Part I. Financial Information [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements and accompanying notes for the three and nine months ended June 30, 2025 [Consolidated Statements of Income and Earnings Reinvested in the Business](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Earnings%20Reinvested%20in%20the%20Business) Net income for the nine months ended June 30, 2025, rose to $411.2 million, driven by a 15.2% increase in operating revenues Consolidated Income Statement Highlights (Nine Months Ended June 30) | Financial Metric | 2025 (Thousands USD) | 2024 (Thousands USD) | Change | | :--- | :--- | :--- | :--- | | **Operating Revenues** | $1,811,262 | $1,572,742 | +15.2% | | **Operating Income** | $633,694 | $406,294 | +56.0% | | **Net Income** | $411,162 | $245,134 | +67.7% | | **Diluted EPS** | $4.51 | $2.65 | +70.2% | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets grew slightly to $8.45 billion, supported by increased property, plant, and equipment Key Balance Sheet Items | Balance Sheet Item | June 30, 2025 (Thousands USD) | September 30, 2024 (Thousands USD) | | :--- | :--- | :--- | | **Total Assets** | $8,446,160 | $8,319,770 | | **Total Current Assets** | $408,155 | $355,919 | | **Long-Term Debt, Net** | $2,381,852 | $2,188,243 | | **Total Comprehensive Shareholders' Equity** | $2,975,488 | $2,848,343 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations remained stable at $862.3 million for the nine months ended June 30, 2025, while investing and financing activities resulted in cash outflows Cash Flow Summary (Nine Months Ended June 30) | Cash Flow Activity | 2025 (Thousands USD) | 2024 (Thousands USD) | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $862,276 | $868,015 | | **Net Cash Used in Investing Activities** | $(617,964) | $(685,571) | | **Net Cash Used in Financing Activities** | $(243,217) | $(156,477) | | **Net Increase in Cash** | $1,095 | $25,967 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key disclosures include a $108.3 million impairment charge, a $1.0 billion debt issuance, and $53.8 million in share repurchases - A non-cash, pre-tax impairment charge of **$108.3 million** was recognized in the Exploration and Production segment for the quarter ended December 31, 2024, as the book value of properties exceeded the SEC full cost ceiling[32](index=32&type=chunk) - On February 19, 2025, the company issued **$1.0 billion in new notes** ($500 million of 5.50% notes due 2030 and $500 million of 5.95% notes due 2035)[80](index=80&type=chunk) - During the nine months ended June 30, 2025, the company repurchased 828,720 shares of its common stock for a total cost of **$53.8 million** under its $200 million share repurchase program[77](index=77&type=chunk) - The company's New York utility division received approval for a three-year rate plan authorizing a revenue requirement increase of **$57.3 million** in fiscal 2025[96](index=96&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial performance, segment results, liquidity, and capital resources, highlighting earnings drivers and strategic initiatives [Overview](index=30&type=section&id=Overview) The company is advancing major pipeline projects while managing a significant impairment charge, a new rate plan, and substantial capital market activities - The company is advancing two key pipeline expansion projects: the **Tioga Pathway Project** ($101M estimated cost) and the **Shippingport Lateral Project** ($57M estimated cost)[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) - A non-cash impairment charge of **$108.3 million** ($79.1 million after-tax) was recorded in the Exploration and Production segment during the quarter ended December 31, 2024[109](index=109&type=chunk) - In February 2025, the company issued **$1.0 billion in new notes** to refinance existing debt and repurchased **828,720 shares for $53.8 million** during the nine-month period[110](index=110&type=chunk)[112](index=112&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Consolidated earnings increased by $166.1 million, primarily driven by a $135.2 million earnings rise in the Exploration and Production segment Earnings by Segment (Nine Months Ended June 30) | Segment | 2025 Earnings (Thousands USD) | 2024 Earnings (Thousands USD) | Change (Thousands USD) | | :--- | :--- | :--- | :--- | | Exploration and Production | $137,722 | $2,521 | $135,201 | | Pipeline and Storage | $93,019 | $85,482 | $7,537 | | Gathering | $83,483 | $82,510 | $973 | | Utility | $101,040 | $73,848 | $27,192 | | **Total Consolidated** | **$411,162** | **$245,134** | **$166,028** | - The Exploration and Production segment's revenue increased by **$125.2 million**, driven by a **$0.28 per Mcf increase** in