National Fuel Gas pany(NFG) - 2023 Q3 - Quarterly Report

Revenue Performance - Utility revenues for Q3 2023 were $144.5 million, down 19.7% from $179.9 million in Q3 2022[12] - Exploration and production revenues decreased to $216.6 million in Q3 2023, a decline of 14.3% compared to $252.6 million in Q3 2022[12] - Total revenues for the quarter ended June 30, 2023, amounted to $428.7 million, with natural gas production contributing $157.7 million[46] - For the nine months ended June 30, 2023, total revenues reached $1.8 billion, with natural gas residential sales accounting for $671.4 million[47] - The Company reported a total of $1.9 billion in revenues from contracts with customers for the nine months ended June 30, 2023[47] - Total revenues for the nine months ended June 30, 2022, amounted to $1,750.9 million, with significant contributions from natural gas production ($1,189.9 million) and residential sales ($604.3 million)[50] Net Income and Earnings - Net income available for common stock for Q3 2023 was $92.6 million, a decrease of 14.4% from $108.2 million in Q3 2022[13] - Earnings per common share for Q3 2023 were $1.01, down from $1.18 in Q3 2022[12] - Net income available for common stock for the nine months ended June 30, 2023, was $403,189,000, slightly down from $407,879,000 in the same period of 2022[22] - The company recorded a net periodic benefit income of $3.466 million for the nine months ended June 30, 2023, compared to a cost of $20.982 million for the same period in 2022[94] Comprehensive Income and Shareholder Equity - Comprehensive income for the nine months ended June 30, 2023, was $979.5 million, compared to $338.6 million in the same period of 2022[13] - Total comprehensive shareholders' equity rose to $2,935,902,000 as of June 30, 2023, from $2,079,896,000 in September 30, 2022, marking an increase of approximately 41.1%[20] Cash Flow and Investments - Net cash provided by operating activities was $1,055,112,000 for the nine months ended June 30, 2023, compared to $654,016,000 for the same period in 2022, indicating a significant increase of approximately 61.3%[22] - The company reported a net cash used in investing activities of $829,099,000 for the nine months ended June 30, 2023, compared to $294,520,000 in the same period of 2022, indicating a significant increase in investment outflows[22] - Cash and temporary cash investments at June 30, 2023, were $53,415,000, up from $46,048,000 in the previous year, showing an increase of approximately 16.4%[22] Capital Expenditures and Debt - Capital expenditures for the nine months ended June 30, 2023, totaled $727,738,000, up from $592,487,000 in the prior year, representing an increase of about 22.8%[22] - Long-term debt, net of current portion, increased to $2,383,685,000 as of June 30, 2023, compared to $2,083,409,000 in September 30, 2022, reflecting a rise of about 14.4%[20] Asset Management - Total assets increased to $8,106,632,000 as of June 30, 2023, compared to $7,896,262,000 in September 30, 2022, reflecting a growth of approximately 2.66%[20] - The company’s total segment assets amounted to $8,269,844 thousand, an increase from $7,896,262 thousand at September 30, 2022[90] Shareholder Returns and Dividends - Dividends declared per common share increased to $0.495 in Q3 2023 from $0.475 in Q3 2022[12] - The company declared dividends on common stock amounting to $45,444 thousand for the quarter, translating to $0.495 per share[79] Performance Shares and Compensation - The company granted 202,259 performance shares during the nine months ended June 30, 2023, with a weighted average fair value of $64.28 per share[38] - The Company granted 125,673 restricted stock units with a weighted average fair value of $58.67 per share for the nine months ended June 30, 2023[42] Regulatory and Rate Changes - A rate increase of $23 million was authorized by the Pennsylvania Public Utility Commission (PaPUC) effective August 1, 2023, following a settlement agreement[99] - The New York Public Service Commission (NYPSC) approved a pension and OPEB surcredit to customers effective October 1, 2022, which will remain in effect until December 31, 2024, or until modified[96] Environmental and Cleanup Costs - The company has estimated remaining environmental clean-up costs of approximately $3.6 million related to former manufactured gas plant sites[85] Derivative Financial Instruments - The Company reported derivative financial instruments with a total fair value of $114.9 million as of June 30, 2023, with Level 2 assets amounting to $106.6 million[55] - The fair value of the Company's derivative financial instruments includes natural gas price swaps and no-cost collars, which are utilized in the Exploration and Production segment[58]