WILLIAMSVILLE, N.Y., Oct. 31, 2019 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the three months and fiscal year ended September 30, 2019.
FISCAL 2019 FOURTH QUARTER SUMMARY
- GAAP earnings of $47.3 million, or $0.54 per share, compared to $38.0 million, or $0.44 per share, in the prior year
- Adjusted operating results of $47.0 million, or $0.54 per share, compared to $42.5 million, or $0.49 per share, in the prior year (see non-GAAP reconciliation on page 2)
- Adjusted EBITDA of $157.3 million compared to $148.2 million in the prior year (non-GAAP reconciliation on page 24)
- E&P segment net production of 59.1 Bcfe, an increase of 25% from the prior year and 8% from the third quarter
- Average natural gas prices, after the impact of hedging, of $2.26 per Mcf, down $0.19 per Mcf from the prior year
- Average oil prices, after the impact of hedging, of $61.00 per Bbl, up $3.29 per Bbl from the prior year
- Gathering segment revenues increased $6.7 million, or 24%, on higher throughput from Seneca
FISCAL 2019 HIGHLIGHTS
- GAAP earnings of $304.3 million, or $3.51 per share, compared to $391.5 million, or $4.53 per share, in the prior year
- Adjusted operating results of $299.3 million, or $3.45 per share, compared to $289.4 million, or $3.35 per share, in the prior year (see non-GAAP reconciliation on page 2)
- Adjusted EBITDA of $785.4 million, an increase of $23.9 million over fiscal 2018 (non-GAAP reconciliation on page 24)
- E&P segment net production of 211.8 Bcfe, an increase of 19% over fiscal 2018 and the highest output in Company history
- Proved reserves at September 30, 2019, of 3.1 Tcfe, an increase of 23% from September 30, 2018
- Gathering segment revenues increased $19.2 million, or 18%, on higher throughput from Seneca
- Utility segment net income of $60.9 million, an increase of $9.7 million, or 19%, over fiscal 2018
- Increased shareholder dividend for the 49th consecutive year to an annual rate of $1.74 per share
MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel capped off our 2019 fiscal year with an excellent fourth quarter, including operating results that were up approximately 10% from the prior year. Despite a challenging commodity price environment, the Company also grew its earnings year over year, evidencing the value of our integrated business model. The high degree of integration between our Exploration and Production and Gathering operations provided meaningful consolidated benefits, as Seneca’s record annual production drove a significant increase in our Gathering segment revenues this year, offsetting the impact of lower natural gas realizations. Our regulated Downstream and Midstream operations continue to provide diversification and predictable cash flows. The Utility segment delivered strong results in 2019, driven largely by modest customer growth and our ongoing investments in the modernization of our distribution network. These investments, which exceeded $74 million this fiscal year, further enhanced the safety and integrity of our pipeline systems, and contributed to earnings and rate base growth.”
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in thousands except per share amounts) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Reported GAAP Earnings | $ | 47,281 | $ | 37,994 | $ | 304,290 | $ | 391,521 | ||||||||
| Items impacting comparability | ||||||||||||||||
| Remeasurement of deferred income taxes under 2017 Tax Reform | — | 3,516 | (5,000 | ) | (103,484 | ) | ||||||||||
| Mark-to-market adjustments due to hedge ineffectiveness (E&P) | (1,313 | ) | 346 | (2,096 | ) | 782 | ||||||||||
| Tax impact of mark-to-market adjustments due to hedge ineffectiveness | 276 | (85 | ) | 440 | (192 | ) | ||||||||||
| Unrealized (gain) loss on other investments (Corporate / All Other) | 949 | — | 2,045 | — | ||||||||||||
| Tax impact of unrealized (gain) loss on other investments | (199 | ) | — | (429 | ) | — | ||||||||||
| Premium paid on early redemption of debt (E&P) | — | 962 | 962 | |||||||||||||
| Tax impact of premium paid on early redemption of debt | — | (235 | ) | (235 | ) | |||||||||||
| Adjusted Operating Results | $ | 46,994 | $ | 42,498 | $ | 299,250 | $ | 289,354 | ||||||||
| Reported GAAP Earnings per share | $ | 0.54 | $ | 0.44 | $ | 3.51 | $ | 4.53 | ||||||||
| Items impacting comparability | ||||||||||||||||
| Remeasurement of deferred income taxes under 2017 Tax Reform | — | 0.04 | (0.06 | ) | (1.20 | ) | ||||||||||
| Mark-to-market adjustments due to hedge ineffectiveness, net of tax (E&P) | (0.01 | ) | — | (0.02 | ) | 0.01 | ||||||||||
| Unrealized (gain) loss on other investments, net of tax (Corporate / All Other) | 0.01 | — | 0.02 | — | ||||||||||||
| Premium paid on early redemption of debt, net of tax (E&P) | — | 0.01 | — | 0.01 | ||||||||||||
| Adjusted Operating Results per share | $ | 0.54 | $ | 0.49 | $ | 3.45 | $ | 3.35 | ||||||||
FISCAL 2020 GUIDANCE UPDATE
National Fuel is revising its fiscal 2020 earnings guidance to reflect updated forecast assumptions and projections, including the expected impact of the decline in near-term natural gas prices that has occurred since the Company’s preliminary guidance was announced in August 2019. The Company is now projecting that earnings will be within the range of $3.00 to $3.30 per share, or $3.15 per share at the midpoint of the range. The decrease from the preliminary guidance is primarily due to lower expected price realizations on Seneca’s production, higher expected depreciation, depletion and amortization (“DD&A”) rates at Seneca, and higher expected pension and other post-retirement benefit expenses. The increase in Seneca’s projected DD&A rate is largely due to higher expected future plugging and abandonment costs in California. The increase in pension and other post-retirement benefit costs is being driven by changes in actuarial assumptions, primarily a lower discount rate resulting from the recent decline in interest rates.
The Company is now assuming that NYMEX natural gas prices will average $2.40 per MMBtu in fiscal 2020, a decrease of $0.15 per MMBtu from the $2.55 per MMBtu assumed in the preliminary guidance. For guidance purposes, the Company’s updated projections reflect the current NYMEX forward markets for natural gas and oil and consider the impact of local sales point differentials and new physical firm sales, transportation, or financial hedge contracts. During the fourth quarter, Seneca executed approximately 42 billion cubic feet (“Bcf”) of new NYMEX swap contracts. The Company currently has financial hedges and fixed price physical firm sales contracts in place on approximately 60% of Seneca’s expected fiscal 2020 production that, on average, lock-in a price realization of $2.30 per thousand cubic feet (“Mcf”).
The Exploration and Production segment’s fiscal 2020 net production forecast remains unchanged in the range of 235 to 245 billion cubic feet equivalent (“Bcfe”). The Company’s fiscal 2020 consolidated and individual segment capital expenditures guidance also remains unchanged from the preliminary guidance. The Company announced in August that it plans to reduce Seneca’s development activity in Appalachia in response to the decline in near-term natural gas prices. As planned, during the second quarter of fiscal 2020, Seneca expects to drop one of the three horizontal drilling rigs it is currently operating in Appalachia. Because the Company owns a majority of its natural gas interests in fee, Seneca has the flexibility to further reduce its capital investments should market conditions continue to weaken in order to preserve the economics of its development program.
Mr. Bauer added: “As we look to the future, despite the headwind of natural gas prices in fiscal 2020, we are well-positioned to responsibly grow the Company in a manner that maintains the strength of our balance sheet and drives value for our shareholders. With line of sight on new firm transportation capacity to premium markets, Seneca will maintain its focus on prudently developing its Utica Shale reserves in our Western Development Area, where we are able to utilize our existing infrastructure, including gathering facilities, to enhance our consolidated upstream and midstream returns. Our Gathering business will continue to grow in lockstep with Seneca’s production, and is expected to see near-term annual revenue growth of approximately 10%. Our Pipeline and Storage business is targeting the completion of multiple expansion projects by the close of calendar 2021, which we expect to collectively grow annual revenues by approximately $65 million. And, our Utility business will continue to make investments to modernize its facilities, and to enhance the long-term reliability of our distribution systems, which we expect to modestly grow rate base and margin. All told, National Fuel is poised for continuing long-term success.”
Additional details on the Company's updated forecast assumptions and business segment guidance for fiscal 2020 are outlined in the table on page 7.
DISCUSSION OF FOURTH QUARTER RESULTS BY SEGMENT
The following discussion of earnings of each operating segment for the quarter ended September 30, 2019, is summarized in a tabular form on pages 8 and 9 of this report (earnings drivers for the fiscal year ended September 30, 2019 are summarized on pages 10 and 11). It may be helpful to refer to those tables while reviewing this discussion. As of the quarter ended September 30, 2019, the Company is no longer reporting the Energy Marketing operations as a reportable segment. The Energy Marketing operations have been included in the All Other category in the disclosures and tables that follow below. Prior year segment information has been restated to reflect this change in presentation.
Note that management defines Adjusted Operating Results as reported GAAP earnings adjusted for items impacting comparability, and Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, 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 | |||||||||||
| September 30, | |||||||||||
| (in thousands) | 2019 | 2018 | Variance | ||||||||
| GAAP Earnings | $ | 25,208 | $ | 19,580 | $ | 5,628 | |||||
| Remeasurement of deferred taxes under 2017 Tax Reform | — | 2,804 | (2,804 | ) | |||||||
| Mark-to-market adjustments due to hedge ineffectiveness, net of tax | (1,037 | ) | 261 | (1,298 | ) | ||||||
| Premium paid on early redemption of debt, net of tax | — | 727 | (727 | ) | |||||||
| Adjusted Operating Results | $ | 24,171 | $ | 23,372 | $ | 799 | |||||
| Adjusted EBITDA | $ | 89,509 | $ | 81,194 | $ | 8,315 | |||||
Seneca’s fourth quarter GAAP earnings increased $5.6 million versus the prior year, which includes the net impact of non-cash mark-to-market adjustments recorded during the current and prior year relating to hedge ineffectiveness and certain items that impacted earnings in the prior year that did not recur in the current year (see table above). Excluding these items, Seneca’s fourth quarter earnings increased $0.8 million as the positive impacts of higher production and better realized crude oil prices on operating revenues, along with a lower effective income tax rate, were mostly offset by the negative impacts of lower realized natural gas prices on operating revenues and higher operating expenses.
Seneca produced 59.1 Bcfe during the fourth quarter, an increase of 11.8 Bcfe, or 25%, from the prior year. Natural gas production increased 11.7 billion cubic feet (“Bcf”), or 27%, due primarily to production from new Marcellus and Utica wells completed and connected to sales in Appalachia. Net production in Seneca’s Eastern Development Area increased 7.7 Bcf to 30.7 Bcf due largely to increased Utica development in the EDA-Tioga area and Marcellus development in the EDA-Lycoming area. Net gas production increased 4.0 Bcf to 24.1 Bcf in the WDA-Clermont area, where Seneca continues to experience stronger production and shallower declines from its Utica development program. Seneca’s oil production for the fourth quarter increased 14 thousand barrels ("Mbbl") from the prior year due to new wells coming online in the Pioneer development area in California.
Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.26 per Mcf, a decrease of $0.19 per Mcf from the prior year. This decline was largely due to lower NYMEX prices and lower spot pricing at local sales points in Pennsylvania. Seneca's average realized oil price, after the impact of hedging, was $61.00 per barrel ("Bbl"), an increase of $3.29 per Bbl over the prior year. The improvement in oil price realizations was due primarily to stronger price differentials at local sales points in California relative to West Texas Intermediate (WTI) prices.
The $22.3 million increase in Seneca’s total operating expenses was largely due to the higher production during the quarter. On a unit of production basis, operating expenses excluding DD&A expense declined $0.07 per thousand cubic feet equivalent (“Mcfe”), or 5%, to $1.25 per Mcfe from the $1.32 per Mcfe realized in the prior year. Lease operating and transportation (“LOE”) expense, which increased $8.8 million, includes the fees paid to the Company’s Gathering segment for gathering and compression services used to connect Seneca’s Marcellus and Utica production to sales points along interstate pipelines. The $10.6 million increase in DD&A expense was also due to a higher DD&A rate, which was driven by an increase in capitalized costs in Seneca’s full cost pool. The decline in Seneca’s effective tax rate was largely driven by the positive impact of the 2017 Tax Reform Act, a higher Enhanced Oil Recovery credit, and lower state taxes in the current year.
Proved Reserves Year-End Update
Seneca’s total proved natural gas and crude oil reserves at September 30, 2019 were 3,099 Bcfe, an increase of 575 Bcfe, or 23%, from the proved reserves reported at September 30, 2018. Seneca’s proved developed reserves at the end of fiscal 2019 were 2,081 Bcfe, representing 67% of total proved reserves. The proved reserves base is approximately 95% natural gas and 5% oil. In fiscal 2019, Seneca recorded 691 Bcfe of proved reserve extensions and discoveries, due primarily to Utica and Marcellus locations in Appalachia, and 96 Bcfe of net positive revisions due largely to improvements in well performance and Seneca’s shift towards drilling wells with longer laterals. As a result, Seneca replaced 372% of its fiscal 2019 production. Seneca’s three-year average finding and development cost at the end of fiscal 2019 was $0.56 per Mcfe, down $0.18 per Mcfe from the three-year average of $0.74 per Mcfe at the end of fiscal 2018.
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 | |||||||||||
| September 30, | |||||||||||
| (in thousands) | 2019 | 2018 | Variance | ||||||||
| GAAP Earnings | $ | 15,368 | $ | 15,337 | $ | 31 | |||||
| Adjusted EBITDA | $ | 35,747 | $ | 37,699 | $ | (1,952 | ) | ||||
The Pipeline and Storage segment’s fourth quarter GAAP earnings were largely unchanged versus the prior year, as lower operating revenues were offset by lower operation and maintenance (“O&M”) and interest expenses. The $4.5 million decrease in operating revenues was due largely to the expiration of a significant firm transportation contract on the Empire system in December 2018. The impact of the contract expiration was partially offset by an increase in Empire’s transportation rates following the settlement of Empire’s rate case that became effective in January 2019. O&M expense decreased $2.7 million due primarily to lower compressor and facility maintenance costs. Interest expense decreased $0.8 million due primarily to lower borrowing rates.
Gathering Segment
The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s 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 | |||||||||||
| September 30, | |||||||||||
| (in thousands) | 2019 | 2018 | Variance | ||||||||
| GAAP Earnings | $ | 16,902 | $ | 14,783 | $ | 2,119 | |||||
| Remeasurement of deferred taxes under 2017 Tax Reform | — | 12 | (12 | ) | |||||||
| Adjusted Operating Results | $ | 16,902 | $ | 14,795 | $ | 2,107 | |||||
| Adjusted EBITDA | $ | 29,895 | $ | 23,814 | $ | 6,081 | |||||
The Gathering segment’s fourth quarter GAAP earnings increased $2.1 million over the prior year. The increase was driven primarily by higher operating revenues, which were partially offset by modest increases in O&M expense and DD&A expense and the impact of a higher effective tax rate. Operating revenues increased $6.7 million, or 24%, due primarily to a 12.7 Bcf increase in gathered volume from Seneca’s Appalachian natural gas production. The $0.6 million increase in O&M expense was due to an increase in compressor station operating and preventative maintenance activity as a result of higher throughput during the quarter. The $0.6 million increase in DD&A expense was due primarily to a $46 million increase in average plant assets in-service versus the prior year.
The increase in the Gathering segment’s effective tax rate was largely due to a deferred state tax adjustment that lowered prior year income tax expense. This nonrecurring item was partially offset by the impact of the 2017 Tax Reform Act, which lowered the Company’s statutory federal income tax rate from a blended 24.5% in fiscal 2018 to 21% in fiscal 2019.
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 | |||||||||||
| September 30, | |||||||||||
| (in thousands) | 2019 | 2018 | Variance | ||||||||
| GAAP Earnings | $ | (7,728 | ) | $ | (7,067 | ) | $ | (661 | ) | ||
| Adjusted EBITDA | $ | 6,714 | $ | 10,514 | $ | (3,800 | ) | ||||
The $0.7 million increase in the Utility segment’s fourth quarter net loss was due largely to lower margin (operating revenues less purchased gas sold), partially offset by lower interest expense. A number of items contributed to the decrease in customer margin, including warmer weather and the net impact of revenue adjustments related to regulatory rate mechanisms. These items were offset partially by an increase in revenues relating to a system modernization tracking mechanism that became effective in December 2018. Interest expense decreased $1.0 million due primarily to lower borrowing rates following the Company’s early refinancing of an 8.75% coupon 10-year note at the end of the prior year.
Corporate and All Other
The Company’s operations that are included in Corporate and All Other, which now include the Company’s energy marketing business, generated a combined net loss of $2.5 million in the current year fourth quarter, which was $2.1 million lower than the loss of $4.6 million in the prior-year fourth quarter. The reduction in the net loss was driven primarily by lower interest expense and lower income tax expense. The lower income tax expense was due, in part, to the impact of the 2017 Tax Reform Act, which resulted in a remeasurement of deferred taxes that increased income tax expense in the prior year.
EARNINGS TELECONFERENCE
The Company will host a conference call on Friday, November 1, 2019, 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 “4581569”. 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 “4581569”. Both the webcast and a telephonic replay will be available until the close of business on Friday, November 8, 2019.
National Fuel is an integrated energy company reporting financial results for four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. 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: 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; 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 the price of natural gas or oil; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; 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; 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 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
AND SUBSIDIARIES
GUIDANCE SUMMARY
As discussed on pages 2 and 3, the Company is revising its earnings guidance for fiscal 2020. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below.
| Preliminary FY 2020 Guidance | Updated FY 2020 Guidance | ||
| Consolidated Earnings per Share | $3.25 to $3.55 | $3.00 to $3.30 | |
| Consolidated Effective Tax Rate | ~ 25% | ~ 25% | |
| Capital Expenditures (Millions) | |||
| Exploration and Production | $415 - $455 | $415 - $455 | |
| Pipeline and Storage | $180 - $215 | $180 - $215 | |
| Gathering | $40 - $50 | $40 - $50 | |
| Utility | $90 - $100 | $90 - $100 | |
| Consolidated Capital Expenditures | $725 - $820 | $725 - $820 | |
| Exploration & Production Segment Guidance | |||
| Commodity Price Assumptions | |||
| NYMEX natural gas price | $2.55 /MMBtu | $2.40 /MMBtu | |
| Appalachian basin spot price (winter | summer) | $2.20 /MMBtu | $2.00 /MMBtu | $2.20 /MMBtu | $2.00 /MMBtu | |
| NYMEX (WTI) crude oil price | $55.00 /Bbl | $55.00 /Bbl | |
| California oil price premium (% of WTI) | 108% | 106% | |
| Production (Bcfe) | |||
| East Division - Appalachia | 219 to 229 | 219 to 229 | |
| West Division - California | ~ 16 | ~ 16 | |
| Total Production | 235 to 245 | 235 to 245 | |
| E&P Operating Costs ($/Mcfe) | |||
| LOE | $0.85 - $0.90 | $0.85 - $0.89 | |
| G&A | $0.25 - $0.30 | $0.27 - $0.30 | |
| DD&A | $0.70 - $0.75 | $0.73 - $0.77 | |
| Other Business Segment Guidance (Millions) | |||
| Gathering Segment Revenues | $135 - $145 | $135 - $145 | |
| Pipeline and Storage Segment Revenues | $290 - $295 | $290 - $295 |
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS | |||||||||||||||||||||||
| QUARTER ENDED SEPTEMBER 30, 2019 | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Upstream | Midstream | Downstream | |||||||||||||||||||||
| Exploration & | Pipeline & | Corporate / | |||||||||||||||||||||
