National Fuel Gas Q1 Earnings Beat Estimates, Gas Production Up

Core Insights - National Fuel Gas Company (NFG) reported first-quarter fiscal 2026 adjusted operating earnings of $2.06 per share, exceeding the Zacks Consensus Estimate of $1.91 by 7.85% and increasing 24.1% from the previous year's $1.66 [1] - Total revenues for NFG reached $651.5 million, surpassing the Zacks Consensus Estimate of $647 million by 0.7% and reflecting an 18.6% increase from $549.5 million in the prior year [2] Financial Performance - NFG's total operating expenses decreased to $375.4 million, down 18.9% from $463.3 million in the year-ago quarter, while operating income surged to $276.1 million, up 220.3% from $86.2 million [4] - GAAP earnings for the quarter were reported at $1.98 per share, a significant increase of 304.1% from 49 cents in the year-ago quarter [1] Segment Analysis - Utility segment revenues totaled $259.05 million, up 13.4% from $228.4 million in the year-ago quarter [3] - Integrated upstream and Gathering and Other segments generated revenues of $323.2 million, reflecting a 28.1% increase from $252.4 million in the previous year [3] - Pipeline and Storage segment revenues amounted to $69.2 million, a slight increase of 0.6% from $68.8 million recorded in the year-ago quarter [3] Production and Cash Flow - Seneca produced 109 billion cubic feet (Bcf) of natural gas during the fiscal first quarter, an increase of 11 Bcf, or 12%, from the prior-year level, attributed to new Utica pads in Tioga County [5] - As of December 31, 2025, NFG had cash and temporary cash investments of $271.4 million, a significant rise from $43.2 million as of September 30, 2025 [6] - Net cash provided by operating activities for the first quarter totaled $274.9 million, compared to $220.1 million in the previous year [6] Guidance and Future Outlook - NFG reiterated its guidance for adjusted earnings per share for fiscal 2026, projecting a range between $7.60 and $8.10 [7] - The company expects capital expenditure for fiscal 2026 to be in the range of $0.96 billion to $1.07 billion, with production anticipated to be between 440-455 Bcf [8]