Core Insights - New Found Gold continues to report high-grade gold mineralization from its 2024 exploration program, particularly at the Dropkick and Pistachio zones, indicating potential for resource expansion [1][2][10] - The exploration program included 13,768 meters of drilling across 38 diamond drill holes, focusing on high-grade mineralization and strike extensions [2][10] Dropkick Zone - Significant drill results from the Dropkick zone include 42.8 g/t Au over 14.95 m and 47.6 g/t Au over 3.95 m, with mineralization now intersected over a 580 m strike extent [5][6] - The mineralization at Dropkick is open in all directions, with potential for further expansion [6][10] - The new domain of mineralization discovered east of the Appleton Fault Zone (AFZ) returned 5.30 g/t Au over 15.20 m, marking the first mineralization found in that area [6][10] Pistachio Zone - The Pistachio zone has shown promising results with 5.34 g/t Au over 7.30 m, extending the high-grade mineralization by 40 m down-dip [12][14] - The zone spans a strike length of 240 m and remains open down plunge and to depth [12][14] - Systematic reconnaissance drilling has identified additional target areas for future exploration [12][14] Future Plans - The company plans to conduct follow-up drilling at Dropkick starting in June 2025, with additional work planned at a soil anomaly located north of Pistachio [10][12] - The total drilling for the 2024 exploration program reached 89,974 m across 271 diamond drill holes, with results from 37,750 m in 82 holes to be included in the next mineral resource estimate [10][12] Company Overview - New Found Gold holds a 100% interest in the Queensway project located in Newfoundland and Labrador, which covers a significant area with a 110 km strike extent along two prospective fault zones [31][32] - The company is focused on growth and value creation, supported by a solid shareholder base, including a 19% holding by Eric Sprott [32]

Industry Overview - Energy stocks are gaining strength as macro conditions improve and demand drivers increase, with recession fears easing and tariff negotiations progressing [1] - The global buildout of data centers is expected to significantly increase electricity demand, benefiting utilities, natural gas providers, and midstream energy firms [2] Crude Oil Market - Crude oil prices have shown technical strength, indicating a potential bottom, with recent price action suggesting a bullish reversal pattern [5][6] - A key resistance level has emerged near $64, and a breakout above this level could lead to a sustained move towards $70 [7] Company Highlights - **National Fuel Gas (NFG)**: - Vertically integrated natural gas company with a diverse business model, benefiting from multiple points along the energy value chain [8] - Currently holds a Zacks Rank 2 (Buy) with upward earnings revisions indicating analyst confidence [9] - Shares trade at 11.7x forward earnings, below the 10-year median of 14x and the industry average of 16.8x, with projected earnings growth of 20.4% annually over the next three to five years, resulting in a PEG ratio of 0.58 [10] - **Epsilon Energy (EPSN)**: - Small-cap natural gas exploration and production company focused on the Appalachian Basin, emphasizing capital efficiency and shareholder returns [11] - Holds a Zacks Rank 1 (Strong Buy) with earnings estimates surging, including a 38% increase for the current quarter [14] - Technical analysis shows a bullish flag pattern, with a breakout above $7.30 likely to trigger further buying [15] - **Global Partners (GLP)**: - Diversified midstream energy company involved in the wholesale, distribution, and retail of petroleum products, with a strong cash flow and market exposure [16] - Offers a 6% dividend yield, supported by consistent cash generation and a 10% average annual dividend increase over the last five years [17] - Holds a Zacks Rank 1 (Strong Buy) with significant earnings estimate revisions, including a 42.9% increase for the current quarter [18] Investment Outlook - With improving macro conditions, rising energy demand, and technical support in crude oil prices, the outlook for energy stocks is strengthening [20] - National Fuel Gas, Epsilon Energy, and Global Partners present a compelling mix of value, growth, and yield, making them attractive options for investors [20]

