 (169) (7) 121 (128)
Operation and
Maintenance 31,172 30,642 530 58,435 57,677 758
Property,
Franchise and
Other Taxes 8,335 8,600 (265) 16,981 17,266 (285)
Depreciation,
Depletion and
Amortization 19,961 18,547 1,414 39,063 37,132 1,931
59,461 57,951 1,510 114,472 112,196 2,276
------- ------- ----- ------- ------- ------
Operating Income 52,002 51,622 380 103,892 103,990 (98)
Other Income
(Expense):
Non-Service
Pension and
Post-Retirement
Benefit Credit 536 952 (416) 1,073 1,905 (832)
Interest and
Other Income 1,405 1,794 (389) 2,365 3,833 (1,468)
Interest Expense (11,779) (11,700) (79) (23,580) (23,428) (152)
------- ------- ----- ------- ------- ------
Income Before
Income Taxes 42,164 42,668 (504) 83,750 86,300 (2,550)
Income Tax Expense 10,558 10,961 (403) 20,925 22,138 (1,213)
------- ------- ----- ------- ------- ------
Net Income $ 31,606 $ 31,707 $ (101) $ 62,825 $ 64,162 $(1,337)
======= ======= ===== ======= ======= ======
Net Income Per
Share (Diluted) $ 0.33 $ 0.35 $ (0.02) $ 0.67 $ 0.70 $ (0.03)
======= ======= ===== ======= ======= ======
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
UTILITY SEGMENT
Three Months Ended Six Months Ended
(Thousands of
Dollars, except per
share amounts) March 31, March 31,
------------------------------
2026 2025 Variance 2026 2025 Variance
------- ------- -------- ------- ------- -----------
Revenues from
External
Customers $425,788 $343,574 $82,214 $684,837 $571,998 $112,839
Intersegment
Revenues 126 119 7 215 203 12
------- ------- ------ ------- ------- -------
Total Operating
Revenues 425,914 343,693 82,221 685,052 572,201 112,851
------- ------- ------ ------- ------- -------
Operating Expenses:
Purchased Gas 244,860 171,777 73,083 367,145 273,249 93,896
Operation and
Maintenance 68,129 64,444 3,685 129,126 120,704 8,422
Property,
Franchise and
Other Taxes 13,162 12,202 960 24,365 22,313 2,052
Depreciation,
Depletion and
Amortization 18,601 17,135 1,466 37,081 33,962 3,119
------- ------- ------ ------- ------- -------
344,752 265,558 79,194 557,717 450,228 107,489
------- ------- ------ ------- ------- -------
Operating Income 81,162 78,135 3,027 127,335 121,973 5,362
Other Income
(Expense):
Non-Service
Pension and
Post-Retirement
Benefit Credit 12,059 12,299 (240) 17,813 18,170 (357)
Interest and
Other Income 1,265 714 551 2,370 1,242 1,128
Interest Expense (11,138) (10,927) (211) (22,744) (21,643) (1,101)
------- ------- ------ ------- ------- -------
Income Before
Income Taxes 83,348 80,221 3,127 124,774 119,742 5,032
Income Tax Expense 17,999 16,677 1,322 25,335 23,699 1,636
------- ------- ------ ------- ------- -------
Net Income $ 65,349 $ 63,544 $ 1,805 $ 99,439 $ 96,043 $ 3,396
======= ======= ====== ======= ======= =======
Net Income Per
Share (Diluted) $ 0.68 $ 0.70 $ (0.02) $ 1.06 $ 1.05 $ 0.01
======= ======= ====== ======= ======= =======
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 2026 2025 Variance 2026 2025 Variance
-------------------
Total Operating
Revenues $ -- $ -- $ -- $ -- $ -- $ --
------- ------- ------ ------- ------- ------
Operating Expenses:
Operation and
Maintenance -- -- -- -- -- --
-- -- -- -- -- --
Operating Loss -- -- -- -- -- --
Other Income
(Expense):
Interest and
Other Income
(Deductions) 1,248 (222) 1,470 1,225 (358) 1,583
Interest Expense (118) (131) 13 (254) (248) (6)
------- ------- ------ ------- ------- ------
Income (Loss)
before Income
Taxes 1,130 (353) 1,483 971 (606) 1,577
Income Tax Expense
(Benefit) 262 (82) 344 225 (141) 366
------- ------- ------ ------- ------- ------
Net Income (Loss) $ 868 $ (271) $ 1,139 $ 746 $ (465) $ 1,211
Net Income (Loss)
Per Share
(Diluted) $ 0.01 $ -- $ 0.01 $ 0.01 $ (0.01) $ 0.02
