Natural Gas Demand Shift Supports JPMorgan’s Higher Target for National Fuel Gas (NFG)

Core Viewpoint - National Fuel Gas Company (NYSE:NFG) is positioned as a strong investment opportunity, particularly following its acquisition of CenterPoint Energy's Ohio natural gas utility business, which is expected to enhance its regulated cash flows and market presence [2][4][5]. Group 1: Acquisition Details - National Fuel Gas Company has entered into a definitive agreement to acquire CenterPoint Energy's Ohio natural gas utility business for $2.62 billion on a cash-free, debt-free basis [3][4]. - The acquisition values the business at approximately 1.6 times its estimated 2026 rate base of $1.6 billion, and it includes a workforce that operates around 5,900 miles of distribution and transmission pipelines [4]. - The transaction is anticipated to close in the fourth quarter of 2026, significantly expanding National Fuel's regulated footprint and doubling its gas utility rate base [5]. Group 2: Market Outlook and Analyst Ratings - JPMorgan analyst Zach Parham raised the price target for National Fuel Gas Company to $96 from $95, maintaining a Neutral rating, citing a shift in natural gas demand and growing supply-side risks for oil and liquids [2]. - The firm notes that the long-awaited demand inflection for natural gas has finally arrived, which could positively impact National Fuel's market position [2].