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Published: 2023-11-02 08:16:14 ET
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EX-99 2 nfg-9302023xexhibit99x8k.htm EX-99 Document

Exhibit 99

exhibit998kimagea15a.jpg
6363 Main Street/Williamsville, NY 14221
Release Date:Immediate November 1, 2023Brandon J. Haspett
Investor Relations
716-857-7697		Timothy J. Silverstein
Treasurer
716-857-6987

NATIONAL FUEL REPORTS FOURTH QUARTER
AND FULL YEAR FISCAL 2023 EARNINGS

WILLIAMSVILLE, N.Y.: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the three months and fiscal year ended September 30, 2023.

FISCAL 2023 FOURTH QUARTER SUMMARY
•GAAP net income of $73.7 million, or $0.80 per share, compared to GAAP net income of $158.1 million, or $1.71 per share, in the prior year.
•Adjusted operating results of $72.2 million, or $0.78 per share, compared to $109.3 million, or $1.19 per share, in the prior year (see non-GAAP reconciliation on page 2 for fourth quarter and fiscal 2023).
•Both E&P segment net production and Gathering segment revenue increased by 7% versus the prior year, driven by continued strong operational execution in Appalachia.
•Supply Corporation entered into a precedent agreement with Seneca for its Tioga Pathway Project, which is an estimated $90 million modernization and expansion project that will add 190,000 Dth per day of firm transportation takeaway capacity from northwest Tioga County, Pennsylvania.

FISCAL 2023 HIGHLIGHTS
•Generated consolidated net cash provided by operating activities of $1.24 billion for fiscal 2023, with free cash flow of $275 million (see non-GAAP reconciliation on page 27 for fiscal 2023).
•Increased the shareholder dividend for the 53rd consecutive year to an annual rate of $1.98 per share, an increase of 4.2%, continuing the Company’s long history of consistently returning capital to shareholders.
•Distribution Corporation settled a rate proceeding in Pennsylvania, which will increase annual base rate delivery revenues by $23 million.
•Seneca Resources bolstered its deep inventory of highly economic development locations in its Eastern Development Area with the acquisition of approximately 39,000 net acres in Tioga and Lycoming counties.
•NFG Midstream achieved certification of 100% of its assets under Equitable Origin’s EO100TM Standard for Responsible Energy Development, becoming the first gathering or midstream company to receive this ESG-focused certification.

MANAGEMENT COMMENTS

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “Despite the headwinds of lower natural gas prices in fiscal 2023, National Fuel delivered strong results, both financially and operationally. As we move into fiscal 2024, the combination of a strong outlook for long-term growth in our regulated businesses, increasing capital efficiency in our non-regulated operations, and expectations of improving natural gas price realizations position us well to deliver long-term value to our shareholders.”



Page 2.

RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS
Three Months EndedFiscal Year Ended
September 30,September 30,
(in thousands except per share amounts)2023202220232022
Reported GAAP Earnings$73,677 $158,143 $476,866 $566,021 
Items impacting comparability:
Unrealized (gain) loss on derivative asset (E&P)(2,803)4,395 899 4,395 
Tax impact of unrealized (gain) loss on derivative asset775 (1,203)(240)(1,203)
Unrealized (gain) loss on other investments (Corporate / All Other)
719 1,532 (913)11,625 
Tax impact of unrealized (gain) loss on other investments
(151)(322)192 (2,441)
Reversal of deferred tax valuation allowance— (24,850)— (24,850)
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction— (28,406)— (28,406)
Items impacting comparability from West Coast asset sale (E&P) (1)
— — — 41,589 
Tax impact of items impacting comparability from West Coast asset sale (1)
— — — (10,533)
Reduction of other post-retirement regulatory liability (Utility)— — — (18,533)
Tax impact of reduction of other post-retirement regulatory liability— — — 3,892 
Adjusted Operating Results$72,217 $109,289 $476,804 $541,556 
Reported GAAP Earnings Per Share$0.80 $1.71 $5.17 $6.15 
Items impacting comparability:
Unrealized (gain) loss on derivative asset, net of tax (E&P)(0.02)0.03 0.01 0.03 
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)
0.01 0.01 (0.01)0.10 
Reversal of deferred tax valuation allowance— (0.27)— (0.27)
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction— (0.31)— (0.31)
Items impacting comparability from West Coast asset sale, net of tax (E&P) (1)
— — — 0.34 
Reduction of other post-retirement regulatory liability, net of tax (Utility)— — — (0.16)
Rounding(0.01)0.02 — — 
Adjusted Operating Results Per Share$0.78 $1.19 $5.17 $5.88 

(1) Refer to non-GAAP reconciliation on page 24 for a separate breakout of items impacting comparability from the West Coast asset sale.

FISCAL 2024 GUIDANCE UPDATE

National Fuel is revising its fiscal 2024 earnings guidance to reflect updated forecast assumptions and projections since the Company’s preliminary guidance range was announced in August 2023. The Company is now projecting that earnings will be within the range of $5.40 to $5.90 per share, an increase of 9% from the Company’s 2023 adjusted operating results at the midpoint of the updated 2024 guidance range.

Consistent with preliminary guidance, the Company is assuming that NYMEX natural gas prices will average $3.25 per MMBtu for the fiscal year. For guidance purposes, the Company’s updated natural gas price projections approximate the current NYMEX forward curve and consider the impact of local sales point differentials and new physical firm sales, transportation, and financial hedge contracts.

Seneca currently has firm sales contracts in place for approximately 89% of its projected fiscal 2024 Appalachian production, limiting its exposure to in-basin markets. Approximately 69% of Seneca’s expected Appalachian production is either matched by a financial hedge, including a combination of swaps and no-cost collars, or was entered into at a fixed price. Seneca’s depreciation, depletion and amortization guidance range was also revised to reflect current expectations for the fiscal year.

The Company’s consolidated and individual segment capital expenditures guidance remain unchanged from the preliminary guidance. Other guidance assumptions remain largely unchanged from the previous guidance. The details are outlined in the table on page 7.

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Page 3.

DISCUSSION OF FOURTH QUARTER RESULTS BY SEGMENT

The following earnings discussion of each operating segment for the quarter ended September 30, 2023 is summarized in a tabular form on pages 8 and 9 of this report (earnings drivers for the fiscal years ended September 30, 2023 are summarized on pages 10 and 11). It may be helpful to refer to those tables while reviewing this discussion.

Note that management defines Adjusted Operating Results 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.

Upstream Business

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC (“Seneca”). Seneca explores for, develops and produces primarily natural gas reserves in Pennsylvania.
Three Months Ended
September 30
(in thousands)20232022Variance
GAAP Earnings$36,772 $116,077 $(79,305)
Unrealized (gain) loss on derivative asset, net of tax(2,028)3,192 (5,220)
Reversal of deferred tax valuation allowance— (28,589)28,589 
Remeasurement of deferred income tax from Pennsylvania state income tax rate reduction— (16,152)16,152 
Adjusted Operating Results$34,744 $74,528 $(39,784)
Adjusted EBITDA$132,641 $166,238 $(33,597)

Seneca’s fourth quarter GAAP earnings decreased $79.3 million versus the prior year. Excluding several items impacting comparability as described below, Seneca's earnings decreased $39.8 million, with higher natural gas production more than offset by lower realized natural gas prices, higher operating expenses and higher income tax expense.

Last year’s fourth quarter earnings included two one-time items related to state deferred income taxes that impacted comparability as shown in the table above. These items consisted of a reversal of a $28.6 million valuation allowance on deferred tax assets related to certain state net operating loss and credit carryforwards, along with a $16.2 million benefit from the remeasurement of state deferred income taxes related to a series of reductions in the Pennsylvania state corporate income tax rate that was signed into law in July 2022. Earnings were also impacted by an unrealized gain of $2.8 million ($2.0 million after-tax) recognized during the current-year fourth quarter related to an increase in the fair value of the contingent consideration Seneca received in connection with the June 2022 divestiture of its California assets. In the prior-year's fourth quarter, Seneca recorded an unrealized loss of $4.4 million ($3.2 million after-tax) on that contingent consideration.

