National Fuel Gas Company (“National Fuel” or the “Company”)
(NYSE:NFG) today announced consolidated results for the third
quarter of its 2019 fiscal year and for the nine months ended June
30, 2019.
FISCAL 2019 THIRD QUARTER
SUMMARY
- GAAP earnings of $63.8 million, or $0.73 per share, compared to
$63.0 million, or $0.73 per share, in the prior year
- Adjusted operating results of $61.8 million, or $0.71 per
share, compared to $63.3 million, or $0.73 per share, in the prior
year (see non-GAAP reconciliation on page 2)
- Adjusted EBITDA of $182.9 million compared to $175.2 million in
the prior year (non-GAAP reconciliation on page 24)
- E&P segment net production of 54.7 Bcfe, an increase of 23%
from the prior year and 12% from the second quarter
- Average natural gas prices, after the impact of hedging, of
$2.36 per Mcf, down $0.07 per Mcf from the prior year
- Average oil prices, after the impact of hedging, of $62.92 per
Bbl, up $4.18 per Bbl from the prior year
- Gathering segment operating revenues increased $5.0 million on
an 18% increase in gathered volumes
- Utility segment net income increased $3.4 million, or 87%, on
higher customer margins
FISCAL 2019 AND FISCAL 2020 GUIDANCE
UPDATE SUMMARY
The Company is updating its fiscal 2019 guidance
and providing preliminary fiscal 2020 guidance relating to
earnings, capital expenditures, and production. See pages 5
and 6 for additional discussion.
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UpdatedFY 2019 Guidance |
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PreliminaryFY 2020 Guidance |
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Key Forecast Drivers |
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| Earnings per
Share |
$3.40 to $3.50 |
|
$3.25 to $3.55 |
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Increase in production offset by lower natural gas prices |
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| Capital Expenditures
($MM) |
$745 to $800 |
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$725 to $820 |
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E&P and Gathering |
$525 to $550 |
|
$455 to $505 |
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Seneca to drop rig in Q2 fiscal 2020 |
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Pipeline and Storage |
$130 to $150 |
|
$180 to $215 |
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Empire North expansion project |
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Utility |
$90 to $100 |
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$90 to $100 |
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System modernization backed by rate tracker in NY |
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| E&P Production
(Bcfe) |
205 to 215 |
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235 to 245 |
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Utica and Marcellus development |
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MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive
Officer of National Fuel Gas Company, stated: “Our fiscal third
quarter results once again demonstrate why the integrated model is
a significant advantage for National Fuel, particularly during
periods of commodity price volatility. Our Utility and Gathering
businesses led the way with significant year over year earnings
growth, along with the strong operational performance of our
Exploration and Production business. As we look to fiscal 2020, we
do so with a close eye on longer-term natural gas prices and a
focus on prudently deploying capital and maintaining our strong
balance sheet. We plan to reduce our drilling activity accordingly
but will continue to invest in pipeline expansion projects and
utility system modernization opportunities that add shareholder
value and position National Fuel for long-term growth and
success
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RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING
RESULTS |
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Three Months Ended |
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Nine Months Ended |
| |
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June 30, |
|
June 30, |
| (in thousands except per share
amounts) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Reported GAAP Earnings |
|
$ |
63,753 |
|
|
$ |
63,025 |
|
|
$ |
257,009 |
|
|
$ |
353,527 |
|
|
Items impacting comparability |
|
|
|
|
|
|
|
|
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Remeasurement of deferred income taxes under 2017 Tax Reform |
|
— |
|
|
— |
|
|
(5,000 |
) |
|
(107,000 |
) |
|
Mark-to-market adjustments due to hedge ineffectiveness
(E&P) |
|
(1,020 |
) |
|
339 |
|
|
(783 |
) |
|
436 |
|
|
Tax impact of mark-to-market adjustments due to hedge
ineffectiveness |
|
214 |
|
|
(83 |
) |
|
164 |
|
|
(107 |
) |
|
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
(1,420 |
) |
|
— |
|
|
1,096 |
|
|
— |
|
|
Tax impact of unrealized (gain) loss on other investments |
|
298 |
|
|
— |
|
|
(230 |
) |
|
— |
|
| Adjusted Operating
Results |
|
$ |
61,825 |
|
|
$ |
63,281 |
|
|
$ |
252,256 |
|
|
$ |
246,856 |
|
| |
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|
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| Reported GAAP Earnings
per share |
|
$ |
0.73 |
|
|
$ |
0.73 |
|
|
$ |
2.96 |
|
|
$ |
4.09 |
|
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Items impacting comparability |
|
|
|
|
|
|
|
|
|
Remeasurement of deferred income taxes under 2017 Tax Reform |
|
— |
|
|
— |
|
|
(0.06 |
) |
|
(1.24 |
) |
|
Mark-to-market adjustments due to hedge ineffectiveness
(E&P) |
|
(0.01 |
) |
|
— |
|
|
(0.01 |
) |
|
0.01 |
|
|
Tax impact of mark-to-market adjustments due to hedge
ineffectiveness |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Unrealized (gain) loss on other investments (Corporate / All
Other) |
|
(0.02 |
) |
|
— |
|
|
0.01 |
|
|
— |
|
|
Tax impact of unrealized (gain) loss on other investments |
|
— |
|
|
— |
|
|
— |
|
|
— |
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Rounding |
|
0.01 |
|
|
— |
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|
0.01 |
|
|
— |
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| Adjusted Operating
Results per share |
|
$ |
0.71 |
|
|
$ |
0.73 |
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|
$ |
2.91 |
|
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$ |
2.86 |
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DISCUSSION OF RESULTS BY
SEGMENT
The following discussion of earnings of each
operating segment for the quarter ended June 30, 2019, is
summarized in a tabular form on pages 9 and 10 of this report
(earnings drivers for the nine months ended June 30, 2019, 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
natural gas and oil reserves, primarily in Pennsylvania and
California.
| |
Three Months Ended |
| |
June 30, |
| (in thousands) |
2019 |
|
2018 |
|
Variance |
| GAAP
Earnings |
$ |
26,512 |
|
|
$ |
27,817 |
|
|
$ |
(1,305 |
) |
| Mark-to-market adjustments due
to hedge ineffectiveness |
$ |
(1,020 |
) |
|
$ |
339 |
|
|
$ |
(1,359 |
) |
| Tax impact of mark-to-market
adjustments due to hedge ineffectiveness |
$ |
214 |
|
|
$ |
(83 |
) |
|
$ |
297 |
|
| Adjusted Operating
Results |
$ |
25,706 |
|
|
$ |
28,073 |
|
|
$ |
(2,367 |
) |
| |
|
|
|
|
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| Adjusted EBITDA |
$ |
88,175 |
|
|
$ |
77,567 |
|
|
$ |
10,608 |
|
The Exploration and Production segment’s third
quarter GAAP earnings decreased $1.3 million versus the prior year,
which includes the net impact of non-cash mark-to-market
adjustments recorded during the current and prior year quarters
relating to hedge ineffectiveness. Excluding these
adjustments (see table above), the $2.4 million reduction in the
Exploration and Production segment’s third quarter earnings was due
primarily to a higher effective income tax rate, which was largely
the result of tax benefits realized in the prior year that did not
recur in the current year. Before considering these tax
items, Seneca’s third quarter earnings were higher due primarily to
the positive impacts of higher natural gas production and better
realized crude oil prices, which were partially offset by the
impacts of lower crude oil production, lower realized natural gas
prices, higher lease operating and transportation (“LOE”) expense,
and higher depreciation, depletion and amortization (“DD&A”)
expense.
Seneca’s third quarter net production was 54.7
Bcfe, an increase of 10.1 Bcfe, or 23 percent, from the prior
year. Natural gas production increased 10.3 billion cubic
feet (“Bcf”), or 25 percent, due primarily to production from new
Marcellus and Utica wells completed and connected to sales in
Appalachia. Net production increased 4.8 Bcf in Seneca’s
Eastern Development Area due largely to increased Utica development
in the EDA-Tioga area and Marcellus development in the EDA-Lycoming
area. Net gas production increased 5.5 Bcf in the
WDA-Clermont area, where Seneca added a second rig in May 2018 and
continues to experience stronger production and shallower declines
from its Utica development program. Seneca’s oil production for the
third quarter decreased 25 thousand barrels ("Mbbl"), or 4 percent,
from the prior year.
Seneca's average realized natural gas price,
after the impact of hedging and transportation costs, was $2.36 per
thousand cubic feet ("Mcf"), a decrease of $0.07 per Mcf from the
prior year. Seneca's average realized oil price, after the impact
of hedging, was $62.92 per barrel ("Bbl"), an increase of $4.18 per
Bbl over the prior year. The improvement in oil price
realizations was due primarily to stronger price differentials at
local sales points in California relative to West Texas
Intermediate (WTI) prices.
LOE expense increased $10.1 million due mostly
to higher gathering expenses in Appalachia resulting from the
increase in natural gas production coupled with an increase in well
repair costs in California. DD&A expense increased $8.8
million due to the increase in production and a $0.03 per Mcfe
increase in the unit depletion rate.
Midstream Businesses
Pipeline and Storage Segment
The Pipeline and Storage segment’s operations
are carried out by National Fuel Gas Supply Corporation (“Supply
Corporation”) and Empire Pipeline, Inc. (“Empire”). The
Pipeline and Storage segment provides natural gas transportation
and storage services to affiliated and non-affiliated companies
through an integrated system of pipelines and underground natural
gas storage fields in western New York and Pennsylvania.
| |
Three Months Ended |
| |
June 30, |
| (in thousands) |
2019 |
|
2018 |
|
Variance |
| GAAP
Earnings |
$ |
15,792 |
|
|
$ |
20,723 |
|
|
$ |
(4,931 |
) |
| |
|
|
|
|
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| Adjusted EBITDA |
$ |
37,328 |
|
|
$ |
46,072 |
|
|
$ |
(8,744 |
) |
The Pipeline and Storage segment’s third quarter
GAAP earnings decreased $5.0 million versus the prior year.
The decrease was driven primarily by lower operating revenues and
higher operation and maintenance (“O&M”) expenses, which were
partially offset by the impact of a lower effective tax rate.
The $5.0 million decrease in operating revenues was due largely to
the expiration of a significant firm transportation contract on the
Empire system in December 2018. The impact of the contract
expiration was partially offset by an increase in Empire’s
transportation rates following the settlement of Empire’s rate case
that was effective starting in January 2019. O&M expense
increased $3.5 million due primarily to an increase in pipeline
integrity maintenance activity during the quarter and higher
personnel costs. The reduction in the Pipeline and Storage
segment’s effective tax rate was due mostly to the impact of the
2017 Tax Reform Act, which lowered the Company’s statutory federal
income tax rate from a blended 24.5 percent in fiscal 2018 to 21
percent in fiscal 2019, and decreased income tax expense on current
period income by $0.6 million.
Gathering Segment
The Gathering segment’s operations are carried
out by National Fuel Gas Midstream Company, LLC’s limited liability
companies. The Gathering segment constructs, owns and operates
natural gas gathering pipelines and compression facilities in the
Appalachian region which currently delivers Seneca’s gross
Appalachian production to the interstate pipeline system.
| |
Three Months Ended |
| |
June 30, |
| (in thousands) |
2019 |
|
2018 |
|
Variance |
| GAAP
Earnings |
$ |
14,638 |
|
|
$ |
11,566 |
|
|
$ |
3,072 |
|
| |
|
|
|
|
|
| Adjusted EBITDA |
$ |
27,852 |
|
|
$ |
23,090 |
|
|
$ |
4,762 |
|
The Gathering segment’s third quarter GAAP
earnings increased $3.1 million over the prior year. The
increase was driven primarily by higher operating revenues, which
were partially offset by an increase in DD&A expense.
Operating revenues increased $5.0 million, or 18 percent, due
primarily to a 9.4 Bcf net increase in gathered volume from
Seneca’s Appalachian natural gas production. Throughput on the
Gathering segment’s Wellsboro, Clermont, and Trout Run systems
increased 4.9 Bcf, 3.6 Bcf, and 2.6 Bcf, respectively. The $1.0
million increase in DD&A expense was largely due to a $0.7
million impairment recorded during the quarter to write-down the
Company’s minority ownership in a non-operated gas processing
facility. The benefit of a lower statutory federal income tax rate
due to the 2017 Tax Reform Act was offset by the net impact of
other items that increased the Gathering segment’s effective tax
rate, including the non-recurrence of a tax benefit recorded in the
prior year relating to the blended federal rate’s impact on
deferred taxes.
Downstream Businesses
Utility Segment
The Utility segment operations are carried out
by National Fuel Gas Distribution Corporation (“Distribution”),
which sells or transports natural gas to customers located in
western New York and northwestern Pennsylvania.
| |
Three Months Ended |
| |
June 30, |
| (in thousands) |
2019 |
|
2018 |
|
Variance |
| GAAP
Earnings |
$ |
7,362 |
|
|
$ |
3,930 |
|
|
$ |
3,432 |
|
| |
|
|
|
|
|
| Adjusted EBITDA |
$ |
33,163 |
|
|
$ |
30,300 |
|
|
$ |
2,863 |
|
The Utility segment’s third quarter GAAP
earnings increased $3.4 million over the prior year. The
increase was due primarily to higher customer margin (operating
revenues less purchased gas sold) and lower interest expense.
A number of items contributed to the increase in customer margin,
including changes in customer usage and a modest increase in
residential customers, an increase in revenues relating to a system
modernization tracking mechanism, and the net impact of adjustments
related to regulatory rate mechanisms. These positive items
were partially offset by $1.8 million increase in the refund
provision recorded by the Utility segment during the quarter to
return the net effect of the 2017 Tax Reform Act to its
customers. Interest expense decreased $0.8 million due
primarily to the Company’s early refinancing of an 8.75 percent
coupon 10-year note that was set to mature in May 2019.
