National Fuel Reports Third Quarter Earnings
National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the third quarter of its 2017 fiscal year and for the nine months ended June 30, 2017.
FISCAL 2017 THIRD QUARTER SUMMARY
- Consolidated net income of $59.7 million, or $0.69 per share, compared to consolidated net income of $8.3 million, or $0.10 per share, and operating results of $58.1 million, or $0.68 per share, in the prior year (see reconciliation below)
- Adjusted EBITDA of $179.0 million versus $189.8 million in the prior year (non-GAAP reconciliation on page 23)
- Gross natural gas production in Appalachia of 567 MMcf per day, a 6% increase from the prior year
- Net production of 42.7 Bcfe, a 3% decrease from prior year
- Average natural gas prices, after the impact of hedging, of $2.94 per Mcf, up $0.08 per Mcf from the prior year
- Average oil prices, after the impact of hedging, of $53.02 per Bbl, down $5.77 per Bbl from the prior year
- Gathering revenues of $26.9 million on 48.8 Bcf of system throughput, both an increase of 5% from the prior year
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OPERATING RESULTS |
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| Three Months Ended | Nine Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| (in thousands except per share amounts) | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
| Reported GAAP earnings (loss) | $ | 59,714 | $ | 8,286 | $ | 237,906 | $ | (328,510 | ) | |||||||||
| Items impacting comparability: | ||||||||||||||||||
| Impairment of oil and gas properties (E&P) | 82,658 | 915,552 | ||||||||||||||||
| Tax impact of impairment of oil and gas properties | (34,716 | ) | (384,531 | ) | ||||||||||||||
| Joint development agreement professional fees (E&P) | 3,173 | 7,855 | ||||||||||||||||
| Tax impact of joint development agreement professional fees | (1,333 | ) | (3,299 | ) | ||||||||||||||
| Operating Results | $ | 59,714 | $ | 58,068 | $ | 237,906 | $ | 207,067 | ||||||||||
| Reported GAAP earnings (loss) per share | $ | 0.69 | $ | 0.10 | $ | 2.77 | $ | (3.87 | ) | |||||||||
| Items impacting comparability: | ||||||||||||||||||
| Impairment of oil and gas properties (E&P) | 0.97 | 10.80 | ||||||||||||||||
| Tax impact of impairment of oil and gas properties | (0.41 | ) | (4.54 | ) | ||||||||||||||
| Joint development agreement professional fees (E&P) | 0.04 | 0.09 | ||||||||||||||||
| Tax impact of joint development agreement professional fees | (0.02 | ) | (0.04 | ) | ||||||||||||||
| Earnings per share impact of diluted shares | (0.01 | ) | ||||||||||||||||
| Operating Results per diluted share | $ | 0.69 | $ | 0.68 | $ | 2.77 | $ | 2.43 | ||||||||||
MANAGEMENT COMMENTS
Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: “Our fiscal third quarter was a strong one with each of our business segments posting solid financial results that were in-line with expectations. Across the system, our talented teams continue to execute on our operational plans. As is typical during the summer period, our utility and transmission pipeline construction crews are busy maintaining the safety and integrity of our thousands of miles of pipelines that will assure safe, reliable, and affordable natural gas services for our region and local communities.
“As we look ahead, we continue to manage around the delay in the Northern Access Project and see plenty of opportunity in the meantime to extract value from our world class natural gas assets in Appalachia. After a year of testing, we believe we have de-risked the Utica potential in our Western Development Area, adding years of economic drilling inventory on the very same acreage we have already developed for the Marcellus. Over the next 18 months, we will continue to optimize our well designs and transition into a Utica development program that will leverage existing upstream and midstream infrastructure to drive capital, operational, and marketing efficiencies. While the commodities futures markets indicate that Seneca Resources, our exploration and production company, will likely achieve lower prices for its production next year, our proven success in driving down finding and development costs and our ability to develop our upstream and midstream assets efficiently allows us to continue to grow our integrated business, maintain a strong financial position, and add shareholder value throughout the commodity price cycle.”
DISCUSSION OF RESULTS BY SEGMENT
The following discussion of the earnings of each segment is summarized in a tabular form on pages 8 through 11 of this report. It may be helpful to refer to those tables while reviewing this discussion. Note that management defines Operating Results as reported GAAP earnings before items impacting comparability and Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, depreciation and amortization, interest and other income, impairments, items impacting comparability, and income taxes.
Upstream Business
Exploration and Production Segment
The Exploration and Production segment operations are carried out by Seneca Resources Corporation ("Seneca"). Seneca explores for, develops and produces natural gas and oil reserves, primarily in Pennsylvania and California.
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||||
| (in thousands except per share amounts) | 2017 | 2016 | Variance | 2017 | 2016 | Variance | |||||||||||||||||||
| Net Income / (Loss) | $ | 30,123 | $ | (19,165 | ) | $ | 49,288 | $ | 98,972 | $ | (469,586 | ) | $ | 568,558 | |||||||||||
| Net Income / (Loss) Per Share (Diluted) | $ | 0.35 | $ | (0.22 | ) | $ | 0.57 | $ | 1.15 | $ | (5.54 | ) | $ | 6.69 | |||||||||||
| Adjusted EBITDA | $ | 89,229 | $ | 97,924 | $ | (8,695 | ) | $ | 285,675 | $ | 268,673 | $ | 17,002 | ||||||||||||
Net income for the Exploration and Production segment in the third quarter was $30.1 million, or $0.35 per share, compared to a net loss of $19.2 million, or $0.22 per share, in the prior year third quarter. The $49.3 million increase in the segment’s earnings was primarily attributable to the non-recurrence of two items that reduced earnings in the prior year. In the prior year third quarter, Seneca recorded an $82.7 million ($47.9 million after-tax) ceiling test impairment charge to reduce the book value of Seneca’s oil and gas properties. Seneca also incurred $3.2 million ($1.8 million after-tax) in the prior year third quarter for professional and legal expenses related to the extension of the joint development agreement that Seneca executed in June 2016.
Excluding these items, operating results for the segment declined $0.5 million, or $0.01 per share, as the impact of higher realized natural gas prices, lower depreciation, depletion and amortization (“DD&A”) expense, and a lower effective income tax rate were more than offset by a decline in net natural gas and oil production, lower realized oil prices and an increase in lease operating and transportation (“LOE”) expense.
Over the past two years, Seneca significantly reduced its capital expenditures in response to low commodity prices by entering into a Joint Development Agreement (“JDA”), where a partner agreed to participate in 75 new Marcellus wells as an 80 percent working interest owner, and reducing the rig count in Appalachia and activity in California. As a result, Seneca's net natural gas and oil production declined 1.3 billion cubic feet equivalent ("Bcfe"), or 3 percent, to 42.7 Bcfe in the third quarter. Net natural gas production was down nearly 1.0 Bcf due mainly to a lower average revenue interest on production from the Western Development Area (“WDA”) resulting from new JDA wells as well as natural declines in Marcellus production from the Eastern Development Area (“EDA”). Seneca’s oil production decreased 58 thousand barrels ("Mbbl") due mainly to temporary changes in steam operations and a reduction in well workover activity at its North Midway Sunset field in California, offset partially by increased activity at South Midway Sunset.
Seneca continues to grow its base of gross natural gas production. Average daily gross natural gas production during the quarter increased 6 percent to 567 million cubic feet (“MMcf’) per day driven primarily by new Marcellus and Utica wells in Appalachia. In the WDA, average daily natural gas production increased approximately 38 MMcf per day, or 16 percent, to 284 MMcf per day during the quarter. Seneca is now producing from 63 of the 75 Marcellus wells that are being developed in the Clermont / Rich Valley area under the JDA entered into with a partner in fiscal 2016. The 12 remaining JDA wells are expected to be completed and brought on-line in the first half of fiscal 2018.
In the EDA, average daily gross natural gas production decreased 4 MMcf per day, or 1 percent, to 283 MMcf per day as natural declines in Marcellus production from Tioga and Lycoming counties were partially offset by new production from the Company’s Utica well on DCNR Tract 007 in Tioga County, Pa., which has produced nearly 2.5 Bcf since it was first turned on-line in November 2016. In May, Seneca added a second rig and resumed Marcellus development activities in Lycoming County, Pa., which is expected to arrest natural production declines and maintain a base of production that will utilize firm transportation capacity on the Atlantic Sunrise pipeline expansion project forecasted to be available in the summer of 2018.
Seneca's average realized natural gas price, after the impact of hedging, for the third quarter was $2.94 per thousand cubic feet ("Mcf"), an increase of $0.08 per Mcf versus the prior year. Seneca's average realized oil price, after the impact of hedging, was $53.02 per barrel ("Bbl"), a decrease of $5.77 per Bbl. Seneca's average realized natural gas and oil prices benefited from an uplift of $0.35 per Mcf and $7.38 per Bbl, respectively, from financial hedges settled during the quarter.
LOE increased $1.8 million, or $0.07 per Mcf equivalent ("Mcfe") on a cost per unit of production basis, due primarily to higher steam fuel and well repair costs in California offset partially by lower gathering and compression costs in Appalachia. DD&A expense decreased $3.8 million due to lower production and a decrease in Seneca’s full cost pool depletion rate. Seneca’s per unit DD&A decreased by $0.07 per Mcfe to $0.64 per Mcfe due mainly to a lower depletable fixed asset balance resulting from the ceiling test impairment charges recorded in the second half of fiscal 2016.
A decrease in Seneca’s effective tax rate increased the segment’s earnings by $2.4 million in the third quarter. The decrease in the effective tax rate was due primarily to an enhanced oil recovery tax credit related to Seneca’s California properties. This credit was applicable this year as a result of relatively low domestic crude oil prices.
Midstream Businesses
Pipeline and Storage Segment
The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||
| (in thousands except per share amounts) | 2017 | 2016 | Variance | 2017 | 2016 | Variance | ||||||||||||||||||||
| Net Income / (Loss) | $ | 16,031 | $ | 17,323 | $ | (1,292 | ) | $ | 54,656 | $ | 59,794 | $ | (5,138 | ) | ||||||||||||
| Net Income / (Loss) Per Share (Diluted) | $ | 0.19 | $ | 0.20 | $ | (0.01 | ) | $ | 0.64 | $ | 0.71 | $ | (0.07 | ) | ||||||||||||
| Adjusted EBITDA | $ | 44,163 | $ | 48,515 | $ | (4,352 | ) | $ | 141,279 | $ | 152,929 | $ | (11,650 | ) | ||||||||||||
The Pipeline and Storage segment's third quarter earnings decreased $1.3 million, or 7 percent, from the prior year due to a decline in operating revenues offset partially by a lower effective income tax rate. The $4.1 million decrease in operating revenues was expected due to a reduction in Supply Corporation and Empire’s rates related to their respective rate case settlements that went into effect in 2016, lower reservation revenues resulting from recent contract terminations and restructurings, and a decline in short-term interruptible transportation service in the current quarter.
Gathering Segment
The Gathering segment’s operations are carried out by National Fuel Gas Midstream Corporation’s subsidiary limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region which currently delivers Seneca’s gross Appalachian production to the interstate pipeline system.