| (Thousands of Dollars) | Production | Storage | Gathering | Utility | All Other | Consolidated* | |||||||||||||||||
| Fourth quarter 2018 GAAP earnings | $ | 19,580 | $ | 15,337 | $ | 14,783 | $ | (7,067 | ) | $ | (4,639 | ) | $ | 37,994 | |||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Remeasurement of deferred taxes under 2017 Tax Reform | 2,804 | 12 | 700 | 3,516 | |||||||||||||||||||
| Mark-to-market adjustments due to hedge ineffectiveness | 346 | 346 | |||||||||||||||||||||
| Tax impact of mark-to-market adjustments due to hedge ineffectiveness | (85 | ) | (85 | ) | |||||||||||||||||||
| Premium paid on early redemption of debt | 962 | 962 | |||||||||||||||||||||
| Tax impact of premium paid on early redemption of debt | (235 | ) | (235 | ) | |||||||||||||||||||
| Fourth quarter 2018 adjusted operating results | 23,372 | 15,337 | 14,795 | (7,067 | ) | (3,939 | ) | 42,498 | |||||||||||||||
| Drivers of adjusted operating results** | |||||||||||||||||||||||
| Upstream Revenues | |||||||||||||||||||||||
| Higher (lower) natural gas production | 21,591 | 21,591 | |||||||||||||||||||||
| Higher (lower) crude oil production | 593 | 593 | |||||||||||||||||||||
| Higher (lower) realized natural gas prices, after hedging | (7,923 | ) | (7,923 | ) | |||||||||||||||||||
| Higher (lower) realized crude oil prices, after hedging | 1,521 | 1,521 | |||||||||||||||||||||
| Midstream Revenues | |||||||||||||||||||||||
| Higher (lower) operating revenues | (3,404 | ) | 5,051 | 1,647 | |||||||||||||||||||
| Downstream Margins*** | |||||||||||||||||||||||
| Impact of usage and weather | (1,131 | ) | (1,131 | ) | |||||||||||||||||||
| System modernization tracker revenues | 484 | 484 | |||||||||||||||||||||
| Regulatory revenue adjustments | (757 | ) | (757 | ) | |||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | (6,619 | ) | (6,619 | ) | |||||||||||||||||||
| Lower (higher) operating expenses | (1,862 | ) | 2,043 | (464 | ) | (815 | ) | (1,098 | ) | ||||||||||||||
| Lower (higher) depreciation / depletion | (7,983 | ) | (489 | ) | (8,472 | ) | |||||||||||||||||
| Other Income (Expense) | |||||||||||||||||||||||
| (Higher) lower other deductions | 860 | 1,394 | 2,254 | ||||||||||||||||||||
| (Higher) lower interest expense | (672 | ) | 629 | (140 | ) | 751 | 736 | 1,304 | |||||||||||||||
| Income Taxes | |||||||||||||||||||||||
| Impact of tax rate reduction due to 2017 Tax Reform | 1,543 | 675 | 547 | (562 | ) | (23 | ) | 2,180 | |||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 1,551 | (473 | ) | (2,408 | ) | 895 | 726 | 291 | |||||||||||||||
| All other / rounding | (941 | ) | (299 | ) | 10 | (920 | ) | 781 | (1,369 | ) | |||||||||||||
| Fourth quarter 2019 adjusted operating results | 24,171 | 15,368 | 16,902 | (7,728 | ) | (1,719 | ) | 46,994 | |||||||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Mark-to-market adjustments due to hedge ineffectiveness | 1,313 | 1,313 | |||||||||||||||||||||
| Tax impact of mark-to-market adjustments due to hedge ineffectiveness | (276 | ) | (276 | ) | |||||||||||||||||||
| Unrealized gain (loss) on other investments | (949 | ) | (949 | ) | |||||||||||||||||||
| Tax impact of unrealized gain (loss) on other investments | 199 | 199 | |||||||||||||||||||||
| Fourth quarter 2019 GAAP earnings | $ | 25,208 | $ | 15,368 | $ | 16,902 | $ | (7,728 | ) | $ | (2,469 | ) | $ | 47,281 | |||||||||
| * Amounts do not reflect intercompany eliminations | |||||||||||||||||||||||
| ** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes". | |||||||||||||||||||||||
| *** Downstream margin defined as operating revenues less purchased gas expense. | |||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE | |||||||||||||||||||||||
| QUARTER ENDED SEPTEMBER 30, 2019 | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Upstream | Midstream | Downstream | |||||||||||||||||||||
| Exploration & | Pipeline & | Corporate / | |||||||||||||||||||||
| Production | Storage | Gathering | Utility | All Other | Consolidated* | ||||||||||||||||||
| Fourth quarter 2018 GAAP earnings per share | $ | 0.23 | $ | 0.18 | $ | 0.17 | $ | (0.08 | ) | $ | (0.06 | ) | $ | 0.44 | |||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Remeasurement of deferred taxes under 2017 Tax Reform | 0.03 | — | 0.01 | 0.04 | |||||||||||||||||||
| Mark-to-market adjustments due to hedge ineffectiveness, net of tax | — | — | |||||||||||||||||||||
| Premium paid on early redemption of debt, net of tax | 0.01 | 0.01 | |||||||||||||||||||||
| Fourth quarter 2018 adjusted operating results per share | 0.27 | 0.18 | 0.17 | (0.08 | ) | (0.05 | ) | 0.49 | |||||||||||||||
| Drivers of adjusted operating results** | |||||||||||||||||||||||
| Upstream Revenues | |||||||||||||||||||||||
| Higher (lower) natural gas production | 0.25 | 0.25 | |||||||||||||||||||||
| Higher (lower) crude oil production | 0.01 | 0.01 | |||||||||||||||||||||
| Higher (lower) realized natural gas prices, after hedging | (0.09 | ) | (0.09 | ) | |||||||||||||||||||
| Higher (lower) realized crude oil prices, after hedging | 0.02 | 0.02 | |||||||||||||||||||||
| Midstream Revenues | |||||||||||||||||||||||
| Higher (lower) operating revenues | (0.04 | ) | 0.06 | 0.02 | |||||||||||||||||||
| Downstream Margins*** | |||||||||||||||||||||||
| Impact of usage and weather | (0.01 | ) | (0.01 | ) | |||||||||||||||||||
| System modernization tracker revenues | 0.01 | 0.01 | |||||||||||||||||||||
| Regulatory revenue adjustments | (0.01 | ) | (0.01 | ) | |||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | (0.08 | ) | (0.08 | ) | |||||||||||||||||||
| Lower (higher) operating expenses | (0.02 | ) | 0.02 | (0.01 | ) | (0.01 | ) | (0.02 | ) | ||||||||||||||
| Lower (higher) depreciation / depletion | (0.09 | ) | (0.01 | ) | (0.10 | ) | |||||||||||||||||
| Other Income (Expense) | |||||||||||||||||||||||
| (Higher) lower other deductions | 0.01 | 0.02 | 0.03 | ||||||||||||||||||||
| (Higher) lower interest expense | (0.01 | ) | 0.01 | — | 0.01 | 0.01 | 0.02 | ||||||||||||||||
| Income Taxes | |||||||||||||||||||||||
| Impact of tax rate reduction due to 2017 Tax Reform | 0.02 | 0.01 | 0.01 | (0.01 | ) | — | 0.03 | ||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 0.02 | (0.01 | ) | (0.03 | ) | 0.01 | 0.01 | — | |||||||||||||||
| All other / rounding | (0.02 | ) | — | — | (0.02 | ) | 0.01 | (0.03 | ) | ||||||||||||||
| Fourth quarter 2019 adjusted operating results per share | 0.28 | 0.18 | 0.19 | (0.09 | ) | (0.02 | ) | 0.54 | |||||||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Mark-to-market adjustments due to hedge ineffectiveness, net of tax | 0.01 | 0.01 | |||||||||||||||||||||
| Unrealized gain (loss) on other investments, net of tax | (0.01 | ) | (0.01 | ) | |||||||||||||||||||
| Fourth quarter 2019 GAAP earnings per share | $ | 0.29 | $ | 0.18 | $ | 0.19 | $ | (0.09 | ) | $ | (0.03 | ) | $ | 0.54 | |||||||||
| * Amounts do not reflect intercompany eliminations | |||||||||||||||||||||||
| ** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes". | |||||||||||||||||||||||
| *** Downstream margin defined as operating revenues less purchased gas expense. | |||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS | |||||||||||||||||||||||
| TWELVE MONTHS ENDED SEPTEMBER 30, 2019 | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Upstream | Midstream | Downstream | |||||||||||||||||||||
| Exploration & | Pipeline & | Corporate / | |||||||||||||||||||||
| (Thousands of Dollars) | Production | Storage | Gathering | Utility | All Other | Consolidated* | |||||||||||||||||
| Fiscal 2018 GAAP earnings | $ | 180,632 | $ | 97,246 | $ | 83,519 | $ | 51,217 | $ | (21,093 | ) | $ | 391,521 | ||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Remeasurement of deferred taxes under 2017 Tax Reform | (73,706 | ) | (14,100 | ) | (34,488 | ) | 18,810 | (103,484 | ) | ||||||||||||||
| Mark-to-market adjustments due to hedge ineffectiveness | 782 | 782 | |||||||||||||||||||||
| Tax impact of mark-to-market adjustments due to hedge ineffectiveness | (192 | ) | (192 | ) | |||||||||||||||||||
| Premium paid on early redemption of debt | 962 | 962 | |||||||||||||||||||||
| Tax impact of premium paid on early redemption of debt | (235 | ) | (235 | ) | |||||||||||||||||||
| Fiscal 2018 adjusted operating results | 108,243 | 83,146 | 49,031 | 51,217 | (2,283 | ) | 289,354 | ||||||||||||||||
| Drivers of adjusted operating results** | |||||||||||||||||||||||
| Upstream Revenues | |||||||||||||||||||||||
| Higher (lower) natural gas production | 66,573 | 66,573 | |||||||||||||||||||||
| Higher (lower) crude oil production | (9,372 | ) | (9,372 | ) | |||||||||||||||||||
| Higher (lower) realized natural gas prices, after hedging | (12,350 | ) | (12,350 | ) | |||||||||||||||||||
| Higher (lower) realized crude oil prices, after hedging | 5,243 | 5,243 | |||||||||||||||||||||
| Midstream Revenues | |||||||||||||||||||||||
| Higher (lower) operating revenues | (9,092 | ) | 14,479 | 5,387 | |||||||||||||||||||
| Downstream Margins*** | |||||||||||||||||||||||
| Impact of usage and weather | 2,554 | 2,554 | |||||||||||||||||||||
| System modernization tracker revenues | 3,085 | 3,085 | |||||||||||||||||||||
| Lower (higher) refund provision on tax rate change | (3,783 | ) | (3,783 | ) | |||||||||||||||||||
| Regulatory revenue adjustments | 416 | 416 | |||||||||||||||||||||
| Higher (lower) energy marketing margins | (3,841 | ) | (3,841 | ) | |||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | (18,048 | ) | (18,048 | ) | |||||||||||||||||||