the weighted average natural gas price and a **14.7 Bcf increase** in production[128](index=128&type=chunk) - The Utility segment's earnings increased by **$27.2 million**, primarily due to the impact of new base rates in its New York jurisdiction, which contributed **$25.2 million** to the increase[153](index=153&type=chunk) [Capital Resources and Liquidity](index=43&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintained strong liquidity through operations and borrowings, funding $596.0 million in capital expenditures and managing debt effectively - Net cash from operating activities was **$862.3 million** for the nine months ended June 30, 2025, a slight decrease from $868.0 million in the prior year period[168](index=168&type=chunk) Capital Expenditures by Segment (Nine Months Ended June 30) | Segment | 2025 (Millions USD) | 2024 (Millions USD) | | :--- | :--- | :--- | | Exploration and Production | $354.4 | $399.8 | | Pipeline and Storage | $58.1 | $68.8 | | Gathering | $58.2 | $69.1 | | Utility | $128.3 | $117.5 | | **Total** | **$596.0** | **$655.5** | - The company maintains a **$1.0 billion unsecured revolving credit facility**, extended through February 2029, with a debt-to-capitalization ratio of **0.45**, well below the 0.65 limit[184](index=184&type=chunk)[187](index=187&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section cross-references the Management's Discussion and Analysis for disclosures on the company's exposure to market risks - The report directs readers to the "Market Risk Sensitive Instruments" section in Item 2 (MD&A) for disclosures on market risk[219](index=219&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Based on an evaluation as of the end of the reporting period, the Chief Executive Officer and Chief Financial Officer concluded that the company's **disclosure controls and procedures were effective**[220](index=220&type=chunk) - There were **no changes** in the company's internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, these controls[221](index=221&type=chunk) Part II. Other Information [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to other report sections for details on legal, environmental, and regulatory matters - For information on legal proceedings, the report refers to Note 7 (Commitments and Contingencies) and the MD&A section covering environmental and regulatory matters[222](index=222&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its 2024 Form 10-K and subsequent filings - There have been **no material changes** to the risk factors disclosed in the Company's 2024 Form 10-K and the Form 10-Q for the quarter ended March 31, 2025[223](index=223&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details unregistered share issuances to directors and provides a breakdown of its quarterly share repurchase activities Issuer Purchases of Equity Securities (For the Quarter Ended June 30, 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | Apr. 1 - 30, 2025 | 64,677 | $73.72 | 53,952 | | May 1 - 31, 2025 | 11,376 | $81.35 | — | | Jun. 1 - 30, 2025 | 11,433 | $81.62 | — | | **Total** | **87,486** | **$75.35** | **53,952** | - As of June 30, 2025, approximately **$82.1 million remained available** for future purchases under the company's $200 million share repurchase plan[226](index=226&type=chunk)[227](index=227&type=chunk) [Other Information](index=52&type=section&id=Item%205.%20Other%20Information) The company confirms no directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted or terminated any "Rule 10b5–1 trading arrangement" or "non-Rule 10b5–1 trading arrangement" during the quarter ended June 30, 2025[228](index=228&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including officer certifications and interactive data files - The exhibits filed with this report include CEO and CFO certifications (Exhibits 31.1, 31.2, 32) and interactive data files in Inline XBRL format (Exhibit 101)[229](index=229&type=chunk)[230](index=230&type=chunk)

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

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

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

