National Fuel Reports Fourth Quarter and Full Year Fiscal 2026 Earnings

WILLIAMSVILLE, N.Y., Nov. 04, 2026 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the fourth quarter and fiscal year ended September 30, 2026.

FOURTH QUARTER FISCAL 2026 SUMMARY

• GAAP earnings of $97.5 million, or earnings per share (EPS) of $1.02, compared to GAAP earnings of $107.3 million, or $1.18 per share, in the prior year.
• Adjusted EPS of $1.22, compared to $1.22 from the prior year. See non-GAAP reconciliation on page 2.

FISCAL 2026 HIGHLIGHTS

• GAAP earnings per share of $7.02, compared to $5.68 per share in fiscal 2025.
• Adjusted earnings per share of $7.55, an increase of 9%, compared to $6.91 per share in fiscal 2025.
• Net cash provided by operating activities of $1,272 million for the twelve months ending September 30, 2026, with free cash flow of $199 million (as defined on page 27) through the same period.
• The Company announced its 56th consecutive dividend increase to an annual rate of $2.22 per share, continuing its long history of returning cash to shareholders.

RECENT STRATEGIC HIGHLIGHTS

• Completed the acquisition of CenterPoint Energy's Ohio natural gas utility on October 1, 2026, doubling the Company's Utility rate base and adding approximately 335,000 utility customers.
• Announced a plan to separate the Company’s Integrated Upstream and Gathering business ("IUG") into a standalone publicly traded company which is expected to be named Seneca Resources, with the transaction anticipated to occur in the second half of calendar 2027.
• The Utility segment realized key regulatory initiatives, with the approval of a System Modernization Tracker in New York, and the approval of a $10.4 million rate increase in the Company’s Pennsylvania jurisdiction.
• The Pipeline & Storage segment continued to successfully advance key expansion projects, placing the Tioga Pathway and Shippingport Lateral projects in service on November 1, 2026.
• IUG initiated a discretionary land acquisition program to further expand its best-in-class core inventory depth in Tioga County, adding significant acreage since the program commenced.
  

MANAGEMENT COMMENTS

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: "Fiscal 2026 was an excellent year for National Fuel. The Company grew adjusted earnings per share 9% year over year, while generating significant free cash flow and continuing to return cash to our shareholders through our dividend, which we’ve paid for the 124^th consecutive year.

"As we look forward, National Fuel is entering an exciting next chapter. The long-term outlook for each of our businesses is strong. With the closing of our Ohio gas utility acquisition and our announced plan to separate our Integrated Upstream and Gathering business, we are well positioned to establish two scaled, financially sound publicly traded natural gas businesses. Upon completion of the separation, National Fuel will become a fully rate-regulated natural gas company with approximately $5 billion in rate base and a strong growth profile. Seneca Resources will be a premier, integrated Appalachian natural gas business with a deep inventory of high-quality development opportunities that has a positive outlook for long-term production and free cash flow growth. Against a strong long-term outlook for natural gas demand, we believe both businesses are exceptionally well positioned for continued success."

RECONCILIATION OF GAAP EARNINGS TO ADJUSTED EARNINGS

INITIATION OF FISCAL 2027 GUIDANCE

The Company is initiating guidance for fiscal 2027. IUG will remain part of National Fuel's consolidated financial results until completion of the planned separation. Accordingly, the Company's fiscal 2027 guidance includes the expected results of IUG for the full fiscal year.

The Company is initiating adjusted earnings per share guidance for fiscal 2027 with a range of $6.00 to $6.40.

The Company is assuming an average NYMEX natural gas price of $2.85 per MMBtu in fiscal 2027, which approximates the current NYMEX forward curve at this time. Given the continued volatility in NYMEX natural gas prices, the Company is providing the following sensitivities to its adjusted earnings per share guidance:

2027 OUTLOOK

Regulated:

• Utility segment earnings are expected to increase as a result of the Ohio gas utility acquisition, the continuation of our multi-year New York rate case settlement, and the recently approved base rate increase in Pennsylvania.
• Pipeline & Storage segment earnings are expected to increase, driven by the Tioga Pathway and Shippingport Lateral projects, which were placed in service on November 1, 2026, as well as ongoing ratemaking activity at Supply Corporation, with the resolution of the pending Section 4 rate case expected by the close of the calendar year.
• Combined Utility and Pipeline & Storage segment capital expenditures are expected to range between $490 and $580 million, driven by continued investment in our longstanding modernization programs, as well as the addition of the Ohio natural gas utility.
  

Integrated Upstream and Gathering:

• IUG expects fiscal 2027 production to be 400 to 435 Bcf, which incorporates the impact of estimated price-related marketing curtailments during October.
• IUG capital expenditures are projected to be $600 to $640 million, including $25 to $30 million of capital related to third-party gathering expansions and non-operated wells, with the potential for an additional $50 to $100 million of discretionary land spending.

Additional details on the Company's updated forecast assumptions and business segment guidance for fiscal 2027 are outlined in the table on page 8.

