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, 2020.
FISCAL 2020 HIGHLIGHTS
- Completed highly-accretive acquisition of Appalachian upstream and midstream gathering assets in July, which is expected to generate in excess of $100 million of consolidated E&P and Gathering segment free cash flow in fiscal 2021
- E&P segment capital expenditures reduced by $107 million, or 22% from the prior year, excluding the Company’s Appalachian upstream acquisition (see page 20 in download below)
- E&P segment net production of 241.5 Bcfe, an increase of 29.7 Bcfe, or 14%, from the prior year, with corresponding 13% increase in Gathering segment throughput
- Increased E&P segment reserves to approximately 3.5 Tcfe, an increase of 12% versus fiscal 2019, driven largely by the Company’s recent acquisition, which added 684 Bcf of proved developing producing reserves at a cost of $0.36 per Mcf
- Placed Empire North project into service in mid-September, which is expected to generate $27 million in incremental annual Pipeline & Storage segment revenue
- Invested $71.4 million in Utility system modernization and reliability, replacing over 150 miles of older vintage mains and services, and bringing 5-year total to over $341 million
- Increased shareholder dividend for the 50th consecutive year to an annual rate of $1.78 per share
- Published initial Corporate Responsibility Report in September 2020, which is available on the Company’s corporate responsibility website, www.nationalfuel.com/corporate/our-guiding-principles/
FISCAL 2020 FOURTH QUARTER SUMMARY
- GAAP net loss of $145.5 million, or $1.60 per share, which includes a $183.7 million non-cash, after-tax impairment of oil and gas properties, compared to GAAP net income of $47.3 million, or $0.54 per share, in the prior year
- Adjusted operating results of $36.3 million, or $0.40 per share, compared to $47.0 million, or $0.54 per share, in the prior year (see non-GAAP reconciliation on page 2 in download below)
- Adjusted EBITDA of $159.6 million compared to $157.3 million in the prior year (non-GAAP reconciliation on page 25 in download below)
- Pipeline & Storage segment Adjusted EBITDA of $47.0 million, an increase of 31% from the prior year
- Gathering segment Adjusted EBITDA of $33.1 million, an increase of 11% from the prior year
- E&P segment net production of 67.3 Bcfe, an increase of 8.2 Bcfe, or 14%, from the prior year, which includes the impact of the Company’s recently-closed Appalachian acquisition and approximately 6 Bcf of price-related natural gas curtailments
- Average natural gas prices of $1.92 per Mcf, after hedge gains of $0.28 per Mcf, down $0.34 per Mcf from the prior year
- Average oil prices of $55.70 per Bbl, after hedge gains of $14.49 per Bbl, down $5.30 per Bbl from the prior year