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) [Third Quarter Fiscal 2025 Performance Summary](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Performance%20Summary) National Fuel Gas Company reported strong Q3 FY2025 results, with a significant turnaround in GAAP earnings and a 66% increase in adjusted EPS, driven by record production and higher natural gas prices Q3 FY2025 vs Q3 FY2024 Earnings Per Share | Metric | Q3 FY2025 ($/share) | Q3 FY2024 ($/share) | Change ($/share) | | :--- | :--- | :--- | :--- | | **GAAP EPS** | $1.64 | $(0.59) | +$2.23 | | **Adjusted EPS** | $1.64 | $0.99 | +66% | - Exploration and Production segment's adjusted operating results surged **157%** to **$0.95 per share**, fueled by a **16%** increase in natural gas production to a record **112 Bcf**, higher realized prices, and lower unit costs[6](index=6&type=chunk) - The company is revising its fiscal 2025 adjusted EPS guidance to a range of **$6.80 to $6.95 per share**[6](index=6&type=chunk) - Key pipeline development milestones were achieved, including the announcement of the Shippingport Lateral Project and FERC approval for the Tioga Pathway Project[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributed strong Q3 performance to record upstream production and capital efficiency, anticipating significant FY2026 earnings growth from production and regulated business expansion - Management noted record production and throughput in integrated upstream and gathering operations, coupled with improved capital efficiency[4](index=4&type=chunk) - The company anticipates significant earnings growth in fiscal 2026, supported by momentum in all business segments and a positive long-term outlook for natural gas[5](index=5&type=chunk) - Strong well results in the Eastern Development Area (EDA) underpin expectations for mid-single-digit production growth in the coming years[5](index=5&type=chunk) [Capital Allocation](index=2&type=section&id=Capital%20Allocation) The company increased its annual dividend by **4%** for the 55th consecutive year and repurchased approximately **2 million shares**, pausing buybacks to maintain balance sheet flexibility - The Board of Directors approved a **4%** dividend increase, resulting in an annual rate of **$2.14 per share**, marking the 55th consecutive year of dividend increases[8](index=8&type=chunk) - Since March 2024, the company repurchased approximately **2 million shares** at an average price of **$59.70 per share**[8](index=8&type=chunk) - Share repurchases were paused during the quarter to preserve balance sheet flexibility for potential growth opportunities[8](index=8&type=chunk) [Financial Guidance](index=2&type=section&id=Financial%20Guidance) [Fiscal 2025 Guidance Update](index=2&type=section&id=Fiscal%202025%20Guidance%20Update) National Fuel revised its FY2025 adjusted EPS guidance to **$6.80-$6.95**, reflecting strong Q3 results, higher production, and lower unit costs, despite lower expected natural gas prices FY 2025 Updated Guidance | Metric | Updated Range ($/share) | | :--- | :--- | | **Adjusted EPS** | $6.80 - $6.95 | - The guidance revision is based on an assumed average NYMEX natural gas price of **$3.25 per MMBtu** for the remaining three months of fiscal 2025[10](index=10&type=chunk) FY 2025 Key Assumptions | Metric | Guidance | | :--- | :--- | | **Consolidated Capital Expenditures** | $890 - $955 million | | **E&P Production (Bcf)** | 420 to 425 | | **Gathering Segment Revenues** | $255 - $260 million | | **Pipeline & Storage Segment Revenues** | $420 - $430 million | | **Utility Segment Customer Margin** | $450 - $460 million | [Fiscal 2026 Preliminary Guidance and Outlook](index=2&type=section&id=Fiscal%202026%20Preliminary%20Guidance%20and%20Outlook) Preliminary FY2026 guidance projects adjusted EPS of **$8.00-$8.50**, a **20% increase**, driven by improved capital efficiency, **6% production growth**, and regulated segment expansion FY 2026 Preliminary Adjusted EPS Guidance at Various NYMEX Prices | NYMEX Assumption ($/MMBtu) | Fiscal 2026 Adjusted EPS Range ($/share) | | :--- | :--- | | $3.00 | $6.35 - $6.85 | | $4.00 | $8.00 - $8.50 | | $5.00 | $9.75 - $10.25 | - Seneca's (E&P) capital expenditures are expected to decrease by **4%** while production is projected to increase by **6%** to a range of **440 to 455 Bcf**[13](index=13&type=chunk) - Regulated segment earnings are expected to increase due to ongoing modernization investments and recent ratemaking efforts[13](index=13&type=chunk) - Combined Utility and Pipeline & Storage capital expenditures are expected to increase by **$110 million** from FY2025, driven by modernization and significant expansion projects[13](index=13&type=chunk) [Segment Performance Analysis (Q3 FY2025)](index=4&type=section&id=Segment%20Performance%20Analysis%20(Q3%20FY2025)) [Upstream Business (Exploration and Production)](index=4&type=section&id=Upstream%20Business%20(Exploration%20and%20Production)) The E&P segment saw Q3 adjusted operating results surge by **$52.9 million** to **$86.7 million**, fueled by record **112 Bcf** natural gas production and higher realized prices E&P Segment Q3 Earnings (in thousands) | Metric | Q3 2025 (in thousands) | Q3 2024 (in thousands) | Variance (in thousands) | | :--- | :--- | :--- | :--- | | **GAAP