Energy Marketing Segment
The Energy Marketing segment's operations are
carried out by National Fuel Resources, Inc. (“NFR”). NFR
markets natural gas to industrial, wholesale, commercial, public
authority, and residential customers primarily in western and
central New York and northwestern Pennsylvania.
| |
Three Months Ended |
| |
June 30, |
| (in thousands) |
2019 |
|
2018 |
|
Variance |
| GAAP
Earnings |
$ |
(1,441 |
) |
|
$ |
(190 |
) |
|
$ |
(1,251 |
) |
| |
|
|
|
|
|
| Adjusted EBITDA |
$ |
(2,075 |
) |
|
$ |
(295 |
) |
|
$ |
(1,780 |
) |
The Energy Marketing segment’s third quarter
GAAP earnings decreased $1.3 million due primarily to a decline in
customer margins (operating revenues less purchased gas sold).
Corporate and All Other
Corporate and All Other operations had combined
earnings of $0.9 million in the current year third quarter, which
was $1.7 million higher than the loss of $0.8 million in the
prior-year third quarter. The increase in earnings was
primarily attributable to the impact of $1.4 million in unrealized
gains on investments in equity securities recorded during the
quarter ($1.1 million after-tax), lower interest expense and a
lower effective tax rate. Unrealized gains and losses on
investments in equity securities are now recognized in earnings
following the adoption of new accounting guidance in the current
year. These unrealized gains and losses had been previously
recorded as other comprehensive income. These increases were
partially offset by lower operating revenues from the sale of
standing timber by the Company’s land and timber operations.
DISCUSSION OF GUIDANCE
UPDATE
National Fuel is revising its full-year earnings
guidance for fiscal 2019. The Company projects that earnings
on a non-GAAP basis will be within the range of $3.40 to $3.50 per
share, or $3.45 per share at the midpoint of the range. The
Company’s revised earnings guidance range reflects the impact of
actual results for the nine months ended June 30, 2019, and, among
other forecast updates, lower commodity price assumptions to
reflect current market prices for natural gas and crude oil for the
remaining three months of the fiscal year. The Company is
reaffirming its Exploration and Production segment’s fiscal 2019
net production guidance, which is expected to be in the range of
205 to 215 Bcfe. The Company now expects fiscal 2019
consolidated capital expenditures to be within the range of $745
million to $800 million, or $772.5 million at the midpoint.
The Company is also initiating preliminary
guidance for fiscal 2020. National Fuel is projecting that
its fiscal 2020 earnings will be within a range of $3.25 to $3.55
per share, or $3.40 per share at the midpoint of the range and
generally in line with fiscal 2019. The Company’s fiscal 2020
earnings projections are largely being driven by an increase in
Seneca’s forecasted natural gas production and the associated
impact on Gathering segment revenues, offset by lower expected
natural gas price realizations and modest increases in operating
expenses. Seneca’s fiscal 2020 net production is expected to
be in the range of 235 to 245 Bcfe, an increase of 30 Bcf versus
fiscal 2019. The Company is projecting its natural gas price
realizations after hedging to decline approximately $0.20 per Mcf,
driven in large part by lower expected NYMEX and regional spot
prices for natural gas.
In response to the deterioration in near-term
commodity prices, the Company’s Exploration and Production segment
is planning to reduce its development activity in Appalachia and
drop one of the three horizontal drilling rigs it is currently
operating during the second quarter of fiscal 2020. As a
result, the Exploration and Production segment’s capital
expenditures are expected to be in the range of $415 million to
$455 million, a $50 million reduction versus fiscal 2019 at the
midpoint. At the reduced activity level, Seneca expects to
generate production to fully utilize its firm sales and
transportation commitments. Gathering segment capital
expenditures are expected to be $40 million to $50 million in
fiscal 2020, a decline of $7.5 million at the midpoint.
Pipeline and Storage segment capital
expenditures are expected to be in the range of $180 million to
$215 million. The $57.5 million increase at the midpoint of
the range is due primarily to higher spending on expansion
projects, including the fully-subscribed Empire North project that
is expected to add $25 million in annual revenues after the project
goes into service, which is anticipated in the second half of
fiscal 2020. Utility segment capital expenditures are
expected to be flat versus fiscal 2019 at $90 million to $100
million as the Company continues to invest in the modernization of
its gas distribution systems.
Mr. Bauer added: “Our integrated model and
diversified asset base in Appalachia provide the flexibility to
respond to market conditions and to efficiently allocate capital to
opportunities across the natural gas value chain. Just as we have
done in the past, we will again lean on that flexibility in fiscal
2020 by reducing the level of investment at the drill bit while
continuing to invest in the expansion and modernization of our
rate-regulated pipeline and utility systems, which we expect will
generate future earnings growth and stable, value-added returns for
our shareholders.”
In total, the Company’s consolidated capital
expenditures in fiscal 2020 are expected to be in a range of $725
million to $820 million, flat versus fiscal 2019 at the midpoint of
the respective ranges.
The Company’s fiscal 2019 earnings guidance
range does not include the impact of certain items that impacted
the comparability of earnings during the nine months ended June 30,
2019, including: (1) the remeasurement of deferred income taxes
resulting from the 2017 Tax Reform Act, which reduced the Company’s
income tax expense and benefited consolidated earnings in the nine
months ended June 30, 2019 by $0.06 per share; (2) the full-year
impact of the Exploration and Production segment’s mark-to-market
adjustments for hedge ineffectiveness; and (3) the unrealized loss
on other investments due to the change in an accounting rule
discussed above, which lowered earnings by $0.01 per share.
While the Company expects to record additional adjustments to one
or more of these items during the remaining three months ending
September 30, 2019, 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.
Additional details on the Company's forecast
assumptions and business segment guidance for fiscal 2019 are
outlined in the table on page 8.
EARNINGS TELECONFERENCE
The Company will host a conference call on
Friday, August 2, 2019, at 11 a.m. Eastern Time to discuss this
announcement. There are two ways to access this call.
For those with Internet access, visit the NFG Investor Relations
News & Events page at National Fuel’s website at
investor.nationalfuelgas.com. For those without Internet
access, audio access is also provided by dialing (toll-free)
833-287-0795, using conference ID number “2194110”. For those
unable to listen to the live conference call, an audio replay will
be available approximately two hours following the teleconference
at the same website link and by phone at (toll-free) 800-585-8367
using conference ID number “2194110”. Both the webcast and a
telephonic replay will be available until the close of business on
Friday, August 9, 2019.
National Fuel is an integrated energy company
reporting financial results for five operating segments:
Exploration and Production, Pipeline and Storage, Gathering,
Utility, and Energy Marketing. Additional information about
National Fuel is available at www.nationalfuelgas.com.
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| Analyst
Contact: |
Kenneth E.
Webster |
716-857-7067 |
|
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; delays or changes in costs or plans with
respect to Company projects or related projects of other companies,
including difficulties or delays in obtaining necessary
governmental approvals, permits or orders or in obtaining the
cooperation of interconnecting facility operators;
governmental/regulatory actions, initiatives and proceedings,
including those involving rate cases (which address, among other
things, target rates of return, rate design and retained natural
gas), environmental/safety requirements, affiliate relationships,
industry structure, and franchise renewal; 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 the price of natural gas or oil; impairments
under the SEC’s full cost ceiling test for natural gas and oil
reserves; factors affecting the Company’s ability to successfully
identify, drill for and produce economically viable natural gas and
oil reserves, including among others geology, lease availability,
title disputes, weather conditions, shortages, delays or
unavailability of equipment and services required in drilling
operations, insufficient gathering, processing and transportation
capacity, the need to obtain governmental approvals and permits,
and compliance with environmental laws and regulations; increasing
health care costs and the resulting effect on health insurance
premiums and on the obligation to provide other post-retirement
benefits; changes in price differentials between similar quantities
of natural gas or oil sold at different geographic locations, and
the effect of such changes on commodity production, revenues and
demand for pipeline transportation capacity to or from such
locations; other changes in price differentials between similar
quantities of natural gas or oil having different quality, heating
value, hydrocarbon mix or delivery date; the cost and effects of
legal and administrative claims against the Company or activist
shareholder campaigns to effect changes at the Company; uncertainty
of oil and gas reserve estimates; significant differences between
the Company’s projected and actual production levels for natural
gas or oil; changes in demographic patterns and weather conditions;
changes in the availability, price or accounting treatment of
derivative financial instruments; changes in laws, actuarial
assumptions, the interest rate environment and the return on
plan/trust assets related to the Company’s pension and other
post-retirement benefits, which can affect future funding
obligations and costs and plan liabilities; changes in economic
conditions, including global, national or regional recessions, and
their effect on the demand for, and customers’ ability to pay for,
the Company’s products and services; the creditworthiness or
performance of the Company’s key suppliers, customers and
counterparties; the impact of information technology,
cybersecurity or data security breaches; economic disruptions or
uninsured losses resulting from major accidents, fires, severe
weather, natural disasters, terrorist activities or acts of war;
significant differences between the Company’s projected and actual
capital expenditures and operating expenses; or increasing costs of
insurance, changes in coverage and the ability to obtain insurance.
The Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date
thereof.
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
|
|
|
GUIDANCE SUMMARY |
As discussed on pages 5 and 6, the Company is
revising its earnings guidance for fiscal 2019 and initiating
preliminary guidance for fiscal 2020. Additional details on
the Company's forecast assumptions and business segment guidance
for fiscal 2019 and fiscal 2020 are outlined in the table
below.
The Company's fiscal 2019 earnings guidance
range does not include the impact of certain items that impacted
the comparability of earnings during the nine months ended June 30,
2019, including: (1) the remeasurement of deferred income taxes
resulting from the 2017 Tax Reform Act, which reduced the Company’s
income tax expense and benefited consolidated earnings in the nine
months ended June 30, 2019 by $0.06 per share; (2) the full-year
impact of the Exploration and Production segment’s mark-to-market
adjustments for hedging ineffectiveness; and (3) the unrealized
loss on other investments due to the change in an accounting rule
discussed on page 6, which lowered earnings by $0.01 per
share. While the Company expects to record additional
adjustments to one or more of these items during the remaining
three months ending September 30, 2019, 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.
