WILLIAMSVILLE, N.Y., Nov. 01, 2018 (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, 2018.
FISCAL 2018 FOURTH QUARTER SUMMARY
- GAAP earnings of $38.0 million, or $0.44 per share, compared to $45.6 million, or $0.53 per share, in the prior year
- Adjusted operating results of $42.2 million, or $0.49 per share (see reconciliation below)
- Consolidated Adjusted EBITDA of $143.8 million compared to $142.8 million in the prior year (non-GAAP reconciliation on page 25)
- Net production of 47.3 Bcfe, an increase of 17% from the prior year
- Average natural gas prices, after the impact of hedging, of $2.45 per Mcf, down $0.46 per Mcf from the prior year
- Average oil prices, after the impact of hedging, of $57.71 per Bbl, up $2.94 per Bbl from the prior year
- Gathering segment operating income of $19.2 million, up 12% on higher system throughput
FISCAL 2018 HIGHLIGHTS
- GAAP earnings of $391.5 million, or $4.53 per share, compared to $283.5 million, or $3.30 per share, in the prior year
- Adjusted operating results of $288.8 million, or $3.34 per share (see reconciliation below)
- Net cash provided by operating activities exceeded net cash used in investing activities by $84.7 million
- Net production of 178.1 Bcfe, an increase of 3% over fiscal 2017 and the highest output in Company history
- Proved reserves at September 30, 2018, of 2.5 Tcfe, an increase of 17% from September 30, 2017
- Increased shareholder dividend for the 48th consecutive year to an annualized distribution of $1.70 per share
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Reported GAAP Earnings | $ | 37,994 | $ | 45,577 | $ | 391,521 | $ | 283,482 | ||||||||
| Items impacting comparability | ||||||||||||||||
| Remeasurement of deferred income taxes under 2017 Tax Reform |
3,516 | — | (103,484 | ) | — | |||||||||||
| Premium paid on early redemption of debt (E&P) | 962 | — | 962 | — | ||||||||||||
| Tax impact on premium paid on early redemption of debt | (235 | ) | — | (235 | ) | — | ||||||||||
| Adjusted Operating Results | $ | 42,237 | $ | 45,577 | $ | 288,764 | $ | 283,482 | ||||||||
| Reported GAAP Earnings per share | $ | 0.44 | $ | 0.53 | $ | 4.53 | $ | 3.30 | ||||||||
| Items impacting comparability | ||||||||||||||||
| Remeasurement of deferred income taxes under 2017 Tax Reform |
0.04 | — | (1.20 | ) | — | |||||||||||
| Premium paid on early redemption of debt, net of tax | 0.01 | — | 0.01 | — | ||||||||||||
| Adjusted Operating Results per share | $ | 0.49 | $ | 0.53 | $ | 3.34 | $ | 3.30 | ||||||||
MANAGEMENT COMMENTS
Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel concluded another successful fiscal year with strong results. Over the course of the year, we were busy setting Company records for Seneca’s Appalachian proved natural gas reserves and production, along with a record high level of throughput in our Gathering segment. We continued our investments dedicated to the modernization and safety of our interstate and utility pipeline systems, and maintained our strong record of customer service and reliability. Lower taxes from tax legislation enacted late last year helped to offset the decline in realized pricing on Seneca’s production, and the benefits of lower taxes in our Utility segment are being passed along to our utility customers. In what appears to be a ‘new normal’ period of lower natural gas prices, we nonetheless generated positive free cash flow for the third consecutive year – a testament to the quality of our assets and our focus on cost control and achieving operational efficiencies.
“Already a month into our 2019 fiscal year, we are well positioned to build on our success. Recently commissioned capacity on the Atlantic Sunrise project provides us with an avenue to further develop our acreage in Lycoming County, Pa., one of the most prolific positions in Appalachia. We will continue to transition to development of the Utica shale in the Western Development Area to enhance consolidated upstream and midstream returns and take advantage of improving pricing in the basin, all the while minimizing the environmental footprint of our operations as we utilize existing infrastructure. Combined with the stability of the rate-regulated businesses, we expect to responsibly grow the Company in a manner that strengthens our financial position and maximizes the value of our assets for our shareholders for years to come.”
FISCAL 2019 GUIDANCE
National Fuel is revising the preliminary guidance for fiscal 2019 that was announced in conjunction with the Company’s third quarter earnings release. The Company is now projecting that earnings will be within the range of $3.35 to $3.65 per share, or $3.50 per share at the midpoint of the range, which represents a $0.16 per share increase from fiscal 2018’s adjusted operating results. The $0.05 per share increase from the preliminary guidance is primarily due to higher expected price realizations on Seneca’s production and lower projected operating expenses at the Utility and Pipeline and Storage segments.
Seneca’s net production is expected to be in the range of 210 to 230 Bcfe, unchanged from the preliminary guidance, and a 24 percent increase over fiscal 2018 at the midpoint of the range. The increase in Seneca’s production is also expected to generate higher throughput and revenues for the Company’s Gathering segment. At the midpoint of the guidance range, Gathering segment revenues are forecasted to increase by approximately $27 million, or 25 percent, to $135 million for fiscal 2019. Under current development plans in Appalachia, the Company expects to grow its production and gathering throughput at a 15 to 20 percent compound annual growth rate through fiscal 2022.