| Lower (higher) operating expenses | (3,497 | ) | (5,914 | ) | (2,144 | ) | (1,710 | ) | (13,265 | ) | |||||||||||||
| Lower (higher) property, franchise and other taxes | (2,511 | ) | (1,055 | ) | (3,566 | ) | |||||||||||||||||
| Lower (higher) depreciation / depletion | (23,035 | ) | (1,120 | ) | (2,057 | ) | (26,212 | ) | |||||||||||||||
| Other Income (Expense) | |||||||||||||||||||||||
| (Higher) lower other deductions | 2,439 | 3,814 | 6,253 | ||||||||||||||||||||
| (Higher) lower interest expense | (1,096 | ) | 1,692 | 116 | 2,501 | 1,925 | 5,138 | ||||||||||||||||
| Income Taxes | |||||||||||||||||||||||
| Impact of tax rate reduction due to 2017 Tax Reform | 5,099 | 2,895 | 2,516 | 2,251 | (315 | ) | 12,446 | ||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | (5,825 | ) | 1,411 | (3,801 | ) | 1,089 | 1,792 | (5,334 | ) | ||||||||||||||
| All other / rounding | (263 | ) | (391 | ) | (227 | ) | (563 | ) | 16 | (1,428 | ) | ||||||||||||
| Fiscal 2019 adjusted operating results | 109,161 | 74,011 | 57,913 | 60,871 | (2,706 | ) | 299,250 | ||||||||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Remeasurement of deferred taxes under 2017 Tax Reform | 990 | 500 | 3,510 | 5,000 | |||||||||||||||||||
| Mark-to-market adjustments due to hedge ineffectiveness | 2,096 | 2,096 | |||||||||||||||||||||
| Tax impact of mark-to-market adjustments due to hedge ineffectiveness | (440 | ) | (440 | ) | |||||||||||||||||||
| Unrealized gain (loss) on other investments | (2,045 | ) | (2,045 | ) | |||||||||||||||||||
| Tax impact of unrealized gain (loss) on other investments | 429 | 429 | |||||||||||||||||||||
| Fiscal 2019 GAAP earnings | $ | 111,807 | $ | 74,011 | $ | 58,413 | $ | 60,871 | $ | (812 | ) | $ | 304,290 | ||||||||||
| * Amounts do not reflect intercompany eliminations | |||||||||||||||||||||||
| ** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes". | |||||||||||||||||||||||
| *** Downstream margin defined as operating revenues less purchased gas expense. | |||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE | |||||||||||||||||||||||
| TWELVE MONTHS ENDED SEPTEMBER 30, 2019 | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Upstream | Midstream | Downstream | |||||||||||||||||||||
| Exploration & | Pipeline & | Corporate / | |||||||||||||||||||||
| Production | Storage | Gathering | Utility | All Other | Consolidated* | ||||||||||||||||||
| Fiscal 2018 GAAP earnings per share | $ | 2.09 | $ | 1.13 | $ | 0.97 | $ | 0.59 | $ | (0.25 | ) | $ | 4.53 | ||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Remeasurement of deferred taxes under 2017 Tax Reform | (0.85 | ) | (0.16 | ) | (0.40 | ) | 0.21 | (1.20 | ) | ||||||||||||||
| Mark-to-market adjustments due to hedge ineffectiveness, net of tax | 0.01 | 0.01 | |||||||||||||||||||||
| Premium paid on early redemption of debt, net of tax | 0.01 | 0.01 | |||||||||||||||||||||
| Rounding | (0.01 | ) | (0.01 | ) | — | — | 0.02 | — | |||||||||||||||
| Fiscal 2018 adjusted operating results per share | 1.25 | 0.96 | 0.57 | 0.59 | (0.02 | ) | 3.35 | ||||||||||||||||
| Drivers of adjusted operating results** | |||||||||||||||||||||||
| Upstream Revenues | |||||||||||||||||||||||
| Higher (lower) natural gas production | 0.77 | 0.77 | |||||||||||||||||||||
| Higher (lower) crude oil production | (0.11 | ) | (0.11 | ) | |||||||||||||||||||
| Higher (lower) realized natural gas prices, after hedging | (0.14 | ) | (0.14 | ) | |||||||||||||||||||
| Higher (lower) realized crude oil prices, after hedging | 0.06 | 0.06 | |||||||||||||||||||||
| Midstream Revenues | |||||||||||||||||||||||
| Higher (lower) operating revenues | (0.10 | ) | 0.17 | 0.07 | |||||||||||||||||||
| Downstream Margins*** | |||||||||||||||||||||||
| Impact of usage and weather | 0.03 | 0.03 | |||||||||||||||||||||
| System modernization tracker revenues | 0.04 | 0.04 | |||||||||||||||||||||
| Lower (higher) refund provision on tax rate change | (0.04 | ) | (0.04 | ) | |||||||||||||||||||
| Regulatory revenue adjustments | — | — | |||||||||||||||||||||
| Higher (lower) energy marketing margins | (0.04 | ) | (0.04 | ) | |||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | (0.21 | ) | (0.21 | ) | |||||||||||||||||||
| Lower (higher) operating expenses | (0.04 | ) | (0.07 | ) | (0.02 | ) | (0.02 | ) | (0.15 | ) | |||||||||||||
| Lower (higher) property, franchise and other taxes | (0.03 | ) | (0.01 | ) | (0.04 | ) | |||||||||||||||||
| Lower (higher) depreciation / depletion | (0.27 | ) | (0.01 | ) | (0.02 | ) | (0.30 | ) | |||||||||||||||
| Other Income (Expense) | |||||||||||||||||||||||
| (Higher) lower other deductions | 0.03 | 0.04 | 0.07 | ||||||||||||||||||||
| (Higher) lower interest expense | (0.01 | ) | 0.02 | — | 0.03 | 0.02 | 0.06 | ||||||||||||||||
| Income Taxes | |||||||||||||||||||||||
| Impact of tax rate reduction due to 2017 Tax Reform | 0.06 | 0.03 | 0.03 | 0.03 | — | 0.15 | |||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | (0.07 | ) | 0.02 | (0.04 | ) | 0.01 | 0.02 | (0.06 | ) | ||||||||||||||
| All other / rounding | — | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.06 | ) | ||||||||||||
| Fiscal 2019 adjusted operating results per share | 1.26 | 0.85 | 0.67 | 0.70 | (0.03 | ) | 3.45 | ||||||||||||||||
| Items impacting comparability: | |||||||||||||||||||||||
| Remeasurement of deferred taxes under 2017 Tax Reform | 0.01 | 0.01 | 0.04 | 0.06 | |||||||||||||||||||
| Mark-to-market adjustments due to hedge ineffectiveness, net of tax | 0.02 | 0.02 | |||||||||||||||||||||
| Unrealized gain (loss) on other investments, net of tax | (0.02 | ) | (0.02 | ) | |||||||||||||||||||
| Rounding | (0.01 | ) | 0.01 | — | |||||||||||||||||||
| Fiscal 2019 GAAP earnings per share | $ | 1.29 | $ | 0.85 | $ | 0.67 | $ | 0.70 | $ | — | $ | 3.51 | |||||||||||
| * Amounts do not reflect intercompany eliminations | |||||||||||||||||||||||
| ** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes". | |||||||||||||||||||||||
| *** Downstream margin defined as operating revenues less purchased gas expense. | |||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||
| (Thousands of Dollars, except per share amounts) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| SUMMARY OF OPERATIONS | 2019 | 2018 | 2019 | 2018 | |||||||||||
| Operating Revenues: | |||||||||||||||
| Utility and Energy Marketing Revenues | $ | 79,925 | $ | 93,240 | $ | 860,985 | $ | 812,474 | |||||||
| Exploration and Production and Other Revenues | 166,262 | 143,998 | 636,528 | 569,808 | |||||||||||
| Pipeline and Storage and Gathering Revenues | 47,153 | 51,958 | 195,819 | 210,386 | |||||||||||
| 293,340 | 289,196 | 1,693,332 | 1,592,668 | ||||||||||||
| Operating Expenses: | |||||||||||||||
| Purchased Gas | 4,728 | 14,968 | 386,265 | 337,822 | |||||||||||
| Operation and Maintenance: | |||||||||||||||
| Utility and Energy Marketing | 39,390 | 38,537 | 171,472 | 168,885 | |||||||||||
| Exploration and Production and Other | 38,847 | 34,656 | 147,457 | 139,546 | |||||||||||
| Pipeline and Storage and Gathering | 30,926 | 33,067 | 111,783 | 101,338 | |||||||||||
| Property, Franchise and Other Taxes | 20,839 | 20,148 | 88,886 | 84,393 | |||||||||||
| Depreciation, Depletion and Amortization | 74,670 | 63,159 | 275,660 | 240,961 | |||||||||||
| 209,400 | 204,535 | 1,181,523 | 1,072,945 | ||||||||||||
| Operating Income | 83,940 | 84,661 | 511,809 | 519,723 | |||||||||||
| Other Income (Expense): | |||||||||||||||
| Other Income (Deductions) | 1,435 | (968 | ) | (15,542 | ) | (21,174 | ) | ||||||||
| Interest Expense on Long-Term Debt | (25,598 | ) | (28,534 | ) | (101,614 | ) | (110,946 | ) | |||||||
| Other Interest Expense | (1,081 | ) | (834 | ) | (5,142 | ) | (3,576 | ) | |||||||
| Income Before Income Taxes | 58,696 | 54,325 | 389,511 | 384,027 | |||||||||||
| Income Tax Expense (Benefit) | 11,415 | 16,331 | 85,221 | (7,494 | ) | ||||||||||
| Net Income Available for Common Stock | $ | 47,281 | $ | 37,994 | $ | 304,290 | $ | 391,521 | |||||||
| Earnings Per Common Share | |||||||||||||||
| Basic | $ | 0.55 | $ | 0.44 | $ | 3.53 | $ | 4.56 | |||||||
| Diluted | $ | 0.54 | $ | 0.44 | $ | 3.51 | $ | 4.53 | |||||||
| Weighted Average Common Shares: | |||||||||||||||
| Used in Basic Calculation | 86,315,038 | 85,953,204 | 86,235,550 | 85,830,597 | |||||||||||
| Used in Diluted Calculation | 86,807,821 | 86,650,677 | 86,773,259 | 86,439,698 | |||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||
| AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| September 30, | September 30, | ||||||
| (Thousands of Dollars) | 2019 | 2018 | |||||
| ASSETS | |||||||
| Property, Plant and Equipment | $ | 11,204,838 | $ | 10,439,839 | |||
| Less - Accumulated Depreciation, Depletion and Amortization | 5,695,328 | 5,462,696 | |||||
| Net Property, Plant and Equipment | 5,509,510 | 4,977,143 | |||||
| Current Assets: | |||||||
| Cash and Temporary Cash Investments | 20,428 | 229,606 | |||||
| Hedging Collateral Deposits | 6,832 | 3,441 | |||||
| Receivables - Net | 139,956 | 141,498 | |||||
| Unbilled Revenue | 18,758 | 24,182 | |||||
| Gas Stored Underground | 36,632 | 37,813 | |||||
| Materials and Supplies - at average cost | 40,717 | 35,823 | |||||
| Unrecovered Purchased Gas Costs | 2,246 | 4,204 | |||||
| Other Current Assets | 97,054 | 68,024 | |||||
| Total Current Assets | 362,623 | 544,591 | |||||
| Other Assets: | |||||||
| Recoverable Future Taxes | 115,197 | 115,460 | |||||
| Unamortized Debt Expense | 14,005 | 15,975 | |||||
| Other Regulatory Assets | 167,320 | 112,918 | |||||