Earnings** | $86,671 | $(112,028) | $198,699 | | **Adjusted Operating Results** | $86,704 | $33,843 | $52,861 | | **Adjusted EBITDA** | $202,488 | $128,535 | $73,953 | - Natural gas production reached a company record of **112 Bcf**, a **16%** increase from the prior year, driven by two highly prolific Utica pads in Tioga County[19](index=19&type=chunk) - The weighted average realized natural gas price increased by **$0.43** to **$2.71 per Mcf**, after hedging and transportation costs[20](index=20&type=chunk) E&P Operating Costs per Mcf | Cost per Mcf | Q3 2025 ($/Mcf) | Q3 2024 ($/Mcf) | Variance ($/Mcf) | | :--- | :--- | :--- | :--- | | **Total Cash Operating Costs** | $0.91 | $0.96 | $(0.05) | | **DD&A Expense** | $0.62 | $0.71 | $(0.09) | | **Total Operating Costs** | $1.53 | $1.67 | $(0.14) | [Midstream Businesses](index=5&type=section&id=Midstream%20Businesses) Midstream businesses showed mixed Q3 performance, with Gathering earnings up **$5.0 million** from higher throughput, while Pipeline and Storage earnings decreased by **$1.8 million** due to increased O&M expenses [Pipeline and Storage Segment](index=5&type=section&id=Pipeline%20and%20Storage%20Segment) The Pipeline and Storage segment's Q3 GAAP earnings decreased by **$1.8 million** to **$28.9 million**, primarily due to higher Operations and Maintenance expenses Pipeline and Storage Segment Q3 Earnings (in thousands) | Metric | Q3 2025 (in thousands) | Q3 2024 (in thousands) | Variance (in thousands) | | :--- | :--- | :--- | :--- | | **GAAP Earnings** | $28,857 | $30,690 | $(1,833) | | **Adjusted EBITDA** | $67,019 | $68,221 | $(1,202) | - The earnings decrease was mainly due to higher O&M expense from inflationary increases in personnel and contractor costs[23](index=23&type=chunk) [Gathering Segment](index=5&type=section&id=Gathering%20Segment) The Gathering segment' reported strong Q3 GAAP earnings, increasing by **$5.0 million** to **$30.0 million**, driven by a **13%** rise in operating revenues from higher throughput Gathering Segment Q3 Earnings (in thousands) | Metric | Q3 2025 (in thousands) | Q3 2024 (in thousands) | Variance (in thousands) | | :--- | :--- | :--- | :--- | | **GAAP Earnings** | $29,996 | $24,979 | $5,017 | | **Adjusted EBITDA** | $55,923 | $47,631 | $8,292 | - The earnings increase was primarily due to a **13%** rise in operating revenues from increased throughput from new wells in Tioga County[25](index=25&type=chunk) [Downstream Business (Utility)](index=6&type=section&id=Downstream%20Business%20(Utility)) The Utility segment's Q3 GAAP earnings nearly doubled to **$5.0 million**, a **95% increase**, primarily due to new rates from the New York rate case settlement and higher customer margin Utility Segment Q3 Earnings (in thousands) | Metric | Q3 2025 (in thousands) | Q3 2024 (in thousands) | Variance (in thousands) | | :--- | :--- | :--- | :--- | | **GAAP Earnings** | $4,997 | $2,559 | $2,438 | | **Adjusted EBITDA** | $25,743 | $21,047 | $4,696 | - The **95%** earnings increase was primarily a result of new rates approved in the New York rate case settlement[28](index=28&type=chunk) - Customer margin (operating revenues less purchased gas) increased by **$8.4 million**, driven by higher customer usage from colder weather and the new rate settlement[29](index=29&type=chunk) [Corporate and All Other](index=6&type=section&id=Corporate%20and%20All%20Other) The Corporate and All Other segment reported a net loss of **$0.7 million** for Q3, consistent with the prior-year period - The segment generated a net loss of **$0.7 million**, which was consistent with the prior-year period[31](index=31&type=chunk) [Consolidated Financial Statements](index=13&type=section&id=Consolidated%20Financial%20Statements) [Summary of Operations (Income Statement)](index=13&type=section&id=Summary%20of%20Operations%20(Income%20Statement)) National Fuel reported Q3 net income of **$149.8 million**, a significant improvement from a **$54.2 million** net loss in the prior year, driven by increased operating revenues and no asset impairment Consolidated Summary of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | **Operating Revenues** | $531,830 | $417,442 | | **Operating Income (Loss)** | $230,252 | $(51,440) | | **Net Income (Loss)** | $149,818 | $(54,158) | | **Diluted EPS** | $1.64 | $(0.59) | [Consolidated Balance Sheets](index=14&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$8.45 billion**, with shareholders' equity rising to **$2.98 billion** and long-term debt increasing to **$2.38 billion** Key Balance Sheet Items (in thousands) | Metric | June 30, 2025 (in thousands) | September 30, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $8,446,160 | $8,319,770 | | **Total Comprehensive