In addition to higher earnings expectations, the Company’s consolidated capital expenditures in fiscal 2019 are expected to be lower than disclosed in last quarter’s preliminary guidance due to reductions at the Exploration and Production and Pipeline and Storage segments. The new range is expected to be $725 million to $810 million, at the midpoint a $167 million increase from the Company’s fiscal 2018 capital expenditures. The primary driver of the year over year increase is Seneca’s development activity in Appalachia, where the Company plans to operate three drilling rigs for the entirety of the fiscal year. Despite the increase in Seneca’s spending, the capital budget for the Gathering segment is expected to be relatively flat year over year as Seneca shifts its Utica development into areas in the WDA where gathering infrastructure already exists and is currently being utilized to move Marcellus production.
Seneca currently has physical firm sales contracts in place with third parties that provide fixed pricing basis protection on 177 Bcf, or more than 85 percent, of its projected fiscal 2019 natural gas production. A majority of these sales, nearly 150 Bcf, are also matched with a financial hedge that locks in revenues on that production at a weighted average realized price of $2.43 per Mcf, net of firm transportation costs. With price certainty on a majority of its natural gas production, strong margins on California oil production, growing Gathering segment revenues, and stable earnings from the Company’s rate-regulated Pipeline and Storage and Utility segments, the Company expects that substantially all of its fiscal 2019 capital expenditures will be funded by internally generated cash flows.
Additional details on the Company’s forecast assumptions and business segment guidance for fiscal 2019 are outlined in the table on page 8.
DISCUSSION OF RESULTS BY SEGMENT
The following discussion of the earnings of each operating segment is summarized in a tabular form on pages 9 through 12 of this report. It may be helpful to refer to those tables while reviewing this discussion. Note that management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, interest and other income, impairments, and other items reflected in operating income that impact comparability.
Upstream Business
Exploration and Production Segment
The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC (“Seneca”). Seneca explores for, develops and produces natural gas and oil reserves, primarily in Pennsylvania and California.
| Three Months Ended | Fiscal Year Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||||
| Net Income | $ | 19,580 | $ | 30,354 | $ | (10,774 | ) | $ | 180,632 | $ | 129,326 | $ | 51,306 | ||||||||||
| Net Income Per Share (Diluted) | $ | 0.23 | $ | 0.35 | $ | (0.12 | ) | $ | 2.09 | $ | 1.50 | $ | 0.59 | ||||||||||
| Adjusted EBITDA | $ | 80,555 | $ | 75,303 | $ | 5,252 | $ | 315,753 | $ | 360,979 | $ | (45,226 | ) | ||||||||||
The Exploration and Production segment’s fourth quarter earnings declined $10.8 million, as the positive impacts of higher natural gas production, better realized crude oil prices, and lower lease operating and transportation (“LOE”) and other operating expenses were more than offset by the negative impacts of lower realized natural gas prices, higher depreciation, depletion and amortization (“DD&A”) expense and a higher effective income tax rate.
Seneca’s fourth quarter net production was 47.3 billion cubic feet equivalent (“Bcfe”), an increase of 7.0 Bcfe from the prior year. Natural gas production increased 7.4 billion cubic feet (“Bcf”), or 20 percent, due primarily to production from new Marcellus and Utica wells completed and connected to sales in the EDA-Lycoming and WDA-Clermont development areas as a result of increased drilling activity. Seneca’s average realized natural gas price, after the impact of hedging and transportation costs, was $2.45 per thousand cubic feet (“Mcf”), a decrease of $0.46 per Mcf from the prior year. The decline in Seneca’s average realized natural gas price is primarily attributable to the expiration of physical firm sales and financial hedge contracts over the past 12 months that had favorable pricing relative to firm sales and hedges settled in the current quarter.
Seneca’s oil production for the fourth quarter decreased 77 thousand barrels (“Mbbl”) in the fourth quarter due largely to the impact of the sale of Seneca’s Sespe properties in California in the third quarter of fiscal 2018. Sespe generated 67 Mbbl of production for the Company in the prior year’s fourth quarter. Seneca’s average realized oil price, after the impact of hedging, was $57.71 per barrel (“Bbl”), an increase of $2.94 per Bbl over the prior year. The improvement in oil price realizations was due primarily to higher market prices for West Texas Intermediate (WTI) crude oil during the quarter and stronger price differentials relative to WTI at local sales points in California.
LOE expense for the fourth quarter decreased $1.5 million due mostly to lower operating costs in California following the sale of Seneca’s Sespe properties combined with lower workover and steam fuel costs across its other California properties. These decreases were partially offset by higher gathering expenses in Appalachia due to the increase in natural gas production. On a per unit of production basis, LOE expense was $0.88 per thousand cubic feet equivalent (“Mcfe”), a decrease of $0.19 per Mcfe from the prior year. Other operating expenses decreased $2.4 million due mainly to a one-time payment made in the prior year to reimburse a third-party pipeline operator for development costs.
DD&A expense for the fourth quarter increased $6.4 million due to the increase in production and a higher per unit depletion rate. The depletion rate for the quarter increased by $0.04 per Mcfe to $0.71 per Mcfe due mainly to a higher depletable fixed asset balance at September 30, 2018, as Seneca has increased development activity in Appalachia over the past year.