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||||
| (in thousands except per share amounts) | 2017 | 2016 | Variance | 2017 | 2016 | Variance | |||||||||||||||||||
| Net Income / (Loss) | $ | 10,107 | $ | 9,473 | $ | 634 | $ | 31,373 | $ | 21,962 | $ | 9,411 | |||||||||||||
| Net Income / (Loss) Per Share (Diluted) | $ | 0.12 | $ | 0.11 | $ | 0.01 | $ | 0.37 | $ | 0.26 | $ | 0.11 | |||||||||||||
| Adjusted EBITDA | $ | 23,901 | $ | 22,433 | $ | 1,468 | $ | 73,174 | $ | 57,722 | $ | 15,452 | |||||||||||||
The Gathering segment’s third quarter earnings increased $0.6 million, or 7 percent, versus the prior year due primarily to higher operating revenues. Operating revenues increased $1.4 million as the increase in Seneca’s gross natural gas production in Appalachia, which includes production from joint development wells, helped drive higher throughput across the Company’s gathering systems. The Gathering segment transported 48.8 Bcf on its systems in the third quarter, up 2.5 Bcf or 5 percent from the prior year. Higher depreciation expense associated with new gathering and compression assets placed in service during the last twelve months partially offset the impact of higher operating revenues.
Downstream Businesses
Utility Segment
The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||
| (in thousands except per share amounts) | 2017 | 2016 | Variance | 2017 | 2016 | Variance | ||||||||||||||||||||
| Net Income / (Loss) | $ | 4,348 | $ | 2,179 | $ | 2,169 | $ | 51,103 | $ | 52,745 | $ | (1,642 | ) | |||||||||||||
| Net Income / (Loss) Per Share (Diluted) | $ | 0.05 | $ | 0.03 | $ | 0.02 | $ | 0.59 | $ | 0.62 | $ | (0.03 | ) | |||||||||||||
| Adjusted EBITDA | $ | 25,322 | $ | 22,900 | $ | 2,422 | $ | 139,232 | $ | 138,284 | $ | 948 | ||||||||||||||
The Utility segment’s third quarter earnings increased $2.2 million due primarily to lower O&M expense offset partially by higher DD&A expenses. O&M expense decreased $2.5 million versus the prior year due mainly to lower pension and personnel costs. DD&A expense increased $0.9 million due to higher average plant balances for the quarter ended June 30, 2017, which was primarily driven by the replacement of Distribution’s customer information system that was placed in service in May 2016.
Energy Marketing Segment
The Energy Marketing segment's operations are carried out by National Fuel Resources, Inc. (“NFR”). NFR markets natural gas to industrial, wholesale, commercial, public authority and residential customers primarily in western and central New York and northwestern Pennsylvania, offering competitively priced natural gas to its customers.
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||
| (in thousands except per share amounts) | 2017 | 2016 | Variance | 2017 | 2016 | Variance | ||||||||||||||||||||
| Net Income / (Loss) | $ | (564 | ) | $ | (590 | ) | $ | 26 | $ | 2,122 | $ | 4,117 | $ | (1,995 | ) | |||||||||||
| Net Income / (Loss) Per Share (Diluted) | $ | (0.01 | ) | $ | (0.01 | ) | $ | — | $ | 0.02 | $ | 0.05 | $ | (0.03 | ) | |||||||||||
| Adjusted EBITDA | $ | (1,017 | ) | $ | (930 | ) | $ | (87 | ) | $ | 3,213 | $ | 6,569 | $ | (3,356 | ) | ||||||||||
The Energy Marketing segment's third quarter earnings were largely unchanged when compared to the prior year.
Corporate and All Other
The Corporate and All Other category had a net loss of $0.3 million for the third quarter compared to a net loss of $0.9 million in the prior year. The $0.6 million improvement impacted consolidated earnings by less than $0.01 per share.
GUIDANCE
The Company is raising and tightening its earnings guidance for fiscal 2017 to a range of $3.25 to $3.35 per share to reflect the impact of actual results for the nine months ended June 30, 2017, and updates to key forecast assumptions, including revisions to the Exploration and Production segment’s forecasted production, oil pricing and operating expense assumptions, as outlined in the table below.
The Company is also initiating preliminary earnings, production, capital expenditures, and certain business segment operational guidance for fiscal 2018. National Fuel is projecting that its fiscal 2018 earnings will be within a range of $2.70 to $3.05 per share, or $2.875 per share at the midpoint of the range. The $0.425 per share decrease from the fiscal 2017 earnings guidance midpoint is being driven primarily by lower expected price realizations after hedging on Seneca’s natural gas and oil production and higher expected operating costs at the Company’s regulated businesses, offset partially by the impact of normal weather on the Utility segment's earnings and an increase in projected natural gas production in Appalachia, which will benefit earnings for the Company’s Exploration and Production and Gathering segments.
Seneca’s fiscal 2018 net production is expected to be in the range of 185 to 200 Bcfe. Natural gas production in the East Division is expected to be in a range of 165 to 180 Bcf, an 11 percent increase versus fiscal 2017. Seneca added a second rig and resumed Marcellus shale development activities in Lycoming County, Pa. this past May, which is the main driver of the 17.5 Bcf increase. Seneca’s oil operations in California are expected to produce approximately 20 Bcfe, relatively flat versus fiscal 2017. The midpoint of the production range does not assume any price related curtailments.
Due to the expiration of physical firm sales and financial hedge contracts with favorable pricing relative to current market prices and hedge book, Seneca is projecting a significant decrease in natural gas and oil price realizations in fiscal 2018. Seneca’s fiscal 2018 natural gas production is 52 percent hedged at an average hedge price of $2.90 per MMBtu. Assuming NYMEX natural gas pricing of $3.00 per MMBtu, average Appalachian basin spot prices of $2.40 per MMBtu, and adjustments for transportation costs, contracted firm sale differentials, and Btu uplift, Seneca expects its fiscal 2018 net realized gas price after hedging to be approximately $2.55 per Mcf, which is a decrease of $0.41 per Mcf from Seneca’s realized pricing after hedging of $2.96 per Mcf for the nine months ended June 30, 2017. Seneca is approximately 45 percent hedged on an expected 3 million bbls of oil production in fiscal 2018 at an average hedge price of $55.46 per Bbl.
Additional details on the Company's forecast assumptions and business segment guidance for fiscal 2018 are outlined in the table below.
| Updated FY 2017 Guidance | Preliminary FY 2018 Guidance | |||||
| Consolidated Earnings per Share | $3.25 to $3.35 | $2.70 to $3.05 | ||||
| Capital Expenditures (Millions) | ||||||
| Exploration & Production (1) | $230 - $250 | $275 - $325 | ||||
| Pipeline & Storage | $100 - $110 | $110 - $140 | ||||
| Gathering | $35 - $45 | $60 - $80 | ||||
| Utility | $90 - $100 | $90 - $100 | ||||
| Consolidated Capital Expenditures | $455 - $505 | $535 - $645 | ||||
| Updated FY 2017 Guidance | Preliminary FY 2018 Guidance | |||||
| Exploration & Production Segment Guidance | ||||||
| Commodity Price Assumptions | ||||||
| NYMEX natural gas price | $3.00 /MMBtu | $3.00 /MMBtu | ||||
| Appalachian basin spot price | $2.00 /MMBtu | $2.40 /MMBtu | ||||
| NYMEX (WTI) crude oil price | $50.00 /Bbl | $50.00 /Bbl | ||||
| California oil price (% of WTI) | 92% | 92% | ||||
| Production (Bcfe) | ||||||
| East Division - Appalachia (2) | 150 to 160 | 165 to 180 | ||||
| West Division - California |
~ 20 |
~ 20 |
||||
| Total Production | 170 to 180 | 185 to 200 | ||||
| E&P Operating Costs ($/Mcfe) | ||||||
| LOE (3) | ~$0.95 | $0.90 - $1.00 | ||||
| G&A | ~$0.35 | $0.30 - $0.35 | ||||
| DD&A | ~$0.65 | $0.65 - $0.70 | ||||
| Other Business Segment Guidance | ||||||
| Gathering Segment Revenues (Millions) | ~$110 | $115 - $125 | ||||
| Pipeline & Storage Segment Revenues (Millions) | ~$295 | ~$295 | ||||
| (1) | Net of conveyance proceeds received from joint development partner for working interest in joint development wells. | |
| (2) | Seneca East Division - Appalachia production guidance assumes approximately 35 Bcf of spot sales in FY18. | |
| (3) | FY17 reflects full year average LOE. Fourth quarter FY17 LOE expected to be $1.00-$1.05 due to an increase in well workover and steam activity in California. | |
EARNINGS TELECONFERENCE
The Company will host a conference call on Friday, August 4, 2017, at 11 a.m. Eastern Time to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the NFG Investor Relations News & Events page at National Fuel’s website at investor.nationalfuelgas.com. For those without Internet access, audio access is also provided by dialing (toll-free) 844-862-1432, using conference ID number “51109130.” For those unable to listen to the live conference call, an audio replay will be available approximately two hours following the teleconference at the same website link and by phone at (toll-free) 855-859-2056 using conference ID number “51109130.” Both the webcast and a telephonic replay will be available until the close of business on Friday, August 11, 2017.
National Fuel is an integrated energy company reporting financial results for five operating segments: Exploration and Production, Pipeline and Storage, Gathering, Utility, and Energy Marketing. Additional information about National Fuel is available at www.nationalfuelgas.com.
Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the price of natural gas or oil; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; changes in price differentials between similar quantities of natural gas or oil sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks or pest infestation; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS | ||||||||||||||||||||||||||||||
| QUARTER ENDED JUNE 30, 2017 | ||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||
| Upstream | Midstream Businesses | Downstream Businesses | ||||||||||||||||||||||||||||
| Exploration & | Pipeline & | Energy | Corporate / | |||||||||||||||||||||||||||
| (Thousands of Dollars) | Production | Storage | Gathering | Utility | Marketing | All Other | Consolidated* | |||||||||||||||||||||||
| Third quarter 2016 GAAP earnings | $ | (19,165 | ) | $ | 17,323 | $ | 9,473 | $ | 2,179 | $ | (590 | ) | $ | (934 | ) | $ | 8,286 | |||||||||||||
| Items impacting comparability: | ||||||||||||||||||||||||||||||
| Impairment of oil and gas producing properties | 82,658 | 82,658 | ||||||||||||||||||||||||||||
| Tax impact of impairment of oil and gas producing properties | (34,716 | ) | (34,716 | ) | ||||||||||||||||||||||||||
| Joint development agreement professional fees | 3,173 | 3,173 | ||||||||||||||||||||||||||||
| Tax impact of joint development agreement professional fees | (1,333 | ) | (1,333 | ) | ||||||||||||||||||||||||||
| Third quarter 2016 operating results | 30,617 | 17,323 | 9,473 | 2,179 | (590 | ) | (934 | ) | 58,068 | |||||||||||||||||||||
| Drivers of operating results | ||||||||||||||||||||||||||||||
| Higher (lower) crude oil prices | (2,511 | ) | (2,511 | ) | ||||||||||||||||||||||||||
| Higher (lower) natural gas prices | 2,228 | 2,228 | ||||||||||||||||||||||||||||
| Higher (lower) natural gas production | (1,805 | ) | (1,805 | ) | ||||||||||||||||||||||||||
| Higher (lower) crude oil production | (2,229 | ) | (2,229 | ) | ||||||||||||||||||||||||||
| Derivative mark to market adjustments | 619 | 619 | ||||||||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | (1,150 | ) | (1,150 | ) | ||||||||||||||||||||||||||
| Lower (higher) depreciation / depletion | 2,490 | 331 | (340 | ) | (554 | ) | 1,927 | |||||||||||||||||||||||
| Higher (lower) transportation revenues | (2,380 | ) | (2,380 | ) | ||||||||||||||||||||||||||
| Higher (lower) gathering and processing revenues | 913 | 913 | ||||||||||||||||||||||||||||
| Lower (higher) other operating expenses | 1,769 | (392 | ) | 1,377 | ||||||||||||||||||||||||||
| Lower (higher) property, franchise and other taxes | (428 | ) | (328 | ) | (756 | ) | ||||||||||||||||||||||||
| Higher (lower) margins | (630 | ) | (630 | ) | ||||||||||||||||||||||||||
| Lower (higher) interest expense | (401 | ) | (401 | ) | ||||||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 2,383 | 1,214 | 291 | 987 | 1,580 | 6,455 | ||||||||||||||||||||||||
| All other / rounding | (91 | ) | (129 | ) | 171 | (33 | ) | 26 | 45 | (11 | ) | |||||||||||||||||||
| Third quarter 2017 GAAP earnings and operating results | $ | 30,123 | $ | 16,031 | $ | 10,107 | $ | 4,348 | $ | (564 | ) | $ | (331 | ) | $ | 59,714 | ||||||||||||||
| * Amounts do not reflect intercompany eliminations | ||||||||||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE | ||||||||||||||||||||||||||||||
| QUARTER ENDED JUNE 30, 2017 | ||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||
| Upstream | Midstream Businesses | Downstream Businesses | ||||||||||||||||||||||||||||
| Exploration & | Pipeline & | Energy | Corporate / | |||||||||||||||||||||||||||
| Production | Storage | Gathering | Utility | Marketing | All Other | Consolidated* | ||||||||||||||||||||||||
| Third quarter 2016 GAAP earnings | $ | (0.22 | ) | $ | 0.20 | $ | 0.11 | $ | 0.03 | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.10 | |||||||||||||
| Items impacting comparability: | ||||||||||||||||||||||||||||||
| Impairment of oil and gas producing properties | 0.97 | 0.97 | ||||||||||||||||||||||||||||
| Tax impact of impairment of oil and gas producing properties | (0.41 | ) | (0.41 | ) | ||||||||||||||||||||||||||
| Joint development agreement professional fees | 0.04 | 0.04 | ||||||||||||||||||||||||||||
| Tax impact of joint development agreement professional fees | (0.02 | ) | (0.02 | ) | ||||||||||||||||||||||||||
| Third quarter 2016 operating results | 0.36 | 0.20 | 0.11 | 0.03 | (0.01 | ) | (0.01 | ) | 0.68 | |||||||||||||||||||||
| Drivers of operating results | ||||||||||||||||||||||||||||||
| Higher (lower) crude oil prices | (0.03 | ) | (0.03 | ) | ||||||||||||||||||||||||||
| Higher (lower) natural gas prices | 0.03 | 0.03 | ||||||||||||||||||||||||||||
| Higher (lower) natural gas production | (0.02 | ) | (0.02 | ) | ||||||||||||||||||||||||||
| Higher (lower) crude oil production | (0.03 | ) | (0.03 | ) | ||||||||||||||||||||||||||
| Derivative mark to market adjustments | 0.01 | 0.01 | ||||||||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||||||||
| Lower (higher) depreciation / depletion | 0.03 | — | — | (0.01 | ) | 0.02 | ||||||||||||||||||||||||
| Higher (lower) transportation revenues | (0.03 | ) | (0.03 | ) | ||||||||||||||||||||||||||
| Higher (lower) gathering and processing revenues | 0.01 | 0.01 | ||||||||||||||||||||||||||||
| Lower (higher) other operating expenses | 0.02 | — | 0.02 | |||||||||||||||||||||||||||
| Lower (higher) property, franchise and other taxes | — | — | — | |||||||||||||||||||||||||||
| Higher (lower) margins | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||||||||
| Lower (higher) interest expense | — | — | ||||||||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 0.03 | 0.01 | — | 0.01 | 0.02 | 0.07 | ||||||||||||||||||||||||
| All other / rounding | (0.02 | ) | 0.01 | — | — | — | (0.01 | ) | (0.02 | ) | ||||||||||||||||||||
| Third quarter 2017 GAAP earnings and operating results | $ | 0.35 | $ | 0.19 | $ | 0.12 | $ | 0.05 | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.69 | ||||||||||||||
| * Amounts do not reflect intercompany eliminations | ||||||||||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS | ||||||||||||||||||||||||||||||
| NINE MONTHS ENDED JUNE 30, 2017 | ||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||
| Upstream | Midstream Businesses | Downstream Businesses | ||||||||||||||||||||||||||||
| Exploration & | Pipeline & | Energy | Corporate / | |||||||||||||||||||||||||||
| (Thousands of Dollars) | Production | Storage | Gathering | Utility | Marketing | All Other | Consolidated* | |||||||||||||||||||||||
| Nine months ended June 30, 2016 GAAP earnings | $ | (469,586 | ) | $ | 59,794 | $ | 21,962 | $ | 52,745 | $ | 4,117 | $ | 2,458 | $ | (328,510 | ) | ||||||||||||||
| Items impacting comparability: | ||||||||||||||||||||||||||||||
| Impairment of oil and gas producing properties | 915,552 | 915,552 | ||||||||||||||||||||||||||||
| Tax impact of impairment of oil and gas producing properties | (384,531 | ) | (384,531 | ) | ||||||||||||||||||||||||||
| Joint development agreement professional fees | 7,855 | 7,855 | ||||||||||||||||||||||||||||
| Tax impact of joint development agreement professional fees | (3,299 | ) | (3,299 | ) | ||||||||||||||||||||||||||
| Nine months ended June 30, 2016 operating results | 65,991 | 59,794 | 21,962 | 52,745 | 4,117 | 2,458 | 207,067 | |||||||||||||||||||||||
| Drivers of operating results | ||||||||||||||||||||||||||||||
| Higher (lower) crude oil prices | (4,889 | ) | (4,889 | ) | ||||||||||||||||||||||||||
| Higher (lower) natural gas prices | (2,960 | ) | (2,960 | ) | ||||||||||||||||||||||||||
| Higher (lower) natural gas production | 24,737 | 24,737 | ||||||||||||||||||||||||||||
| Higher (lower) crude oil production | (4,999 | ) | (4,999 | ) | ||||||||||||||||||||||||||
| Derivative mark to market adjustments | 510 | 510 | ||||||||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | (4,830 | ) | (4,830 | ) | ||||||||||||||||||||||||||
| Lower (higher) depreciation / depletion | 17,701 | 970 | (391 | ) | (2,594 | ) | 15,686 | |||||||||||||||||||||||
| Higher (lower) transportation revenues | (4,519 | ) | (4,519 | ) | ||||||||||||||||||||||||||
| Higher (lower) gathering and processing revenues | 10,927 | 10,927 | ||||||||||||||||||||||||||||
| Lower (higher) other operating expenses | 4,144 | (2,191 | ) | (930 | ) | (3,876 | ) | (1,059 | ) | (3,912 | ) | |||||||||||||||||||
| Lower (higher) property, franchise and other taxes | (655 | ) | (558 | ) | (1,213 | ) | ||||||||||||||||||||||||
| Regulatory true-up adjustments | 948 | 948 | ||||||||||||||||||||||||||||
| Higher (lower) usage | 2,209 | 2,209 | ||||||||||||||||||||||||||||
| Impact of new rates | 927 | 927 | ||||||||||||||||||||||||||||
| Higher (lower) margins | (1,932 | ) | (951 | ) | (2,883 | ) | ||||||||||||||||||||||||
| Higher (lower) AFUDC** | (469 | ) | (914 | ) | (1,383 | ) | ||||||||||||||||||||||||
| Lower (higher) interest expense | 1,048 | 1,048 | ||||||||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 3,395 | 1,731 | (563 | ) | 887 | (491 | ) | 4,959 | ||||||||||||||||||||||
| All other / rounding | (221 | ) | (102 | ) | 368 | 771 | (63 | ) | (277 | ) | 476 | |||||||||||||||||||
| Nine months ended June 30, 2017 GAAP earnings and operating results | $ | 98,972 | $ | 54,656 | $ | 31,373 | $ | 51,103 | $ | 2,122 | $ | (320 | ) | $ | 237,906 | |||||||||||||||
| * Amounts do not reflect intercompany eliminations | ||||||||||||||||||||||||||||||
| ** AFUDC = Allowance for Funds Used During Construction | ||||||||||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE | ||||||||||||||||||||||||||||||