During this year's fourth quarter, Seneca produced 93.8 Bcfe, an increase of 5.9 Bcfe, or 7%, from the prior year, despite the impact of approximately 2 Bcfe of price-related curtailments due to low in-basin pricing.

Seneca’s average realized natural gas price, after the impact of hedging and transportation costs, was $2.33 per Mcf, a decrease of $0.51 per Mcf from the prior year. Lower natural gas prices, before the impact of hedging, were partially offset by an increase in the weighted average hedge price compared to the prior-year fourth quarter.

On a per unit basis, lease operating and transportation expense (“LOE”) was $0.69 per Mcfe, a decrease of $0.02 per Mcfe from the prior year. On an absolute basis, LOE increased $1.7 million primarily due to higher water management costs, partially offset by lower rental and workover expenses. An increase in transportation and gathering costs as a result of increased production also contributed to the increase in absolute LOE. LOE includes $51.2 million for gathering and compression services from NFG Midstream to connect Seneca’s production to sales points along interstate pipelines.

General and administrative (“G&A”) expense remained flat at $0.18 per Mcfe compared to the prior year. On an absolute basis, Seneca’s G&A expense increased $1.5 million primarily due to an increase in labor-related costs.

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Depreciation, depletion and amortization (“DD&A”) expense was $0.71 per Mcfe, an increase of $0.11 per Mcfe from the prior year. Absolute DD&A expense increased $13.4 million due to higher natural gas production and a higher per unit DD&A rate. The higher rate was driven by an increase in Seneca's full cost pool due to a combination of higher capitalized costs and an increase in estimated future development costs related to proved undeveloped wells.

Other taxes decreased $1.7 million largely attributable to lower Impact Fees in Pennsylvania due to the decline in NYMEX natural gas prices.

Excluding the impact of last year’s fourth quarter one-time items impacting comparability shown in the table above, the increase in Seneca’s effective tax rate was primarily driven by higher state income tax expense.

Proved Reserves Year-End Update

Seneca’s total proved reserves at September 30, 2023 were 4,536 Bcfe, an increase of 364 Bcfe, or 9%, from September 30, 2022. Seneca’s proved developed reserves at the end of fiscal 2023 were 3,551 Bcfe, representing 78% of total proved reserves, compared to 79% a year ago. In fiscal 2023, Seneca added 670 Bcfe of proved reserve extensions and discoveries, 34 Bcfe of proved developed reserves as a result of two separate upstream asset purchases during fiscal 2023, and 32 Bcfe of net positive revisions due primarily to improvements in well performance and changes in development plans. Seneca replaced 198% of its fiscal 2023 production.

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
September 30
(in thousands)20232022Variance
GAAP Earnings$23,354 $25,320 $(1,966)
Adjusted EBITDA$56,236 $59,819 $(3,583)

The Pipeline and Storage segment’s fourth quarter GAAP earnings decreased $2.0 million versus the prior year primarily due to lower operating revenues, partially offset by an increase in other income. The decrease in operating revenues of $3.7 million was primarily attributable to contract expirations that occurred earlier in the fiscal year, partially offset by an increase in new short-term contracts. The increase in other income of $1.1 million was primarily attributable to a higher weighted average interest rate on intercompany short-term notes receivable.

Gathering Segment

The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which delivers Seneca and other non-affiliated Appalachian production to the interstate pipeline system.
Three Months Ended
September 30
(in thousands)20232022Variance
GAAP Earnings$26,517 $31,224 $(4,707)
Reversal of deferred tax valuation allowance— 3,739 (3,739)
Remeasurement of deferred income tax from Pennsylvania state income tax rate reduction— (11,856)11,856 
Adjusted Operating Results$26,517 $23,107 $3,410 
Adjusted EBITDA$46,874 $43,335 $3,539 

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The Gathering segment’s fourth quarter GAAP earnings decreased $4.7 million versus the prior year. Similar to our Exploration and Production segment, last year’s fourth quarter earnings included two one-time items impacting comparability shown in the table above related to state deferred income taxes that did not recur this year. Excluding these items, the Gathering segment’s earnings increased $3.4 million primarily due to higher operating revenues. Operating revenues increased $3.9 million, or 7%, which was the result of a 12.6 Bcf increase in gathered volumes due to an increase in natural gas throughput from both non-affiliated parties and Seneca.

Downstream Business

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
September 30
(in thousands)20232022Variance
GAAP Earnings$(7,179)$(10,852)$3,673 
Adjusted EBITDA$6,693 $6,270 $423 

The Utility segment’s fourth quarter GAAP net loss was $3.7 million lower than the net loss in the prior year’s fourth quarter due to higher customer margins (operating revenues less purchased gas sold), a decrease in non-service pension and OPEB costs, higher other income and lower income tax expense, partially offset by increases in operation and maintenance (“O&M”) expense and interest expense.

The increase in customer margin of $1.6 million was due primarily to the implementation of the recent Pennsylvania rate case settlement, which increased base rates by $23 million annually, effective August 1, 2023. Also contributing to the increase were adjustments related to certain regulatory rate and cost recovery mechanisms subject to annual reconciliation and higher revenues from the Company’s system modernization tracking mechanisms in its New York service territory. These increases were partially offset by a $1.1 million reduction in base rates in New York, which, consistent with prior quarters, was the result of a rate proceeding that temporarily reduced the Utility’s recovery of pension and other post-employment benefit (“OPEB”) expenses to zero effective October 1, 2022. In addition to lowering rates, the proceeding mandated a corresponding decrease in pension and OPEB expenses, most of which had been previously recorded in “below the line” non-service pension and OPEB costs.

The increase in other income of $1.0 million was primarily attributable to interest earned on deferred gas costs. O&M expense increased by $1.7 million, primarily driven by higher labor-related costs. Interest expense increased $1.0 million due to the Company’s long-term debt issuance in May 2023.

Corporate and All Other

The Company’s operations that are included in Corporate and All Other generated a combined net loss of $5.8 million in the current year fourth quarter, which was $2.2 million higher than the combined net loss of $3.6 million in the prior-year fourth quarter. The increase in net loss was primarily driven by higher O&M expense as a result of an increase in professional services, which was partially offset by a lower amount of unrealized losses on investment securities recognized in the current quarter as compared to the prior-year fourth quarter.


EARNINGS TELECONFERENCE

The Company will host a conference call on Thursday, November 2, 2023, at 10 a.m. Eastern Time to discuss this announcement. To pre-register for the call (recommended), please visit https://www.netroadshow.com/events/login?show=2be14adf&confId=56623. After registering, you will receive your access details via email. To join by telephone on the day of the call, dial U.S. toll free 1-833–470–1428 and provide Participant Access Code 568657. The teleconference will also be simultaneously webcast online and can be accessed on the NFG Investor Relations website at investor.nationalfuelgas.com. A telephone replay of the teleconference call will be available through the end of the day on Thursday, November 9, 2023. To access the replay, dial U.S. toll free 1-866-813-9403 and provide Replay Access Code 693074.
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National Fuel is an integrated energy company reporting financial results for four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. Additional information about National Fuel is available at www.nationalfuelgas.com.

Analyst Contact:Brandon J. Haspett716-857-7697
Media Contact:Karen L. Merkel716-857-7654
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: 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; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; changes in economic conditions, including 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; changes in the price of natural gas; 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 and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; impairments under the SEC’s full cost ceiling test for natural gas reserves; increased costs or 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; the Company’s ability to complete planned strategic transactions; 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; 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, 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; 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; negotiations with the collective bargaining units representing the Company's workforce, including potential work stoppages during negotiations; 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; 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.
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NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

GUIDANCE SUMMARY

As discussed on page 2, the Company is revising its earnings guidance for fiscal 2024. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below.