Income tax expense increased $9.0 million versus the prior year due largely to the combined impact of deferred state income tax adjustments recorded in the current and the prior year. The anticipated increase in Seneca’s development activity under a three-rig program in Appalachia resulted in a reapportionment of projected Pennsylvania state income taxes and increased the effective tax rate used to calculate the segment’s deferred state income tax liability at September 30, 2018. Coupled with a $7.9 million positive adjustment recorded in the prior year, which was related to the expected state income tax benefits of Seneca’s capacity on the Atlantic Sunrise project, the current year $2.3 million adjustment negatively impacted income tax expense by $10.2 million versus the prior year. Additionally, the Company recorded an adjustment in the current quarter relating to the remeasurement of Seneca’s deferred income taxes due to the enactment of the 2017 Tax Reform Act. This $2.8 million adjustment reduced the initial estimated benefit recorded in the first quarter of fiscal 2018 and increased income tax expense for the quarter. These negative impacts to the segment’s effective tax rate were partially offset by a decrease in the federal statutory rate as a result of the 2017 Tax Reform Act.
Year End Proved Reserves
Seneca’s total proved natural gas and crude oil reserves at September 30, 2018 increased 369 Bcfe, or 17 percent, to 2,523 Bcfe from 2,154 Bcfe at September 30, 2017. In fiscal 2018, Seneca recorded 536 Bcfe of proved reserve extensions and discoveries, primarily from Utica and Marcellus locations in Appalachia, and 108 Bcfe of net positive revisions due largely to improvements in well performance. Seneca sold 57 Bcfe of Marcellus proved reserves in connection with the conveyance of the last joint development pad in the WDA, and another 39 Bcfe of proved reserves (73 percent oil) with the sale of the Sespe properties in California. Seneca’s total proved undeveloped reserves (“PUDs”) at the end of fiscal 2018 were 757 Bcfe, only 30 percent of total proved reserves.
Adjusting for sales, Seneca replaced 361 percent of its production in fiscal 2018, up from the 225 percent reserve replacement achieved in fiscal 2017. The year over year improvement was due mainly to the success of Seneca’s Utica Shale appraisal program in the WDA and increased development activity in the EDA-Lycoming area. Seneca’s three-year average finding and development cost at the end of fiscal 2018 was $0.74 per Mcfe, down $0.24 per Mcfe from the three-year average of $0.98 per Mcfe at the end of fiscal 2017.
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 | Fiscal Year Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||||
| Net Income | $ | 15,337 | $ | 13,791 | $ | 1,546 | $ | 97,246 | $ | 68,446 | $ | 28,800 | |||||||||||
| Net Income Per Share (Diluted) | $ | 0.18 | $ | 0.16 | $ | 0.02 | $ | 1.13 | $ | 0.80 | $ | 0.33 | |||||||||||
| Adjusted EBITDA | $ | 38,052 | $ | 39,049 | $ | (997 | ) | $ | 185,393 | $ | 180,328 | $ | 5,065 | ||||||||||
The Pipeline and Storage segment’s fourth quarter earnings increased $1.5 million due primarily to higher operating revenues, and a lower effective income tax rate, offset partially by higher operating expenses. Operating revenues increased $2.6 million, or 4 percent, versus the prior year due to new demand charges for transportation service on Supply Corporation’s Line D Expansion project, which was placed in service on November 1, 2017, an increase in storage revenues resulting from Supply Corporation’s acquisition of the remaining interest in a jointly owned storage field during the quarter, additional revenues from short-term transportation contracts, and surcharge revenues relating to Supply Corporation’s greenhouse gas and pipeline safety system enhancements that also went into effect in November 2017.
Operation and Maintenance (“O&M”) expense increased $2.8 million over the prior year due primarily to an increase in compressor and facility maintenance activity during the quarter, offset partially by lower pension and other post-retirement benefit expenses. The combined $1.1 million increase in DD&A expense and property, franchise and other taxes was due to projects and new facilities placed in-service over the past year. Income tax expense decreased $2.3 million due primarily to the 2017 Tax Reform Act, which reduced the Company’s federal statutory corporate tax rate.
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 | Fiscal Year Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||||
| Net Income | $ | 14,783 | $ | 9,003 | $ | 5,780 | $ | 83,519 | $ | 40,377 | $ | 43,142 | |||||||||||
| Net Income Per Share (Diluted) | $ | 0.17 | $ | 0.10 | $ | 0.07 | $ | 0.97 | $ | 0.47 | $ | 0.50 | |||||||||||
| Adjusted EBITDA | $ | 23,732 | $ | 21,206 | $ | 2,526 | $ | 91,609 | $ | 94,380 | $ | (2,771 | ) | ||||||||||
The $5.8 million increase in the Gathering segment’s fourth quarter earnings was due mainly to higher revenues and a lower effective income tax rate, offset partially by an increase in operating expenses. Operating revenues increased $3.5 million, or 14 percent, due primarily to a 7.5 Bcf increase in throughput from Seneca’s Appalachian natural gas production. The Trout Run gathering system saw a 5.0 Bcf increase in throughput after Seneca resumed development activities in Lycoming County, Pa., in late fiscal 2017 and avoided price-related curtailments for much of fiscal 2018. Throughput on the Covington and Clermont gathering systems increased 2.2 Bcf and 1.1 Bcf, respectively.
O&M expense increased $0.8 million due largely to the operation of new compression facilities along the Covington gathering system, which were acquired from affiliate Seneca in March 2018, and an increase in facilities and maintenance activity at the Trout Run gathering system. The decrease in the effective income tax rate was due primarily to the 2017 Tax Reform Act, which reduced the Company’s federal statutory corporate tax rate, and lower state income taxes resulting from tax planning and restructuring activities that were implemented during the quarter.
