National Fuel Gas Q1 Earnings Beat Estimates, Revenues Increase Y/Y

Core Insights - National Fuel Gas Company (NFG) reported first-quarter fiscal 2025 adjusted operating earnings of $1.66 per share, exceeding the Zacks Consensus Estimate of $1.57 by 5.7% and increasing 13.7% from $1.46 in the same quarter last year [1] - Total revenues for NFG were $549.5 million, missing the Zacks Consensus Estimate of $594 million by 7.5%, but reflecting a 4.6% increase from $525.4 million in the prior year [2] - The company has raised its guidance for fiscal 2025 adjusted earnings per share to a range of $6.50-$7.00, up from the previous $5.50-$6.00, driven by higher forecasted natural gas prices and improved segment outlooks [7] Financial Performance - NFG's total operating expenses rose 45.6% year over year to $463.3 million, primarily due to increased purchased gas costs and asset impairments [4] - Operating income decreased to $86.2 million from $207.1 million in the year-ago quarter [4] - Interest expense on long-term debt increased by 17.2% to $33.4 million compared to $28.5 million in the previous year [4] Segment Performance - Utility segment revenues increased by 13.1% to $228.4 million from $201.9 million in the prior year [2] - Exploration and Production revenues decreased by 2% to $248.9 million from $254 million year over year [3] - Pipeline and Storage revenues grew by 4% to $72.2 million from $69.4 million in the year-ago quarter [3] Production and Cash Flow - Seneca produced 97.7 billion cubic feet (Bcf) of natural gas, a decrease of 3 Bcf or 3% from the prior year, attributed to the timing of new well turn-in line dates [5] - As of December 31, 2024, NFG had cash and temporary cash investments of $48.7 million, up from $38.2 million as of September 30, 2024 [6] - 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 same period last year [6] Guidance and Future Outlook - NFG expects capital expenditures for fiscal 2025 to be between $885-$960 million, slightly lower than the previous range of $885-$970 million [8] - The 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 of 400-420 Bcf [8]