======= ======= ====== ======= ======= ======
Three Months Ended Six Months Ended
March 31, March 31,
--------------------------------
CORPORATE 2026 2025 Variance 2026 2025 Variance
------------------- ------- ------- -------- ------- ------- ----------
Revenues from
External Customers $ -- $ -- $ -- $ -- $ -- $ --
Intersegment
Revenues 1,435 1,341 94 2,872 2,683 189
------- ------- ------ ------- ------- ------
Total Operating
Revenues 1,435 1,341 94 2,872 2,683 189
------- ------- ------ ------- ------- ------
Operating Expenses:
Operation and
Maintenance 9,002 5,219 3,783 16,244 9,266 6,978
Property,
Franchise and
Other Taxes 134 130 4 265 261 4
Depreciation,
Depletion and
Amortization 219 139 80 400 279 121
------- ------- ------ ------- ------- ------
9,355 5,488 3,867 16,909 9,806 7,103
------- ------- ------ ------- ------- ------
Operating Loss (7,920) (4,147) (3,773) (14,037) (7,123) (6,914)
Other Income
(Expense):
Non-Service
Pension and
Post-Retirement
Benefit Costs (217) (212) (5) (435) (423) (12)
Interest and
Other Income 37,810 41,785 (3,975) 77,164 82,846 (5,682)
Interest Expense
on Long-Term
Debt (30,083) (36,379) 6,296 (63,596) (69,741) 6,145
Other Interest
Expense (2,908) (4,905) 1,997 (12,442) (10,066) (2,376)
------- ------- ------ ------- ------- ------
Loss before Income
Taxes (3,318) (3,858) 540 (13,346) (4,507) (8,839)
Income Tax Benefit (1,133) (1,066) (67) (3,572) (1,573) (1,999)
------- ------- ------ ------- ------- ------
Net Loss $ (2,185) $ (2,792) $ 607 $ (9,774) $ (2,934) $(6,840)
Net Loss Per Share
(Diluted) $ (0.02) $ (0.04) $ 0.02 $ (0.10) $ (0.03) $ (0.07)
======= ======= ====== ======= ======= ======
Three Months Ended Six Months Ended
March 31, March 31,
--------------------------------
INTERSEGMENT
ELIMINATIONS 2026 2025 Variance 2026 2025 Variance
------------------- ------- ------- -------- ------- ------- ----------
Intersegment
Revenues $(39,262) $(39,848) $ 586 $(78,452) $(79,137) $ 685
------- ------- ------ ------- ------- ------
Operating Expenses:
Purchased Gas (37,002) (36,601) (401) (73,681) (72,695) (986)
Operation and
Maintenance (2,260) (3,247) 987 (4,771) (6,442) 1,671
------- ------- ------ ------- ------- ------
(39,262) (39,848) 586 (78,452) (79,137) 685
------- ------- ------ ------- ------- ------
Operating Income -- -- -- -- -- --
Other Income
(Expense):
Interest and
Other
Deductions (37,403) (42,109) 4,706 (76,751) (84,861) 8,110
Interest Expense 37,403 42,109 (4,706) 76,751 84,861 (8,110)
------- ------- ------ ------- ------- ------
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
2026 2025 (Decrease) 2026 2025 (Decrease)
------- ------- ------------ ------- ------- --------------
Capital
Expenditures:
----------------
Integrated
Upstream and
Gathering(1) $165,727 (1) $123,363 (3) $ 42,364 $307,576 (1)(2) $258,992 (3)(4) $ 48,584
Pipeline and
Storage 37,026 (1) 15,626 (3) 21,400 74,628 (1)(2) 35,417 (3)(4) 39,211
Utility 30,500 (1) 41,867 (3) (11,367) 73,594 (1)(2) 78,298 (3)(4) (4,704)
------- ------- ------- ------- ------- -------
Total Reportable
Segments 233,253 180,856 52,397 455,798 372,707 83,091
All Other -- -- -- -- -- --
Corporate 249 174 75 425 378 47
Eliminations (546) -- (546) (546) -- (546)
------- ------- ------- ------- ------- -------
Total Capital
Expenditures $232,956 $181,030 $ 51,926 $455,677 $373,085 $ 82,592
======= ======= ======= ======= ======= =======
(1) Capital expenditures for the quarter and six months
ended March 31, 2026, include accounts payable and
accrued liabilities related to capital expenditures
of $71.6 million, $5.1 million and $6.0 million in
the Integrated Upstream and Gathering segment, Pipeline
and Storage segment and Utility segment, respectively.
