National Fuel Reports Third Quarter Earnings and Provides Initial Guidance for Fiscal 2019
WILLIAMSVILLE, N.Y., Aug. 02, 2018 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE: NFG) today announced consolidated results for the third quarter of its 2018 fiscal year and for the nine months ended June 30, 2018. The Company also provided preliminary earnings and operational guidance for fiscal 2019.
FISCAL 2018 THIRD QUARTER SUMMARY
• GAAP earnings of $63.0 million, or $0.73 per share, compared to $59.7 million, or $0.69 per share, in the prior year• Consolidated Adjusted EBITDA of $168.6 million (non-GAAP reconciliation on page 23)• Pipeline & Storage segment operating income of $35.5 million, up 6% on higher operating revenues• Net natural gas and oil production of 44.6 Bcfe, up 4% from the prior year• Average natural gas prices, after the impact of hedging, of $2.43 per Mcf, down $0.51 per Mcf from the prior year• Average oil prices, after the impact of hedging, of $58.74 per Bbl, up $5.72 per Bbl from the prior year• Reduction in federal tax rate from the 2017 Tax Reform Act resulted in a net earnings benefit of $11.2 million, or $0.14 per share for the quarter, helping to offset the expected decline in realized natural gas prices
GUIDANCE UPDATE
• Raising and tightening FY18 earnings guidance to $3.30 to $3.40 per share (see non-GAAP discussion on page 5)• Initiating FY19 earnings guidance at $3.30 to $3.60 per share, at the midpoint a $0.10 per share increase over FY18• FY19 production of 210 to 230 Bcfe, a 24 percent increase over estimated FY18 production• Firm contracts in place for more than 85% of FY19 Appalachian natural gas production at attractive pricing• FY19 capital expenditures are expected to be in the range of $745 million to $845 million• At midpoint of expected guidance ranges, substantially all of FY19 capital expenditures are expected to be funded by internally generated cash flows
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Reported GAAP Earnings | $ | 63,025 | $ | 59,714 | $ | 353,527 | $ | 237,906 | ||||||||
| Items impacting comparability | ||||||||||||||||
| Remeasurement of deferred income taxesunder 2017 Tax Reform | — | — | (107,000 | ) | — | |||||||||||
| Adjusted Operating Results | $ | 63,025 | $ | 59,714 | $ | 246,527 | $ | 237,906 | ||||||||
| Reported GAAP Earnings per share | $ | 0.73 | $ | 0.69 | $ | 4.09 | $ | 2.77 | ||||||||
| Items impacting comparability | ||||||||||||||||
| Remeasurement of deferred income taxesunder 2017 Tax Reform | — | — | (1.24 | ) | — | |||||||||||
| Adjusted Operating Results per share | $ | 0.73 | $ | 0.69 | $ | 2.85 | $ | 2.77 | ||||||||
MANAGEMENT COMMENTS
Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: “We had an excellent fiscal third quarter with each of our business segments achieving solid financial results. Typically a quarter where we expect lower earnings due to the impact of seasonality on our Utility segment, consolidated results surpassed our forecast on better than projected commodity pricing realized on Seneca’s production, higher Pipeline & Storage revenues, and lower operating expenses across the system.
“Operationally, we continue to execute on our long-term strategic plans to grow our upstream and midstream businesses in tandem and pull forward the value of our integrated asset position in Appalachia. Seneca added a third drilling rig in May to focus more development in the Utica shale where results continue to impress. As we look forward into fiscal 2019, our Gathering segment will benefit from Seneca’s increase in production, a majority of which is contracted to be sold at attractive pricing. Coupled with the stability of our utility and pipeline businesses, we expect to continue to generate a predictable and growing base of earnings and cash flows that will add value for our shareholders and position us to achieve our long-term plans for organic growth across our integrated businesses.”
DISCUSSION OF RESULTS BY SEGMENT
The following discussion of the earnings of each operating segment is summarized in a tabular form on pages 8 through 11 of this report. It may be helpful to refer to those tables while reviewing this discussion. Note that management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, interest and other income, 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 natural gas and oil reserves, primarily in Pennsylvania and California.
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||||
| Net Income | $ | 27,817 | $ | 30,123 | $ | (2,306 | ) | $ | 161,052 | $ | 98,972 | $ | 62,080 | ||||||||||
| Net Income Per Share (Diluted) | $ | 0.32 | $ | 0.35 | $ | (0.03 | ) | $ | 1.86 | $ | 1.15 | $ | 0.71 | ||||||||||
| Adjusted EBITDA | $ | 76,935 | $ | 89,229 | $ | (12,294 | ) | $ | 235,199 | $ | 285,675 | $ | (50,476 | ) | |||||||||
The Exploration and Production segment’s third quarter earnings declined $2.3 million, as the positive impacts of higher natural gas production, better realized crude oil prices, lower lease operating and transportation (“LOE”) expenses, and a lower effective income tax rate were negatively impacted by lower realized natural gas prices and higher depreciation, depletion and amortization (“DD&A”) expense.
Seneca’s third quarter net production was 44.6 billion cubic feet equivalent (“Bcfe”), an increase of 1.9 Bcfe from the prior year. Natural gas production increased 2.3 billion cubic feet (“Bcf”), or 6 percent, due primarily to production from new Marcellus and Utica wells completed and connected to sales in the WDA-Clermont and EDA-Lycoming development areas after adding a second drilling rig in Appalachia in the third quarter of 2017. Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.43 per thousand cubic feet ("Mcf"), a decrease of $0.51 per Mcf from the prior year. The decline in Seneca’s average realized natural gas price is primarily attributable to the expiration of physical firm sales and financial hedge contracts over the past 12 months that had favorable pricing relative to firm sales and hedges settled in the current quarter.
Seneca’s oil production decreased 69 thousand barrels ("Mbbl") versus the prior year due largely to the expected reduction in California production after the sale of Seneca’s Sespe properties, which closed on May 1, 2018. Seneca's average realized oil price, after the impact of hedging, was $58.74 per barrel ("Bbl"), an increase of $5.72 per Bbl. The improvement in oil price realizations was due primarily to higher market prices for West Texas Intermediate (WTI) crude oil during the quarter and stronger price differentials relative to WTI at local sales points in California.
LOE expense for the quarter decreased $3.0 million due to lower operating costs in California following the sale of Seneca’s Sespe properties and lower workover costs combined with a reduction in costs to operate compression facilities in Tioga County, Pennsylvania, which were acquired by the Gathering segment from Seneca in the second quarter of 2018. These decreases were partially offset by higher gathering expenses in Appalachia due to the increase in natural gas production. On a per unit of production basis, LOE expense was $0.84 per thousand cubic feet equivalent (“Mcfe”), a decrease of $0.11 per Mcfe from the prior year.
DD&A expense increased $3.8 million due to the increase in production and a higher per unit depletion rate. The depletion rate for the quarter increased by $0.06 per Mcfe to $0.70 per Mcfe due mainly to a higher depletable fixed asset balance at June 30, 2018, as Seneca has increased development activity in Appalachia over the past year.
The decrease in the segment’s effective tax rate was mostly due to the 2017 Tax Reform Act, which reduced the Company’s federal statutory corporate tax rate in fiscal 2018 and benefited Seneca’s third quarter earnings by $6.2 million, or $0.07 per share.
See page 20 for additional comparative information on the Exploration & Production segment’s production, realized pricing and per unit operating costs.
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 | Nine Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||||
| Net Income | $ | 20,723 | $ | 16,031 | $ | 4,692 | $ | 81,909 | $ | 54,656 | $ | 27,253 | |||||||||||
| Net Income Per Share (Diluted) | $ | 0.24 | $ | 0.19 | $ | 0.05 | $ | 0.95 | $ | 0.64 | $ | 0.31 | |||||||||||
| Adjusted EBITDA | $ | 46,428 | $ | 44,163 | $ | 2,265 | $ | 147,342 | $ | 141,279 | $ | 6,063 | |||||||||||
The Pipeline and Storage segment’s third quarter earnings increased $4.7 million due primarily to higher operating revenues, lower interest expense, and a lower effective income tax rate. Operating revenues increased $2.2 million, or 3 percent, versus the prior year due to new demand charges for transportation service from Supply Corporation’s Line D Expansion project, which was placed in service on November 1, 2017, an increase in storage revenues resulting from Supply Corporation’s acquisition of the remaining interest in a jointly owned storage field during the quarter, additional revenues from short-term transportation contracts, and surcharge revenues relating to Supply Corporation’s greenhouse gas and pipeline safety system enhancements that also went into effect in November 2017.
The $0.8 million decrease in interest expense was primarily due to a lower weighted average interest rate on long-term debt. The interest rate decreased following the Company’s issuance of 3.95 percent notes to repay 6.5 percent notes in October 2017. The decrease in the effective income tax rate was due primarily to the 2017 Tax Reform Act, which reduced the Company’s federal statutory corporate tax rate and benefited the segment’s earnings by $3.0 million, or $0.04 per share.
Gathering Segment
The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s subsidiary limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region which currently delivers Seneca’s gross Appalachian production to the interstate pipeline system.
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||||
| Net Income | $ | 11,566 | $ | 10,107 | $ | 1,459 | $ | 68,736 | $ | 31,373 | $ | 37,363 | |||||||||||
| Net Income Per Share (Diluted) | $ | 0.13 | $ | 0.12 | $ | 0.01 | $ | 0.80 | $ | 0.37 | $ | 0.43 | |||||||||||
| Adjusted EBITDA | $ | 23,008 | $ | 23,901 | $ | (893 | ) | $ | 67,877 | $ | 73,174 | $ | (5,297 | ) | |||||||||
The $1.5 million increase in the Gathering segment’s third quarter earnings was due mainly to higher revenues and a lower effective income tax rate, offset partially by an increase in operation and maintenance ("O&M") expense. Operating revenues increased $1.0 million, or 4 percent, versus the prior year due primarily to a 2.6 Bcf increase in throughput from Seneca’s Appalachian natural gas production.
The $1.9 million increase in O&M expense was due largely to the operation of new compression facilities along the Covington gathering system that were acquired from affiliate Seneca in March 2018, an increase in facilities and maintenance activity at the Clermont gathering system, and a non-recurring loss recognized on the sale of pipe materials. The decrease in the effective income tax rate was due primarily to the 2017 Tax Reform Act, which reduced the Company’s federal statutory corporate tax rate and benefited the segment’s earnings by $2.4 million, or $0.03 per share.
