| Third Quarter Results | | | Three Months Ended June 30, | | | | --- | --- | --- | --- | --- | --- | | (Millions) | | | | (Per Diluted Common Share) | | | 2025 | | 2024 | 2025 | 2024 | | | Adjusted (Loss) Earnings* by Segment | | | | | | | Gas Utility $(10.0)$(11.0) | | | | | | | Gas Marketing | 5.3 | 1.0 | | | | | Midstream | 16.2 | 13.9 | | | | | Other | (7.4) | (8.2) | | | | | Total | $4.1 | $(4.3) | $ 0.01 | $ | (0.14) | | Fair value and timing adjustments, pre-tax | 22.4 | (6.2) | 0.37 | | (0.11) | | ...

Market Overview - The S&P 500 index has experienced an increase of over 8% year-to-date despite a significant decline in early April due to tariff announcements from the Trump administration, indicating underlying market uncertainty [1] - Investor sentiment was affected in late July following the Federal Reserve's decision to maintain interest rates amid persistent inflation [1] Qifu Technology - Qifu Technology Inc. (NASDAQ: QFIN) is undergoing a rebranding to Qfin Holdings and has shown strong year-over-year profit growth, with a non-GAAP net income increase of 59.9% in the latest quarter [3] - The company has established new partnerships with mid-to-large municipal banks in China, resulting in a 144% year-over-year growth in loan volume for its technology solutions business [4] - Current stock price is $33.65, with a 12-month price forecast of $51.73, indicating a potential upside of 53.74% [2] Expand Energy - Expand Energy Corp. (formerly Chesapeake, NASDAQ: EXE) is positioned to benefit from increasing natural gas demand, particularly in the AI and data center sectors [7] - The company reported revenue of $3.7 billion, significantly exceeding analyst expectations of $2.1 billion, although it missed EPS estimates by 4 cents [8] - Current stock price is $101.97, with a 12-month price forecast of $129.50, suggesting a 27% upside potential [6] FTAI Aviation - FTAI Aviation Ltd. (NASDAQ: FTAI) has transitioned from losses to profitability, reporting a major EPS beat of 24 cents per share, driven by strong aerospace product performance [11] - The company has increased revenue by over 52% in the last year and is expected to continue double-digit growth [11] - Current stock price is $137.32, with a 12-month price forecast of $174.33, indicating a potential upside of 26.95% [10]

Core Viewpoint - Orca Energy Group Inc. has initiated arbitration proceedings against the United Republic of Tanzania and Tanzania Petroleum Development Corporation (TPDC) due to multiple breaches related to the Songo Songo Gas-to-Electricity Project, which threatens the project's viability and the company's investment rights [2][5][6]. Summary by Relevant Sections Company Overview - Orca Energy Group Inc. is an international public company engaged in natural gas development and supply in Tanzania through its subsidiary, PanAfrican Energy Tanzania Limited (PAET) [7]. Legal Actions and Claims - The company has filed three claims against Tanzania and TPDC, citing breaches of the Bilateral Investment Treaty (BIT), the Production Sharing Agreement (PSA), and the Gas Agreement (GA) [2][5]. - The claims include failure to extend the Songo Songo Development Licence, forcing the continuation of the Protected Gas regime, and failure to pay royalties owed under the contractual framework [5]. Project Valuation and Damages - The Songo Songo Gas-to-Electricity Project is currently valued at approximately US$1.2 billion, with the exact amount of damages to be determined during arbitration proceedings [3][5]. - The company plans to appoint a quantum expert to prepare a professional damages assessment for the arbitration tribunal [3]. Legal Representation - PAEM and PAET are represented by Boies Schiller Flexner LLP, a law firm known for its successful claims in international arbitration, including against Tanzania [4]. CEO's Statement - The CEO expressed disappointment over the need to initiate arbitration after two decades of partnership, emphasizing the company's commitment to resolving issues amicably and unlocking the project's value for all stakeholders [6].

