National Fuel Gas plans to spin off its upstream and gathering unit

National Fuel Gas Company (NYSE: NFG) announced its board of directors approved a plan to separate its Integrated Upstream and Gathering business (IUG) into an independent, publicly traded company through a tax-free spin-off, according to a press release issued Oct. 14, 2026.

The separation is expected to be completed in the second half of 2027, subject to conditions including SEC filings, financing arrangements, and final board approval. National Fuel plans to distribute at least 80.1% of IUG shares to existing shareholders on a pro rata basis, retaining up to 19.9% of IUG, which it intends to dispose of in a tax-efficient manner.

Following the separation, National Fuel will operate as a fully regulated natural gas company with nearly $5 billion of rate base, serving approximately 1.1 million utility customers across Ohio, New York, and Pennsylvania. Its pipeline and storage business will provide nearly 5 billion cubic feet per day of contracted transportation capacity and 77 billion cubic feet of contracted storage services.

IUG will become a standalone Appalachian natural gas producer with approximately 1.2 million net acres, roughly 1.1 billion cubic feet per day of net production, and approximately 5 trillion cubic feet of proved natural gas reserves. Justin I. Loweth, currently president of Seneca Resources and NFG Midstream, will serve as chief executive officer of the new company.

David P. Bauer will remain president and chief executive officer of National Fuel, with Timothy J. Silverstein continuing as treasurer and chief financial officer.

Goldman Sachs & Co. LLC is serving as financial advisor, Veriten LLC served as independent strategic advisor, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel.

National Fuel said it plans to provide formal fiscal 2027 guidance alongside its fourth-quarter earnings release in November 2026.

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