Shareholders' Equity** | $2,975,488 | $2,848,343 | | **Long-Term Debt, Net** | $2,381,852 | $2,188,243 | | **Total Capitalization and Liabilities** | $8,446,160 | $8,319,770 | [Consolidated Statements of Cash Flows](index=15&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended June 30, 2025, operating cash flow remained stable at **$862.3 million**, investing cash outflow decreased to **$618.0 million**, and financing cash outflow increased to **$243.2 million** Consolidated Cash Flows - Nine Months Ended June 30 (in thousands) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $862,276 | $868,015 | | **Net Cash Used in Investing Activities** | $(617,964) | $(685,571) | | **Net Cash Used in Financing Activities** | $(243,217) | $(156,477) | | **Net Increase in Cash** | $1,095 | $25,967 | [Appendix: Reconciliations and Supplemental Data](index=2&type=section&id=Appendix%3A%20Reconciliations%20and%20Supplemental%20Data) [Reconciliation of GAAP Earnings to Adjusted Operating Results](index=2&type=section&id=Reconciliation%20of%20GAAP%20Earnings%20to%20Adjusted%20Operating%20Results) The reconciliation shows Q3 FY2025 GAAP earnings of **$149.8 million** adjusted to **$149.2 million** operating results, while Q3 FY2024 GAAP earnings of **-$54.2 million** were adjusted for a **$200.7 million** asset impairment Q3 GAAP to Adjusted Operating Results Reconciliation (in thousands) | Description | Q3 2025 (in thousands) | Q3 2024 (in thousands) | | :--- | :--- | :--- | | **Reported GAAP Earnings** | $149,818 | $(54,158) | | Impairment of assets (E&P) | — | $200,696 | | Tax impact of impairment | — | $(55,686) | | Other | $(615) | $873 | | **Adjusted Operating Results** | $149,203 | $91,725 | Q3 Adjusted EBITDA Reconciliation (in thousands) | Description | Q3 2025 (in thousands) | Q3 2024 (in thousands) | | :--- | :--- | :--- | | **Reported GAAP Earnings** | $149,818 | $(54,158) | | Add: D&A, Interest, Taxes, etc. | $196,842 | $112,509 | | Add: Impairment of Assets | — | $200,696 | | **Adjusted EBITDA** | $346,660 | $262,710 | [Segment Operating Statistics](index=21&type=section&id=Segment%20Operating%20Statistics) Q3 FY2025 operational statistics show strong performance, with Appalachian gas production up **16%** to **111.6 Bcf**, and increased throughput in Gathering, Pipeline & Storage, and Utility segments Q3 Gas Production (Appalachia) | Metric | Q3 2025 (MMcf) | Q3 2024 (MMcf) | Change (MMcf) | | :--- | :--- | :--- | :--- | | **Production** | 111,588 | 96,504 | +15,084 | Q3 Throughput and Volume (MMcf) | Segment | Q3 2025 (MMcf) | Q3 2024 (MMcf) | Change (MMcf) | | :--- | :--- | :--- | :--- | | **Pipeline & Storage Throughput** | 179,182 | 168,628 | +10,554 | | **Gathering Volume** | 133,271 | 118,445 | +14,826 | | **Utility Throughput** | 25,755 | 22,312 | +3,443 | - Weather was significantly colder in Q3 2025 compared to Q3 2024, with degree days up **46.0%** in Buffalo, NY and **56.6%** in Erie, PA, contributing to higher utility demand[71](index=71&type=chunk)

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

Core Insights - National Fuel Gas (NFG) reported quarterly earnings of $1.64 per share, exceeding the Zacks Consensus Estimate of $1.5 per share, and showing an increase from $0.99 per share a year ago, resulting in an earnings surprise of +9.33% [1] - The company posted revenues of $531.83 million for the quarter ended June 2025, which fell short of the Zacks Consensus Estimate by 13.82%, compared to $417.44 million in the same quarter last year [2] - National Fuel Gas shares have increased approximately 44.7% year-to-date, significantly outperforming the S&P 500's gain of 8.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.26 on revenues of $579.93 million, while for the current fiscal year, the estimate is $6.80 on revenues of $2.47 billion [7] - The estimate revisions trend for National Fuel Gas was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Oil and Gas - Integrated - United States industry, to which National Fuel Gas belongs, is currently ranked in the bottom 8% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Core Viewpoint - National Fuel Gas Company reported strong third-quarter results for fiscal 2025, highlighting record production and throughput in its upstream operations, alongside improved earnings in its regulated Utility and Pipeline & Storage segments, driven by recent ratemaking activities and organic investments [3][4]. Fiscal 2025 Third Quarter Summary - The company achieved GAAP earnings of $149.8 million, or $1.64 per share, compared to a net loss of $54.2 million, or $(0.59) per share, in the prior year [7][8]. - Adjusted earnings per share increased by 66% to $1.64 from $0.99 in the previous year [8]. - Natural