| Deferred Charges | 33,843 | 40,025 | |||||
| Other Investments | 144,917 | 132,545 | |||||
| Goodwill | 5,476 | 5,476 | |||||
| Prepaid Post-Retirement Benefit Costs | 60,517 | 82,733 | |||||
| Fair Value of Derivative Financial Instruments | 48,669 | 9,518 | |||||
| Other | 80 | 102 | |||||
| Total Other Assets | 590,024 | 514,752 | |||||
| Total Assets | $ | 6,462,157 | $ | 6,036,486 | |||
| CAPITALIZATION AND LIABILITIES | |||||||
| Capitalization: | |||||||
| Comprehensive Shareholders' Equity | |||||||
| Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and | |||||||
| Outstanding - 86,315,287 Shares and 85,956,814 Shares, Respectively | $ | 86,315 | $ | 85,957 | |||
| Paid in Capital | 832,264 | 820,223 | |||||
| Earnings Reinvested in the Business | 1,272,601 | 1,098,900 | |||||
| Accumulated Other Comprehensive Loss | (52,155 | ) | (67,750 | ) | |||
| Total Comprehensive Shareholders' Equity | 2,139,025 | 1,937,330 | |||||
| Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs | 2,133,718 | 2,131,365 | |||||
| Total Capitalization | 4,272,743 | 4,068,695 | |||||
| Current and Accrued Liabilities: | |||||||
| Notes Payable to Banks and Commercial Paper | 55,200 | — | |||||
| Current Portion of Long-Term Debt | — | — | |||||
| Accounts Payable | 132,208 | 160,031 | |||||
| Amounts Payable to Customers | 7,445 | 3,394 | |||||
| Dividends Payable | 37,547 | 36,532 | |||||
| Interest Payable on Long-Term Debt | 18,508 | 19,062 | |||||
| Customer Advances | 13,044 | 13,609 | |||||
| Customer Security Deposits | 16,210 | 25,703 | |||||
| Other Accruals and Current Liabilities | 139,600 | 132,693 | |||||
| Fair Value of Derivative Financial Instruments | 5,574 | 49,036 | |||||
| Total Current and Accrued Liabilities | 425,336 | 440,060 | |||||
| Deferred Credits: | |||||||
| Deferred Income Taxes | 653,382 | 512,686 | |||||
| Taxes Refundable to Customers | 366,503 | 370,628 | |||||
| Cost of Removal Regulatory Liability | 221,699 | 212,311 | |||||
| Other Regulatory Liabilities | 138,939 | 146,743 | |||||
| Pension and Other Post-Retirement Liabilities | 133,729 | 66,103 | |||||
| Asset Retirement Obligations | 127,458 | 108,235 | |||||
| Other Deferred Credits | 122,368 | 111,025 | |||||
| Total Deferred Credits | 1,764,078 | 1,527,731 | |||||
| Commitments and Contingencies | — | — | |||||
| Total Capitalization and Liabilities | $ | 6,462,157 | $ | 6,036,486 | |||
| NATIONAL FUEL GAS COMPANY | |||||||
| AND SUBSIDIARIES | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (Unaudited) | |||||||
| Twelve Months Ended | |||||||
| September 30, | |||||||
| (Thousands of Dollars) | 2019 | 2018 | |||||
| Operating Activities: | |||||||
| Net Income Available for Common Stock | $ | 304,290 | $ | 391,521 | |||
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
| Depreciation, Depletion and Amortization | 275,660 | 240,961 | |||||
| Deferred Income Taxes | 122,265 | (18,153 | ) | ||||
| Stock-Based Compensation | 21,186 | 15,762 | |||||
| Other | 8,608 | 16,133 | |||||
| Change in: | |||||||
| Receivables and Unbilled Revenue | 6,379 | (30,882 | ) | ||||
| Gas Stored Underground and Materials and Supplies | (3,713 | ) | (4,021 | ) | |||
| Unrecovered Purchased Gas Costs | 1,958 | 419 | |||||
| Other Current Assets | (29,030 | ) | (16,519 | ) | |||
| Accounts Payable | (24,770 | ) | 17,962 | ||||
| Amounts Payable to Customers | 4,051 | 3,394 | |||||
| Customer Advances | (565 | ) | (2,092 | ) | |||
| Customer Security Deposits | (9,493 | ) | 5,331 | ||||
| Other Accruals and Current Liabilities | 10,992 | 3,865 | |||||
| Other Assets | 5,115 | (9,556 | ) | ||||
| Other Liabilities | 1,550 | 1,178 | |||||
| Net Cash Provided by Operating Activities | $ | 694,483 | $ | 615,303 | |||
| Investing Activities: | |||||||
| Capital Expenditures | $ | (788,938 | ) | $ | (584,004 | ) | |
| Net Proceeds from Sale of Oil and Gas Producing Properties | — | 55,506 | |||||
| Other | (10,237 | ) | (389 | ) | |||
| Net Cash Used in Investing Activities | $ | (799,175 | ) | $ | (528,887 | ) | |
| Financing Activities: | |||||||
| Changes in Notes Payable to Banks and Commercial Paper | $ | 55,200 | $ | — | |||
| Reduction of Long-Term Debt | — | (566,512 | ) | ||||
| Dividends Paid on Common Stock | (147,418 | ) | (143,258 | ) | |||
| Net Proceeds From Issuance of Long-Term Debt | — | 295,020 | |||||
| Net Proceeds from Issuance (Repurchase) of Common Stock | (8,877 | ) | 4,110 | ||||
| Net Cash Used in Financing Activities | $ | (101,095 | ) | $ | (410,640 | ) | |
| Net Decrease in Cash, Cash Equivalents, and Restricted Cash | (205,787 | ) | (324,224 | ) | |||
| Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 233,047 | 557,271 | |||||
| Cash, Cash Equivalents, and Restricted Cash at September 30 | $ | 27,260 | $ | 233,047 | |||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| UPSTREAM BUSINESS | |||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | September 30, | September 30, | |||||||||||||||||||
| EXPLORATION AND PRODUCTION SEGMENT | 2019 | 2018 | Variance | 2019 | 2018 | Variance | |||||||||||||||
| Total Operating Revenues | $ | 164,887 | $ | 143,167 | $ | 21,720 | $ | 632,740 | $ | 564,547 | $ | 68,193 | |||||||||
| Operating Expenses: | |||||||||||||||||||||
| Operation and Maintenance: | |||||||||||||||||||||
| General and Administrative Expense | 16,063 | 14,127 | 1,936 | 64,003 | 59,424 | 4,579 | |||||||||||||||
| Lease Operating and Transportation Expense | 50,409 | 41,642 | 8,767 | 186,626 | 162,721 | 23,905 | |||||||||||||||
| All Other Operation and Maintenance Expense | 3,425 | 2,895 | 530 | 11,130 | 11,077 | 53 | |||||||||||||||
| Property, Franchise and Other Taxes | 4,168 | 3,655 | 513 | 17,726 | 14,400 | 3,326 | |||||||||||||||
| Depreciation, Depletion and Amortization | 44,141 | 33,567 | 10,574 | 154,784 | 124,274 | 30,510 | |||||||||||||||
| 118,206 | 95,886 | 22,320 | 434,269 | 371,896 | 62,373 | ||||||||||||||||
| Operating Income | 46,681 | 47,281 | (600 | ) | 198,471 | 192,651 | 5,820 | ||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Non-Service Pension and Post-Retirement Benefit Costs | (4 | ) | (293 | ) | 289 | (16 | ) | (1,172 | ) | 1,156 | |||||||||||
| Interest and Other Income | 273 | 392 | (119 | ) | 1,107 | 1,479 | (372 | ) | |||||||||||||
| Interest Expense on Long-Term Debt | — | (962 | ) | 962 | — | (962 | ) | 962 | |||||||||||||
| Other Interest Expense | (14,216 | ) | (13,326 | ) | (890 | ) | (54,777 | ) | (53,326 | ) | (1,451 | ) | |||||||||
| Income Before Income Taxes | 32,734 | 33,092 | (358 | ) | 144,785 | 138,670 | 6,115 | ||||||||||||||
| Income Tax Expense (Benefit) | 7,526 | 13,512 | (5,986 | ) | 32,978 | (41,962 | ) | 74,940 | |||||||||||||
| Net Income | $ | 25,208 | $ | 19,580 | $ | 5,628 | $ | 111,807 | $ | 180,632 | $ | (68,825 | ) | ||||||||
| Net Income Per Share (Diluted) | $ | 0.29 | $ | 0.23 | $ | 0.06 | $ | 1.29 | $ | 2.09 | $ | (0.80 | ) | ||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| MIDSTREAM BUSINESSES | |||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | September 30, | September 30, | |||||||||||||||||||
| PIPELINE AND STORAGE SEGMENT | 2019 | 2018 | Variance | 2019 | 2018 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 47,143 | $ | 51,958 | $ | (4,815 | ) | $ | 195,808 | $ | 210,345 | $ | (14,537 | ) | |||||||
| Intersegment Revenues | 22,764 | 22,457 | 307 | 92,475 | 89,981 | 2,494 | |||||||||||||||
| Total Operating Revenues | 69,907 | 74,415 | (4,508 | ) | 288,283 | 300,326 | (12,043 | ) | |||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | 241 | 341 | (100 | ) | 1,124 | 607 | 517 | ||||||||||||||
| Operation and Maintenance | 26,099 | 28,805 | (2,706 | ) | 94,710 | 86,877 | 7,833 | ||||||||||||||
| Property, Franchise and Other Taxes | 7,820 | 7,570 | 250 | 30,268 | 28,870 | 1,398 | |||||||||||||||
| Depreciation, Depletion and Amortization | 11,387 | 11,141 | 246 | 44,947 | 43,463 | 1,484 | |||||||||||||||
| 45,547 | 47,857 | (2,310 | ) | 171,049 | 159,817 | 11,232 | |||||||||||||||
| Operating Income | 24,360 | 26,558 | (2,198 | ) | 117,234 | 140,509 | (23,275 | ) | |||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Non-Service Pension and Post-Retirement Benefit Credit | 930 | 353 | 577 | 3,257 | 1,421 | 1,836 | |||||||||||||||
| Interest and Other Income | 1,882 | 1,320 | 562 | 5,900 | 4,505 | 1,395 | |||||||||||||||
| Interest Expense | (7,132 | ) | (7,965 | ) | 833 | (29,142 | ) | (31,383 | ) | 2,241 | |||||||||||
| Income Before Income Taxes | 20,040 | 20,266 | (226 | ) | 97,249 | 115,052 | (17,803 | ) | |||||||||||||
| Income Tax Expense | 4,672 | 4,929 | (257 | ) | 23,238 | 17,806 | 5,432 | ||||||||||||||
| Net Income | $ | 15,368 | $ | 15,337 | $ | 31 | $ | 74,011 | $ | 97,246 | $ | (23,235 | ) | ||||||||
| Net Income Per Share (Diluted) | $ | 0.18 | $ | 0.18 | $ | — | $ | 0.85 | $ | 1.13 | $ | (0.28 | ) | ||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| GATHERING SEGMENT | 2019 | 2018 | Variance | 2019 | 2018 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 10 | $ | — | $ | 10 | $ | 11 | $ | 41 | $ | (30 | ) | ||||||||
| Intersegment Revenues | 35,132 | 28,452 | 6,680 | 127,064 | 107,856 | 19,208 | |||||||||||||||
| Total Operating Revenues | 35,142 | 28,452 | 6,690 | 127,075 | 107,897 | 19,178 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Operation and Maintenance | 5,229 | 4,615 | 614 | 18,702 | 15,862 | 2,840 | |||||||||||||||
| Property, Franchise and Other Taxes | 18 | 23 | (5 | ) | 81 | 98 | (17 | ) | |||||||||||||
