National Fuel Gas sets FY2027 profit outlook and plans Seneca spin-off

National Fuel Gas (NFG) expects fiscal 2027 adjusted earnings of $6.00 to $6.40 per share, the company said in an updated investor presentation released Nov. 4. The midpoint of the range is $6.20 per share.

The outlook assumes a NYMEX natural gas price of $2.85 per MMBtu and an in-basin spot price of $2.15 per MMBtu, according to the presentation. It also reflects existing hedges, firm sales and firm transportation contracts.

The company also plans to separate its Integrated Upstream & Gathering business, which will be named Seneca Resources. The separation would be carried out through a tax-free distribution of Seneca shares to National Fuel shareholders, who would keep their National Fuel shares and receive Seneca shares on a pro rata basis.

The company expects to retain up to a 19.9% ownership interest in Seneca and intends to dispose of that stake in a tax-efficient manner. Seneca Resources is expected to trade on the NYSE.

Justin Loweth is to become chief executive of Seneca Resources. David P. Bauer will remain President and Chief Executive Officer of National Fuel, and Timothy J. Silverstein will remain Treasurer and Chief Financial Officer.

The company targets completion in the second half of calendar 2027. Closing is subject to final approval by National Fuel's board, the effectiveness of a registration statement, completion of financing arrangements, and favorable tax treatment.

For fiscal 2026, the company said it achieved 9% adjusted earnings per share growth and generated about $200 million of free cash flow. It also delivered its 56th consecutive annual dividend increase.