Industry Overview - The Zacks Oil & Gas US Integrated industry includes companies involved in upstream and midstream energy businesses, focusing on oil and natural gas exploration and production, as well as transportation and storage [3] - Upstream operations are positively correlated to oil and gas prices, while midstream assets generate stable fee-based revenues [3] Current Market Environment - Despite a significant decline in crude prices, the pricing environment remains favorable for exploration and production activities [1] - Integrated energy firms' midstream segments are performing well due to consistent revenues from pipeline and storage fees [1] Key Trends - Oil prices are still favorable as the breakeven price in most U.S. shale plays is lower than current oil prices, allowing upstream operations to remain profitable [4] - Integrated companies' midstream businesses are less exposed to commodity price volatility, securing stable fee-based revenues through long-term contracts [5] - Companies are focusing on reducing greenhouse gas emissions and flaring rates in response to climate change concerns [6] Industry Performance - The Zacks Oil & Gas US Integrated industry has underperformed compared to the broader Zacks Oil - Energy sector and the S&P 500 over the past year, with a decline of 31.8% [9] - The industry currently holds a Zacks Industry Rank of 78, placing it in the top 32% of over 250 Zacks industries, indicating bright near-term prospects [7][8] Valuation Metrics - The industry is trading at an EV/EBITDA ratio of 4.61X, lower than the S&P 500's 14.66X but higher than the sector's 4.09X [13] - Over the past five years, the industry's EV/EBITDA has ranged from 3.33X to 14.35X, with a median of 5.02X [13] Notable Companies - **ConocoPhillips (COP)**: Has a promising production outlook with lower debt exposure, positioned to withstand adverse business scenarios [15] - **Occidental Petroleum (OXY)**: Significant presence in U.S. shale plays, with a reserve replacement rate of 230% in 2024 [17][19] - **National Fuel Gas (NFG)**: Involved in developing resources in Marcellus and Utica shale plays, with a strong dividend payment history [22] - **Epsilon Energy (EPSN)**: An independent natural gas and oil company with operations in Marcellus Shale and Permian basin, debt-free with stable cash flows [25]

Core Viewpoint - Donna L. DeCarolis, President of National Fuel Gas Distribution Corporation, will retire on July 1, 2025, after over 40 years of service, but will continue as a Senior Energy Advisor for the company, focusing on energy policy matters in New York [2][4][5]. Company Leadership Transition - Michael Colpoys will succeed DeCarolis as President of National Fuel Gas Distribution Corporation on July 1, 2025. Colpoys has extensive experience in utility operations and has been with National Fuel since 1987 [9][10]. DeCarolis' Contributions - DeCarolis has been a strong advocate for natural gas customers and has actively participated in community discussions regarding New York's climate policies since the state enacted aggressive climate legislation in 2019 [4][5]. - She served on the New York State Climate Action Council, where she raised concerns about the impact of climate policies on customer affordability and energy reliability [7]. Company Overview - National Fuel Gas Company operates in four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Utility segment serves 2.2 million residents in Western New York and Northwestern Pennsylvania [12].

Core Insights - Zacks Premium provides various tools to help investors make informed decisions and maximize stock market returns [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Cash Flow [4] - The Growth Score evaluates a company's future prospects through projected earnings and sales growth [5] - The Momentum Score identifies stocks with upward or downward trends based on recent price changes and earnings estimates [6] - The VGM Score combines all three Style Scores, providing a comprehensive assessment of stocks based on value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [9] - To optimize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] Stock Example: National Fuel Gas (NFG) - National Fuel Gas Company, based in New York, operates in the energy sector with natural gas and oil assets [12] - NFG currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating moderate potential [12] - The company has a Momentum Style Score of A, with shares increasing by 5.1% over the past four weeks, and an upward revision in earnings estimates for fiscal 2025 [13]

Core Viewpoint - Growth investors are interested in stocks with above-average financial growth, but identifying stocks that can fulfill their potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - National Fuel Gas (NFG) is highlighted as a promising growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 13.7%, with projected EPS growth of 40.4% this year, significantly surpassing the industry average of 15.8% [5] Group 2: Financial Metrics - Year-over-year cash flow growth for National Fuel Gas stands at 3.8%, outperforming the industry average of -0.1% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 9.9%, compared to the industry average of 8.9% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for National Fuel Gas, with the Zacks Consensus Estimate for the current year increasing by 5.9% over the past month [9] - The combination of earnings estimate revisions and growth metrics has positioned National Fuel Gas as a Zacks Rank 2 stock with a Growth Score of B, indicating potential for outperformance [11]

Core Viewpoint - The current market pullback may persist for an extended period, prompting investors to prepare for various scenarios, particularly the worst-case scenario [1] Energy Sector Performance - The energy sector has shown significant outperformance over the last week, month, and year-to-date, featuring some of the cheapest companies in the market [3] - During the 2022 bear market, energy stocks were a bright spot as investors shifted towards real assets [3] Chevron (CVX) - Chevron is a major vertically integrated energy company with a long history of strong returns and currently offers a 4.2% dividend yield [4] - The company has a Zacks Rank 3 (Hold) rating, with expected earnings growth of 17.7% this year and 10.1% annually over the next three to five years [5] - CVX's valuation at 15.2x forward earnings is in line with its long-term median of 13x [5] - Recent technical analysis indicates that CVX stock has broken out of its range after two years of consolidation, suggesting strong investor interest [6] Exxon Mobil (XOM) - Exxon Mobil is a diversified energy giant that provides steady profits and dividends, with a Zacks Rank 3 (Hold) rating [9][10] - Projected earnings growth for Exxon is 20% this year and 5% annually over the next three to five years [10] - The company has a robust balance sheet with net assets of $270 billion and over $35 billion in free cash flow over the last 12 months [10] - Exxon boasts a Free Cash Flow yield of 7%, significantly higher than the S&P 500 average [11] National Fuel Gas Company (NFG) - National Fuel Gas Company is leading the sector, particularly benefiting from the rising demand for natural gas due to data centers [13] - The company has a Zacks Rank 1 (Strong Buy) rating, with earnings revisions trending upward and a nearly 50% stock gain over the last year [14] - NFG is trading at a reasonable valuation of 11.8x forward earnings, making it an attractive option despite its recent price increase [15] Investment Considerations - Energy stocks like Chevron, Exxon Mobil, and National Fuel Gas Company offer defensive stability, attractive valuations, and strong earnings potential amid market volatility [16] - These companies are positioned to outperform whether the market stabilizes or experiences further corrections, making them compelling investment opportunities [17]