PLANNED SEPARATION OF INTEGRATED UPSTREAM AND GATHERING

Following its recently announced plan to separate the Integrated Upstream and Gathering business, National Fuel is progressing toward the creation of two independent, publicly traded companies. The separation is designed to provide each business with greater flexibility to pursue its distinct growth opportunities and capital allocation priorities, while maintaining the key benefits of integration within each business.

The newly created company is expected to be named Seneca Resources and is expected to trade on the New York Stock Exchange. Seneca Resources’ premier Appalachian asset base, low-cost integrated operations and deep inventory of development opportunities provide a strong foundation for long-term growth and significant free cash flow generation. Following the separation, National Fuel will be a fully rate-regulated natural gas company with approximately $5 billion of rate base and significant long-term investment opportunities across its Utility and Pipeline & Storage businesses.

National Fuel continues to expect the separation to be completed in the second half of calendar 2027 through a pro rata distribution of at least 80.1% of IUG shares to National Fuel shareholders. National Fuel expects to retain up to a 19.9% ownership interest in IUG following the separation, which it intends to dispose of in a tax-efficient manner to further strengthen its investment grade balance sheet.

DISCUSSION OF FOURTH QUARTER RESULTS BY SEGMENT

The following earnings discussion of each operating segment for the quarter ended September 30, 2026 is summarized in a tabular form on pages 9 and 10 of this report (earnings drivers for the fiscal year ended September 30, 2026 are summarized on pages 11 and 12).

Note that management defines adjusted earnings as reported GAAP earnings adjusted for items impacting comparability, and adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.

Integrated Upstream and Gathering Segment

The Integrated Upstream and Gathering segment's exploration and production operations are carried out by Seneca Resources Company, LLC (“Seneca”) and its gathering operations are carried out by the operating subsidiaries of National Fuel Gas Midstream Company, LLC ("Gathering"). Seneca explores for, develops, and produces primarily natural gas reserves in Pennsylvania. Gathering constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which primarily delivers Seneca's production and, to a lesser extent, third-party Appalachian production to various interstate pipelines.

The Integrated Upstream and Gathering segment's fourth quarter GAAP earnings increased $11.9 million versus the prior year. Excluding items impacting comparability, adjusted earnings increased $8.5 million from the prior year, attributable to higher realized natural gas prices, lower interest expense, and lower income taxes, which were partially offset by lower production volumes.

Seneca’s weighted average realized natural gas price, after the impact of hedging and transportation costs, was $2.80 per Mcf, an increase of $0.19 per Mcf, or 7%, compared to the prior year, as gains in Seneca's hedging portfolio more than offset wider basis differentials and lower NYMEX prices during the quarter.

During the fourth quarter, Seneca produced 104 Bcf of natural gas, a decrease of 7.5 Bcf, or 7%, compared to the prior year, as production from recently turned-in-line wells was more than offset by natural declines from existing wells.

On a per unit basis, fourth quarter total operating costs were $0.12 higher compared to the prior year, primarily due to higher per unit LOE and DD&A expense. Consistent with previous quarters during the fiscal year, the increase in per unit LOE compared to the prior year was largely driven by additional third-party gathering expenses. The increase in DD&A expense was largely driven by the impact of ceiling test impairments Seneca recorded in fiscal 2025 that artificially lowered the per unit DD&A rate in the prior year.

The decrease in income taxes was primarily driven by higher tax benefits associated with corporate tax losses, a portion of which was allocated to the IUG segment.

Proved Reserves Year-End Update

Seneca’s total proved reserves at September 30, 2026 were 5,191 Bcfe, an increase of 209 Bcfe, or 4%, from September 30, 2025. This increase was a result of Seneca replacing 150% of its fiscal 2026 production. Proved developed reserves at the end of fiscal 2026 were 3,707 Bcfe, representing 71% of total proved reserves.

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. The Pipeline and Storage segment does not include financial results from Honeoye Storage Corporation ("HSC"), which the Company acquired on October 30, 2026.

The Pipeline and Storage segment’s fourth quarter GAAP earnings decreased $1.7 million versus the prior year, as higher operating revenues were more than offset by higher O&M and DD&A expense.

Operating revenues increased $1.0 million, primarily driven by higher transportation revenues related to new long-term contracts. O&M expense increased $2.0 million, primarily due to higher fuel and material costs. DD&A expense increased $1.4 million, primarily due to higher average depreciable plant in service compared to the prior year.

Utility Segment

The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution Corporation”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.

The Utility segment’s fourth quarter GAAP earnings increased $2.7 million, as higher customer margin (operating revenue less purchased gas sold) was partially offset by higher O&M expense. The $6.2 million increase in customer margin was primarily driven by the impact of usage, the implementation of year two of the multi-year joint settlement in New York, and revenues from the Utility's Distribution System Improvement Charge in Pennsylvania. Partially offsetting the increase in customer margin was higher O&M expense, primarily driven by higher fuel costs, as well as an increase in uncollectible expense largely due to a non-recurring benefit from a regulatory adjustment in the prior year.