|
|
Updated FY 2019 Guidance |
|
Preliminary FY 2020 Guidance |
| Consolidated Earnings
per Share |
$3.40 to $3.50 |
|
$3.25 to $3.55 |
| Consolidated Effective
Tax Rate |
~ 24% |
|
~ 25% |
| |
|
|
|
| Capital
Expenditures (Millions) |
|
|
|
|
Exploration and Production |
$475 - $495 |
|
$415 - $455 |
|
Pipeline and Storage |
$130 - $150 |
|
$180 - $215 |
|
Gathering |
$50 - $55 |
|
$40 - $50 |
|
Utility |
$90 - $100 |
|
$90 - $100 |
|
Consolidated Capital Expenditures |
$745 - $800 |
|
$725 - $820 |
| |
|
|
|
| Exploration &
Production Segment Guidance |
|
|
|
| |
|
|
|
|
Commodity Price Assumptions (1) |
|
|
|
|
NYMEX natural gas price |
$2.40 /MMBtu |
|
$2.55 /MMBtu |
|
Appalachian basin spot price (winter | summer) |
$2.10 /MMBtu |
|
$2.20 /MMBtu | $2.00 /MMBtu |
|
NYMEX (WTI) crude oil price |
$57.50 /Bbl |
|
$55.00 /Bbl |
|
California oil price premium (% of WTI) |
108% |
|
108% |
|
|
|
|
|
|
Production (Bcfe) |
|
|
|
|
East Division - Appalachia |
189 to 199 |
|
219 to 229 |
|
West Division - California |
~ 16 |
|
~ 16 |
|
Total Production |
205 to 215 |
|
235 to 245 |
|
|
|
|
|
|
E&P Operating Costs ($/Mcfe) |
|
|
|
|
LOE |
$0.85 - $0.90 |
|
$0.85 - $0.90 |
|
G&A |
~$0.30 |
|
$0.25 - $0.30 |
|
DD&A |
$0.70 - $0.75 |
|
$0.70 - $0.75 |
| |
|
|
|
| Other Business Segment
Guidance (Millions) |
|
|
|
|
Gathering Segment Revenues |
$125 - $130 |
|
$135 - $145 |
|
Pipeline and Storage Segment Revenues |
~$285 |
|
$290 - $295 |
| |
| (1) Revised
commodity price assumptions reflect the Company's forecast for the
remainder of fiscal 2019. |
| |
| |
|
NATIONAL FUEL GAS COMPANY |
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
|
QUARTER ENDED JUNE 30, 2019 |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Upstream |
|
Midstream Businesses |
|
Downstream Businesses |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Exploration & |
|
Pipeline & |
|
|
|
|
|
Energy |
|
Corporate / |
|
|
| (Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
Marketing |
|
All Other |
|
Consolidated* |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2018 GAAP earnings |
$ |
27,817 |
|
|
$ |
20,723 |
|
|
$ |
11,566 |
|
|
$ |
3,930 |
|
|
$ |
(190 |
) |
|
$ |
(821 |
) |
|
$ |
63,025 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mark-to-market adjustments due
to hedge ineffectiveness |
339 |
|
|
|
|
|
|
|
|
|
|
|
|
339 |
|
| Tax impact of mark-to-market
adjustments due to hedge ineffectiveness |
(83 |
) |
|
|
|
|
|
|
|
|
|
|
|
(83 |
) |
| Third quarter 2018
adjusted operating results |
28,073 |
|
|
20,723 |
|
|
11,566 |
|
|
3,930 |
|
|
(190 |
) |
|
(821 |
) |
|
63,281 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) natural gas
production |
18,891 |
|
|
|
|
|
|
|
|
|
|
|
|
18,891 |
|
| Higher (lower) crude oil
production |
(1,119 |
) |
|
|
|
|
|
|
|
|
|
|
|
(1,119 |
) |
| Higher (lower) realized
natural gas prices, after hedging |
(2,950 |
) |
|
|
|
|
|
|
|
|
|
|
|
(2,950 |
) |
| Higher (lower) realized crude
oil prices, after hedging |
1,817 |
|
|
|
|
|
|
|
|
|
|
|
|
1,817 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Midstream and All
Other Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) operating
revenues |
|
|
(3,693 |
) |
|
3,773 |
|
|
|
|
|
|
(485 |
) |
|
(405 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impact of usage and
weather |
|
|
|
|
|
|
1,425 |
|
|
|
|
|
|
1,425 |
|
| System modernization tracker
revenues |
|
|
|
|
|
|
1,033 |
|
|
|
|
|
|
1,033 |
|
| Lower (higher) refund
provision on tax rate change |
|
|
|
|
|
|
(1,386 |
) |
|
|
|
|
|
(1,386 |
) |
| Regulatory true-up
adjustments |
|
|
|
|
|
|
1,069 |
|
|
|
|
|
|
1,069 |
|
| Higher (lower) marketing
margins |
|
|
|
|
|
|
|
|
(1,251 |
) |
|
|
|
(1,251 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lower (higher) lease operating
and transportation expenses |
(7,618 |
) |
|
|
|
|
|
|
|
|
|
|
|
(7,618 |
) |
| Lower (higher) operating
expenses |
|
|
(2,606 |
) |
|
|
|
|
|
|
|
|
|
(2,606 |
) |
| Lower (higher) depreciation /
depletion |
(6,613 |
) |
|
|
|
(786 |
) |
|
|
|
|
|
|
|
(7,399 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Higher) lower interest
expense |
(455 |
) |
|
335 |
|
|
162 |
|
|
588 |
|
|
|
|
636 |
|
|
1,266 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impact of tax rate reduction
due to 2017 Tax Reform |
953 |
|
|
602 |
|
|
819 |
|
|
271 |
|
|
(69 |
) |
|
(20 |
) |
|
2,556 |
|
| Lower (higher) income tax
expense / effective tax rate |
(4,281 |
) |
|
169 |
|
|
(789 |
) |
|
269 |
|
|
75 |
|
|
723 |
|
|
(3,834 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| All other / rounding |
(992 |
) |
|
262 |
|
|
(107 |
) |
|
163 |
|
|
(6 |
) |
|
(265 |
) |
|
(945 |
) |
| Third quarter 2019
adjusted operating results |
25,706 |
|
|
15,792 |
|
|
14,638 |
|
|
7,362 |
|
|
(1,441 |
) |
|
(232 |
) |
|
61,825 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mark-to-market adjustments due
to hedge ineffectiveness |
1,020 |
|
|
|
|
|
|
|
|
|
|
|
|
1,020 |
|
| Tax impact of mark-to-market
adjustments due to hedge ineffectiveness |
(214 |
) |
|
|
|
|
|
|
|
|
|
|
|
(214 |
) |
| Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
|
1,420 |
|
|
1,420 |
|
| Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
|
(298 |
) |
|
(298 |
) |
| Third quarter 2019
GAAP earnings |
$ |
26,512 |
|
|
$ |
15,792 |
|
|
$ |
14,638 |
|
|
$ |
7,362 |
|
|
$ |
(1,441 |
) |
|
$ |
890 |
|
|
$ |
63,753 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| * Amounts do not reflect
intercompany eliminations |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ** Operating
results have been calculated using the 24.5% federal statutory rate
effective for the 2018 fiscal year. The impact of the change to a
21% federal statutory rate for the 2019 fiscal year is broken out
separately under the caption "Income Taxes". |
| *** Downstream
margin defined as operating revenues less purchased gas
expense. |
| |
| |
|
NATIONAL FUEL GAS COMPANY |
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
|
QUARTER ENDED JUNE 30, 2019 |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Upstream |
|
Midstream Businesses |
|
Downstream Businesses |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Exploration & |
|
Pipeline & |
|
|
|
|
|
Energy |
|
Corporate / |
|
|
| |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
Marketing |
|
All Other |
|
Consolidated* |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2018 GAAP earnings per share |
$ |
0.32 |
|
|
$ |
0.24 |
|
|
$ |
0.13 |
|
|
$ |
0.05 |
|
|
$ |
— |
|
|
$ |
(0.01 |
) |
|
$ |
0.73 |
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mark-to-market adjustments due
to hedge ineffectiveness |
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
| Tax impact of mark-to-market
adjustments due to hedge ineffectiveness |
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
| Third quarter 2018
adjusted operating results per share |
0.32 |
|
|
0.24 |
|
|
0.13 |
|
|
0.05 |
|
|
— |
|
|
(0.01 |
) |
|
0.73 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) natural gas
production |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
0.22 |
|
| Higher (lower) crude oil
production |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
| Higher (lower) realized
natural gas prices, after hedging |
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
(0.03 |
) |
| Higher (lower) realized crude
oil prices, after hedging |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
0.02 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Midstream and All
Other Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) operating
revenues |
|
|
(0.04 |
) |
|
0.04 |
|
|
|
|
|
|
(0.01 |
) |
|
(0.01 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impact of usage and
weather |
|
|
|
|
|
|
0.02 |
|
|
|
|
|
|
0.02 |
|
| System modernization tracker
revenues |
|
|
|
|
|
|
0.01 |
|
|
|
|
|
|
0.01 |
|
| Lower (higher) refund
provision on tax rate change |
|
|
|
|
|
|
(0.02 |
) |
|
|
|
|
|
(0.02 |
) |
| Regulatory true-up
adjustments |
|
|
|
|
|
|
0.01 |
|
|
|
|
|
|
0.01 |
|
| Higher (lower) marketing
margins |
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
|
(0.01 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lower (higher) lease operating
and transportation expenses |
(0.09 |
) |
|
|
|
|
|
|
|
|
|
|
|
(0.09 |
) |
| Lower (higher) operating
expenses |
|
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
(0.03 |
) |
| Lower (higher) depreciation /
depletion |
(0.08 |
) |
|
|
|
(0.01 |
) |
|
|
|
|
|
|
|
(0.09 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Higher) lower interest
expense |
(0.01 |
) |
|
— |
|
|
— |
|
|
0.01 |
|
|
|
|
0.01 |
|
|
0.01 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impact of tax rate reduction
due to 2017 Tax Reform |
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.03 |
|
| Lower (higher) income tax
expense / effective tax rate |
(0.05 |
) |
|
— |
|
|
(0.01 |
) |
|
— |
|
|
— |
|
|
0.01 |
|
|
(0.05 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| All other / rounding |
— |
|
|
— |
|
|
0.01 |
|
|
— |
|
|
(0.01 |
) |
|
— |
|
|
— |
|
| Third quarter 2019
adjusted operating results per share |
0.30 |
|
|
0.18 |
|
|
0.17 |
|
|
0.08 |
|
|
(0.02 |
) |
|
— |
|
|
0.71 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mark-to-market adjustments due
to hedge ineffectiveness |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
0.01 |
|
| Tax impact of mark-to-market
adjustments due to hedge ineffectiveness |
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
| Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
|
0.02 |
|
|
0.02 |
|
| Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
|
— |
|
|
— |
|
| Rounding |
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
(0.01 |
) |
| Third quarter 2019
GAAP earnings per share |
$ |
0.31 |
|
|
$ |
0.18 |
|
|
$ |
0.17 |
|
|
$ |
0.08 |
|
|
$ |
(0.02 |
) |
|
$ |
0.01 |
|
|
$ |
0.73 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| * Amounts do not reflect
intercompany eliminations |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ** Operating
results have been calculated using the 24.5% federal statutory rate
effective for the 2018 fiscal year. The impact of the change to a
21% federal statutory rate for the 2019 fiscal year is broken out
separately under the caption "Income Taxes". |
| *** Downstream
margin defined as operating revenues less purchased gas
expense. |
| |
| |
|
NATIONAL FUEL GAS COMPANY |
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS |
|
NINE MONTHS ENDED JUNE 30, 2019 |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Upstream |
|
Midstream Businesses |
|
Downstream Businesses |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Exploration & |
|
Pipeline & |
|
|
|
|
|
Energy |
|
Corporate / |
|
|
| (Thousands of Dollars) |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
Marketing |
|
All Other |
|
Consolidated* |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended June 30, 2018 GAAP earnings |
$ |
161,052 |
|
|
$ |
81,909 |
|
|
$ |
68,736 |
|
|
$ |
58,283 |
|
|
$ |
1,434 |
|
|
$ |
(17,887 |
) |
|
$ |
353,527 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurement of deferred
taxes under 2017 Tax Reform |
(76,510 |
) |
|
(14,100 |
) |
|
(34,500 |
) |
|
|
|
359 |
|
|
17,751 |
|
|
(107,000 |
) |
| Mark-to-market adjustments due
to hedge ineffectiveness |
436 |
|
|
|
|
|
|
|
|
|
|
|
|
436 |
|