Downstream Businesses
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 | Nine Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||||
| Net Income | $ | 3,930 | $ | 4,348 | $ | (418 | ) | $ | 58,283 | $ | 51,103 | $ | 7,180 | ||||||||||
| Net Income Per Share (Diluted) | $ | 0.05 | $ | 0.05 | $ | — | $ | 0.67 | $ | 0.59 | $ | 0.08 | |||||||||||
| Adjusted EBITDA | $ | 24,366 | $ | 25,322 | $ | (956 | ) | $ | 137,364 | $ | 139,232 | $ | (1,868 | ) | |||||||||
The Utility segment’s third quarter earnings decreased $0.4 million as the positive impact of colder weather was more than offset by higher O&M expense and the impact of tax reform. Weather in Distribution’s Pennsylvania service territory was 17 percent colder than last year, resulting in higher residential and transportation customer throughput and revenues. The impact of weather variations on earnings in Distribution’s New York service territory is largely mitigated by that jurisdiction’s weather normalization clause. O&M expense increased $1.3 million due mainly to higher personnel costs, primarily pension costs. The net impact of the 2017 Tax Reform Act, including a $0.5 million customer refund provision ($0.4 million after-tax) that reduced the segment’s operating revenues, lowered third quarter earnings by $0.3 million.
Energy Marketing Segment
The Energy Marketing segment's operations are carried out by National Fuel Resources, Inc. (“NFR”). NFR markets natural gas to industrial, wholesale, commercial, public authority, and residential customers primarily in western and central New York and northwestern Pennsylvania, offering competitively priced natural gas to its customers.
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||||
| Net Income / (Loss) | $ | (190 | ) | $ | (564 | ) | $ | 374 | $ | 1,434 | $ | 2,122 | $ | (688 | ) | ||||||||
| Net Income / (Loss) Per Share (Diluted) | $ | — | $ | (0.01 | ) | $ | 0.01 | $ | 0.02 | $ | 0.02 | $ | — | ||||||||||
| Adjusted EBITDA | $ | (419 | ) | $ | (1,017 | ) | $ | 598 | $ | 2,187 | $ | 3,213 | $ | (1,026 | ) | ||||||||
The Energy Marketing segment’s third quarter earnings increased $0.4 million due largely to higher margins (operating revenues less purchased gas expenses). NFR’s customer margins were positively impacted by weaker natural gas prices at local purchase points relative to NYMEX-based customer sales contracts and higher volumes due to colder weather.
Corporate and All Other
For the third quarter of fiscal 2018, the Corporate and All Other category had a net loss of $0.8 million compared to a net loss of $0.3 million in the prior year. The increase in the net loss was primarily attributable to higher income tax expense offset partially by an increase in sales generated by the Company’s timber operations.
GUIDANCE
The Company is raising and tightening its earnings guidance for fiscal 2018 to a range of $3.30 to $3.40 per share to reflect the impact of actual results for the nine months ended June 30, 2018, and updates to key forecast assumptions, including revisions to the expected consolidated effective tax rate and the Exploration and Production segment’s forecasted production, oil pricing, and operating expense assumptions, as outlined in the table below.
The revised fiscal 2018 earnings guidance does not include the impact of the remeasurement of deferred income taxes resulting from the 2017 Tax Reform Act, which reduced the Company’s consolidated income tax expense and benefited earnings for the nine months ended June 30, 2018, by $107.0 million, or $1.24 per share. While the Company expects to record additional adjustments to its deferred income taxes as a result of the 2017 Tax Reform Act during the last three months of fiscal 2018, the amounts of these and other potential adjustments are not reasonably determinable at this time. The final determination of the impact of the income tax effects of certain items will require additional analysis and further interpretation of the 2017 Tax Reform Act from yet to be issued U.S. Treasury regulations, state income tax guidance, federal and state regulatory guidance, and possible technical corrections. Some or all of these factors may be significant. Because the amounts of final adjustments are not reasonably determinable at this time, the Company is unable to provide earnings guidance other than on a non-GAAP basis that excludes the impact of the remeasurement of deferred income taxes and other potential adjustments.
The Company is also initiating preliminary guidance for fiscal 2019. National Fuel is projecting that its fiscal 2019 earnings will be within a range of $3.30 to $3.60 per share, or $3.45 per share at the midpoint of the range. The $0.10 per share increase from the fiscal 2018 earnings guidance midpoint is being driven primarily by an increase in Seneca’s forecasted natural gas production and the associated impact on Gathering segment revenues, offset partially by lower expected natural gas price realizations after hedging and lower Pipeline & Storage segment revenues.
Seneca’s fiscal 2019 net production is expected to be in the range of 210 to 230 Bcfe, an increase of 24 percent from fiscal 2018 at the midpoint of the respective ranges. Seneca added a third drilling rig in Appalachia this past May, which is the main driver of the expected 42.5 Bcf increase year over year. The midpoint of the production range does not assume any price related curtailments. The increase in Seneca’s production is also expected to generate higher throughput and revenues for the Company’s Gathering segment. At the midpoint of the range, Gathering revenues are forecasted to increase by approximately $25 million, or 23 percent, to $135 million for fiscal 2019.
Seneca has approximately 176 Bcf, or more than 85 percent of its fiscal 2019 projected Appalachian natural gas production sold under physical firm contracts with third parties, leaving a modest amount of production exposed to local spot prices for the year. Seneca's net-back pricing on approximately 140 Bcf of the 176 Bcf of production sold firm is currently locked-in using a combination of financial hedges and fixed-price contracts that achieve a certain weighted average realized price of $2.44 per Mcf for the year. Assuming NYMEX natural gas pricing of $2.75 per MMBtu and including the impact of local spot pricing and firm transportation costs, Seneca expects its fiscal 2019 net realized gas price after hedging to be approximately $2.35 per Mcf, which is a decrease of $0.15 per Mcf from Seneca’s expected realized pricing after hedging of $2.50 per Mcf for fiscal 2018.
Seneca’s oil operations in California are expected to produce approximately 17 Bcfe in fiscal 2019, relatively flat versus fiscal 2018 excluding production from the California Sespe properties sold in May 2018. Seneca is approximately 72 percent hedged on an expected 2.5 million Bbls of oil production in fiscal 2019 at an average hedge price of $57.57 per Bbl.
The Company expects Pipeline & Storage segment revenues to decrease from approximately $295 million in fiscal 2018 to $285 million in fiscal 2019. The $10 million reduction reflects the anticipated roll-off of a significant counter-flow, legacy contract on the Company’s Empire Pipeline system in December 2018 (as discussed on the Company’s first quarter 2018 earnings teleconference). In response, Empire Pipeline filed a rate case in June 2018 with the Federal Energy Regulatory Commission (“FERC”). The requested increase in transportation rates, which is expected to partially offset the loss of the contract revenues, is anticipated to be effective January 1, 2019, subject to refund.
Consolidated capital expenditures in fiscal 2019 are expected to be in a range of $745 million to $845 million, a $180 million increase from the midpoint of the Company’s fiscal 2018 capital expenditure guidance. The primary drivers of the increase are Seneca’s development activity in Appalachia, where the Company plans to operate three drilling rigs for the entirety of the fiscal year, coupled with the impact of the completion of the 75 well Marcellus shale joint development agreement (“JDA”) earlier in fiscal 2018. Seneca’s JDA partner contributed $17 million in initial conveyance proceeds and an additional $25 million for its 80 percent working interest to complete the final 12 JDA wells, which offset Seneca’s fiscal 2018 total capital expenditures and is reflected in the fiscal 2018 guidance range of $350 million to $370 million. Pipeline & Storage segment capital expenditures are expected to increase by $50 million at the midpoint of the range due to higher spending on expansion projects and system modernization. At the midpoint of the fiscal 2019 guidance ranges, substantially all of the Company's capital expenditures are expected to be funded by internally generated cash flows.
Additional details on the Company's forecast assumptions and business segment guidance for fiscal 2019 are outlined in the table below.
| Updated FY 2018 Guidance | Preliminary FY 2019 Guidance | ||||
| Consolidated Earnings per Share (1) | $3.30 to $3.40 | $3.30 to $3.60 | |||
| Consolidated Effective Tax Rate (1) | ~25% | ~25% | |||
| Capital Expenditures (Millions) | |||||
| Exploration and Production (2) | $350 - $370 | $460 - $500 | |||
| Pipeline and Storage | $100 - $120 | $140 - $180 | |||
| Gathering | $55 - $65 | $55 - $65 | |||
| Utility | $80 - $90 | $90 - $100 | |||
| Consolidated Capital Expenditures | $585 - $645 | $745 - $845 | |||
| Exploration & Production Segment Guidance | |||||
| Commodity Price Assumptions | |||||
| NYMEX natural gas price | $2.75 /MMBtu | $2.75 /MMBtu | |||
| Appalachian basin spot price (winter | summer) | $2.00 /MMBtu | $2.40 /MMBtu | $2.00 /MMBtu | |||
| NYMEX (WTI) crude oil price | $65.00 /Bbl | $65.00 /Bbl | |||
| California oil price (% of WTI) | 100% | 100% | |||
| Production (Bcfe) | |||||
| East Division - Appalachia | 157 to 162 | 193 to 213 | |||
| West Division - California | ~ 18 | ~ 17 | |||
| Total Production | 175 to 180 | 210 to 230 | |||
| E&P Operating Costs ($/Mcfe) | |||||
| LOE | $0.90 - $0.95 | $0.85 - $0.90 | |||
| G&A | $0.30 - $0.35 | $0.25 - $0.35 | |||
| DD&A | ~ $0.70 | $0.70 - $0.75 | |||
| Other Business Segment Guidance (Millions) | |||||
| Gathering Segment Revenues | ~$110 | $130 - $140 | |||
| Pipeline and Storage Segment Revenues | ~$295 | ~$285 | |||
(1) FY18 excludes earnings impact of the remeasurement of deferred income taxes resulting from the 2017 Tax Reform Act.(2) FY18 net of proceeds received from joint development partner for working interest in joint development wells.
EARNINGS TELECONFERENCE
The Company will host a conference call on Friday, August 3, 2018, at 11 a.m. Eastern Time to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the NFG Investor Relations News & Events page at National Fuel’s website at investor.nationalfuelgas.com. For those without Internet access, audio access is also provided by dialing (toll-free) 833-287-0795, using conference ID number “1984229.” For those unable to listen to the live conference call, an audio replay will be available approximately two hours following the teleconference at the same website link and by phone at (toll-free) 800-585-8367 using conference ID number “1984229.” Both the webcast and a telephonic replay will be available until the close of business on Friday, August 10, 2018.