| Depreciation, Depletion and Amortization | 5,202 | 4,554 | 648 | 20,038 | 17,313 | 2,725 | |||||||||||||||
| 10,449 | 9,192 | 1,257 | 38,821 | 33,273 | 5,548 | ||||||||||||||||
| Operating Income | 24,693 | 19,260 | 5,433 | 88,254 | 74,624 | 13,630 | |||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Non-Service Pension and Post-Retirement Benefit Costs | (1 | ) | (82 | ) | 81 | (86 | ) | (328 | ) | 242 | |||||||||||
| Interest and Other Income | 57 | 130 | (73 | ) | 546 | 1,106 | (560 | ) | |||||||||||||
| Interest Expense | (2,397 | ) | (2,211 | ) | (186 | ) | (9,406 | ) | (9,560 | ) | 154 | ||||||||||
| Income Before Income Taxes | 22,352 | 17,097 | 5,255 | 79,308 | 65,842 | 13,466 | |||||||||||||||
| Income Tax Expense (Benefit) | 5,450 | 2,314 | 3,136 | 20,895 | (17,677 | ) | 38,572 | ||||||||||||||
| Net Income | $ | 16,902 | $ | 14,783 | $ | 2,119 | $ | 58,413 | $ | 83,519 | $ | (25,106 | ) | ||||||||
| Net Income Per Share (Diluted) | $ | 0.19 | $ | 0.17 | $ | 0.02 | $ | 0.67 | $ | 0.97 | $ | (0.30 | ) | ||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| DOWNSTREAM BUSINESS | |||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | September 30, | September 30, | |||||||||||||||||||
| UTILITY SEGMENT | 2019 | 2018 | Variance | 2019 | 2018 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 67,189 | $ | 75,231 | $ | (8,042 | ) | $ | 715,813 | $ | 674,726 | $ | 41,087 | ||||||||
| Intersegment Revenues | 1,645 | 1,399 | 246 | 11,629 | 12,800 | (1,171 | ) | ||||||||||||||
| Total Operating Revenues | 68,834 | 76,630 | (7,796 | ) | 727,442 | 687,526 | 39,916 | ||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | 14,712 | 19,683 | (4,971 | ) | 342,832 | 306,130 | 36,702 | ||||||||||||||
| Operation and Maintenance | 38,845 | 37,798 | 1,047 | 168,684 | 165,858 | 2,826 | |||||||||||||||
| Property, Franchise and Other Taxes | 8,563 | 8,635 | (72 | ) | 39,792 | 39,984 | (192 | ) | |||||||||||||
| Depreciation, Depletion and Amortization | 13,630 | 13,272 | 358 | 53,832 | 53,253 | 579 | |||||||||||||||
| 75,750 | 79,388 | (3,638 | ) | 605,140 | 565,225 | 39,915 | |||||||||||||||
| Operating Income (Loss) | (6,916 | ) | (2,758 | ) | (4,158 | ) | 122,302 | 122,301 | 1 | ||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Non-Service Pension and Post-Retirement Benefit Costs | (2,040 | ) | (3,722 | ) | 1,682 | (27,600 | ) | (31,399 | ) | 3,799 | |||||||||||
| Interest and Other Income | 870 | 705 | 165 | 3,579 | 2,326 | 1,253 | |||||||||||||||
| Interest Expense | (5,492 | ) | (6,487 | ) | 995 | (23,443 | ) | (26,753 | ) | 3,310 | |||||||||||
| Income (Loss) Before Income Taxes | (13,578 | ) | (12,262 | ) | (1,316 | ) | 74,838 | 66,475 | 8,363 | ||||||||||||
| Income Tax Expense (Benefit) | (5,850 | ) | (5,195 | ) | (655 | ) | 13,967 | 15,258 | (1,291 | ) | |||||||||||
| Net Income (Loss) | $ | (7,728 | ) | $ | (7,067 | ) | $ | (661 | ) | $ | 60,871 | $ | 51,217 | $ | 9,654 | ||||||
| Net Income (Loss) Per Share (Diluted) | $ | (0.09 | ) | $ | (0.08 | ) | $ | (0.01 | ) | $ | 0.70 | $ | 0.59 | $ | 0.11 | ||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | September 30, | September 30, | |||||||||||||||||||
| ALL OTHER | 2019 | 2018 | Variance | 2019 | 2018 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 13,977 | $ | 18,785 | $ | (4,808 | ) | $ | 148,582 | $ | 142,349 | $ | 6,233 | ||||||||
| Intersegment Revenues | 71 | 237 | (166 | ) | 1,127 | 826 | 301 | ||||||||||||||
| Total Operating Revenues | 14,048 | 19,022 | (4,974 | ) | 149,709 | 143,175 | 6,534 | ||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | 13,439 | 18,242 | (4,803 | ) | 144,292 | 131,481 | 12,811 | ||||||||||||||
| Operation and Maintenance | 1,837 | 1,833 | 4 | 7,549 | 7,438 | 111 | |||||||||||||||
| Property, Franchise and Other Taxes | 141 | 140 | 1 | 540 | 565 | (25 | ) | ||||||||||||||
| Depreciation, Depletion and Amortization | 115 | 436 | (321 | ) | 1,291 | 1,902 | (611 | ) | |||||||||||||
| 15,532 | 20,651 | (5,119 | ) | 153,672 | 141,386 | 12,286 | |||||||||||||||
| Operating Income (Loss) | (1,484 | ) | (1,629 | ) | 145 | (3,963 | ) | 1,789 | (5,752 | ) | |||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Non-Service Pension and Post-Retirement Benefit Costs | (11 | ) | (133 | ) | 122 | (153 | ) | (535 | ) | 382 | |||||||||||
| Interest and Other Income | 319 | 335 | (16 | ) | 1,371 | 1,154 | 217 | ||||||||||||||
| Other Interest Expense | (6 | ) | (5 | ) | (1 | ) | (21 | ) | (22 | ) | 1 | ||||||||||
| Income (Loss) Before Income Taxes | (1,182 | ) | (1,432 | ) | 250 | (2,766 | ) | 2,386 | (5,152 | ) | |||||||||||
| Income Tax Expense (Benefit) | (316 | ) | (474 | ) | 158 | (955 | ) | 2,125 | (3,080 | ) | |||||||||||
| Net Income (Loss) | $ | (866 | ) | $ | (958 | ) | $ | 92 | $ | (1,811 | ) | $ | 261 | $ | (2,072 | ) | |||||
| Net Income (Loss) Per Share (Diluted) | $ | (0.01 | ) | $ | (0.01 | ) | $ | — | $ | (0.02 | ) | $ | — | $ | (0.02 | ) | |||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| CORPORATE | 2019 | 2018 | Variance | 2019 | 2018 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 134 | $ | 55 | $ | 79 | $ | 378 | $ | 660 | $ | (282 | ) | ||||||||
| Intersegment Revenues | 1,144 | 1,047 | 97 | 4,638 | 4,045 | 593 | |||||||||||||||
| Total Operating Revenues | 1,278 | 1,102 | 176 | 5,016 | 4,705 | 311 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Operation and Maintenance | 4,348 | 4,839 | (491 | ) | 14,258 | 15,624 | (1,366 | ) | |||||||||||||
| Property, Franchise and Other Taxes | 129 | 125 | 4 | 479 | 476 | 3 | |||||||||||||||
| Depreciation, Depletion and Amortization | 195 | 189 | 6 | 768 | 756 | 12 | |||||||||||||||
| 4,672 | 5,153 | (481 | ) | 15,505 | 16,856 | (1,351 | ) | ||||||||||||||
| Operating Loss | (3,394 | ) | (4,051 | ) | 657 | (10,489 | ) | (12,151 | ) | 1,662 | |||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Non-Service Pension and Post-Retirement Benefit Costs | (647 | ) | (156 | ) | (491 | ) | (2,679 | ) | (624 | ) | (2,055 | ) | |||||||||
| Interest and Other Income | 28,993 | 30,552 | (1,559 | ) | 115,605 | 124,002 | (8,397 | ) | |||||||||||||
| Interest Expense on Long-Term Debt | (25,598 | ) | (27,572 | ) | 1,974 | (101,614 | ) | (109,984 | ) | 8,370 | |||||||||||
| Other Interest Expense | (1,024 | ) | (1,209 | ) | 185 | (4,726 | ) | (5,641 | ) | 915 | |||||||||||
| Loss before Income Taxes | (1,670 | ) | (2,436 | ) | 766 | (3,903 | ) | (4,398 | ) | 495 | |||||||||||
| Income Tax Expense (Benefit) | (67 | ) | 1,245 | (1,312 | ) | (4,902 | ) | 16,956 | (21,858 | ) | |||||||||||
| Net Income (Loss) | $ | (1,603 | ) | $ | (3,681 | ) | $ | 2,078 | $ | 999 | $ | (21,354 | ) | $ | 22,353 | ||||||
| Net Income (Loss) Per Share (Diluted) | $ | (0.02 | ) | $ | (0.05 | ) | $ | 0.03 | $ | 0.02 | $ | (0.25 | ) | $ | 0.27 | ||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| INTERSEGMENT ELIMINATIONS | 2019 | 2018 | Variance | 2019 | 2018 | Variance | |||||||||||||||
| Intersegment Revenues | $ | (60,756 | ) | $ | (53,592 | ) | $ | (7,164 | ) | $ | (236,933 | ) | $ | (215,508 | ) | $ | (21,425 | ) | |||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | (23,664 | ) | (23,298 | ) | (366 | ) | (101,983 | ) | (100,396 | ) | (1,587 | ) | |||||||||
| Operation and Maintenance | (37,092 | ) | (30,294 | ) | (6,798 | ) | (134,950 | ) | (115,112 | ) | (19,838 | ) | |||||||||
| (60,756 | ) | (53,592 | ) | (7,164 | ) | (236,933 | ) | (215,508 | ) | (21,425 | ) | ||||||||||
| Operating Income | — | — | — | — | — | — | |||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest and Other Deductions | (29,186 | ) | (30,369 | ) | 1,183 | (116,373 | ) | (123,109 | ) | 6,736 | |||||||||||
| Interest Expense | 29,186 | 30,369 | (1,183 | ) | 116,373 | 123,109 | (6,736 | ) | |||||||||||||
| Net Income (Loss) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| Net Income (Loss) Per Share (Diluted) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||||
| SEGMENT INFORMATION (Continued) | |||||||||||||||||||||||
| (Thousands of Dollars) | |||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||
| Increase | Increase | ||||||||||||||||||||||
| 2019 | 2018 | (Decrease) | 2019 | 2018 | (Decrease) | ||||||||||||||||||
| Capital Expenditures: | |||||||||||||||||||||||
| Exploration and Production | $ | 100,215 | (1) | $ | 110,801 | (2) | $ | (10,586 | ) | $ | 491,889 | (1)(2) | $ | 380,677 | (2)(3) | $ | 111,212 | ||||||
| Pipeline and Storage | 54,878 | (1) | 39,476 | (2) | 15,402 | 143,005 | (1)(2) | 92,832 | (2)(3) | 50,173 | |||||||||||||
| Gathering | 10,254 | (1) | 13,961 | (2) | (3,707 | ) | 49,650 | (1)(2) | 61,728 | (2)(3) | (12,078 | ) | |||||||||||
| Utility | 37,483 | (1) | 33,621 | (2) | 3,862 | 95,847 | (1)(2) | 85,648 | (2)(3) | 10,199 | |||||||||||||
| Total Reportable Segments | 202,830 | 197,859 | 4,971 | 780,391 | 620,885 | 159,506 | |||||||||||||||||
| All Other | 5 | 7 | (2 | ) | 128 | 41 | 87 | ||||||||||||||||
| Corporate | 358 | 131 | 227 | 727 | 181 | 546 | |||||||||||||||||
| Eliminations | — | (583 | ) | 583 | — | (20,505 | ) | 20,505 | |||||||||||||||
| Total Capital Expenditures | $ | 203,193 | $ | 197,414 | $ | 5,779 | $ | 781,246 | $ | 600,602 | $ | 180,644 | |||||||||||
(1) Capital expenditures for the quarter and year ended September 30, 2019, include accounts payable and accrued liabilities related to capital expenditures of $38.0 million, $23.8 million, $6.6 million, and $12.7 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 September 30, 2019, since they represent non-cash investing activities at that date.