| Tax impact of mark-to-market
adjustments due to hedge ineffectiveness |
(107 |
) |
|
|
|
|
|
|
|
|
|
|
|
(107 |
) |
| Nine months ended June
30, 2018 adjusted operating results |
84,871 |
|
|
67,809 |
|
|
34,236 |
|
|
58,283 |
|
|
1,793 |
|
|
(136 |
) |
|
246,856 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) natural gas
production |
44,802 |
|
|
|
|
|
|
|
|
|
|
|
|
44,802 |
|
| Higher (lower) crude oil
production |
(10,025 |
) |
|
|
|
|
|
|
|
|
|
|
|
(10,025 |
) |
| Higher (lower) realized
natural gas prices, after hedging |
(4,248 |
) |
|
|
|
|
|
|
|
|
|
|
|
(4,248 |
) |
| Higher (lower) realized crude
oil prices, after hedging |
3,782 |
|
|
|
|
|
|
|
|
|
|
|
|
3,782 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Midstream and All
Other Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) operating
revenues |
|
|
(5,690 |
) |
|
9,428 |
|
|
|
|
|
|
(1,249 |
) |
|
2,489 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impact of usage and
weather |
|
|
|
|
|
|
3,684 |
|
|
|
|
|
|
3,684 |
|
| System modernization tracker
revenues |
|
|
|
|
|
|
2,601 |
|
|
|
|
|
|
2,601 |
|
| Lower (higher) refund
provision on tax rate change |
|
|
|
|
|
|
(3,801 |
) |
|
|
|
|
|
(3,801 |
) |
| Regulatory true-up
adjustments |
|
|
|
|
|
|
1,173 |
|
|
|
|
|
|
1,173 |
|
| Higher (lower) marketing
margins |
|
|
|
|
|
|
|
|
(3,360 |
) |
|
|
|
(3,360 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lower (higher) lease operating
and transportation expenses |
(11,429 |
) |
|
|
|
|
|
|
|
|
|
|
|
(11,429 |
) |
| Lower (higher) operating
expenses |
(1,636 |
) |
|
(7,956 |
) |
|
(1,680 |
) |
|
(895 |
) |
|
|
|
|
|
(12,167 |
) |
| Lower (higher) property,
franchise and other taxes |
(2,123 |
) |
|
(867 |
) |
|
|
|
|
|
|
|
|
|
(2,990 |
) |
| Lower (higher) depreciation /
depletion |
(15,052 |
) |
|
(935 |
) |
|
(1,568 |
) |
|
|
|
|
|
|
|
(17,555 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Higher) lower other
deductions |
|
|
1,581 |
|
|
|
|
2,421 |
|
|
|
|
|
|
4,002 |
|
| (Higher) lower interest
expense |
(423 |
) |
|
1,064 |
|
|
256 |
|
|
1,749 |
|
|
— |
|
|
1,188 |
|
|
3,834 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impact of tax rate reduction
due to 2017 Tax Reform |
3,556 |
|
|
2,220 |
|
|
1,969 |
|
|
2,813 |
|
|
(76 |
) |
|
(216 |
) |
|
10,266 |
|
| Lower (higher) income tax
expense / effective tax rate |
(7,376 |
) |
|
1,885 |
|
|
(1,393 |
) |
|
195 |
|
|
248 |
|
|
817 |
|
|
(5,624 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| All other / rounding |
291 |
|
|
(468 |
) |
|
(237 |
) |
|
377 |
|
|
(1 |
) |
|
4 |
|
|
(34 |
) |
| Nine months ended June
30, 2019 adjusted operating results |
84,990 |
|
|
58,643 |
|
|
41,011 |
|
|
68,600 |
|
|
(1,396 |
) |
|
408 |
|
|
252,256 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurement of deferred
taxes under 2017 Tax Reform |
990 |
|
|
|
|
500 |
|
|
|
|
198 |
|
|
3,312 |
|
|
5,000 |
|
| Mark-to-market adjustments due
to hedge ineffectiveness |
783 |
|
|
|
|
|
|
|
|
|
|
|
|
783 |
|
| Tax impact of mark-to-market
adjustments due to hedge ineffectiveness |
(164 |
) |
|
|
|
|
|
|
|
|
|
|
|
(164 |
) |
| Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
|
(1,096 |
) |
|
(1,096 |
) |
| Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
|
230 |
|
|
230 |
|
| Nine months ended June
30, 2019 GAAP earnings |
$ |
86,599 |
|
|
$ |
58,643 |
|
|
$ |
41,511 |
|
|
$ |
68,600 |
|
|
$ |
(1,198 |
) |
|
$ |
2,854 |
|
|
$ |
257,009 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| * Amounts do not reflect
intercompany eliminations |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ** Operating
results have been calculated using the 24.5% federal statutory rate
effective for the 2018 fiscal year. The impact of the change to a
21% federal statutory rate for the 2019 fiscal year is broken out
separately under the caption "Income Taxes". |
| *** Downstream
margin defined as operating revenues less purchased gas
expense. |
| |
| |
|
NATIONAL FUEL GAS COMPANY |
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE |
|
NINE MONTHS ENDED JUNE 30, 2019 |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Upstream |
|
Midstream Businesses |
|
Downstream Businesses |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Exploration & |
|
Pipeline & |
|
|
|
|
|
Energy |
|
Corporate / |
|
|
| |
Production |
|
Storage |
|
Gathering |
|
Utility |
|
Marketing |
|
All Other |
|
Consolidated* |
|
Nine months ended June 30, 2018 GAAP earnings per
share |
$ |
1.86 |
|
|
$ |
0.95 |
|
|
$ |
0.80 |
|
|
$ |
0.67 |
|
|
$ |
0.02 |
|
|
$ |
(0.21 |
) |
|
$ |
4.09 |
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurement of deferred
taxes under 2017 Tax Reform |
(0.89 |
) |
|
(0.16 |
) |
|
(0.40 |
) |
|
|
|
— |
|
|
0.21 |
|
|
(1.24 |
) |
| Mark-to-market adjustments due
to hedge ineffectiveness |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
0.01 |
|
| Tax impact of mark-to-market
adjustments due to hedge ineffectiveness |
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
| Nine months ended June
30, 2018 adjusted operating results per share |
0.98 |
|
|
0.79 |
|
|
0.40 |
|
|
0.67 |
|
|
0.02 |
|
|
— |
|
|
2.86 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Drivers of adjusted
operating results** |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Upstream
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) natural gas
production |
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
0.52 |
|
| Higher (lower) crude oil
production |
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|
|
(0.12 |
) |
| Higher (lower) realized
natural gas prices, after hedging |
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
(0.05 |
) |
| Higher (lower) realized crude
oil prices, after hedging |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
0.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Midstream and All
Other Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Higher (lower) operating
revenues |
|
|
(0.07 |
) |
|
0.11 |
|
|
|
|
|
|
(0.01 |
) |
|
0.03 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Downstream
Margins*** |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impact of usage and
weather |
|
|
|
|
|
|
0.04 |
|
|
|
|
|
|
0.04 |
|
| System modernization tracker
revenues |
|
|
|
|
|
|
0.03 |
|
|
|
|
|
|
0.03 |
|
| Lower (higher) refund
provision on tax rate change |
|
|
|
|
|
|
(0.04 |
) |
|
|
|
|
|
(0.04 |
) |
| Regulatory true-up
adjustments |
|
|
|
|
|
|
0.01 |
|
|
|
|
|
|
0.01 |
|
| Higher (lower) marketing
margins |
|
|
|
|
|
|
|
|
(0.04 |
) |
|
|
|
(0.04 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lower (higher) lease operating
and transportation expenses |
(0.13 |
) |
|
|
|
|
|
|
|
|
|
|
|
(0.13 |
) |
| Lower (higher) operating
expenses |
(0.02 |
) |
|
(0.09 |
) |
|
(0.02 |
) |
|
(0.01 |
) |
|
|
|
|
|
(0.14 |
) |
| Lower (higher) property,
franchise and other taxes |
(0.02 |
) |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
(0.03 |
) |
| Lower (higher) depreciation /
depletion |
(0.17 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
|
|
|
|
|
|
|
(0.20 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Higher) lower other
deductions |
|
|
0.02 |
|
|
|
|
0.03 |
|
|
|
|
|
|
0.05 |
|
| (Higher) lower interest
expense |
— |
|
|
0.01 |
|
|
— |
|
|
0.02 |
|
|
— |
|
|
0.01 |
|
|
0.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impact of tax rate reduction
due to 2017 Tax Reform |
0.04 |
|
|
0.03 |
|
|
0.02 |
|
|
0.03 |
|
|
— |
|
|
— |
|
|
0.12 |
|
| Lower (higher) income tax
expense / effective tax rate |
(0.09 |
) |
|
0.02 |
|
|
(0.02 |
) |
|
— |
|
|
— |
|
|
0.01 |
|
|
(0.08 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| All other / rounding |
— |
|
|
(0.01 |
) |
|
— |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
— |
|
| Nine months ended June
30, 2019 adjusted operating results per share |
0.98 |
|
|
0.68 |
|
|
0.47 |
|
|
0.79 |
|
|
(0.02 |
) |
|
0.01 |
|
|
2.91 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Items impacting
comparability: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurement of deferred
taxes under 2017 Tax Reform |
0.01 |
|
|
|
|
0.01 |
|
|
|
|
— |
|
|
0.04 |
|
|
0.06 |
|
| Mark-to-market adjustments due
to hedge ineffectiveness |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
0.01 |
|
| Tax impact of mark-to-market
adjustments due to hedge ineffectiveness |
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
| Unrealized gain (loss) on
other investments |
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
(0.01 |
) |
| Tax impact of unrealized gain
(loss) on other investments |
|
|
|
|
|
|
|
|
|
|
— |
|
|
— |
|
| Rounding |
|
|
|
|
|
|
|
|
0.01 |
|
|
(0.02 |
) |
|
(0.01 |
) |
| Nine months ended June
30, 2019 GAAP earnings per share |
$ |
1.00 |
|
|
$ |
0.68 |
|
|
$ |
0.48 |
|
|
$ |
0.79 |
|
|
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
2.96 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| * Amounts do not reflect
intercompany eliminations |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ** Operating
results have been calculated using the 24.5% federal statutory rate
effective for the 2018 fiscal year. The impact of the change to a
21% federal statutory rate for the 2019 fiscal year is broken out
separately under the caption "Income Taxes". |
| *** Downstream
margin defined as operating revenues less purchased gas
expense. |
| |
| |
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
| (Thousands of Dollars, except
per share amounts) |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
June 30, |
|
June 30, |
| |
|
(Unaudited) |
|
(Unaudited) |
| SUMMARY OF
OPERATIONS |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| Operating Revenues: |
|
|
|
|
|
|
|
|
|
Utility and Energy Marketing Revenues |
|
$ |
151,312 |
|
|
$ |
154,088 |
|
|
$ |
781,059 |
|
|
$ |
719,234 |
|
|
Exploration and Production and Other Revenues |
|
159,864 |
|
|
137,492 |
|
|
470,267 |
|
|
425,811 |
|
|
Pipeline and Storage and Gathering Revenues |
|
46,024 |
|
|
51,332 |
|
|
148,665 |
|
|
158,428 |
|
| |
|
357,200 |
|
|
342,912 |
|
|
1,399,991 |
|
|
1,303,473 |
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
Purchased Gas |
|
47,839 |
|
|
52,211 |
|
|
381,537 |
|
|
322,854 |
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
|
Utility and Energy Marketing |
|
39,607 |
|
|
39,560 |
|
|
132,082 |
|
|
130,348 |
|
|
Exploration and Production and Other |
|
35,674 |
|
|
30,682 |
|
|
108,610 |
|
|
104,891 |
|
|
Pipeline and Storage and Gathering |
|
28,675 |
|
|
25,044 |
|
|
80,857 |
|
|
68,272 |
|
|
Property, Franchise and Other Taxes |
|
21,506 |
|
|
20,595 |
|
|
68,046 |
|
|
64,245 |
|
|
Depreciation, Depletion and Amortization |
|
71,072 |
|
|
60,817 |
|
|
200,990 |
|
|
177,802 |
|
| |
|
244,373 |
|
|
228,909 |
|
|
972,122 |
|
|
868,412 |
|
| |
|
|
|
|
|
|
|
|
| Operating Income |
|
112,827 |
|
|
114,003 |
|
|
427,869 |
|
|
435,061 |
|
| |
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Other Income (Deductions) |
|
(1,456 |
) |
|
(3,612 |
) |
|
(16,977 |
) |
|
(20,205 |
) |
|
Interest Expense on Long-Term Debt |
|
(25,303 |
) |
|
(27,177 |
) |
|
(76,016 |
) |
|
(82,412 |
) |
|
Other Interest Expense |
|
(1,202 |
) |
|
(1,006 |
) |
|
(4,061 |
) |
|
(2,742 |
) |
| |
|
|
|
|
|
|
|
|
| Income Before Income
Taxes |
|
84,866 |
|
|
82,208 |
|
|
330,815 |
|
|
329,702 |
|
| |
|
|
|
|
|
|
|
|
| Income Tax Expense