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 | Fiscal Year Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||||
| Net Income / (Loss) | $ | (7,067 | ) | $ | (4,168 | ) | $ | (2,899 | ) | $ | 51,217 | $ | 46,935 | $ | 4,282 | ||||||||
| Net Income / (Loss) Per Share (Diluted) | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.03 | ) | $ | 0.59 | $ | 0.55 | $ | 0.04 | ||||||||
| Adjusted EBITDA | $ | 6,792 | $ | 11,846 | $ | (5,054 | ) | $ | 144,155 | $ | 151,078 | $ | (6,923 | ) | |||||||||
The $2.9 million increase in the Utility segment’s fourth quarter net loss was due primarily to lower margin (operating revenues less purchased gas costs) and higher O&M expense, offset partially by lower property taxes and interest expense. The decrease in the Utility’s fourth quarter margin was largely due to a change in the allocation of a cost tracking mechanism for the low income customer program in the Company’s New York service territory. O&M expense increased $2.1 million due primarily to higher payroll costs and bad debt expense, offset partially by lower pension and other post-retirement benefit expenses.
Energy Marketing Segment
The Energy Marketing segment’s operations are carried out by National Fuel Resources, Inc. (“NFR”). NFR markets natural gas to industrial, wholesale, commercial, public authority, and residential customers primarily in western and central New York and northwestern Pennsylvania, offering competitively priced natural gas to its customers.
| Three Months Ended | Fiscal Year Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||||
| Net Income / (Loss) | $ | (1,061 | ) | $ | (614 | ) | $ | (447 | ) | $ | 373 | $ | 1,509 | $ | (1,136 | ) | |||||||
| Net Income / (Loss) Per Share (Diluted) | $ | (0.01 | ) | $ | (0.01 | ) | $ | — | $ | — | $ | 0.02 | $ | (0.02 | ) | ||||||||
| Adjusted EBITDA | $ | (1,652 | ) | $ | (1,134 | ) | $ | (518 | ) | $ | 536 | $ | 2,080 | $ | (1,544 | ) | |||||||
The Energy Marketing segment’s fourth quarter net loss of $1.1 million increased $0.4 million over the prior year due largely to lower margins (operating revenues less purchased gas costs). NFR’s customer margins were negatively impacted by stronger natural gas prices at local purchase points relative to NYMEX-based customer sales contracts.
Corporate and All Other
For the fourth quarter of fiscal 2018, the Corporate and All Other category had a net loss of $3.6 million, a $0.8 million increase over the $2.8 million net loss in the prior year.
EARNINGS TELECONFERENCE
The Company will host a conference call on Friday, November 2, 2018, at 11 a.m. Eastern Time to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the NFG Investor Relations News & Events page at National Fuel’s website at investor.nationalfuelgas.com. For those without Internet access, audio access is also provided by dialing (toll-free) 833-287-0795, using conference ID number “5899309.” 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 “5899309.” Both the webcast and a telephonic replay will be available until the close of business on Friday, November 9, 2018.
National Fuel is an integrated energy company reporting financial results for five operating segments: Exploration and Production, Pipeline and Storage, Gathering, Utility, and Energy Marketing. Additional information about National Fuel is available at www.nationalfuelgas.com.
Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in the price of natural gas or oil; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; changes in price differentials between similar quantities of natural gas or oil sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; the impact of potential information technology, cybersecurity or data security breaches; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
GUIDANCE SUMMARY
As discussed on page 2, the Company is revising its earnings, capital expenditure and operational guidance for fiscal 2019. Additional details on the Company’s forecast assumptions and business segment guidance for fiscal 2019 are outlined in the table below.
The revised fiscal 2019 earnings guidance does not include any impact to the remeasurement of deferred income taxes resulting from the 2017 Tax Reform Act. While it is possible that the Company will record additional adjustments to its deferred income taxes as a result of the 2017 Tax Reform Act during the first three months of fiscal 2019, the amounts of these and other potential adjustments are not reasonably determinable at this time. The final determination of the impact of the income tax effects of certain items will require further interpretation of the 2017 Tax Reform Act from yet to be issued U.S. Treasury regulations, state income tax guidance, federal and state regulatory guidance, and possible technical corrections. Some or all of these factors may be significant.
