National Fuel Gas (NFG) Lowers FY12 Production, CapEx Outlooks
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Price: $82.48 -1.74%
Financial Fact:
Net Income Available for Common Stock: 37.55M
Today's EPS Names:
BTTX, VAXX, ELYS, More
Financial Fact:
Net Income Available for Common Stock: 37.55M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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National Fuel Gas Company (NYSE: NFG) announced its updated capital expenditure guidance for fiscal years 2012 and 2013 as well as updated production forecasts for Seneca Resources Corporation (“Seneca”), the Company’s wholly-owned exploration and production subsidiary.
The Company is providing an updated production forecast range for the entire 2013 fiscal year of 112 to 126 billion cubic feet equivalent (“Bcfe”), which includes 88 to 98 Bcfe from the Marcellus Shale and 19 to 21 Bcfe from its California crude oil properties.
The Company is also revising its production forecast range for the entire 2012 fiscal year to 81 to 90 Bcfe, a decrease from the previous forecast of 85 to 95 Bcfe. This reduction is a result of the Company’s response to a significant decline in natural gas prices, in combination with lower-than-anticipated production from Seneca’s non-operated joint venture in the Marcellus Shale.
Currently, Seneca has curtailed natural gas production from the Marcellus Shale of approximately 15 million cubic feet (“MMcf”) per day, which represents volumes that would have been sold at spot market pricing. Such pricing typically has been lower than the value received by Seneca on volumes sold to meet current contracted firm sales agreements with various third parties. Seneca is also delaying certain well completion activities within its Marcellus operations.
For fiscal year 2012, the Company anticipates total capital expenditures in the range of $900 to $1,045 million. The new guidance represents a decrease from the previous forecast of $950 to $1,085 million and is largely a result of the Company’s response to the significant decline in natural gas prices. The Company’s capital expenditures for fiscal 2013 will be in the range of $685 to $860 million.
The Company is providing an updated production forecast range for the entire 2013 fiscal year of 112 to 126 billion cubic feet equivalent (“Bcfe”), which includes 88 to 98 Bcfe from the Marcellus Shale and 19 to 21 Bcfe from its California crude oil properties.
The Company is also revising its production forecast range for the entire 2012 fiscal year to 81 to 90 Bcfe, a decrease from the previous forecast of 85 to 95 Bcfe. This reduction is a result of the Company’s response to a significant decline in natural gas prices, in combination with lower-than-anticipated production from Seneca’s non-operated joint venture in the Marcellus Shale.
Currently, Seneca has curtailed natural gas production from the Marcellus Shale of approximately 15 million cubic feet (“MMcf”) per day, which represents volumes that would have been sold at spot market pricing. Such pricing typically has been lower than the value received by Seneca on volumes sold to meet current contracted firm sales agreements with various third parties. Seneca is also delaying certain well completion activities within its Marcellus operations.
For fiscal year 2012, the Company anticipates total capital expenditures in the range of $900 to $1,045 million. The new guidance represents a decrease from the previous forecast of $950 to $1,085 million and is largely a result of the Company’s response to the significant decline in natural gas prices. The Company’s capital expenditures for fiscal 2013 will be in the range of $685 to $860 million.
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