WILLIAMSVILLE, N.Y., May 05, 2022 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the second quarter of its 2022 fiscal year and for the six months ended March 31, 2022.
FISCAL 2022 SECOND QUARTER SUMMARY
- GAAP net income of $167.3 million, or $1.82 per share, compared to GAAP net income of $112.4 million, or $1.23 per share, in the prior year, an increase of 48% per share.
- Adjusted operating results of $154.4 million, or $1.68 per share, an increase of 25%, compared to $1.34 per share, in the prior year (see non-GAAP reconciliation on page 2).
- Adjusted EBITDA of $337.6 million, an increase of 13%, compared to $298.4 million in the prior year (see non-GAAP reconciliation on page 24).
- Published inaugural Climate Report in March 2022, which further aligns the Company's climate-risk disclosures with the Task Force on Climate-Related Financial Disclosures framework, and evaluates the resilience of our operations to potential risks associated with climate change, including a less than 2-degree Celsius scenario.
- Achieved certification under Project Canary's TrustWell™ responsibly sourced gas program with Platinum or Gold ratings for all 121 wells included in pilot, which combined, produce approximately 300 million cubic feet per day, or approximately 30%, of the Company's Appalachian production. This accreditation is in addition to the prior certification of 100% of the Company's Appalachian production as responsibly sourced under Equitable Origin's EO100™ Standard for Responsible Energy Development.
- Company is increasing its fiscal 2022 earnings guidance to a range of $5.70 to $6.00 per share, an increase of $0.50 per share at the midpoint, excluding items impacting comparability (see Guidance Summary on page 8).
MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel had a strong second quarter, with adjusted operating results increasing 25% compared to the prior year. Led by continued Appalachian natural gas production growth and higher commodity prices at our non-regulated businesses, earnings improved across all segments. With Supply Corporation’s FM100 project in service and Seneca fully utilizing its expanded firm transportation portfolio, we have reached an inflection point where we now anticipate generating meaningful free cash flow into the future. We expect to use that free cash flow to reduce leverage on our balance sheet and pursue shareholder value-enhancing opportunities to deploy capital across the system.”
DIVESTITURE OF CALIFORNIA PROPERTIES
On May 1, 2022, the Company entered into a purchase and sale agreement to sell Seneca’s California oil and gas assets to Sentinel Peak Resources California LLC for total consideration between $280 million and $310 million, depending on oil prices. This consideration consists of $280 million in cash at closing, plus up to three annual contingent payments between calendar 2023 and 2025 that can total $30 million in aggregate. The value of these contingent payments is $1 million for each dollar that Brent crude oil prices average over $95 per barrel in each respective year, with a maximum of $10 million in any given year. The transaction has an effective date of April 1, 2022 and is expected to close on June 30, 2022, subject to customary closing conditions (including waivers of certain transfer restrictions).
Mr. Bauer added: “Our California operations and the team supporting them have been a terrific asset to Seneca over the three-plus decades that we have owned them, generating substantial free cash that supported our significant investment in the Appalachian Basin. However, given the strength of commodity prices, and the continued growth of Seneca’s Appalachian position, the timing was right to pursue a sale. Proceeds from this transaction will help accelerate our deleveraging efforts and provide us additional financial flexibility in the near-term.”
Kirkland & Ellis LLP served as the legal advisor to National Fuel. Lazard Capital served as financial advisor in connection with the transaction.
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| (in thousands except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Reported GAAP Earnings | $ | 167,328 | $ | 112,436 | $ | 299,720 | $ | 190,210 | ||||||||
| Items impacting comparability: | ||||||||||||||||
| Reduction of other post-retirement regulatory liability (Utility) | (18,533 | ) | — | (18,533 | ) | — | ||||||||||
| Tax impact of reduction of other post-retirement regulatory liability | 3,892 | — | 3,892 | — | ||||||||||||
| Impairment of oil and gas properties (E&P) | — | — | — | 76,152 | ||||||||||||
| Tax impact of impairment of oil and gas properties | — | — | — | (20,980 | ) | |||||||||||
| Gain on sale of timber properties (Corporate / All Other) | — | — | — | (51,066 | ) | |||||||||||
| Tax impact of gain on sale of timber properties | — | — | — | 14,069 | ||||||||||||
| Premium paid on early redemption of debt | — | 15,715 | — | 15,715 | ||||||||||||
| Tax impact of premium paid on early redemption of debt | — | (4,321 | ) | — | (4,321 | ) | ||||||||||
| Unrealized (gain) loss on other investments (Corporate / All Other) | 2,170 | (848 | ) | 6,659 | 450 | |||||||||||
| Tax impact of unrealized (gain) loss on other investments | (456 | ) | 178 | (1,398 | ) | (94 | ) | |||||||||
| Adjusted Operating Results | $ | 154,401 | $ | 123,160 | $ | 290,340 | $ | 220,135 | ||||||||
| Reported GAAP Earnings Per Share | $ | 1.82 | $ | 1.23 | $ | 3.26 | $ | 2.08 | ||||||||
| Items impacting comparability: | ||||||||||||||||
| Reduction of other post-retirement regulatory liability, net of tax (Utility) | (0.16 | ) | — | (0.16 | ) | — | ||||||||||
| Impairment of oil and gas properties, net of tax (E&P) | — | — | — | 0.60 | ||||||||||||
| Gain on sale of timber properties, net of tax (Corporate / All Other) | — | — | — | (0.40 | ) | |||||||||||
| Premium paid on early redemption of debt, net of tax | — | 0.12 | — | 0.12 | ||||||||||||
| Unrealized (gain) loss on other investments, net of tax (Corporate / All Other) | 0.02 | (0.01 | ) | 0.05 | — | |||||||||||
| Adjusted Operating Results Per Share | $ | 1.68 | $ | 1.34 | $ | 3.15 | $ | 2.40 | ||||||||
FISCAL 2022 GUIDANCE UPDATE
National Fuel is revising its fiscal 2022 earnings guidance range and is now projecting earnings, excluding items impacting comparability, will be within the range of $5.70 to $6.00 per share, an increase of $0.50 per share from the midpoint of the Company’s prior guidance range. This updated range reflects the results of the second quarter, along with updated assumptions for the balance of the year, which have been adjusted to exclude Seneca’s California operations as of June 30, 2022 in conjunction with the expected closing date of its divestiture.
The Company is now assuming that NYMEX natural gas prices will average $7.25 per MMBtu for the remainder of fiscal 2022, a $2.75 increase per MMBtu from the $4.50 per MMBtu assumed in the previous guidance. Additionally, the Company is now projecting that WTI oil prices will average $100.00 per Bbl for the remainder of the year, a $20.00 increase from the $80.00 per Bbl assumed in the previous guidance. For guidance purposes, the Company’s updated projections approximate the current NYMEX forward markets for natural gas and oil and consider the impact of local sales point differentials and new physical firm sales, transportation, and financial hedge contracts.
The Exploration and Production segment’s fiscal 2022 net production is now expected to be in the range of 340 to 360 Bcfe, a 2.5 Bcfe reduction at the midpoint. However, this revised range reflects the loss of approximately 4 Bcfe of production related to the sale of Seneca’s California properties. Seneca currently has firm sales contracts in place for approximately 90% of its projected remaining fiscal 2022 Appalachian production, limiting its exposure to in-basin markets. Approximately 83% of expected remaining Appalachian production is either matched by a financial hedge or was entered into at a fixed price.
As a result of the expected divestiture of its California operations, Seneca has revised its unit costs to reflect the removal of higher cost oil production, when compared to its Appalachian operations. Lease Operating Expense (“LOE”) has been revised lower, now expected to be within the range of $0.78 to $0.80 per Mcfe. Depreciation, Depletion and Amortization (“DD&A”) was revised to a range of $0.58 to $0.60 per Mcfe. Also, General & Administrative ("G&A”) expense has been reduced to a range of $0.19 to $0.20 per Mcfe, which excludes any potential transaction costs associated with sale of the California operations.
The Company’s consolidated capital expenditures are now expected to be in the range of $725 to $870 million, a $60.0 million, or 8%, increase from the midpoint of previous guidance. The $50 million increase at the midpoint in the Exploration and Production segment is largely related to a planned acceleration of completions activity this summer, including utilizing our spot crew on two Tioga County Utica pads sooner than previously forecasted. Increased production resulting from this acceleration is expected to commence later this fiscal year and ramp up in the following quarters, maximizing production for the upcoming winter. Additionally, Seneca continues to experience modest inflation above previous expectations. Lastly, the Utility segment is expecting increased spending during the upcoming construction season as part of its ongoing modernization program focused on replacing aging infrastructure and reducing our emission profile.
Additional details on the Company's updated forecast assumptions and business segment guidance for fiscal 2022 are outlined in the table on page 8.
DISCUSSION OF SECOND QUARTER RESULTS BY SEGMENT
The following earnings discussion of each operating segment for the quarter ended March 31, 2022 is summarized in a tabular form on pages 9 and 10 of this report (earnings drivers for the six months ended March 31, 2022 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 | |||||||||
| March 31, | |||||||||
| (in thousands) | 2022 | 2021 | Variance | ||||||
| GAAP Earnings | $ | 71,121 | $ | 36,822 | $ | 34,299 | |||
| Premium paid on early redemption of debt, net of tax | — | 10,710 | (10,710 | ) | |||||
| Adjusted Operating Results | $ | 71,121 | $ | 47,532 | $ | 23,589 | |||
| Adjusted EBITDA | $ | 158,450 | $ | 127,146 | $ | 31,304 | |||
Seneca’s second quarter GAAP earnings increased $34.3 million versus the prior year. Excluding a $10.7 million (after-tax) loss on the early redemption of long-term debt recorded in the prior year's second quarter, Seneca’s earnings increased $23.6 million primarily due to higher realized natural gas and crude oil prices and higher natural gas production, as well as higher other operating revenues and lower interest expense, partially offset by higher operating expenses.
Seneca produced 87.1 Bcfe during the second quarter, an increase of 1.9 Bcfe, or 2%, from the prior year. This is a result of a 2.1 Bcf increase in natural gas production primarily due to growth from Seneca's two-rig development program in Appalachia. Seneca's crude oil production in California decreased 39 MBbls, or 7%, versus the prior year due to natural production declines.
Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.60 per Mcf, an increase of $0.32 per Mcf from the prior year. This increase was primarily due to higher NYMEX prices and higher spot prices at local sales points in Pennsylvania. Seneca's average realized oil price, after the impact of hedging, was $70.45 per Bbl, an increase of $13.34 per Bbl compared to the prior year.
