National Fuel Gas pany(NFG) - 2026 Q1 - Quarterly Report

Financial Performance - Operating revenues for the three months ended December 31, 2025, increased to $651.5 million, up 18.6% from $549.5 million in the same period of 2024[10] - Net income available for common stock surged to $181.6 million, compared to $45.0 million in the prior year, representing a 304.5% increase[12] - Earnings per common share (basic) rose to $1.99, a significant increase from $0.50 in the previous year[10] - The company reported an operating income of $276.1 million, a substantial increase from $86.2 million in the same quarter of the previous year[10] - Comprehensive income for the three months ended December 31, 2025, was $207.9 million, compared to a loss of $15.7 million in the prior year[12] - Net income available for common stock for the three months ended December 31, 2025, was $181,645,000, a significant increase from $44,986,000 in the same period of 2024, representing a growth of 304%[20] - Total revenues for the quarter ended December 31, 2025, were $651.5 million, a 18.6% increase from $549.5 million in the same quarter of 2024[48] - The Integrated Upstream and Gathering segment generated revenues of $323.2 million for the three months ended December 31, 2025[83] - The Utility segment reported revenues of $259.0 million for the same period, contributing to the overall revenue growth[83] Assets and Liabilities - Total assets increased to $9.21 billion as of December 31, 2025, compared to $8.72 billion at the end of September 2025, reflecting a growth of 5.6%[15] - Cash and temporary cash investments rose to $271.4 million, up from $43.2 million in the previous quarter, indicating improved liquidity[15] - Total comprehensive shareholders' equity increased to $3,587,960,000 as of December 31, 2025, compared to $3,094,604,000 as of September 30, 2025, reflecting a growth of 16%[18] - The company's total capitalization as of December 31, 2025, was $5,671,852,000, an increase from $5,477,465,000 as of September 30, 2025, showing a growth of 4%[18] - The fair market value of long-term debt was $2,695,409,000, with a carrying amount of $2,683,892,000[57] - The Company reported a decrease in current portion of long-term debt to $600,000,000 as of December 31, 2025, from $300,000,000 as of September 30, 2025, reflecting a 100% increase in current liabilities[20] Cash Flow and Investments - Net cash provided by operating activities for the three months ended December 31, 2025, was $274,921,000, up from $220,088,000 in the same period of 2024, indicating a 25% increase[20] - Capital expenditures for the three months ended December 31, 2025, were $277,631,000, compared to $240,427,000 in the same period of 2024, representing an increase of 15%[20] - The net increase in cash and cash equivalents for the three months ended December 31, 2025, was $228,232,000, compared to $10,472,000 in the same period of 2024, indicating a substantial increase[20] - Cash and cash equivalents at December 31, 2025, were $271,398,000, a significant increase from $48,694,000 at the same time in 2024[20] - The Company had $46.2 million of net hedging gains after taxes included in accumulated other comprehensive income, with $45.9 million expected to be reclassified into earnings within the next 12 months[64] Shareholder Returns - The company declared dividends per common share of $0.535, up from $0.515 in the previous year, reflecting a commitment to returning value to shareholders[10] - The balance of earnings reinvested in the business at December 31, 2025, was $2.14 billion, compared to $1.70 billion at the same time last year[10] - The Company issued 4,402,513 shares of common stock at $79.50 per share, raising net proceeds of $338.6 million for general corporate purposes, including funding an acquisition[71] Acquisitions and Growth - The Company entered into a Securities Purchase Agreement to acquire Vectren Energy Delivery of Ohio, LLC for an aggregate purchase price of $2.62 billion, expected to close in Q4 2026[43] - The acquisition will double the size of the Company's gas utility rate base and expand operations into Ohio, a state with a supportive regulatory environment[43] - The purchase price includes $1.42 billion in cash and a $1.2 billion promissory note with a 6.5% interest rate, maturing 364 days post-closing[43] Environmental and Regulatory Matters - The Company recorded a regulatory liability of $1.5 million for environmental clean-up costs as of December 31, 2025[75] - The Company has not identified any material additional exposure to environmental liabilities beyond the recorded amounts[75] - The 2024 Rate Order approved by the NYPSC includes a revenue requirement increase of $57.3 million for fiscal 2025, $15.8 million for fiscal 2026, and $12.7 million for fiscal 2027, with a return on equity of 9.7%[86] - In Pennsylvania, the 2023 Rate Order authorized an increase in annual base rate operating revenues of $23 million, with a proposed additional increase of $19.7 million effective March 29, 2026[87] Other Financial Metrics - The effective tax rate for the quarter ended December 31, 2025, was 24.6%, an increase from 19.9% in the same quarter of 2024[69] - The Company recorded a total of $9,720 thousand in net gains from derivative financial instruments for the quarter ended December 31, 2025[36] - The Company recorded an impairment charge of $33.45 million for water disposal assets in Q4 2025, following a fair market value assessment[54] - The allowance for uncollectible accounts increased to $17,504,000 as of December 31, 2025, from $28,384,000 in the same period of 2024, indicating a decrease of 38%[29]