National Fuel Gas Company — Fiscal 2026 Earnings Summary

Financial Performance:

• GAAP earnings for the fourth quarter of fiscal 2026 were $97.5 million ($1.02 per share), compared to $107.3 million ($1.18 per share) in the prior year.
• Adjusted earnings per share (EPS) for the fourth quarter were $1.22, matching the prior year.
• GAAP earnings for the full fiscal year 2026 were $665.4 million ($7.02 per share), up from $518.5 million ($5.68 per share) in fiscal 2025.
• Adjusted earnings for the full fiscal year 2026 were $689.8 million ($7.55 per share), a 9% increase from $630.5 million ($6.91 per share) in fiscal 2025.
• Net cash provided by operating activities for the twelve months ended September 30, 2026, was $1,272 million.
• Free cash flow for the twelve months ended September 30, 2026, was $199 million.
• The Utility segment reported a GAAP loss of $15.1 million for the fourth quarter, an improvement from a $17.8 million loss in the prior year.
• The Pipeline & Storage segment reported GAAP earnings of $26.2 million for the fourth quarter, a decrease of $1.7 million from the prior year.
• The Integrated Upstream and Gathering segment reported GAAP earnings of $115.4 million for the fourth quarter, an increase of $11.9 million from the prior year.

Guidance and Future Outlook:

• The Company initiated fiscal 2027 adjusted EPS guidance of $6.00 to $6.40.
• Fiscal 2027 guidance assumes an average NYMEX natural gas price of $2.85 per MMBtu.
• Sensitivity analysis for fiscal 2027 adjusted EPS: $5.60–$6.00 at $2.50/MMBtu; $6.20–$6.60 at $3.00/MMBtu; $6.85–$7.25 at $3.50/MMBtu.
• Consolidated capital expenditures for fiscal 2027 are projected between $1,090 million and $1,220 million.
• Integrated Upstream and Gathering (IUG) capital expenditures are projected at $600–$640 million, excluding $50–$100 million of discretionary land spending.
• Pipeline & Storage capital expenditures are projected at $140–$180 million.
• Utility capital expenditures are projected at $350–$400 million.
• IUG production for fiscal 2027 is expected to be 400 to 435 Bcf.
• Utility segment operating income for fiscal 2027 is expected to be $235–$255 million.
• Utility segment non-service pension & OPEB income for fiscal 2027 is expected to be $23–$27 million.
• The Company expects to record a consolidated effective tax rate of approximately 24.0% in fiscal 2027.

Business Segments and Product Lines:

• Integrated Upstream and Gathering:
  • Seneca produced 104 Bcf of natural gas in the fourth quarter, a 7% decrease year-over-year.
  • Seneca's weighted average realized natural gas price was $2.80 per Mcf, a 7% increase year-over-year.
  • Total proved reserves at September 30, 2026, were 5,191 Bcfe, a 4% increase from the prior year, with reserves replaced at 150% of fiscal 2026 production.
  • IUG initiated a discretionary land acquisition program in Tioga County.
• Pipeline & Storage:
  • The Tioga Pathway and Shippingport Lateral projects were placed in service on November 1, 2026.
  • Operating revenues increased due to higher transportation revenues from new long-term contracts.
  • O&M expense increased due to higher fuel and material costs; DD&A expense increased due to higher average depreciable plant.
  • The segment does not include financial results from Honeoye Storage Corporation, acquired October 30, 2026.
• Utility:
  • The segment realized regulatory approvals for a System Modernization Tracker in New York.
  • A $10.4 million rate increase was approved in Pennsylvania.
  • Customer margin increased $6.2 million, driven by usage, the second year of the multi-year joint settlement in New York, and the Distribution System Improvement Charge in Pennsylvania.
  • O&M expense increased due to higher fuel costs and uncollectible expense.

Market and Competitive Landscape:

• The Company completed the acquisition of CenterPoint Energy's Ohio natural gas utility on October 1, 2026, doubling its Utility rate base and adding approximately 335,000 customers.
• The natural gas demand outlook is described as strong.
• The Company operates in the Appalachian region with a focus on natural gas exploration, production, gathering, transportation, and storage.

Risks and Challenges:

• Forward-looking statements involve risks including the ability to complete the planned separation of IUG into Seneca Resources.
• Risks include the potential for the separation not to achieve intended benefits, disruption of relationships with regulators and customers, and unanticipated costs.
• Natural gas price volatility impacts earnings, with sensitivities provided for NYMEX price fluctuations.
• Potential impairments under the SEC's full cost ceiling test for natural gas reserves.
• Regulatory actions, including rate cases and environmental/safety requirements, could impact performance.
• Changes in laws, regulations, or judicial interpretations regarding derivatives, taxes, and climate change.
• Operational risks include weather conditions, equipment shortages, and delays in obtaining governmental approvals.

Management Commentary and Tone:

• David P. Bauer, President and CEO, described fiscal 2026 as an "excellent year" with 9% growth in adjusted EPS and significant free cash flow generation.
• Management expressed confidence in the long-term outlook for both the Utility and IUG businesses.
• The Company is entering a "next chapter" with the planned separation, positioning National Fuel as a fully rate-regulated company with approximately $5 billion in rate base and Seneca Resources as a premier integrated Appalachian natural gas business.
• The Company has paid dividends for 124 consecutive years and announced its 56th consecutive dividend increase to an annual rate of $2.22 per share.

Other Key Points:

• The Company announced a plan to separate its Integrated Upstream and Gathering business into a standalone publicly traded company named Seneca Resources, expected to occur in the second half of calendar 2027.
• The separation is expected to be completed via a pro rata distribution of at least 80.1% of IUG shares to National Fuel shareholders.
• National Fuel expects to retain up to a 19.9% ownership interest in IUG following the separation, which it intends to dispose of in a tax-efficient manner.
• The newly created Seneca Resources is expected to trade on the New York Stock Exchange.
• The acquisition of CenterPoint Energy's Ohio utility doubled the Company's Utility rate base.
• The Company reported $11.3 million in costs and financing related to the Ohio acquisition in the fourth quarter.
• Costs related to the pending spin-off of IUG were $7.2 million in the fourth quarter.
• The Company reported an impairment of assets in fiscal 2025 but none in fiscal 2026.