Group 1 - The National Energy Regulatory Council (NERC) has published updated data for the natural gas sector, indicating that the weighted average cost of capital (WACC) for the Company in 2026 will be 6.35 percent, down from 6.59 percent in 2025 [1] - The forecasted regulated asset base (RAB) for the Company in 2026 is EUR 169.2 million, which will be used to determine the upper limit for liquefied natural gas regasification revenues [1] - The adjusted WACC for 2025 reflects changes in the corporate income tax rate in Lithuania, which will be 16 percent starting January 1, 2025 [2] Group 2 - The determined rate of return on investments is expected to ensure stable cash flow from regulated activities, positively impacting the Company's long-term financial results [2]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported oil and gas sales of $344 million, a 24% increase compared to the previous year despite a 14% decrease in production, averaging 1.23 Bcfe per day [9][10] - Adjusted net income for the quarter was $40 million, or $0.13 per diluted share, compared to a loss in Q2 2024 [10][11] - EBITDAX for the quarter was $260 million, with operating cash flow of $210 million [9][10] Business Line Data and Key Metrics Changes - The company turned 21 wells to sales in the first half of 2025, with an average initial production rate of 25 million cubic feet per day [7][10] - The average lateral length for wells turned to sales in the legacy Haynesville area was 11,803 feet, while the Western Haynesville wells had an average lateral length of 7,933 feet [24][22] - The company drilled 16 wells in the first half of 2025, with a total of 19 wells drilled so far this year [13][10] Market Data and Key Metrics Changes - The average NYMEX settlement price for Q2 2025 was $3.44, while the average Henry Hub spot price was $3.16 [11] - The realized gas price for the second quarter was $3.20, reflecting a $0.42 basis differential compared to the NYMEX settlement price [11] Company Strategy and Development Direction - The company is focused on building its asset base in the Western Haynesville, with plans to drill 19 net wells and turn 13 net wells to sales in 2025 [38] - A new gas treating plant has been put into operation, increasing treating capacity by 400 million cubic feet per day [5][39] - The company plans to divest certain non-core properties to accelerate deleveraging of its balance sheet [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth in natural gas demand and the potential for LNG and industrial demand [8][40] - The company is adjusting its production strategy to optimize long-term value, focusing on disciplined drawdown of wells [74][76] - Management indicated that they are not considering issuing equity to fund growth, instead focusing on divesting non-core assets to improve the balance sheet [68][70] Other Important Information - The company has a total of 1,105,000 gross and 826,741 net acres prospective for commercial development in the Haynesville and Bossier Shales [16] - The average lateral length in the drilling inventory has increased to 9,686 feet, providing over 30 years of future drilling locations based on current activity levels [20][21] Q&A Session Summary Question: Insights on Western Haynesville step-out wells - Management discussed the positive confirmation of initial reservoir pressure and productivity from the Jennings well, which was drilled faster and cheaper than previous wells [44][47] Question: Implications of reduced well guidance for 2027 targets - Management clarified that the reduction in well guidance does not significantly impact the 2027 targets, as drilling speeds are improving [56][58] Question: Non-core asset sales strategy - Management emphasized that the focus is on selling non-core drilling inventory rather than production reserves, aiming to create value for the company [83][85] Question: Coring program objectives - The coring program aims to gather data for better understanding of the geology and to optimize completions, aligning with the company's long-term development strategy [87][88]

Syria’s new government is set for a boost with Qatar agreeing to pay for increased natural gas supplies to the war-torn country, according to a Qatari official https://t.co/7Yacl7tGHq ...