Seneca’s increase in other operating revenues of $4.7 million was primarily attributable to a temporary release of capacity on Leidy South through March 2022.
Lease operating and transportation (“LOE”) expense increased $5.5 million primarily due to higher steam fuel costs as a result of higher natural gas prices, along with higher well repairs and workover activity in California. Depreciation, depletion and amortization ("DD&A") expense increased $4.4 million due to higher natural gas production and a higher per unit DD&A rate, which was driven by an increase in capitalized costs in Seneca's full cost pool. Seneca's other operating expenses increased $2.1 million due primarily to higher consulting and technology-related expenses, and an increase in operating costs from additional water treatment plants acquired in September 2021. As a result of the recent increase in natural gas prices, other taxes increased $2.4 million primarily due to a higher expected Impact Fee in Pennsylvania (the Impact Fees are calculated annually based on calendar year NYMEX natural gas prices).
Excluding the premium paid on the early redemption of debt noted above, interest expense decreased $3.2 million due primarily to a decrease in outstanding principal balances associated with Seneca's long-term intercompany borrowings coupled with a lower weighted average interest rate as a result of the Company's issuance of a 2.95% coupon 10-year note in February 2021, which re-financed a 4.9% coupon 10-year note that was redeemed in March 2021.
Midstream Businesses
Pipeline and Storage Segment
The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.
| Three Months Ended | ||||||||
| March 31, | ||||||||
| (in thousands) | 2022 | 2021 | Variance | |||||
| GAAP Earnings | $ | 25,470 | $ | 24,928 | $ | 542 | ||
| Adjusted EBITDA | $ | 61,371 | $ | 58,570 | $ | 2,801 | ||
The Pipeline and Storage segment’s second quarter GAAP earnings increased $0.5 million versus the prior year primarily due to an increase in operating revenues, partially offset by higher operation and maintenance ("O&M") expense and higher DD&A expense. The increase in operating revenues of $8.7 million was primarily attributable to higher transportation revenues from new demand charges for service on the expansion component of Supply Corporation's FM100 Project, which was placed in service in December 2021. O&M expense increased $4.7 million primarily due to the non-recurrence of a $3.9 million favorable adjustment to the reserve for project development costs recorded in last year's second quarter. Higher pipeline integrity and vehicle fuel costs also contributed to the increase in O&M expense. The increase in DD&A expense of $1.6 million was primarily attributable to incremental depreciation expense from the FM100 Project.
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 primarily delivers Seneca’s gross Appalachian production to the interstate pipeline system.
| Three Months Ended | |||||||||
| March 31, | |||||||||
| (in thousands) | 2022 | 2021 | Variance | ||||||
| GAAP Earnings | $ | 22,092 | $ | 20,700 | $ | 1,392 | |||
| Premium paid on early redemption of debt, net of tax | — | 684 | (684 | ) | |||||
| Adjusted Operating Results | $ | 22,092 | $ | 21,384 | $ | 708 | |||
| Adjusted EBITDA | $ | 43,056 | $ | 41,424 | $ | 1,632 | |||
The Gathering segment’s second quarter GAAP earnings increased $1.4 million versus the prior year. Excluding a $0.7 million (after-tax) loss on the early redemption of long-term debt recorded in the prior year's second quarter, the Gathering segment's earnings increased $0.7 million. The earnings increase was primarily driven by higher operating revenues, which was partially offset by higher O&M expense. Operating revenues increased $2.3 million, or 5%, primarily driven by an 8.6 Bcf increase in gathered volumes for a non-affiliated natural gas producer in Appalachia. The increase in O&M expense of $0.7 million was primarily due to higher compressor station operating and preventative maintenance activity during the quarter.
Downstream Business
Utility Segment
The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| (in thousands) | 2022 | 2021 | Variance | |||||||
| GAAP Earnings | $ | 53,048 | $ | 32,044 | $ | 21,004 | ||||
| Reduction of other post-retirement regulatory liability, net of tax | (14,641 | ) | — | (14,641 | ) | |||||
| Adjusted Operating Results | $ | 38,407 | $ | 32,044 | $ | 6,363 | ||||
| Adjusted EBITDA | $ | 77,529 | $ | 73,885 | $ | 3,644 | ||||
The Utility segment’s second quarter GAAP earnings increased $21.0 million versus the prior year. In February 2022, the Pennsylvania Public Utilities Commission concluded a regulatory proceeding that addressed Distribution’s recovery of other post-employment benefit (“OPEB”) expenses. As a result of that proceeding, Distribution recorded an adjustment to an OPEB-related regulatory liability that benefitted earnings by $18.5 million ($14.6 million after-tax) and agreed to reduce its base rates in Pennsylvania to eliminate the recovery of OPEB expenses effective October 1, 2021.
Excluding the impact of the reduction in the OPEB regulatory liability, the Utility segment's second quarter earnings increased $6.4 million primarily due to higher customer margin (operating revenues less purchased gas sold) and a decrease in non-service post-retirement benefit costs recorded in other income (deductions). The increase in customer margin was due primarily to increased customer usage, largely attributable to colder weather in Distribution's Pennsylvania territory (Pennsylvania was 8% colder on average than last year), combined with higher revenues from the Company's system modernization tracking mechanism in its New York service territory. These factors were partially offset by the aforementioned reduction in base rates in Pennsylvania. The impact of weather variations on earnings in Distribution's New York service territory is largely mitigated by that jurisdiction's weather normalization clause. With the elimination of OPEB expenses in customer rates, there was a decrease in non-service post-retirement benefit costs recorded in other income (deductions). Distribution’s Pennsylvania service territory recognized OPEB income during the second quarter of fiscal 2022 whereas in the prior year’s second quarter it recognized OPEB expenses to match against the OPEB amounts collected in base rates.
Corporate and All Other
The Company’s operations that are included in Corporate and All Other generated a combined net loss of $4.4 million in the current year second quarter, which was a $2.3 million higher than the combined net loss of $2.1 million in the prior-year second quarter. The increase in net loss was primarily driven by unrealized losses on investment securities recognized in the current quarter compared to unrealized gains on investment securities in the prior-year second quarter.
EARNINGS TELECONFERENCE
The Company will host a conference call on Friday, May 6, 2022, at 11 a.m. Eastern Time to discuss this announcement. Pre-registration is required to access the teleconference by phone in a listen-only mode by following this link: http://www.directeventreg.com/registration/event/4564187. To access the webcast, visit the Events Calendar under the News & Events page on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay of the conference call will be available approximately two hours following the teleconference at the same website link and by phone at 416-621-4642 or 800-585-8367 using conference ID number “4564187”. Both the webcast and conference call replay will be available until the close of business on Friday, May 13, 2022.
National Fuel is an integrated energy company reporting financial results for four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. Additional information about National Fuel is available at www.nationalfuelgas.com.
Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; the length and severity of the ongoing COVID-19 pandemic, including its impacts across our businesses on demand, operations, global supply chains and liquidity; changes in economic conditions, including inflationary pressures and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; changes in the price of natural gas or oil; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, including disruptions due to the COVID-19 pandemic, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; the Company's ability to complete planned strategic transactions; the Company's ability to successfully integrate acquired assets and achieve expected cost synergies; 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; the impact of information technology disruptions, cybersecurity or data security breaches; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas 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; 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; negotiations with the collective bargaining units representing the Company's workforce, including potential work stoppages during negotiations; 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; 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 page 2, the Company is revising its earnings guidance for fiscal 2022. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below.
The revised earnings guidance range does not include the impact of certain items that impacted the comparability of earnings during the six months ended March 31, 2022, including: (1) the after-tax reduction of an other post-retirement regulatory liability, which increased earnings by $0.16 per share; and (2) after-tax unrealized losses on other investments, which reduced earnings by $0.05 per share. While the Company expects to record certain adjustments to unrealized gain or loss on investments during the six months ending September 30, 2022, 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 2022 Guidance | Previous FY 2022 Guidance | ||||
| Consolidated Earnings per Share, excluding items impacting comparability | $5.70 to $6.00 | $5.20 to $5.50 | |||
| Consolidated Effective Tax Rate | ~ 25-26% | ~ 25-26% | |||
| Capital Expenditures(Millions) | |||||
| Exploration and Production | $475 - $550 | $425 - $500 | |||
| Pipeline and Storage | $100 - $150 | $100 - $150 | |||
| Gathering | $50 - $60 | $50 - $60 | |||
| Utility | $100 - $110 | $90 - $100 | |||
| Consolidated Capital Expenditures | $725 - $870 | $665 - $810 | |||
| Exploration & Production Segment Guidance* | |||||
| Commodity Price Assumptions | |||||
| NYMEX natural gas price | $7.25 /MMBtu | $4.50 /MMBtu | |||
| Appalachian basin spot price | $6.25 /MMBtu | $3.65 /MMBtu | |||
| NYMEX (WTI) crude oil price | $100.00 /Bbl | $80.00 /Bbl | |||
| California oil price premium (% of WTI) | 99% | 97% | |||
| Production (Bcfe) | 340 to 360 | 340 to 365 | |||
| E&P Operating Costs($/Mcfe) | |||||
| LOE | $0.78 - $0.80 | $0.81 - $0.84 | |||
| G&A | $0.19 - $0.20 | $0.19 - $0.21 | |||
| DD&A | $0.58 - $0.60 | $0.59 - $0.62 | |||
| Other Business Segment Guidance(Millions) | |||||
| Gathering Segment Revenues | $205 - $225 | $200 - $225 | |||
| Pipeline and Storage Segment Revenues | $360 - $380 | $360 - $380 | |||
* Commodity price assumptions are for the remaining 6 months of the fiscal year.
