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; changes in economic conditions, including the imposition of additional tariffs on U.S. imports and related retaliatory tariffs, inflationary pressures, supply chain issues, liquidity challenges, and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the Company’s ability to complete strategic transactions, such as the pending transaction with CenterPoint Energy Resources Corp., including receipt of required regulatory clearances and satisfaction of other conditions to closing, and to recognize the anticipated benefits of such transactions; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; changes in the price of natural gas; impairments under the SEC’s full cost ceiling test for natural gas reserves; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures, other investments, and acquisitions, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; negotiations with the collective bargaining units representing the Company’s workforce, including potential work stoppages during negotiations; changes in price differentials between similar quantities of natural gas sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; the impact of information technology disruptions, cybersecurity or data security breaches, including the impact of issues that may arise from the use of artificial intelligence technologies; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, water availability and disposal or recycling opportunities of used water, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increased costs 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; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; uncertainty of natural gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war, as well as economic and operational disruptions due to third-party outages; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS QUARTER ENDED DECEMBER 31, 2025 (Unaudited) Integrated Upstream Pipeline & Corporate / (Thousands of Dollars) & Gathering Storage Utility All Other Consolidated(1) First quarter 2025 GAAP earnings $ (19,632 ) $ 32,454 $ 32,499 $ (335 ) $ 44,986 Items impacting comparability: Impairment of assets 141,802 141,802 Tax impact of impairment of assets (37,169 ) (37,169 ) Unrealized (gain) loss on derivative asset 349 349 Tax impact of unrealized (gain) loss on derivative asset (94 ) (94 ) Unrealized (gain) loss on other investments 2,617 2,617 Tax impact of unrealized (gain) loss on other investments (550 ) (550 ) First quarter 2025 adjusted earnings 85,256 32,454 32,499 1,732 151,941 Drivers of adjusted earnings(2) Integrated Upstream and Gathering Revenues Higher (lower) natural gas production 22,909 22,909 Higher (lower) realized natural gas prices, after hedging 31,340 31,340 Higher (lower) gathering revenues (538 ) (538 ) Higher (lower) other operating revenues 2,489 2,489 Utility Margins(3) Impact of usage and weather 2,817 2,817 Impact of new rates in New York 2,949 2,949 Regulatory revenue adjustments 991 991 Operating Expenses Lower (higher) lease operating expenses (4,878 ) (4,878 ) Lower (higher) operating expenses (2,563 ) (3,742 ) (939 ) (7,244 ) Lower (higher) property, franchise and other taxes (1,292 ) (1,292 ) Lower (higher) depreciation / depletion (8,251 ) (408 ) (1,305 ) (9,964 ) Other Income (Expense) Higher (lower) other income (477 ) (1,190 ) (435 ) (2,102 ) (Higher) lower interest expense 2,589 (703 ) (1,877 ) 9 Income Taxes Lower (higher) income tax expense / effective tax rate (2,359 ) 390 87 (197 ) (2,079 ) All other / rounding (178 ) (27 ) 497 42 334 First quarter 2026 adjusted earnings 124,047 31,219 34,090 (1,674 ) 187,682 Items impacting comparability: Costs related to the pending Ohio gas utility acquisition (7,687 ) (7,687 ) Tax impact of costs related to the pending Ohio gas utility acquisition 1,781 1,781 Net interest benefit from equity issuance 509 509 Tax impact of net interest benefit from equity issuance (118 ) (118 ) Unrealized gain (loss) on other investments (661 ) (661 ) Tax impact of unrealized gain (loss) on other investments 139 139 First quarter 2026 GAAP earnings $ 124,047 $ 31,219 $ 34,090 $ (7,711 ) $ 181,645 (1)Amounts do not reflect intercompany eliminations. NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, September 30, (Thousands of Dollars) 2025 2025 ASSETS Property, Plant and Equipment $ 15,616,382 $ 15,406,329 Less - Accumulated Depreciation, Depletion and Amortization 7,800,307 7,693,687 Net Property, Plant and Equipment 7,816,075 7,712,642 Current Assets: Cash and Temporary Cash Investments 271,398 43,166 Receivables - Net 265,897 180,801 Unbilled Revenue 69,645 16,219 Gas Stored Underground 18,978 33,468 Materials and Supplies - at average cost 49,862 50,545 Unrecovered Purchased Gas Costs 20,723 5,769 Other Current Assets 62,097 80,759 Total Current Assets 758,600 410,727 Other Assets: Recoverable Future Taxes 92,405 89,247 Unamortized Debt Expense 5,772 6,236 Other Regulatory Assets 133,604 135,486 Deferred Charges 75,570 73,941 Other Investments 68,962 68,346 Goodwill 5,476 5,476 Prepaid Pension and Post-Retirement Benefit Costs 171,569 169,228 Fair Value of Derivative Financial Instruments 69,364 39,388 Other 8,475 8,387 Total Other Assets 631,197 595,735 Total Assets $ 9,205,872 $ 8,719,104 CAPITALIZATION AND LIABILITIES Capitalization: Comprehensive Shareholders' Equity Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 95,017,438 Shares and 90,379,095 Shares, Respectively $ 95,017 $ 90,379 Paid in Capital 1,382,593 1,050,918 Earnings Reinvested in the Business 2,143,340 2,012,529 Accumulated Other Comprehensive Loss (32,990 ) (59,222 ) Total Comprehensive Shareholders' Equity 3,587,960 3,094,604 Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs 2,083,892 2,382,861 Total Capitalization 5,671,852 5,477,465 Current and Accrued Liabilities: Notes Payable to Banks and Commercial Paper 90,000 150,200 Current Portion of Long-Term Debt 600,000 300,000 Accounts Payable 141,674 184,046 Amounts Payable to Customers 476 968 Dividends Payable 50,834 48,353 Interest Payable on Long-Term Debt 34,644 14,393 Customer Advances 17,108 17,188 Customer Security Deposits 29,875 29,853 Other Accruals and Current Liabilities 209,202 174,689 Fair Value of Derivative Financial Instruments 155 6,074 Total Current and Accrued Liabilities 1,173,968 925,764 Other Liabilities: Deferred Income Taxes 1,274,254 1,225,262 Taxes Refundable to Customers 304,370 306,335 Cost of Removal Regulatory Liability 311,971 307,659 Other Regulatory Liabilities 120,230 121,944 Pension and Other Post-Retirement Liabilities 3,731 5,252 Asset Retirement Obligations 234,405 236,787 Other Liabilities 111,091 112,636 Total Other Liabilities 2,360,052 2,315,875 Commitments and Contingencies — — Total Capitalization and Liabilities $ 9,205,872 $ 8,719,104
Author: National Fuel Gas Company
Published at: 2026-01-28 21:45:00
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