| Updated FY 2019 Guidance | Previous FY 2019 Guidance | ||
| Consolidated Earnings per Share | $3.35 to $3.65 | $3.30 to $3.60 | |
| Consolidated Effective Tax Rate | ~25% | ~25% | |
| Capital Expenditures (Millions) | |||
| Exploration and Production | $460 – $495 | $460 – $500 | |
| Pipeline and Storage | $120 – $150 | $140 – $180 | |
| Gathering | $55 – $65 | $55 – $65 | |
| Utility | $90 – $100 | $90 – $100 | |
| Consolidated Capital Expenditures | $725 – $810 | $745 – $845 | |
| Exploration & Production Segment Guidance | |||
| Commodity Price Assumptions | |||
| NYMEX natural gas price (winter | summer) | $3.00 /MMBtu | $2.65 /MMBtu | $2.75 /MMBtu | |
| Appalachian basin spot price (winter | summer) | $2.50 /MMBtu | $2.00 /MMBtu | $2.40 /MMBtu | $2.00 /MMBtu | |
| NYMEX (WTI) crude oil price | $70.00 /Bbl | $65.00 /Bbl | |
| California oil price (% of WTI) | 100% | 100% | |
| Production (Bcfe) | |||
| East Division – Appalachia | 194 to 214 | 193 to 213 | |
| West Division – California | ~ 16 | ~ 17 | |
| Total Production | 210 to 230 | 210 to 230 | |
| E&P Operating Costs ($/Mcfe) | |||
| LOE | $0.85 – $0.90 | $0.85 – $0.90 | |
| G&A | $0.25 – $0.35 | $0.25 – $0.35 | |
| DD&A | $0.70 – $0.75 | $0.70 – $0.75 | |
| Other Business Segment Guidance (Millions) | |||
| Gathering Segment Revenues | $130 – $140 | $130 – $140 | |
| Pipeline and Storage Segment Revenues | ~$285 | ~$285 |
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS | |||||||||||||||||||||||||||
| QUARTER ENDED SEPTEMBER 30, 2018 | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| Upstream | Midstream Businesses |
Downstream Businesses |
|||||||||||||||||||||||||
| Exploration & | Pipeline & | Energy | Corporate / | ||||||||||||||||||||||||
| (Thousands of Dollars) | Production | Storage | Gathering | Utility | Marketing | All Other | Consolidated* | ||||||||||||||||||||
| Fourth quarter 2017 GAAP earnings | $ | 30,354 | $ | 13,791 | $ | 9,003 | $ | (4,168 | ) | $ | (614 | ) | $ | (2,789 | ) | $ | 45,577 | ||||||||||
| Earnings drivers** | |||||||||||||||||||||||||||
| Higher (lower) crude oil prices | 1,143 | 1,143 | |||||||||||||||||||||||||
| Higher (lower) natural gas prices | (13,299 | ) | (13,299 | ) | |||||||||||||||||||||||
| Higher (lower) natural gas production | 14,058 | 14,058 | |||||||||||||||||||||||||
| Higher (lower) crude oil production | (2,752 | ) | (2,752 | ) | |||||||||||||||||||||||
| Derivative mark to market adjustments | 451 | 451 | |||||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | 954 | 954 | |||||||||||||||||||||||||
| Lower (higher) depreciation / depletion | (4,130 | ) | (387 | ) | (260 | ) | (4,777 | ) | |||||||||||||||||||
| Higher (lower) transportation and storage revenues | 1,487 | 1,487 | |||||||||||||||||||||||||
| Higher (lower) gathering and processing revenues | 2,267 | 2,267 | |||||||||||||||||||||||||
| Lower (higher) other operating expenses | 1,980 | (1,841 | ) | (528 | ) | (1,334 | ) | (1,723 | ) | ||||||||||||||||||
| Lower (higher) property, franchise and other taxes | 340 | (328 | ) | 12 | |||||||||||||||||||||||
| Regulatory true-up adjustments | (1,746 | ) | (1,746 | ) | |||||||||||||||||||||||
| Higher (lower) margins | (379 | ) | (379 | ) | |||||||||||||||||||||||
| Lower (higher) interest expense | 70 | 374 | 358 | 802 | |||||||||||||||||||||||
| Loss on reacquired debt | (626 | ) | (626 | ) | |||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 112 | (966 | ) | 610 | (92 | ) | (38 | ) | 1,842 | 1,468 | |||||||||||||||||
| Deferred state income tax adjustment | (10,193 | ) | (10,193 | ) | |||||||||||||||||||||||
| Impact of tax restructuring | 2,346 | 2,346 | |||||||||||||||||||||||||
| Impact of 2017 Tax Reform Act | |||||||||||||||||||||||||||
| Impact of tax rate change on current period earnings | 3,297 | 2,998 | 1,474 | 320 | (105 | ) | (1,344 | ) | 6,640 | ||||||||||||||||||
| Refund provision on tax rate change | (559 | ) | (559 | ) | |||||||||||||||||||||||
| Remeasurement of deferred income taxes under 2017 Tax Reform | (2,804 | ) | (12 | ) | (39 | ) | (661 | ) | (3,516 | ) | |||||||||||||||||
| All other / rounding | 625 | 209 | (117 | ) | 154 | 114 | (626 | ) | 359 | ||||||||||||||||||
| Fourth quarter 2018 GAAP earnings | $ | 19,580 | $ | 15,337 | $ | 14,783 | $ | (7,067 | ) | $ | (1,061 | ) | $ | (3,578 | ) | $ | 37,994 | ||||||||||
| * Amounts do not reflect intercompany eliminations | |||||||||||||||||||||||||||
| ** Earnings drivers have been calculated using a 35% federal statutory rate. The impact of the change to a blended year 24.5% federal statutory rate is broken out separately under the caption “Impact of 2017 Tax Reform Act.” | |||||||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE | ||||||||||||||||||||||||||||