Core Insights - National Fuel Gas (NFG) is currently viewed as a better value opportunity compared to Cactus, Inc. (WHD) based on various financial metrics and Zacks Rank [1][3][7] Valuation Metrics - NFG has a forward P/E ratio of 12.01, while WHD has a forward P/E of 14.86, indicating that NFG is potentially undervalued [5] - The PEG ratio for NFG is 0.59, suggesting a favorable earnings growth outlook compared to WHD's PEG ratio of 5.09, which indicates a less attractive growth perspective [5] - NFG's P/B ratio stands at 2.63, compared to WHD's P/B of 2.69, further supporting NFG's valuation advantage [6] Earnings Outlook - NFG is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, contrasting with WHD's weaker outlook [3][7]

Core Viewpoint - New Found Gold Corp. has commenced its 2025 work program at the Queensway Gold Project, focusing on development and resource expansion following an initial mineral resource announcement in Q1 2025 and a fully-funded Preliminary Economic Assessment (PEA) expected to be completed later this quarter [1][2][15]. Drilling and Excavation Activities - The company has initiated diamond drilling with four rigs at the Keats West and Lotto zones within the AFZ Core of the Queensway mineral resource, focusing on infill drilling before excavating near-surface portions [3][8]. - Following the completion of infill drilling at Keats West and Lotto, the company plans to drill priority open pits and underground portions of the mineral resource, as well as further explore the Dome and Golden Dome zones, which are located close to the initial mineral resource [4][8]. - An additional two drill rigs are scheduled to be mobilized in early June 2025 to target exploration areas 10 to 12 kilometers north of the AFZ Core, including the Dropkick zone, which has shown promising drill results [5][8]. Excavation Program - The excavation of shallow overburden at key zones in the AFZ Core has begun, with successful mapping and sampling conducted at Keats in 2023 and 2024, enhancing confidence in the geological model and grade distribution [6][8]. - The Iceberg zone has been excavated over a 220 m by 105 m area, revealing broad zones of gold-bearing quartz veins, with channel sampling expected to commence in late May 2025 [7][9]. Future Plans - The company is evaluating the potential to add more drills to expand the 2025 work program and will provide updates once the full program is finalized [10]. - Excavation of Keats West and Lotto is anticipated to be completed in Q4 2025, with channel sampling planned for Q2 2026 [9]. Investor Relations - New Found Gold has entered into an investor relations agreement with Target IR & Communications, which will provide investor relations services for a monthly fee of $8,500 for an initial term of six months [11][12].

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Is National Fuel Gas (NFG) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.National Fuel Gas is a member of our Oils-Energy group, which includes 246 different companies and currently sits at #14 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring ...

Core Insights - The S&P 500 has rebounded slightly after a significant drop but remains in negative territory for the year, while Dividend Kings are outperforming the index [1][3] - There are currently 55 Dividend Kings, with 31 of them beating the S&P 500 year to date as of May 1, 2025 [3] - Some Dividend Kings have shown remarkable performance, such as Consolidated Edison with a 25% increase and National Fuel Gas with over 30% gain year to date [4] Dividend Kings Performance - Not all Dividend Kings are performing well; for instance, Genuine Parts is barely positive, and Cincinnati Financial is down year to date but still better than the S&P 500 [4] - Income investors may find Altria and Universal Corporation appealing due to their high forward dividend yields of 6.88% and 5.57% respectively, despite potential reluctance due to their tobacco products [5] - Consumer defensive stocks like Coca-Cola and Wal-Mart are considered safe havens, with Coca-Cola's shares increasing nearly 15% [6] Sector Analysis - Healthcare stocks such as Abbott Labs and Kenvue have also shown double-digit percentage increases year to date, although they may face risks from potential tariffs [7] - The utilities sector is performing exceptionally well, with several Dividend Kings like Consolidated Edison and National Fuel Gas continuing to outperform the market [8] Top Picks - Coca-Cola and National Fuel Gas are highlighted as the best Dividend Kings to buy currently [9] - Coca-Cola is recognized as a strong blue-chip stock with a robust brand and a resilient business model [10] - National Fuel Gas is noted for its integrated energy operations and projected compound annual growth rate of over 10% through 2027, driven by the growing demand for natural gas in AI data centers [11][12]