(Benefit) |
|
21,113 |
|
|
19,183 |
|
|
73,806 |
|
|
(23,825 |
) |
| |
|
|
|
|
|
|
|
|
| Net Income Available for
Common Stock |
|
$ |
63,753 |
|
|
$ |
63,025 |
|
|
$ |
257,009 |
|
|
$ |
353,527 |
|
| |
|
|
|
|
|
|
|
|
| Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.74 |
|
|
$ |
0.73 |
|
|
$ |
2.98 |
|
|
$ |
4.12 |
|
|
Diluted |
|
$ |
0.73 |
|
|
$ |
0.73 |
|
|
$ |
2.96 |
|
|
$ |
4.09 |
|
| |
|
|
|
|
|
|
|
|
| Weighted Average
Common Shares: |
|
|
|
|
|
|
|
|
| Used in Basic Calculation |
|
86,306,434 |
|
85,930,289 |
|
86,208,766 |
|
85,789,279 |
| Used in Diluted
Calculation |
|
86,839,841 |
|
86,501,194 |
|
86,765,781 |
|
86,370,900 |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(Unaudited) |
| |
|
| |
June 30, |
|
September 30, |
|
(Thousands of Dollars) |
2019 |
|
2018 |
| |
|
|
|
| ASSETS |
|
|
|
|
Property, Plant and Equipment |
$ |
10,988,435 |
|
|
$ |
10,439,839 |
|
| Less -
Accumulated Depreciation, Depletion and Amortization |
|
5,636,065 |
|
|
|
5,462,696 |
|
|
Net Property, Plant and Equipment |
|
5,352,370 |
|
|
|
4,977,143 |
|
| |
|
|
|
| Current Assets: |
|
|
|
| Cash and Temporary Cash
Investments |
|
87,515 |
|
|
|
229,606 |
|
| Hedging Collateral
Deposits |
|
6,835 |
|
|
|
3,441 |
|
| Receivables - Net |
|
178,762 |
|
|
|
141,498 |
|
| Unbilled Revenue |
|
18,047 |
|
|
|
24,182 |
|
| Gas Stored Underground |
|
17,075 |
|
|
|
37,813 |
|
| Materials and Supplies - at
average cost |
|
39,010 |
|
|
|
35,823 |
|
| Unrecovered Purchased Gas
Costs |
|
— |
|
|
|
4,204 |
|
| Other Current Assets |
|
56,052 |
|
|
|
68,024 |
|
|
Total Current Assets |
|
403,296 |
|
|
|
544,591 |
|
| |
|
|
|
| Other Assets: |
|
|
|
| Recoverable Future Taxes |
|
113,619 |
|
|
|
115,460 |
|
| Unamortized Debt Expense |
|
14,432 |
|
|
|
15,975 |
|
| Other Regulatory Assets |
|
107,206 |
|
|
|
112,918 |
|
| Deferred Charges |
|
33,627 |
|
|
|
40,025 |
|
| Other Investments |
|
137,847 |
|
|
|
132,545 |
|
| Goodwill |
|
5,476 |
|
|
|
5,476 |
|
| Prepaid Post-Retirement
Benefit Costs |
|
88,939 |
|
|
|
82,733 |
|
| Fair Value of Derivative
Financial Instruments |
|
36,803 |
|
|
|
9,518 |
|
|
Other |
|
42,632 |
|
|
|
102 |
|
|
Total Other Assets |
|
580,581 |
|
|
|
514,752 |
|
| Total
Assets |
$ |
6,336,247 |
|
|
$ |
6,036,486 |
|
| |
|
|
|
| CAPITALIZATION AND
LIABILITIES |
|
|
|
| Capitalization: |
|
|
|
| Comprehensive Shareholders'
Equity |
|
|
|
| Common Stock, $1 Par Value
Authorized - 200,000,000 Shares; Issued and |
|
|
|
| Outstanding - 86,306,593
Shares and 85,956,814 Shares, Respectively |
$ |
86,307 |
|
|
$ |
85,957 |
|
| Paid in Capital |
|
827,243 |
|
|
|
820,223 |
|
| Earnings Reinvested in the
Business |
|
1,262,867 |
|
|
|
1,098,900 |
|
|
Accumulated Other Comprehensive Loss |
|
(32,666 |
) |
|
|
(67,750 |
) |
| Total Comprehensive
Shareholders' Equity |
|
2,143,751 |
|
|
|
1,937,330 |
|
|
Long-Term Debt, Net of Current Portion and Unamortized Discount and
Debt Issuance Costs |
|
2,133,101 |
|
|
|
2,131,365 |
|
|
Total Capitalization |
|
4,276,852 |
|
|
|
4,068,695 |
|
| |
|
|
|
| Current and Accrued
Liabilities: |
|
|
|
| Notes Payable to Banks and
Commercial Paper |
|
— |
|
|
|
— |
|
| Current Portion of Long-Term
Debt |
|
— |
|
|
|
— |
|
| Accounts Payable |
|
112,782 |
|
|
|
160,031 |
|
| Amounts Payable to
Customers |
|
14,546 |
|
|
|
3,394 |
|
| Dividends Payable |
|
37,543 |
|
|
|
36,532 |
|
| Interest Payable on Long-Term
Debt |
|
29,461 |
|
|
|
19,062 |
|
| Customer Advances |
|
166 |
|
|
|
13,609 |
|
| Customer Security
Deposits |
|
16,801 |
|
|
|
25,703 |
|
| Other Accruals and Current
Liabilities |
|
180,063 |
|
|
|
132,693 |
|
| Fair
Value of Derivative Financial Instruments |
|
4,563 |
|
|
|
49,036 |
|
|
Total Current and Accrued Liabilities |
|
395,925 |
|
|
|
440,060 |
|
| |
|
|
|
| Deferred Credits: |
|
|
|
| Deferred Income Taxes |
|
647,602 |
|
|
|
512,686 |
|
| Taxes Refundable to
Customers |
|
366,184 |
|
|
|
370,628 |
|
| Cost of Removal Regulatory
Liability |
|
218,340 |
|
|
|
212,311 |
|
| Other Regulatory
Liabilities |
|
159,259 |
|
|
|
146,743 |
|
| Pension and Other
Post-Retirement Liabilities |
|
53,142 |
|
|
|
66,103 |
|
| Asset Retirement
Obligations |
|
104,732 |
|
|
|
108,235 |
|
| Other
Deferred Credits |
|
114,211 |
|
|
|
111,025 |
|
|
Total Deferred Credits |
|
1,663,470 |
|
|
|
1,527,731 |
|
|
Commitments and Contingencies |
|
— |
|
|
|
— |
|
| Total
Capitalization and Liabilities |
$ |
6,336,247 |
|
|
$ |
6,036,486 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(Unaudited) |
| |
|
Nine Months Ended |
| |
|
June 30, |
|
(Thousands of Dollars) |
|
2019 |
|
2018 |
| |
|
|
|
|
| Operating Activities: |
|
|
|
|
|
Net Income Available for Common Stock |
|
$ |
257,009 |
|
|
$ |
353,527 |
|
|
Adjustments to Reconcile Net Income to Net Cash |
|
|
|
|
|
Provided by Operating Activities: |
|
|
|
|
|
Depreciation, Depletion and Amortization |
|
200,990 |
|
|
177,802 |
|
|
Deferred Income Taxes |
|
111,123 |
|
|
(43,537 |
) |
|
Stock-Based Compensation |
|
16,144 |
|
|
11,770 |
|
|
Other |
|
7,964 |
|
|
12,311 |
|
|
Change in: |
|
|
|
|
|
Receivables and Unbilled Revenue |
|
(31,584 |
) |
|
(35,021 |
) |
|
Gas Stored Underground and Materials and Supplies |
|
17,551 |
|
|
18,832 |
|
|
Unrecovered Purchased Gas Costs |
|
4,204 |
|
|
4,623 |
|
|
Other Current Assets |
|
11,972 |
|
|
(1,185 |
) |
|
Accounts Payable |
|
(16,132 |
) |
|
2,327 |
|
|
Amounts Payable to Customers |
|
11,152 |
|
|
16,833 |
|
|
Customer Advances |
|
(13,443 |
) |
|
(15,504 |
) |
|
Customer Security Deposits |
|
(8,902 |
) |
|
(1,904 |
) |
|
Other Accruals and Current Liabilities |
|
36,040 |
|
|
26,538 |
|
|
Other Assets |
|
(34,594 |
) |
|
(10,770 |
) |
|
Other Liabilities |
|
1,061 |
|
|
1,441 |
|
|
Net Cash Provided by Operating Activities |
|
$ |
570,555 |
|
|
$ |
518,083 |
|
| |
|
|
|
|
| Investing Activities: |
|
|
|
|
| Capital Expenditures |
|
$ |
(587,442 |
) |
|
$ |
(403,994 |
) |
| Net Proceeds from Sale of Oil
and Gas Producing Properties |
|
— |
|
|
55,506 |
|
|
Other |
|
(3,071 |
) |
|
(1,759 |
) |
|
Net Cash Used in Investing Activities |
|
$ |
(590,513 |
) |
|
$ |
(350,247 |
) |
| |
|
|
|
|
| Financing Activities: |
|
|
|
|
| Reduction of Long-Term
Debt |
|
$ |
— |
|
|
$ |
(307,047 |
) |
| Dividends Paid on Common
Stock |
|
(109,875 |
) |
|
(106,732 |
) |
| Net
Proceeds from Issuance (Repurchase) of Common Stock |
|
(8,864 |
) |
|
4,262 |
|
|
Net Cash Used in Financing Activities |
|
$ |
(118,739 |
) |
|
$ |
(409,517 |
) |
| |
|
|
|
|
| Net Decrease in Cash, Cash
Equivalents, and Restricted Cash |
|
(138,697 |
) |
|
(241,681 |
) |
| Cash,
Cash Equivalents, and Restricted Cash at Beginning of Period |
|
233,047 |
|
|
557,271 |
|
| Cash,
Cash Equivalents, and Restricted Cash at June 30 |
|
$ |
94,350 |
|
|
$ |
315,590 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
|
(UNAUDITED) |
| |
|
|
|
|
|
|
|
|
|
|
UPSTREAM BUSINESS |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| (Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
| EXPLORATION AND
PRODUCTION SEGMENT |
2019 |
|
2018 |
|
Variance |
|
2019 |
2018 |
Variance |
|
Total Operating Revenues |
$ |
158,875 |
|
|
$ |
135,828 |
|
|
$ |
23,047 |
|
|
$ |
467,853 |
|
$ |
421,381 |
|
$ |
46,472 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance: |
|
|
|
|
|
|
|
|
|
|
General and Administrative Expense |
15,628 |
|
|
14,946 |
|
|
682 |
|
|
47,940 |
|
45,296 |
|
2,644 |
|
|
Lease Operating and Transportation Expense |
47,714 |
|
|
37,624 |
|
|
10,090 |
|
|
136,217 |
|
121,079 |
|
15,138 |
|
|
All Other Operation and Maintenance Expense |
2,453 |
|
|
2,728 |
|
|
(275 |
) |
|
7,705 |
|
8,182 |
|
(477 |
) |
|
Property, Franchise and Other Taxes |
3,885 |
|
|
3,302 |
|
|
583 |
|
|
13,558 |
|
10,746 |
|
2,812 |
|
|
Depreciation, Depletion and Amortization |
40,055 |
|
|
31,296 |
|
|
8,759 |
|
|
110,643 |
|
90,707 |
|
19,936 |
|
| |
109,735 |
|
|
89,896 |
|
|
19,839 |
|
|
316,063 |
|
276,010 |
|
40,053 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Income |
49,140 |
|
|
45,932 |
|
3,208 |
|
|
151,790 |
|
145,371 |
6,419 |
|
| |
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Other Income (Deductions) |
268 |
|
|
193 |
|
|
75 |
|
|
822 |
|
208 |
|
614 |
|
|
Other Interest Expense |
(13,850 |
) |
|
(13,247 |
) |
|
(603 |
) |
|
(40,561 |
) |
(40,001 |
) |
(560 |
) |
| |
|
|
|
|
|
|
|
|
|
| Income Before Income
Taxes |
35,558 |
|
|
32,878 |
|
|
2,680 |
|
|
112,051 |
|
105,578 |
|
6,473 |
|
| Income Tax Expense
(Benefit) |
9,046 |
|
|
5,061 |
|
|
3,985 |
|
|
25,452 |
|
(55,474 |
) |
80,926 |
|
| Net Income |
$ |
26,512 |
|
|
$ |
27,817 |
|
|
$ |
(1,305 |
) |
|
$ |
86,599 |
|
$ |
161,052 |
|
$ |
(74,453 |
) |
| |
|
|
|
|
|
|
|
|
|
| Net Income Per Share
(Diluted) |
$ |
0.31 |
|
|
$ |
0.32 |
|
|
$ |
(0.01 |
) |
|
$ |
1.00 |
|
$ |
1.86 |
|
$ |
(0.86 |
) |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
|
(UNAUDITED) |
| |
|
|
|
|
|
|
|
|
|
|
MIDSTREAM BUSINESSES |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| (Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
| PIPELINE AND STORAGE
SEGMENT |
2019 |
|
2018 |
|
Variance |
|
2019 |
2018 |
Variance |
|
Revenues from External Customers |
$ |
46,024 |
|
|
$ |
51,363 |
|
|
$ |
(5,339 |
) |
|
$ |
148,663 |
|
$ |
158,387 |
|
$ |
(9,724 |
) |
| Intersegment Revenues |
22,943 |
|
|
22,496 |
|
|
447 |
|
|
69,712 |
|
67,524 |
|
2,188 |
|
| Total Operating Revenues |
68,967 |
|
|
73,859 |
|
|
(4,892 |
) |
|
218,375 |
|
225,911 |
|
(7,536 |
) |
| |
|
|
|
|
|
|
|
|
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
| Purchased Gas |
70 |
|
|
105 |
|
|
(35 |
) |
|
884 |
|
266 |
|
618 |
|
| Operation and Maintenance |
24,070 |
|
|
20,618 |
|
|
3,452 |
|
|
68,610 |
|
58,072 |
|
10,538 |
|
| Property, Franchise and Other
Taxes |
7,499 |
|
|
7,064 |
|
|
435 |
|
|
22,448 |
|
21,299 |
|
1,149 |
|
| Depreciation, Depletion and
Amortization |
11,154 |
|
|
10,888 |
|
|
266 |
|
|
33,561 |
|
32,322 |
|
1,239 |
|
| |
42,793 |
|
|
38,675 |
|
|
4,118 |
|
|
125,503 |
|
111,959 |
|
13,544 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Income |
26,174 |
|
|
35,184 |
|
|
(9,010 |
) |
|
92,872 |
|
113,952 |
|
(21,080 |
) |
| |
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Other Income (Deductions) |
2,447 |
|
|
1,433 |
|
|
1,014 |
|
|
6,346 |
|
4,252 |
|
2,094 |
|
|
Interest Expense |
(7,223 |
) |
|
(7,667 |
) |
|
444 |
|
|
(22,009 |
) |
(23,418 |
) |
1,409 |
|
| |
|
|
|
|
|
|
|
|
|
| Income Before Income
Taxes |
21,398 |
|
|
28,950 |
|
|
(7,552 |
) |
|
77,209 |
|
94,786 |
|
(17,577 |
) |
| Income Tax Expense |
5,606 |
|
|
8,227 |
|
|
(2,621 |
) |
|
18,566 |
|
12,877 |
|
5,689 |
|
| Net Income |
$ |
15,792 |
|
|
$ |
20,723 |
|
|
$ |
(4,931 |
) |
|
$ |
58,643 |
|
$ |
81,909 |
|
$ |
(23,266 |
) |
| |
|
|
|
|
|
|
|
|
|
| Net Income Per Share
(Diluted) |
$ |
0.18 |
|
|
$ |
0.24 |
|
|
$ |
(0.06 |
) |
|
$ |
0.68 |
|
$ |
0.95 |
|
$ |
(0.27 |
) |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
June 30, |
|
June 30, |
| GATHERING
SEGMENT |
2019 |
|
2018 |
|
Variance |
|
2019 |
2018 |
Variance |
| Revenues from External
Customers |
$ |
— |
|
|
$ |
(31 |
) |
|
$ |
31 |
|
|
$ |
2 |
|
$ |
41 |
|
$ |
(39 |
) |
| Intersegment Revenues |
32,875 |
|
|
27,908 |
|
|
4,967 |
|
|
91,931 |
|
79,404 |
|
12,527 |
|
| Total Operating Revenues |
32,875 |
|
|
27,877 |
|
|
4,998 |
|
|
91,933 |
|
79,445 |
|
12,488 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