While the Company expects to record certain adjustments to unrealized gain or loss on a derivative asset and unrealized gain or loss on investments during the fiscal year ending September 30, 2024, 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.
Previous FY 2024 GuidanceUpdated FY 2024 Guidance
Adjusted Consolidated Earnings per Share, excluding items impacting comparability$5.50 to $6.00$5.40 to $5.90
Consolidated Effective Tax Rate~ 25.5 - 26%~ 25 - 25.5%
Capital Expenditures (Millions)
    Exploration and Production$525 - $575$525 - $575
    Pipeline and Storage$120 - $140$120 - $140
    Gathering$90 - $110$90 - $110
    Utility$130 - $150$130 - $150
    Consolidated Capital Expenditures$865 - $975$865 - $975
Exploration & Production Segment Guidance
    Commodity Price Assumptions
    NYMEX natural gas price
$3.25 /MMBtu
$3.25 /MMBtu
    Appalachian basin spot price
$2.45 /MMBtu
$2.40 - $2.45 /MMBtu
    Production (Bcfe)390 to 410390 to 410
    E&P Operating Costs ($/Mcfe)
    LOE$0.69 - $0.71$0.69 - $0.71
    G&A $0.17 - $0.19$0.17 - $0.19
    DD&A$0.66 - $0.70$0.69 - $0.74
Other Business Segment Guidance (Millions)
    Gathering Segment Revenues$240 - $260$240 - $260
    Pipeline and Storage Segment Revenues $380 - $420$380 - $420












Page 8.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED SEPTEMBER 30, 2023
(Unaudited)
UpstreamMidstreamDownstream
Exploration &Pipeline &Corporate /
(Thousands of Dollars)ProductionStorageGatheringUtilityAll OtherConsolidated*
Fourth quarter 2022 GAAP earnings$116,077 $25,320 $31,224 $(10,852)$(3,626)$158,143 
Items impacting comparability:
Unrealized gain (loss) on derivative asset4,395 4,395 
Tax impact of unrealized gain (loss) on derivative asset(1,203)(1,203)
Reversal of deferred tax valuation allowance(28,589)3,739(24,850)
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction(16,152)(11,856)(398)(28,406)
Unrealized (gain) loss on other investments1,532 1,532 
Tax impact of unrealized (gain) loss on other investments
(322)(322)
Fourth quarter 2022 adjusted operating results74,528 25,320 23,107 (10,852)(2,814)109,289 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production13,121 13,121 
Higher (lower) realized natural gas prices, after hedging(37,374)(37,374)
Higher (lower) other operating revenues(734)(734)
Midstream Revenues
Higher (lower) operating revenues(2,932)3,108 176 
Downstream Margins***
Impact of usage and weather(386)(386)
Impact of new rates in Pennsylvania754 754 
Impact of new rates in New York****(893)(893)
System modernization and improvement tracker revenues366 366 
Regulatory revenue adjustments1,951 1,951 
Operating Expenses
Lower (higher) lease operating and transportation expenses(1,352)(1,352)
Lower (higher) operating expenses(1,500)(314)(1,586)(2,800)(6,200)
Lower (higher) property, franchise and other taxes1,343 1,343 
Lower (higher) depreciation / depletion(10,614)(529)(359)(679)(12,181)
Other Income (Expense)
(Higher) lower other deductions815 1,192 (276)1,731 
(Higher) lower interest expense(627)531 (998)1,283 189 
Income Taxes
Lower (higher) income tax expense / effective tax rate(1,900)474 402 3,648 (367)2,257 
All other / rounding(147)206 42 304 (245)160 
Fourth quarter 2023 adjusted operating results34,744 23,354 26,517 (7,179)(5,219)72,217 
Items impacting comparability:
Unrealized gain (loss) on derivative asset2,803 2,803 
Tax impact of unrealized gain (loss) on derivative asset(775)(775)
Unrealized gain (loss) on other investments(719)(719)
Tax impact of unrealized gain (loss) on other investments151 151 
Fourth quarter 2023 GAAP earnings$36,772 $23,354 $26,517 $(7,179)$(5,787)$73,677 
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.
**** Amount is offset by corresponding decrease in other deductions and has no earnings impact for the year ended September 30, 2023.



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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED SEPTEMBER 30, 2023
(Unaudited)
UpstreamMidstreamDownstream
Exploration &Pipeline &Corporate /
ProductionStorageGatheringUtilityAll OtherConsolidated*
Fourth quarter 2022 GAAP earnings per share$1.26 $0.27 $0.34 $(0.12)$(0.04)$1.71 
Items impacting comparability:
Unrealized gain (loss) on derivative asset, net of tax0.03 0.03 
Reversal of deferred tax valuation allowance(0.31)0.04 (0.27)
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction(0.18)(0.13)— (0.31)
Unrealized (gain) loss on other investments, net of tax0.01 0.01 
Rounding0.01 0.01 0.02 
Fourth quarter 2022 adjusted operating results per share0.81 0.27 0.25 (0.12)(0.02)1.19 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production0.14 0.14 
Higher (lower) realized natural gas prices, after hedging(0.40)(0.40)
Higher (lower) other operating revenues(0.01)(0.01)
Midstream Revenues
Higher (lower) operating revenues(0.03)0.03 — 
Downstream Margins***
Impact of usage and weather— — 
Impact of new rates in Pennsylvania0.01 0.01 
Impact of new rates in New York****(0.01)(0.01)
System modernization and improvement tracker revenues— — 
Regulatory revenue adjustments0.02 0.02 
Operating Expenses
Lower (higher) lease operating and transportation expenses(0.01)(0.01)
Lower (higher) operating expenses(0.02)— (0.02)(0.03)(0.07)
Lower (higher) property, franchise and other taxes0.01 0.01 
Lower (higher) depreciation / depletion(0.11)(0.01)— (0.01)(0.13)
Other Income (Expense)
(Higher) lower other deductions0.01 0.01 — 0.02 
(Higher) lower interest expense(0.01)0.01 (0.01)0.01 — 
Income Taxes
Lower (higher) income tax expense / effective tax rate(0.02)0.01 — 0.04 — 0.03 
All other / rounding— — — 0.01 (0.02)(0.01)
Fourth quarter 2023 adjusted operating results per share0.38 0.25 0.29 (0.08)(0.06)0.78 
Items impacting comparability:
Unrealized gain (loss) on derivative asset, net of tax0.02 0.02 
Unrealized gain (loss) on other investments, net of tax(0.01)(0.01)
Rounding0.01 0.01 
Fourth quarter 2023 GAAP earnings per share$0.40 $0.25 $0.29 $(0.08)$(0.06)$0.80 
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.
**** Amount is offset by corresponding decrease in other deductions and has no earnings impact for the year ended September 30, 2023.








