National Fuel Gas pany(NFG)2024-08-01 15:24Revenue Performance - Utility revenues for the three months ended June 30, 2024, were $124,858,000, a decrease of 13.6% compared to $144,538,000 for the same period in 2023[10]. - Exploration and Production revenues increased to $220,905,000 for the three months ended June 30, 2024, compared to $216,581,000 in 2023, reflecting a growth of 1.5%[10]. - Pipeline and Storage revenues rose to $71,679,000 for the three months ended June 30, 2024, up 6.1% from $67,585,000 in the prior year[10]. - Total operating revenues for the nine months ended June 30, 2024, were $1,572,742,000, down 12.8% from $1,804,824,000 in the same period of 2023[10]. - Total consolidated revenues for the quarter ended June 30, 2024, were $417,442 thousand, with a significant contribution from natural gas residential sales at $89,034 thousand[43]. - For the nine months ended June 30, 2024, total consolidated revenues reached $1,572,742 thousand, driven primarily by natural gas residential sales of $445,971 thousand and natural gas transportation service revenues of $248,309 thousand[45]. Income and Earnings - Operating income for the three months ended June 30, 2024, was a loss of $51,440,000, compared to an operating income of $154,096,000 in 2023[10]. - Net income available for common stock for the three months ended June 30, 2024, was a loss of $54,158,000, compared to a net income of $92,620,000 in the same period of 2023[10]. - Basic earnings per share for the three months ended June 30, 2024, were $(0.59), a decrease from $1.01 in the same period of 2023[10]. - Net income for June 2024 was a loss of $54,158 thousand, compared to a profit of $92,620 thousand in June 2023, representing a significant decline[11]. - Comprehensive loss for June 2024 totaled $124,448 thousand, contrasting with a comprehensive income of $98,100 thousand in June 2023[11]. - The total consolidated earnings for the nine months ended June 30, 2024, were $245.1 million, down from $403.2 million for the same period in 2023, reflecting a decrease of $158.1 million[112]. Assets and Liabilities - Total assets increased to $8,481,037 thousand as of June 30, 2024, up from $8,280,260 thousand in September 30, 2023, indicating growth in the company's asset base[13]. - Long-term debt increased to $2,637,115 thousand as of June 30, 2024, from $2,384,485 thousand in September 2023, indicating higher leverage[13]. - Cash and temporary cash investments grew to $81,414 thousand in June 2024, compared to $55,447 thousand in September 2023, showing improved liquidity[12]. - Accounts payable decreased to $101,200 thousand in June 2024 from $152,193 thousand in September 2023, suggesting better management of payables[13]. - The fair value of long-term debt as of June 30, 2024 is $2,598,784,000, compared to $2,210,478,000 as of September 30, 2023[60]. - The company’s debt to capitalization ratio was calculated at 0.45 as of June 30, 2024, allowing for an additional $3.46 billion in debt before exceeding the 0.65 limit[182]. Cash Flow and Expenditures - Net cash provided by operating activities was $868.0 million for the nine months ended June 30, 2024, down from $1,055.1 million in the prior year, representing a decline of 17.7%[16]. - The net cash used in investing activities was $685.6 million for the nine months ended June 30, 2024, compared to $829.1 million in the same period of 2023, a decrease of 17.4%[16]. - The company’s total expenditures for long-lived assets decreased to $655.5 million for the nine months ended June 30, 2024, from $804.1 million in the same period of 2023, representing a decrease of $148.6 million[162]. - Capital expenditures for the nine months ended June 30, 2024, were $684.2 million, compared to $727.7 million in the same period of 2023, reflecting a decrease of 5.9%[16]. - The company expects to finance capital expenditures using cash from operations, short-term debt, and long-term borrowings as needed[175]. Impairments and Charges - The company recognized a non-cash impairment charge of $200.7 million for exploration and production properties due to the book value exceeding the ceiling at June 30, 2024[26]. - The Company recorded an impairment of $200.7 million ($145.0 million after-tax) under the ceiling test during the quarter ended June 30, 2024, due to lower natural gas prices[104]. - The Exploration and Production segment's loss for the quarter was $112.0 million, a decrease of $155.3 million compared to earnings of $43.3 million for the same quarter in 2023[121]. Dividends and Shareholder Returns - Dividends declared per common share increased to $0.515 for the three months ended June 30, 2024, compared to $0.495 in the same period of 2023[10]. - The company paid dividends of $136.6 million on common stock during the nine months ended June 30, 2024, compared to $130.7 million in the same period of 2023, reflecting an increase of 4.5%[16]. - The Company executed share repurchases totaling 526,652 shares at an average price of $54.28 per share, costing $28.8 million during the nine months ended June 30, 2024[190]. Regulatory and Rate Changes - Distribution Corporation filed with the NYPSC seeking an increase of approximately $88 million in total annual operating revenues for the projected rate year ending September 30, 2025, with a proposed effective date of October 1, 2024[95]. - A settlement reached with the PaPUC on April 13, 2023, provided for an increase in Distribution Corporation's annual base rate operating revenues of $23 million, effective August 1, 2023[97]. - The Settlement Rates from the NGA Section 4 rate case are estimated to increase Supply Corporation's revenues by approximately $56 million annually, effective February 1, 2024[99]. Segment Performance - The Utility segment's earnings for the quarter ended June 30, 2024, were $2.6 million, an increase of $2.5 million compared to earnings of less than $0.1 million for the same quarter in 2023[145]. - For the nine months ended June 30, 2024, the Utility segment's earnings increased to $73.8 million, up by $18.2 million from $55.6 million for the same period in 2023[147]. - The Pipeline and Storage segment's earnings for the quarter were $30.7 million, an increase of $6.9 million compared to $23.8 million for the same quarter in 2023[129]. - Gathering operating revenues increased by $1.2 million for the quarter ended June 30, 2024, despite a decrease in gathered volume of 0.3 Bcf[134]. Financial Instruments and Derivatives - The company reported unrealized losses on derivative financial instruments of $21,936 thousand for the period, compared to unrealized gains of $65,244 thousand in the previous year[11]. - The fair value of derivative financial instruments reported in Level 2 includes natural gas price swap agreements and no cost collars, which are used to manage commodity price risk[55]. - For the nine months ended June 30, 2024, the total derivative gain recognized was $238,395 thousand, compared to $673,381 thousand in the same period of 2023[69].