National Fuel is an integrated energy company reporting financial results for five operating segments: Exploration and Production, Pipeline and Storage, Gathering, Utility, and Energy Marketing. Additional information about National Fuel is available at www.nationalfuelgas.com.
| Analyst Contact: | Kenneth E. Webster | 716-857-7067 |
| Media Contact: | Karen L. Merkel | 716-857-7654 |
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: delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; 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; 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; changes in the price of natural gas or oil; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, 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; changes in price differentials between similar quantities of natural gas or oil 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; other changes in price differentials between similar quantities of natural gas or oil 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 oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; 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; changes in economic conditions, including 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 creditworthiness or performance of the Company’s key suppliers, customers and counterparties; the impact of potential information technology, cybersecurity or data security breaches; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war; 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.
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS | |||||||||||||||||||||||||||
| QUARTER ENDED JUNE 30, 2018 | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| Upstream | Midstream Businesses | Downstream Businesses | |||||||||||||||||||||||||
| Exploration & | Pipeline & | Energy | Corporate/ | ||||||||||||||||||||||||
| (Thousands of Dollars) | Production | Storage | Gathering | Utility | Marketing | All Other | Consolidated* | ||||||||||||||||||||
| Third quarter 2017 GAAP earnings | $ | 30,123 | $ | 16,031 | $ | 10,107 | $ | 4,348 | $ | (564 | ) | $ | (331 | ) | $ | 59,714 | |||||||||||
| Earnings drivers*** | |||||||||||||||||||||||||||
| Higher (lower) crude oil prices | 2,236 | 2,236 | |||||||||||||||||||||||||
| Higher (lower) natural gas prices | (13,665 | ) | (13,665 | ) | |||||||||||||||||||||||
| Higher (lower) natural gas production | 4,464 | 4,464 | |||||||||||||||||||||||||
| Higher (lower) crude oil production | (2,361 | ) | (2,361 | ) | |||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | 1,954 | 1,954 | |||||||||||||||||||||||||
| Lower (higher) depreciation / depletion | (2,501 | ) | (203 | ) | (283 | ) | (2,987 | ) | |||||||||||||||||||
| Higher (lower) transportation and storage revenues | 1,342 | 1,342 | |||||||||||||||||||||||||
| Higher (lower) gathering and processing revenues | 644 | 644 | |||||||||||||||||||||||||
| Lower (higher) other operating expenses | (625 | ) | (1,224 | ) | (980 | ) | (2,829 | ) | |||||||||||||||||||
| Colder weather | 659 | 659 | |||||||||||||||||||||||||
| Higher (lower) margins | 304 | 623 | 927 | ||||||||||||||||||||||||
| Higher (lower) AFUDC** | (113 | ) | (113 | ) | |||||||||||||||||||||||
| Lower (higher) interest expense | 534 | 534 | |||||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 1,730 | (956 | ) | 774 | |||||||||||||||||||||||
| Impact of 2017 Tax Reform Act | |||||||||||||||||||||||||||
| Impact of tax rate change on current period earnings | 6,154 | 3,046 | 2,422 | 77 | (161 | ) | 11,538 | ||||||||||||||||||||
| Refund provision on tax rate change | (358 | ) | (358 | ) | |||||||||||||||||||||||
| All other / rounding | 308 | (117 | ) | (180 | ) | 184 | 70 | 287 | 552 | ||||||||||||||||||
| Third quarter 2018 GAAP earnings | $ | 27,817 | $ | 20,723 | $ | 11,566 | $ | 3,930 | $ | (190 | ) | $ | (821 | ) | $ | 63,025 | |||||||||||
| * Amounts do not reflect intercompany eliminations | |||||||||||||||||||||||||||
| ** AFUDC = Allowance for Funds Used During Construction | |||||||||||||||||||||||||||
| *** Earnings drivers have been calculated using a 35% federal statutory rate. The impact of the change to a blended year 24.5% federal statutory rate is broken out separately under the caption "Impact of 2017 Tax Reform Act." | |||||||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE | ||||||||||||||||||||||||||||
| QUARTER ENDED JUNE 30, 2018 | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| Upstream | Midstream Businesses | Downstream Businesses | ||||||||||||||||||||||||||
| Exploration & | Pipeline & | Energy | Corporate/ | |||||||||||||||||||||||||
| Production | Storage | Gathering | Utility | Marketing | All Other | Consolidated* | ||||||||||||||||||||||
| Third quarter 2017 GAAP earnings | $ | 0.35 | $ | 0.19 | $ | 0.12 | $ | 0.05 | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.69 | ||||||||||||
| Earnings drivers*** | ||||||||||||||||||||||||||||
| Higher (lower) crude oil prices | 0.03 | 0.03 | ||||||||||||||||||||||||||
| Higher (lower) natural gas prices | (0.16 | ) | (0.16 | ) | ||||||||||||||||||||||||
| Higher (lower) natural gas production | 0.05 | 0.05 | ||||||||||||||||||||||||||
| Higher (lower) crude oil production | (0.03 | ) | (0.03 | ) | ||||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | 0.02 | 0.02 | ||||||||||||||||||||||||||
| Lower (higher) depreciation / depletion | (0.03 | ) | — | — | (0.03 | ) | ||||||||||||||||||||||
| Higher (lower) transportation and storage revenues | 0.02 | 0.02 | ||||||||||||||||||||||||||
| Higher (lower) gathering and processing revenues | 0.01 | 0.01 | ||||||||||||||||||||||||||
| Lower (higher) other operating expenses | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.03 | ) | ||||||||||||||||||||
| Colder weather | 0.01 | 0.01 | ||||||||||||||||||||||||||
| Higher (lower) margins | — | 0.01 | 0.01 | |||||||||||||||||||||||||
| Higher (lower) AFUDC** | — | — | ||||||||||||||||||||||||||
| Lower (higher) interest expense | 0.01 | 0.01 | ||||||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 0.02 | (0.01 | ) | 0.01 | ||||||||||||||||||||||||
| Impact of 2017 Tax Reform Act | ||||||||||||||||||||||||||||
| Impact of tax rate change on current period earnings | 0.07 | 0.04 | 0.03 | — | — | 0.14 | ||||||||||||||||||||||
| Refund provision on tax rate change | — | — | ||||||||||||||||||||||||||
| All other / rounding | 0.01 | (0.02 | ) | (0.02 | ) | — | 0.01 | — | (0.02 | ) | ||||||||||||||||||
| Third quarter 2018 GAAP earnings | $ | 0.32 | $ | 0.24 | $ | 0.13 | $ | 0.05 | $ | — | $ | (0.01 | ) | $ | 0.73 | |||||||||||||
| * Amounts do not reflect intercompany eliminations | ||||||||||||||||||||||||||||
| ** AFUDC = Allowance for Funds Used During Construction | ||||||||||||||||||||||||||||
| *** Earnings drivers have been calculated using a 35% federal statutory rate. The impact of the change to a blended year 24.5% federal statutory rate is broken out separately under the caption "Impact of 2017 Tax Reform Act." | ||||||||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS | |||||||||||||||||||||||||||
| NINE MONTHS ENDED JUNE 30, 2018 | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| Upstream | Midstream Businesses | Downstream Businesses | |||||||||||||||||||||||||
| Exploration & | Pipeline & | Energy | Corporate/ | ||||||||||||||||||||||||
| (Thousands of Dollars) | Production | Storage | Gathering | Utility | Marketing | All Other | Consolidated* | ||||||||||||||||||||
| Nine months ended June 30, 2017 GAAP earnings | $ | 98,972 | $ | 54,656 | $ | 31,373 | $ | 51,103 | $ | 2,122 | $ | (320 | ) | $ | 237,906 | ||||||||||||
| Earnings drivers*** | |||||||||||||||||||||||||||
| Higher (lower) crude oil prices | 6,770 | 6,770 | |||||||||||||||||||||||||
| Higher (lower) natural gas prices | (31,640 | ) | (31,640 | ) | |||||||||||||||||||||||
| Higher (lower) natural gas production | (3,088 | ) | (3,088 | ) | |||||||||||||||||||||||
| Higher (lower) crude oil production | (4,449 | ) | (4,449 | ) | |||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | 1,171 | 1,171 | |||||||||||||||||||||||||
| Lower (higher) depreciation / depletion | (3,480 | ) | (1,086 | ) | (488 | ) | (479 | ) | (5,533 | ) | |||||||||||||||||
| Higher (lower) transportation and storage revenues | 2,126 | 2,126 | |||||||||||||||||||||||||
| Higher (lower) gathering and processing revenues | (2,126 | ) | (2,126 | ) | |||||||||||||||||||||||
| Lower (higher) other operating expenses | (1,635 | ) | 2,283 | (1,299 | ) | (505 | ) | 234 | (922 | ) | |||||||||||||||||
| Lower (higher) property, franchise and other taxes | (439 | ) | (439 | ) | |||||||||||||||||||||||
| Impact of new rates | 2,789 | 2,789 | |||||||||||||||||||||||||
| Colder weather | 5,621 | 5,621 | |||||||||||||||||||||||||
| Higher (lower) margins | (901 | ) | 1,634 | 733 | |||||||||||||||||||||||
| Higher (lower) AFUDC** | (656 | ) | (656 | ) | |||||||||||||||||||||||
| Lower (higher) interest expense | 1,143 | 772 | 1,915 | ||||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 3,871 | (2,201 | ) | (1,381 | ) | 289 | |||||||||||||||||||||
