National Fuel Gas Company (NFG) Q1 2026 earnings summary

Executive summary

• Adjusted EPS for Q1 FY2026 was $2.06, up 14% year-over-year, driven by higher upstream production, realized prices, and regulated utility net income from rate case outcomes and modernization investments.

• Net income for the quarter ended December 31, 2025 was $181.6 million, up from $45.0 million, with strong operational execution in Integrated Upstream and Gathering and Utility segments, and the absence of prior year non-cash impairments.

• The pending $2.62 billion acquisition of CenterPoint's Ohio gas utility business is expected to double the utility rate base and enhance regulated earnings growth, with closing anticipated in Q4 2026.

• Integrated model continues to deliver strong returns, with over 10% consolidated 3-year adjusted EPS CAGR projected for FY24–27.

• The company is optimistic about the natural gas outlook, citing record demand, growing LNG needs, and bipartisan policy support for an all-of-the-above energy approach.

Financial highlights

• Q1 FY2026 adjusted EPS was $2.06, up from $1.66 in Q1 FY2025, and adjusted EBITDA increased 29% year-over-year to $400.2 million.

• Net production reached 109 Bcf, up 12% from Q1 FY2025.

• Fiscal 2026 adjusted EPS guidance reaffirmed at $7.60–$8.10, midpoint $7.85, a 14% increase from FY2025.

• Consolidated operating revenues increased to $651.5 million from $549.5 million year-over-year.

• Dividend increased 4% in 2025, marking 55 consecutive years of increases and 123 years of payments.

Outlook and guidance

• Fiscal 2026 adjusted EPS guidance reaffirmed at $7.60–$8.10, assuming $3.75 NYMEX pricing; production guidance of 440–455 Bcf.

• Capital expenditures for FY2026 guided at $955M–$1.07B, with $560M–$610M for upstream & gathering, $210M–$250M for pipeline & storage, and $185M–$205M for utility.

• 70% of remaining FY2026 production is hedged; natural gas prices remain the largest variable.

• Capital efficiency gains of 30% since 2023 are expected to continue.

• CenterPoint Ohio acquisition is not expected to impact fiscal 2026 guidance.