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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
TWELVE MONTHS ENDED SEPTEMBER 30, 2023
(Unaudited)
UpstreamMidstreamDownstream
Exploration &Pipeline &Corporate /
(Thousands of Dollars)ProductionStorageGatheringUtilityAll OtherConsolidated*
Fiscal 2022 GAAP earnings$306,064 $102,557 $101,111 $68,948 $(12,659)$566,021 
Items impacting comparability:
Reduction of other post-retirement regulatory liability(18,533)(18,533)
Tax impact of reduction of other post-retirement regulatory liability3,892 3,892 
Unrealized gain (loss) on derivative asset4,395 4,395 
Tax impact of unrealized gain (loss) on derivative asset(1,203)(1,203)
Gain on sale of West Coast assets(12,736)(12,736)
Tax impact of gain on sale of West Coast assets3,225 3,225 
Loss from discontinuance of crude oil cash flow hedges44,632 44,632 
Tax impact of loss from discontinuance of crude oil cash flow hedges(11,303)(11,303)
Transaction and severance costs related to West Coast asset sale9,693 9,693 
Tax impact of transaction and severance costs related to West Coast asset sale(2,455)(2,455)
Reversal of deferred tax valuation allowance(28,589)3,739 (24,850)
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction(16,152)(11,856)(398)(28,406)
Unrealized (gain) loss on other investments11,625 11,625 
Tax impact of unrealized (gain) loss on other investments
(2,441)(2,441)
Fiscal 2022 adjusted operating results295,571 102,557 92,994 54,307 (3,873)541,556 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production62,913 62,913 
Higher (lower) crude oil production(88,063)(88,063)
Higher (lower) realized natural gas prices, after hedging(48,413)(48,413)
Higher (lower) other operating revenues(2,898)(2,898)
Midstream Revenues
Higher (lower) operating revenues1,696 12,224 13,920 
Downstream Margins***
Impact of usage and weather(1,104)(1,104)
Impact of new rates in Pennsylvania754 754 
Impact of new rates in New York****(12,019)(12,019)
System modernization and improvement tracker revenues3,829 3,829 
Regulatory revenue adjustments1,504 1,504 
Higher (lower) other operating revenues1,734 1,734 
Operating Expenses
Lower (higher) lease operating and transportation expenses23,984 23,984 
Lower (higher) operating expenses11,145 (5,164)(4,851)(8,798)(3,389)(11,057)
Lower (higher) property, franchise and other taxes6,041 597 6,638 
Lower (higher) depreciation / depletion(26,065)(2,470)(1,364)(1,335)(31,234)
Other Income (Expense)
(Higher) lower other deductions2,735 3,624 561 14,030 (3,859)17,091 
(Higher) lower interest expense(724)(796)1,184 (8,575)7,120 (1,791)
Income Taxes
Lower (higher) income tax expense / effective tax rate(3,406)411 (1,006)3,503 (380)(878)
All other / rounding114 643 (18)(32)(369)338 
Fiscal 2023 adjusted operating results232,934 100,501 99,724 48,395 (4,750)476,804 
Items impacting comparability:
Unrealized gain (loss) on derivative asset(899)(899)
Tax impact of unrealized gain (loss) on derivative asset240 240 
Unrealized gain (loss) on other investments913 913 
Tax impact of unrealized gain (loss) on other investments(192)(192)
Fiscal 2023 GAAP earnings$232,275 $100,501 $99,724 $48,395 $(4,029)$476,866 
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.
**** Amount is offset by corresponding decrease in other deductions and has no earnings impact for the year ended September 30, 2023.


Page 11.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
TWELVE MONTHS ENDED SEPTEMBER 30, 2023
(Unaudited)
UpstreamMidstreamDownstream
Exploration &Pipeline &Corporate /
ProductionStorageGatheringUtilityAll OtherConsolidated*
Fiscal 2022 GAAP earnings per share$3.32 $1.11 $1.10 $0.75 $(0.13)$6.15 
Items impacting comparability:
Reduction of other post-retirement regulatory liability, net of tax(0.16)(0.16)
Unrealized gain (loss) on derivative asset, net of tax0.03 0.03 
Gain on sale of West Coast assets, net of tax(0.10)(0.10)
Loss from discontinuance of crude oil cash flow hedges, net of tax0.36 0.36 
Transaction and severance costs related to West Coast asset sale, net of tax0.08 0.08 
Reversal of deferred tax valuation allowance(0.31)0.04 (0.27)
Remeasurement of deferred income taxes from Pennsylvania state income tax rate deduction(0.18)(0.13)— (0.31)
Unrealized (gain) loss on other investments, net of tax0.10 0.10 
Rounding0.01 (0.01)— 
Fiscal 2022 adjusted operating results per share3.21 1.11 1.01 0.59 (0.04)5.88 
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production0.68 0.68 
Higher (lower) crude oil production(0.95)(0.95)
Higher (lower) realized natural gas prices, after hedging
(0.52)(0.52)
Higher (lower) other operating revenues(0.03)(0.03)
Midstream Revenues
Higher (lower) operating revenues0.02 0.13 0.15 
Downstream Margins***
Impact of usage and weather
(0.01)(0.01)
Impact of new rates in Pennsylvania0.01 0.01 
Impact of new rates in New York****(0.13)(0.13)
System modernization and improvement tracker revenues0.04 0.04 
Regulatory revenue adjustments0.02 0.02 
Higher (lower) other operating revenues0.02 0.02 
Operating Expenses
Lower (higher) lease operating and transportation expenses
0.26 0.26 
Lower (higher) operating expenses0.12 (0.06)(0.05)(0.10)(0.04)(0.13)
Lower (higher) property, franchise and other taxes0.07 0.010.08 
Lower (higher) depreciation / depletion(0.28)(0.03)(0.01)(0.01)(0.33)
Other Income (Expense)
(Higher) lower other deductions0.03 0.04 0.01 0.15 (0.04)0.19 
(Higher) lower interest expense(0.01)(0.01)0.01 (0.09)0.08 (0.02)
Income Taxes
Lower (higher) income tax expense / effective tax rate
(0.04)— (0.01)0.04 — (0.01)
All other / rounding(0.02)0.02 (0.01)(0.02)— (0.03)
Fiscal 2023 adjusted operating results per share2.52 1.09 1.08 0.52 (0.04)5.17 
Items impacting comparability:
Unrealized gain (loss) on derivative asset, net of tax(0.01)(0.01)
Unrealized gain (loss) on other investments, net of tax
0.01 0.01 
Rounding0.01 (0.01)— 
Fiscal 2023 GAAP earnings per share$2.52 $1.09 $1.08 $0.52 $(0.04)$5.17 
* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.
**** Amount is offset by corresponding decrease in other deductions and has no earnings impact for the year ended September 30, 2023.


Page 12.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
(Thousands of Dollars, except per share amounts)
Three Months Ended Twelve Months Ended
September 30,September 30,
(Unaudited)(Unaudited)
SUMMARY OF OPERATIONS2023202220232022
Operating Revenues:
Utility Revenues$78,865 $112,252 $941,779 $897,916 
Exploration and Production and Other Revenues220,348 252,035 958,455 1,010,629 
Pipeline and Storage and Gathering Revenues69,735 70,859 273,537 277,501 
368,948 435,146 2,173,771 2,186,046 
Operating Expenses:
Purchased Gas(12,865)22,925 437,595 392,093 
Operation and Maintenance:
      Utility48,354 46,535 205,239 193,058 
      Exploration and Production and Other37,955 31,554 124,270 191,572 
      Pipeline and Storage and Gathering39,901 39,138 149,247 136,571 
Property, Franchise and Other Taxes20,701 23,089 92,700 101,182 
Depreciation, Depletion and Amortization109,599 94,109 409,573 369,790 
243,645 257,350 1,418,624 1,384,266 
Gain on Sale of Assets— — — 12,736 
Operating Income125,303 177,796 755,147 814,516 
Other Income (Expense):
Other Income (Deductions)5,384 (4,800)18,138 (1,509)
Interest Expense on Long-Term Debt(28,449)(30,207)(111,948)(120,507)
Other Interest Expense(4,453)(3,289)(19,938)(9,850)
Income Before Income Taxes97,785 139,500 641,399 682,650 
Income Tax Expense (Benefit)24,108 (18,643)164,533 116,629 
Net Income Available for Common Stock$73,677 $158,143 $476,866 $566,021 
Earnings Per Common Share
Basic$0.80 $1.73 $5.20 $6.19 
Diluted$0.80 $1.71 $5.17 $6.15 
Weighted Average Common Shares:
Used in Basic Calculation91,818,93391,476,53591,748,89091,410,625
Used in Diluted Calculation92,378,67592,218,58192,285,91892,107,066