Core Viewpoint - National Fuel Gas (NFG) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, making it a valuable tool for investors [2][3]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [3]. Company Performance Indicators - For the fiscal year ending September 2025, National Fuel Gas is projected to earn $6.64 per share, reflecting a 32.5% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for National Fuel Gas has risen by 8.8%, indicating a positive trend in earnings expectations [7]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting their superior earnings estimate revision characteristics [8][9]. Conclusion - The upgrade of National Fuel Gas to a Zacks Rank 1 positions it favorably for potential market-beating returns in the near term due to its strong earnings estimate revisions [9].

Dividend Announcement - The Board of Directors of National Fuel Gas Company approved a quarterly dividend of 51.5 cents per share on common stock, payable on April 15, 2025, to stockholders of record as of March 31, 2025 [1] - The company has approximately 90.4 million shares of common stock outstanding and no preferred stock [1] Annual Meeting Results - At the Annual Meeting of Stockholders, preliminary results showed approval of three management proposals, including the election of directors for one-year terms expiring in 2026 [2] - The approved directors include David H. Anderson, David P. Bauer, Barbara M. Bauman, David C. Carroll, Steven C. Finch, Joseph N. Jaggers, Rebecca Ranich, Jeffrey W. Shaw, Thomas E. Skains, David F. Smith, and Ronald J. Tanski [2] - The advisory vote on named executive officer compensation and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm were also approved [2] Company Overview - National Fuel is a diversified energy company headquartered in Western New York, operating an integrated collection of natural gas assets across four business segments: Exploration & Production, Pipeline & Storage, Gathering, and Utility [3]

Core Viewpoint - National Fuel Gas Company (NFG) reported a strong first-quarter fiscal 2025 performance, with adjusted operating earnings exceeding estimates, although total revenues fell short of expectations. The company has raised its earnings guidance for the fiscal year, reflecting positive market conditions and operational improvements [2][9]. Financial Performance - Adjusted operating earnings for Q1 fiscal 2025 were $1.66 per share, surpassing the Zacks Consensus Estimate of $1.57 by 5.7% and increasing 13.7% from $1.46 in the prior year [2]. - Total revenues amounted to $549.5 million, missing the Zacks Consensus Estimate of $594 million by 7.5%, but representing a 4.6% increase from $525.4 million year-over-year [3]. - Total operating expenses rose 45.6% to $463.3 million, primarily due to higher purchased gas and asset impairments [5]. Segment Performance - Utility segment revenues reached $228.4 million, up 13.1% from $201.9 million in the previous year [4]. - Exploration and Production revenues totaled $248.9 million, down 2% from $254 million year-over-year [4]. - Pipeline and Storage and Gathering revenues increased by 4% to $72.2 million from $69.4 million in the prior year [4]. Production and Cash Flow - Seneca produced 97.7 billion cubic feet (Bcf) of natural gas, a decrease of 3 Bcf or 3% from the previous year, attributed to the timing of new well turn-in lines [6]. - As of December 31, 2024, cash and temporary cash investments were $48.7 million, up from $38.2 million as of September 30, 2024 [7]. - Net cash provided by operating activities for the first three months of fiscal 2025 was $220.1 million, down from $270.9 million in the prior year [7]. Guidance and Outlook - NFG has raised its fiscal 2025 adjusted earnings per share guidance to a range of $6.50-$7.00 from $5.50-$6.00, driven by higher natural gas price forecasts [9]. - The company expects capital expenditures for fiscal 2025 to be between $885-$960 million, slightly lower than the previous range of $885-$970 million [9]. - Production guidance for fiscal 2025 is now set at 410-425 Bcf, an increase of 7.5 Bcf or 2% at the midpoint compared to the previous estimate [10]. Market Position - National Fuel Gas holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [13].

Company Overview - National Fuel Gas Company is an integrated energy company based in Williamsville, New York, with natural gas assets in the Appalachian basin and oil-producing assets in California [11] - The company operates through segments including Exploration and Production, Pipeline and Storage, and Utility and Energy Marketing [11] Investment Ratings - National Fuel Gas is rated 1 (Strong Buy) on the Zacks Rank, indicating a strong investment potential [12] - The company has a VGM Score of B, suggesting a favorable combination of value, growth, and momentum characteristics [12] Growth Potential - National Fuel Gas is projected to have year-over-year earnings growth of 32.5% for the current fiscal year, making it an attractive option for growth investors [12] - Recent analyst revisions indicate positive sentiment, with two analysts raising their earnings estimates for fiscal 2025, and the Zacks Consensus Estimate increasing by $0.53 to $6.64 per share [12] - The company has an average earnings surprise of 8.3%, further enhancing its growth appeal [12] Summary - With a solid Zacks Rank and strong Growth and VGM Style Scores, National Fuel Gas is positioned as a top pick for investors [13]

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium includes access to the Zacks Style Sc ...