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS | |||||||||||||||||||||||
| QUARTER ENDED MARCH 31, 2022 | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Upstream | Midstream | Downstream | |||||||||||||||||||||
| Exploration & | Pipeline & | Corporate / | |||||||||||||||||||||
| (Thousands of Dollars) | Production | Storage | Gathering | Utility | All Other | Consolidated* | |||||||||||||||||
| Second quarter 2021 GAAP earnings | $ | 36,822 | $ | 24,928 | $ | 20,700 | $ | 32,044 | $ | (2,058 | ) | $ | 112,436 | ||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Premium paid on early redemption of debt | 14,772 | 943 | 15,715 | ||||||||||||||||||||
| Tax impact of premium paid on early redemption of debt | (4,062 | ) | (259 | ) | (4,321 | ) | |||||||||||||||||
| Unrealized (gain) loss on other investments | (848 | ) | (848 | ) | |||||||||||||||||||
| Tax impact of unrealized (gain) loss on other investments | 178 | 178 | |||||||||||||||||||||
| Second quarter 2021 adjusted operating results | 47,532 | 24,928 | 21,384 | 32,044 | (2,728 | ) | 123,160 | ||||||||||||||||
| Drivers of adjusted operating results** | |||||||||||||||||||||||
| Upstream Revenues | |||||||||||||||||||||||
| Higher (lower) natural gas production | 3,758 | 3,758 | |||||||||||||||||||||
| Higher (lower) crude oil production | (1,755 | ) | (1,755 | ) | |||||||||||||||||||
| Higher (lower) realized natural gas prices, after hedging | 21,487 | 21,487 | |||||||||||||||||||||
| Higher (lower) realized crude oil prices, after hedging | 5,508 | 5,508 | |||||||||||||||||||||
| Higher (lower) other operating revenues | 3,713 | 3,713 | |||||||||||||||||||||
| Midstream Revenues | |||||||||||||||||||||||
| Higher (lower) operating revenues | 6,257 | 1,850 | 8,107 | ||||||||||||||||||||
| Downstream Margins*** | |||||||||||||||||||||||
| Impact of usage and weather | 3,014 | 3,014 | |||||||||||||||||||||
| Impact of new rates | (3,055 | ) | (3,055 | ) | |||||||||||||||||||
| System modernization tracker revenues | 1,594 | 1,594 | |||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | (4,377 | ) | (4,377 | ) | |||||||||||||||||||
| Lower (higher) operating expenses | (1,690 | ) | (3,729 | ) | (567 | ) | (5,986 | ) | |||||||||||||||
| Lower (higher) property, franchise and other taxes | (1,913 | ) | (315 | ) | (2,228 | ) | |||||||||||||||||
| Lower (higher) depreciation / depletion | (3,482 | ) | (1,236 | ) | (4,718 | ) | |||||||||||||||||
| Other Income (Expense) | |||||||||||||||||||||||
| (Higher) lower other deductions | 5,197 | (968 | ) | 4,229 | |||||||||||||||||||
| (Higher) lower interest expense | 2,563 | 2,563 | |||||||||||||||||||||
| Income Taxes | |||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | (307 | ) | (171 | ) | (508 | ) | (1,164 | ) | 1,201 | (949 | ) | ||||||||||||
| All other / rounding | 84 | (264 | ) | (67 | ) | 777 | (194 | ) | 336 | ||||||||||||||
| Second quarter 2022 adjusted operating results | 71,121 | 25,470 | 22,092 | 38,407 | (2,689 | ) | 154,401 | ||||||||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Reduction of other post-retirement regulatory liability | 18,533 | 18,533 | |||||||||||||||||||||
| Tax impact of reduction of other post-retirement regulatory liability | (3,892 | ) | (3,892 | ) | |||||||||||||||||||
| Unrealized gain (loss) on other investments | (2,170 | ) | (2,170 | ) | |||||||||||||||||||
| Tax impact of unrealized gain (loss) on other investments | 456 | 456 | |||||||||||||||||||||
| Second quarter 2022 GAAP earnings | $ | 71,121 | $ | 25,470 | $ | 22,092 | $ | 53,048 | $ | (4,403 | ) | $ | 167,328 | ||||||||||
| * Amounts do not reflect intercompany eliminations. | |||||||||||||||||||||||
| ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate. | |||||||||||||||||||||||
| *** Downstream margin defined as operating revenues less purchased gas expense. | |||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE | |||||||||||||||||||||||
| QUARTER ENDED MARCH 31, 2022 | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Upstream | Midstream | Downstream | |||||||||||||||||||||
| Exploration & | Pipeline & | Corporate / | |||||||||||||||||||||
| Production | Storage | Gathering | Utility | All Other | Consolidated* | ||||||||||||||||||
| Second quarter 2021 GAAP earnings per share | $ | 0.40 | $ | 0.27 | $ | 0.23 | $ | 0.35 | $ | (0.02 | ) | $ | 1.23 | ||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Premium paid on early redemption of debt, net of tax | 0.12 | — | 0.12 | ||||||||||||||||||||
| Unrealized (gain) loss on other investments, net of tax | (0.01 | ) | (0.01 | ) | |||||||||||||||||||
| Second quarter 2021 adjusted operating results per share | 0.52 | 0.27 | 0.23 | 0.35 | (0.03 | ) | 1.34 | ||||||||||||||||
| Drivers of adjusted operating results** | |||||||||||||||||||||||
| Upstream Revenues | |||||||||||||||||||||||
| Higher (lower) natural gas production | 0.04 | 0.04 | |||||||||||||||||||||
| Higher (lower) crude oil production | (0.02 | ) | (0.02 | ) | |||||||||||||||||||
| Higher (lower) realized natural gas prices, after hedging | 0.23 | 0.23 | |||||||||||||||||||||
| Higher (lower) realized crude oil prices, after hedging | 0.06 | 0.06 | |||||||||||||||||||||
| Higher (lower) other operating revenues | 0.04 | 0.04 | |||||||||||||||||||||
| Midstream Revenues | |||||||||||||||||||||||
| Higher (lower) operating revenues | 0.07 | 0.02 | 0.09 | ||||||||||||||||||||
| Downstream Margins*** | |||||||||||||||||||||||
| Impact of usage and weather | 0.03 | 0.03 | |||||||||||||||||||||
| Impact of new rates | (0.03 | ) | (0.03 | ) | |||||||||||||||||||
| System modernization tracker revenues | 0.02 | 0.02 | |||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | (0.05 | ) | (0.05 | ) | |||||||||||||||||||
| Lower (higher) operating expenses | (0.02 | ) | (0.04 | ) | (0.01 | ) | (0.07 | ) | |||||||||||||||
| Lower (higher) property, franchise and other taxes | (0.02 | ) | — | (0.02 | ) | ||||||||||||||||||
| Lower (higher) depreciation / depletion | (0.04 | ) | (0.01 | ) | (0.05 | ) | |||||||||||||||||
| Other Income (Expense) | |||||||||||||||||||||||
| (Higher) lower other deductions | 0.06 | (0.01 | ) | 0.05 | |||||||||||||||||||
| (Higher) lower interest expense | 0.03 | 0.03 | |||||||||||||||||||||
| Income Taxes | |||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | — | — | (0.01 | ) | (0.01 | ) | 0.01 | (0.01 | ) | ||||||||||||||
| All other / rounding | — | (0.01 | ) | 0.01 | — | — | — | ||||||||||||||||
| Second quarter 2022 adjusted operating results per share | 0.77 | 0.28 | 0.24 | 0.42 | (0.03 | ) | 1.68 | ||||||||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Reduction of other post-retirement regulatory liability, net of tax | 0.16 | 0.16 | |||||||||||||||||||||
| Unrealized gain (loss) on other investments, net of tax | (0.02 | ) | (0.02 | ) | |||||||||||||||||||
| Second quarter 2022 GAAP earnings per share | $ | 0.77 | $ | 0.28 | $ | 0.24 | $ | 0.58 | $ | (0.05 | ) | $ | 1.82 | ||||||||||
| * Amounts do not reflect intercompany eliminations. | |||||||||||||||||||||||
| ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate. | |||||||||||||||||||||||
| *** Downstream margin defined as operating revenues less purchased gas expense. | |||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS | |||||||||||||||||||||||
| SIX MONTHS ENDED MARCH 31, 2022 | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Upstream | Midstream | Downstream | |||||||||||||||||||||
| Exploration & | Pipeline & | Corporate / | |||||||||||||||||||||
| (Thousands of Dollars) | Production | Storage | Gathering | Utility | All Other | Consolidated* | |||||||||||||||||
| Six months ended March 31, 2021 GAAP earnings | $ | 7,199 | $ | 49,112 | $ | 41,250 | $ | 55,081 | $ | 37,568 | $ | 190,210 | |||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Impairment of oil and gas properties | 76,152 | 76,152 | |||||||||||||||||||||
| Tax impact of impairment of oil and gas properties | (20,980 | ) | (20,980 | ) | |||||||||||||||||||
| Gain on sale of timber properties | (51,066 | ) | (51,066 | ) | |||||||||||||||||||
| Tax impact of gain on sale of timber properties | 14,069 | 14,069 | |||||||||||||||||||||
| Premium paid on early redemption of debt | 14,772 | 943 | 15,715 | ||||||||||||||||||||
| Tax impact of premium paid on early redemption of debt | (4,062 | ) | (259 | ) | (4,321 | ) | |||||||||||||||||
| Unrealized (gain) loss on other investments | 450 | 450 | |||||||||||||||||||||
| Tax impact of unrealized (gain) loss on other investments | (94 | ) | (94 | ) | |||||||||||||||||||
| Six months ended March 31, 2021 adjusted operating results | 73,081 | 49,112 | 41,934 | 55,081 | 927 | 220,135 | |||||||||||||||||
| Drivers of adjusted operating results** | |||||||||||||||||||||||
| Upstream Revenues | |||||||||||||||||||||||
