Why Is National Fuel Gas (NFG) Up 4.6% Since Last Earnings Report?

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].