Page 13.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30,September 30,
(Thousands of Dollars)20232022
ASSETS
Property, Plant and Equipment$13,635,303 $12,551,909 
Less - Accumulated Depreciation, Depletion and Amortization6,335,441 5,985,432 
Net Property, Plant and Equipment
7,299,862 6,566,477 
Current Assets:
Cash and Temporary Cash Investments55,447 46,048 
Hedging Collateral Deposits— 91,670 
Receivables - Net160,601 361,626 
Unbilled Revenue16,622 30,075 
Gas Stored Underground32,509 32,364 
Materials and Supplies - at average cost48,989 40,637 
Unrecovered Purchased Gas Costs— 99,342 
Other Current Assets100,260 59,369 
Total Current Assets
414,428 761,131 
Other Assets:
Recoverable Future Taxes69,045 106,247 
Unamortized Debt Expense7,240 8,884 
Other Regulatory Assets72,138 67,101 
Deferred Charges82,416 77,472 
Other Investments73,976 95,025 
Goodwill5,476 5,476 
Prepaid Pension and Post-Retirement Benefit Costs200,301 196,597 
Fair Value of Derivative Financial Instruments50,487 9,175 
Other4,891 2,677 
Total Other Assets
565,970 568,654 
Total Assets$8,280,260 $7,896,262 
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and
Outstanding - 91,819,405 Shares and 91,478,064 Shares, Respectively
$91,819 $91,478 
Paid in Capital1,040,761 1,027,066 
Earnings Reinvested in the Business1,885,856 1,587,085 
Accumulated Other Comprehensive Loss(55,060)(625,733)
Total Comprehensive Shareholders' Equity2,963,376 2,079,896 
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs2,384,485 2,083,409 
Total Capitalization
5,347,861 4,163,305 
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper287,500 60,000 
Current Portion of Long-Term Debt— 549,000 
Accounts Payable152,193 178,945 
Amounts Payable to Customers59,019 419 
Dividends Payable45,451 43,452 
Interest Payable on Long-Term Debt20,399 17,376 
Customer Advances21,003 26,108 
Customer Security Deposits28,764 24,283 
Other Accruals and Current Liabilities160,974 257,327 
Fair Value of Derivative Financial Instruments31,009 785,659 
Total Current and Accrued Liabilities
806,312 1,942,569 
Other Liabilities:
Deferred Income Taxes1,124,170 698,229 
Taxes Refundable to Customers268,562 362,098 
Cost of Removal Regulatory Liability277,694 259,947 
Other Regulatory Liabilities165,441 188,803 
Other Post-Retirement Liabilities2,915 3,065 
Asset Retirement Obligations165,492 161,545 
Other Liabilities121,813 116,701 
Total Other Liabilities2,126,087 1,790,388 
Commitments and Contingencies— — 
Total Capitalization and Liabilities$8,280,260 $7,896,262 



Page 14.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Twelve Months Ended
September 30,
(Thousands of Dollars)20232022
Operating Activities:
Net Income Available for Common Stock$476,866 $566,021 
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
  
Gain on Sale of Assets— (12,736)
Depreciation, Depletion and Amortization409,573 369,790 
Deferred Income Taxes151,403 104,415 
Stock-Based Compensation20,630 19,506 
Reduction of Other Post-Retirement Regulatory Liability— (18,533)
Other19,647 31,983 
Change in:  
Receivables and Unbilled Revenue213,579 (168,769)
Gas Stored Underground and Materials, Supplies and Emission Allowances(8,406)3,109 
Unrecovered Purchased Gas Costs99,342 (66,214)
Other Current Assets(41,077)291 
Accounts Payable(37,095)11,907 
Amounts Payable to Customers58,600 398 
Customer Advances(5,105)8,885 
Customer Security Deposits4,481 4,991 
Other Accruals and Current Liabilities(67,664)34,260 
Other Assets(26,564)(58,924)
Other Liabilities(31,135)(17,859)
Net Cash Provided by Operating Activities$1,237,075 $812,521 
Investing Activities:
Capital Expenditures$(1,009,868)$(811,826)
Net Proceeds from Sale of Oil and Gas Producing Properties— 254,439 
Acquisition of Upstream Assets(124,758)— 
Sale of Fixed Income Mutual Fund Shares in Grantor Trust10,000 30,000 
Other12,279 8,683 
Net Cash Used in Investing Activities$(1,112,347)$(518,704)
Financing Activities:
Proceeds from Issuance of Short-Term Note Payable to Bank$250,000 $— 
Repayment of Short-Term Note Payable to Bank(250,000)— 
Net Change in Other Short-Term Notes Payable to Banks and Commercial Paper227,500 (98,500)
Reduction of Long-Term Debt(549,000)— 
Net Proceeds From Issuance of Long-Term Debt297,306 — 
Dividends Paid on Common Stock(176,096)(168,147)
Net Repurchases of Common Stock(6,709)(9,590)
Net Cash Used in Financing Activities$(206,999)$(276,237)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash(82,271)17,580 
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period137,718 120,138 
Cash, Cash Equivalents, and Restricted Cash at September 30$55,447 $137,718 









Page 15.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
UPSTREAM BUSINESS
Three Months Ended Twelve Months Ended
(Thousands of Dollars, except per share amounts)September 30,September 30,
EXPLORATION AND PRODUCTION SEGMENT20232022Variance20232022Variance
Total Operating Revenues$220,348 $252,035 $(31,687)$958,455 $1,010,464 $(52,009)
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense17,163 15,664 1,499 66,074 79,061 (12,987)
Lease Operating and Transportation Expense64,412 62,701 1,711 253,555 283,914 (30,359)
All Other Operation and Maintenance Expense2,357 1,957 400 9,327 20,140 (10,813)
Property, Franchise and Other Taxes3,775 5,475 (1,700)17,717 25,364 (7,647)
Depreciation, Depletion and Amortization66,394 52,958 13,436 241,142 208,148 32,994 
154,101 138,755 15,346 587,815 616,627 (28,812)
Gain on Sale of Assets— — — — 12,736 (12,736)
Operating Income66,247 113,280(47,033)370,640 406,573(35,933)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit (Costs) Credit347 (186)533 1,389 (744)2,133 
Interest and Other Income (Deductions)3,457 (3,080)6,537 2,359 (2,466)4,825 
Interest Expense(15,268)(14,474)(794)(54,317)(53,401)(916)
Income Before Income Taxes54,783 95,540 (40,757)320,071 349,962 (29,891)
Income Tax Expense (Benefit)18,011 (20,537)38,548 87,796 43,898 43,898 
Net Income$36,772 $116,077 $(79,305)$232,275 $306,064 $(73,789)
Net Income Per Share (Diluted)$0.40 $1.26 $(0.86)$2.52 $3.32 $(0.80)












Page 16.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
MIDSTREAM BUSINESSES
Three Months Ended Twelve Months Ended
(Thousands of Dollars, except per share amounts)September 30,September 30,
PIPELINE AND STORAGE SEGMENT20232022Variance20232022Variance
Revenues from External Customers$64,846 $68,836 $(3,990)$259,646 $265,415 $(5,769)
Intersegment Revenues29,192 28,913 279 119,545 111,629 7,916 
Total Operating Revenues94,038 97,749 (3,711)379,191 377,044 2,147 
Operating Expenses:
Purchased Gas326 592 (266)1,436 1,890 (454)
Operation and Maintenance29,154 28,868 286 106,654 100,117 6,537 
Property, Franchise and Other Taxes8,322 8,470 (148)33,774 34,133 (359)
Depreciation, Depletion and Amortization17,953 17,283 670 70,827 67,701 3,126 
55,755 55,213 542 212,691 203,841 8,850 
Operating Income38,283 42,536 (4,253)166,500 173,203 (6,703)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit1,330 767 563 5,319 3,069 2,250 
Interest and Other Income2,017 1,490 527 6,670 3,820 2,850 
Interest Expense(10,796)(10,929)133 (43,499)(42,492)(1,007)
Income Before Income Taxes30,834 33,864 (3,030)134,990 137,600 (2,610)
Income Tax Expense7,480 8,544 (1,064)34,489 35,043 (554)
Net Income$23,354 $25,320 $(1,966)$100,501 $102,557 $(2,056)
Net Income Per Share (Diluted)$0.25 $0.27 $(0.02)$1.09 $1.11 $(0.02)
Three Months Ended Twelve Months Ended
September 30, September 30,
GATHERING SEGMENT20232022Variance20232022Variance
Revenues from External Customers$4,889 $2,023 $2,866 $13,891 $12,086 $1,805 
Intersegment Revenues53,129 52,061 1,068 216,426 202,757 13,669 
Total Operating Revenues58,018 54,084 3,934 230,317 214,843 15,474 
Operating Expenses:
Operation and Maintenance11,123 10,725 398 44,375 38,234 6,141 
Property, Franchise and Other Taxes21 24 (3)60 37 23 
Depreciation, Depletion and Amortization9,111 8,656 455 35,725 33,998 1,727 
20,255 19,405 850 80,160 72,269 7,891 
Operating Income37,763 34,679 3,084 150,157 142,574 7,583 
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit (Costs) Credit37 (56)93 150 (224)374 
Interest and Other Income75 117 (42)534 198 336 
Interest Expense(3,433)(4,105)672 (14,989)(16,488)1,499 
Income Before Income Taxes34,442 30,635 3,807 135,852 126,060 9,792 
Income Tax Expense (Benefit)7,925 (589)8,514 36,128 24,949 11,179 
Net Income$26,517 $31,224 $(4,707)$99,724 $101,111 $(1,387)
Net Income Per Share (Diluted)$0.29 $0.34 $(0.05)$1.08 $1.10 $(0.02)


