National Fuel Gas Company — Fiscal 2026 Earnings Summary

Financial Performance

• GAAP earnings for the fourth quarter ended September 30, 2026, were $97.5 million ($1.02 per share), compared to $107.3 million ($1.18 per share) in the prior year.
• Adjusted EPS for the fourth quarter was $1.22, flat compared to $1.22 in the prior year.
• GAAP earnings for the full fiscal year 2026 were $665.4 million ($7.02 per share), an increase from $518.5 million ($5.68 per share) in fiscal 2025.
• Adjusted earnings for fiscal 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 $1,272.1 million, compared to $1,100.0 million in the prior year.
• Free cash flow for the twelve months ended September 30, 2026, was $198.6 million, compared to $208.3 million in the prior year.
• Total operating revenues for the quarter were $467.8 million, up from $456.4 million in the prior year; for the full year, revenues were $2,515.2 million, up from $2,277.5 million.
• Total capital expenditures for the quarter were $346.5 million, and $1,091.0 million for the full year.

Guidance and Future Outlook

• Initiated adjusted earnings per share guidance for fiscal 2027 of $6.00 to $6.40.
• Assumed average NYMEX natural gas price of $2.85 per MMBtu for fiscal 2027.
• Provided sensitivities for fiscal 2027 adjusted EPS: $5.60–$6.00 at $2.50/MMBtu; $6.20–$6.60 at $3.00/MMBtu; and $6.85–$7.25 at $3.50/MMBtu.
• Expected Utility segment earnings to increase in fiscal 2027 due to the Ohio gas utility acquisition, the multi-year New York rate case settlement, and a Pennsylvania base rate increase.
• Expected Pipeline & Storage segment earnings to increase in fiscal 2027 driven by the Tioga Pathway and Shippingport Lateral projects placed in service on November 1, 2026, and ongoing ratemaking activity.
• Combined Utility and Pipeline & Storage capital expenditures for fiscal 2027 are expected to range between $490 million and $580 million.
• IUG fiscal 2027 production is projected at 400 to 435 Bcf.
• IUG capital expenditures for fiscal 2027 are projected at $600 to $640 million, including $25 to $30 million for third-party gathering expansions and non-operated wells, with potential for an additional $50 to $100 million in discretionary land spending.
• Consolidated capital expenditures for fiscal 2027 are expected to range between $1,090 million and $1,220 million.
• Pipeline and Storage segment revenues for fiscal 2027 are expected to range between $475 million and $500 million.
• Utility segment operating income for fiscal 2027 is expected to range between $235 million and $255 million.
• Utility segment non-service pension and OPEB income for fiscal 2027 is expected to range between $23 million and $27 million.

Business Segments and Product Lines

• Integrated Upstream and Gathering:
  • Fourth quarter GAAP earnings were $115.4 million, up $11.9 million from the prior year; adjusted earnings increased $8.5 million.
  • Seneca's weighted average realized natural gas price after hedging and transportation costs was $2.80 per Mcf, a 7% increase year-over-year.
  • Seneca produced 104 Bcf of natural gas in the fourth quarter, a 7% decrease from the prior year due to natural declines offsetting new well production.
  • Total proved reserves at September 30, 2026, were 5,191 Bcfe, an increase of 4% from the prior year, with Seneca replacing 150% of fiscal 2026 production.
  • Proved developed reserves represented 71% of total proved reserves.
  • Upstream G&A expense per Mcf was $0.19; Lease Operating Expense (LOE) was $0.16; Gathering O&M was $0.15; DD&A was $0.81.
• Pipeline and Storage:
  • Fourth quarter GAAP earnings were $26.2 million, down $1.7 million from the prior year.
  • Operating revenues increased $1.0 million, driven by higher transportation revenues from new long-term contracts.
  • O&M expense increased $2.0 million due to higher fuel and material costs; DD&A increased $1.4 million due to higher average depreciable plant.
• Utility:
  • Fourth quarter GAAP earnings were a loss of $15.1 million, an improvement of $2.7 million from the prior year.
  • Customer margin increased $6.2 million, driven by usage, the implementation of year two of the multi-year joint settlement in New York, and revenues from the Distribution System Improvement Charge in Pennsylvania.
  • O&M expense increased due to higher fuel costs and an increase in uncollectible expense.
• Strategic Acquisitions and Projects:
  • Completed the acquisition of CenterPoint Energy's Ohio natural gas utility on October 1, 2026, doubling the Utility rate base and adding approximately 335,000 customers.
  • Approved a System Modernization Tracker in New York and a $10.4 million rate increase in Pennsylvania.
  • Placed the Tioga Pathway and Shippingport Lateral projects in service on November 1, 2026.
  • IUG initiated a discretionary land acquisition program in Tioga County.

Market and Competitive Landscape

• The Company is entering a new chapter with a long-term outlook for natural gas demand described as strong.
• The planned separation will result in National Fuel becoming a fully rate-regulated natural gas company with approximately $5 billion in rate base.
• The separated entity, Seneca Resources, will be a premier integrated Appalachian natural gas business with a deep inventory of high-quality development opportunities.
• Seneca Resources is expected to have a positive outlook for long-term production and free cash flow growth.

Risks and Challenges

• Forward-looking statements involve risks including the ability to complete the separation of the Integrated Upstream and Gathering business, regulatory approvals, and potential disruption to management attention and business relationships.
• Risks include changes in natural gas prices, regulatory actions, environmental laws, and economic conditions affecting demand and customer payment ability.
• Potential for impairments under SEC full cost ceiling tests, credit rating downgrades, and interest rate changes.
• Operational risks include weather conditions, equipment shortages, delays in obtaining permits, and cybersecurity threats.
• The separation may not achieve intended benefits or may be more difficult, time-consuming, or costly than expected.

Management Commentary and Tone

• David P. Bauer, President and CEO, described fiscal 2026 as an "excellent year," citing 9% growth in adjusted EPS, significant free cash flow generation, and the 124th consecutive year of dividend payments.
• Management expressed confidence that both the remaining National Fuel and the new Seneca Resources are "exceptionally well positioned for continued success" against a strong long-term outlook for natural gas demand.
• The tone regarding the separation is positive, viewing it as a strategy to provide flexibility for distinct growth opportunities and capital allocation priorities.

Other Key Points

• Announced the 56th consecutive dividend increase to an annual rate of $2.22 per share.
• Announced a plan to separate the 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, with National Fuel retaining up to a 19.9% ownership interest to be disposed of tax-efficiently.
• Seneca Resources is expected to trade on the New York Stock Exchange.
• The Utility segment does not include financial results from Honeoye Storage Corporation, acquired on October 30, 2026.
• Fiscal 2027 guidance includes the expected results of IUG for the full fiscal year as it remains part of consolidated results until separation.
• The Company is unable to provide earnings guidance other than on a non-GAAP basis for fiscal 2027 due to the inability to reasonably determine adjustments to unrealized gain or loss on investments.