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, including receipt of required regulatory clearances and satisfaction of other conditions to closing; 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; 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; 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. NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS TWELVE MONTHS ENDED SEPTEMBER 30, 2025 (Unaudited) Integrated Upstream Pipeline & Corporate / (Thousands of Dollars) & Gathering Storage Utility All Other Consolidated* Fiscal 2024 GAAP earnings $ (57,041 ) $ 79,670 $ 57,089 $ (2,205 ) $ 77,513 Items impacting comparability: Impairment of assets 473,054 46,075 519,129 Tax impact of impairment of assets (123,955 ) (12,316 ) (136,271 ) Unrealized (gain) loss on derivative asset 6,548 6,548 Tax impact of unrealized (gain) loss on derivative asset (1,791 ) (1,791 ) Unrealized (gain) loss on other investments (3,034 ) (3,034 ) Tax impact of unrealized (gain) loss on other investments 637 637 Fiscal 2024 adjusted earnings 296,815 113,429 57,089 (4,602 ) 462,731 Drivers of adjusted earnings** Integrated Upstream and Gathering Revenues Higher (lower) natural gas production 66,082 66,082 Higher (lower) realized natural gas prices, after hedging 88,324 88,324 Higher (lower) gathering revenues (2,942 ) (2,942 ) Higher (lower) other operating revenues 12,842 12,842 Pipeline and Storage Revenues Higher (lower) operating revenues 13,236 13,236 Utility Margins*** Impact of usage and weather 2,411 2,411 Impact of new rates in New York 31,808 31,808 Operating Expenses Lower (higher) lease operating expenses 1,097 1,097 Lower (higher) operating expenses (13,546 ) (4,775 ) (9,727 ) (2,088 ) (30,136 ) Lower (higher) property, franchise and other taxes (3,312 ) (3,312 ) Lower (higher) depreciation / depletion 3,907 (3,507 ) 400 Other Income (Expense) Higher (lower) other income (3,089 ) (3,119 ) 15,283 5,534 14,609 (Higher) lower interest expense 1,516 (6,510 ) (6,469 ) (11,463 ) Income Taxes Lower (higher) income tax expense / effective tax rate (10,611 ) 512 (3,750 ) (1,028 ) (14,877 ) All other / rounding (558 ) 158 152 (57 ) (305 ) Fiscal 2025 adjusted earnings 435,009 120,957 83,249 (8,710 ) 630,505 Items impacting comparability: Impairment of assets (141,802 ) (141,802 ) Tax impairment of assets 37,169 37,169 Premiums paid on early redemption of debt (2,385 ) (2,385 ) Tax impact of premiums paid on early redemption of debt 642 642 Unrealized gain (loss) on derivative asset (729 ) (729 ) Tax impact of unrealized gain (loss) on derivative asset (3,206 ) (3,206 ) Pending Ohio acquisition costs (1,061 ) (1,061 ) Tax impact of pending Ohio acquisition costs 246 246 Unrealized gain (loss) on other investments (1,108 ) (1,108 ) Tax impact of unrealized gain (loss) on other investments 233 233 Fiscal 2025 GAAP earnings $ 324,698 $ 120,957 $ 83,249 $ (10,400 ) $ 518,504 * Amounts do not reflect intercompany eliminations. NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE TWELVE MONTHS ENDED SEPTEMBER 30, 2025 (Unaudited) Integrated Upstream Pipeline & Corporate / & Gathering Storage Utility All Other Consolidated* Fiscal 2024 GAAP earnings per share $ (0.62 ) $ 0.86 $ 0.62 $ (0.02 ) $ 0.84 Items impacting comparability: Impairment of assets, net of tax 3.78 0.37 4.15 Unrealized (gain) loss on derivative asset, net of tax 0.05 0.05 Unrealized (gain) loss on other investments, net of tax (0.03 ) (0.03 ) Rounding 0.01 (0.01 ) — Fiscal 2024 adjusted earnings per share 3.22 1.23 0.62 (0.06 ) 5.01 Drivers of adjusted earnings** Integrated Upstream and Gathering Revenues Higher (lower) natural gas production 0.72 0.72 Higher (lower) realized natural gas prices, after hedging 0.97 0.97 Higher (lower) gathering revenues (0.03 ) (0.03 ) Higher (lower) other operating revenues 0.14 0.14 Pipeline and Storage Revenues Higher (lower) operating revenues 0.15 0.15 Utility Margins*** Impact of usage and weather 0.03 0.03 Impact of new rates in New York 0.35 0.35 Operating Expenses Lower (higher) lease operating expenses 0.01 0.01 Lower (higher) operating expenses (0.15 ) (0.05 ) (0.11 ) (0.02 ) (0.33 ) Lower (higher) property, franchise and other taxes (0.04 ) (0.04 ) Lower (higher) depreciation / depletion 0.04 (0.04 ) — Other Income (Expense) Higher (lower) other income (0.03 ) (0.03 ) 0.17 0.06 0.17 (Higher) lower interest expense 0.02 (0.07 ) (0.07 ) (0.12 ) Income Taxes Lower (higher) income tax expense / effective tax rate (0.12 ) 0.01 (0.04 ) (0.01 ) (0.16 ) Impact of reduction in shares 0.04 0.01 0.01 — 0.06 All other / rounding — (0.01 ) (0.01 ) — (0.02 ) Fiscal 2025 adjusted earnings per share 4.77 1.33 0.91 (0.10 ) 6.91 Items impacting comparability: Impairment of assets, net of tax (1.14 ) (1.14 ) Premiums paid on early redemption of debt, net of tax (0.02 ) (0.02 ) Unrealized gain (loss) on derivative asset, net of tax (0.04 ) (0.04 ) Pending Ohio acquisition costs, net of tax (0.01 ) (0.01 ) Unrealized gain (loss) on other investments, net of tax (0.01 ) (0.01 ) Rounding (0.01 ) (0.01 ) Fiscal 2025 GAAP earnings per share $ 3.56 $ 1.33 $ 0.91 $ (0.12 ) $ 5.68 * Amounts do not reflect intercompany eliminations.
Author: National Fuel Gas Company
Published at: 2025-11-05 21:45:00
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