Page 17.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
DOWNSTREAM BUSINESS
Three Months Ended Twelve Months Ended
(Thousands of Dollars, except per share amounts)September 30,September 30,
UTILITY SEGMENT20232022Variance20232022Variance
Revenues from External Customers$78,865 $112,252 $(33,387)$941,779 $897,916 $43,863 
Intersegment Revenues81 60 21 581 305 276 
Total Operating Revenues78,946 112,312 (33,366)942,360 898,221 44,139 
Operating Expenses:
Purchased Gas14,743 49,692 (34,949)548,195 497,959 50,236 
Operation and Maintenance49,056 47,369 1,687 208,539 196,254 12,285 
Property, Franchise and Other Taxes8,454 8,981 (527)40,624 41,137 (513)
Depreciation, Depletion and Amortization16,026 15,167 859 61,450 59,760 1,690 
88,279 121,209 (32,930)858,808 795,110 63,698 
Operating Income (Loss)(9,333)(8,897)(436)83,552 103,111 (19,559)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit (Costs) Credit9 (492)501 4 5,526 (5,522)
Interest and Other Income1,437 429 1,008 6,339 1,591 4,748 
Interest Expense(8,041)(7,000)(1,041)(34,233)(24,115)(10,118)
Income (Loss) Before Income Taxes(15,928)(15,960)32 55,662 86,113 (30,451)
Income Tax Expense (Benefit)(8,749)(5,108)(3,641)7,267 17,165 (9,898)
Net Income (Loss)$(7,179)$(10,852)$3,673 $48,395 $68,948 $(20,553)
Net Income (Loss) Per Share (Diluted)$(0.08)$(0.12)$0.04 $0.52 $0.75 $(0.23)




























Page 18.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
Three Months Ended Twelve Months Ended
(Thousands of Dollars, except per share amounts)September 30,September 30,
ALL OTHER20232022Variance20232022Variance
Revenues from External Customers$— $— $— $— $— $— 
Intersegment Revenues— — — — 6 (6)
Total Operating Revenues— — — — 6 (6)
Operating Expenses:
Purchased Gas— — — — 6 (6)
Operation and Maintenance— — — 21 5 16 
— — — 21 11 10 
Operating Loss— — — (21)(5)(16)
Other Income (Expense):
Interest and Other Income (Deductions)(66)1 (67)(517)3 (520)
Interest Expense(68)(4)(64)(157)(4)(153)
Loss before Income Taxes(134)(3)(131)(695)(6)(689)
Income Tax Expense (Benefit)(33)(1)(32)(164)3 (167)
Net Loss$(101)$(2)$(99)$(531)$(9)$(522)
Net Loss Per Share (Diluted)$— $— $— $— $— $— 
Three Months Ended Twelve Months Ended
September 30,September 30,
CORPORATE20232022Variance20232022Variance
Revenues from External Customers$— $— $— $— $165 $(165)
Intersegment Revenues932 1,183 (251)4,388 4,430 (42)
Total Operating Revenues932 1,183 (251)4,388 4,595 (207)
Operating Expenses:
Operation and Maintenance8,345 4,801 3,544 19,115 14,841 4,274 
Property, Franchise and Other Taxes129 139 (10)525 511 14 
Depreciation, Depletion and Amortization115 45 70 429 183 246 
8,589 4,985 3,604 20,069 15,535 4,534 
Operating Loss(7,657)(3,802)(3,855)(15,681)(10,940)(4,741)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs(354)(1,017)663 (1,417)(4,069)2,652 
Interest and Other Income36,337 33,712 2,625 147,935 126,648 21,287 
Interest Expense on Long-Term Debt(28,449)(30,207)1,758 (111,948)(120,507)8,559 
Other Interest Expense(6,089)(3,262)(2,827)(23,370)(8,211)(15,159)
Loss before Income Taxes(6,212)(4,576)(1,636)(4,481)(17,079)12,598 
Income Tax Benefit(526)(952)426 (983)(4,429)3,446 
Net Loss$(5,686)$(3,624)$(2,062)$(3,498)$(12,650)$9,152 
Net Loss Per Share (Diluted)$(0.06)$(0.04)$(0.02)$(0.04)$(0.13)$0.09 
Three Months Ended Twelve Months Ended
September 30,September 30,
INTERSEGMENT ELIMINATIONS20232022Variance20232022Variance
Intersegment Revenues$(83,334)$(82,217)$(1,117)$(340,940)$(319,127)$(21,813)
Operating Expenses:
Purchased Gas(27,934)(27,359)(575)(112,036)(107,762)(4,274)
Operation and Maintenance(55,400)(54,858)(542)(228,904)(211,365)(17,539)
(83,334)(82,217)(1,117)(340,940)(319,127)(21,813)
Operating Income— — — — — — 
Other Income (Expense):
Interest and Other Deductions(39,242)(36,485)(2,757)(150,627)(134,861)(15,766)
Interest Expense39,242 36,485 2,757 150,627 134,861 15,766 
Net Income$— $— $— $— $— $— 
Net Income Per Share (Diluted)$— $— $— $— $— $— 



Page 19.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
Three Months Ended Twelve Months Ended
September 30,September 30,
(Unaudited)(Unaudited)
IncreaseIncrease
20232022(Decrease)20232022(Decrease)
Capital Expenditures:
Exploration and Production(1)
$144,938 
(2)
$160,056 
(3)
$(15,118)$737,725 
(2)(3)
$565,791 
(3)(4)
$171,934 
Pipeline and Storage75,109 
(2)
37,563 
(3)
37,546 141,877 
(2)(3)
95,806 
(3)(4)
46,071 
Gathering47,917 
(2)
26,957 
(3)
20,960 103,295 
(2)(3)
55,546 
(3)(4)
47,749 
Utility51,246 
(2)
40,061 
(3)
11,185 139,922 
(2)(3)
111,033 
(3)(4)
28,889 
Total Reportable Segments319,210 264,637 54,573 1,122,819 828,176 294,643 
All Other— — — — — — 
Corporate305 549 (244)754 1,212 (458)
Total Capital Expenditures$319,515 $265,186 $54,329 $1,123,573 $829,388 $294,185 

(1)The year ended September 30, 2023 includes $124.8 million related to the acquisition of upstream assets acquired from SWN, as well as $25.0 million related to the acquisition of assets from EXCO and UGI. The acquisition cost for the assets acquired from SWN is reported as a component of Acquisition of Upstream Assets on the Consolidated Statement of Cash Flows.