| Higher (lower) natural gas production | 13,570 | 13,570 | |||||||||||||||||||||
| Higher (lower) crude oil production | (2,303 | ) | (2,303 | ) | |||||||||||||||||||
| Higher (lower) realized natural gas prices, after hedging | 45,877 | 45,877 | |||||||||||||||||||||
| Higher (lower) realized crude oil prices, after hedging | 11,664 | 11,664 | |||||||||||||||||||||
| Higher (lower) other operating revenues | 5,618 | 5,618 | |||||||||||||||||||||
| Midstream Revenues | |||||||||||||||||||||||
| Higher (lower) operating revenues | 6,375 | 5,972 | 12,347 | ||||||||||||||||||||
| Downstream Margins*** | |||||||||||||||||||||||
| Impact of usage and weather | 2,962 | 2,962 | |||||||||||||||||||||
| Impact of new rates | (4,840 | ) | (4,840 | ) | |||||||||||||||||||
| System modernization tracker revenues | 2,375 | 2,375 | |||||||||||||||||||||
| Regulatory revenue adjustments | (804 | ) | (804 | ) | |||||||||||||||||||
| Higher (lower) energy marketing margins | 1,298 | 1,298 | |||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | (7,186 | ) | (7,186 | ) | |||||||||||||||||||
| Lower (higher) operating expenses | (3,035 | ) | (4,519 | ) | (1,346 | ) | (1,913 | ) | (10,813 | ) | |||||||||||||
| Lower (higher) property, franchise and other taxes | (2,931 | ) | (424 | ) | (3,355 | ) | |||||||||||||||||
| Lower (higher) depreciation / depletion | (6,781 | ) | (1,499 | ) | (594 | ) | 311 | (8,563 | ) | ||||||||||||||
| Other Income (Expense) | |||||||||||||||||||||||
| (Higher) lower other deductions | 949 | 6,891 | 7,840 | ||||||||||||||||||||
| (Higher) lower interest expense | 5,216 | 421 | (869 | ) | 4,768 | ||||||||||||||||||
| Income Taxes | |||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 565 | 222 | (703 | ) | 855 | (1,226 | ) | (287 | ) | ||||||||||||||
| All other / rounding | 135 | — | (34 | ) | (70 | ) | 6 | 37 | |||||||||||||||
| Six months ended March 31, 2022 adjusted operating results | 133,490 | 50,637 | 45,229 | 60,537 | 447 | 290,340 | |||||||||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Reduction of other post-retirement regulatory liability | 18,533 | 18,533 | |||||||||||||||||||||
| Tax impact of reduction of other post-retirement regulatory liability | (3,892 | ) | (3,892 | ) | |||||||||||||||||||
| Unrealized gain (loss) on other investments | (6,659 | ) | (6,659 | ) | |||||||||||||||||||
| Tax impact of unrealized gain (loss) on other investments | 1,398 | 1,398 | |||||||||||||||||||||
| Six months ended March 31, 2022 GAAP earnings | $ | 133,490 | $ | 50,637 | $ | 45,229 | $ | 75,178 | $ | (4,814 | ) | $ | 299,720 | ||||||||||
| * Amounts do not reflect intercompany eliminations. | |||||||||||||||||||||||
| ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate. | |||||||||||||||||||||||
| *** Downstream margin defined as operating revenues less purchased gas expense. | |||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE | |||||||||||||||||||||||
| SIX MONTHS ENDED MARCH 31, 2022 | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Upstream | Midstream | Downstream | |||||||||||||||||||||
| Exploration & | Pipeline & | Corporate / | |||||||||||||||||||||
| Production | Storage | Gathering | Utility | All Other | Consolidated* | ||||||||||||||||||
| Six months ended March 31, 2021 GAAP earnings per share | $ | 0.08 | $ | 0.54 | $ | 0.45 | $ | 0.60 | $ | 0.41 | $ | 2.08 | |||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Impairment of oil and gas properties, net of tax | 0.60 | 0.60 | |||||||||||||||||||||
| Gain on sale of timber properties, net of tax | (0.40 | ) | (0.40 | ) | |||||||||||||||||||
| Premium paid on early redemption of debt, net of tax | 0.12 | — | 0.12 | ||||||||||||||||||||
| Unrealized (gain) loss on other investments, net of tax | — | — | |||||||||||||||||||||
| Six months ended March 31, 2021 adjusted operating results per share | 0.80 | 0.54 | 0.45 | 0.60 | 0.01 | 2.40 | |||||||||||||||||
| Drivers of adjusted operating results** | |||||||||||||||||||||||
| Upstream Revenues | |||||||||||||||||||||||
| Higher (lower) natural gas production | 0.15 | 0.15 | |||||||||||||||||||||
| Higher (lower) crude oil production | (0.03 | ) | (0.03 | ) | |||||||||||||||||||
| Higher (lower) realized natural gas prices, after hedging | 0.50 | 0.50 | |||||||||||||||||||||
| Higher (lower) realized crude oil prices, after hedging | 0.13 | 0.13 | |||||||||||||||||||||
| Higher (lower) other operating revenues | 0.06 | 0.06 | |||||||||||||||||||||
| Midstream Revenues | |||||||||||||||||||||||
| Higher (lower) operating revenues | 0.07 | 0.06 | 0.13 | ||||||||||||||||||||
| Downstream Margins*** | |||||||||||||||||||||||
| Impact of usage and weather | 0.03 | 0.03 | |||||||||||||||||||||
| Impact of new rates | (0.05 | ) | (0.05 | ) | |||||||||||||||||||
| System modernization tracker revenues | 0.03 | 0.03 | |||||||||||||||||||||
| Regulatory revenue adjustments | (0.01 | ) | (0.01 | ) | |||||||||||||||||||
| Higher (lower) energy marketing margins | 0.01 | 0.01 | |||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | (0.08 | ) | (0.08 | ) | |||||||||||||||||||
| Lower (higher) operating expenses | (0.03 | ) | (0.05 | ) | (0.01 | ) | (0.02 | ) | (0.11 | ) | |||||||||||||
| Lower (higher) property, franchise and other taxes | (0.03 | ) | — | (0.03 | ) | ||||||||||||||||||
| Lower (higher) depreciation / depletion | (0.07 | ) | (0.02 | ) | (0.01 | ) | — | (0.10 | ) | ||||||||||||||
| Other Income (Expense) | |||||||||||||||||||||||
| (Higher) lower other deductions | 0.01 | 0.07 | 0.08 | ||||||||||||||||||||
| (Higher) lower interest expense | 0.06 | — | (0.01 | ) | 0.05 | ||||||||||||||||||
| Income Taxes | |||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 0.01 | — | (0.01 | ) | 0.01 | (0.01 | ) | — | |||||||||||||||
| All other / rounding | (0.02 | ) | — | 0.01 | — | — | (0.01 | ) | |||||||||||||||
| Six months ended March 31, 2022 adjusted operating results per share | 1.45 | 0.55 | 0.49 | 0.66 | — | 3.15 | |||||||||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Reduction of other post-retirement regulatory liability, net of tax | 0.16 | 0.16 | |||||||||||||||||||||
| Unrealized gain (loss) on other investments, net of tax | (0.05 | ) | (0.05 | ) | |||||||||||||||||||
| Six months ended March 31, 2022 GAAP earnings per share | $ | 1.45 | $ | 0.55 | $ | 0.49 | $ | 0.82 | $ | (0.05 | ) | $ | 3.26 | ||||||||||
| * Amounts do not reflect intercompany eliminations. | |||||||||||||||||||||||
| ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate. | |||||||||||||||||||||||
| *** Downstream margin defined as operating revenues less purchased gas expense. | |||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||
| (Thousands of Dollars, except per share amounts) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| March 31, | March 31, | ||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| SUMMARY OF OPERATIONS | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Operating Revenues: | |||||||||||||||
| Utility and Energy Marketing Revenues | $ | 369,092 | $ | 270,849 | $ | 605,776 | $ | 460,315 | |||||||
| Exploration and Production and Other Revenues | 261,676 | 220,281 | 505,957 | 412,316 | |||||||||||
| Pipeline and Storage and Gathering Revenues | 70,952 | 59,985 | 136,544 | 119,644 | |||||||||||
| 701,720 | 551,115 | 1,248,277 | 992,275 | ||||||||||||
| Operating Expenses: | |||||||||||||||
| Purchased Gas | 199,592 | 106,661 | 301,219 | 158,280 | |||||||||||
| Operation and Maintenance: | |||||||||||||||
| Utility and Energy Marketing | 53,476 | 52,058 | 100,120 | 96,944 | |||||||||||
| Exploration and Production and Other | 49,806 | 41,895 | 95,425 | 83,922 | |||||||||||
| Pipeline and Storage and Gathering | 33,518 | 28,133 | 63,446 | 56,231 | |||||||||||
| Property, Franchise and Other Taxes | 27,717 | 23,987 | 52,219 | 46,768 | |||||||||||
| Depreciation, Depletion and Amortization | 91,245 | 84,342 | 179,823 | 167,462 | |||||||||||
| Impairment of Oil and Gas Producing Properties | — | — | — | 76,152 | |||||||||||
| 455,354 | 337,076 | 792,252 | 685,759 | ||||||||||||
| Gain on Sale of Timber Properties | — | — | — | 51,066 | |||||||||||
| Operating Income | 246,366 | 214,039 | 456,025 | 357,582 | |||||||||||
| Other Income (Expense): | |||||||||||||||
| Other Income (Deductions) | 10,018 | (10,875 | ) | 8,940 | (13,051 | ) | |||||||||
| Interest Expense on Long-Term Debt | (30,079 | ) | (48,820 | ) | (60,209 | ) | (81,076 | ) | |||||||
| Other Interest Expense | (1,519 | ) | (1,698 | ) | (2,680 | ) | (3,618 | ) | |||||||
| Income Before Income Taxes | 224,786 | 152,646 | 402,076 | 259,837 | |||||||||||
| Income Tax Expense | 57,458 | 40,210 | 102,356 | 69,627 | |||||||||||
| Net Income Available for Common Stock | $ | 167,328 | $ | 112,436 | $ | 299,720 | $ | 190,210 | |||||||
| Earnings Per Common Share | |||||||||||||||
| Basic | $ | 1.83 | $ | 1.23 | $ | 3.28 | $ | 2.09 | |||||||