Revenue Growth - Utility revenues increased to $343,574,000 for the three months ended March 31, 2025, compared to $290,198,000 for the same period in 2024, representing a growth of 18.4%[11] - Exploration and production revenues rose to $311,958,000 for the three months ended March 31, 2025, up from $264,614,000 in 2024, marking an increase of 17.9%[11] - Total revenues for the quarter ended March 31, 2025, were $729.95 million, a significant increase compared to $629.94 million for the same quarter in 2024, reflecting a year-over-year growth of approximately 15.9%[43][45]. - For the six months ended March 31, 2025, total revenues were $1.28 billion, up from $1.15 billion in the same period in 2024, representing an increase of approximately 10.7%[44][46]. Net Income and Earnings - Net income available for common stock for the three months ended March 31, 2025, was $216,358,000, compared to $166,272,000 in 2024, reflecting a year-over-year increase of 30.2%[12] - Earnings per common share (diluted) increased to $2.37 for the three months ended March 31, 2025, from $1.80 in 2024, a rise of 31.7%[11] - Net Income Available for Common Stock for the six months ended March 31, 2025, was $261,344,000, down from $299,292,000 for the same period in 2024, representing a decrease of about 12.7%[19]. Operating Performance - Operating income for the three months ended March 31, 2025, was $317,252,000, compared to $250,623,000 in 2024, representing a growth of 26.5%[11] - Segment profit for the Exploration and Production segment was $97.83 million for the quarter ended March 31, 2025, compared to $62.07 million in the same quarter of 2024, reflecting a year-over-year increase of approximately 57.7%[83][85]. Assets and Liabilities - Total assets as of March 31, 2025, were $8,479,963,000, compared to $8,319,770,000 as of September 30, 2024, indicating an increase of 1.9%[15] - Long-Term Debt increased from $2,188,243,000 in September 2024 to $2,381,126,000 in March 2025, an increase of approximately 8.8%[17]. - As of March 31, 2025, total net assets amounted to $58,102,000, while total liabilities were $201,464,000, resulting in total net liabilities of $(143,317,000)[50]. Cash Flow and Capital Expenditures - Net Cash Provided by Operating Activities decreased to $473,870,000 for the six months ended March 31, 2025, compared to $586,261,000 for the same period in 2024, a decline of approximately 19.2%[19]. - Capital Expenditures for the six months ended March 31, 2025, were $434,260,000, down from $481,958,000 in 2024, reflecting a decrease of about 9.9%[19]. Dividends and Shareholder Equity - The company declared dividends per common share of $0.515 for the three months ended March 31, 2025, compared to $0.495 in 2024, an increase of 4%[11]. - Total Comprehensive Shareholders' Equity decreased from $2,848,343,000 in September 2024 to $2,765,611,000 in March 2025, a decline of approximately 2.9%[17]. Impairments and Other Charges - The company reported a comprehensive income of $69,536,000 for the three months ended March 31, 2025, down from $174,231,000 in 2024, a decrease of 60%[12]. - The company recorded an impairment charge of $33,453,000 for water disposal assets during the six months ended March 31, 2024[51]. - The company recognized a deferred income tax benefit of $29.2 million related to the non-cash impairment charge for the quarter ended December 31, 2024[29]. Regulatory and Rate Orders - The 2024 Rate Order approved by the NYPSC authorizes a revenue requirement increase of $57.3 million in fiscal 2025, with additional increases of $15.8 million in fiscal 2026 and $12.7 million in fiscal 2027[91]. - The revenue decoupling and weather normalization adjustment mechanisms were approved in the 2024 Rate Order[92]. - Empire is required to file a Section 4 rate case by May 31, 2031, and cannot file a new rate case before April 30, 2027[96]. Financial Instruments and Derivatives - The company recorded a derivative financial instruments revenue of $(7.83) million for the quarter, indicating a loss in this area[43]. - For the three months ended March 31, 2025, the total derivative loss was $209.046 million, compared to a gain of $71.164 million for the same period in 2024, indicating a significant decline in performance[64]. - As of March 31, 2025, the fair market value of derivative financial instrument liabilities with a credit-risk related contingency feature was $147.3 million, with no hedging collateral deposits required[66].