These amounts have been excluded from the Consolidated
Statement of Cash Flows at March 31, 2026, since they
represent non-cash investing activities at that date.
(2) Capital expenditures for the six months ended March
31, 2026, exclude capital expenditures of $87.9 million,
$19.4 million and $18.0 million in the Integrated
Upstream and Gathering segment, Pipeline and Storage
segment and Utility segment, respectively. These amounts
were in accounts payable and accrued liabilities at
September 30, 2025 and paid during the six months
ended March 31, 2026. These amounts were excluded
from the Consolidated Statement of Cash Flows at September
30, 2025, 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, 2026.
(3) Capital expenditures for the quarter and six months
ended March 31, 2025, include accounts payable and
accrued liabilities related to capital expenditures
of $51.6 million, $2.4 million and $4.8 million in
the Integrated Upstream and Gathering segment, Pipeline
and Storage segment and Utility segment, respectively.
These amounts were excluded from the Consolidated
Statement of Cash Flows at March 31, 2025, since they
represented non-cash investing activities at that
date.
(4) Capital expenditures for the six months ended March
31, 2025, exclude capital expenditures of $85.0 million,
$14.4 million and $20.6 million in the Integrated
Upstream and Gathering segment, Pipeline and Storage
segment and Utility segment, respectively. These amounts
were in accounts payable and accrued liabilities at
September 30, 2024 and paid during the six months
ended March 31, 2025. These amounts were excluded
from the Consolidated Statement of Cash Flows at September
30, 2024, 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, 2025.
DEGREE DAYS
-----------------------
Percent Colder
(Warmer) Than:
Three Months Ended
March 31, Normal 2026 2025 Normal(1) Last Year(1)
----------------------- ------ ----- ----- --------- ------------
Buffalo, NY 3,226 3,282 3,116 1.7 5.3
Erie, PA 3,023 3,079 3,017 1.9 2.1
Six Months Ended March
31,
-----------------------
Buffalo, NY 5,352 5,563 5,000 3.9 11.3
Erie, PA 4,917 5,200 4,714 5.8 10.3
(1) Percents compare actual 2026 degree days to normal
degree days and actual 2026 degree days to actual
2025 degree days.
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
INTEGRATED UPSTREAM AND GATHERING INFORMATION
------------------------------------------------------------------------------------------
Three Months Ended Six Months Ended
March 31, March 31,
-------------------------------- ----------------------------------
Increase Increase
2026 2025 (Decrease) 2026 2025 (Decrease)
------- ------- ------------ ------- ------- --------------
Gas
Production/Prices:
-------------------
Production (MMcf)
Appalachia 102,004 105,514 (3,510) 211,185 203,232 7,953
Average Prices (Per
Mcf)
Weighted Average $ 3.92 $ 3.02 $ 0.90 $ 3.33 $ 2.64 $ 0.69
Weighted Average
after Hedging 3.45 2.94 0.51 3.16 2.74 0.42
Selected Operating
Performance
Statistics:
-------------------
Upstream General and
Administrative
Expense per Mcf(1) $ 0.18 $ 0.18 $ -- $ 0.18 $ 0.19 $ (0.01)
Lease Operating
Expense per Mcf(1) $ 0.17 $ 0.12 $ 0.05 $ 0.16 $ 0.11 $ 0.05
Adjusted Gathering
Operation and
Maintenance Expense
per Mcf(1)(2) $ 0.14 $ 0.12 $ 0.02 $ 0.11 $ 0.11 $ --
Depreciation,
Depletion and
Amortization per
Mcf(1) $ 0.79 $ 0.72 $ 0.07 $ 0.78 $ 0.73 $ 0.05
(1) Refer to page 14 for the Upstream General and Administrative
Expense, Lease Operating Expense, Gathering Operation
and Maintenance Expense, and Depreciation, Depletion,
and Amortization Expense for the Integrated Upstream
and Gathering segment.
(2) Adjusted Gathering O&M Expense of $0.12 per Mcf and
$0.11 per Mcf for the three and six months ended March
31, 2025, respectively, each exclude a $0.03 per Mcf
reduction to Gathering O&M Expense attributed to a
change in segment reporting, which is fully offset
in operating revenue.