| Impact of 2017 Tax Reform Act | |||||||||||||||||||||||||||
| Impact of tax rate change on current period earnings | 17,401 | 9,967 | 7,091 | 10,726 | 263 | (322 | ) | 45,126 | |||||||||||||||||||
| Refund provision on tax rate change | (8,678 | ) | (8,678 | ) | |||||||||||||||||||||||
| Remeasurement of deferred income taxes under2017 Tax Reform | 76,510 | 14,100 | 34,500 | (359 | ) | (17,751 | ) | 107,000 | |||||||||||||||||||
| All other / rounding | 649 | (185 | ) | (315 | ) | (1,344 | ) | 75 | 732 | (388 | ) | ||||||||||||||||
| Nine months ended June 30, 2018 GAAP earnings | $ | 161,052 | $ | 81,909 | $ | 68,736 | $ | 58,283 | $ | 1,434 | $ | (17,887 | ) | $ | 353,527 | ||||||||||||
| * Amounts do not reflect intercompany eliminations | |||||||||||||||||||||||||||
| ** AFUDC = Allowance for Funds Used During Construction | |||||||||||||||||||||||||||
| *** Earnings drivers have been calculated using a 35% federal statutory rate. The impact of the change to a blended year 24.5% federal statutory rate is broken out separately under the caption "Impact of 2017 Tax Reform Act." | |||||||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE | ||||||||||||||||||||||||||||
| NINE MONTHS ENDED JUNE 30, 2018 | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| Upstream | Midstream Businesses | Downstream Businesses | ||||||||||||||||||||||||||
| Exploration & | Pipeline & | Energy | Corporate/ | |||||||||||||||||||||||||
| Production | Storage | Gathering | Utility | Marketing | All Other | Consolidated* | ||||||||||||||||||||||
| Nine months ended June 30, 2017 GAAP earnings | $ | 1.15 | $ | 0.64 | $ | 0.37 | $ | 0.59 | $ | 0.02 | $ | — | $ | 2.77 | ||||||||||||||
| Earnings drivers*** | ||||||||||||||||||||||||||||
| Higher (lower) crude oil prices | 0.08 | 0.08 | ||||||||||||||||||||||||||
| Higher (lower) natural gas prices | (0.37 | ) | (0.37 | ) | ||||||||||||||||||||||||
| Higher (lower) natural gas production | (0.04 | ) | (0.04 | ) | ||||||||||||||||||||||||
| Higher (lower) crude oil production | (0.05 | ) | (0.05 | ) | ||||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | 0.01 | 0.01 | ||||||||||||||||||||||||||
| Lower (higher) depreciation / depletion | (0.04 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.07 | ) | ||||||||||||||||||
| Higher (lower) transportation and storage revenues | 0.02 | 0.02 | ||||||||||||||||||||||||||
| Higher (lower) gathering and processing revenues | (0.02 | ) | (0.02 | ) | ||||||||||||||||||||||||
| Lower (higher) other operating expenses | (0.02 | ) | 0.03 | (0.02 | ) | (0.01 | ) | — | (0.02 | ) | ||||||||||||||||||
| Lower (higher) property, franchise and other taxes | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||||||
| Impact of new rates | 0.03 | 0.03 | ||||||||||||||||||||||||||
| Colder weather | 0.07 | 0.07 | ||||||||||||||||||||||||||
| Higher (lower) margins | (0.01 | ) | 0.02 | 0.01 | ||||||||||||||||||||||||
| Higher (lower) AFUDC** | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||||||
| Lower (higher) interest expense | 0.01 | 0.01 | 0.02 | |||||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 0.04 | (0.03 | ) | (0.02 | ) | (0.01 | ) | |||||||||||||||||||||
| Impact of 2017 Tax Reform Act | ||||||||||||||||||||||||||||
| Impact of tax rate change on current period earnings | 0.20 | 0.12 | 0.08 | 0.12 | — | — | 0.52 | |||||||||||||||||||||
| Refund provision on tax rate change | (0.10 | ) | (0.10 | ) | ||||||||||||||||||||||||
| Remeasurement of deferred income taxes under2017 Tax Reform | 0.89 | 0.16 | 0.40 | — | (0.21 | ) | 1.24 | |||||||||||||||||||||
| All other / rounding | 0.01 | — | — | (0.01 | ) | 0.01 | 0.01 | 0.02 | ||||||||||||||||||||
| Nine months ended June 30, 2018 GAAP earnings | $ | 1.86 | $ | 0.95 | $ | 0.80 | $ | 0.67 | $ | 0.02 | $ | (0.21 | ) | $ | 4.09 | |||||||||||||
| * Amounts do not reflect intercompany eliminations | ||||||||||||||||||||||||||||
| ** AFUDC = Allowance for Funds Used During Construction | ||||||||||||||||||||||||||||
| *** Earnings drivers have been calculated using a 35% federal statutory rate. The impact of the change to a blended year 24.5% federal statutory rate is broken out separately under the caption "Impact of 2017 Tax Reform Act." | ||||||||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||
| (Thousands of Dollars, except per share amounts) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| SUMMARY OF OPERATIONS | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Operating Revenues: | ||||||||||||||||
| Utility and Energy Marketing Revenues | $ | 154,088 | $ | 146,360 | $ | 719,234 | $ | 663,029 | ||||||||
| Exploration and Production and Other Revenues | 137,492 | 151,925 | 425,811 | 473,617 | ||||||||||||
| Pipeline and Storage and Gathering Revenues | 51,332 | 50,083 | 158,428 | 156,298 | ||||||||||||
| 342,912 | 348,368 | 1,303,473 | 1,292,944 | |||||||||||||
| Operating Expenses: | ||||||||||||||||
| Purchased Gas | 52,211 | 46,135 | 322,854 | 264,349 | ||||||||||||
| Operation and Maintenance: | ||||||||||||||||
| Utility and Energy Marketing | 45,618 | 44,467 | 158,397 | 158,796 | ||||||||||||
| Exploration and Production and Other | 31,141 | 34,098 | 106,268 | 102,153 | ||||||||||||
| Pipeline and Storage and Gathering | 24,770 | 23,250 | 67,450 | 69,016 | ||||||||||||
| Property, Franchise and Other Taxes | 20,595 | 21,447 | 64,245 | 64,368 | ||||||||||||
| Depreciation, Depletion and Amortization | 60,817 | 55,617 | 177,802 | 168,812 | ||||||||||||
| 235,152 | 225,014 | 897,016 | 827,494 | |||||||||||||
| Operating Income | 107,760 | 123,354 | 406,457 | 465,450 | ||||||||||||
| Other Income (Expense): | ||||||||||||||||
| Interest Income | 1,632 | 853 | 4,907 | 2,844 | ||||||||||||
| Other Income | 999 | 1,370 | 3,492 | 4,728 | ||||||||||||
| Interest Expense on Long-Term Debt | (27,177 | ) | (29,225 | ) | (82,412 | ) | (87,241 | ) | ||||||||
| Other Interest Expense | (1,006 | ) | (846 | ) | (2,742 | ) | (2,680 | ) | ||||||||
| Income Before Income Taxes | 82,208 | 95,506 | 329,702 | 383,101 | ||||||||||||
| Income Tax Expense (Benefit) | 19,183 | 35,792 | (23,825 | ) | 145,195 | |||||||||||
| Net Income Available for Common Stock | $ | 63,025 | $ | 59,714 | $ | 353,527 | $ | 237,906 | ||||||||
| Earnings Per Common Share | ||||||||||||||||
| Basic | $ | 0.73 | $ | 0.70 | $ | 4.12 | $ | 2.79 | ||||||||
| Diluted | $ | 0.73 | $ | 0.69 | $ | 4.09 | $ | 2.77 | ||||||||
| Weighted Average Common Shares: | ||||||||||||||||
| Used in Basic Calculation | 85,930,289 | 85,422,313 | 85,789,279 | 85,315,154 | ||||||||||||
| Used in Diluted Calculation | 86,501,194 | 86,064,464 | 86,370,900 | 85,950,742 | ||||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||
| AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| June 30, | September 30, | ||||||
| (Thousands of Dollars) | 2018 | 2017 | |||||
| ASSETS | |||||||
| Property, Plant and Equipment | $ | 10,254,976 | $ | 9,945,560 | |||
| Less - Accumulated Depreciation, Depletion and Amortization | 5,411,746 | 5,271,486 | |||||
| Net Property, Plant and Equipment | 4,843,230 | 4,674,074 | |||||
| Current Assets: | |||||||
| Cash and Temporary Cash Investments | 313,307 | 555,530 | |||||
| Hedging Collateral Deposits | 2,283 | 1,741 | |||||
| Receivables - Net | 151,005 | 112,383 | |||||
| Unbilled Revenue | 18,930 | 22,883 | |||||
| Gas Stored Underground | 16,090 | 35,689 | |||||
| Materials and Supplies - at average cost | 34,693 | 33,926 | |||||
| Unrecovered Purchased Gas Costs | — | 4,623 | |||||
| Other Current Assets | 52,690 | 51,505 | |||||
| Total Current Assets | 588,998 | 818,280 | |||||
| Other Assets: | |||||||
| Recoverable Future Taxes | 115,688 | 181,363 | |||||
| Unamortized Debt Expense | 7,587 | 1,159 | |||||
| Other Regulatory Assets | 171,792 | 174,433 | |||||
| Deferred Charges | 37,349 | 30,047 | |||||
| Other Investments | 130,744 | 125,265 | |||||
| Goodwill | 5,476 | 5,476 | |||||
| Prepaid Post-Retirement Benefit Costs | 61,371 | 56,370 | |||||
| Fair Value of Derivative Financial Instruments | 11,760 | 36,111 | |||||
| Other | 108 | 742 | |||||
| Total Other Assets | 541,875 | 610,966 | |||||
| Total Assets | $ | 5,974,103 | $ | 6,103,320 | |||
| CAPITALIZATION AND LIABILITIES | |||||||
| Capitalization: | |||||||
| Comprehensive Shareholders' Equity | |||||||
| Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and | |||||||
| Outstanding - 85,943,875 Shares and 85,543,125 Shares, Respectively | $ | 85,944 | $ | 85,543 | |||
| Paid in Capital | 816,395 | 796,646 | |||||
| Earnings Reinvested in the Business | 1,097,438 | 851,669 | |||||
| Accumulated Other Comprehensive Loss | (72,396 | ) | (30,123 | ) | |||
| Total Comprehensive Shareholders' Equity | 1,927,381 | 1,703,735 | |||||
| Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs | 1,835,582 | 2,083,681 | |||||
| Total Capitalization | 3,762,963 | 3,787,416 | |||||
| Current and Accrued Liabilities: | |||||||
| Notes Payable to Banks and Commercial Paper | — | — | |||||
| Current Portion of Long-Term Debt | 250,000 | 300,000 | |||||