| QUARTER ENDED SEPTEMBER 30, 2018 | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| Upstream | Midstream Businesses |
Downstream Businesses |
||||||||||||||||||||||||||
| Exploration & | Pipeline & | Energy | Corporate / | |||||||||||||||||||||||||
| Production | Storage | Gathering | Utility | Marketing | All Other | Consolidated* | ||||||||||||||||||||||
| Fourth quarter 2017 GAAP earnings | $ | 0.35 | $ | 0.16 | $ | 0.10 | $ | (0.05 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | 0.53 | |||||||||||
| Earnings drivers** | ||||||||||||||||||||||||||||
| Higher (lower) crude oil prices | 0.01 | 0.01 | ||||||||||||||||||||||||||
| Higher (lower) natural gas prices | (0.15 | ) | (0.15 | ) | ||||||||||||||||||||||||
| Higher (lower) natural gas production | 0.16 | 0.16 | ||||||||||||||||||||||||||
| Higher (lower) crude oil production | (0.03 | ) | (0.03 | ) | ||||||||||||||||||||||||
| Derivative mark to market adjustments | 0.01 | 0.01 | ||||||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | 0.01 | 0.01 | ||||||||||||||||||||||||||
| Lower (higher) depreciation / depletion | (0.05 | ) | — | — | (0.05 | ) | ||||||||||||||||||||||
| Higher (lower) transportation and storage revenues | 0.02 | 0.02 | ||||||||||||||||||||||||||
| Higher (lower) gathering and processing revenues | 0.03 | 0.03 | ||||||||||||||||||||||||||
| Lower (higher) other operating expenses | 0.02 | (0.02 | ) | (0.01 | ) | (0.02 | ) | (0.03 | ) | |||||||||||||||||||
| Lower (higher) property, franchise and other taxes | — | — | — | |||||||||||||||||||||||||
| Regulatory true-up adjustments | (0.02 | ) | (0.02 | ) | ||||||||||||||||||||||||
| Higher (lower) margins | — | — | ||||||||||||||||||||||||||
| Lower (higher) interest expense | — | — | — | — | ||||||||||||||||||||||||
| Loss on reacquired debt | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | — | (0.01 | ) | 0.01 | — | — | 0.02 | 0.02 | ||||||||||||||||||||
| Deferred state income tax adjustment | (0.12 | ) | (0.12 | ) | ||||||||||||||||||||||||
| Impact of tax restructuring | 0.03 | 0.03 | ||||||||||||||||||||||||||
| Impact of 2017 Tax Reform Act | ||||||||||||||||||||||||||||
| Impact of tax rate change on current period earnings | 0.04 | 0.03 | 0.02 | — | — | (0.02 | ) | 0.07 | ||||||||||||||||||||
| Refund provision on tax rate change | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||||||
| Remeasurement of deferred income taxes under 2017 Tax Reform | (0.03 | ) | — | — | (0.01 | ) | (0.04 | ) | ||||||||||||||||||||
| All other / rounding | 0.02 | — | (0.01 | ) | 0.02 | — | (0.02 | ) | 0.01 | |||||||||||||||||||
| Fourth quarter 2018 GAAP earnings | $ | 0.23 | $ | 0.18 | $ | 0.17 | $ | (0.08 | ) | $ | (0.01 | ) | $ | (0.05 | ) | $ | 0.44 | |||||||||||
| * Amounts do not reflect intercompany eliminations | ||||||||||||||||||||||||||||
| ** Earnings drivers have been calculated using a 35% federal statutory rate. The impact of the change to a blended year 24.5% federal statutory rate is broken out separately under the caption “Impact of 2017 Tax Reform Act.” | ||||||||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS | |||||||||||||||||||||||||||
| TWELVE MONTHS ENDED SEPTEMBER 30, 2018 | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| Upstream | Midstream Businesses |
Downstream Businesses |
|||||||||||||||||||||||||
| Exploration & | Pipeline & | Energy | Corporate / | ||||||||||||||||||||||||
| (Thousands of Dollars) | Production | Storage | Gathering | Utility | Marketing | All Other | Consolidated* | ||||||||||||||||||||
| Fiscal 2017 GAAP earnings | $ | 129,326 | $ | 68,446 | $ | 40,377 | $ | 46,935 | $ | 1,509 | $ | (3,111 | ) | $ | 283,482 | ||||||||||||
| Earnings drivers** | |||||||||||||||||||||||||||
| Higher (lower) crude oil prices | 7,892 | 7,892 | |||||||||||||||||||||||||
| Higher (lower) natural gas prices | (45,115 | ) | (45,115 | ) | |||||||||||||||||||||||
| Higher (lower) natural gas production | 11,146 | 11,146 | |||||||||||||||||||||||||
| Higher (lower) crude oil production | (7,181 | ) | (7,181 | ) | |||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | 2,126 | 2,126 | |||||||||||||||||||||||||
| Lower (higher) depreciation / depletion | (7,610 | ) | (1,474 | ) | (748 | ) | (631 | ) | (10,463 | ) | |||||||||||||||||
| Higher (lower) transportation and storage revenues | 3,612 | 3,612 | |||||||||||||||||||||||||
| Lower (higher) other operating expenses | 345 | 442 | (1,827 | ) | (1,839 | ) | 275 | (2,604 | ) | ||||||||||||||||||
| Lower (higher) property, franchise and other taxes | 667 | (765 | ) | 729 | 631 | ||||||||||||||||||||||
| Impact of new rates | 2,789 | 2,789 | |||||||||||||||||||||||||