| Diluted | $ | 1.82 | $ | 1.23 | $ | 3.26 | $ | 2.08 | |||||||
| Weighted Average Common Shares: | |||||||||||||||
| Used in Basic Calculation | 91,444,638 | 91,163,291 | 91,354,488 | 91,084,620 | |||||||||||
| Used in Diluted Calculation | 92,064,711 | 91,645,679 | 92,047,467 | 91,581,918 | |||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||
| AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| March 31, | September 30, | ||||||
| (Thousands of Dollars) | 2022 | 2021 | |||||
| ASSETS | |||||||
| Property, Plant and Equipment | $ | 13,457,342 | $ | 13,103,639 | |||
| Less - Accumulated Depreciation, Depletion and Amortization | 6,882,961 | 6,719,356 | |||||
| Net Property, Plant and Equipment | 6,574,381 | 6,384,283 | |||||
| Current Assets: | |||||||
| Cash and Temporary Cash Investments | 52,569 | 31,528 | |||||
| Hedging Collateral Deposits | 102,370 | 88,610 | |||||
| Receivables - Net | 339,421 | 205,294 | |||||
| Unbilled Revenue | 49,551 | 17,000 | |||||
| Gas Stored Underground | 6,302 | 33,669 | |||||
| Materials, Supplies and Emission Allowances | 48,887 | 53,560 | |||||
| Unrecovered Purchased Gas Costs | 3,751 | 33,128 | |||||
| Other Current Assets | 68,265 | 59,660 | |||||
| Total Current Assets | 671,116 | 522,449 | |||||
| Other Assets: | |||||||
| Recoverable Future Taxes | 123,709 | 121,992 | |||||
| Unamortized Debt Expense | 9,735 | 10,589 | |||||
| Other Regulatory Assets | 57,693 | 60,145 | |||||
| Deferred Charges | 81,646 | 59,939 | |||||
| Other Investments | 103,164 | 149,632 | |||||
| Goodwill | 5,476 | 5,476 | |||||
| Prepaid Pension and Post-Retirement Benefit Costs | 178,102 | 149,151 | |||||
| Fair Value of Derivative Financial Instruments | 1 | — | |||||
| Other | — | 1,169 | |||||
| Total Other Assets | 559,526 | 558,093 | |||||
| Total Assets | $ | 7,805,023 | $ | 7,464,825 | |||
| CAPITALIZATION AND LIABILITIES | |||||||
| Capitalization: | |||||||
| Comprehensive Shareholders' Equity | |||||||
| Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and | |||||||
| Outstanding - 91,449,226 Shares and 91,181,549 Shares, Respectively | $ | 91,449 | $ | 91,182 | |||
| Paid in Capital | 1,018,784 | 1,017,446 | |||||
| Earnings Reinvested in the Business | 1,407,683 | 1,191,175 | |||||
| Accumulated Other Comprehensive Loss | (654,254 | ) | (513,597 | ) | |||
| Total Comprehensive Shareholders' Equity | 1,863,662 | 1,786,206 | |||||
| Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs | 2,081,529 | 2,628,687 | |||||
| Total Capitalization | 3,945,191 | 4,414,893 | |||||
| Current and Accrued Liabilities: | |||||||
| Notes Payable to Banks and Commercial Paper | 218,000 | 158,500 | |||||
| Current Portion of Long-Term Debt | 549,000 | — | |||||
| Accounts Payable | 135,775 | 171,655 | |||||
| Amounts Payable to Customers | 3,422 | 21 | |||||
| Dividends Payable | 41,608 | 41,487 | |||||
| Interest Payable on Long-Term Debt | 17,376 | 17,376 | |||||
| Customer Advances | — | 17,223 | |||||
| Customer Security Deposits | 20,766 | 19,292 | |||||
| Other Accruals and Current Liabilities | 218,139 | 194,169 | |||||
| Fair Value of Derivative Financial Instruments | 802,076 | 616,410 | |||||
| Total Current and Accrued Liabilities | 2,006,162 | 1,236,133 | |||||
| Other Liabilities: | |||||||
| Deferred Income Taxes | 709,598 | 660,420 | |||||
| Taxes Refundable to Customers | 348,480 | 354,089 | |||||
| Cost of Removal Regulatory Liability | 252,471 | 245,636 | |||||
| Other Regulatory Liabilities | 196,589 | 200,643 | |||||
| Pension and Other Post-Retirement Liabilities | 4,756 | 7,526 | |||||
| Asset Retirement Obligations | 207,047 | 209,639 | |||||
| Other Liabilities | 134,729 | 135,846 | |||||
| Total Other Liabilities | 1,853,670 | 1,813,799 | |||||
| Commitments and Contingencies | — | — | |||||
| Total Capitalization and Liabilities | $ | 7,805,023 | $ | 7,464,825 | |||
| NATIONAL FUEL GAS COMPANY | ||||||||
| AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Unaudited) | ||||||||
| Six Months Ended | ||||||||
| March 31, | ||||||||
| (Thousands of Dollars) | 2022 | 2021 | ||||||
| Operating Activities: | ||||||||
| Net Income Available for Common Stock | $ | 299,720 | $ | 190,210 | ||||
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||
| Gain on Sale of Timber Properties | — | (51,066 | ) | |||||
| Impairment of Oil and Gas Producing Properties | — | 76,152 | ||||||
| Depreciation, Depletion and Amortization | 179,823 | 167,462 | ||||||
| Deferred Income Taxes | 94,212 | 61,408 | ||||||
| Premium Paid on Early Redemption of Debt | — | 15,715 | ||||||
| Stock-Based Compensation | 10,631 | 8,657 | ||||||
| Reduction of Other Post-Retirement Regulatory Liability | (18,533 | ) | — | |||||
| Other | 14,494 | 6,742 | ||||||
| Change in: | ||||||||
| Receivables and Unbilled Revenue | (166,584 | ) | (101,159 | ) | ||||
| Gas Stored Underground and Materials, Supplies and Emission Allowances | 32,040 | 27,258 | ||||||
| Unrecovered Purchased Gas Costs | 29,377 | (479 | ) | |||||
| Other Current Assets | (8,605 | ) | (8,447 | ) | ||||
| Accounts Payable | 2,006 | 8,613 | ||||||
| Amounts Payable to Customers | 3,401 | 8,980 | ||||||
| Customer Advances | (17,223 | ) | (15,319 | ) | ||||
| Customer Security Deposits | 1,474 | 2,304 | ||||||
| Other Accruals and Current Liabilities | 11,164 | 9,058 | ||||||
| Other Assets | (32,659 | ) | 11,039 | |||||
| Other Liabilities | (9,119 | ) | 5 | |||||
| Net Cash Provided by Operating Activities | $ | 425,619 | $ | 417,133 | ||||
| Investing Activities: | ||||||||
| Capital Expenditures | $ | (415,415 | ) | $ | (338,867 | ) | ||
| Net Proceeds from Sale of Oil and Gas Producing Properties | 13,525 | — | ||||||
| Net Proceeds from Sale of Timber Properties | — | 104,582 | ||||||
| Sale of Fixed Income Mutual Fund Shares in Grantor Trust | 30,000 | — | ||||||
| Other | 13,689 | 12,095 | ||||||
| Net Cash Used in Investing Activities | $ | (358,201 | ) | $ | (222,190 | ) | ||
| Financing Activities: | ||||||||
| Changes in Notes Payable to Banks and Commercial Paper | $ | 59,500 | $ | (30,000 | ) | |||
| Reduction of Long-Term Debt | — | (515,715 | ) | |||||
| Dividends Paid on Common Stock | (83,091 | ) | (81,035 | ) | ||||
| Net Proceeds From Issuance of Long-Term Debt | — | 495,267 | ||||||
| Net Repurchases of Common Stock | (9,026 | ) | (3,534 | ) | ||||
| Net Cash Used in Financing Activities | $ | (32,617 | ) | $ | (135,017 | ) | ||
| Net Increase in Cash, Cash Equivalents, and Restricted Cash | 34,801 | 59,926 | ||||||
| Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 120,138 | 20,541 | ||||||
| Cash, Cash Equivalents, and Restricted Cash at March 31 | $ | 154,939 | $ | 80,467 | ||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | ||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||
| UPSTREAM BUSINESS | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | March 31, | March 31, | ||||||||||||||||||
| EXPLORATION AND PRODUCTION SEGMENT | 2022 | 2021 | Variance | 2022 | 2021 | Variance | ||||||||||||||
| Total Operating Revenues | $ | 261,593 | $ | 220,187 | $ | 41,406 | $ | 505,791 | $ | 411,582 | $ | 94,209 | ||||||||
| Operating Expenses: | ||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||
| General and Administrative Expense | 18,798 | 17,899 | 899 | 36,553 | 34,852 | 1,701 | ||||||||||||||
| Lease Operating and Transportation Expense | 72,548 | 67,008 | 5,540 | 141,684 | 132,588 | 9,096 | ||||||||||||||
| All Other Operation and Maintenance Expense | 4,756 | 3,515 | 1,241 | 9,328 | 7,187 | 2,141 | ||||||||||||||
| Property, Franchise and Other Taxes | 7,041 | 4,619 | 2,422 | 12,775 | 9,065 | 3,710 | ||||||||||||||
| Depreciation, Depletion and Amortization | 50,547 | 46,139 | 4,408 | 100,054 | 91,471 | 8,583 | ||||||||||||||
| Impairment of Oil and Gas Producing Properties | — | — | — | — | 76,152 | (76,152 | ) | |||||||||||||
| 153,690 | 139,180 | 14,510 | 300,394 | 351,315 | (50,921 | ) | ||||||||||||||
| Operating Income | 107,903 | 81,007 | 26,896 | 205,397 | 60,267 | 145,130 | ||||||||||||||
| Other Income (Expense): | ||||||||||||||||||||
| Non-Service Pension and Post-Retirement Benefit Costs | (186 | ) | (286 | ) | 100 | (372 | ) | (570 | ) | 198 | ||||||||||
| Interest and Other Income | 75 | 67 | 8 | 131 | 158 | (27 | ) | |||||||||||||
| Interest Expense on Long-Term Debt | — | (15,119 | ) | 15,119 | — | (15,119 | ) | 15,119 | ||||||||||||
| Interest Expense | (12,206 | ) | (15,103 | ) | 2,897 | (24,338 | ) | (30,594 | ) | 6,256 | ||||||||||
| Income Before Income Taxes | 95,586 | 50,566 | 45,020 | 180,818 | 14,142 | 166,676 | ||||||||||||||
| Income Tax Expense | 24,465 | 13,744 | 10,721 | 47,328 | 6,943 | 40,385 | ||||||||||||||
| Net Income | $ | 71,121 | $ | 36,822 | $ | 34,299 | $ | 133,490 | $ | 7,199 | $ | 126,291 | ||||||||
