National Fuel Gas Company (NYSE:NFG) Earnings Call Presentation

Acquisition Overview - National Fuel Gas Company (NFG) has agreed to acquire CenterPoint's Ohio regulated gas utility business (CNP Ohio) for $2.62 billion[5] - The purchase price represents approximately 1.6x CNP Ohio's estimated 2026 rate base[5, 11] - The transaction is expected to close in the fourth quarter of calendar year 2026[7, 11] Strategic Benefits - The acquisition will increase NFG's customer base to approximately 1.1 million[8, 12] - CNP Ohio has ~$1.6 billion in rate base expected at closing[7] - NFG's regulated rate base is expected to double with the addition of CNP Ohio[8, 16] - CNP Ohio is expected to have capital spending of $900 million over the next five years[8] Financial Impact - The acquisition is expected to be immediately accretive to regulated earnings[10, 24] - Consolidated adjusted earnings per share are expected to be neutral in fiscal year 2028 and accretive thereafter[10, 24] Financing and Credit Profile - A $1.2 billion seller promissory note with an interest rate of 6.5% and a maturity date of 364 days after closing is included in the financing structure[11] - Permanent transaction financing is expected to include $300 to $400 million in equity[11] - The company is targeting Debt/EBITDA of 2.5 – 3.0x and FFO/Net Debt of greater than 30% by the end of the fiscal year after closing[11] Regulatory Environment - CNP Ohio's Stipulation under the General Rate Case on file with PUCO includes an equity layer of 52.9% and a Return on Equity of 9.85%[12, 13] - The General Rate Case filed with PUCO in July 2025 includes an agreed upon revenue increase of $60 million[18]