| Accounts Payable | 111,812 | 126,443 | |||||
| Amounts Payable to Customers | 16,833 | — | |||||
| Dividends Payable | 36,526 | 35,500 | |||||
| Interest Payable on Long-Term Debt | 28,357 | 35,031 | |||||
| Customer Advances | 197 | 15,701 | |||||
| Customer Security Deposits | 18,468 | 20,372 | |||||
| Other Accruals and Current Liabilities | 161,252 | 111,889 | |||||
| Fair Value of Derivative Financial Instruments | 38,012 | 1,103 | |||||
| Total Current and Accrued Liabilities | 661,457 | 646,039 | |||||
| Deferred Credits: | |||||||
| Deferred Income Taxes | 491,520 | 891,287 | |||||
| Taxes Refundable to Customers | 366,183 | 95,739 | |||||
| Cost of Removal Regulatory Liability | 213,560 | 204,630 | |||||
| Other Regulatory Liabilities | 128,184 | 113,716 | |||||
| Pension and Other Post-Retirement Liabilities | 138,275 | 149,079 | |||||
| Asset Retirement Obligations | 101,833 | 106,395 | |||||
| Other Deferred Credits | 110,128 | 109,019 | |||||
| Total Deferred Credits | 1,549,683 | 1,669,865 | |||||
| Commitments and Contingencies | — | — | |||||
| Total Capitalization and Liabilities | $ | 5,974,103 | $ | 6,103,320 | |||
| NATIONAL FUEL GAS COMPANY | ||||||||
| AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Unaudited) | ||||||||
| Nine Months Ended | ||||||||
| June 30, | ||||||||
| (Thousands of Dollars) | 2018 | 2017 | ||||||
| Operating Activities: | ||||||||
| Net Income Available for Common Stock | $ | 353,527 | $ | 237,906 | ||||
| Adjustments to Reconcile Net Income to Net CashProvided by Operating Activities: | ||||||||
| Depreciation, Depletion and Amortization | 177,802 | 168,812 | ||||||
| Deferred Income Taxes | (43,537 | ) | 105,073 | |||||
| Stock-Based Compensation | 11,770 | 8,857 | ||||||
| Other | 12,311 | 11,084 | ||||||
| Change in: | ||||||||
| Hedging Collateral Deposits | (542 | ) | (658 | ) | ||||
| Receivables and Unbilled Revenue | (35,021 | ) | (15,885 | ) | ||||
| Gas Stored Underground and Materials and Supplies | 18,832 | 15,699 | ||||||
| Unrecovered Purchased Gas Costs | 4,623 | (1,317 | ) | |||||
| Other Current Assets | (1,185 | ) | 8,502 | |||||
| Accounts Payable | 2,327 | 5,046 | ||||||
| Amounts Payable to Customers | 16,833 | (6,467 | ) | |||||
| Customer Advances | (15,504 | ) | (14,538 | ) | ||||
| Customer Security Deposits | (1,904 | ) | 1,503 | |||||
| Other Accruals and Current Liabilities | 26,538 | 25,423 | ||||||
| Other Assets | (10,770 | ) | (3,548 | ) | ||||
| Other Liabilities | 1,441 | 5,638 | ||||||
| Net Cash Provided by Operating Activities | $ | 517,541 | $ | 551,130 | ||||
| Investing Activities: | ||||||||
| Capital Expenditures | $ | (403,994 | ) | $ | (314,774 | ) | ||
| Net Proceeds from Sale of Oil and Gas Producing Properties | 55,506 | 26,554 | ||||||
| Other | (1,759 | ) | (10,186 | ) | ||||
| Net Cash Used in Investing Activities | $ | (350,247 | ) | $ | (298,406 | ) | ||
| Financing Activities: | ||||||||
| Reduction of Long-Term Debt | $ | (307,047 | ) | $ | — | |||
| Dividends Paid on Common Stock | (106,732 | ) | (103,594 | ) | ||||
| Net Proceeds From Issuance of Common Stock | 4,262 | 6,223 | ||||||
| Net Cash Used in Financing Activities | $ | (409,517 | ) | $ | (97,371 | ) | ||
| Net Increase (Decrease) in Cash and Temporary Cash Investments | (242,223 | ) | 155,353 | |||||
| Cash and Temporary Cash Investments at Beginning of Period | 555,530 | 129,972 | ||||||
| Cash and Temporary Cash Investments at June 30 | $ | 313,307 | $ | 285,325 | ||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| UPSTREAM BUSINESS | |||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | June 30, | June 30, | |||||||||||||||||||
| EXPLORATION AND PRODUCTION SEGMENT | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Total Operating Revenues | $ | 135,828 | $ | 151,161 | $ | (15,333 | ) | $ | 421,381 | $ | 471,646 | $ | (50,265 | ) | |||||||
| Operating Expenses: | |||||||||||||||||||||
| Operation and Maintenance: | |||||||||||||||||||||
| General and Administrative Expense | 15,239 | 14,170 | 1,069 | 46,175 | 43,674 | 2,501 | |||||||||||||||
| Lease Operating and Transportation Expense | 37,624 | 40,630 | (3,006 | ) | 121,079 | 122,881 | (1,802 | ) | |||||||||||||
| All Other Operation and Maintenance Expense | 2,728 | 2,835 | (107 | ) | 8,182 | 8,168 | 14 | ||||||||||||||
| Property, Franchise and Other Taxes | 3,302 | 4,297 | (995 | ) | 10,746 | 11,248 | (502 | ) | |||||||||||||
| Depreciation, Depletion and Amortization | 31,296 | 27,448 | 3,848 | 90,707 | 85,353 | 5,354 | |||||||||||||||
| 90,189 | 89,380 | 809 | 276,889 | 271,324 | 5,565 | ||||||||||||||||
| Operating Income | 45,639 | 61,781 | (16,142 | ) | 144,492 | 200,322 | (55,830 | ) | |||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 486 | 217 | 269 | 1,087 | 451 | 636 | |||||||||||||||
| Interest Expense | (13,247 | ) | (13,444 | ) | 197 | (40,001 | ) | (40,270 | ) | 269 | |||||||||||
| Income Before Income Taxes | 32,878 | 48,554 | (15,676 | ) | 105,578 | 160,503 | (54,925 | ) | |||||||||||||
| Income Tax Expense (Benefit) | 5,061 | 18,431 | (13,370 | ) | (55,474 | ) | 61,531 | (117,005 | ) | ||||||||||||
| Net Income | $ | 27,817 | $ | 30,123 | $ | (2,306 | ) | $ | 161,052 | $ | 98,972 | $ | 62,080 | ||||||||
| Net Income Per Share (Diluted) | $ | 0.32 | $ | 0.35 | $ | (0.03 | ) | $ | 1.86 | $ | 1.15 | $ | 0.71 | ||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| MIDSTREAM BUSINESSES | |||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | June 30, | June 30, | |||||||||||||||||||
| PIPELINE AND STORAGE SEGMENT | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 51,363 | $ | 50,049 | $ | 1,314 | $ | 158,387 | $ | 156,212 | $ | 2,175 | |||||||||
| Intersegment Revenues | 22,496 | 21,643 | 853 | 67,524 | 66,389 | 1,135 | |||||||||||||||
| Total Operating Revenues | 73,859 | 71,692 | 2,167 | 225,911 | 222,601 | 3,310 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | 105 | (13 | ) | 118 | 266 | 181 | 85 | ||||||||||||||
| Operation and Maintenance | 20,262 | 20,607 | (345 | ) | 57,004 | 60,517 | (3,513 | ) | |||||||||||||
| Property, Franchise and Other Taxes | 7,064 | 6,935 | 129 | 21,299 | 20,624 | 675 | |||||||||||||||
| Depreciation, Depletion and Amortization | 10,888 | 10,513 | 375 | 32,322 | 30,651 | 1,671 | |||||||||||||||
| 38,319 | 38,042 | 277 | 110,891 | 111,973 | (1,082 | ) | |||||||||||||||
| Operating Income | 35,540 | 33,650 | 1,890 | 115,020 | 110,628 | 4,392 | |||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 698 | 393 | 305 | 1,851 | 984 | 867 | |||||||||||||||
| Other Income | 379 | 449 | (70 | ) | 1,333 | 1,944 | (611 | ) | |||||||||||||
| Interest Expense | (7,667 | ) | (8,489 | ) | 822 | (23,418 | ) | (25,177 | ) | 1,759 | |||||||||||
| Income Before Income Taxes | 28,950 | 26,003 | 2,947 | 94,786 | 88,379 | 6,407 | |||||||||||||||
| Income Tax Expense | 8,227 | 9,972 | (1,745 | ) | 12,877 | 33,723 | (20,846 | ) | |||||||||||||
| Net Income | $ | 20,723 | $ | 16,031 | $ | 4,692 | $ | 81,909 | $ | 54,656 | $ | 27,253 | |||||||||
| Net Income Per Share (Diluted) | $ | 0.24 | $ | 0.19 | $ | 0.05 | $ | 0.95 | $ | 0.64 | $ | 0.31 | |||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||
| GATHERING SEGMENT | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Revenues from External Customers | $ | (31 | ) | $ | 34 | $ | (65 | ) | $ | 41 | $ | 86 | $ | (45 | ) | ||||||
| Intersegment Revenues | 27,908 | 26,853 | 1,055 | 79,404 | 82,629 | (3,225 | ) | ||||||||||||||
| Total Operating Revenues | 27,877 | 26,887 | 990 | 79,445 | 82,715 | (3,270 | ) | ||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Operation and Maintenance | 4,855 | 2,973 | 1,882 | 11,494 | 9,496 | 1,998 | |||||||||||||||
| Property, Franchise and Other Taxes | 14 | 13 | 1 | 74 | 45 | 29 | |||||||||||||||
| Depreciation, Depletion and Amortization | 4,444 | 4,131 | 313 | 12,759 | 12,008 | 751 | |||||||||||||||
| 9,313 | 7,117 | 2,196 | 24,327 | 21,549 | 2,778 | ||||||||||||||||
| Operating Income | 18,564 | 19,770 | (1,206 | ) | 55,118 | 61,166 | (6,048 | ) | |||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 160 | 288 | (128 | ) | 976 | 641 | 335 | ||||||||||||||
| Other Income | — | — | — | — | 1 | (1 | ) | ||||||||||||||
| Interest Expense | (2,502 | ) | (2,411 | ) | (91 | ) | (7,349 | ) | (6,739 | ) | (610 | ) | |||||||||
| Income Before Income Taxes | 16,222 | 17,647 | (1,425 | ) | 48,745 | 55,069 | (6,324 | ) | |||||||||||||
| Income Tax Expense (Benefit) | 4,656 | 7,540 | (2,884 | ) | (19,991 | ) | 23,696 | (43,687 | ) | ||||||||||||
| Net Income | $ | 11,566 | $ | 10,107 | $ | 1,459 | $ | 68,736 | $ | 31,373 | $ | 37,363 | |||||||||
| Net Income Per Share (Diluted) | $ | 0.13 | $ | 0.12 | $ | 0.01 | $ | 0.80 | $ | 0.37 | $ | 0.43 | |||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| DOWNSTREAM BUSINESSES | |||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | June 30, | June 30, | |||||||||||||||||||
| UTILITY SEGMENT | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 128,628 | $ | 121,900 | $ | 6,728 | $ | 599,495 | $ | 550,819 | $ | 48,676 | |||||||||