| Colder weather | 5,199 | 5,199 | |||||||||||||||||||||||||
| Regulatory true-up adjustments | (3,903 | ) | (3,903 | ) | |||||||||||||||||||||||
| Higher (lower) margins | (1,281 | ) | 1,578 | 297 | |||||||||||||||||||||||
| Lower (higher) interest expense | 244 | 1,518 | 1,130 | 2,892 | |||||||||||||||||||||||
| Loss on reacquired debt | (626 | ) | (626 | ) | |||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 2,434 | (703 | ) | 1,015 | (34 | ) | 41 | (502 | ) | 2,251 | |||||||||||||||||
| Deferred state income tax adjustment | (8,065 | ) | (8,065 | ) | |||||||||||||||||||||||
| Impact of tax restructuring | 2,346 | 2,346 | |||||||||||||||||||||||||
| Impact of 2017 Tax Reform Act | |||||||||||||||||||||||||||
| Impact of tax rate change on current period earnings | 20,117 | 11,724 | 8,042 | 7,752 | 128 | (703 | ) | 47,060 | |||||||||||||||||||
| Refund provision on tax rate change | (8,240 | ) | (8,240 | ) | |||||||||||||||||||||||
| Remeasurement of deferred income taxes under 2017 Tax Reform | 73,706 | 14,100 | 34,488 | (398 | ) | (18,412 | ) | 103,484 | |||||||||||||||||||
| All other / rounding | 1,226 | 346 | (174 | ) | 699 | 99 | 315 | 2,511 | |||||||||||||||||||
| Fiscal 2018 GAAP earnings | $ | 180,632 | $ | 97,246 | $ | 83,519 | $ | 51,217 | $ | 373 | $ | (21,466 | ) | $ | 391,521 | ||||||||||||
| * Amounts do not reflect intercompany eliminations | |||||||||||||||||||||||||||
| ** Earnings drivers have been calculated using a 35% federal statutory rate. The impact of the change to a blended year 24.5% federal statutory rate is broken out separately under the caption “Impact of 2017 Tax Reform Act.” | |||||||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||||||
| RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE | ||||||||||||||||||||||||||||
| TWELVE MONTHS ENDED SEPTEMBER 30, 2018 | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| Upstream | Midstream Businesses |
Downstream Businesses |
||||||||||||||||||||||||||
| Exploration & | Pipeline & | Energy | Corporate / | |||||||||||||||||||||||||
| Production | Storage | Gathering | Utility | Marketing | All Other | Consolidated* | ||||||||||||||||||||||
| Fiscal 2017 GAAP earnings | $ | 1.50 | $ | 0.80 | $ | 0.47 | $ | 0.55 | $ | 0.02 | $ | (0.04 | ) | $ | 3.30 | |||||||||||||
| Earnings drivers** | ||||||||||||||||||||||||||||
| Higher (lower) crude oil prices | 0.09 | 0.09 | ||||||||||||||||||||||||||
| Higher (lower) natural gas prices | (0.52 | ) | (0.52 | ) | ||||||||||||||||||||||||
| Higher (lower) natural gas production | 0.13 | 0.13 | ||||||||||||||||||||||||||
| Higher (lower) crude oil production | (0.08 | ) | (0.08 | ) | ||||||||||||||||||||||||
| Lower (higher) lease operating and transportation expenses | 0.02 | 0.02 | ||||||||||||||||||||||||||
| Lower (higher) depreciation / depletion | (0.09 | ) | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.13 | ) | ||||||||||||||||||
| Higher (lower) transportation and storage revenues | 0.04 | 0.04 | ||||||||||||||||||||||||||
| Lower (higher) other operating expenses | — | 0.01 | (0.02 | ) | (0.02 | ) | — | (0.03 | ) | |||||||||||||||||||
| Lower (higher) property, franchise and other taxes | 0.01 | (0.01 | ) | 0.01 | 0.01 | |||||||||||||||||||||||
| Impact of new rates | 0.03 | 0.03 | ||||||||||||||||||||||||||
| Colder weather | 0.06 | 0.06 | ||||||||||||||||||||||||||
| Regulatory true-up adjustments | (0.05 | ) | (0.05 | ) | ||||||||||||||||||||||||
| Higher (lower) margins | (0.01 | ) | 0.02 | 0.01 | ||||||||||||||||||||||||
| Lower (higher) interest expense | — | 0.02 | 0.01 | 0.03 | ||||||||||||||||||||||||
| Loss on reacquired debt | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||||||
| Lower (higher) income tax expense / effective tax rate | 0.03 | (0.01 | ) | 0.01 | — | — | (0.01 | ) | 0.02 | |||||||||||||||||||
| Deferred state income tax adjustment | (0.09 | ) | (0.09 | ) | ||||||||||||||||||||||||
| Impact of tax restructuring | 0.03 | 0.03 | ||||||||||||||||||||||||||
| Impact of 2017 Tax Reform Act | ||||||||||||||||||||||||||||
| Impact of tax rate change on current period earnings | 0.23 | 0.14 | 0.09 | 0.09 | — | (0.01 | ) | 0.54 | ||||||||||||||||||||
| Refund provision on tax rate change | (0.10 | ) | (0.10 | ) | ||||||||||||||||||||||||
| Remeasurement of deferred income taxes under 2017 Tax Reform | 0.85 | 0.16 | 0.40 | — | (0.21 | ) | 1.20 | |||||||||||||||||||||
| All other / rounding | 0.02 | — | — | 0.01 | (0.01 | ) | 0.01 | 0.03 | ||||||||||||||||||||
| Fiscal 2018 GAAP earnings | $ | 2.09 | $ | 1.13 | $ | 0.97 | $ | 0.59 | $ | — | $ | (0.25 | ) | $ | 4.53 | |||||||||||||
| * Amounts do not reflect intercompany eliminations | ||||||||||||||||||||||||||||
