National Fuel Gas tops Q4 profit estimate, revenue falls short

National Fuel Gas (NFG) earned $1.22 per share of adjusted profit in its fiscal fourth quarter, beating the $1.05 consensus estimate, while revenue of $467.8 million was below the $476.91 million estimate.

Shares were little changed at 10:16 a.m. ET, from a $76.54 close.

For the full fiscal year, adjusted earnings per share rose 9% to $7.55 from $6.91 in fiscal 2025. GAAP earnings per share were $7.02, compared with $5.68 a year earlier.

Here's how the company did:

• Adjusted EPS: $1.22 vs. $1.22 a year earlier, against $1.05 expected
• GAAP EPS: $1.02 vs. $1.18 a year earlier
• Revenue: $467.8 million vs. $456.4 million a year earlier, against $476.91 million expected

GAAP earnings for the quarter were $97.5 million, compared with $107.3 million a year earlier. The gap reflects costs tied to the Ohio gas utility acquisition and the planned upstream spin-off.

2027 guidance

The company initiated fiscal 2027 adjusted EPS guidance of $6.00 to $6.40, assuming an average NYMEX natural gas price of $2.85 per MMBtu, near the current forward curve.

At a $3.00 gas price, the sensitivity range is $6.20 to $6.60 per share. At $3.50, it is $6.85 to $7.25.

Consolidated capital expenditures are expected to be $1.09 billion to $1.22 billion.

Segment results

Integrated Upstream and Gathering posted quarterly GAAP earnings of $115.4 million, up $11.9 million. Adjusted earnings rose $8.5 million on higher realized natural gas prices, lower interest expense and lower income taxes.

Seneca's production fell 7% to 104 Bcf in the quarter. Its weighted average realized price after hedging rose 7% to $2.80 per Mcf.

Pipeline and Storage posted GAAP earnings of $26.2 million, down $1.7 million.

The Utility segment posted a GAAP loss of $15.1 million, narrowed from a $17.8 million loss a year earlier, on higher customer margin.

Corporate and All Other posted a loss of $29.1 million, largely from transaction and financing costs tied to the Ohio acquisition and separation costs.

Ohio acquisition and spin-off

The company completed its acquisition of CenterPoint Energy's Ohio natural gas utility on Oct. 1. The deal doubles its utility rate base and adds about 335,000 utility customers.

The company plans to separate its Integrated Upstream and Gathering business into a standalone company expected to be named Seneca Resources. The transaction is expected in the second half of calendar 2027 through a pro rata distribution of at least 80.1% of the shares to National Fuel shareholders. National Fuel expects to retain up to a 19.9% interest, which it intends to dispose of in a tax-efficient manner.

Dividend and cash flow

The board approved the company's 56th consecutive annual dividend increase, to an annual rate of $2.22 per share.

Net cash provided by operating activities was $1.27 billion for the twelve months, and free cash flow was $199 million.