| NINE MONTHS ENDED JUNE 30, 2017 | ||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||
| Upstream | Midstream Businesses | Downstream Businesses | ||||||||||||||||||||||||||||
| Exploration & | Pipeline & | Energy | Corporate / | |||||||||||||||||||||||||||
| Production | Storage | Gathering | Utility | Marketing | All Other | Consolidated* | ||||||||||||||||||||||||
| Nine months ended June 30, 2016 GAAP earnings | $ | (5.54 | ) | $ | 0.71 | $ | 0.26 | $ | 0.62 | $ | 0.05 | $ | 0.03 | $ | (3.87 | ) | ||||||||||||||
| Items impacting comparability: | ||||||||||||||||||||||||||||||
| Impairment of oil and gas producing properties | 10.80 | 10.80 | ||||||||||||||||||||||||||||
| Tax impact of impairment of oil and gas producing properties | (4.54 | ) | (4.54 | ) | ||||||||||||||||||||||||||
| Joint development agreement professional fees | 0.09 | 0.09 | ||||||||||||||||||||||||||||
| Tax impact of joint development agreement professional fees | (0.04 | ) | (0.04 | ) | ||||||||||||||||||||||||||
| Earnings per share impact of diluted shares | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||||||||
| Nine months ended June 30, 2016 operating results | 0.77 | 0.70 | 0.26 | 0.62 | 0.05 | 0.03 | 2.43 | |||||||||||||||||||||||
| Drivers of operating results | ||||||||||||||||||||||||||||||
| Higher (lower) crude oil prices | (0.06 | ) | (0.06 | ) | ||||||||||||||||||||||||||
| Higher (lower) natural gas prices | (0.03 | ) | (0.03 | ) | ||||||||||||||||||||||||||
| Higher (lower) natural gas production | 0.29 | 0.29 | ||||||||||||||||||||||||||||
| Higher (lower) crude oil production | (0.06 | ) | (0.06 | ) | ||||||||||||||||||||||||||
| Derivative mark to market adjustments | 0.01 | 0.01 | ||||||||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | (0.06 | ) | (0.06 | ) | ||||||||||||||||||||||||||
| Lower (higher) depreciation / depletion | 0.21 | 0.01 | — | (0.03 | ) | 0.19 | ||||||||||||||||||||||||
| Higher (lower) transportation revenues | (0.05 | ) | (0.05 | ) | ||||||||||||||||||||||||||
| Higher (lower) gathering and processing revenues | 0.12 | 0.12 | ||||||||||||||||||||||||||||
| Lower (higher) other operating expenses | 0.05 | (0.03 | ) | (0.01 | ) | (0.05 | ) | (0.01 | ) | (0.05 | ) | |||||||||||||||||||
| Lower (higher) property, franchise and other taxes | (0.01 | ) | (0.01 | ) | (0.02 | ) | ||||||||||||||||||||||||
| Regulatory true-up adjustments | 0.01 | 0.01 | ||||||||||||||||||||||||||||
| Higher (lower) usage | 0.03 | 0.03 | ||||||||||||||||||||||||||||
| Impact of new rates | 0.01 | 0.01 | ||||||||||||||||||||||||||||
| Higher (lower) margins | (0.02 | ) | (0.01 | ) | (0.03 | ) | ||||||||||||||||||||||||
| Higher (lower) AFUDC** | (0.01 | ) | (0.01 | ) | (0.02 | ) | ||||||||||||||||||||||||
| Lower (higher) interest expense | 0.01 | 0.01 | ||||||||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 0.04 | 0.02 | (0.01 | ) | 0.01 | (0.01 | ) | 0.05 | ||||||||||||||||||||||
| All other / rounding | (0.01 | ) | 0.01 | 0.01 | — | (0.01 | ) | — | — | |||||||||||||||||||||
| Nine months ended June 30, 2017 GAAP earnings and operating results | $ | 1.15 | $ | 0.64 | $ | 0.37 | $ | 0.59 | $ | 0.02 | $ | — | $ | 2.77 | ||||||||||||||||
| * Amounts do not reflect intercompany eliminations | ||||||||||||||||||||||||||||||
| ** AFUDC = Allowance for Funds Used During Construction | ||||||||||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||
|
SUMMARY OF OPERATIONS |
2017 | 2016 | 2017 | 2016 | ||||||||||||||
| Operating Revenues: | ||||||||||||||||||
| Utility and Energy Marketing Revenues | $ | 146,360 | $ | 123,976 | $ | 663,029 | $ | 540,981 | ||||||||||
| Exploration and Production and Other Revenues | 151,925 | 158,578 | 473,617 | 456,032 | ||||||||||||||
| Pipeline and Storage and Gathering Revenues | 50,083 | 53,063 | 156,298 | 162,930 | ||||||||||||||
| 348,368 | 335,617 | 1,292,944 | 1,159,943 | |||||||||||||||
| Operating Expenses: | ||||||||||||||||||
| Purchased Gas | 46,135 | 23,477 | 264,349 | 147,168 | ||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||
| Utility and Energy Marketing | 44,467 | 46,616 | 158,796 | 151,474 | ||||||||||||||
| Exploration and Production and Other | 34,098 | 35,427 | 102,153 | 123,965 | ||||||||||||||
| Pipeline and Storage and Gathering | 23,250 | 23,215 | 69,016 | 64,324 | ||||||||||||||
| Property, Franchise and Other Taxes | 21,447 | 20,261 | 64,368 | 61,923 | ||||||||||||||
| Depreciation, Depletion and Amortization | 55,617 | 58,802 | 168,812 | 193,300 | ||||||||||||||
| Impairment of Oil and Gas Producing Properties | — | 82,658 | — | 915,552 | ||||||||||||||
| 225,014 | 290,456 | 827,494 | 1,657,706 | |||||||||||||||
| Operating Income (Loss) | 123,354 | 45,161 | 465,450 | (497,763 | ) | |||||||||||||
| Other Income (Expense): | ||||||||||||||||||
| Interest Income | 853 | 564 | 2,844 | 2,640 | ||||||||||||||
| Other Income | 1,370 | 1,519 | 4,728 | 7,173 | ||||||||||||||
| Interest Expense on Long-Term Debt | (29,225 | ) | (28,897 | ) | (87,241 | ) | (88,263 | ) | ||||||||||
| Other Interest Expense | (846 | ) | (1,321 | ) | (2,680 | ) | (3,938 | ) | ||||||||||
| Income (Loss) Before Income Taxes | 95,506 | 17,026 | 383,101 | (580,151 | ) | |||||||||||||
| Income Tax Expense (Benefit) | 35,792 | 8,740 | 145,195 | (251,641 | ) | |||||||||||||
| Net Income (Loss) Available for Common Stock | $ | 59,714 | $ | 8,286 | $ | 237,906 | $ | (328,510 | ) | |||||||||
| Earnings (Loss) Per Common Share: | ||||||||||||||||||
| Basic | $ | 0.70 | $ | 0.10 | $ | 2.79 | $ | (3.87 | ) | |||||||||
| Diluted | $ | 0.69 | $ | 0.10 | $ | 2.77 | $ | (3.87 | ) | |||||||||
| Weighted Average Common Shares: | ||||||||||||||||||
| Used in Basic Calculation | 85,422,313 | 84,917,664 | 85,315,154 | 84,791,447 | ||||||||||||||
| Used in Diluted Calculation | 86,064,464 | 85,470,216 | 85,950,742 | 84,791,447 | ||||||||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||
| AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| June 30, | September 30, | |||||||
| (Thousands of Dollars) | 2017 | 2016 | ||||||
| ASSETS | ||||||||
| Property, Plant and Equipment | $9,816,295 | $9,539,581 | ||||||
| Less - Accumulated Depreciation, Depletion and Amortization | 5,232,771 | 5,085,099 | ||||||
| Net Property, Plant and Equipment | 4,583,524 | 4,454,482 | ||||||
| Current Assets: | ||||||||
| Cash and Temporary Cash Investments | 285,325 | 129,972 | ||||||
| Hedging Collateral Deposits | 2,142 | 1,484 | ||||||
| Receivables - Net | 127,876 | 133,201 | ||||||
| Unbilled Revenue | 19,729 | 18,382 | ||||||
| Gas Stored Underground | 17,793 | 34,332 | ||||||
| Materials and Supplies - at average cost | 34,706 | 33,866 | ||||||
| Unrecovered Purchased Gas Costs | 3,757 | 2,440 | ||||||
| Other Current Assets | 50,852 | 59,354 | ||||||
| Total Current Assets | 542,180 | 413,031 | ||||||
| Other Assets: | ||||||||
| Recoverable Future Taxes | 182,469 | 177,261 | ||||||
| Unamortized Debt Expense | 1,292 | 1,688 | ||||||
| Other Regulatory Assets | 315,126 | 320,750 | ||||||
| Deferred Charges | 28,821 | 20,978 | ||||||
| Other Investments | 126,485 | 110,664 | ||||||
| Goodwill | 5,476 | 5,476 | ||||||
| Prepaid Post-Retirement Benefit Costs | 18,619 | 17,649 | ||||||
| Fair Value of Derivative Financial Instruments | 63,036 | 113,804 | ||||||
| Other | 479 | 604 | ||||||
| Total Other Assets | 741,803 | 768,874 | ||||||
| Total Assets | $5,867,507 | $5,636,387 | ||||||
| CAPITALIZATION AND LIABILITIES | ||||||||
| Capitalization: | ||||||||
| Comprehensive Shareholders' Equity | ||||||||
| Common Stock, $1 Par Value Authorized - 200,000,000 | ||||||||
| Shares; Issued and Outstanding - 85,467,963 Shares | ||||||||
| and 85,118,886 Shares, Respectively | $85,468 | $85,119 | ||||||
| Paid in Capital | 790,291 | 771,164 | ||||||
| Earnings Reinvested in the Business | 841,593 | 676,361 | ||||||
| Accumulated Other Comprehensive Loss | (33,304 | ) | (5,640 | ) | ||||
| Total Comprehensive Shareholders' Equity | 1,684,048 | 1,527,004 | ||||||
| Long-Term Debt, Net of Unamortized Discount and Debt Issuance Costs | 1,787,954 | 2,086,252 | ||||||
| Total Capitalization | 3,472,002 | 3,613,256 | ||||||
| Current and Accrued Liabilities: | ||||||||
| Notes Payable to Banks and Commercial Paper | — | — | ||||||
| Current Portion of Long-Term Debt | 300,000 | — | ||||||
| Accounts Payable | 98,842 | 108,056 | ||||||
| Amounts Payable to Customers | 13,070 | 19,537 | ||||||
| Dividends Payable | 35,469 | 34,473 | ||||||
| Interest Payable on Long-Term Debt | 28,985 | 34,900 | ||||||
| Customer Advances | 224 | 14,762 | ||||||
| Customer Security Deposits | 17,522 | 16,019 | ||||||
| Other Accruals and Current Liabilities | 107,101 | 74,430 | ||||||
| Fair Value of Derivative Financial Instruments | 922 | 1,560 | ||||||
| Total Current and Accrued Liabilities | 602,135 | 303,737 | ||||||
| Deferred Credits: | ||||||||
| Deferred Income Taxes | 881,547 | 823,795 | ||||||
| Taxes Refundable to Customers | 93,321 | 93,318 | ||||||
| Cost of Removal Regulatory Liability | 199,739 | 193,424 | ||||||
| Other Regulatory Liabilities | 88,647 | 99,789 | ||||||
| Pension and Other Post-Retirement Liabilities | 299,326 | 277,113 | ||||||
| Asset Retirement Obligations | 115,354 | 112,330 | ||||||
| Other Deferred Credits | 115,436 | 119,625 | ||||||
| Total Deferred Credits | 1,793,370 | 1,719,394 | ||||||
| Commitments and Contingencies | — | — | ||||||
| Total Capitalization and Liabilities | $5,867,507 | $5,636,387 | ||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||
| AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| (Unaudited) | ||||||||||
| Nine Months Ended | ||||||||||
| June 30, | ||||||||||
| (Thousands of Dollars) | 2017 | 2016 | ||||||||
| Operating Activities: | ||||||||||
| Net Income (Loss) Available for Common Stock | $ | 237,906 | $ | (328,510 | ) | |||||
| Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ||||||||||
| Impairment of Oil and Gas Producing Properties | — | 915,552 | ||||||||
| Depreciation, Depletion and Amortization | 168,812 | 193,300 | ||||||||
| Deferred Income Taxes | 105,073 | (269,248 | ) | |||||||
| Excess Tax Benefits Associated with Stock-Based Compensation Awards | — | (1,786 | ) | |||||||
| Stock-Based Compensation | 8,857 | 3,138 | ||||||||
| Other | 11,084 | 9,685 | ||||||||
| Change in: | ||||||||||
| Hedging Collateral Deposits | (658 | ) | 8,116 | |||||||
| Receivables and Unbilled Revenue | (15,885 | ) | (7,756 | ) | ||||||
| Gas Stored Underground and Materials and Supplies | 15,699 | 15,683 | ||||||||
| Unrecovered Purchased Gas Costs | (1,317 | ) | (933 | ) | ||||||
| Other Current Assets | 8,502 | 15,334 | ||||||||
| Accounts Payable | 5,046 | (53,687 | ) | |||||||
| Amounts Payable to Customers | (6,467 | ) | (21,337 | ) | ||||||
| Customer Advances | (14,538 | ) | (16,198 | ) | ||||||
| Customer Security Deposits | 1,503 | (396 | ) | |||||||
| Other Accruals and Current Liabilities | 25,423 | 3,375 | ||||||||
| Other Assets | (3,548 | ) | 3,775 | |||||||
| Other Liabilities | 5,638 | (8,152 | ) | |||||||
| Net Cash Provided by Operating Activities | $ | 551,130 | $ | 459,955 | ||||||
| Investing Activities: | ||||||||||
| Capital Expenditures | $ | (314,774 | ) | $ | (481,781 | ) | ||||
| Net Proceeds from Sale of Oil and Gas Producing Properties | 26,554 | 115,235 | ||||||||
| Other | (10,186 | ) | (11,163 | ) | ||||||
| Net Cash Used in Investing Activities | $ | (298,406 | ) | $ | (377,709 | ) | ||||
| Financing Activities: | ||||||||||
| Excess Tax Benefits Associated with Stock-Based Compensation Awards | $ | — | $ | 1,786 | ||||||
| Dividends Paid on Common Stock | (103,594 | ) | (100,419 | ) | ||||||
| Net Proceeds From Issuance of Common Stock | 6,223 | 8,358 | ||||||||
| Net Cash Used in Financing Activities | $ | (97,371 | ) | $ | (90,275 | ) | ||||
| Net Increase (Decrease) in Cash and Temporary Cash Investments | 155,353 | (8,029 | ) | |||||||
| Cash and Temporary Cash Investments at Beginning of Period | 129,972 | 113,596 | ||||||||
| Cash and Temporary Cash Investments at June 30 | $ | 285,325 | $ | 105,567 | ||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | ||||||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||||||
| UPSTREAM BUSINESS | ||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | June 30, | June 30, | ||||||||||||||||||||||
|
EXPLORATION AND PRODUCTION SEGMENT |
2017 | 2016 | Variance | 2017 | 2016 | Variance | ||||||||||||||||||
| Total Operating Revenues | $ | 151,161 | $ | 156,835 | $ | (5,674 | ) | $ | 471,646 | $ | 452,583 | $ | 19,063 | |||||||||||
| Operating Expenses: | ||||||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||||||
| General and Administrative Expense | 14,170 | 16,573 | (2,403 | ) | 43,674 | 55,671 | (11,997 | ) | ||||||||||||||||
| Lease Operating and Transportation Expense | 40,630 | 38,861 | 1,769 | 122,881 | 115,451 | 7,430 | ||||||||||||||||||
| All Other Operation and Maintenance Expense | 2,835 | 3,011 | (176 | ) | 8,168 | 10,402 | (2,234 | ) | ||||||||||||||||
| Property, Franchise and Other Taxes | 4,297 | 3,639 | 658 | 11,248 | 10,241 | 1,007 | ||||||||||||||||||
| Depreciation, Depletion and Amortization | 27,448 | 31,279 | (3,831 | ) | 85,353 | 112,586 | (27,233 | ) | ||||||||||||||||
| Impairment of Oil and Gas Producing Properties | — | 82,658 | (82,658 | ) | — | 915,552 | (915,552 | ) | ||||||||||||||||
| 89,380 | 176,021 | (86,641 | ) | 271,324 | 1,219,903 | (948,579 | ) | |||||||||||||||||
| Operating Income (Loss) | 61,781 | (19,186) | 80,967 | 200,322 | (767,320) | 967,642 | ||||||||||||||||||
| Other Income (Expense): | ||||||||||||||||||||||||
| Interest Income | 217 | 88 | 129 | 451 | 781 | (330 | ) | |||||||||||||||||
| Interest Expense | (13,444 | ) | (13,753 | ) | 309 | (40,270 | ) | (41,882 | ) | 1,612 | ||||||||||||||
| Income (Loss) Before Income Taxes | 48,554 | (32,851 | ) | 81,405 | 160,503 | (808,421 | ) | 968,924 | ||||||||||||||||
| Income Tax Expense (Benefit) | 18,431 | (13,686 | ) | 32,117 | 61,531 | (338,835 | ) | 400,366 | ||||||||||||||||
| Net Income (Loss) | $ | 30,123 | $ | (19,165 | ) | $ | 49,288 | $ | 98,972 | $ | (469,586 | ) | $ | 568,558 | ||||||||||
| Net Income (Loss) Per Share (Diluted) | $ | 0.35 | $ | (0.22 | ) | $ | 0.57 | $ | 1.15 | $ | (5.54 | ) | $ | 6.69 | ||||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | ||||||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||||||
| MIDSTREAM BUSINESSES | ||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | June 30, | June 30, | ||||||||||||||||||||||
|
PIPELINE AND STORAGE SEGMENT |
2017 | 2016 | Variance | 2017 | 2016 | Variance | ||||||||||||||||||
| Revenues from External Customers | $ | 50,049 | $ | 52,998 | $ | (2,949 | ) | $ | 156,212 | $ | 162,627 | $ | (6,415 | ) | ||||||||||
| Intersegment Revenues | 21,643 | 22,795 | (1,152 | ) | 66,389 | 68,272 | (1,883 | ) | ||||||||||||||||
| Total Operating Revenues | 71,692 | 75,793 | (4,101 | ) | 222,601 | 230,899 | (8,298 | ) | ||||||||||||||||
| Operating Expenses: | ||||||||||||||||||||||||
| Purchased Gas | (13 | ) | 356 | (369 | ) | 181 | 1,059 | (878 | ) | |||||||||||||||
| Operation and Maintenance | 20,607 | 20,492 | 115 | 60,517 | 57,145 | 3,372 | ||||||||||||||||||
| Property, Franchise and Other Taxes | 6,935 | 6,430 | 505 | 20,624 | 19,766 | 858 | ||||||||||||||||||
| Depreciation, Depletion and Amortization | 10,513 | 11,023 | (510 | ) | 30,651 | 32,144 | (1,493 | ) | ||||||||||||||||
| 38,042 | 38,301 | (259 | ) | 111,973 | 110,114 | 1,859 | ||||||||||||||||||
| Operating Income | 33,650 | 37,492 | (3,842 | ) | 110,628 | 120,785 | (10,157 | ) | ||||||||||||||||
| Other Income (Expense): | ||||||||||||||||||||||||
| Interest Income | 393 | 237 | 156 | 984 | 527 | 457 | ||||||||||||||||||
| Other Income | 449 | 657 | (208 | ) | 1,944 | 2,651 | (707 | ) | ||||||||||||||||
| Interest Expense | (8,489 | ) | (8,528 | ) | 39 | (25,177 | ) | (25,017 | ) | (160 | ) | |||||||||||||
| Income Before Income Taxes | 26,003 | 29,858 | (3,855 | ) | 88,379 | 98,946 | (10,567 | ) | ||||||||||||||||
| Income Tax Expense | 9,972 | 12,535 | (2,563 | ) | 33,723 | 39,152 | (5,429 | ) | ||||||||||||||||
| Net Income | $ | 16,031 | $ | 17,323 | $ | (1,292 | ) | $ | 54,656 | $ | 59,794 | $ | (5,138 | ) | ||||||||||
| Net Income Per Share (Diluted) | $ | 0.19 | $ | 0.20 | $ | (0.01 | ) | $ | 0.64 | $ | 0.71 | $ | (0.07 | ) | ||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||
|
GATHERING SEGMENT |
2017 | 2016 | Variance | 2017 | 2016 | Variance | ||||||||||||||||||
| Revenues from External Customers | $ | 34 | $ | 65 | $ | (31 | ) | $ | 86 | $ | 303 | $ | (217 | ) | ||||||||||
| Intersegment Revenues | 26,853 | 25,417 | 1,436 | 82,629 | 65,601 | 17,028 | ||||||||||||||||||
| Total Operating Revenues | 26,887 | 25,482 | 1,405 | 82,715 | 65,904 | 16,811 | ||||||||||||||||||
| Operating Expenses: | ||||||||||||||||||||||||
| Operation and Maintenance | 2,973 | 3,018 | (45 | ) | 9,496 | 8,066 | 1,430 | |||||||||||||||||
| Property, Franchise and Other Taxes | 13 | 31 | (18 | ) | 45 | 116 | (71 | ) | ||||||||||||||||
| Depreciation, Depletion and Amortization | 4,131 | 3,608 | 523 | 12,008 | 11,407 | 601 | ||||||||||||||||||
| 7,117 | 6,657 | 460 | 21,549 | 19,589 | 1,960 | |||||||||||||||||||
| Operating Income | 19,770 | 18,825 | 945 | 61,166 | 46,315 | 14,851 | ||||||||||||||||||
| Other Income (Expense): | ||||||||||||||||||||||||
| Interest Income | 288 | 88 | 200 | 641 | 188 | 453 | ||||||||||||||||||
| Other Income | — | 1 | (1 | ) | 1 | 3 | (2 | ) | ||||||||||||||||
| Interest Expense | (2,411 | ) | (1,794 | ) | (617 | ) | (6,739 | ) | (6,781 | ) | 42 | |||||||||||||
| Income Before Income Taxes | 17,647 | 17,120 | 527 | 55,069 | 39,725 | 15,344 | ||||||||||||||||||
| Income Tax Expense | 7,540 | 7,647 | (107 | ) | 23,696 | 17,763 | 5,933 | |||||||||||||||||
| Net Income | $ | 10,107 | $ | 9,473 | $ | 634 | $ | 31,373 | $ | 21,962 | $ | 9,411 | ||||||||||||
| Net Income Per Share (Diluted) | $ | 0.12 | $ | 0.11 | $ | 0.01 | $ | 0.37 | $ | 0.26 | $ | 0.11 | ||||||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | ||||||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||||||
| DOWNSTREAM BUSINESSES | ||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | June 30, | June 30, | ||||||||||||||||||||||
|
UTILITY SEGMENT |
2017 | 2016 | Variance | 2017 | 2016 | Variance | ||||||||||||||||||
| Revenues from External Customers | $ | 121,900 | $ | 106,568 | $ | 15,332 | $ | 550,819 | $ | 463,154 | $ | 87,665 | ||||||||||||
| Intersegment Revenues | 3,391 | 1,729 | 1,662 | 11,314 | 10,757 | 557 | ||||||||||||||||||
| Total Operating Revenues | 125,291 | 108,297 | 16,994 | 562,133 | 473,911 | 88,222 | ||||||||||||||||||
| Operating Expenses: | ||||||||||||||||||||||||
| Purchased Gas | 46,536 | 29,514 | 17,022 | 235,481 | 155,764 | 79,717 | ||||||||||||||||||
| Operation and Maintenance | 43,506 | 45,990 | (2,484 | ) | 155,783 | 148,883 | 6,900 | |||||||||||||||||
| Property, Franchise and Other Taxes | 9,927 | 9,893 | 34 | 31,637 | 30,980 | 657 | ||||||||||||||||||