| Net Income Per Share (Diluted) | $ | 0.77 | $ | 0.40 | $ | 0.37 | $ | 1.45 | $ | 0.08 | $ | 1.37 | ||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| MIDSTREAM BUSINESSES | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | March 31, | March 31, | |||||||||||||||||||
| PIPELINE AND STORAGE SEGMENT | 2022 | 2021 | Variance | 2022 | 2021 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 67,795 | $ | 59,314 | $ | 8,481 | $ | 129,342 | $ | 118,623 | $ | 10,719 | |||||||||
| Intersegment Revenues | 27,602 | 27,390 | 212 | 54,405 | 55,846 | (1,441 | ) | ||||||||||||||
| Total Operating Revenues | 95,397 | 86,704 | 8,693 | 183,747 | 174,469 | 9,278 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | 989 | 216 | 773 | 1,437 | 229 | 1,208 | |||||||||||||||
| Operation and Maintenance | 24,438 | 19,718 | 4,720 | 46,611 | 40,891 | 5,720 | |||||||||||||||
| Property, Franchise and Other Taxes | 8,599 | 8,200 | 399 | 17,180 | 16,643 | 537 | |||||||||||||||
| Depreciation, Depletion and Amortization | 17,294 | 15,729 | 1,565 | 33,095 | 31,197 | 1,898 | |||||||||||||||
| 51,320 | 43,863 | 7,457 | 98,323 | 88,960 | 9,363 | ||||||||||||||||
| Operating Income | 44,077 | 42,841 | 1,236 | 85,424 | 85,509 | (85 | ) | ||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Non-Service Pension and Post-Retirement Benefit Credit | 767 | 125 | 642 | 1,534 | 250 | 1,284 | |||||||||||||||
| Interest and Other Income | 192 | 939 | (747 | ) | 1,595 | 1,795 | (200 | ) | |||||||||||||
| Interest Expense | (10,618 | ) | (10,552 | ) | (66 | ) | (20,750 | ) | (21,283 | ) | 533 | ||||||||||
| Income Before Income Taxes | 34,418 | 33,353 | 1,065 | 67,803 | 66,271 | 1,532 | |||||||||||||||
| Income Tax Expense | 8,948 | 8,425 | 523 | 17,166 | 17,159 | 7 | |||||||||||||||
| Net Income | $ | 25,470 | $ | 24,928 | $ | 542 | $ | 50,637 | $ | 49,112 | $ | 1,525 | |||||||||
| Net Income Per Share (Diluted) | $ | 0.28 | $ | 0.27 | $ | 0.01 | $ | 0.55 | $ | 0.54 | $ | 0.01 | |||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||||
| GATHERING SEGMENT | 2022 | 2021 | Variance | 2022 | 2021 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 3,157 | $ | 671 | $ | 2,486 | $ | 7,202 | $ | 1,021 | $ | 6,181 | |||||||||
| Intersegment Revenues | 49,447 | 49,591 | (144 | ) | 97,627 | 96,249 | 1,378 | ||||||||||||||
| Total Operating Revenues | 52,604 | 50,262 | 2,342 | 104,829 | 97,270 | 7,559 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Operation and Maintenance | 9,551 | 8,833 | 718 | 17,739 | 16,035 | 1,704 | |||||||||||||||
| Property, Franchise and Other Taxes | (3 | ) | 5 | (8 | ) | 2 | 18 | (16 | ) | ||||||||||||
| Depreciation, Depletion and Amortization | 8,362 | 8,096 | 266 | 16,753 | 16,001 | 752 | |||||||||||||||
| 17,910 | 16,934 | 976 | 34,494 | 32,054 | 2,440 | ||||||||||||||||
| Operating Income | 34,694 | 33,328 | 1,366 | 70,335 | 65,216 | 5,119 | |||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Non-Service Pension and Post-Retirement Benefit Costs | (56 | ) | (68 | ) | 12 | (112 | ) | (135 | ) | 23 | |||||||||||
| Interest and Other Income | 18 | 9 | 9 | 27 | 243 | (216 | ) | ||||||||||||||
| Interest Expense on Long-Term Debt | — | (965 | ) | 965 | — | (965 | ) | 965 | |||||||||||||
| Interest Expense | (4,071 | ) | (4,201 | ) | 130 | (8,219 | ) | (8,332 | ) | 113 | |||||||||||
| Income Before Income Taxes | 30,585 | 28,103 | 2,482 | 62,031 | 56,027 | 6,004 | |||||||||||||||
| Income Tax Expense | 8,493 | 7,403 | 1,090 | 16,802 | 14,777 | 2,025 | |||||||||||||||
| Net Income | $ | 22,092 | $ | 20,700 | $ | 1,392 | $ | 45,229 | $ | 41,250 | $ | 3,979 | |||||||||
| Net Income Per Share (Diluted) | $ | 0.24 | $ | 0.23 | $ | 0.01 | $ | 0.49 | $ | 0.45 | $ | 0.04 | |||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| DOWNSTREAM BUSINESS | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | March 31, | March 31, | |||||||||||||||||||
| UTILITY SEGMENT | 2022 | 2021 | Variance | 2022 | 2021 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 369,092 | $ | 270,784 | $ | 98,308 | $ | 605,776 | $ | 459,684 | $ | 146,092 | |||||||||
| Intersegment Revenues | 110 | 97 | 13 | 184 | 197 | (13 | ) | ||||||||||||||
| Total Operating Revenues | 369,202 | 270,881 | 98,321 | 605,960 | 459,881 | 146,079 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | 225,469 | 133,132 | 92,337 | 352,680 | 210,164 | 142,516 | |||||||||||||||
| Operation and Maintenance | 54,249 | 52,864 | 1,385 | 101,710 | 98,116 | 3,594 | |||||||||||||||
| Property, Franchise and Other Taxes | 11,955 | 11,000 | 955 | 22,013 | 20,748 | 1,265 | |||||||||||||||
| Depreciation, Depletion and Amortization | 14,997 | 14,311 | 686 | 29,827 | 28,305 | 1,522 | |||||||||||||||
| 306,670 | 211,307 | 95,363 | 506,230 | 357,333 | 148,897 | ||||||||||||||||
| Operating Income | 62,532 | 59,574 | 2,958 | 99,730 | 102,548 | (2,818 | ) | ||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Non-Service Pension and Post-Retirement Benefit Credit (Costs) | 13,023 | (12,243 | ) | 25,266 | 8,697 | (18,927 | ) | 27,624 | |||||||||||||
| Interest and Other Income | 289 | 443 | (154 | ) | 813 | 1,181 | (368 | ) | |||||||||||||
| Interest Expense | (5,504 | ) | (5,495 | ) | (9 | ) | (11,028 | ) | (10,947 | ) | (81 | ) | |||||||||
| Income Before Income Taxes | 70,340 | 42,279 | 28,061 | 98,212 | 73,855 | 24,357 | |||||||||||||||
| Income Tax Expense | 17,292 | 10,235 | 7,057 | 23,034 | 18,774 | 4,260 | |||||||||||||||
| Net Income | $ | 53,048 | $ | 32,044 | $ | 21,004 | $ | 75,178 | $ | 55,081 | $ | 20,097 | |||||||||
| Net Income Per Share (Diluted) | $ | 0.58 | $ | 0.35 | $ | 0.23 | $ | 0.82 | $ | 0.60 | $ | 0.22 | |||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | March 31, | March 31, | |||||||||||||||||||
| ALL OTHER | 2022 | 2021 | Variance | 2022 | 2021 | Variance | |||||||||||||||
| Revenues from External Customers | $ | — | $ | 64 | $ | (64 | ) | $ | — | $ | 1,175 | $ | (1,175 | ) | |||||||
| Intersegment Revenues | — | 1 | (1 | ) | 6 | 20 | (14 | ) | |||||||||||||
| Total Operating Revenues | — | 65 | (65 | ) | 6 | 1,195 | (1,189 | ) | |||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | — | 6 | (6 | ) | 6 | 2,293 | (2,287 | ) | |||||||||||||
| Operation and Maintenance | — | (81 | ) | 81 | 5 | 683 | (678 | ) | |||||||||||||
| Property, Franchise and Other Taxes | — | 38 | (38 | ) | — | 47 | (47 | ) | |||||||||||||
| Depreciation, Depletion and Amortization | — | 9 | (9 | ) | — | 394 | (394 | ) | |||||||||||||
| — | (28 | ) | 28 | 11 | 3,417 | (3,406 | ) | ||||||||||||||
| Gain on Sale of Timber Properties | — | — | — | — | 51,066 | (51,066 | ) | ||||||||||||||
| Operating Income (Loss) | — | 93 | (93 | ) | (5 | ) | 48,844 | (48,849 | ) | ||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Non-Service Pension and Post-Retirement Benefit Costs | — | (3 | ) | 3 | — | (7 | ) | 7 | |||||||||||||
| Interest and Other Income | — | 41 | (41 | ) | 2 | 225 | (223 | ) | |||||||||||||
| Income (Loss) before Income Taxes | — | 131 | (131 | ) | (3 | ) | 49,062 | (49,065 | ) | ||||||||||||
| Income Tax Expense | — | 1,114 | (1,114 | ) | 4 | 12,485 | (12,481 | ) | |||||||||||||
| Net Income (Loss) | $ | — | $ | (983 | ) | $ | 983 | $ | (7 | ) | $ | 36,577 | $ | (36,584 | ) | ||||||
| Net Income (Loss) Per Share (Diluted) | $ | — | $ | (0.01 | ) | $ | 0.01 | $ | — | $ | 0.40 | $ | (0.40 | ) | |||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||||
| CORPORATE | 2022 | 2021 | Variance | 2022 | 2021 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 83 | $ | 95 | $ | (12 | ) | $ | 166 | $ | 190 | $ | (24 | ) | |||||||
| Intersegment Revenues | 1,082 | 1,027 | 55 | 2,165 | 1,691 | 474 | |||||||||||||||
| Total Operating Revenues | 1,165 | 1,122 | 43 | 2,331 | 1,881 | 450 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Operation and Maintenance | 3,835 | 3,743 | 92 | 6,844 | 6,342 | 502 | |||||||||||||||
| Property, Franchise and Other Taxes | 125 | 125 | — | 249 | 247 | 2 | |||||||||||||||
| Depreciation, Depletion and Amortization | 45 | 58 | (13 | ) | 94 | 94 | — | ||||||||||||||
| 4,005 | 3,926 | 79 | 7,187 | 6,683 | 504 | ||||||||||||||||
| Operating Loss | (2,840 | ) | (2,804 | ) | (36 | ) | (4,856 | ) | (4,802 | ) | (54 | ) | |||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Non-Service Pension and Post-Retirement Benefit Costs | (1,017 | ) | (922 | ) | (95 | ) | (2,034 | ) | (1,846 | ) | (188 | ) | |||||||||
| Interest and Other Income | 28,740 | 35,317 | (6,577 | ) | 61,918 | 74,296 | (12,378 | ) | |||||||||||||
| Interest Expense on Long-Term Debt | (30,079 | ) | (32,736 | ) | 2,657 | (60,209 | ) | (64,992 | ) | 4,783 | |||||||||||
| Other Interest Expense | (947 | ) | (641 | ) | (306 | ) | (1,604 | ) | (2,176 | ) | 572 | ||||||||||
| Income (Loss) before Income Taxes | (6,143 | ) | (1,786 | ) | (4,357 | ) | (6,785 | ) | 480 | (7,265 | ) | ||||||||||
