National Fuel Gas Company (NFG) Q3 2024 earnings summary

Executive summary

• Q3 and Q2 fiscal 2024 results reflected operational success in regulated segments but were impacted by a $200.7 million non-cash impairment in the E&P segment, resulting in a net loss of $54.2 million for Q2 and a GAAP loss of $54 million for Q3.

• Preliminary fiscal 2025 guidance is $5.75–$6.25 per share, a 19%–20% increase over 2024 at the midpoint, with a multi-year outlook targeting over 10% compound annual consolidated earnings growth.

• The company maintains a diversified business model across upstream, midstream, and utility segments, focusing on capital efficiency, modernization, emissions reduction, and shareholder returns.

• A $200 million share repurchase program is underway, with $28.8–$45 million repurchased through June 2024.

• Liquidity remains strong with a $1.0–$1.08 billion credit facility and a new $300 million term loan drawn in April 2024.

Financial highlights

• Adjusted operating results for Q3 were $0.99 per share, and FY2024 adjusted EPS is projected at $5.05–$5.17, excluding a $1.57/share after-tax impairment.

• Adjusted EBITDA for the twelve months ended June 30, 2024, was $1.19 billion, up from $1.16 billion in FY2023.

• Free cash flow for the nine months ended June 30, 2024, was $189 million, down from $362 million year-over-year, reflecting lower operating cash flow and higher capital expenditures.

• Q2 2024 operating revenues were $417.4 million, with nine-month revenues at $1.57 billion.

• Seneca's production rose 2% year-over-year to 97 BCF, with FY2025 net production guidance at 400–420 Bcfe.

Outlook and guidance

• Fiscal 2024 earnings projected at $5.00–$5.10 per share, with fiscal 2025 guidance of $5.75–$6.25 per share, reflecting a 19% increase at the midpoint.

• Production for 2025 expected to rise 4% to 400–420 BCF.

• Capital expenditures for 2025 projected at $885–$970 million, with reduced non-regulated spending and a focus on regulated growth.

• Adjusted EPS growth is expected to exceed 10% in FY2025, then moderate to 5–7% annually.

• Cash from operations and available credit expected to cover capital needs and debt maturities through at least the next 12 months.