Financial Data and Key Metrics Changes - National Fuel Gas Company reported a 66% increase in adjusted operating results compared to the previous year, driven by higher natural gas prices and lower per unit operating costs [17] - The company narrowed its earnings guidance for fiscal 2025 to a range of $6.8 to $6.95 per share, reflecting positive momentum across the company [17][18] - For fiscal 2026, the company anticipates earnings per share in the range of $8 to $8.5, representing a 20% increase from fiscal 2025 at the midpoint [19] Business Line Data and Key Metrics Changes - Production at Seneca's Eastern Development Area increased by 16% year-over-year, with expectations for full-year production to rise approximately 8% compared to fiscal 2024 [5][6] - The company raised its production guidance for fiscal 2025 to a range of 420 Bcf to 425 Bcf, an 8% increase at the midpoint year-over-year [31] - For fiscal 2026, production is expected to grow by 6% at the midpoint, with capital expenditures projected to decrease by 4% [33] Market Data and Key Metrics Changes - The company noted that U.S. LNG demand recently exceeded 16 Bcf per day, with gas-fired power generation reaching record seasonal peaks [36] - Despite increased U.S. gas production, storage levels have remained near the five-year average, indicating resilient structural demand [36] Company Strategy and Development Direction - National Fuel is focused on organic growth, with ongoing investments in system modernization and pipeline expansion projects [8][11] - The company is well-positioned to participate in the anticipated infrastructure build-out in Pennsylvania, with significant investments announced in the state [12] - The company plans to file a rate case for its regulated subsidiaries in fiscal 2026, aiming to enhance revenue from its utility business [22][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the natural gas industry's growth, citing high demand domestically and abroad [14] - The company highlighted the importance of maintaining balance sheet flexibility while exploring growth opportunities [43] - Management acknowledged the potential for larger-scale projects in the future, contingent on permitting reforms [82] Other Important Information - The company raised its dividend for the 55th consecutive year to an annual rate of $2.14 per share, reflecting strong results and confidence in long-term outlook [11] - The company is evaluating the timing of a rate case for its Supply Corporation, with no projected incremental revenue until early fiscal 2027 [22] Q&A Session Summary Question: On the buyback pause and capital allocation - Management indicated that the decision to pause the buyback program was driven by capital allocation priorities, focusing on balance sheet flexibility and growth opportunities [43][44] Question: Impact of cash taxes in 2026 and beyond - Management expects cash tax rates to be in the high single digits for the current year, moving to low to mid single digits next year due to recent tax law changes [45][46] Question: Tioga pathway project spending cadence - Construction for the Tioga pathway project is set to begin in spring, with the bulk of spending occurring in summer [49] Question: Industry trends on service cost inflation - Management noted that they are not seeing significant inflationary pressure on service costs, with expectations for costs to remain stable [51][52] Question: Supply agreements with new egress in Northeast Pennsylvania - Management expressed excitement about opportunities arising from new egress projects, emphasizing the company's strong position due to deep inventory and credit rating [56][57] Question: NESE and Constitution pipeline projects - Management highlighted the positive implications of the NESE project for existing firm transportation and potential demand growth, while also acknowledging challenges with the Constitution project [66][67] Question: Well productivity gains in fiscal 2026 guidance - Management indicated that current guidance reflects ongoing improvements in well productivity, with potential for further gains as engineering efforts continue [70][72]