5,009 |
|
|
4,773 |
|
|
236 |
|
|
13,473 |
|
11,248 |
|
2,225 |
|
|
Property, Franchise and Other Taxes |
14 |
|
|
14 |
|
|
— |
|
|
62 |
|
74 |
|
(12 |
) |
|
Depreciation, Depletion and Amortization |
5,485 |
|
|
4,444 |
|
|
1,041 |
|
|
14,836 |
|
12,759 |
|
2,077 |
|
| |
10,508 |
|
|
9,231 |
|
|
1,277 |
|
|
28,371 |
|
24,081 |
|
4,290 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Income |
22,367 |
|
|
18,646 |
|
|
3,721 |
|
|
63,562 |
|
55,364 |
|
8,198 |
|
| |
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Other Income (Deductions) |
172 |
|
|
78 |
|
|
94 |
|
|
404 |
|
730 |
|
(326 |
) |
|
Interest Expense |
(2,288 |
) |
|
(2,502 |
) |
|
214 |
|
|
(7,010 |
) |
(7,349 |
) |
339 |
|
| |
|
|
|
|
|
|
|
|
|
| Income Before Income
Taxes |
20,251 |
|
|
16,222 |
|
|
4,029 |
|
|
56,956 |
|
48,745 |
|
8,211 |
|
| Income Tax Expense
(Benefit) |
5,613 |
|
|
4,656 |
|
|
957 |
|
|
15,445 |
|
(19,991 |
) |
35,436 |
|
| Net Income |
$ |
14,638 |
|
|
$ |
11,566 |
|
|
$ |
3,072 |
|
|
$ |
41,511 |
|
$ |
68,736 |
|
$ |
(27,225 |
) |
| |
|
|
|
|
|
|
|
|
|
| Net Income Per Share
(Diluted) |
$ |
0.17 |
|
|
$ |
0.13 |
|
|
$ |
0.04 |
|
|
$ |
0.48 |
|
$ |
0.80 |
|
$ |
(0.32 |
) |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
|
(UNAUDITED) |
| |
|
|
|
|
|
|
|
|
|
|
DOWNSTREAM BUSINESSES |
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| (Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
| UTILITY
SEGMENT |
2019 |
|
2018 |
|
Variance |
|
2019 |
2018 |
Variance |
|
Revenues from External Customers |
$ |
129,977 |
|
|
$ |
128,628 |
|
|
$ |
1,349 |
|
|
$ |
648,624 |
|
$ |
599,495 |
|
$ |
49,129 |
|
| Intersegment Revenues |
2,944 |
|
|
3,519 |
|
|
(575 |
) |
|
9,984 |
|
11,401 |
|
(1,417 |
) |
| Total Operating Revenues |
132,921 |
|
|
132,147 |
|
|
774 |
|
|
658,608 |
|
610,896 |
|
47,712 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
Purchased Gas |
51,003 |
|
|
53,028 |
|
|
(2,025 |
) |
|
328,119 |
|
286,446 |
|
41,673 |
|
|
Operation and Maintenance |
38,890 |
|
|
38,858 |
|
|
32 |
|
|
129,839 |
|
128,060 |
|
1,779 |
|
|
Property, Franchise and Other Taxes |
9,865 |
|
|
9,961 |
|
|
(96 |
) |
|
31,229 |
|
31,349 |
|
(120 |
) |
|
Depreciation, Depletion and Amortization |
13,546 |
|
|
13,316 |
|
|
230 |
|
|
40,202 |
|
39,981 |
|
221 |
|
| |
113,304 |
|
|
115,163 |
|
|
(1,859 |
) |
|
529,389 |
|
485,836 |
|
43,553 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Income |
19,617 |
|
|
16,984 |
|
|
2,633 |
|
|
129,219 |
|
125,060 |
|
4,159 |
|
| |
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Other Income (Deductions) |
(5,017 |
) |
|
(5,436 |
) |
|
419 |
|
|
(22,851 |
) |
(26,057 |
) |
3,206 |
|
|
Interest Expense |
(5,793 |
) |
|
(6,572 |
) |
|
779 |
|
|
(17,950 |
) |
(20,266 |
) |
2,316 |
|
| |
|
|
|
|
|
|
|
|
|
| Income Before Income
Taxes |
8,807 |
|
|
4,976 |
|
|
3,831 |
|
|
88,418 |
|
78,737 |
|
9,681 |
|
| Income Tax Expense |
1,445 |
|
|
1,046 |
|
|
399 |
|
|
19,818 |
|
20,454 |
|
(636 |
) |
| Net Income |
$ |
7,362 |
|
|
$ |
3,930 |
|
|
$ |
3,432 |
|
|
$ |
68,600 |
|
$ |
58,283 |
|
$ |
10,317 |
|
| |
|
|
|
|
|
|
|
|
|
| Net Income Per Share
(Diluted) |
$ |
0.08 |
|
|
$ |
0.05 |
|
|
$ |
0.03 |
|
|
$ |
0.79 |
|
$ |
0.67 |
|
$ |
0.12 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
June 30, |
|
June 30, |
| ENERGY MARKETING
SEGMENT |
2019 |
|
2018 |
|
Variance |
|
2019 |
2018 |
Variance |
| Revenues from External
Customers |
$ |
21,335 |
|
|
$ |
25,460 |
|
|
$ |
(4,125 |
) |
|
$ |
132,435 |
|
$ |
119,739 |
|
$ |
12,696 |
|
| Intersegment Revenues |
681 |
|
|
512 |
|
|
169 |
|
|
1,056 |
|
589 |
|
467 |
|
| Total Operating Revenues |
22,016 |
|
|
25,972 |
|
|
(3,956 |
) |
|
133,491 |
|
120,328 |
|
13,163 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
Purchased Gas |
22,517 |
|
|
24,816 |
|
|
(2,299 |
) |
|
130,853 |
|
113,240 |
|
17,613 |
|
|
Operation and Maintenance |
1,574 |
|
|
1,451 |
|
|
123 |
|
|
4,814 |
|
4,529 |
|
285 |
|
|
Depreciation, Depletion and Amortization |
72 |
|
|
69 |
|
|
3 |
|
|
213 |
|
207 |
|
6 |
|
| |
24,163 |
|
|
26,336 |
|
|
(2,173 |
) |
|
135,880 |
|
117,976 |
|
17,904 |
|
| |
|
|
|
|
|
|
|
|
|
| Operating Income (Loss) |
(2,147 |
) |
|
(364 |
) |
|
(1,783 |
) |
|
(2,389 |
) |
2,352 |
|
(4,741 |
) |
| |
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Other Income (Deductions) |
221 |
|
|
104 |
|
|
117 |
|
|
466 |
|
177 |
|
289 |
|
|
Interest Expense |
(3 |
) |
|
(4 |
) |
|
1 |
|
|
(16 |
) |
(16 |
) |
— |
|
| |
|
|
|
|
|
|
|
|
|
| Income (Loss) Before Income
Taxes |
(1,929 |
) |
|
(264 |
) |
|
(1,665 |
) |
|
(1,939 |
) |
2,513 |
|
(4,452 |
) |
| Income Tax Expense
(Benefit) |
(488 |
) |
|
(74 |
) |
|
(414 |
) |
|
(741 |
) |
1,079 |
|
(1,820 |
) |
| Net Income (Loss) |
$ |
(1,441 |
) |
|
$ |
(190 |
) |
|
$ |
(1,251 |
) |
|
$ |
(1,198 |
) |
$ |
1,434 |
|
$ |
(2,632 |
) |
| |
|
|
|
|
|
|
|
|
|
| Net Income (Loss) Per Share
(Diluted) |
$ |
(0.02 |
) |
|
$ |
— |
|
|
$ |
(0.02 |
) |
|
$ |
(0.01 |
) |
$ |
0.02 |
|
$ |
(0.03 |
) |
| |
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS |
|
(UNAUDITED) |
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| (Thousands of Dollars, except
per share amounts) |
June 30, |
|
June 30, |
| ALL
OTHER |
2019 |
|
2018 |
|
Variance |
|
2019 |
2018 |
Variance |
|
Total Operating Revenues |
$ |
854 |
|
|
$ |
1,496 |
|
|
$ |
(642 |
) |
|
$ |
2,170 |
|
$ |
3,824 |
|
$ |
(1,654 |
) |
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
316 |
|
|
404 |
|
|
(88 |
) |
|
899 |
|
1,076 |
|
(177 |
) |
|
Property, Franchise and Other Taxes |
127 |
|
|
138 |
|
|
(11 |
) |
|
398 |
|
425 |
|
(27 |
) |
|
Depreciation, Depletion and Amortization |
568 |
|
|
614 |
|
|
(46 |
) |
|
963 |
|
1,259 |
|
(296 |
) |
| |
1,011 |
|
|
1,156 |
|
|
(145 |
) |
|
2,260 |
|
2,760 |
|
(500 |
) |
| |
|
|
|
|
|
|
|
|
|
| Operating Income (Loss) |
(157 |
) |
|
340 |
|
|
(497 |
) |
|
(90 |
) |
1,064 |
|
(1,154 |
) |
| |
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Other Income (Deductions) |
155 |
|
|
98 |
|
|
57 |
|
|
443 |
|
241 |
|
202 |
|
| |
|
|
|
|
|
|
|
|
|
| Income (Loss) Before Income
Taxes |
(2 |
) |
|
438 |
|
|
(440 |
) |
|
353 |
|
1,305 |
|
(952 |
) |
| Income Tax Expense |
1 |
|
|
141 |
|
|
(140 |
) |
|
101 |
|
1,519 |
|
(1,418 |
) |
| Net Income (Loss) |
$ |
(3 |
) |
|
$ |
297 |
|
|
$ |
(300 |
) |
|
$ |
252 |
|
$ |
(214 |
) |
$ |
466 |
|
| |
|
|
|
|
|
|
|
|
|
| Net Income (Loss) Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
June 30, |
|
June 30, |
|
CORPORATE |
2019 |
|
2018 |
|
Variance |
|
2019 |
2018 |
Variance |
| Revenues from External
Customers |
$ |
135 |
|
|
$ |
168 |
|
|
$ |
(33 |
) |
|
$ |
244 |
|
$ |
606 |
|
$ |
(362 |
) |
| Intersegment Revenues |
1,165 |
|
|
999 |
|
|
166 |
|
|
3,494 |
|
2,998 |
|
496 |
|
| Total Operating Revenues |
1,300 |
|
|
1,167 |
|
|
133 |
|
|
3,738 |
|
3,604 |
|
134 |
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance |
3,159 |
|
|
3,580 |
|
|
(421 |
) |
|
9,910 |
|
10,787 |
|
(877 |
) |
|
Property, Franchise and Other Taxes |
116 |
|
|
116 |
|
|
— |
|
|
351 |
|
352 |
|
(1 |
) |
|
Depreciation, Depletion and Amortization |
192 |
|
|
190 |
|
|
2 |
|
|
572 |
|
567 |
|
5 |
|
| |
3,467 |
|
|
3,886 |
|
|
(419 |
) |
|
10,833 |
|
11,706 |
|
(873 |
) |
| |
|
|
|
|
|
|
|
|
|
| Operating Loss |
(2,167 |
) |
|
(2,719 |
) |
|
552 |
|
|
(7,095 |
) |
(8,102 |
) |
1,007 |
|
| |
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Other Income (Deductions) |
29,588 |
|
|
30,393 |
|
|
(805 |
) |
|
84,580 |
|
92,984 |
|
(8,404 |
) |
|
Interest Expense on Long-Term Debt |
(25,303 |
) |
|
(27,177 |
) |
|
1,874 |
|
|
(76,016 |
) |
(82,412 |
) |
6,396 |
|
|
Other Interest Expense |
(1,335 |
) |
|
(1,489 |
) |
|
154 |
|
|
(3,702 |
) |
(4,432 |
) |
730 |
|
| |
|
|
|
|
|
|
|
|
|
| Income (Loss) before Income
Taxes |
783 |
|
|
(992 |
) |
|
1,775 |
|
|
(2,233 |
) |
(1,962 |
) |
(271 |
) |
| Income Tax Expense
(Benefit) |
(110 |
) |
|
126 |
|
|
(236 |
) |
|
(4,835 |
) |
15,711 |
|
(20,546 |
) |
| Net Income (Loss) |
$ |
893 |
|
|
$ |
(1,118 |
) |
|
$ |
2,011 |
|
|
$ |
2,602 |
|
$ |
(17,673 |
) |
$ |
20,275 |
|
| |
|
|
|
|
|
|
|
|
|
| Net Income (Loss) Per Share
(Diluted) |
$ |
0.01 |
|
|
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
0.02 |
|
$ |
(0.21 |
) |
$ |
0.23 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
June 30, |
|
June 30, |
| INTERSEGMENT
ELIMINATIONS |
2019 |
|
2018 |
|
Variance |
|
2019 |
2018 |
Variance |
| Intersegment Revenues |
$ |
(60,608 |
) |
|
$ |
(55,434 |
) |
|
$ |
(5,174 |
) |
|
$ |
(176,177 |
) |
$ |
(161,916 |
) |
$ |
(14,261 |
) |
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
Purchased Gas |
(25,751 |
) |
|
(25,738 |
) |
|
(13 |
) |
|
(78,319 |
) |
(77,098 |
) |
(1,221 |
) |
|
Operation and Maintenance |
(34,857 |
) |
|
(29,696 |
) |
|
(5,161 |
) |
|
(97,858 |
) |
(84,818 |
) |
(13,040 |
) |
| |
(60,608 |
) |
|
(55,434 |
) |
|
(5,174 |
) |
|
(176,177 |
) |
(161,916 |
) |
(14,261 |
) |
| |
|
|
|
|
|
|
|
|
|
| Operating Income |
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
— |
|
| |
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
Other Income (Deductions) |
(29,290 |
) |
|
(30,475 |
) |
|
1,185 |
|
|
(87,187 |
) |
(92,740 |
) |
5,553 |
|
|
Interest Expense |
29,290 |
|
|
30,475 |
|
|
(1,185 |
) |
|
87,187 |
|
92,740 |
|
(5,553 |
) |
| Net Income |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
| Net Income Per Share
(Diluted) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION (Continued) |
|
(Thousands of Dollars) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
June 30, |
|
June 30, |
| |
(Unaudited) |
|
(Unaudited) |
| |
|
|
|
|
Increase |
|
|
|
|
|
Increase |
| |
2019 |
|
2018 |
|
(Decrease) |
|
2019 |
|
2018 |
|
(Decrease) |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital
Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production |
$ |
128,888 |
|
(1) |
$ |
110,591 |
|
(3) |
$ |
18,297 |
|
|
$ |
391,674 |
|
(1)(2) |
$ |
269,876 |
|
(3)(4) |
$ |
121,798 |
|
| Pipeline and Storage |
35,489 |
|
(1) |
15,916 |
|
(3) |
19,573 |
|
|
88,127 |
|
(1)(2) |
53,356 |
|
(3)(4) |
34,771 |
|
| Gathering |
17,926 |
|
(1) |
15,484 |
|
(3) |
2,442 |
|
|
39,396 |
|
(1)(2) |
47,767 |
|
(3)(4) |
(8,371 |
) |
| Utility |
22,706 |
|
(1) |
19,737 |
|
(3) |
2,969 |
|
|
58,363 |
|
(1)(2) |
52,026 |
|
(3)(4) |
6,337 |
|
| Energy Marketing |
14 |
|
|
10 |
|
|
4 |
|
|
56 |
|
|
33 |
|
|
23 |
|
| Total Reportable Segments |
205,023 |
|
|
161,738 |
|
|
43,285 |
|
|
577,616 |
|
|
423,058 |
|
|
154,558 |
|
| All Other |
68 |
|
|
— |
|
|
68 |
|
|
68 |
|
|
1 |
|
|
67 |
|
| Corporate |
267 |
|
|
7 |
|
|
260 |
|
|
369 |
|
|
51 |
|
|
318 |
|
| Eliminations |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(19,922 |
) |
|
19,922 |
|
|
Total Capital Expenditures |
$ |
205,358 |
|
|
$ |
161,745 |
|
|
$ |
43,613 |
|
|
$ |
578,053 |
|
|
$ |
403,188 |
|
|
$ |
174,865 |
|
(1) Capital expenditures for the
quarter and nine months ended June 30, 2019, include accounts
payable and accrued liabilities related to capital expenditures of
$51.0 million, $14.0 million, $8.3 million, and $6.1 million in the
Exploration and Production segment, Pipeline and Storage segment,
Gathering segment and Utility segment, respectively. These
amounts have been excluded from the Consolidated Statement of Cash
Flows at June 30, 2019, since they represent non-cash investing
activities at that date.