National Fuel Gas Company (NFG) reported second-quarter fiscal 2025 adjusted operating earnings of $2.39 per share, which surpassed the Zacks Consensus Estimate of $2.18 by 9.6%. The bottom line also increased 33.5% from the year-ago quarter’s reported figure of $1.79. (See the Zacks Earnings Calendar to stay ahead of market-making news.)GAAP earnings for the quarter were $2.37 per share compared with $1.80 in the year-ago quarter.NFG’s Total RevenuesNFG reported sales of $730 million, which missed the Zack ...

Financial Data and Key Metrics Changes - National Fuel Gas Company reported a more than 30% increase in earnings compared to the previous year, with adjusted operating results increasing by 32% for the quarter [4][16]. - Earnings per share for the utility segment increased by $0.22, driven by a rate settlement approved by the New York PSC [6][16]. - The company expects adjusted operating results guidance to be in the range of $6.75 to $7.05 per share, reflecting a $0.15 per share increase from prior guidance [18][19]. Business Line Data and Key Metrics Changes - At Seneca, production grew by 8% sequentially, with record production levels of almost 106 Bcf and all-time high gathering volumes of nearly 130 Bcf [5][26]. - The utility segment benefited from a modernization tracker in Pennsylvania, with expectations for growth over the next two fiscal years [6][7]. - The FERC regulated pipeline and storage business continues to benefit from a rate settlement that went into effect last February [7][8]. Market Data and Key Metrics Changes - The outlook for natural gas remains strong, with demand increasing rapidly and significant LNG export growth anticipated [12][24]. - Natural gas prices have seen structural improvements, with a shift from a 5% surplus to a 10% deficit compared to the five-year average [16][17]. - The company has layered in favorable hedges for fiscal 2026 and 2027, with swaps executed at an average price of over $4 [17][19]. Company Strategy and Development Direction - National Fuel is focused on optimizing well-designed facilities to enhance productivity and inventory life, with a long-term outlook for its Appalachian development program [5][13]. - The company is positioned to capture market share in Appalachia as other operators moderate activity levels [13][14]. - There is a strong emphasis on operational excellence and capital efficiency gains, with plans to maintain a one to two rig development program [26][32]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for natural gas, citing robust domestic energy demand and the critical role of natural gas in providing reliable baseload generation [12][13]. - The company is optimistic about new opportunities arising from increased interest from data center developers and independent power producers [14][24]. - Management highlighted the importance of permitting reform to facilitate the construction of significant energy infrastructure projects [11][24]. Other Important Information - The company issued $1 billion in new notes, the largest bond issuance in its history, to manage fixed income liabilities and reduce refinancing risk [23][24]. - National Fuel's balance sheet is on track towards a 2x debt to EBITDA ratio by the end of the year, providing flexibility for capital allocation [22][24]. Q&A Session Summary Question: Thoughts on the buyback program and stock price impact - Management remains committed to the buyback program, considering stock price as a factor but prioritizing growth opportunities [34][36]. Question: Infrastructure build and potential for the Constitution pipeline - The main roadblock for the Constitution pipeline is New York State, and the new administration could help by addressing the Clean Water Act and judicial review processes [37]. Question: Leading edge EUR for recent EDA wells - Recent pads are showing pressure declines exceeding expectations, with sustained rates anticipated for several months [40][42]. Question: Outlook for regulated M&A - The company is focused on gaining scale in the regulated business, with interest in larger acquisitions rather than just bolt-ons [53][75]. Question: CapEx cadence beyond 2025 - The company anticipates continued reductions in capital expenditures while maintaining production growth, with a multiyear trend expected [68][70].