| Intersegment Revenues | 3,519 | 3,391 | 128 | 11,401 | 11,314 | 87 | |||||||||||||||
| Total Operating Revenues | 132,147 | 125,291 | 6,856 | 610,896 | 562,133 | 48,763 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | 53,028 | 46,536 | 6,492 | 286,446 | 235,481 | 50,965 | |||||||||||||||
| Operation and Maintenance | 44,792 | 43,506 | 1,286 | 155,737 | 155,783 | (46 | ) | ||||||||||||||
| Property, Franchise and Other Taxes | 9,961 | 9,927 | 34 | 31,349 | 31,637 | (288 | ) | ||||||||||||||
| Depreciation, Depletion and Amortization | 13,316 | 13,086 | 230 | 39,981 | 39,502 | 479 | |||||||||||||||
| 121,097 | 113,055 | 8,042 | 513,513 | 462,403 | 51,110 | ||||||||||||||||
| Operating Income | 11,050 | 12,236 | (1,186 | ) | 97,383 | 99,730 | (2,347 | ) | |||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 306 | 141 | 165 | 1,121 | 418 | 703 | |||||||||||||||
| Other Income | 192 | 438 | (246 | ) | 499 | 576 | (77 | ) | |||||||||||||
| Interest Expense | (6,572 | ) | (7,062 | ) | 490 | (20,266 | ) | (21,454 | ) | 1,188 | |||||||||||
| Income Before Income Taxes | 4,976 | 5,753 | (777 | ) | 78,737 | 79,270 | (533 | ) | |||||||||||||
| Income Tax Expense | 1,046 | 1,405 | (359 | ) | 20,454 | 28,167 | (7,713 | ) | |||||||||||||
| Net Income | $ | 3,930 | $ | 4,348 | $ | (418 | ) | $ | 58,283 | $ | 51,103 | $ | 7,180 | ||||||||
| Net Income Per Share (Diluted) | $ | 0.05 | $ | 0.05 | $ | — | $ | 0.67 | $ | 0.59 | $ | 0.08 | |||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||
| ENERGY MARKETING SEGMENT | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 25,460 | $ | 24,460 | $ | 1,000 | $ | 119,739 | $ | 112,210 | $ | 7,529 | |||||||||
| Intersegment Revenues | 512 | 565 | (53 | ) | 589 | 600 | (11 | ) | |||||||||||||
| Total Operating Revenues | 25,972 | 25,025 | 947 | 120,328 | 112,810 | 7,518 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | 24,816 | 24,336 | 480 | 113,240 | 104,335 | 8,905 | |||||||||||||||
| Operation and Maintenance | 1,575 | 1,706 | (131 | ) | 4,901 | 5,262 | (361 | ) | |||||||||||||
| Depreciation, Depletion and Amortization | 69 | 69 | — | 207 | 210 | (3 | ) | ||||||||||||||
| 26,460 | 26,111 | 349 | 118,348 | 109,807 | 8,541 | ||||||||||||||||
| Operating Income (Loss) | (488 | ) | (1,086 | ) | 598 | 1,980 | 3,003 | (1,023 | ) | ||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 202 | 146 | 56 | 497 | 418 | 79 | |||||||||||||||
| Other Income | 26 | 22 | 4 | 52 | 57 | (5 | ) | ||||||||||||||
| Interest Expense | (4 | ) | (13 | ) | 9 | (16 | ) | (38 | ) | 22 | |||||||||||
| Income (Loss) Before Income Taxes | (264 | ) | (931 | ) | 667 | 2,513 | 3,440 | (927 | ) | ||||||||||||
| Income Tax Expense (Benefit) | (74 | ) | (367 | ) | 293 | 1,079 | 1,318 | (239 | ) | ||||||||||||
| Net Income (Loss) | $ | (190 | ) | $ | (564 | ) | $ | 374 | $ | 1,434 | $ | 2,122 | $ | (688 | ) | ||||||
| Net Income (Loss) Per Share (Diluted) | $ | — | $ | (0.01 | ) | $ | 0.01 | $ | 0.02 | $ | 0.02 | $ | — | ||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | June 30, | June 30, | |||||||||||||||||||
| ALL OTHER | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Total Operating Revenues | $ | 1,496 | $ | 538 | $ | 958 | $ | 3,824 | $ | 1,311 | $ | 2,513 | |||||||||
| Operating Expenses: | |||||||||||||||||||||
| Operation and Maintenance | 414 | 435 | (21 | ) | 1,106 | 1,344 | (238 | ) | |||||||||||||
| Property, Franchise and Other Taxes | 138 | 151 | (13 | ) | 425 | 445 | (20 | ) | |||||||||||||
| Depreciation, Depletion and Amortization | 614 | 182 | 432 | 1,259 | 525 | 734 | |||||||||||||||
| 1,166 | 768 | 398 | 2,790 | 2,314 | 476 | ||||||||||||||||
| Operating Income (Loss) | 330 | (230 | ) | 560 | 1,034 | (1,003 | ) | 2,037 | |||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 108 | 59 | 49 | 271 | 147 | 124 | |||||||||||||||
| Income (Loss) Before Income Taxes | 438 | (171 | ) | 609 | 1,305 | (856 | ) | 2,161 | |||||||||||||
| Income Tax Expense (Benefit) | 141 | (73 | ) | 214 | 1,519 | (358 | ) | 1,877 | |||||||||||||
| Net Income (Loss) | $ | 297 | $ | (98 | ) | $ | 395 | $ | (214 | ) | $ | (498 | ) | $ | 284 | ||||||
| Net Income (Loss) Per Share (Diluted) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||
| CORPORATE | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 168 | $ | 226 | $ | (58 | ) | $ | 606 | $ | 660 | $ | (54 | ) | |||||||
| Intersegment Revenues | 999 | 977 | 22 | 2,998 | 2,930 | 68 | |||||||||||||||
| Total Operating Revenues | 1,167 | 1,203 | (36 | ) | 3,604 | 3,590 | 14 | ||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Operation and Maintenance | 3,736 | 3,658 | 78 | 11,255 | 11,054 | 201 | |||||||||||||||
| Property, Franchise and Other Taxes | 116 | 124 | (8 | ) | 352 | 369 | (17 | ) | |||||||||||||
| Depreciation, Depletion and Amortization | 190 | 188 | 2 | 567 | 563 | 4 | |||||||||||||||
| 4,042 | 3,970 | 72 | 12,174 | 11,986 | 188 | ||||||||||||||||
| Operating Loss | (2,875 | ) | (2,767 | ) | (108 | ) | (8,570 | ) | (8,396 | ) | (174 | ) | |||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 30,147 | 31,185 | (1,038 | ) | 91,844 | 93,684 | (1,840 | ) | |||||||||||||
| Other Income | 402 | 461 | (59 | ) | 1,608 | 2,150 | (542 | ) | |||||||||||||
| Interest Expense on Long-Term Debt | (27,177 | ) | (29,225 | ) | 2,048 | (82,412 | ) | (87,241 | ) | 4,829 | |||||||||||
| Other Interest Expense | (1,489 | ) | (1,003 | ) | (486 | ) | (4,432 | ) | (2,901 | ) | (1,531 | ) | |||||||||
| Loss Before Income Taxes | (992 | ) | (1,349 | ) | 357 | (1,962 | ) | (2,704 | ) | 742 | |||||||||||
| Income Tax Expense (Benefit) | 126 | (1,116 | ) | 1,242 | 15,711 | (2,882 | ) | 18,593 | |||||||||||||
| Net Income (Loss) | $ | (1,118 | ) | $ | (233 | ) | $ | (885 | ) | $ | (17,673 | ) | $ | 178 | $ | (17,851 | ) | ||||
| Net Income (Loss) Per Share (Diluted) | $ | (0.01 | ) | $ | (0.01 | ) | $ | — | $ | (0.21 | ) | $ | — | $ | (0.21 | ) | |||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||
| INTERSEGMENT ELIMINATIONS | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Intersegment Revenues | $ | (55,434 | ) | $ | (53,429 | ) | $ | (2,005 | ) | $ | (161,916 | ) | $ | (163,862 | ) | $ | 1,946 | ||||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | (25,738 | ) | (24,724 | ) | (1,014 | ) | (77,098 | ) | (75,648 | ) | (1,450 | ) | |||||||||
| Operation and Maintenance | (29,696 | ) | (28,705 | ) | (991 | ) | (84,818 | ) | (88,214 | ) | 3,396 | ||||||||||
| (55,434 | ) | (53,429 | ) | (2,005 | ) | (161,916 | ) | (163,862 | ) | 1,946 | |||||||||||
| Operating Income | — | — | — | — | — | — | |||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | (30,475 | ) | (31,576 | ) | 1,101 | (92,740 | ) | (93,899 | ) | 1,159 | |||||||||||
| Interest Expense | 30,475 | 31,576 | (1,101 | ) | 92,740 | 93,899 | (1,159 | ) | |||||||||||||
| Net Income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| Net Income Per Share (Diluted) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||||||
| SEGMENT INFORMATION (Continued) | |||||||||||||||||||||||||
| (Thousands of Dollars) | |||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||||
| Increase | Increase | ||||||||||||||||||||||||
| 2018 | 2017 | (Decrease) | 2018 | 2017 | (Decrease) | ||||||||||||||||||||
| Capital Expenditures: | |||||||||||||||||||||||||
| Exploration and Production | $ | 110,591 | (1 | ) | $ | 70,719 | (3 | ) | $ | 39,872 | $ | 269,876 | (1)(2) | $ | 168,545 | (3)(4) | $ | 101,331 | |||||||
| Pipeline and Storage | 15,916 | (1 | ) | 16,750 | (3 | ) | (834 | ) | 53,356 | (1)(2) | 53,528 | (3)(4) | (172 | ) | |||||||||||
| Gathering | 15,484 | (1 | ) | 9,214 | (3 | ) | 6,270 | 47,767 | (1)(2) | 23,705 | (3)(4) | 24,062 | |||||||||||||
| Utility | 19,737 | (1 | ) | 20,116 | (3 | ) | (379 | ) | 52,026 | (1)(2) | 56,411 | (3)(4) | (4,385 | ) | |||||||||||
| Energy Marketing | 10 | 3 | 7 | 33 | 14 | 19 | |||||||||||||||||||
| Total Reportable Segments | 161,738 | 116,802 | 44,936 | 423,058 | 302,203 | 120,855 | |||||||||||||||||||
| All Other | — | — | — | 1 | 40 | (39 | ) | ||||||||||||||||||
| Corporate | 7 | 22 | (15 | ) | 51 | 86 | (35 | ) | |||||||||||||||||
| Eliminations | — | 295 | (295 | ) | (19,922 | ) | (482 | ) | (19,440 | ) | |||||||||||||||
| Total Capital Expenditures | $ | 161,745 | $ | 117,119 | $ | 44,626 | $ | 403,188 | $ | 301,847 | $ | 101,341 | |||||||||||||
(1) Capital expenditures for the quarter and nine months ended June 30, 2018, include accounts payable and accrued liabilities related to capital expenditures of $49.0 million, $10.9 million, $8.2 million, and $3.3 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 June 30, 2018, since they represent non-cash investing activities at that date.
(2) Capital expenditures for the nine months ended June 30, 2018, exclude capital expenditures of $36.5 million, $25.1 million, $3.9 million and $6.7 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, 2017 and paid during the nine months ended June 30, 2018. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2017, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at June 30, 2018.