| Depreciation, Depletion and Amortization | 13,086 | 12,234 | 852 | 39,502 | 35,511 | 3,991 | ||||||||||||||||||
| 113,055 | 97,631 | 15,424 | 462,403 | 371,138 | 91,265 | |||||||||||||||||||
| Operating Income | 12,236 | 10,666 | 1,570 | 99,730 | 102,773 | (3,043 | ) | |||||||||||||||||
| Other Income (Expense): | ||||||||||||||||||||||||
| Interest Income | 141 | 115 | 26 | 418 | 321 | 97 | ||||||||||||||||||
| Other Income | 438 | 345 | 93 | 576 | 1,749 | (1,173 | ) | |||||||||||||||||
| Interest Expense | (7,062 | ) | (7,192 | ) | 130 | (21,454 | ) | (21,684 | ) | 230 | ||||||||||||||
| Income Before Income Taxes | 5,753 | 3,934 | 1,819 | 79,270 | 83,159 | (3,889 | ) | |||||||||||||||||
| Income Tax Expense | 1,405 | 1,755 | (350 | ) | 28,167 | 30,414 | (2,247 | ) | ||||||||||||||||
| Net Income | $ | 4,348 | $ | 2,179 | $ | 2,169 | $ | 51,103 | $ | 52,745 | $ | (1,642 | ) | |||||||||||
| Net Income Per Share (Diluted) | $ | 0.05 | $ | 0.03 | $ | 0.02 | $ | 0.59 | $ | 0.62 | $ | (0.03 | ) | |||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||
|
ENERGY MARKETING SEGMENT |
2017 | 2016 | Variance | 2017 | 2016 | Variance | ||||||||||||||||||
| Revenues from External Customers | $ | 24,460 | $ | 17,408 | $ | 7,052 | $ | 112,210 | $ | 77,827 | $ | 34,383 | ||||||||||||
| Intersegment Revenues | 565 | 231 | 334 | 600 | 855 | (255 | ) | |||||||||||||||||
| Total Operating Revenues | 25,025 | 17,639 | 7,386 | 112,810 | 78,682 | 34,128 | ||||||||||||||||||
| Operating Expenses: | ||||||||||||||||||||||||
| Purchased Gas | 24,336 | 17,191 | 7,145 | 104,335 | 67,235 | 37,100 | ||||||||||||||||||
| Operation and Maintenance | 1,706 | 1,376 | 330 | 5,262 | 4,872 | 390 | ||||||||||||||||||
| Property, Franchise and Other Taxes | — | 2 | (2 | ) | — | 6 | (6 | ) | ||||||||||||||||
| Depreciation, Depletion and Amortization | 69 | 70 | (1 | ) | 210 | 208 | 2 | |||||||||||||||||
| 26,111 | 18,639 | 7,472 | 109,807 | 72,321 | 37,486 | |||||||||||||||||||
| Operating Income (Loss) | (1,086 | ) | (1,000 | ) | (86 | ) | 3,003 | 6,361 | (3,358 | ) | ||||||||||||||
| Other Income (Expense): | ||||||||||||||||||||||||
| Interest Income | 146 | 145 | 1 | 418 | 286 | 132 | ||||||||||||||||||
| Other Income | 22 | 20 | 2 | 57 | 44 | 13 | ||||||||||||||||||
| Interest Expense | (13 | ) | (11 | ) | (2 | ) | (38 | ) | (37 | ) | (1 | ) | ||||||||||||
| Income (Loss) Before Income Taxes | (931 | ) | (846 | ) | (85 | ) | 3,440 | 6,654 | (3,214 | ) | ||||||||||||||
| Income Tax Expense (Benefit) | (367 | ) | (256 | ) | (111 | ) | 1,318 | 2,537 | (1,219 | ) | ||||||||||||||
| Net Income (Loss) | $ | (564 | ) | $ | (590 | ) | $ | 26 | $ | 2,122 | $ | 4,117 | $ | (1,995 | ) | |||||||||
| Net Income (Loss) Per Share (Diluted) | $ | (0.01 | ) | $ | (0.01 | ) | $ | — | $ | 0.02 | $ | 0.05 | $ | (0.03 | ) | |||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | ||||||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | June 30, | June 30, | ||||||||||||||||||||||
|
ALL OTHER |
2017 | 2016 | Variance | 2017 | 2016 | Variance | ||||||||||||||||||
| Total Operating Revenues | $ | 538 | $ | 1,508 | $ | (970 | ) | $ | 1,311 | $ | 2,775 | $ | (1,464 | ) | ||||||||||
| Operating Expenses: | ||||||||||||||||||||||||
| Operation and Maintenance | 435 | 256 | 179 | 1,344 | 495 | 849 | ||||||||||||||||||
| Property, Franchise and Other Taxes | 151 | 144 | 7 | 445 | 449 | (4 | ) | |||||||||||||||||
| Depreciation, Depletion and Amortization | 182 | 399 | (217 | ) | 525 | 888 | (363 | ) | ||||||||||||||||
| 768 | 799 | (31 | ) | 2,314 | 1,832 | 482 | ||||||||||||||||||
| Operating Income (Loss) | (230 | ) | 709 | (939 | ) | (1,003 | ) | 943 | (1,946 | ) | ||||||||||||||
| Other Income (Expense): | ||||||||||||||||||||||||
| Interest Income | 59 | 32 | 27 | 147 | 83 | 64 | ||||||||||||||||||
| Income (Loss) Before Income Taxes | (171 | ) | 741 | (912 | ) | (856 | ) | 1,026 | (1,882 | ) | ||||||||||||||
| Income Tax Expense (Benefit) | (73 | ) | 311 | (384 | ) | (358 | ) | 431 | (789 | ) | ||||||||||||||
| Net Income (Loss) | $ | (98 | ) | $ | 430 | $ | (528 | ) | $ | (498 | ) | $ | 595 | $ | (1,093 | ) | ||||||||
| Net Income (Loss) Per Share (Diluted) | $ | — | $ | 0.01 | $ | (0.01 | ) | $ | — | $ | 0.01 | $ | (0.01 | ) | ||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||
|
CORPORATE |
2017 | 2016 | Variance | 2017 | 2016 | Variance | ||||||||||||||||||
| Revenues from External Customers | $ | 226 | $ | 235 | $ | (9 | ) | $ | 660 | $ | 674 | $ | (14 | ) | ||||||||||
| Intersegment Revenues | 977 | 967 | 10 | 2,930 | 2,900 | 30 | ||||||||||||||||||
| Total Operating Revenues | 1,203 | 1,202 | 1 | 3,590 | 3,574 | 16 | ||||||||||||||||||
| Operating Expenses: | ||||||||||||||||||||||||
| Operation and Maintenance | 3,658 | 3,236 | 422 | 11,054 | 10,273 | 781 | ||||||||||||||||||
| Property, Franchise and Other Taxes | 124 | 122 | 2 | 369 | 365 | 4 | ||||||||||||||||||
| Depreciation, Depletion and Amortization | 188 | 189 | (1 | ) | 563 | 556 | 7 | |||||||||||||||||
| 3,970 | 3,547 | 423 | 11,986 | 11,194 | 792 | |||||||||||||||||||
| Operating Loss | (2,767 | ) | (2,345 | ) | (422 | ) | (8,396 | ) | (7,620 | ) | (776 | ) | ||||||||||||
| Other Income (Expense): | ||||||||||||||||||||||||
| Interest Income | 31,185 | 30,684 | 501 | 93,684 | 92,767 | 917 | ||||||||||||||||||
| Other Income | 461 | 496 | (35 | ) | 2,150 | 2,726 | (576 | ) | ||||||||||||||||
| Interest Expense on Long-Term Debt | (29,225 | ) | (28,897 | ) | (328 | ) | (87,241 | ) | (88,263 | ) | 1,022 | |||||||||||||
| Other Interest Expense | (1,003 | ) | (868 | ) | (135 | ) | (2,901 | ) | (850 | ) | (2,051 | ) | ||||||||||||
| Loss Before Income Taxes | (1,349 | ) | (930 | ) | (419 | ) | (2,704 | ) | (1,240 | ) | (1,464 | ) | ||||||||||||
| Income Tax Expense (Benefit) | (1,116 | ) | 434 | (1,550 | ) | (2,882 | ) | (3,103 | ) | 221 | ||||||||||||||
| Net Income (Loss) | $ | (233 | ) | $ | (1,364 | ) | $ | 1,131 | $ | 178 | $ | 1,863 | $ | (1,685 | ) | |||||||||
| Net Income (Loss) Per Share (Diluted) | $ | (0.01 | ) | $ | (0.02 | ) | $ | 0.01 | $ | — | $ | 0.02 | $ | (0.02 | ) | |||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||
|
INTERSEGMENT ELIMINATIONS |
2017 | 2016 | Variance | 2017 | 2016 | Variance | ||||||||||||||||||
| Intersegment Revenues | $ | (53,429 | ) | $ | (51,139 | ) | $ | (2,290 | ) | $ | (163,862 | ) | $ | (148,385 | ) | $ | (15,477 | ) | ||||||
| Operating Expenses: | ||||||||||||||||||||||||
| Purchased Gas | (24,724 | ) | (23,584 | ) | (1,140 | ) | (75,648 | ) | (76,890 | ) | 1,242 | |||||||||||||
| Operation and Maintenance | (28,705 | ) | (27,555 | ) | (1,150 | ) | (88,214 | ) | (71,495 | ) | (16,719 | ) | ||||||||||||
| (53,429 | ) | (51,139 | ) | (2,290 | ) | (163,862 | ) | (148,385 | ) | (15,477 | ) | |||||||||||||
| Operating Income | — | — | — | — | — | — | ||||||||||||||||||
| Other Income (Expense): | ||||||||||||||||||||||||
| Interest Income | (31,576 | ) | (30,825 | ) | (751 | ) | (93,899 | ) | (92,313 | ) | (1,586 | ) | ||||||||||||
| Interest Expense | 31,576 | 30,825 | 751 | 93,899 | 92,313 | 1,586 | ||||||||||||||||||
| Net Income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| Net Income Per Share (Diluted) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
| SEGMENT INFORMATION (Continued) | ||||||||||||||||||||||||||||||
| (Thousands of Dollars) | ||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||||||||||||||
| Increase | Increase | |||||||||||||||||||||||||||||
| 2017 | 2016 | (Decrease) | 2017 | 2016 | (Decrease) | |||||||||||||||||||||||||
|
Capital Expenditures: |
||||||||||||||||||||||||||||||
| Exploration and Production | $ | 70,719 | (1)(2) | $ | 47,269 | (3) | $ | 23,450 | $ | 168,545 | (1)(2) | $ | 214,923 | (3)(4) | $ | (46,378 | ) | |||||||||||||
| Pipeline and Storage | 16,750 | (1)(2) | 18,325 | (3) | (1,575 | ) | 53,528 | (1)(2) | 76,020 | (3)(4) | (22,492 | ) | ||||||||||||||||||
| Gathering | 9,214 | (1)(2) | 9,192 | (3) | 22 | 23,705 | (1)(2) | 43,715 | (3)(4) | (20,010 | ) | |||||||||||||||||||
| Utility | 20,116 | (1)(2) | 26,280 | (3) | (6,164 | ) | 56,411 | (1)(2) | 72,288 | (3)(4) | (15,877 | ) | ||||||||||||||||||
| Energy Marketing | 3 | 19 | (16 | ) | 14 | 28 | (14 | ) | ||||||||||||||||||||||
| Total Reportable Segments | 116,802 | 101,085 | 15,717 | 302,203 | 406,974 | (104,771 | ) | |||||||||||||||||||||||
| All Other | — | — | — | 40 | 37 | 3 | ||||||||||||||||||||||||
| Corporate | 22 | 36 | (14 | ) | 86 | 191 | (105 | ) | ||||||||||||||||||||||
| Eliminations | 295 | — | 295 | (482 | ) | — | (482 | ) | ||||||||||||||||||||||
| Total Capital Expenditures | $ | 117,119 | $ | 101,121 | $ | 15,998 | $ | 301,847 | $ | 407,202 | $ | (105,355 | ) | |||||||||||||||||
| (1) |
Capital expenditures for the quarter and nine months ended June 30, 2017, include accounts payable and accrued liabilities related to capital expenditures of $25.0 million, $10.3 million, $5.2 million, and $7.0 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at June 30, 2017, since they represent non-cash investing activities at that date. |
|
| (2) |
Capital expenditures for the nine months ended June 30, 2017, exclude capital expenditures of $25.2 million, $18.7 million, $5.3 million and $11.2 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2016 and paid during the nine months ended June 30, 2017. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2016, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at June 30, 2017. |
|
| (3) |