[Fiscal 2025 Second Quarter Financial Highlights](index=1&type=section&id=FISCAL%202025%20SECOND%20QUARTER%20SUMMARY) National Fuel Gas Company reported strong Q2 FY2025 results, with a 32% increase in GAAP EPS, driven by record natural gas production and growth in regulated segments, leading to raised full-year guidance [Overall Performance Summary](index=1&type=section&id=FISCAL%202025%20SECOND%20QUARTER%20SUMMARY) National Fuel Gas Company reported strong results for the second quarter of fiscal 2025, with a 32% year-over-year increase in GAAP earnings per share to $2.37, driven by record natural gas production and significant earnings growth in regulated segments Q2 FY2025 Key Financial Metrics | Metric | Q2 FY2025 | Change vs. Prior Year | | :--- | :--- | :--- | | GAAP Net Income | $216 million | +30% | | GAAP EPS | $2.37 | +32% | | Adjusted Operating Results | $218 million | +32% | | Adjusted EPS | $2.39 | +34% | - Seneca Resources achieved record natural gas production of **105.5 Bcf**, marking a **3% increase** from the prior year and an **8% sequential increase**, primarily due to strong performance from new pads in the Eastern Development Area (EDA)[6](index=6&type=chunk) - The Utility segment's net income grew by **44% per share**, largely due to a rate settlement in its New York jurisdiction, which was its first base rate increase since 2017[6](index=6&type=chunk) - The company increased its fiscal 2025 adjusted earnings per share guidance to a new range of **$6.75 to $7.05**[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=MANAGEMENT%20COMMENTS) CEO David P. Bauer highlighted the company's positive momentum, attributing the 32% increase in EPS to higher natural gas price realizations and strong operational execution, supporting increased production guidance and regulated business growth - The CEO stated that higher natural gas price realizations drove a **32% increase in earnings per share** over the prior year[4](index=4&type=chunk) - Seneca's recent well results in the Eastern Development Area (EDA) showed the **highest productivity to date**, leading to an increase in the fiscal 2025 production guidance[5](index=5&type=chunk) - Significant earnings growth in the regulated business was driven by positive rate case outcomes, balancing infrastructure investment with customer affordability[5](index=5&type=chunk) [Reconciliation of GAAP Earnings to Adjusted Operating Results](index=2&type=section&id=RECONCILIATION%20OF%20GAAP%20EARNINGS%20TO%20ADJUSTED%20OPERATING%20RESULTS) The company adjusted its GAAP earnings to provide 'Adjusted Operating Results,' a non-GAAP measure, with Q2 2025 GAAP earnings of $216.4 million ($2.37/share) adjusted to $218.3 million ($2.39/share) Q2 GAAP to Adjusted Operating Results Reconciliation (in thousands, except per share) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Reported GAAP Earnings** | **$216,358** | **$166,272** | | Premiums paid on early redemption of debt (net of tax) | $1,743 | — | | Unrealized (gain) loss on derivative asset (net of tax) | $245 | ($389) | | Unrealized (gain) loss on other investments (net of tax) | ($13) | ($607) | | **Adjusted Operating Results** | **$218,333** | **$165,276** | | **Reported GAAP EPS** | **$2.37** | **$1.80** | | **Adjusted Operating Results EPS** | **$2.39** | **$1.79** | [Fiscal 2025 Guidance and Financing Activities](index=2&type=section&id=FISCAL%202025%20GUIDANCE%20UPDATE) National Fuel updated its fiscal 2025 guidance, raising adjusted EPS and detailing significant debt refinancing activities, including new note issuance and early redemptions [Fiscal 2025 Guidance Update](index=2&type=section&id=FISCAL%202025%20GUIDANCE%20UPDATE) National Fuel has increased its fiscal 2025 adjusted earnings per share guidance by $0.15 at the midpoint, to a new range of $6.75 to $7.05, reflecting strong Q2 results, higher production, and lower unit costs in the E&P segment - The company increased its fiscal 2025 adjusted EPS guidance to a range of **$6.75 to $7.05**, citing strong Q2 results, higher expected production, and lower unit costs in the E&P segment[9](index=9&type=chunk) Fiscal 2025 Adjusted EPS Guidance Sensitivity to NYMEX Prices | NYMEX Assumption (Remaining 6 months) | Adjusted Earnings Per Share Range | | :--- | :--- | | $3.00/MMBtu | $6.50 - $6.80 | | **$3.50/MMBtu** | **$6.75 - $7.05** | | $4.00/MMBtu | $7.05 - $7.35 | [Financing Activities Update](index=2&type=section&id=FINANCING%20ACTIVITIES%20UPDATE) In February 2025, the company issued $1 billion in new notes to refinance $950 million of maturing debt and placed $50 million in trust to discharge its 1974 Indenture, resulting in a $1.7 million after-tax loss - Issued **$1 billion of new five- and ten-year notes** to refinance the early redemption of **$950 million of notes** maturing in July 2025 and January 2026[12](index=12&type=chunk) - Placed **$50 million in trust** to discharge the Company's 1974 Indenture, relieving it from the indenture's covenants[12](index=12&type=chunk) - Recognized an after-tax loss of **$1.7 million** in connection with these financing transactions[12](index=12&type=chunk) [Segment Performance Analysis](index=3&type=section&id=DISCUSSION%20OF%20SECOND%20QUARTER%20RESULTS%20BY%20SEGMENT) The company's Q2 performance was driven by strong upstream and utility segment growth, while midstream results were mixed, with pipeline earnings up and gathering earnings down [Upstream Business (Exploration & Production)](index=3&type=section&id=Upstream%20Business) The Exploration and Production segment reported a significant increase in Q2 GAAP earnings to $97.8 million, driven by a 3% YoY increase in natural gas production to a record 105.5 Bcf and higher realized natural gas prices Exploration and Production Segment Earnings (in thousands) | Metric | Q2 2025 | Q2 2024 | Variance | | :--- | :--- | :--- | :--- | | GAAP Earnings | $97,828 | $62,065 | $35,763 | | Adjusted Operating Results | $99,118 | $61,676 | $37,442 | | Adjusted EBITDA | $214,350 | $172,068 | $42,282 | - Natural gas production increased by **3% YoY to 105.5 Bcf**, driven by two highly prolific pads turned online in the Eastern Development Area (EDA)[18](index=18&type=chunk) - The weighted average realized natural gas price, after hedging and transportation, was **$2.94 per Mcf**, an increase of **$0.38 per Mcf** from the prior year[19](index=19&type=chunk) - Depreciation, Depletion and Amortization (DD&A) expense decreased by **$0.10 per Mcf to $0.61 per Mcf**, largely due to prior period ceiling test impairments[20](index=20&type=chunk) [Midstream Businesses](index=4&type=section&id=Midstream%20Businesses) The Midstream Businesses reported mixed results, with the Pipeline and Storage segment seeing slight earnings growth due to higher rates, while the Gathering segment's earnings decreased due to higher expenses offsetting revenue increases [Pipeline and Storage Segment](index=4&type=section&id=Pipeline%20and%20Storage%20Segment) The Pipeline and Storage segment's GAAP earnings increased by $1.0 million to $31.7 million, primarily due to higher operating revenues from increased transportation and storage rates, despite a future slight revenue reduction from a FERC settlement Pipeline and Storage Segment Earnings (in thousands) | Metric | Q2 2025 | Q2 2024 | Variance | | :--- | :--- | :--- | :--- | | GAAP Earnings | $31,707 | $30,737 | $970 | | Adjusted EBITDA | $70,169 | $70,033 | $136 | - On March 17, 2025, FERC approved an amendment to Empire's rate case settlement, which is estimated to decrease Empire's annual revenues by approximately **$0.5 million** with new rates effective November 1, 2025[24](index=24&type=chunk) [Gathering Segment](index=4&type=section&id=Gathering%20Segment) The Gathering segment's Q2 GAAP earnings decreased by $2.4 million to $26.3 million, as increased operating revenues from higher throughput were more than offset by higher O&M and DD&A expenses Gathering Segment Earnings (in thousands) | Metric | Q2 2025 | Q2 2024 | Variance | | :--- | :--- | :--- | :--- | | GAAP Earnings | $26,342 | $28,706 | ($2,364) | | Adjusted Operating Results | $27,040 | $28,706 | ($1,666) | | Adjusted EBITDA | $52,748 | $53,103 | ($355) | - Operating revenues increased by **2%** due to higher throughput from Seneca's new wells in Tioga County, but this was offset by a **$1.5 million increase in O&M expense** and a **$1.2 million increase in DD&A expense**[27](index=27&type=chunk) [Downstream Business (Utility)](index=5&type=section&id=Downstream%20Business) The Utility segment delivered strong performance, with Q2 GAAP earnings increasing by 42% to $63.5 million, primarily driven by a new rate case settlement in its New York jurisdiction that boosted customer margin by $22.2 million Utility Segment Earnings (in thousands) | Metric | Q2 2025 | Q2 2024 | Variance | | :--- | :--- | :--- | :--- | | GAAP Earnings | $63,544 | $44,739 | $18,805 | | Adjusted EBITDA | $95,270 | $78,326 | $16,944 | - The primary driver for the **42% earnings increase** was the implementation of the recently approved rate case settlement in the New York jurisdiction, effective October 1, 2024[30](index=30&type=chunk) - Customer margin (operating revenues less purchased gas sold) increased by **$22.2 million**, primarily due to the New York rate case settlement[31](index=31&type=chunk) [Corporate and All Other](index=5&type=section&id=Corporate%20and%20All%20Other) The Corporate and All Other segment reported a net loss of $3.1 million for the second quarter, primarily due to higher interest expense from increased net borrowings and lower investment income - The segment generated a net loss of **$3.1 million** compared to a small profit in the prior year[33](index=33&type=chunk) - The earnings reduction was primarily driven by higher interest expense due to a higher average amount of net borrowings, along with a decrease in investment income[33](index=33&type=chunk) [Detailed Guidance Summary](index=7&type=section&id=GUIDANCE%20SUMMARY) The company provided detailed updated fiscal 2025 guidance, including increased consolidated adjusted EPS, stable capital expenditures, and higher E&P production forecasts [FY 2025 Guidance Details](index=7&type=section&id=GUIDANCE%20SUMMARY) The company's updated FY 2025 guidance reflects increased production and lower costs in the E&P segment, with capital expenditure plans remaining consistent and revenue guidance for midstream and downstream segments reaffirmed Updated Fiscal 2025 Guidance Assumptions | Metric | Previous FY 2025 Guidance | Updated FY 2025 Guidance | | :--- | :--- | :--- | | **Consolidated Adjusted EPS** | **$6.50 to $7.00** | **$6.75 to $7.05** | | Consolidated Capital Expenditures | $885 - $960 million | $885 - $960 million | | **E&P Production (Bcf)** | **410 to 425** | **415 to 425** | | E&P Realized Gas Prices, after hedging ($/Mcf) | $2.77 - $2.81 | $2.72 - $2.76 | | Gathering Segment Revenues | $250 - $260 million | $250 - $260 million | | Pipeline and Storage Segment Revenues | $415 - $435 million | $415 - $435 million | | Utility Segment Customer Margin | $445 - $465 million | $445 - $465 million | [Consolidated Financial Statements](index=12&type=section&id=CONSOLIDATED%20FINANCIAL%20STATEMENTS) The consolidated financial statements for Q2 FY2025 show increased operating revenues and net income, a slight rise in total assets, and a shift to net cash inflow from financing activities [Summary of Operations (Income Statement)](index=12&type=section&id=SUMMARY%20OF%20OPERATIONS) For Q2 FY2025, total operating revenues increased to $730.0 million, operating income rose to $317.3 million, and net income available for common stock significantly grew to $216.4 million, or $2.37 per diluted share Summary of Operations (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Operating Revenues | $729,950 | $629,939 | | Operating Income | $317,252 | $250,623 | | Net Income Available for Common Stock | $216,358 | $166,272 | | Diluted Earnings Per Common Share | $2.37 | $1.80 | [Consolidated Balance Sheets](index=13&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets increased slightly to $8.48 billion, with stable net property, plant, and equipment, while total capitalization rose to $5.15 billion due to increased long-term debt, and shareholders' equity decreased to $2.77 billion Key Balance Sheet Items (in thousands) | Metric | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Assets | $8,479,963 | $8,319,770 | | Net Property, Plant and Equipment | $7,347,199 | $7,339,205 | | Long-Term Debt, Net | $2,381,126 | $2,188,243 | | Total Comprehensive Shareholders' Equity | $2,765,611 | $2,848,343 | | Total Capitalization and Liabilities | $8,479,963 | $8,319,770 | [Consolidated Statements of Cash Flows](index=14&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended March 31, 2025, net cash from operating activities decreased to $473.9 million, investing activities used