(2) Capital expenditures for the year ended September 30, 2019, exclude capital expenditures of $51.3 million, $21.9 million, $6.1 million and $9.5 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, 2018 and paid during the year ended September 30, 2019. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2018, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2019.
(3) Capital expenditures for the year ended September 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 year ended September 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 September 30, 2018.
| DEGREE DAYS | |||||||||||
| Percent Colder | |||||||||||
| (Warmer) Than: | |||||||||||
| Three Months Ended September 30 | Normal | 2019 | 2018 | Normal (1) | Last Year (1) | ||||||
| Buffalo, NY | 162 | 45 | 83 | (72.2 | ) | (45.8 | ) | ||||
| Erie, PA | 124 | 12 | 47 | (90.3 | ) | (74.5 | ) | ||||
| Twelve Months Ended September 30 | |||||||||||
| Buffalo, NY | 6,617 | 6,699 | 6,391 | 1.2 | 4.8 | ||||||
| Erie, PA | 6,147 | 5,911 | 5,976 | (3.8 | ) | (1.1 | ) | ||||
(1) Percents compare actual 2019 degree days to normal degree days and actual 2019 degree days to actual 2018 degree days.
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||||||||
| EXPLORATION AND PRODUCTION INFORMATION | ||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| Increase | Increase | |||||||||||||||||||||||
| 2019 | 2018 | (Decrease) | 2019 | 2018 | (Decrease) | |||||||||||||||||||
| Gas Production/Prices: | ||||||||||||||||||||||||
| Production (MMcf) | ||||||||||||||||||||||||
| Appalachia | 54,952 | 43,238 | 11,714 | 195,906 | 160,499 | 35,407 | ||||||||||||||||||
| West Coast | 491 | 511 | (20 | ) | 1,974 | 2,407 | (433 | ) | ||||||||||||||||
| Total Production | 55,443 | 43,749 | 11,694 | 197,880 | 162,906 | 34,974 | ||||||||||||||||||
| Average Prices (Per Mcf) | ||||||||||||||||||||||||
| Appalachia | $ | 1.95 | $ | 2.34 | $ | (0.39 | ) | $ | 2.40 | $ | 2.36 | $ | 0.04 | |||||||||||
| West Coast | 3.94 | 5.73 | (1.79 | ) | 5.15 | 4.86 | 0.29 | |||||||||||||||||
| Weighted Average | 1.97 | 2.38 | (0.41 | ) | 2.43 | 2.40 | 0.03 | |||||||||||||||||
| Weighted Average after Hedging | 2.26 | 2.45 | (0.19 | ) | 2.44 | 2.52 | (0.08 | ) | ||||||||||||||||
| Oil Production/Prices: | ||||||||||||||||||||||||
| Production (Thousands of Barrels) | ||||||||||||||||||||||||
| Appalachia | 1 | 1 | — | 3 | 4 | (1 | ) | |||||||||||||||||
| West Coast | 611 | 597 | 14 | 2,320 | 2,531 | (211 | ) | |||||||||||||||||
| Total Production | 612 | 598 | 14 | 2,323 | 2,535 | (212 | ) | |||||||||||||||||
| Average Prices (Per Barrel) | ||||||||||||||||||||||||
| Appalachia | $ | 60.70 | $ | 66.97 | $ | (6.27 | ) | $ | 57.14 | $ | 57.76 | $ | (0.62 | ) | ||||||||||
| West Coast | 61.85 | 71.91 | (10.06 | ) | 64.18 | 66.39 | (2.21 | ) | ||||||||||||||||
| Weighted Average | 61.85 | 71.90 | (10.05 | ) | 64.17 | 66.38 | (2.21 | ) | ||||||||||||||||
| Weighted Average after Hedging | 61.00 | 57.71 | 3.29 | 61.65 | 58.66 | 2.99 | ||||||||||||||||||
| Total Production (MMcfe) | 59,115 | 47,337 | 11,778 | 211,818 | 178,116 | 33,702 | ||||||||||||||||||
| Selected Operating Performance Statistics: | ||||||||||||||||||||||||
| General & Administrative Expense per Mcfe (1) | $ | 0.27 | $ | 0.30 | $ | (0.03 | ) | $ | 0.30 | $ | 0.33 | $ | (0.03 | ) | ||||||||||
| Lease Operating and Transportation Expense per Mcfe (1)(2) | $ | 0.85 | $ | 0.88 | $ | (0.03 | ) | $ | 0.88 | $ | 0.91 | $ | (0.03 | ) | ||||||||||
| Depreciation, Depletion & Amortization per Mcfe (1) | $ | 0.75 | $ | 0.71 | $ | 0.04 | $ | 0.73 | $ | 0.70 | $ | 0.03 | ||||||||||||
(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 $0.56 and $0.53 per Mcfe for the three months ended September 30, 2019 and September 30, 2018, respectively. Amounts include transportation expense of $0.56 and $0.54 per Mcfe for the twelve months ended September 30, 2019 and September 30, 2018, respectively.
| NATIONAL FUEL GAS COMPANY | ||||||||
| AND SUBSIDIARIES | ||||||||
| EXPLORATION AND PRODUCTION INFORMATION | ||||||||
| Hedging Summary for Fiscal 2020 | Volume | Average Hedge Price | ||||||
| Oil Swaps | ||||||||
| Brent | 1,260,000 | BBL | $ | 64.66 / BBL | ||||
| NYMEX | 324,000 | BBL | $ | 50.52 / BBL | ||||
| Total | 1,584,000 | BBL | $ | 61.77 / BBL | ||||
| Gas Swaps | ||||||||
| NYMEX | 84,630,000 | MMBTU | $ | 2.72 / MMBTU | ||||
| DAWN | 7,200,000 | MMBTU | $ | 3.00 / MMBTU | ||||
| Fixed Price Physical Sales | 48,281,386 | MMBTU | $ | 2.38 / MMBTU | ||||
| Total | 140,111,386 | MMBTU | $ | 2.62 / MMBTU | ||||
| Hedging Summary for Fiscal 2021 | Volume | Average Hedge Price | ||||||
| Oil Swaps | ||||||||
| Brent | 576,000 | BBL | $ | 64.48 / BBL | ||||
| NYMEX | 156,000 | BBL | $ | 51.00 / BBL | ||||
| Total | 732,000 | BBL | $ | 61.61 / BBL | ||||
| Gas Swaps | ||||||||
| NYMEX | 10,630,000 | MMBTU | $ | 2.80 / MMBTU | ||||
| DAWN | 600,000 | MMBTU | $ | 3.00 / MMBTU | ||||
| Fixed Price Physical Sales | 41,206,344 | MMBTU | $ | 2.21 / MMBTU | ||||
| Total | 52,436,344 | MMBTU | $ | 2.34 / 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 | 40,242,536 | MMBTU | $ | 2.23 / MMBTU | ||||
| Hedging Summary for Fiscal 2023 | Volume | Average Hedge Price | ||||||
| Fixed Price Physical Sales | 36,807,532 | MMBTU | $ | 2.25 / MMBTU | ||||
| Hedging Summary for Fiscal 2024 | Volume | Average Hedge Price | ||||||
| Fixed Price Physical Sales | 20,801,194 | 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 | |||||||
| EXPLORATION AND PRODUCTION INFORMATION | |||||||
| Reserve Quantity Information | |||||||
| (Unaudited) | |||||||
| Gas MMcf | |||||||
| U.S. | |||||||
| Appalachian | West Coast | Total | |||||
| Region | Region | Company | |||||
| Proved Developed and Undeveloped Reserves: | |||||||
| September 30, 2018 | 2,320,502 | 36,840 | 2,357,342 | ||||
| Extensions and Discoveries | 686,549 | — | 686,549 | ||||
| Revisions of Previous Estimates | 104,741 | (1,233 | ) | 103,508 | |||
| Production | (195,906 | ) | (1,974 | ) | (197,880 | ) | |
| September 30, 2019 | 2,915,886 | 33,633 | 2,949,519 | ||||
| Proved Developed Reserves: | |||||||
| September 30, 2018 | 1,569,692 | 36,840 | 1,606,532 | ||||
| September 30, 2019 | 1,901,162 | 33,633 | 1,934,795 | ||||
| Oil Mbbl | |||||||
| U.S. | |||||||
| Appalachian | West Coast | Total | |||||
| Region | Region | Company | |||||
| Proved Developed and Undeveloped Reserves: | |||||||
| September 30, 2018 | 14 | 27,649 | 27,663 | ||||
| Extensions and Discoveries | — | 787 | 787 | ||||
| Revisions of Previous Estimates | 2 | (1,256 | ) | (1,254 | ) | ||
| Production | (3 | ) | (2,320 | ) | (2,323 | ) | |
| September 30, 2019 | 13 | 24,860 | 24,873 | ||||
| Proved Developed Reserves: | |||||||
| September 30, 2018 | 14 | 26,689 | 26,703 | ||||
| September 30, 2019 | 13 | 24,246 | 24,259 | ||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||
| Pipeline & Storage Throughput - (millions of cubic feet - MMcf) | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| September 30, | September 30, | |||||||||||||||||
| Increase | Increase | |||||||||||||||||
| 2019 | 2018 | (Decrease) | 2019 | 2018 | (Decrease) | |||||||||||||
| Firm Transportation - Affiliated | 14,194 | 15,058 | (864 | ) | 121,618 | 119,164 | 2,454 | |||||||||||
| Firm Transportation - Non-Affiliated | 153,838 | 165,809 | (11,971 | ) | 596,676 | 645,156 | (48,480 | ) | ||||||||||
| Interruptible Transportation | 189 | 393 | (204 | ) | 2,163 | 3,546 | (1,383 | ) | ||||||||||