gas production reached 112 Bcf, a 16% increase year-over-year, driven by strong well performance in the Eastern Development Area [8][20]. Management Commentary - The CEO emphasized the company's positive momentum and long-term outlook for natural gas, projecting significant earnings growth for fiscal 2026 [3][4]. - The company anticipates mid-single-digit production growth in the coming years, supported by strong well results and ongoing investments in regulated businesses [4]. Return of Capital Update - The Board approved a 4% increase in the dividend, bringing the annual rate to $2.14 per share, marking the 55th consecutive year of dividend increases [5]. - Since March 2024, the company repurchased approximately 2 million shares at an average price of $59.70, although repurchases were paused during the quarter to evaluate growth opportunities [6]. Fiscal 2025 Guidance Update - The adjusted earnings per share guidance for fiscal 2025 has been revised to a range of $6.80 to $6.95, reflecting third-quarter results and expectations for lower realized natural gas prices [10][39]. - Preliminary earnings guidance for fiscal 2026 is expected to increase by 20% from fiscal 2025, based on various NYMEX price assumptions [12][39]. Segment Performance Exploration and Production - The Exploration and Production segment reported adjusted operating results of $0.95 per share, a 157% increase year-over-year, attributed to lower operating costs and higher natural gas prices [8][20]. - The segment's GAAP earnings increased by $198.7 million compared to the prior year, which included a significant impairment charge [19]. Pipeline and Storage - The Pipeline and Storage segment's GAAP earnings decreased slightly due to higher operations and maintenance expenses, primarily from inflationary pressures [25]. Gathering Segment - The Gathering segment's GAAP earnings increased by $5 million, driven by a 13% rise in operating revenues due to increased throughput from new wells [27]. Utility Segment - The Utility segment's GAAP earnings rose by 95% to $5 million, primarily due to new rates from a recent rate case settlement [29][30]. - Customer margin increased by $8.4 million, supported by higher customer usage and rate adjustments [30]. Capital Expenditures and Future Outlook - The company expects capital expenditures for fiscal 2026 to range between $955 million and $1.065 billion, reflecting ongoing investments in modernization and expansion projects [40]. - The Exploration and Production segment anticipates production to increase to a range of 440 to 455 Bcf in fiscal 2026, a 6% increase at the midpoint [16][40].

Core Insights - National Fuel Gas (NFG) is positioned to potentially continue its earnings-beat streak in upcoming reports, with a history of surpassing earnings estimates, particularly in the last two quarters, averaging a surprise of 7.68% [1][5] Earnings Performance - For the most recent quarter, National Fuel Gas reported earnings of $2.18 per share against an expectation of $2.39, resulting in a surprise of 9.63%. In the previous quarter, the company reported $1.66 per share compared to a consensus estimate of $1.57, achieving a surprise of 5.73% [2] Earnings Estimates and Predictions - Recent estimates for National Fuel Gas have been trending upward, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat, especially when combined with its Zacks Rank [5][8] - The current Earnings ESP for National Fuel Gas stands at +1.33%, reflecting increased analyst optimism regarding its near-term earnings potential [8] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise, suggesting that out of 10 such stocks, approximately seven may beat consensus estimates [6][10]

Core Viewpoint - National Fuel Gas (NFG) is expected to report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with actual results being a significant factor in determining the stock's near-term price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show earnings of $1.50 per share, reflecting a +51.5% change year-over-year, and revenues of $617.15 million, which is a +47.8% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.15% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +1.33% for National Fuel Gas, suggesting a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, National Fuel Gas exceeded the expected earnings of $2.18 per share by delivering $2.39, resulting in a surprise of +9.63%. Over the last four quarters, the company has beaten consensus EPS estimates three times [13][14]. Investment Considerations - While a potential earnings beat is a positive indicator, other factors may also influence stock performance, making it essential for investors to consider the broader context [15][17].