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Pipeline and Storage Throughput - (millions of cubic
feet - MMcf)
Three Months Ended Six Months Ended
March 31, March 31,
---------------------------- ------------------------------
Increase Increase
2026 2025 (Decrease) 2026 2025 (Decrease)
------- ------- ---------- ------- ------- ------------
Firm
Transportation
- Affiliated 45,486 49,240 (3,754) 80,018 81,110 (1,092)
Firm
Transportation
-
Non-Affiliated 201,460 185,490 15,970 381,001 356,502 24,499
Interruptible
Transportation 583 454 129 608 515 93
------- ------- --------- ------- ------- ---------
247,529 235,184 12,345 461,627 438,127 23,500
======= ======= ========= ======= ======= =========
Utility
Throughput -
(MMcf)
Three Months Ended Six Months Ended
March 31, March 31,
---------------------------- ------------------------------
Increase Increase
2026 2025 (Decrease) 2026 2025 (Decrease)
------- ------- ---------- ------- ------- ------------
Retail Sales:
Residential
Sales 32,934 32,111 823 54,775 50,587 4,188
Commercial
Sales 5,581 5,420 161 9,130 8,339 791
Industrial
Sales 305 302 3 495 501 (6)
------- ------- --------- ------- ------- ---------
38,820 37,833 987 64,400 59,427 4,973
Transportation 25,502 25,086 416 45,171 42,028 3,143
------- ------- --------- ------- ------- ---------
64,322 62,919 1,403 109,571 101,455 8,116
======= ======= ========= ======= ======= =========
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 earnings, 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 earnings as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel's reported GAAP earnings to adjusted earnings for the three and six months ended March 31, 2026 and 2025:
Three Months Ended Six Months Ended
March 31, March 31,
--------------------
(in thousands
except per share
amounts) 2026 2025 2026 2025
------- ------- -------
Reported GAAP
Earnings $247,668 $216,358 $429,313 $261,344
Items impacting
comparability:
Impairment of
assets -- -- -- 141,802
Tax impact of
impairment of
assets -- -- -- (37,169)
Premiums paid
on early
redemption of
debt -- 2,385 -- 2,385
Tax impact of
premiums paid
on early
redemption of
debt -- (642) -- (642)
Unrealized
(gain) loss
on derivative
asset -- 335 -- 684
Tax impact of
unrealized
(gain) loss
on derivative
asset -- (90) -- (184)
Costs related
to the
pending Ohio
gas utility
acquisition 2,499 -- 10,186 --
Tax impact of
costs related
to the
pending Ohio
gas utility
acquisition (579) -- (2,361) --
Net interest
benefit from
equity
issuance (3,422) -- (3,931) --
Tax impact of
net interest
benefit from
equity
issuance 793 -- 911 --
Unrealized
(gain) loss
on other
investments 347 (17) 1,008 2,600
Tax impact of
unrealized
(gain) loss
on other
investments (73) 4 (212) (546)
Adjusted Earnings $247,233 $218,333 $434,914 $370,274
======= ======= ======= =======
Reported GAAP
Earnings Per Share $ 2.59 $ 2.37 $ 4.58 $ 2.86
Items impacting
comparability:
Impairment of
assets, net
of tax -- -- -- 1.14
Premiums paid
on early
redemption of
debt, net of
tax -- 0.02 -- 0.02
Unrealized
(gain) loss
on derivative
asset, net of
tax -- -- -- 0.01
Costs related
to the
pending Ohio
gas utility
acquisition,
net of tax 0.02 -- 0.09 --
Impact of
equity
issuance
related to
pending
acquisition,
net of
interest
benefits 0.10 -- 0.09 --
Unrealized
(gain) loss
on other
investments,
net of tax -- -- 0.01 0.02
Rounding -- -- -- 0.01
------- ------- ------- -------
Adjusted Earnings
Per Share $ 2.71 $ 2.39 $ 4.77 $ 4.06
======= ======= ======= =======
Management defines adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel's reported GAAP earnings to adjusted EBITDA for the three and six months ended March 31, 2026 and 2025:
Three Months Ended Six Months Ended
March 31, March 31,
----------------------
(in thousands) 2026 2025 2026 2025
Reported GAAP Earnings $247,668 $216,358 $429,313 $261,344
Depreciation,