(2) Capital expenditures for the nine
months ended June 30, 2019, exclude capital expenditures of $51.3
million, $21.9 million, $6.1 million and $9.5 million in the
Exploration and Production segment, Pipeline and Storage segment,
Gathering segment and Utility segment, respectively. These
amounts were in accounts payable and accrued liabilities at
September 30, 2018 and paid during the nine months ended June 30,
2019. These amounts were excluded from the Consolidated
Statement of Cash Flows at September 30, 2018, since they
represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at June 30, 2019.
(3) Capital expenditures for the
quarter and nine months ended June 30, 2018, include accounts
payable and accrued liabilities related to capital expenditures of
$49.0 million, $10.9 million, $8.2 million, and $3.3 million in the
Exploration and Production segment, Pipeline and Storage segment,
Gathering segment and Utility segment, respectively. These
amounts have been excluded from the Consolidated Statement of Cash
Flows at June 30, 2018, since they represent non-cash investing
activities at that date.
(4) Capital expenditures for the nine
months ended June 30, 2018, exclude capital expenditures of $36.5
million, $25.1 million, $3.9 million and $6.7 million in the
Exploration and Production segment, Pipeline and Storage segment,
Gathering segment and Utility segment, respectively. These
amounts were in accounts payable and accrued liabilities at
September 30, 2017 and paid during the nine months ended June 30,
2018. These amounts were excluded from the Consolidated
Statement of Cash Flows at September 30, 2017, since they
represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at June 30, 2018.
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| DEGREE
DAYS |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Percent Colder |
| |
|
|
|
|
|
|
(Warmer) Than: |
| Three Months Ended June
30 |
Normal |
|
2019 |
|
2018 |
|
Normal (1) |
|
Last Year (1) |
| |
|
|
|
|
|
|
|
|
|
|
|
Buffalo, NY |
912 |
|
957 |
|
873 |
|
4.9 |
|
|
9.6 |
|
|
Erie, PA |
871 |
|
773 |
|
825 |
|
(11.3 |
) |
|
(6.3 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
| Nine Months Ended June 30 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo, NY |
6,455 |
|
6,654 |
|
6,308 |
|
3.1 |
|
|
5.5 |
|
|
Erie, PA |
6,023 |
|
5,899 |
|
5,929 |
|
(2.1 |
) |
|
(0.5 |
) |
| |
|
(1) Percents compare actual 2019 degree days to normal degree
days and actual 2019 degree days to actual 2018 degree days. |
| |
| |
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
June 30, |
|
June 30, |
| |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
| |
|
2019 |
|
2018 |
|
(Decrease) |
|
2019 |
|
2018 |
|
(Decrease) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gas
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
| Production (MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
50,766 |
|
|
40,444 |
|
|
10,322 |
|
|
140,954 |
|
|
117,261 |
|
|
23,693 |
|
|
West Coast |
|
494 |
|
|
526 |
|
|
(32 |
) |
|
1,483 |
|
|
1,896 |
|
|
(413 |
) |
| Total Production |
|
51,260 |
|
|
40,970 |
|
|
10,290 |
|
|
142,437 |
|
|
119,157 |
|
|
23,280 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Average Prices (Per Mcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
$ |
2.21 |
|
|
$ |
2.30 |
|
|
$ |
(0.09 |
) |
|
$ |
2.58 |
|
|
$ |
2.37 |
|
|
$ |
0.21 |
|
|
West Coast |
|
3.84 |
|
|
4.41 |
|
|
(0.57 |
) |
|
5.55 |
|
|
4.62 |
|
|
0.93 |
|
|
Weighted Average |
|
2.22 |
|
|
2.32 |
|
|
(0.10 |
) |
|
2.61 |
|
|
2.40 |
|
|
0.21 |
|
|
Weighted Average after Hedging |
|
2.36 |
|
|
2.43 |
|
|
(0.07 |
) |
|
2.51 |
|
|
2.55 |
|
|
(0.04 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Oil
Production/Prices: |
|
|
|
|
|
|
|
|
|
|
|
|
| Production (Thousands of
Barrels) |
|
|
|
|
|
|
|
|
|
|
|
|
| Appalachia |
|
1 |
|
|
1 |
|
|
— |
|
|
2 |
|
|
3 |
|
|
(1 |
) |
| West Coast |
|
575 |
|
|
600 |
|
|
(25 |
) |
|
1,710 |
|
|
1,934 |
|
|
(224 |
) |
| Total Production |
|
576 |
|
|
601 |
|
|
(25 |
) |
|
1,712 |
|
|
1,937 |
|
|
(225 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Average Prices (Per
Barrel) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia |
|
$ |
55.45 |
|
|
$ |
64.37 |
|
|
$ |
(8.92 |
) |
|
$ |
55.80 |
|
|
$ |
55.06 |
|
|
$ |
0.74 |
|
|
West Coast |
|
67.43 |
|
|
71.53 |
|
|
(4.10 |
) |
|
65.01 |
|
|
64.69 |
|
|
0.32 |
|
|
Weighted Average |
|
67.41 |
|
|
71.52 |
|
|
(4.11 |
) |
|
65.00 |
|
|
64.68 |
|
|
0.32 |
|
|
Weighted Average after Hedging |
|
62.92 |
|
|
58.74 |
|
|
4.18 |
|
|
61.88 |
|
|
58.96 |
|
|
2.92 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total Production (MMcfe) |
|
54,716 |
|
|
44,576 |
|
|
10,140 |
|
|
152,709 |
|
|
130,779 |
|
|
21,930 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Selected Operating
Performance Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
| General & Administrative
Expense per Mcfe (1) |
|
$ |
0.29 |
|
|
$ |
0.34 |
|
|
$ |
(0.05 |
) |
|
$ |
0.31 |
|
|
$ |
0.35 |
|
|
$ |
(0.04 |
) |
| Lease Operating and
Transportation Expense per Mcfe (1)(2) |
|
$ |
0.87 |
|
|
$ |
0.84 |
|
|
$ |
0.03 |
|
|
$ |
0.89 |
|
|
$ |
0.93 |
|
|
$ |
(0.04 |
) |
| Depreciation, Depletion &
Amortization per Mcfe (1) |
|
$ |
0.73 |
|
|
$ |
0.70 |
|
|
$ |
0.03 |
|
|
$ |
0.72 |
|
|
$ |
0.69 |
|
|
$ |
0.03 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
(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 $0.53 per Mcfe for the three months ended June
30, 2019 and June 30, 2018, respectively. Amounts include
transportation expense of $0.55 and $0.54 per Mcfe for the nine
months ended June 30, 2019 and June 30, 2018, respectively.
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION |
| |
| Hedging
Summary for Remaining Three Months of Fiscal 2019 |
Volume |
|
|
Average Hedge
Price |
| Oil Swaps |
|
|
|
|
|
|
|
Brent |
|
186,000 |
|
BBL |
|
$ |
63.52 / BBL |
|
NYMEX |
|
267,000 |
|
BBL |
|
$ |
53.42 / BBL |
|
Total |
|
453,000 |
|
BBL |
|
$ |
57.57 /
BBL |
| |
|
|
|
|
|
|
| Gas Swaps |
|
|
|
|
|
|
|
NYMEX |
|
20,040,000 |
|
MMBTU |
|
$ |
2.93 / MMBTU |
|
DAWN |
|
1,800,000 |
|
MMBTU |
|
$ |
3.00 / MMBTU |
| Fixed Price Physical
Sales |
|
19,579,555 |
|
MMBTU |
|
$ |
2.61 / MMBTU |
| Total |
|
41,419,555 |
|
MMBTU |
|
$ |
2.78 /
MMBTU |
| |
|
|
|
|
|
|
| Hedging Summary for
Fiscal 2020 |
|
Volume |
|
|
Average Hedge
Price |
| Oil Swaps |
|
|
|
|
|
|
|
Brent |
|
1,260,000 |
|
BBL |
|
$ |
64.66 / BBL |
|
NYMEX |
|
324,000 |
|
BBL |
|
$ |
50.52 / BBL |
|
Total |
|
1,584,000 |
|
BBL |
|
$ |
61.77 /
BBL |
| |
|
|
|
|
|
|
| Gas Swaps |
|
|
|
|
|
|
|
NYMEX |
|
40,990,000 |
|
MMBTU |
|
$ |
2.92 / MMBTU |
|
DAWN |
|
7,200,000 |
|
MMBTU |
|
$ |
3.00 / MMBTU |
| Fixed Price Physical
Sales |
|
46,430,854 |
|
MMBTU |
|
$ |
2.37 / MMBTU |
| Total |
|
94,620,854 |
|
MMBTU |
|
$ |
2.65 /
MMBTU |
| |
|
|
|
|
|
|
| Hedging Summary for
Fiscal 2021 |
|
Volume |
|
|
Average Hedge
Price |
| Oil Swaps |
|
|
|
|
|
|
|
Brent |
|
576,000 |
|
BBL |
|
$ |
64.48 / BBL |
|
NYMEX |
|
156,000 |
|
BBL |
|
$ |
51.00 / BBL |
|
Total |
|
732,000 |
|
BBL |
|
$ |
61.61 /
BBL |
| |
|
|
|
|
|
|
| Gas Swaps |
|
|
|
|
|
|
|
NYMEX |
|
6,790,000 |
|
MMBTU |
|
$ |
2.95 / MMBTU |
| DAWN |
|
600,000 |
|
MMBTU |
|
$ |
3.00 / MMBTU |
| Fixed Price Physical
Sales |
|
41,381,641 |
|
MMBTU |
|
$ |
2.22 / MMBTU |
| Total |
|
48,771,641 |
|
MMBTU |
|
$ |
2.33 /
MMBTU |
| |
|
|
|
|
|
|
| Hedging Summary for
Fiscal 2022 |
|
Volume |
|
|
Average Hedge
Price |
| Oil Swaps |
|
|
|
|
|
|
|
Brent |
|
300,000 |
|
BBL |
|
$ |
60.07 / BBL |
|
NYMEX |
|
156,000 |
|
BBL |
|
$ |
51.00 / BBL |
|
Total |
|
456,000 |
|
BBL |
|
$ |
56.97 /
BBL |
| |
|
|
|
|
|
|
| Fixed Price Physical
Sales |
|
40,533,125 |
|
MMBTU |
|
$ |
2.23 / MMBTU |
| |
|
|
|
|
|
|
| Hedging Summary for
Fiscal 2023 |
|
Volume |
|
|
Average Hedge
Price |
| Fixed Price Physical
Sales |
|
37,174,130 |
|
MMBTU |
|
$ |
2.26 / MMBTU |
| |
|
|
|
|
|
|
| Hedging Summary for
Fiscal 2024 |
|
Volume |
|
|
Average Hedge
Price |
| Fixed Price Physical
Sales |
|
21,053,189 |
|
MMBTU |
|
$ |
2.25 / MMBTU |
| |
|
|
|
|
|
|
| Hedging Summary for
Fiscal 2025 |
|
Volume |
|
|
Average Hedge
Price |
| Fixed Price Physical
Sales |
|
2,293,200 |
|
MMBTU |
|
$ |
2.18 / MMBTU |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| Pipeline
& Storage Throughput - (millions of cubic feet -
MMcf) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
June 30, |
|
June 30, |
| |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
| |
|
2019 |
|
2018 |
|
(Decrease) |
|
2019 |
|
2018 |
|
(Decrease) |
|
Firm Transportation - Affiliated |
|
20,755 |
|
|
21,714 |
|
|
(959 |
) |
|
107,423 |
|
|
104,106 |
|
|
3,317 |
|
| Firm Transportation -
Non-Affiliated |
|
137,984 |
|
|
155,357 |
|
|
(17,373 |
) |
|
442,839 |
|
|
479,346 |
|
|
(36,507 |
) |
| Interruptible
Transportation |
|
309 |
|
|
1,107 |
|
|
(798 |
) |
|
1,974 |
|
|
3,153 |
|
|
(1,179 |
) |
| |
|
159,048 |
|
|
178,178 |
|
|
(19,130 |
) |
|
552,236 |
|
|
586,605 |
|
|
(34,369 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gathering Volume -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
June 30, |
|
June 30, |
| |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
| |
|
2019 |
|
2018 |
|
(Decrease) |
|
2019 |
|
2018 |
|
(Decrease) |
| Gathered Volume -
Affiliated |
|
60,745 |
|
|
51,392 |
|
|
9,353 |
|
|
169,590 |
|
|
145,928 |
|
|
23,662 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Utility Throughput -
(MMcf) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
June 30, |
|
June 30, |
| |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
| |
|
2019 |
|
2018 |
|
(Decrease) |
|
2019 |
|
2018 |
|
(Decrease) |
| Retail Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Sales |
|
9,895 |
|
|
10,052 |
|
|
(157 |
) |
|
60,581 |
|
|
56,468 |
|
|
4,113 |
|
|
Commercial Sales |
|
1,441 |
|
|
1,525 |
|
|
(84 |
) |
|
8,999 |
|
|
8,621 |
|
|
378 |
|
|
Industrial Sales |
|
151 |
|
|
128 |
|
|
23 |
|
|
639 |
|
|
559 |
|
|
80 |
|
| |
|
11,487 |
|
|
11,705 |
|
|
(218 |
) |
|
70,219 |
|
|
65,648 |
|
|
4,571 |
|
| Off-System Sales |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
141 |
|
|
(141 |
) |
| Transportation |
|
14,716 |
|
|
15,348 |
|
|
(632 |
) |
|
65,914 |
|
|
66,398 |
|
|
(484 |
) |
| |
|
26,203 |
|
|
27,053 |
|
|
(850 |
) |
|
136,133 |
|
|
132,187 |
|
|
3,946 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Energy Marketing
Volume |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
June 30, |
|
June 30, |
| |
|
|
|
|
|
Increase |
|
|
|
|
|
Increase |
| |
|
2019 |
|
2018 |
|
(Decrease) |
|
2019 |
|
2018 |
|
(Decrease) |
| Natural Gas (MMcf) |
|
7,429 |
|
|
8,322 |
|
|
(893 |
) |
|
36,039 |
|
|
36,413 |
|
|
(374 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and Adjusted EBITDA, which are non-GAAP financial
measures. The Company believes that these non-GAAP financial
measures are useful to investors because they provide an
alternative method for assessing the Company's ongoing operating
results and for comparing the Company’s financial performance to
other companies. The Company's management uses these non-GAAP
financial measures for the same purpose, and for planning and
forecasting purposes. The presentation of non-GAAP financial
measures is not meant to be a substitute for financial measures in
accordance with GAAP.