(3) Capital expenditures for the quarter and nine months ended June 30, 2017, include accounts payable and accrued liabilities related to capital expenditures of $25.0 million, $10.3 million, $5.2 million, and $7.0 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 June 30, 2017, since they represent non-cash investing activities at that date.
(4) Capital expenditures for the nine months ended June 30, 2017, exclude capital expenditures of $25.2 million, $18.7 million, $5.3 million and $11.2 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, 2016 and paid during the nine months ended June 30, 2017. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2016, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at June 30, 2017.
| DEGREE DAYS | |||||||||||
| Percent Colder | |||||||||||
| (Warmer) Than: | |||||||||||
| Three Months Ended June 30 | Normal | 2018 | 2017 | Normal (1) | Last Year (1) | ||||||
| Buffalo, NY | 912 | 873 | 767 | (4.3 | ) | 13.8 | |||||
| Erie, PA | 871 | 825 | 705 | (5.3 | ) | 17.0 | |||||
| Nine Months Ended June 30 | |||||||||||
| Buffalo, NY | 6,455 | 6,308 | 5,599 | (2.3 | ) | 12.7 | |||||
| Erie, PA | 6,023 | 5,929 | 5,082 | (1.6 | ) | 16.7 | |||||
(1) Percents compare actual 2018 degree days to normal degree days and actual 2018 degree days to actual 2017 degree days.
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||||||||
| EXPLORATION AND PRODUCTION INFORMATION | ||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||
| Increase | Increase | |||||||||||||||||||||||
| 2018 | 2017 | (Decrease) | 2018 | 2017 | (Decrease) | |||||||||||||||||||
| Gas Production/Prices: | ||||||||||||||||||||||||
| Production (MMcf) | ||||||||||||||||||||||||
| Appalachia | 40,444 | 37,904 | 2,540 | 117,261 | 118,517 | (1,256 | ) | |||||||||||||||||
| West Coast | 526 | 733 | (207 | ) | 1,896 | 2,246 | (350 | ) | ||||||||||||||||
| Total Production | 40,970 | 38,637 | 2,333 | 119,157 | 120,763 | (1,606 | ) | |||||||||||||||||
| Average Prices (Per Mcf) | ||||||||||||||||||||||||
| Appalachia | $ | 2.30 | $ | 2.58 | $ | (0.28 | ) | $ | 2.37 | $ | 2.55 | $ | (0.18 | ) | ||||||||||
| West Coast | 4.41 | 3.39 | 1.02 | 4.62 | 4.07 | 0.55 | ||||||||||||||||||
| Weighted Average | 2.32 | 2.59 | (0.27 | ) | 2.40 | 2.58 | (0.18 | ) | ||||||||||||||||
| Weighted Average after Hedging | 2.43 | 2.94 | (0.51 | ) | 2.55 | 2.96 | (0.41 | ) | ||||||||||||||||
| Oil Production/Prices: | ||||||||||||||||||||||||
| Production (Thousands of Barrels) | ||||||||||||||||||||||||
| Appalachia | 1 | 1 | — | 3 | 3 | — | ||||||||||||||||||
| West Coast | 600 | 669 | (69 | ) | 1,934 | 2,062 | (128 | ) | ||||||||||||||||
| Total Production | 601 | 670 | (69 | ) | 1,937 | 2,065 | (128 | ) | ||||||||||||||||
| Average Prices (Per Barrel) | ||||||||||||||||||||||||
| Appalachia | $ | 64.37 | $ | 48.34 | $ | 16.03 | $ | 55.06 | $ | 48.85 | $ | 6.21 | ||||||||||||
| West Coast | 71.53 | 45.63 | 25.90 | 64.69 | 45.71 | 18.98 | ||||||||||||||||||
| Weighted Average | 71.52 | 45.64 | 25.88 | 64.68 | 45.76 | 18.92 | ||||||||||||||||||
| Weighted Average after Hedging | 58.74 | 53.02 | 5.72 | 58.96 | 53.58 | 5.38 | ||||||||||||||||||
| Total Production (Mmcfe) | 44,576 | 42,657 | 1,919 | 130,779 | 133,153 | (2,374 | ) | |||||||||||||||||
| Selected Operating Performance Statistics: | ||||||||||||||||||||||||
| General & Administrative Expense per Mcfe (1) | $ | 0.34 | $ | 0.33 | $ | 0.01 | $ | 0.35 | $ | 0.33 | $ | 0.02 | ||||||||||||
| Lease Operating and Transportation Expense per Mcfe (1)(2) | $ | 0.84 | $ | 0.95 | $ | (0.11 | ) | $ | 0.93 | $ | 0.92 | $ | 0.01 | |||||||||||
| Depreciation, Depletion & Amortization per Mcfe (1) | $ | 0.70 | $ | 0.64 | $ | 0.06 | $ | 0.69 | $ | 0.64 | $ | 0.05 | ||||||||||||
(1) 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.
(2) Amounts include transportation expense of $0.53 and $0.54 per Mcfe for the three months ended June 30, 2018 and June 30, 2017, respectively. Amounts include transportation expense of $0.54 per Mcfe for both the nine months ended June 30, 2018 and June 30, 2017.
| NATIONAL FUEL GAS COMPANY | |||||||
| AND SUBSIDIARIES | |||||||
| EXPLORATION AND PRODUCTION INFORMATION | |||||||
| Hedging Summary for the Remaining Three Months of Fiscal 2018 | Volume | Average Hedge Price | |||||
| Oil Swaps | |||||||
| Brent | 114,000 | BBL | $ | 63.55 / BBL | |||
| NYMEX | 420,000 | BBL | $ | 52.67 / BBL | |||
| Total | 534,000 | BBL | $ | 54.99 / BBL | |||
| Gas Swaps | |||||||
| NYMEX | 12,260,000 | MMBTU | $ | 3.11 / MMBTU | |||
| DAWN | 1,800,000 | MMBTU | $ | 3.00 / MMBTU | |||
| Fixed Price Physical Sales | 21,037,880 | MMBTU | $ | 2.30 / MMBTU | |||
| Total | 35,097,880 | MMBTU | $ | 2.62 / MMBTU | |||
| Hedging Summary for Fiscal 2019 | Volume | Average Hedge Price | |||||
| Oil Swaps | |||||||
| Brent | 744,000 | BBL | $ | 63.52 / BBL | |||
| NYMEX | 1,068,000 | BBL | $ | 53.42 / BBL | |||
| Total | 1,812,000 | BBL | $ | 57.57 / BBL | |||
| Gas Swaps | |||||||
| NYMEX | 80,980,000 | MMBTU | $ | 2.94 / MMBTU | |||
| DAWN | 7,200,000 | MMBTU | $ | 3.00 / MMBTU | |||
| Fixed Price Physical Sales | 56,149,146 | MMBTU | $ | 2.64 / MMBTU | |||
| Total | 144,329,146 | MMBTU | $ | 2.83 / MMBTU | |||
| Hedging Summary for Fiscal 2020 | Volume | Average Hedge Price | |||||
| Oil Swaps | |||||||
| Brent | 732,000 | BBL | $ | 61.48 / BBL | |||
| NYMEX | 324,000 | BBL | $ | 50.52 / BBL | |||
| Total | 1,056,000 | BBL | $ | 58.12 / BBL | |||
| Gas Swaps | |||||||
| NYMEX | 18,640,000 | MMBTU | $ | 3.04 / MMBTU | |||
| DAWN | 7,200,000 | MMBTU | $ | 3.00 / MMBTU | |||
| Fixed Price Physical Sales | 41,833,352 | MMBTU | $ | 2.30 / MMBTU | |||
| Total | 67,673,352 | MMBTU | $ | 2.58 / MMBTU | |||
| Hedging Summary for Fiscal 2021 | Volume | Average Hedge Price | |||||
| Oil Swaps | |||||||
| Brent | 444,000 | BBL | $ | 62.59 / BBL | |||
| NYMEX | 156,000 | BBL | $ | 51.00 / BBL | |||
| Total | 600,000 | BBL | $ | 59.58 / BBL | |||
| Gas Swaps | |||||||
| NYMEX | 4,840,000 | MMBTU | $ | 3.01 / MMBTU | |||
| DAWN | 600,000 | MMBTU | $ | 3.00 / MMBTU | |||
| Fixed Price Physical Sales | 41,608,372 | MMBTU | $ | 2.22 / MMBTU | |||
| Total | 47,048,372 | MMBTU | $ | 2.31 / MMBTU | |||
| Hedging Summary for Fiscal 2022 | Volume | Average Hedge Price | |||||
| Oil Swaps | |||||||
| Brent | 300,000 | BBL | $ | 60.07 / BBL | |||
| NYMEX | 156,000 | BBL | $ | 51.00 / BBL | |||
| Total | 456,000 | BBL | $ | 56.97 / BBL | |||
| Fixed Price Physical Sales | 40,589,265 | MMBTU | $ | 2.23 / MMBTU | |||
| Hedging Summary for Fiscal 2023 | Volume | Average Hedge Price | |||||
| Fixed Price Physical Sales | 37,079,884 | MMBTU | $ | 2.26 / MMBTU | |||
| Hedging Summary for Fiscal 2024 | Volume | Average Hedge Price | |||||
| Fixed Price Physical Sales | 20,966,205 | MMBTU | $ | 2.25 / MMBTU | |||
| Hedging Summary for Fiscal 2025 | Volume | Average Hedge Price | |||||
| Fixed Price Physical Sales | 2,293,200 | MMBTU | $ | 2.18 / MMBTU | |||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||
| Pipeline & Storage Throughput - (millions of cubic feet - MMcf) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| Increase | Increase | |||||||||||||||||
| 2018 | 2017 | (Decrease) | 2018 | 2017 | (Decrease) | |||||||||||||
| Firm Transportation - Affiliated | 21,714 | 17,734 | 3,980 | 104,106 | 92,583 | 11,523 | ||||||||||||
| Firm Transportation - Non-Affiliated | 155,357 | 165,717 | (10,360 | ) | 479,346 | 495,015 | (15,669 | ) | ||||||||||
| Interruptible Transportation | 1,107 | 1,060 | 47 | 3,153 | 5,078 | (1,925 | ) | |||||||||||
| 178,178 | 184,511 | (6,333 | ) | 586,605 | 592,676 | (6,071 | ) | |||||||||||
| Gathering Volume - (MMcf) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| Increase | Increase | |||||||||||||||||
| 2018 | 2017 | (Decrease) | 2018 | 2017 | (Decrease) | |||||||||||||
| Gathered Volume - Affiliated | 51,392 | 48,838 | 2,554 | 145,928 | 150,005 | (4,077 | ) | |||||||||||
| Utility Throughput - (MMcf) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| Increase | Increase | |||||||||||||||||
| 2018 | 2017 | (Decrease) | 2018 | 2017 | (Decrease) | |||||||||||||
| Retail Sales: | ||||||||||||||||||