Capital expenditures for the quarter and nine months ended June 30, 2016, include accounts payable and accrued liabilities related to capital expenditures of $26.7 million, $7.6 million, $2.8 million, and $7.3 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at June 30, 2016, since they represent non-cash investing activities at that date. |
|
| (4) |
Capital expenditures for the nine months ended June 30, 2016, exclude capital expenditures of $46.2 million, $33.9 million, $22.4 million and $16.5 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2015 and paid during the nine months ended June 30, 2016. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2015, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at June 30, 2016. |
|
|
DEGREE DAYS |
||||||||||||
| Percent Colder | ||||||||||||
| (Warmer) Than: | ||||||||||||
|
Three Months Ended June 30 |
Normal | 2017 | 2016 | Normal (1) | Last Year (1) | |||||||
| Buffalo, NY | 912 | 767 | 927 | (15.9) | (17.3) | |||||||
| Erie, PA | 871 | 705 | 936 | (19.1) | (24.7) | |||||||
|
Nine Months Ended June 30 |
||||||||||||
| Buffalo, NY | 6,455 | 5,599 | 5,567 | (13.3) | 0.6 | |||||||
| Erie, PA | 6,023 | 5,082 | 5,159 | (15.6) | (1.5) | |||||||
| (1) | Percents compare actual 2017 degree days to normal degree days and actual 2017 degree days to actual 2016 degree days. | |
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||||||||
|
EXPLORATION AND PRODUCTION INFORMATION |
|||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||||||
| Increase | Increase | ||||||||||||||||||||||||||
| 2017 | 2016 | (Decrease) | 2017 | 2016 | (Decrease) | ||||||||||||||||||||||
|
Gas Production/Prices: |
|||||||||||||||||||||||||||
| Production (MMcf) | |||||||||||||||||||||||||||
| Appalachia | 37,904 | 38,846 | (942 | ) | 118,517 | 105,747 | 12,770 | ||||||||||||||||||||
| West Coast | 733 | 763 | (30 | ) | 2,246 | 2,310 | (64 | ) | |||||||||||||||||||
| Total Production | 38,637 | 39,609 | (972 | ) | 120,763 | 108,057 | 12,706 | ||||||||||||||||||||
| Average Prices (Per Mcf) | |||||||||||||||||||||||||||
| Appalachia | $ | 2.58 | $ | 1.73 | $ | 0.85 | $ | 2.55 | $ | 1.84 | $ | 0.71 | |||||||||||||||
| West Coast | 3.39 | 2.84 | 0.55 | 4.07 | 3.13 | 0.94 | |||||||||||||||||||||
| Weighted Average | 2.59 | 1.75 | 0.84 | 2.58 | 1.87 | 0.71 | |||||||||||||||||||||
| Weighted Average after Hedging | 2.94 | 2.86 | 0.08 | 2.96 | 3.00 | (0.04 | ) | ||||||||||||||||||||
|
Oil Production/Prices: |
|||||||||||||||||||||||||||
| Production (Thousands of Barrels) | |||||||||||||||||||||||||||
| Appalachia | 1 | 6 | (5 | ) | 3 | 16 | (13 | ) | |||||||||||||||||||
| West Coast | 669 | 722 | (53 | ) | 2,062 | 2,183 | (121 | ) | |||||||||||||||||||
| Total Production | 670 | 728 | (58 | ) | 2,065 | 2,199 | (134 | ) | |||||||||||||||||||
| Average Prices (Per Barrel) | |||||||||||||||||||||||||||
| Appalachia | $ | 48.34 | $ | 58.28 | $ | (9.94 | ) | $ | 48.85 | $ | 44.05 | $ | 4.80 | ||||||||||||||
| West Coast | 45.63 | 38.89 | 6.74 | 45.71 | 34.02 | 11.69 | |||||||||||||||||||||
| Weighted Average | 45.64 | 39.04 | 6.60 | 45.76 | 34.10 | 11.66 | |||||||||||||||||||||
| Weighted Average after Hedging | 53.02 | 58.79 | (5.77 | ) | 53.58 | 57.22 | (3.64 | ) | |||||||||||||||||||
| Total Production (Mmcfe) | 42,657 | 43,977 | (1,320 | ) | 133,153 | 121,251 | 11,902 | ||||||||||||||||||||
|
Selected Operating Performance Statistics: |
|||||||||||||||||||||||||||
| General & Administrative Expense per Mcfe (1) | $ | 0.33 | $ | 0.38 | $ | (0.05 | ) | $ | 0.33 | $ | 0.46 | $ | (0.13 | ) | |||||||||||||
| Lease Operating and Transportation Expense per Mcfe (1)(2) | $ | 0.95 | $ | 0.88 | $ | 0.07 | $ | 0.92 | $ | 0.95 | $ | (0.03 | ) | ||||||||||||||
| Depreciation, Depletion & Amortization per Mcfe (1) | $ | 0.64 | $ | 0.71 | $ | (0.07 | ) | $ | 0.64 | $ | 0.93 | $ | (0.29 | ) | |||||||||||||
| (1) | Refer to page 15 for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment. | |
| (2) | Amounts include transportation expense of $0.54 and $0.53 per Mcfe for the three months ended June 30, 2017 and June 30, 2016, respectively. Amounts include transportation expense of $0.54 and $0.52 per Mcfe for the nine months ended June 30, 2017 and June 30, 2016, respectively. | |
| NATIONAL FUEL GAS COMPANY | ||||||||||
| AND SUBSIDIARIES | ||||||||||
|
EXPLORATION AND PRODUCTION INFORMATION |
||||||||||
|
Hedging Summary for the Remaining Three Months of Fiscal 2017 |
Volume |
Average Hedge Price |
||||||||
| Oil Swaps | ||||||||||
| Brent | 24,000 | BBL | $ | 91.00 / BBL | ||||||
| NYMEX | 396,000 | BBL | $ | 58.34 / BBL | ||||||
| Total | 420,000 | BBL | $ | 60.21 / BBL | ||||||
| Gas Swaps | ||||||||||
| NYMEX | 9,990,000 | MMBTU | $ | 4.35 / MMBTU | ||||||
| Dominion Transmission Appalachian (DOM) | 450,000 | MMBTU | $ | 3.82 / MMBTU | ||||||
| Dawn Ontario (DAWN) | 3,330,000 | MMBTU | $ | 3.71 / MMBTU | ||||||
| Fixed Price Physical Sales | 17,381,568 | MMBTU | $ | 2.45 / MMBTU | ||||||
| Total | 31,151,568 | MMBTU | $ | 3.21 / MMBTU | ||||||
|
Hedging Summary for Fiscal 2018 |
Volume |
Average Hedge Price |
||||||||
| Oil Swaps | ||||||||||
| Brent | 24,000 | BBL | $ | 91.00 / BBL | ||||||
| NYMEX | 1,275,000 | BBL | $ | 54.79 / BBL | ||||||
| Total | 1,299,000 | BBL | $ | 55.46 / BBL | ||||||
| Gas Swaps | ||||||||||
| NYMEX | 42,570,000 | MMBTU | $ | 3.34 / MMBTU | ||||||
| DOM | 180,000 | MMBTU | $ | 3.82 / MMBTU | ||||||
| DAWN | 8,400,000 | MMBTU | $ | 3.08 / MMBTU | ||||||
| Fixed Price Physical Sales | 42,902,876 | MMBTU | $ | 2.42 / MMBTU | ||||||
| Total | 94,052,876 | MMBTU | $ | 2.90 / MMBTU | ||||||
|
Hedging Summary for Fiscal 2019 |
Volume |
Average Hedge Price |
||||||||
| Oil Swaps | ||||||||||
| NYMEX | 912,000 | BBL | $ | 53.84 / BBL | ||||||
| Gas Swaps | ||||||||||
| NYMEX | 27,060,000 | MMBTU | $ | 3.17 / MMBTU | ||||||
| DAWN | 7,200,000 | MMBTU | $ | 3.00 / MMBTU | ||||||
| Fixed Price Physical Sales | 32,328,272 | MMBTU | $ | 2.51 / MMBTU | ||||||
| Total | 66,588,272 | MMBTU | $ | 2.83 / MMBTU | ||||||
|
Hedging Summary for Fiscal 2020 |
Volume |
Average Hedge Price |
||||||||
| Oil Swaps | ||||||||||
| NYMEX | 168,000 | BBL | $ | 50.08 / BBL | ||||||
| Gas Swaps | ||||||||||
| NYMEX | 16,880,000 | MMBTU | $ | 3.07 / MMBTU | ||||||
| DAWN | 7,200,000 | MMBTU | $ | 3.00 / MMBTU | ||||||
| Fixed Price Physical Sales | 38,232,955 | MMBTU | $ | 2.30 / MMBTU | ||||||
| Total | 62,312,955 | MMBTU | $ | 2.59 / MMBTU | ||||||
|
Hedging Summary for Fiscal 2021 |
Volume |
Average Hedge Price |
||||||||
| Gas Swaps | ||||||||||
| NYMEX | 4,840,000 | MMBTU | $ | 3.01 / MMBTU | ||||||
| DAWN | 600,000 | MMBTU | $ | 3.00 / MMBTU | ||||||
| Fixed Price Physical Sales | 38,650,830 | MMBTU | $ | 2.22 / MMBTU | ||||||
| Total | 44,090,830 | MMBTU | $ | 2.31 / MMBTU | ||||||
|
Hedging Summary for Fiscal 2022 |
Volume |
Average Hedge Price |
||||||||
| Fixed Price Physical Sales | 35,245,042 | MMBTU | $ | 2.24 / MMBTU | ||||||
|
Hedging Summary for Fiscal 2023 |
Volume |
Average Hedge Price |
||||||||
| Fixed Price Physical Sales | 31,170,734 | MMBTU | $ | 2.26 / MMBTU | ||||||
|
Hedging Summary for Fiscal 2024 |
Volume |
Average Hedge Price |
||||||||
| Fixed Price Physical Sales | 15,499,436 | MMBTU | $ | 2.26 / MMBTU | ||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||||
| Pipeline & Storage Throughput - (millions of cubic feet - MMcf) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||
| Increase | Increase | |||||||||||||||||||
| 2017 | 2016 | (Decrease) | 2017 | 2016 | (Decrease) | |||||||||||||||
| Firm Transportation - Affiliated | 17,734 | 19,836 | (2,102 | ) | 92,583 | 87,169 | 5,414 | |||||||||||||
| Firm Transportation - Non-Affiliated | 165,717 | 153,543 | 12,174 | 495,015 | 470,991 | 24,024 | ||||||||||||||
| Interruptible Transportation | 1,060 | 6,354 | (5,294 | ) | 5,078 | 18,469 | (13,391 | ) | ||||||||||||
| 184,511 | 179,733 | 4,778 | 592,676 | 576,629 | 16,047 | |||||||||||||||
| Gathering Volume - (MMcf) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||
| Increase | Increase | |||||||||||||||||||
| 2017 | 2016 | (Decrease) | 2017 | 2016 | (Decrease) | |||||||||||||||
| Gathered Volume - Affiliated | 48,838 | 46,360 | 2,478 | 150,005 | 119,355 | 30,650 | ||||||||||||||
| Utility Throughput - (MMcf) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||
| Increase | Increase | |||||||||||||||||||
| 2017 | 2016 | (Decrease) | 2017 | 2016 | (Decrease) | |||||||||||||||
| Retail Sales: | ||||||||||||||||||||
| Residential Sales | 8,105 | 9,209 | (1,104 | ) | 48,817 | 46,828 | 1,989 | |||||||||||||
| Commercial Sales | 1,170 | 1,254 | (84 | ) | 7,373 | 6,770 | 603 | |||||||||||||
| Industrial Sales | 48 | — | 48 | 282 | 233 | 49 | ||||||||||||||
| 9,323 | 10,463 | (1,140 | ) | 56,472 | 53,831 | 2,641 | ||||||||||||||
| Off-System Sales | — | — | — | 1,295 | 1,243 | 52 | ||||||||||||||
| Transportation | 13,799 | 14,857 | (1,058 | ) | 60,453 | 59,770 | 683 | |||||||||||||
| 23,122 | 25,320 | (2,198 | ) | 118,220 | 114,844 | 3,376 | ||||||||||||||
| Energy Marketing Volume | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||
| Increase | Increase | |||||||||||||||||||
| 2017 | 2016 | (Decrease) | 2017 | 2016 | (Decrease) | |||||||||||||||
| Natural Gas (MMcf) | 7,722 | 8,537 | (815 | ) | 32,969 | 33,800 | (831 | ) | ||||||||||||
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding Operating Results and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company's ongoing operating results and for comparing the Company’s financial performance to other companies. The Company's management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP.