Corporate and All Other

The Company’s operations that are included in Corporate and All Other generated a combined net loss of $29.1 million in the fourth quarter, largely due to transaction and financing costs related to the Ohio gas utility acquisition that closed on October 1, 2026, and costs related to the pending IUG separation.

EARNINGS TELECONFERENCE

A conference call to discuss the results will be held on Thursday, November 5, 2026, at 9 a.m. ET. All participants must pre-register to join this conference using the Participant Registration link. A webcast link to the conference call is provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com, and a replay of the webcast will be available on the website following the call.

National Fuel is an integrated energy company reporting financial results for three operating segments: Integrated Upstream and Gathering, Pipeline and Storage, and Utility. Additional information about National Fuel is available at www.nationalfuel.com.

Certain statements contained herein, including statements identified by the use of the words “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “guidance,” “intends,” “may,” “might,” “outlook,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “targets,” “will,” “would”, and variations of such words and similar future or conditional expressions, and statements which are other than statements of historical facts, are intended to identify “forward-looking statements” as defined under U.S. federal securities laws, including, but not limited to, statements, estimates, and projections relating to the potential separation of the Company into two companies (the “Separation”), including the timing and structure of the Separation, the characteristics of the separated businesses, and the expected benefits of the Separation, future operating and financial performance and long-term strategy, and the assumptions underlying such expected benefits, targets, strategies, and statements. These forward-looking statements are based on management’s beliefs, expectations, estimates, and projections at the time they are made and are not guarantees of future performance. 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. There can be no guarantees with respect to whether the Separation will be completed. In addition to other factors, the following are among the important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: the ability to effect the Separation and to meet the conditions related thereto; the ability to obtain any consents or approvals required to complete the Separation; the ability of the separated companies to each succeed as standalone publicly traded companies; negative effects of the announcement or pendency of the Separation on the market price of the Company’s securities and/or on the Company’s financial performance; the possibility that the Separation will not achieve its intended benefits; the possibility of disruption, including disputes, litigation, or unanticipated costs in connection with the Separation; the impact of the Separation on the Company’s businesses and the risk that the Separation may be more difficult, time-consuming, or costly than expected, including the impact on the Company’s resources, systems, procedures, and controls, diversion of management’s attention, and the impact and possible disruption of existing relationships with regulators, customers, suppliers, employees, and other business counterparties; the ability to achieve anticipated capital structures in connection with the Separation; the ability to achieve anticipated credit ratings in connection with the Separation; the ability to achieve anticipated tax treatments in connection with the Separation and future, if any, divestitures, mergers, acquisitions, and other portfolio changes, and the impact of changes in relevant tax and other laws and regulations; the Company's ability to complete strategic transactions, such as the plan to separate the Company into two independent, publicly traded companies through a tax-free spin-off of the Company’s Integrated Upstream and Gathering business, including receipt of required regulatory clearances and satisfaction of other conditions to closing, and to recognize the anticipated benefits of such transactions; 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; governmental/regulatory actions, initiatives, and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas, and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in economic conditions, including the imposition of additional tariffs on U.S. imports and related retaliatory tariffs, inflationary pressures, supply chain issues, liquidity challenges, and global, national, or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; changes in the price of natural gas; impairments under the SEC’s full cost ceiling test for natural gas reserves; the creditworthiness or performance of the Company’s key suppliers, customers, and counterparties; 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, other investments, and acquisitions, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; negotiations with the collective bargaining units representing the Company’s workforce, including potential work stoppages during negotiations; changes in price differentials between similar quantities of natural gas 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; the impact of information technology disruptions, cybersecurity, or data security breaches, including the impact of issues that may arise from the use of artificial intelligence technologies; factors affecting the Company’s ability to successfully identify, drill for, and produce economically viable natural gas reserves, including, among others, geology, lease availability and costs, title disputes, weather conditions, water availability and disposal or recycling opportunities of used water, 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; increased costs, delays, or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas 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 natural gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions, including those related to climate change; 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; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, or acts of war, as well as economic and operational disruptions due to third-party outages; significant differences between the Company’s projected and actual capital expenditures and operating expenses; increasing costs of insurance, changes in coverage, and the ability to obtain insurance; other factors described in the risk factors set forth in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K and subsequent Current Reports on Form 8-K and Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation, and disclaims any duty to update, revise, or withdraw any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by applicable law or regulation.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

GUIDANCE SUMMARY

As discussed on page 2, the Company is initiating preliminary adjusted earnings per share guidance for fiscal 2027. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below. IUG will remain part of National Fuel's consolidated financial results until completion of the planned separation. Accordingly, the Company's fiscal 2027 guidance includes the expected results of IUG for the full fiscal year.

While the Company expects to record certain adjustments to unrealized gain or loss on investments during the fiscal year ending September 30, 2027, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

(1) Integrated Upstream and Gathering Capital Expenditures exclude $50 to $100 million of discretionary land spending.