| Income Tax Expense (Benefit) | (1,740 | ) | (711 | ) | (1,029 | ) | (1,978 | ) | (511 | ) | (1,467 | ) | |||||||||
| Net Income (Loss) | $ | (4,403 | ) | $ | (1,075 | ) | $ | (3,328 | ) | $ | (4,807 | ) | $ | 991 | $ | (5,798 | ) | ||||
| Net Income (Loss) Per Share (Diluted) | $ | (0.05 | ) | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | 0.01 | $ | (0.06 | ) | ||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||||
| INTERSEGMENT ELIMINATIONS | 2022 | 2021 | Variance | 2022 | 2021 | Variance | |||||||||||||||
| Intersegment Revenues | $ | (78,241 | ) | $ | (78,106 | ) | $ | (135 | ) | $ | (154,387 | ) | $ | (154,003 | ) | $ | (384 | ) | |||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | (26,866 | ) | (26,693 | ) | (173 | ) | (52,904 | ) | (54,406 | ) | 1,502 | ||||||||||
| Operation and Maintenance | (51,375 | ) | (51,413 | ) | 38 | (101,483 | ) | (99,597 | ) | (1,886 | ) | ||||||||||
| (78,241 | ) | (78,106 | ) | (135 | ) | (154,387 | ) | (154,003 | ) | (384 | ) | ||||||||||
| Operating Income | — | — | — | — | — | — | |||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest and Other Deductions | (31,827 | ) | (34,294 | ) | 2,467 | (63,259 | ) | (69,714 | ) | 6,455 | |||||||||||
| Interest Expense | 31,827 | 34,294 | (2,467 | ) | 63,259 | 69,714 | (6,455 | ) | |||||||||||||
| Net Income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| Net Income Per Share (Diluted) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||
| SEGMENT INFORMATION (Continued) | |||||||||||||||||||
| (Thousands of Dollars) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||
| Increase | Increase | ||||||||||||||||||
| 2022 | 2021 | (Decrease) | 2022 | 2021 | (Decrease) | ||||||||||||||
| Capital Expenditures: | |||||||||||||||||||
| Exploration and Production | $ | 134,748 | (1) | $ | 88,271 | (3) | $ | 46,477 | $ | 273,960 | (1)(2) | $ | 169,610 | (3)(4) | $ | 104,350 | |||
| Pipeline and Storage | 14,404 | (1) | 47,970 | (3) | (33,566 | ) | 38,465 | (1)(2) | 91,693 | (3)(4) | (53,228 | ) | |||||||
| Gathering | 11,055 | (1) | 11,099 | (3) | (44 | ) | 19,975 | (1)(2) | 19,419 | (3)(4) | 556 | ||||||||
| Utility | 23,925 | (1) | 24,480 | (3) | (555 | ) | 43,308 | (1)(2) | 41,825 | (3)(4) | 1,483 | ||||||||
| Total Reportable Segments | 184,132 | 171,820 | 12,312 | 375,708 | 322,547 | 53,161 | |||||||||||||
| All Other | — | — | — | — | — | — | |||||||||||||
| Corporate | 271 | 50 | 221 | 496 | 89 | 407 | |||||||||||||
| Eliminations | — | (373 | ) | 373 | — | (219 | ) | 219 | |||||||||||
| Total Capital Expenditures | $ | 184,403 | $ | 171,497 | $ | 12,906 | $ | 376,204 | $ | 322,417 | $ | 53,787 | |||||||
| (1) | Capital expenditures for the quarter and six months ended March 31, 2022, include accounts payable and accrued liabilities related to capital expenditures of $52.5 million, $3.5 million, $3.4 million, and $4.1 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2022, since they represent non-cash investing activities at that date. | |
| (2) | Capital expenditures for the six months ended March 31, 2022, exclude capital expenditures of $47.9 million, $39.4 million, $4.8 million and $10.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2021 and paid during the six months ended March 31, 2022. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2021, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2022. | |
| (3) | Capital expenditures for the quarter and six months ended March 31, 2021, include accounts payable and accrued liabilities related to capital expenditures of $44.5 million, $16.0 million, $2.9 million, and $4.7 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2021, since they represent non-cash investing activities at that date. | |
| (4) | Capital expenditures for the six months ended March 31, 2021, exclude capital expenditures of $45.8 million, $17.3 million, $13.5 million and $10.7 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, 2020 and paid during the six months ended March 31, 2021. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2020, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2021. |
| DEGREE DAYS | |||||||||||
| Percent Colder | |||||||||||
| (Warmer) Than: | |||||||||||
| Three Months Ended March 31, | Normal | 2022 | 2021 | Normal(1) | Last Year(1) | ||||||
| Buffalo, NY | 3,290 | 3,161 | 2,978 | (3.9 | ) | 6.1 | |||||
| Erie, PA | 3,108 | 2,973 | 2,750 | (4.3 | ) | 8.1 | |||||
| Six Months Ended March 31, | |||||||||||
| Buffalo, NY | 5,543 | 4,865 | 4,899 | (12.2 | ) | (0.7 | ) | ||||
| Erie, PA | 5,152 | 4,533 | 4,447 | (12.0 | ) | 1.9 | |||||
(1) Percents compare actual 2022 degree days to normal degree days and actual 2022 degree days to actual 2021 degree days.
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||||
| EXPLORATION AND PRODUCTION INFORMATION | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| March 31, | March 31, | |||||||||||||||||||
| Increase | Increase | |||||||||||||||||||
| 2022 | 2021 | (Decrease) | 2022 | 2021 | (Decrease) | |||||||||||||||
| Gas Production/Prices: | ||||||||||||||||||||
| Production (MMcf) | ||||||||||||||||||||
| Appalachia | 83,565 | 81,446 | 2,119 | 164,954 | 157,115 | 7,839 | ||||||||||||||
| West Coast | 397 | 428 | (31 | ) | 805 | 869 | (64 | ) | ||||||||||||
| Total Production | 83,962 | 81,874 | 2,088 | 165,759 | 157,984 | 7,775 | ||||||||||||||
| Average Prices (Per Mcf) | ||||||||||||||||||||
| Appalachia | $ | 3.97 | $ | 2.28 | $ | 1.69 | $ | 4.18 | $ | 2.23 | $ | 1.95 | ||||||||
| West Coast | 10.04 | 7.14 | 2.90 | 9.91 | 6.07 | 3.84 | ||||||||||||||
| Weighted Average | 4.00 | 2.31 | 1.69 | 4.21 | 2.25 | 1.96 | ||||||||||||||
| Weighted Average after Hedging | 2.60 | 2.28 | 0.32 | 2.56 | 2.21 | 0.35 | ||||||||||||||
| Oil Production/Prices: | ||||||||||||||||||||
| Production (Thousands of Barrels) | ||||||||||||||||||||
| Appalachia | 1 | 1 | — | 1 | 1 | — | ||||||||||||||
| West Coast | 522 | 561 | (39 | ) | 1,070 | 1,124 | (54 | ) | ||||||||||||
| Total Production | 523 | 562 | (39 | ) | 1,071 | 1,125 | (54 | ) | ||||||||||||
| Average Prices (Per Barrel) | ||||||||||||||||||||
| Appalachia | $ | 78.32 | $ | 48.47 | $ | 29.85 | $ | 75.38 | $ | 43.83 | $ | 31.55 | ||||||||
| West Coast | 94.95 | 59.83 | 35.12 | 85.93 | 51.64 | 34.29 | ||||||||||||||
| Weighted Average | 94.93 | 59.82 | 35.11 | 85.93 | 51.63 | 34.30 | ||||||||||||||
| Weighted Average after Hedging | 70.45 | 57.11 | 13.34 | 67.30 | 53.50 | 13.80 | ||||||||||||||
| Total Production (MMcfe) | 87,100 | 85,246 | 1,854 | 172,185 | 164,734 | 7,451 | ||||||||||||||
| Selected Operating Performance Statistics: | ||||||||||||||||||||
| General & Administrative Expense per Mcfe(1) | $ | 0.22 | $ | 0.21 | $ | 0.01 | $ | 0.21 | $ | 0.21 | $ | — | ||||||||
| Lease Operating and Transportation Expense per Mcfe(1)(2) | $ | 0.83 | $ | 0.79 | $ | 0.04 | $ | 0.82 | $ | 0.80 | $ | 0.02 | ||||||||
| Depreciation, Depletion & Amortization per Mcfe(1) | $ | 0.58 | $ | 0.54 | $ | 0.04 | $ | 0.58 | $ | 0.56 | $ | 0.02 | ||||||||
| (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 $0.55 and $0.57 per Mcfe for the three months ended March 31, 2022 and March 31, 2021, respectively. Amounts include transportation expense of $0.56 and $0.57 per Mcfe for the six months ended March 31, 2022 and March 31, 2021, respectively. |
| NATIONAL FUEL GAS COMPANY | ||||||||
| AND SUBSIDIARIES | ||||||||
| EXPLORATION AND PRODUCTION INFORMATION | ||||||||
| Hedging Summary for Remaining Six Months of Fiscal 2022 | Volume | Average Hedge Price | ||||||
| Oil Swaps | ||||||||
| Brent | 570,000 | BBL | $ | 58.28 / BBL | ||||
| NYMEX | 78,000 | BBL | $ | 51.00 / BBL | ||||
| Total | 648,000 | BBL | $ | 57.40 / BBL | ||||
| Gas Swaps | ||||||||
| NYMEX | 107,160,000 | MMBTU | $ | 2.76 / MMBTU | ||||
| Fixed Price Physical Sales | 38,061,033 | MMBTU | $ | 2.65 / MMBTU | ||||
| Total | 145,221,033 | MMBTU | $ | 2.73 / MMBTU | ||||
| Hedging Summary for Fiscal 2023 | Volume | Average Hedge Price | ||||||
| Oil Swaps | ||||||||
| Brent | 480,000 | BBL | $ | 58.48 / BBL | ||||
| Total | 480,000 | BBL | $ | 58.48 / BBL | ||||
| Gas Swaps | ||||||||
| NYMEX | 116,200,000 | MMBTU | $ | 2.79 / MMBTU | ||||
| No Cost Collars | 70,400,000 | MMBTU | $ | 3.11 / MMBTU (Floor) / $3.64 / MMBTU (Ceiling) | ||||
| Fixed Price Physical Sales | 72,896,598 | MMBTU | $ | 2.45 / MMBTU | ||||
| Total | 259,496,598 | MMBTU | ||||||
| Hedging Summary for Fiscal 2024 | Volume | Average Hedge Price | ||||||
| Oil Swaps | ||||||||
| Brent | 120,000 | BBL | $ | 50.30 / BBL | ||||
| Total | 120,000 | BBL | $ | 50.30 / BBL | ||||
| Gas Swaps | ||||||||
| NYMEX | 61,080,000 | MMBTU | $ | 2.72 / MMBTU | ||||
| No Cost Collars | 59,200,000 | MMBTU | $ | 3.20 / MMBTU (Floor) / $3.78 / MMBTU (Ceiling) | ||||
| Fixed Price Physical Sales | 59,807,855 | MMBTU | $ | 2.22 / MMBTU | ||||
| Total | 180,087,855 | MMBTU | ||||||