Management defines Adjusted Operating Results as
reported GAAP earnings before items impacting comparability.
The following table reconciles National Fuel's reported GAAP
earnings to Adjusted Operating Results for the three and nine
months ended June 30, 2019 and 2018:
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
June 30, |
|
June 30, |
| (in thousands except per share
amounts) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Reported GAAP Earnings |
|
$ |
63,753 |
|
|
$ |
63,025 |
|
|
$ |
257,009 |
|
|
$ |
353,527 |
|
|
Items impacting comparability |
|
|
|
|
|
|
|
|
|
Remeasurement of deferred income taxes under 2017 Tax Reform |
|
— |
|
|
— |
|
|
(5,000 |
) |
|
(107,000 |
) |
|
Mark-to-market adjustments due to hedge ineffectiveness
(E&P) |
|
(1,020 |
) |
|
339 |
|
|
(783 |
) |
|
436 |
|
|
Tax impact of mark-to-market adjustments due to hedge
ineffectiveness |
|
214 |
|
|
(83 |
) |
|
164 |
|
|
(107 |
) |
|
Unrealized (gain) loss on other investments (Corporate/All
Other) |
|
(1,420 |
) |
|
— |
|
|
1,096 |
|
|
— |
|
|
Tax impact of unrealized (gain) loss on other investments |
|
298 |
|
|
— |
|
|
(230 |
) |
|
— |
|
| Adjusted Operating
Results |
|
$ |
61,825 |
|
|
$ |
63,281 |
|
|
$ |
252,256 |
|
|
$ |
246,856 |
|
| |
|
|
|
|
|
|
|
|
| Reported GAAP Earnings
per share |
|
$ |
0.73 |
|
|
$ |
0.73 |
|
|
$ |
2.96 |
|
|
$ |
4.09 |
|
|
Items impacting comparability |
|
|
|
|
|
|
|
|
|
Remeasurement of deferred income taxes under 2017 Tax Reform |
|
— |
|
|
— |
|
|
(0.06 |
) |
|
(1.24 |
) |
|
Mark-to-market adjustments due to hedge ineffectiveness
(E&P) |
|
(0.01 |
) |
|
— |
|
|
(0.01 |
) |
|
0.01 |
|
|
Tax impact of mark-to-market adjustments due to hedge
ineffectiveness |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Unrealized (gain) loss on other investments (Corporate/All
Other) |
|
(0.02 |
) |
|
— |
|
|
0.01 |
|
|
— |
|
|
Tax impact of unrealized (gain) loss on other investments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Rounding |
|
0.01 |
|
|
— |
|
|
0.01 |
|
|
— |
|
| Adjusted Operating
Results per share |
|
$ |
0.71 |
|
|
$ |
0.73 |
|
|
$ |
2.91 |
|
|
$ |
2.86 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management defines Adjusted EBITDA as reported
GAAP earnings before the following items: interest expense,
income taxes, depreciation, depletion and amortization, other
income and deductions, impairments, and other items reflected in
operating income that impact comparability. The following
tables reconcile National Fuel's reported GAAP earnings to Adjusted
EBITDA for the three and nine months ended June 30, 2019 and
2018:
| |
|
|
|
|
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
June 30, |
|
June 30, |
| |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| (in thousands) |
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
63,753 |
|
|
$ |
63,025 |
|
|
$ |
257,009 |
|
|
$ |
353,527 |
|
|
Depreciation, Depletion and Amortization |
|
71,072 |
|
|
60,817 |
|
|
200,990 |
|
|
177,802 |
|
|
Other (Income) Deductions |
|
1,456 |
|
|
3,612 |
|
|
16,977 |
|
|
20,205 |
|
|
Interest Expense |
|
26,505 |
|
|
28,183 |
|
|
80,077 |
|
|
85,154 |
|
|
Income Taxes |
|
21,113 |
|
|
19,183 |
|
|
73,806 |
|
|
(23,825 |
) |
|
Mark-to-Market Adjustments due to Hedge Ineffectiveness |
|
(1,020 |
) |
|
339 |
|
|
(783 |
) |
|
436 |
|
| Adjusted
EBITDA |
|
$ |
182,879 |
|
|
$ |
175,159 |
|
|
$ |
628,076 |
|
|
$ |
613,299 |
|
| |
|
|
|
|
|
|
|
|
| Adjusted EBITDA by
Segment |
|
|
|
|
|
|
|
|
| Pipeline and Storage Adjusted
EBITDA |
|
$ |
37,328 |
|
|
$ |
46,072 |
|
|
$ |
126,433 |
|
|
$ |
146,274 |
|
| Gathering Adjusted EBITDA |
|
27,852 |
|
|
23,090 |
|
|
78,398 |
|
|
68,123 |
|
| Total Midstream Businesses
Adjusted EBITDA |
|
65,180 |
|
|
69,162 |
|
|
204,831 |
|
|
214,397 |
|
| Exploration and Production
Adjusted EBITDA |
|
88,175 |
|
|
77,567 |
|
|
261,650 |
|
|
236,514 |
|
| Utility Adjusted EBITDA |
|
33,163 |
|
|
30,300 |
|
|
169,421 |
|
|
165,041 |
|
| Energy Marketing Adjusted
EBITDA |
|
(2,075 |
) |
|
(295 |
) |
|
(2,176 |
) |
|
2,559 |
|
| Corporate and All Other
Adjusted EBITDA |
|
(1,564 |
) |
|
(1,575 |
) |
|
(5,650 |
) |
|
(5,212 |
) |
| Total Adjusted
EBITDA |
|
$ |
182,879 |
|
|
$ |
175,159 |
|
|
$ |
628,076 |
|
|
$ |
613,299 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY |
|
AND SUBSIDIARIES |
|
NON-GAAP FINANCIAL MEASURES |
|
SEGMENT ADJUSTED EBITDA |
| |
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
June 30, |
|
June 30, |
| (in thousands) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| Exploration and
Production Segment |
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings |
|
$ |
26,512 |
|
|
$ |
27,817 |
|
|
$ |
86,599 |
|
|
$ |
161,052 |
|
|
Depreciation, Depletion and Amortization |
|
40,055 |
|
|
31,296 |
|
|
110,643 |
|
|
90,707 |
|
|
Other (Income) Deductions |
|
(268 |
) |
|
(193 |
) |
|
(822 |
) |
|
(208 |
) |
|
Interest Expense |
|
13,850 |
|
|
13,247 |
|
|
40,561 |
|
|
40,001 |
|
|
Income Taxes |
|
9,046 |
|
|
5,061 |
|
|
25,452 |
|
|
(55,474 |
) |
|
Mark-to-Market Adjustments due to Hedge Ineffectiveness |
|
(1,020 |
) |
|
339 |
|
|
(783 |
) |
|
436 |
|
| Adjusted EBITDA |
|
$ |
88,175 |
|
|
$ |
77,567 |
|
|
$ |
261,650 |
|
|
$ |
236,514 |
|
| |
|
|
|
|
|
|
|
|
| Pipeline and Storage
Segment |
|
|
|
|
|
|
|
|
| Reported GAAP Earnings |
|
$ |
15,792 |
|
|
$ |
20,723 |
|
|
$ |
58,643 |
|
|
$ |
81,909 |
|
|
Depreciation, Depletion and Amortization |
|
11,154 |
|
|
10,888 |
|
|
33,561 |
|
|
32,322 |
|
|
Other (Income) Deductions |
|
(2,447 |
) |
|
(1,433 |
) |
|
(6,346 |
) |
|
(4,252 |
) |
|
Interest Expense |
|
7,223 |
|
|
7,667 |
|
|
22,009 |
|
|
23,418 |
|
|
Income Taxes |
|
5,606 |
|
|
8,227 |
|
|
18,566 |
|
|
12,877 |
|
| Adjusted EBITDA |
|
$ |
37,328 |
|
|
$ |
46,072 |
|
|
$ |
126,433 |
|
|
$ |
146,274 |
|
| |
|
|
|
|
|
|
|
|
| Gathering
Segment |
|
|
|
|
|
|
|
|
| Reported GAAP Earnings |
|
$ |
14,638 |
|
|
$ |
11,566 |
|
|
$ |
41,511 |
|
|
$ |
68,736 |
|
|
Depreciation, Depletion and Amortization |
|
5,485 |
|
|
4,444 |
|
|
14,836 |
|
|
12,759 |
|
|
Other (Income) Deductions |
|
(172 |
) |
|
(78 |
) |
|
(404 |
) |
|
(730 |
) |
|
Interest Expense |
|
2,288 |
|
|
2,502 |
|
|
7,010 |
|
|
7,349 |
|
|
Income Taxes |
|
5,613 |
|
|
4,656 |
|
|
15,445 |
|
|
(19,991 |
) |
| Adjusted EBITDA |
|
$ |
27,852 |
|
|
$ |
23,090 |
|
|
$ |
78,398 |
|
|
$ |
68,123 |
|
| |
|
|
|
|
|
|
|
|
| Utility
Segment |
|
|
|
|
|
|
|
|
| Reported GAAP Earnings |
|
$ |
7,362 |
|
|
$ |
3,930 |
|
|
$ |
68,600 |
|
|
$ |
58,283 |
|
|
Depreciation, Depletion and Amortization |
|
13,546 |
|
|
13,316 |
|
|
40,202 |
|
|
39,981 |
|
|
Other (Income) Deductions |
|
5,017 |
|
|
5,436 |
|
|
22,851 |
|
|
26,057 |
|
|
Interest Expense |
|
5,793 |
|
|
6,572 |
|
|
17,950 |
|
|
20,266 |
|
|
Income Taxes |
|
1,445 |
|
|
1,046 |
|
|
19,818 |
|
|
20,454 |
|
| Adjusted EBITDA |
|
$ |
33,163 |
|
|
$ |
30,300 |
|
|
$ |
169,421 |
|
|
$ |
165,041 |
|
| |
|
|
|
|
|
|
|
|
| Energy Marketing
Segment |
|
|
|
|
|
|
|
|
| Reported GAAP Earnings |
|
$ |
(1,441 |
) |
|
$ |
(190 |
) |
|
$ |
(1,198 |
) |
|
$ |
1,434 |
|
|
Depreciation, Depletion and Amortization |
|
72 |
|
|
69 |
|
|
213 |
|
|
207 |
|
|
Other (Income) Deductions |
|
(221 |
) |
|
(104 |
) |
|
(466 |
) |
|
(177 |
) |
|
Interest Expense |
|
3 |
|
|
4 |
|
|
16 |
|
|
16 |
|
|
Income Taxes |
|
(488 |
) |
|
(74 |
) |
|
(741 |
) |
|
1,079 |
|
| Adjusted EBITDA |
|
$ |
(2,075 |
) |
|
$ |
(295 |
) |
|
$ |
(2,176 |
) |
|
$ |
2,559 |
|
| |
|
|
|
|
|
|
|
|
| Corporate and All
Other |
|
|
|
|
|
|
|
|
| Reported GAAP Earnings |
|
$ |
890 |
|
|
$ |
(821 |
) |
|
$ |
2,854 |
|
|
$ |
(17,887 |
) |
|
Depreciation, Depletion and Amortization |
|
760 |
|
|
804 |
|
|
1,535 |
|
|
1,826 |
|
|
Other (Income) Deductions |
|
(453 |
) |
|
(16 |
) |
|
2,164 |
|
|
(485 |
) |
|
Interest Expense |
|
(2,652 |
) |
|
(1,809 |
) |
|
(7,469 |
) |
|
(5,896 |
) |
|
Income Taxes |
|
(109 |
) |
|
267 |
|
|
(4,734 |
) |
|
17,230 |
|
| Adjusted EBITDA |
|
$ |
(1,564 |
) |
|
$ |
(1,575 |
) |
|
$ |
(5,650 |
) |
|
$ |
(5,212 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Fuel Gas (NYSE:NFG)
Historical Stock Chart
From Jun 2024 to Jul 2024
National Fuel Gas (NYSE:NFG)
Historical Stock Chart
From Jul 2023 to Jul 2024