Management defines Operating Results as reported GAAP earnings before items impacting comparability. The table at page 1 of this report reconciles National Fuel's reported GAAP earnings to Operating Results for the three and nine months ended June 30, 2017 and 2016.
Management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, depreciation, depletion and amortization, interest and other income, impairments, items impacting comparability and income taxes.
The following tables reconcile National Fuel's reported GAAP earnings to Adjusted EBITDA for the three and nine months ended June 30, 2017 and 2016:
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||||
| (in thousands) | ||||||||||||||||||
| Reported GAAP Earnings | $ | 59,714 | $ | 8,286 | $ | 237,906 | $ | (328,510 | ) | |||||||||
| Depreciation, Depletion and Amortization | 55,617 | 58,802 | 168,812 | 193,300 | ||||||||||||||
| Interest and Other Income | (2,223 | ) | (2,083 | ) | (7,572 | ) | (9,813 | ) | ||||||||||
| Interest Expense | 30,071 | 30,218 | 89,921 | 92,201 | ||||||||||||||
| Income Taxes | 35,792 | 8,740 | 145,195 | (251,641 | ) | |||||||||||||
|
Impairment of Oil and Gas Producing
Properties |
— | 82,658 | — | 915,552 | ||||||||||||||
|
Joint Development Agreement Professional
Fees |
— | 3,173 | — | 7,855 | ||||||||||||||
| Adjusted EBITDA | $ | 178,971 | $ | 189,794 | $ | 634,262 | $ | 618,944 | ||||||||||
| Adjusted EBITDA by Segment | ||||||||||||||||||
| Pipeline and Storage Adjusted EBITDA | $ | 44,163 | $ | 48,515 | $ | 141,279 | $ | 152,929 | ||||||||||
| Gathering Adjusted EBITDA | 23,901 | 22,433 | 73,174 | 57,722 | ||||||||||||||
| Total Midstream Businesses Adjusted EBITDA | 68,064 | 70,948 | 214,453 | 210,651 | ||||||||||||||
| Exploration and Production Adjusted EBITDA | 89,229 | 97,924 | 285,675 | 268,673 | ||||||||||||||
| Utility Adjusted EBITDA | 25,322 | 22,900 | 139,232 | 138,284 | ||||||||||||||
| Energy Marketing Adjusted EBITDA | (1,017 | ) | (930 | ) | 3,213 | 6,569 | ||||||||||||
| Corporate and All Other Adjusted EBITDA | (2,627 | ) | (1,048 | ) | (8,311 | ) | (5,233 | ) | ||||||||||
| Total Adjusted EBITDA | $ | 178,971 | $ | 189,794 | $ | 634,262 | $ | 618,944 | ||||||||||
|
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES SEGMENT ADJUSTED EBITDA |
||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| (in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
|
Exploration and Production Segment |
||||||||||||||||||
| Reported GAAP Earnings | $ | 30,123 | $ | (19,165 | ) | $ | 98,972 | $ | (469,586 | ) | ||||||||
| Depreciation, Depletion and Amortization | 27,448 | 31,279 | 85,353 | 112,586 | ||||||||||||||
| Interest and Other Income | (217 | ) | (88 | ) | (451 | ) | (781 | ) | ||||||||||
| Interest Expense | 13,444 | 13,753 | 40,270 | 41,882 | ||||||||||||||
| Income Taxes | 18,431 | (13,686 | ) | 61,531 | (338,835 | ) | ||||||||||||
| Impairment of Oil and Gas Producing Properties | — | 82,658 | — | 915,552 | ||||||||||||||
| Joint Development Agreement Professional Fees | — | 3,173 | — | 7,855 | ||||||||||||||
| Adjusted EBITDA | $ | 89,229 | $ | 97,924 | $ | 285,675 | $ | 268,673 | ||||||||||
|
Pipeline and Storage Segment |
||||||||||||||||||
| Reported GAAP Earnings | $ | 16,031 | $ | 17,323 | $ | 54,656 | $ | 59,794 | ||||||||||
| Depreciation, Depletion and Amortization | 10,513 | 11,023 | 30,651 | 32,144 | ||||||||||||||
| Interest and Other Income | (842 | ) | (894 | ) | (2,928 | ) | (3,178 | ) | ||||||||||
| Interest Expense | 8,489 | 8,528 | 25,177 | 25,017 | ||||||||||||||
| Income Taxes | 9,972 | 12,535 | 33,723 | 39,152 | ||||||||||||||
| Adjusted EBITDA | $ | 44,163 | $ | 48,515 | $ | 141,279 | $ | 152,929 | ||||||||||
|
Gathering Segment |
||||||||||||||||||
| Reported GAAP Earnings | $ | 10,107 | $ | 9,473 | $ | 31,373 | $ | 21,962 | ||||||||||
| Depreciation, Depletion and Amortization | 4,131 | 3,608 | 12,008 | 11,407 | ||||||||||||||
| Interest and Other Income | (288 | ) | (89 | ) | (642 | ) | (191 | ) | ||||||||||
| Interest Expense | 2,411 | 1,794 | 6,739 | 6,781 | ||||||||||||||
| Income Taxes | 7,540 | 7,647 | 23,696 | 17,763 | ||||||||||||||
| Adjusted EBITDA | $ | 23,901 | $ | 22,433 | $ | 73,174 | $ | 57,722 | ||||||||||
|
Utility Segment |
||||||||||||||||||
| Reported GAAP Earnings | $ | 4,348 | $ | 2,179 | $ | 51,103 | $ | 52,745 | ||||||||||
| Depreciation, Depletion and Amortization | 13,086 | 12,234 | 39,502 | 35,511 | ||||||||||||||
| Interest and Other Income | (579 | ) | (460 | ) | (994 | ) | (2,070 | ) | ||||||||||
| Interest Expense | 7,062 | 7,192 | 21,454 | 21,684 | ||||||||||||||
| Income Taxes | 1,405 | 1,755 | 28,167 | 30,414 | ||||||||||||||
| Adjusted EBITDA | $ | 25,322 | $ | 22,900 | $ | 139,232 | $ | 138,284 | ||||||||||
|
Energy Marketing Segment |
||||||||||||||||||
| Reported GAAP Earnings | $ | (564 | ) | $ | (590 | ) | $ | 2,122 | $ | 4,117 | ||||||||
| Depreciation, Depletion and Amortization | 69 | 70 | 210 | 208 | ||||||||||||||
| Interest and Other Income | (168 | ) | (165 | ) | (475 | ) | (330 | ) | ||||||||||
| Interest Expense | 13 | 11 | 38 | 37 | ||||||||||||||
| Income Taxes | (367 | ) | (256 | ) | 1,318 | 2,537 | ||||||||||||
| Adjusted EBITDA | $ | (1,017 | ) | $ | (930 | ) | $ | 3,213 | $ | 6,569 | ||||||||
|
Corporate and All Other |
||||||||||||||||||
| Reported GAAP Earnings | $ | (331 | ) | $ | (934 | ) | $ | (320 | ) | $ | 2,458 | |||||||
| Depreciation, Depletion and Amortization | 370 | 588 | 1,088 | 1,444 | ||||||||||||||
| Interest and Other Income | (129 | ) | (387 | ) | (2,082 | ) | (3,263 | ) | ||||||||||
| Interest Expense | (1,348 | ) | (1,060 | ) | (3,757 | ) | (3,200 | ) | ||||||||||
| Income Taxes | (1,189 | ) | 745 | (3,240 | ) | (2,672 | ) | |||||||||||
| Adjusted EBITDA | $ | (2,627 | ) | $ | (1,048 | ) | $ | (8,311 | ) | $ | (5,233 | ) | ||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||
| AND SUBSIDIARIES | ||||||||||
|
Quarter Ended June 30 (unaudited) |
2017 | 2016 | ||||||||
| Operating Revenues | $ | 348,368,000 | $ | 335,617,000 | ||||||
| Net Income Available for Common Stock | $ | 59,714,000 | $ | 8,286,000 | ||||||
| Earnings Per Common Share: | ||||||||||
| Basic | $ | 0.70 | $ | 0.10 | ||||||
| Diluted | $ | 0.69 | $ | 0.10 | ||||||
| Weighted Average Common Shares: | ||||||||||
| Used in Basic Calculation | 85,422,313 | 84,917,664 | ||||||||
| Used in Diluted Calculation | 86,064,464 | 85,470,216 | ||||||||
|
Nine Months Ended June 30 (unaudited) |
||||||||||
| Operating Revenues | $ | 1,292,944,000 | $ | 1,159,943,000 | ||||||
| Net Income (Loss) Available for Common Stock | $ | 237,906,000 | $ | (328,510,000 | ) | |||||
| Earnings (Loss) Per Common Share: | ||||||||||
| Basic | $ | 2.79 | $ | (3.87 | ) | |||||
| Diluted | $ | 2.77 | $ | (3.87 | ) | |||||
| Weighted Average Common Shares: | ||||||||||
| Used in Basic Calculation | 85,315,154 | 84,791,447 | ||||||||
| Used in Diluted Calculation | 85,950,742 | 84,791,447 | ||||||||
|
Twelve Months Ended June 30 (unaudited) |
||||||||||
| Operating Revenues | $ | 1,585,416,000 | $ | 1,461,005,000 | ||||||
| Net Income (Loss) Available for Common Stock | $ | 275,459,000 | $ | (516,213,000 | ) | |||||
| Earnings (Loss) Per Common Share: | ||||||||||
| Basic | $ | 3.23 | $ | (6.09 | ) | |||||
| Diluted | $ | 3.21 | $ | (6.09 | ) | |||||
| Weighted Average Common Shares: | ||||||||||
| Used in Basic Calculation | 85,239,850 | 84,735,887 | ||||||||
| Used in Diluted Calculation | 85,881,424 | 84,735,887 | ||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170803006507/en/