| 168,221 | 181,260 | (13,039 | ) | 720,457 | 767,866 | (47,409 | ) | |||||||||||
| Gathering Volume - (MMcf) | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| September 30, | September 30, | |||||||||||||||||
| Increase | Increase | |||||||||||||||||
| 2019 | 2018 | (Decrease) | 2019 | 2018 | (Decrease) | |||||||||||||
| Gathered Volume - Affiliated | 65,170 | 52,427 | 12,743 | 234,760 | 198,355 | 36,405 | ||||||||||||
| Utility Throughput - (MMcf) | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| September 30, | September 30, | |||||||||||||||||
| Increase | Increase | |||||||||||||||||
| 2019 | 2018 | (Decrease) | 2019 | 2018 | (Decrease) | |||||||||||||
| Retail Sales: | ||||||||||||||||||
| Residential Sales | 3,247 | 3,707 | (460 | ) | 63,828 | 60,174 | 3,654 | |||||||||||
| Commercial Sales | 490 | 567 | (77 | ) | 9,489 | 9,187 | 302 | |||||||||||
| Industrial Sales | 63 | 63 | — | 702 | 623 | 79 | ||||||||||||
| 3,800 | 4,337 | (537 | ) | 74,019 | 69,984 | 4,035 | ||||||||||||
| Off-System Sales | — | — | — | — | 141 | (141 | ) | |||||||||||
| Transportation | 10,115 | 10,430 | (315 | ) | 76,028 | 76,828 | (800 | ) | ||||||||||
| 13,915 | 14,767 | (852 | ) | 150,047 | 146,953 | 3,094 | ||||||||||||
NATIONAL FUEL GAS COMPANY
AND 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 twelve months ended September 30, 2019 and 2018:
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in thousands except per share amounts) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Reported GAAP Earnings | $ | 47,281 | $ | 37,994 | $ | 304,290 | $ | 391,521 | ||||||||
| Items impacting comparability | ||||||||||||||||
| Remeasurement of deferred income taxes under 2017 Tax Reform | — | 3,516 | (5,000 | ) | (103,484 | ) | ||||||||||
| Mark-to-market adjustments due to hedge ineffectiveness (E&P) | (1,313 | ) | 346 | (2,096 | ) | 782 | ||||||||||
| Tax impact of mark-to-market adjustments due to hedge ineffectiveness | 276 | (85 | ) | 440 | (192 | ) | ||||||||||
| Unrealized (gain) loss on other investments (Corporate/All Other) | 949 | — | 2,045 | — | ||||||||||||
| Tax impact of unrealized (gain) loss on other investments | (199 | ) | — | (429 | ) | — | ||||||||||
| Premium paid on early redemption of debt (E&P) | — | 962 | — | 962 | ||||||||||||
| Tax impact of premium paid on early redemption of debt | — | (235 | ) | — | (235 | ) | ||||||||||
| Adjusted Operating Results | $ | 46,994 | $ | 42,498 | $ | 299,250 | $ | 289,354 | ||||||||
| Reported GAAP Earnings per share | $ | 0.54 | $ | 0.44 | $ | 3.51 | $ | 4.53 | ||||||||
| Items impacting comparability | ||||||||||||||||
| Remeasurement of deferred income taxes under 2017 Tax Reform | — | 0.04 | (0.06 | ) | (1.20 | ) | ||||||||||
| Mark-to-market adjustments due to hedge ineffectiveness, net of tax (E&P) | (0.01 | ) | — | (0.02 | ) | 0.01 | ||||||||||
| Unrealized (gain) loss on other investments, net of tax (Corporate/All Other) | 0.01 | — | 0.02 | — | ||||||||||||
| Premium paid on early redemption of debt, net of tax (E&P) | — | 0.01 | — | 0.01 | ||||||||||||
| Adjusted Operating Results per share | $ | 0.54 | $ | 0.49 | $ | 3.45 | $ | 3.35 | ||||||||
Management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, 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 twelve months ended September 30, 2019 and 2018:
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Reported GAAP Earnings | $ | 47,281 | $ | 37,994 | $ | 304,290 | $ | 391,521 | ||||||||
| Depreciation, Depletion and Amortization | 74,670 | 63,159 | 275,660 | 240,961 | ||||||||||||
| Other (Income) Deductions | (1,435 | ) | 968 | 15,542 | 21,174 | |||||||||||
| Interest Expense | 26,679 | 29,368 | 106,756 | 114,522 | ||||||||||||
| Income Taxes | 11,415 | 16,331 | 85,221 | (7,494 | ) | |||||||||||
| Mark-to-Market Adjustments due to Hedge Ineffectiveness | (1,313 | ) | 346 | (2,096 | ) | 782 | ||||||||||
| Adjusted EBITDA | $ | 157,297 | $ | 148,166 | $ | 785,373 | $ | 761,466 | ||||||||
| Adjusted EBITDA by Segment | ||||||||||||||||
| Pipeline and Storage Adjusted EBITDA | $ | 35,747 | $ | 37,699 | $ | 162,181 | $ | 183,972 | ||||||||
| Gathering Adjusted EBITDA | 29,895 | 23,814 | 108,292 | 91,937 | ||||||||||||
| Total Midstream Businesses Adjusted EBITDA | 65,642 | 61,513 | 270,473 | 275,909 | ||||||||||||
| Exploration and Production Adjusted EBITDA | 89,509 | 81,194 | 351,159 | 317,707 | ||||||||||||
| Utility Adjusted EBITDA | 6,714 | 10,514 | 176,134 | 175,554 | ||||||||||||
| Corporate and All Other Adjusted EBITDA | (4,568 | ) | (5,055 | ) | (12,393 | ) | (7,704 | ) | ||||||||
| Total Adjusted EBITDA | $ | 157,297 | $ | 148,166 | $ | 785,373 | $ | 761,466 | ||||||||
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Exploration and Production Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | 25,208 | $ | 19,580 | $ | 111,807 | $ | 180,632 | ||||||||
| Depreciation, Depletion and Amortization | 44,141 | 33,567 | 154,784 | 124,274 | ||||||||||||
| Other (Income) Deductions | (269 | ) | (99 | ) | (1,091 | ) | (307 | ) | ||||||||
| Interest Expense | 14,216 | 14,288 | 54,777 | 54,288 | ||||||||||||
| Income Taxes | 7,526 | 13,512 | 32,978 | (41,962 | ) | |||||||||||
| Mark-to-Market Adjustments due to Hedge Ineffectiveness | (1,313 | ) | 346 | (2,096 | ) | 782 | ||||||||||
| Adjusted EBITDA | $ | 89,509 | $ | 81,194 | $ | 351,159 | $ | 317,707 | ||||||||
| Pipeline and Storage Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | 15,368 | $ | 15,337 | $ | 74,011 | $ | 97,246 | ||||||||
| Depreciation, Depletion and Amortization | 11,387 | 11,141 | 44,947 | 43,463 | ||||||||||||
| Other (Income) Deductions | (2,812 | ) | (1,673 | ) | (9,157 | ) | (5,926 | ) | ||||||||
| Interest Expense | 7,132 | 7,965 | 29,142 | 31,383 | ||||||||||||
| Income Taxes | 4,672 | 4,929 | 23,238 | 17,806 | ||||||||||||
| Adjusted EBITDA | $ | 35,747 | $ | 37,699 | $ | 162,181 | $ | 183,972 | ||||||||
| Gathering Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | 16,902 | $ | 14,783 | $ | 58,413 | $ | 83,519 | ||||||||
| Depreciation, Depletion and Amortization | 5,202 | 4,554 | 20,038 | 17,313 | ||||||||||||
| Other (Income) Deductions | (56 | ) | (48 | ) | (460 | ) | (778 | ) | ||||||||
| Interest Expense | 2,397 | 2,211 | 9,406 | 9,560 | ||||||||||||
| Income Taxes | 5,450 | 2,314 | 20,895 | (17,677 | ) | |||||||||||
| Adjusted EBITDA | $ | 29,895 | $ | 23,814 | $ | 108,292 | $ | 91,937 | ||||||||
| Utility Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | (7,728 | ) | $ | (7,067 | ) | $ | 60,871 | $ | 51,217 | ||||||
| Depreciation, Depletion and Amortization | 13,630 | 13,272 | 53,832 | 53,253 | ||||||||||||
| Other (Income) Deductions | 1,170 | 3,017 | 24,021 | 29,073 | ||||||||||||
| Interest Expense | 5,492 | 6,487 | 23,443 | 26,753 | ||||||||||||
| Income Taxes | (5,850 | ) | (5,195 | ) | 13,967 | 15,258 | ||||||||||
| Adjusted EBITDA | $ | 6,714 | $ | 10,514 | $ | 176,134 | $ | 175,554 | ||||||||
| Corporate and All Other | ||||||||||||||||
| Reported GAAP Earnings | $ | (2,469 | ) | $ | (4,639 | ) | $ | (812 | ) | $ | (21,093 | ) | ||||
| Depreciation, Depletion and Amortization | 310 | 625 | 2,059 | 2,658 | ||||||||||||
| Other (Income) Deductions | 532 | (229 | ) | 2,229 | (888 | ) | ||||||||||
| Interest Expense | (2,558 | ) | (1,583 | ) | (10,012 | ) | (7,462 | ) | ||||||||
| Income Taxes | (383 | ) | 771 | (5,857 | ) | 19,081 | ||||||||||
| Adjusted EBITDA | $ | (4,568 | ) | $ | (5,055 | ) | $ | (12,393 | ) | $ | (7,704 | ) | ||||