(2)Capital expenditures for the quarter and year ended September 30, 2023, include accounts payable and accrued liabilities related to capital expenditures of $43.2 million, $31.8 million, $20.6 million, and $13.6 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 September 30, 2023, since they represent non-cash investing activities at that date.

(3)Capital expenditures for the year ended September 30, 2023, exclude capital expenditures of $83.0 million, $15.2 million, $10.7 million and $11.4 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, 2022 and paid during the year ended September 30, 2023. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2022, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2023.

(4)Capital expenditures for the year ended September 30, 2022, exclude capital expenditures of $47.9 million, $39.4 million, $4.8 million and $10.6 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, 2021 and paid during the year ended September 30, 2022. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2021, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2022.

DEGREE DAYS
Percent Colder
(Warmer) Than:
Three Months Ended September 30,Normal20232022
  Normal (1)
Last Year (1)
Buffalo, NY16261107(62.3)(43.0)
Erie, PA815994(27.2)(37.2)
Twelve Months Ended September 30,
Buffalo, NY6,6175,7175,769(13.6)(0.9)
Erie, PA6,1045,4935,368(10.0)2.3 
(1)Percents compare actual 2023 degree days to normal degree days and actual 2023 degree days to actual 2022 degree days.



Page 20.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Three Months Ended Twelve Months Ended
September 30,September 30,
IncreaseIncrease
20232022(Decrease)20232022(Decrease)
Gas Production/Prices:
Production (MMcf)
Appalachia93,709 87,858 5,851 372,271 341,700 30,571 
West Coast— 1 (1)— 1,211 (1,211)
Total Production93,709 87,859 5,850 372,271 342,911 29,360 
Average Prices (Per Mcf)
Appalachia$1.99 $6.16 $(4.17)$2.78 $5.03 $(2.25)
West CoastN/MN/MN/M N/M10.03 N/M
Weighted Average1.99 6.16 (4.17)2.78 5.05 (2.27)
Weighted Average after Hedging2.33 2.84 (0.51)2.55 2.71 (0.16)
Oil Production/Prices:
Production (Thousands of Barrels)
Appalachia8 7 1 30 16 14 
West Coast— — — — 1,588 (1,588)
Total Production8 7 1 30 1,604 (1,574)
Average Prices (Per Barrel)
Appalachia$76.02 $90.22 $(14.20)$75.64 $97.82 $(22.18)
West CoastN/MN/MN/MN/M94.06 N/M
Weighted Average76.02 90.93 (14.91)75.64 94.10 (18.46)
Weighted Average after Hedging (1)
76.02 90.86 (14.84)75.64 70.80 4.84 
Total Production (MMcfe)93,757 87,901 5,856 372,451 352,535 19,916 
Selected Operating Performance Statistics:
General & Administrative Expense per Mcfe (2)
$0.18 $0.18 $— $0.18 $0.20 $(0.02)
Lease Operating and Transportation Expense per Mcfe (2)(3)
$0.69 $0.71 $(0.02)$0.68 $0.81 $(0.13)
Depreciation, Depletion & Amortization per Mcfe (2)
$0.71 $0.60 $0.11 $0.65 $0.59 $0.06 
N/M Not Meaningful (as a result of the sale of Seneca's West Coast assets in June 2022)    

(1)Weighted average oil price after hedging for the twelve months ended September 30, 2022 excludes a loss on discontinuance of crude oil cash flow hedges of $44.6 million.
(2)Refer to page 15 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment. General and Administrative Expense per Mcfe for the twelve months ended September 30, 2022 excludes transaction and severance costs related to the California asset sale.
(3)Amounts include transportation expense of $0.55 and $0.58 per Mcfe for the three months ended September 30, 2023 and September 30, 2022, respectively. Amounts include transportation expense of $0.57 and $0.57 per Mcfe for the twelve months ended September 30, 2023 and September 30, 2022, respectively.






Page 21.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for Fiscal 2024VolumeAverage Hedge Price
Gas Swaps
NYMEX134,930,000 MMBTU$3.34 / MMBTU
No Cost Collars65,280,000 MMBTU$3.33 / MMBTU (Floor) / $4.17 / MMBTU (Ceiling)
Fixed Price Physical Sales83,196,787 MMBTU$2.44 / MMBTU
Total283,406,787 MMBTU
Hedging Summary for Fiscal 2025VolumeAverage Hedge Price
Gas Swaps
NYMEX88,810,000 MMBTU$3.53 / MMBTU
No Cost Collars43,960,000 MMBTU$3.49 / MMBTU (Floor) / $4.65 / MMBTU (Ceiling)
Fixed Price Physical Sales75,047,438 MMBTU$2.49 / MMBTU
Total207,817,438 MMBTU
Hedging Summary for Fiscal 2026VolumeAverage Hedge Price
Gas Swaps
NYMEX38,020,000 MMBTU$3.98 / MMBTU
No Cost Collars42,720,000 MMBTU$3.53 / MMBTU (Floor) / $4.76 / MMBTU (Ceiling)
Fixed Price Physical Sales66,821,415 MMBTU$2.39 / MMBTU
Total147,561,415 MMBTU
Hedging Summary for Fiscal 2027VolumeAverage Hedge Price
Gas Swaps
NYMEX13,500,000 MMBTU$4.25 / MMBTU
No Cost Collars3,560,000 MMBTU$3.53 / MMBTU (Floor) / $4.76 / MMBTU (Ceiling)
Fixed Price Physical Sales46,128,777 MMBTU$2.39 / MMBTU
Total63,188,777 MMBTU
Hedging Summary for Fiscal 2028VolumeAverage Hedge Price
Gas Swaps
NYMEX1,000,000 MMBTU$4.29 / MMBTU
Fixed Price Physical Sales12,208,068 MMBTU$2.48 / MMBTU
Total13,208,068 MMBTU
Hedging Summary for Fiscal 2029VolumeAverage Hedge Price
Fixed Price Physical Sales788,352 MMBTU$2.54 / MMBTU


Page 22.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Reserve Quantity Information
(Unaudited)
Gas MMcf
U.S.
Appalachian
Region
Proved Developed and Undeveloped Reserves:
September 30, 20224,170,662 
Extensions and Discoveries670,438 
Revisions of Previous Estimates32,379 
Production(372,271)
Purchases of Minerals in Place33,876 
September 30, 20234,535,084 
Proved Developed Reserves:
September 30, 20223,312,568 
September 30, 20233,550,034 
Oil Mbbl
U.S.
Appalachian
Region
Proved Developed and Undeveloped Reserves:
September 30, 2022250 
Extensions and Discoveries— 
Revisions of Previous Estimates(4)
Production(30)
September 30, 2023216 
Proved Developed Reserves:
September 30, 2022250 
September 30, 2023216 


Page 23.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
Three Months Ended Twelve Months Ended
September 30,September 30,
IncreaseIncrease
20232022(Decrease)20232022(Decrease)
Firm Transportation - Affiliated17,589 16,943 646 126,500 111,157 15,343 
Firm Transportation - Non-Affiliated161,750 171,983 (10,233)689,984 679,260 10,724 
Interruptible Transportation168 3,886 (3,718)2,192 5,612 (3,420)
179,507 192,812 (13,305)818,676 796,029 22,647 
Gathering Volume - (MMcf)
Three Months Ended Twelve Months Ended
September 30,September 30,
IncreaseIncrease
20232022(Decrease)20232022(Decrease)
Gathered Volume117,260 104,707 12,553 453,338 419,332 34,006 
Utility Throughput - (MMcf)
Three Months Ended Twelve Months Ended
September 30,September 30,
IncreaseIncrease
20232022(Decrease)20232022(Decrease)
Retail Sales:
Residential Sales3,765 4,146 (381)61,401 64,011 (2,610)
Commercial Sales530 644 (114)9,342 9,621 (279)
Industrial Sales42 75 (33)548 541 7 
4,337 4,865 (528)71,291 74,173 (2,882)
Transportation9,419 9,720 (301)62,986 65,993 (3,007)
13,756 14,585 (829)134,277 140,166 (5,889)























Page 24.