| Residential Sales | 10,052 | 8,105 | 1,947 | 56,468 | 48,817 | 7,651 | ||||||||||||
| Commercial Sales | 1,525 | 1,170 | 355 | 8,621 | 7,373 | 1,248 | ||||||||||||
| Industrial Sales | 128 | 48 | 80 | 559 | 282 | 277 | ||||||||||||
| 11,705 | 9,323 | 2,382 | 65,648 | 56,472 | 9,176 | |||||||||||||
| Off-System Sales | — | — | — | 141 | 1,295 | (1,154 | ) | |||||||||||
| Transportation | 15,348 | 13,799 | 1,549 | 66,398 | 60,453 | 5,945 | ||||||||||||
| 27,053 | 23,122 | 3,931 | 132,187 | 118,220 | 13,967 | |||||||||||||
| Energy Marketing Volume | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| Increase | Increase | |||||||||||||||||
| 2018 | 2017 | (Decrease) | 2018 | 2017 | (Decrease) | |||||||||||||
| Natural Gas (MMcf) | 8,322 | 7,722 | 600 | 36,413 | 32,969 | 3,444 | ||||||||||||
NATIONAL FUEL GAS COMPANYAND 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 and Adjusted EBITDA, 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 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 nine months ended June 30, 2018 and 2017:
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Reported GAAP Earnings | $ | 63,025 | $ | 59,714 | $ | 353,527 | $ | 237,906 | ||||||||
| Items impacting comparability | ||||||||||||||||
| Remeasurement of deferred income taxesunder 2017 Tax Reform | — | — | (107,000 | ) | — | |||||||||||
| Adjusted Operating Results | $ | 63,025 | $ | 59,714 | $ | 246,527 | $ | 237,906 | ||||||||
| Reported GAAP Earnings per share | $ | 0.73 | $ | 0.69 | $ | 4.09 | $ | 2.77 | ||||||||
| Items impacting comparability | ||||||||||||||||
| Remeasurement of deferred income taxesunder 2017 Tax Reform | — | — | (1.24 | ) | — | |||||||||||
| Adjusted Operating Results per share | $ | 0.73 | $ | 0.69 | $ | 2.85 | $ | 2.77 | ||||||||
Management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, interest and other income, 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 nine months ended June 30, 2018 and 2017:
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Reported GAAP Earnings | $ | 63,025 | $ | 59,714 | $ | 353,527 | $ | 237,906 | ||||||||
| Depreciation, Depletion and Amortization | 60,817 | 55,617 | 177,802 | 168,812 | ||||||||||||
| Interest and Other Income | (2,631 | ) | (2,223 | ) | (8,399 | ) | (7,572 | ) | ||||||||
| Interest Expense | 28,183 | 30,071 | 85,154 | 89,921 | ||||||||||||
| Income Taxes | 19,183 | 35,792 | (23,825 | ) | 145,195 | |||||||||||
| Adjusted EBITDA | $ | 168,577 | $ | 178,971 | $ | 584,259 | $ | 634,262 | ||||||||
| Adjusted EBITDA by Segment | ||||||||||||||||
| Pipeline and Storage Adjusted EBITDA | $ | 46,428 | $ | 44,163 | $ | 147,342 | $ | 141,279 | ||||||||
| Gathering Adjusted EBITDA | 23,008 | 23,901 | 67,877 | 73,174 | ||||||||||||
| Total Midstream Businesses Adjusted EBITDA | 69,436 | 68,064 | 215,219 | 214,453 | ||||||||||||
| Exploration and Production Adjusted EBITDA | 76,935 | 89,229 | 235,199 | 285,675 | ||||||||||||
| Utility Adjusted EBITDA | 24,366 | 25,322 | 137,364 | 139,232 | ||||||||||||
| Energy Marketing Adjusted EBITDA | (419 | ) | (1,017 | ) | 2,187 | 3,213 | ||||||||||
| Corporate and All Other Adjusted EBITDA | (1,741 | ) | (2,627 | ) | (5,710 | ) | (8,311 | ) | ||||||||
| Total Adjusted EBITDA | $ | 168,577 | $ | 178,971 | $ | 584,259 | $ | 634,262 | ||||||||
| NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESNON-GAAP FINANCIAL MEASURES SEGMENT ADJUSTED EBITDA | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Exploration and Production Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | 27,817 | $ | 30,123 | $ | 161,052 | $ | 98,972 | ||||||||
| Depreciation, Depletion and Amortization | 31,296 | 27,448 | 90,707 | 85,353 | ||||||||||||
| Interest and Other Income | (486 | ) | (217 | ) | (1,087 | ) | (451 | ) | ||||||||
| Interest Expense | 13,247 | 13,444 | 40,001 | 40,270 | ||||||||||||
| Income Taxes | 5,061 | 18,431 | (55,474 | ) | 61,531 | |||||||||||
| Adjusted EBITDA | $ | 76,935 | $ | 89,229 | $ | 235,199 | $ | 285,675 | ||||||||
| Pipeline and Storage Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | 20,723 | $ | 16,031 | $ | 81,909 | $ | 54,656 | ||||||||
| Depreciation, Depletion and Amortization | 10,888 | 10,513 | 32,322 | 30,651 | ||||||||||||
| Interest and Other Income | (1,077 | ) | (842 | ) | (3,184 | ) | (2,928 | ) | ||||||||
| Interest Expense | 7,667 | 8,489 | 23,418 | 25,177 | ||||||||||||
| Income Taxes | 8,227 | 9,972 | 12,877 | 33,723 | ||||||||||||
| Adjusted EBITDA | $ | 46,428 | $ | 44,163 | $ | 147,342 | $ | 141,279 | ||||||||
| Gathering Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | 11,566 | $ | 10,107 | $ | 68,736 | $ | 31,373 | ||||||||
| Depreciation, Depletion and Amortization | 4,444 | 4,131 | 12,759 | 12,008 | ||||||||||||
| Interest and Other Income | (160 | ) | (288 | ) | (976 | ) | (642 | ) | ||||||||
| Interest Expense | 2,502 | 2,411 | 7,349 | 6,739 | ||||||||||||
| Income Taxes | 4,656 | 7,540 | (19,991 | ) | 23,696 | |||||||||||
| Adjusted EBITDA | $ | 23,008 | $ | 23,901 | $ | 67,877 | $ | 73,174 | ||||||||
| Utility Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | 3,930 | $ | 4,348 | $ | 58,283 | $ | 51,103 | ||||||||
| Depreciation, Depletion and Amortization | 13,316 | 13,086 | 39,981 | 39,502 | ||||||||||||
| Interest and Other Income | (498 | ) | (579 | ) | (1,620 | ) | (994 | ) | ||||||||
| Interest Expense | 6,572 | 7,062 | 20,266 | 21,454 | ||||||||||||
| Income Taxes | 1,046 | 1,405 | 20,454 | 28,167 | ||||||||||||
| Adjusted EBITDA | $ | 24,366 | $ | 25,322 | $ | 137,364 | $ | 139,232 | ||||||||
| Energy Marketing Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | (190 | ) | $ | (564 | ) | $ | 1,434 | $ | 2,122 | ||||||
| Depreciation, Depletion and Amortization | 69 | 69 | 207 | 210 | ||||||||||||
| Interest and Other Income | (228 | ) | (168 | ) | (549 | ) | (475 | ) | ||||||||
| Interest Expense | 4 | 13 | 16 | 38 | ||||||||||||
| Income Taxes | (74 | ) | (367 | ) | 1,079 | 1,318 | ||||||||||
| Adjusted EBITDA | $ | (419 | ) | $ | (1,017 | ) | $ | 2,187 | $ | 3,213 | ||||||
| Corporate and All Other | ||||||||||||||||
| Reported GAAP Earnings | $ | (821 | ) | $ | (331 | ) | $ | (17,887 | ) | $ | (320 | ) | ||||
| Depreciation, Depletion and Amortization | 804 | 370 | 1,826 | 1,088 | ||||||||||||
| Interest and Other Income | (182 | ) | (129 | ) | (983 | ) | (2,082 | ) | ||||||||
| Interest Expense | (1,809 | ) | (1,348 | ) | (5,896 | ) | (3,757 | ) | ||||||||
| Income Taxes | 267 | (1,189 | ) | 17,230 | (3,240 | ) | ||||||||||
| Adjusted EBITDA | $ | (1,741 | ) | $ | (2,627 | ) | $ | (5,710 | ) | $ | (8,311 | ) | ||||
| NATIONAL FUEL GAS COMPANY | ||||||||
| AND SUBSIDIARIES | ||||||||
| Quarter Ended June 30 (unaudited) | 2018 | 2017 | ||||||
| Operating Revenues | $ | 342,912,000 | $ | 348,368,000 | ||||
| Net Income Available for Common Stock | $ | 63,025,000 | $ | 59,714,000 | ||||
| Earnings Per Common Share | ||||||||
| Basic | $ | 0.73 | $ | 0.70 | ||||
| Diluted | $ | 0.73 | $ | 0.69 | ||||
| Weighted Average Common Shares: | ||||||||
| Used in Basic Calculation | 85,930,289 | 85,422,313 | ||||||
| Used in Diluted Calculation | 86,501,194 | 86,064,464 | ||||||
| Nine Months Ended June 30 (unaudited) | ||||||||
| Operating Revenues | $ | 1,303,473,000 | $ | 1,292,944,000 | ||||
| Net Income Available for Common Stock | $ | 353,527,000 | $ | 237,906,000 | ||||
| Earnings Per Common Share: | ||||||||
| Basic | $ | 4.12 | $ | 2.79 | ||||
| Diluted | $ | 4.09 | $ | 2.77 | ||||
| Weighted Average Common Shares: | ||||||||
| Used in Basic Calculation | 85,789,279 | 85,315,154 | ||||||
| Used in Diluted Calculation | 86,370,900 | 85,950,742 | ||||||
| Twelve Months Ended June 30 (unaudited) | ||||||||
| Operating Revenues | $ | 1,590,410,000 | $ | 1,585,416,000 | ||||
| Net Income Available for Common Stock | $ | 399,103,000 | $ | 275,459,000 | ||||
| Earnings Per Common Share | ||||||||
| Basic | $ | 4.66 | $ | 3.23 | ||||
| Diluted | $ | 4.62 | $ | 3.21 | ||||
| Weighted Average Common Shares: | ||||||||
| Used in Basic Calculation | 85,719,552 | 85,239,850 | ||||||
| Used in Diluted Calculation | 86,333,307 | 85,881,424 | ||||||