Financial Data and Key Metrics Changes - National Fuel Gas Company reported a 66% increase in adjusted operating results compared to the previous year, driven by higher natural gas prices and lower per unit operating costs at Seneca [15][29] - The company narrowed its earnings guidance for fiscal 2025 to a range of $6.80 to $6.95 per share, reflecting positive momentum across the company despite a reduction in NYMEX forecast from $3.50 to $3.25 for the fourth quarter [15][16] - For fiscal 2026, the company anticipates earnings per share in the range of $8.00 to $8.50, representing a 20% increase from fiscal 2025 at the midpoint [17][27] Business Line Data and Key Metrics Changes - Production at Seneca increased by 16% year-over-year, with guidance for full-year production expected to rise approximately 8% compared to fiscal 2024 [4][5] - The company raised its production guidance for fiscal 2025 to a new target range of 420 Bcf to 425 Bcf, an 8% increase at the midpoint year-over-year [30] - For fiscal 2026, production is projected to grow by 6% at the midpoint, with capital expenditures expected to decrease by 4% [31][32] Market Data and Key Metrics Changes - The natural gas market outlook remains constructive, supported by strong supply and demand fundamentals, with U.S. LNG demand exceeding 16 Bcf per day [33][34] - The company noted that while U.S. gas production has increased, storage levels have remained near the five-year average, indicating resilient structural demand [33] Company Strategy and Development Direction - National Fuel is focused on organic growth, with ongoing investments in modernization and expansion projects, including the Shippingport Lateral and Tioga Pathway projects [7][25] - The company aims to achieve mid-single-digit rate base growth over the next several years while continuing to invest in system modernization [6][28] - Management emphasized the importance of infrastructure to support growing energy demand, particularly in Pennsylvania, where significant investments have been announced [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the natural gas industry's future, highlighting that demand for natural gas is at all-time highs both domestically and abroad [13][14] - The company is well-positioned to capitalize on new infrastructure developments and has a strong balance sheet to support growth initiatives [28] - Management acknowledged the need for permitting reform to facilitate larger-scale projects in the future [77] Other Important Information - The company raised its dividend for the 55th consecutive year to an annual rate of $2.14 per share, reflecting strong results and confidence in the long-term outlook [10] - National Fuel's capital spending guidance for fiscal 2025 remains unchanged, with a modest increase projected for fiscal 2026 due to inflationary pressures [23][24] Q&A Session Summary Question: On the buyback pause and capital allocation - Management indicated that the decision to pause the buyback program was driven by capital allocation priorities, focusing on balance sheet flexibility for growth opportunities [39][40] Question: Impact of cash taxes in 2026 and beyond - Management expects cash tax rates to be in the high single digits for the current year, moving to low to mid-single digits next year due to changes in tax legislation [42][43] Question: Tioga Pathway project spending cadence - Construction for the Tioga Pathway project will begin in spring, with the bulk of spending occurring in summer as contractors install the lines [46] Question: Industry trends on service costs - Management noted that while there are inflationary pressures, they do not expect significant increases in service costs and anticipate a neutral to slightly down trend overall [48][49] Question: Supply agreements with new egress in Northeast Pennsylvania - Management expressed excitement about opportunities arising from new egress projects and highlighted the company's strong position due to deep inventory and an investment-grade credit rating [52][53] Question: Growth opportunities in regulated pipeline investments - Management emphasized organic growth as the top priority, with ongoing projects like Shippingport and Tioga Pathway seen as important steps, while larger-scale projects will require permitting reform [75][77]

Financial Performance & Guidance - The company projects a 36-39% increase in FY25 earnings compared to FY24 [54] - The company anticipates a consolidated 3-year Adjusted EPS CAGR greater than 10% from FY24-FY27E [52] - The company's FY26 Adjusted EPS guidance varies based on NYMEX pricing, with estimates ranging from $6.35-$6.85 at $2.30 NYMEX to $9.75-$10.25 at $3.90 NYMEX [186] - The company returned over $650 million to shareholders in the last 3 years [41] Operational Highlights - Seneca Resources' current net production is approximately 1.2 Bcf/day [22] - The company has reduced methane emissions by 17% since 2020 [13, 50] - The company's Utility segment has approximately 755,000 customers [17] - The company's Pipeline & Storage segment has a total rate base of $1.6 billion [26] Capital Expenditure & Development - The company's Seneca Resources is driving a 30% improvement in capital efficiency since FY23 [76] - The company's Tioga Utica wells deliver over 2x the well productivity versus legacy WDA program [75] - The company's Shippingport Lateral Project will initially have a capacity of 205,000 Dth/day [91]

Financial Performance - National Fuel Gas (NFG) reported revenue of $531.83 million for the quarter ended June 2025, reflecting a year-over-year increase of 27.4% [1] - Earnings per share (EPS) for the quarter was $1.64, compared to $0.99 in the same quarter last year, indicating a significant improvement [1] - The reported revenue was below the Zacks Consensus Estimate of $617.15 million by 13.82%, while the EPS exceeded the consensus estimate of $1.50 by 9.33% [1] Key Metrics - Total production reached 111,588.00 MMcfe, surpassing the average estimate of 109,269.00 MMcfe from two analysts [4] - Total operating revenues from Pipeline and Storage were $70.5 million, which was 33.1% lower year-over-year and below the average estimate of $106.61 million [4] - Total operating revenues from Gathering were $157.52 million, significantly higher than the estimated $66.85 million, representing a 162% increase year-over-year [4] - Utility revenues amounted to $157.45 million, exceeding the average estimate of $146.55 million, with a year-over-year increase of 26% [4] - Revenue from external customers in Exploration and Production was $303.88 million, slightly above the estimated $302.12 million, marking a 37.6% year-over-year increase [4] Stock Performance - Shares of National Fuel Gas have returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]