less cash at $425.4 million, and financing activities shifted to a $4.6 million net inflow due to debt management Six-Month Cash Flow Summary (in thousands) | Metric | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $473,870 | $586,261 | | Net Cash Used in Investing Activities | ($425,379) | ($483,147) | | Net Cash Provided by (Used in) Financing Activities | $4,593 | ($107,792) | | Net Increase (Decrease) in Cash | $53,084 | ($4,678) | [Segment and Operational Data](index=15&type=section&id=SEGMENT%20OPERATING%20RESULTS%20AND%20STATISTICS) This section provides detailed operational statistics for each segment, highlighting increased production and throughput across upstream, midstream, and downstream businesses, alongside capital expenditure breakdowns [Upstream Business Statistics](index=15&type=section&id=UPSTREAM%20BUSINESS) The Upstream segment's Appalachian gas production for Q2 2025 increased by 2.6% to 105,514 MMcf, with the weighted average gas price after hedging rising to $2.94 per Mcf, and DD&A decreasing to $0.61 per Mcf Upstream Gas Production and Prices | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Production (MMcf) | 105,514 | 102,883 | | Avg. Price (Per Mcf) | $3.02 | $1.98 | | Avg. Price after Hedging (Per Mcf) | $2.94 | $2.56 | [Midstream Businesses Statistics](index=16&type=section&id=MIDSTREAM%20BUSINESSES) In Q2 2025, the Pipeline and Storage segment's total throughput increased to 235,184 MMcf, driven by higher firm transportation, while the Gathering segment's volume also grew to 129,771 MMcf Pipeline and Storage Throughput (MMcf) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Firm Transportation - Affiliated | 49,240 | 42,561 | | Firm Transportation - Non-Affiliated | 185,490 | 179,697 | | **Total Throughput** | **235,184** | **223,529** | Gathering Volume (MMcf) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Gathered Volume | 129,771 | 125,565 | [Downstream Business Statistics](index=17&type=section&id=DOWNSTREAM%20BUSINESS) The Utility segment's throughput for Q2 2025 increased to 62,919 MMcf, driven by higher demand across all customer classes, with residential sales showing the largest volume increase Utility Throughput (MMcf) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Residential Sales | 32,111 | 27,063 | | Commercial Sales | 5,420 | 4,293 | | Transportation | 25,086 | 22,637 | | **Total Throughput** | **62,919** | **54,183** | [Capital Expenditures](index=20&type=section&id=Capital%20Expenditures) Total capital expenditures for Q2 FY2025 decreased to $181.0 million, with the Exploration and Production segment remaining the largest investment area at $108.4 million, while the Utility segment saw increased spending to $41.9 million Capital Expenditures by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Exploration and Production | $108,384 | $124,184 | | Pipeline and Storage | $15,626 | $18,025 | | Gathering | $18,499 | $19,949 | | Utility | $41,867 | $37,741 | | **Total Capital Expenditures** | **$181,030** | **$200,020** | [Non-GAAP Financial Measures](index=24&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section provides reconciliations for non-GAAP financial measures, such as Adjusted Operating Results and Adjusted EBITDA, to their GAAP equivalents, offering insights into core operational performance [Reconciliation of Non-GAAP Measures](index=24&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section details the company's use of non-GAAP financial measures, such as Adjusted Operating Results and Adjusted EBITDA, which management believes provide a clearer view of ongoing operational performance, with Q2 2025 Adjusted EBITDA at $428.5 million - The company uses non-GAAP financial measures like adjusted operating results and adjusted EBITDA to provide an alternative method for assessing ongoing operating results and for comparison with other companies[80](index=80&type=chunk) Reconciliation of GAAP Earnings to Adjusted EBITDA (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Reported GAAP Earnings | $216,358 | $166,272 | | Depreciation, Depletion and Amortization | $111,277 | $118,935 | | Other (Income) Deductions | ($15,232) | ($6,070) | | Interest Expense | $44,757 | $35,089 | | Income Taxes | $71,369 | $55,332 | | **Adjusted EBITDA** | **$428,529** | **$369,558** |