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 Adjusted Operating Results, Adjusted EBITDA and free cash flow, 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 or liquidity 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 Adjusted Operating Results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel's reported GAAP earnings to Adjusted Operating Results for the three and twelve months ended September 30, 2023 and 2022:

Three Months Ended Twelve Months Ended
September 30,September 30,
(in thousands except per share amounts)2023202220232022
Reported GAAP Earnings$73,677 $158,143 $476,866 $566,021 
Items impacting comparability:
Items related to West Coast asset sale:
Gain on sale of West Coast assets (E&P)— — — (12,736)
Tax impact of gain on sale of West Coast assets— — — 3,225 
Loss from discontinuance of crude oil cash flow hedges (E&P)— — — 44,632 
Tax impact of loss from discontinuance of crude oil cash flow hedges— — — (11,303)
Transaction and severance costs (E&P)— — — 9,693 
Tax impact of transaction and severance costs— — — (2,455)
Total items impacting comparability related to West Coast asset sale— — — 31,056 
Unrealized (gain) loss on derivative asset (E&P)(2,803)4,395 899 4,395 
Tax impact of unrealized (gain) loss on derivative asset775 (1,203)(240)(1,203)
Unrealized (gain) loss on other investments (Corporate / All Other)719 1,532 (913)11,625 
Tax impact of unrealized (gain) loss on other investments(151)(322)192 (2,441)
Reversal of deferred tax valuation allowance— (24,850)— (24,850)
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction— (28,406)— (28,406)
Reduction of other post-retirement regulatory liability (Utility)— — — (18,533)
Tax impact of reduction of other post-retirement regulatory liability— — — 3,892 
Adjusted Operating Results$72,217 $109,289 $476,804 $541,556 
Reported GAAP Earnings Per Share$0.80 $1.71 $5.17 $6.15 
Items impacting comparability:
Items related to West Coast asset sale:
Gain on sale of West Coast assets, net of tax (E&P)— — — (0.10)
Loss from discontinuance of crude oil cash flow hedges, net of tax (E&P)— — — 0.36 
Transaction and severance costs, net of tax (E&P)— — — 0.08 
Total items impacting comparability related to West Coast asset sale— — — 0.34 
Unrealized (gain) loss on derivative asset, net of tax (E&P)(0.02)0.03 0.01 0.03 
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)0.01 0.01 (0.01)0.10 
Reversal of deferred tax valuation allowance— (0.27)— (0.27)
Remeasurement of deferred income taxes from Pennsylvania state income tax rate reduction— (0.31)— (0.31)
Reduction of other post-retirement regulatory liability, net of tax (Utility)— — — (0.16)
Rounding(0.01)0.02 — — 
Adjusted Operating Results Per Share$0.78 $1.19 $5.17 $5.88 





Page 25.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES (Continued)


Management defines 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. The following tables reconcile National Fuel's reported GAAP earnings to Adjusted EBITDA for the three and twelve months ended September 30, 2023 and 2022:

Three Months Ended Twelve Months Ended
September 30,September 30,
(in thousands)2023202220232022
Reported GAAP Earnings$73,677 $158,143 $476,866 $566,021 
Depreciation, Depletion and Amortization109,599 94,109 409,573 369,790 
Other (Income) Deductions(5,384)4,800 (18,138)1,509 
Interest Expense32,902 33,496 131,886 130,357 
Income Taxes24,108 (18,643)164,533 116,629 
Gain on Sale of Assets— — — (12,736)
Loss from discontinuance of crude oil cash flow hedges (E&P)— — — 44,632 
Transaction and severance costs related to West Coast asset sale (E&P)— — — 9,693 
Adjusted EBITDA$234,902 $271,905 $1,164,720 $1,225,895 
Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA$56,236 $59,819 $237,327 $240,904 
Gathering Adjusted EBITDA46,874 43,335 185,882 176,572 
Total Midstream Businesses Adjusted EBITDA103,110 103,154 423,209 417,476 
Exploration and Production Adjusted EBITDA132,641 166,238 611,782 656,310 
Utility Adjusted EBITDA6,693 6,270 145,002 162,871 
Corporate and All Other Adjusted EBITDA(7,542)(3,757)(15,273)(10,762)
Total Adjusted EBITDA$234,902 $271,905 $1,164,720 $1,225,895 


































Page 26.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA
Three Months Ended Twelve Months Ended
September 30,September 30,
(in thousands)2023202220232022
Exploration and Production Segment
Reported GAAP Earnings$36,772 $116,077 $232,275 $306,064 
Depreciation, Depletion and Amortization66,394 52,958 241,142 208,148 
Other (Income) Deductions(3,804)3,266 (3,748)3,210 
Interest Expense15,268 14,474 54,317 53,401 
Income Taxes18,011 (20,537)87,796 43,898 
Gain on Sale of West Coast Assets— — — (12,736)
Loss from Discontinuance of Crude Oil Cash Flow Hedges— — — 44,632 
Transaction and Severance Costs related to West Coast Asset Sale— — — 9,693 
Adjusted EBITDA$132,641 $166,238 $611,782 $656,310 
Pipeline and Storage Segment
Reported GAAP Earnings$23,354 $25,320 $100,501 $102,557 
Depreciation, Depletion and Amortization17,953 17,283 70,827 67,701 
Other (Income) Deductions(3,347)(2,257)(11,989)(6,889)
Interest Expense10,796 10,929 43,499 42,492 
Income Taxes7,480 8,544 34,489 35,043 
Adjusted EBITDA$56,236 $59,819 $237,327 $240,904 
Gathering Segment
Reported GAAP Earnings$26,517 $31,224 $99,724 $101,111 
Depreciation, Depletion and Amortization9,111 8,656 35,725 33,998 
Other (Income) Deductions(112)(61)(684)26 
Interest Expense3,433 4,105 14,989 16,488 
Income Taxes7,925 (589)36,128 24,949 
Adjusted EBITDA$46,874 $43,335 $185,882 $176,572 
Utility Segment
Reported GAAP Earnings$(7,179)$(10,852)$48,395 $68,948 
Depreciation, Depletion and Amortization16,026 15,167 61,450 59,760 
Other (Income) Deductions(1,446)63 (6,343)(7,117)
Interest Expense8,041 7,000 34,233 24,115 
Income Taxes(8,749)(5,108)7,267 17,165 
Adjusted EBITDA$6,693 $6,270 $145,002 $162,871 
Corporate and All Other
Reported GAAP Earnings$(5,787)$(3,626)$(4,029)$(12,659)
Depreciation, Depletion and Amortization115 45 429 183 
Other (Income) Deductions3,325 3,789 4,626 12,279 
Interest Expense(4,636)(3,012)(15,152)(6,139)
Income Taxes(559)(953)(1,147)(4,426)
Adjusted EBITDA$(7,542)$(3,757)$(15,273)$(10,762)















Page 27.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
FREE CASH FLOW


Management defines free cash flow as net cash provided by operating activities, less net cash used in investing activities, adjusted for acquisitions and divestitures. The following table reconciles National Fuel's free cash flow to Net Cash Provided by Operating Activities on the Consolidated Statement of Cash Flows for the twelve months ended September 30, 2023 and 2022:

Twelve Months Ended
September 30,
(in thousands)20232022
Net Cash Provided by Operating Activities$1,237,075 $812,521 
Less:
Net Cash Used in Investing Activities1,112,347 518,704 
Proceeds from Divestitures— 254,439 
124,728 39,378 
Plus:
Acquisitions124,758 — 
Upstream Acquisitions Included in Capital Expenditures(1)
25,057 — 
Free Cash Flow$274,543 $39,378 

(1)$25.0 million related to the acquisition of assets from EXCO and UGI included in Capital Expenditures on the Consolidated Statement of Cash Flows.