Depletion and
Amortization 119,329 111,277 241,354 220,647
Other (Income)
Deductions (17,002) (15,232) (25,235) (22,952)
Interest Expense 33,734 44,757 77,110 82,500
Income Taxes 82,735 71,369 142,072 82,551
Impairment of
Assets -- -- -- 141,802
Costs related to
the pending
Ohio gas
utility
acquisition(1) 2,499 -- 4,506 --
------- ------- ------- -------
Adjusted EBITDA $468,963 $428,529 $869,120 $765,892
======= ======= ======= =======
Adjusted EBITDA by
Segment
Integrated Upstream
and Gathering
Adjusted EBITDA $302,439 $267,098 $570,880 $475,679
Pipeline and Storage
Adjusted EBITDA 71,963 70,169 142,955 141,122
Utility Adjusted
EBITDA 99,763 95,270 164,416 155,935
Corporate and All
Other Adjusted
EBITDA (5,202) (4,008) (9,131) (6,844)
------- ------- ------- -------
Total Adjusted EBITDA $468,963 $428,529 $869,120 $765,892
======= ======= ======= =======
(1() For the six months ended March 31, 2026, costs represent
a portion of acquisition costs recognized in O&M expense
for the pending Ohio gas utility acquisition. The
remaining $5.7 million of acquisition costs for the
six months ended March 31, 2026 are recognized in
interest expense.
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) 2026 2025 2026 2025
------- ------- -------
Integrated
Upstream and
Gathering Segment
------------------
Reported GAAP
Earnings $152,030 $124,170 $276,077 $104,538
Depreciation,
Depletion and
Amortization 80,548 75,456 164,810 149,274
Other (Income)
Deductions (299) (231) (411) (598)
Interest
Expense 15,111 22,824 31,245 42,235
Income Taxes 55,049 44,879 99,159 38,428
Impairment of
Assets -- -- -- 141,802
Adjusted EBITDA $302,439 $267,098 $570,880 $475,679
======= ======= ======= =======
Pipeline and
Storage Segment
------------------
Reported GAAP
Earnings $ 31,606 $ 31,707 $ 62,825 $ 64,162
Depreciation,
Depletion and
Amortization 19,961 18,547 39,063 37,132
Other (Income)
Deductions (1,941) (2,746) (3,438) (5,738)
Interest
Expense 11,779 11,700 23,580 23,428
Income Taxes 10,558 10,961 20,925 22,138
Adjusted EBITDA $ 71,963 $ 70,169 $142,955 $141,122
======= ======= ======= =======
Utility Segment
------------------
Reported GAAP
Earnings $ 65,349 $ 63,544 $ 99,439 $ 96,043
Depreciation,
Depletion and
Amortization 18,601 17,135 37,081 33,962
Other (Income)
Deductions (13,324) (13,013) (20,183) (19,412)
Interest
Expense 11,138 10,927 22,744 21,643
Income Taxes 17,999 16,677 25,335 23,699
Adjusted EBITDA $ 99,763 $ 95,270 $164,416 $155,935
======= ======= ======= =======
Corporate and All
Other
------------------
Reported GAAP
Earnings $ (1,317) $ (3,063) $ (9,028) $ (3,399)
Depreciation,
Depletion and
Amortization 219 139 400 279
Other (Income)
Deductions (1,438) 758 (1,203) 2,796
Interest
Expense (4,294) (694) (459) (4,806)
Income Taxes (871) (1,148) (3,347) (1,714)
Costs related
to the
pending Ohio
gas utility
acquisition 2,499 -- 4,506 --
Adjusted EBITDA $ (5,202) $ (4,008) $ (9,131) $ (6,844)
======= ======= ======= =======
Management defines free cash flow as net cash provided by operating activities, less net cash used in investing activities, adjusted for acquisitions and divestitures. For the six months ended March 31, 2026, net cash provided by operating activities was $661 million; net cash used in investing activities was $501 million; there were no adjustments for acquisitions or divestitures; and free cash flow was $160 million. For the six months ended March 31, 2025, net cash provided by operating activities was $474 million; net cash used in investing activities was $425 million; there were no adjustments for acquisitions or divestitures; and free cash flow was $49 million. 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 Timothy J. Silverstein Investor Relations Chief Financial Officer 716-857-7315 716-857-6987
(END) Dow Jones Newswires
April 29, 2026 16:45 ET (20:45 GMT)
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