| Hedging Summary for Fiscal 2025 | Volume | Average Hedge Price | ||||||
| Oil Swaps | ||||||||
| Brent | 120,000 | BBL | $ | 50.32 / BBL | ||||
| Total | 120,000 | BBL | $ | 50.32 / BBL | ||||
| Gas Swaps | ||||||||
| NYMEX | 23,660,000 | MMBTU | $ | 2.74 / MMBTU | ||||
| No Cost Collars | 22,400,000 | MMBTU | $ | 3.24 / MMBTU (Floor) / $3.65 / MMBTU (Ceiling) | ||||
| Fixed Price Physical Sales | 56,366,847 | MMBTU | $ | 2.21 / MMBTU | ||||
| Total | 102,426,847 | MMBTU | ||||||
| Hedging Summary for Fiscal 2026 | Volume | Average Hedge Price | ||||||
| Gas Swaps | ||||||||
| NYMEX | 1,720,000 | MMBTU | $ | 2.75 / MMBTU | ||||
| No Cost Collars | 19,200,000 | MMBTU | $ | 3.25 / MMBTU (Floor) / $3.61 / MMBTU (Ceiling) | ||||
| Fixed Price Physical Sales | 58,883,559 | MMBTU | $ | 2.30 / MMBTU | ||||
| Total | 79,803,559 | MMBTU | ||||||
| Hedging Summary for Fiscal 2027 | Volume | Average Hedge Price | ||||||
| No Cost Collars | 1,600,000 | MMBTU | $ | 3.25 / MMBTU (Floor) / $3.61 / MMBTU (Ceiling) | ||||
| Fixed Price Physical Sales | 43,434,257 | MMBTU | $ | 2.35 / MMBTU | ||||
| Total | 45,034,257 | MMBTU | ||||||
| Hedging Summary for Fiscal 2028 | Volume | Average Hedge Price | ||||||
| Fixed Price Physical Sales | 11,850,451 | MMBTU | $ | 2.48 / MMBTU | ||||
| Hedging Summary for Fiscal 2029 | Volume | Average Hedge Price | ||||||
| Fixed Price Physical Sales | 766,673 | MMBTU | $ | 2.54 / MMBTU | ||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||
| AND SUBSIDIARIES | ||||||||||||
| Pipeline & Storage Throughput - (millions of cubic feet - MMcf) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| March 31, | March 31, | |||||||||||
| Increase | Increase | |||||||||||
| 2022 | 2021 | (Decrease) | 2022 | 2021 | (Decrease) | |||||||
| Firm Transportation - Affiliated | 46,459 | 43,124 | 3,335 | 74,656 | 73,088 | 1,568 | ||||||
| Firm Transportation - Non-Affiliated | 185,571 | 166,372 | 19,199 | 350,967 | 339,436 | 11,531 | ||||||
| Interruptible Transportation | 752 | 435 | 317 | 1,520 | 1,024 | 496 | ||||||
| 232,782 | 209,931 | 22,851 | 427,143 | 413,548 | 13,595 | |||||||
| Gathering Volume - (MMcf) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| March 31, | March 31, | |||||||||||
| Increase | Increase | |||||||||||
| 2022 | 2021 | (Decrease) | 2022 | 2021 | (Decrease) | |||||||
| Gathered Volume | 103,736 | 95,121 | 8,615 | 204,829 | 183,466 | 21,363 | ||||||
| Utility Throughput - (MMcf) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| March 31, | March 31, | |||||||||||
| Increase | Increase | |||||||||||
| 2022 | 2021 | (Decrease) | 2022 | 2021 | (Decrease) | |||||||
| Retail Sales: | ||||||||||||
| Residential Sales | 32,026 | 29,052 | 2,974 | 49,521 | 47,465 | 2,056 | ||||||
| Commercial Sales | 4,923 | 4,309 | 614 | 7,466 | 6,836 | 630 | ||||||
| Industrial Sales | 268 | 223 | 45 | 392 | 376 | 16 | ||||||
| 37,217 | 33,584 | 3,633 | 57,379 | 54,677 | 2,702 | |||||||
| Transportation | 25,745 | 24,584 | 1,161 | 43,338 | 42,518 | 820 | ||||||
| 62,962 | 58,168 | 4,794 | 100,717 | 97,195 | 3,522 | |||||||
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding Adjusted Operating Results, Adjusted EBITDA and free cash flow, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company's ongoing operating results or liquidity and for comparing the Company’s financial performance to other companies. The Company's management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP.
Management defines Adjusted Operating Results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel's reported GAAP earnings to Adjusted Operating Results for the six months ended March 31, 2022 and 2021:
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| (in thousands except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Reported GAAP Earnings | $ | 167,328 | $ | 112,436 | $ | 299,720 | $ | 190,210 | ||||||||
| Items impacting comparability: | ||||||||||||||||
| Reduction of other post-retirement regulatory liability (Utility) | (18,533 | ) | — | (18,533 | ) | — | ||||||||||
| Tax impact of reduction of other post-retirement regulatory liability | 3,892 | — | 3,892 | — | ||||||||||||
| Impairment of oil and gas properties (E&P) | — | — | — | 76,152 | ||||||||||||
| Tax impact of impairment of oil and gas properties | — | — | — | (20,980 | ) | |||||||||||
| Gain on sale of timber properties (Corporate/All Other) | — | — | — | (51,066 | ) | |||||||||||
| Tax impact of gain on sale of timber properties | — | — | — | 14,069 | ||||||||||||
| Premium paid on early redemption of debt | — | 15,715 | — | 15,715 | ||||||||||||
| Tax impact of premium paid on early redemption of debt | — | (4,321 | ) | — | (4,321 | ) | ||||||||||
| Unrealized (gain) loss on other investments (Corporate/All Other) | 2,170 | (848 | ) | 6,659 | 450 | |||||||||||
| Tax impact of unrealized (gain) loss on other investments | (456 | ) | 178 | (1,398 | ) | (94 | ) | |||||||||
| Adjusted Operating Results | $ | 154,401 | $ | 123,160 | $ | 290,340 | $ | 220,135 | ||||||||
| Reported GAAP Earnings Per Share | $ | 1.82 | $ | 1.23 | $ | 3.26 | $ | 2.08 | ||||||||
| Items impacting comparability: | ||||||||||||||||
| Reduction of other post-retirement regulatory liability, net of tax (Utility) | (0.16 | ) | — | (0.16 | ) | — | ||||||||||
| Impairment of oil and gas properties, net of tax (E&P) | — | — | — | 0.60 | ||||||||||||
| Gain on sale of timber properties, net of tax (Corporate/All Other) | — | — | — | (0.40 | ) | |||||||||||
| Premium paid on early redemption of debt, net of tax | — | 0.12 | — | 0.12 | ||||||||||||
| Unrealized (gain) loss on other investments, net of tax (Corporate/All Other) | 0.02 | (0.01 | ) | 0.05 | — | |||||||||||
| Adjusted Operating Results Per Share | $ | 1.68 | $ | 1.34 | $ | 3.15 | $ | 2.40 | ||||||||
Management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel's reported GAAP earnings to Adjusted EBITDA for the three and six months ended March 31, 2022 and 2021:
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Reported GAAP Earnings | $ | 167,328 | $ | 112,436 | $ | 299,720 | $ | 190,210 | ||||||||
| Depreciation, Depletion and Amortization | 91,245 | 84,342 | 179,823 | 167,462 | ||||||||||||
| Other (Income) Deductions | (10,018 | ) | 10,875 | (8,940 | ) | 13,051 | ||||||||||
| Interest Expense | 31,598 | 50,518 | 62,889 | 84,694 | ||||||||||||
| Income Taxes | 57,458 | 40,210 | 102,356 | 69,627 | ||||||||||||
| Impairment of Oil and Gas Producing Properties | — | — | — | 76,152 | ||||||||||||
| Gain on Sale of Timber Properties | — | — | — | (51,066 | ) | |||||||||||
| Adjusted EBITDA | $ | 337,611 | $ | 298,381 | $ | 635,848 | $ | 550,130 | ||||||||
| Adjusted EBITDA by Segment | ||||||||||||||||
| Pipeline and Storage Adjusted EBITDA | $ | 61,371 | $ | 58,570 | $ | 118,519 | $ | 116,706 | ||||||||
| Gathering Adjusted EBITDA | 43,056 | 41,424 | 87,088 | 81,217 | ||||||||||||
| Total Midstream Businesses Adjusted EBITDA | 104,427 | 99,994 | 205,607 | 197,923 | ||||||||||||
| Exploration and Production Adjusted EBITDA | 158,450 | 127,146 | 305,451 | 227,890 | ||||||||||||
| Utility Adjusted EBITDA | 77,529 | 73,885 | 129,557 | 130,853 | ||||||||||||
| Corporate and All Other Adjusted EBITDA | (2,795 | ) | (2,644 | ) | (4,767 | ) | (6,536 | ) | ||||||||
| Total Adjusted EBITDA | $ | 337,611 | $ | 298,381 | $ | 635,848 | $ | 550,130 | ||||||||
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Exploration and Production Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | 71,121 | $ | 36,822 | $ | 133,490 | $ | 7,199 | ||||||||
| Depreciation, Depletion and Amortization | 50,547 | 46,139 | 100,054 | 91,471 | ||||||||||||
| Other (Income) Deductions | 111 | 219 | 241 | 412 | ||||||||||||
| Interest Expense | 12,206 | 30,222 | 24,338 | 45,713 | ||||||||||||
| Income Taxes | 24,465 | 13,744 | 47,328 | 6,943 | ||||||||||||
| Impairment of Oil and Gas Producing Properties | — | — | — | 76,152 | ||||||||||||
| Adjusted EBITDA | $ | 158,450 | $ | 127,146 | $ | 305,451 | $ | 227,890 | ||||||||
| Pipeline and Storage Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | 25,470 | $ | 24,928 | $ | 50,637 | $ | 49,112 | ||||||||
| Depreciation, Depletion and Amortization | 17,294 | 15,729 | 33,095 | 31,197 | ||||||||||||
| Other (Income) Deductions | (959 | ) | (1,064 | ) | (3,129 | ) | (2,045 | ) | ||||||||
| Interest Expense | 10,618 | 10,552 | 20,750 | 21,283 | ||||||||||||
| Income Taxes | 8,948 | 8,425 | 17,166 | 17,159 | ||||||||||||
| Adjusted EBITDA | $ | 61,371 | $ | 58,570 | $ | 118,519 | $ | 116,706 | ||||||||
| Gathering Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | 22,092 | $ | 20,700 | $ | 45,229 | $ | 41,250 | ||||||||
| Depreciation, Depletion and Amortization | 8,362 | 8,096 | 16,753 | 16,001 | ||||||||||||
| Other (Income) Deductions | 38 | 59 | 85 | |||||||||||||