| ** Earnings drivers have been calculated using a 35% federal statutory rate. The impact of the change to a blended year 24.5% federal statutory rate is broken out separately under the caption “Impact of 2017 Tax Reform Act.” | ||||||||||||||||||||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||
| (Thousands of Dollars, except per share amounts) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| SUMMARY OF OPERATIONS | 2018 | 2017 | 2018 | 2017 | |||||||||||
| Operating Revenues: | |||||||||||||||
| Utility and Energy Marketing Revenues | $ | 93,240 | $ | 92,456 | $ | 812,474 | $ | 755,485 | |||||||
| Exploration and Production and Other Revenues | 143,998 | 144,049 | 569,808 | 617,666 | |||||||||||
| Pipeline and Storage and Gathering Revenues | 51,958 | 50,432 | 210,386 | 206,730 | |||||||||||
| 289,196 | 286,937 | 1,592,668 | 1,579,881 | ||||||||||||
| Operating Expenses: | |||||||||||||||
| Purchased Gas | 14,968 | 10,905 | 337,822 | 275,254 | |||||||||||
| Operation and Maintenance: | |||||||||||||||
| Utility and Energy Marketing | 42,383 | 40,497 | 200,780 | 199,293 | |||||||||||
| Exploration and Production and Other | 35,114 | 42,946 | 141,381 | 145,099 | |||||||||||
| Pipeline and Storage and Gathering | 32,796 | 29,184 | 100,245 | 98,200 | |||||||||||
| Property, Franchise and Other Taxes | 20,148 | 20,627 | 84,393 | 84,995 | |||||||||||
| Depreciation, Depletion and Amortization | 63,159 | 55,383 | 240,961 | 224,195 | |||||||||||
| 208,568 | 199,542 | 1,105,582 | 1,027,036 | ||||||||||||
| Operating Income | 80,628 | 87,395 | 487,086 | 552,845 | |||||||||||
| Other Income (Expense): | |||||||||||||||
| Interest Income | 1,859 | 1,269 | 6,766 | 4,113 | |||||||||||
| Other Income | 1,206 | 2,316 | 4,697 | 7,043 | |||||||||||
| Interest Expense on Long-Term Debt | (28,534 | ) | (29,230 | ) | (110,946 | ) | (116,471 | ) | |||||||
| Other Interest Expense | (834 | ) | (686 | ) | (3,576 | ) | (3,366 | ) | |||||||
| Income Before Income Taxes | 54,325 | 61,064 | 384,027 | 444,164 | |||||||||||
| Income Tax Expense (Benefit) | 16,331 | 15,487 | (7,494 | ) | 160,682 | ||||||||||
| Net Income Available for Common Stock | $ | 37,994 | $ | 45,577 | $ | 391,521 | $ | 283,482 | |||||||
| Earnings Per Common Share | |||||||||||||||
| Basic | $ | 0.44 | $ | 0.53 | $ | 4.56 | $ | 3.32 | |||||||
| Diluted | $ | 0.44 | $ | 0.53 | $ | 4.53 | $ | 3.30 | |||||||
| Weighted Average Common Shares: | |||||||||||||||
| Used in Basic Calculation | 85,953,204 | 85,512,637 | 85,830,597 | 85,364,929 | |||||||||||
| Used in Diluted Calculation | 86,650,677 | 86,238,287 | 86,439,698 | 86,021,386 | |||||||||||
| NATIONAL FUEL GAS COMPANY | |||||||
| AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| September 30, | September 30, | ||||||
| (Thousands of Dollars) | 2018 | 2017 | |||||
| ASSETS | |||||||
| Property, Plant and Equipment | $ | 10,439,839 | $ | 9,945,560 | |||
| Less – Accumulated Depreciation, Depletion and Amortization | 5,462,696 | 5,271,486 | |||||
| Net Property, Plant and Equipment | 4,977,143 | 4,674,074 | |||||
| Current Assets: | |||||||
| Cash and Temporary Cash Investments | 229,606 | 555,530 | |||||
| Hedging Collateral Deposits | 3,441 | 1,741 | |||||
| Receivables – Net | 141,498 | 112,383 | |||||
| Unbilled Revenue | 24,182 | 22,883 | |||||
| Gas Stored Underground | 37,813 | 35,689 | |||||
| Materials and Supplies – at average cost | 35,823 | 33,926 | |||||
| Unrecovered Purchased Gas Costs | 4,204 | 4,623 | |||||
| Other Current Assets | 68,024 | 51,505 | |||||
| Total Current Assets | 544,591 | 818,280 | |||||
| Other Assets: | |||||||
| Recoverable Future Taxes | 115,460 | 181,363 | |||||
| Unamortized Debt Expense | 15,975 | 1,159 | |||||
| Other Regulatory Assets | 112,918 | 174,433 | |||||
| Deferred Charges | 40,025 | 30,047 | |||||
| Other Investments | 132,545 | 125,265 | |||||
| Goodwill | 5,476 | 5,476 | |||||
| Prepaid Post-Retirement Benefit Costs | 82,733 | 56,370 | |||||
| Fair Value of Derivative Financial Instruments | 9,518 | 36,111 | |||||
| Other | 102 | 742 | |||||
| Total Other Assets | 514,752 | 610,966 | |||||
| Total Assets | $ | 6,036,486 | $ | 6,103,320 | |||
| CAPITALIZATION AND LIABILITIES | |||||||
| Capitalization: | |||||||
| Comprehensive Shareholders’ Equity | |||||||
| Common Stock, $1 Par Value Authorized – 200,000,000 Shares; Issued and | |||||||
| Outstanding – 85,956,814 Shares and 85,543,125 Shares, Respectively | $ | 85,957 | $ | 85,543 | |||
| Paid in Capital | 820,223 | 796,646 | |||||
| Earnings Reinvested in the Business | 1,098,900 | 851,669 | |||||
| Accumulated Other Comprehensive Loss | (67,750 | ) | (30,123 | ) | |||
| Total Comprehensive Shareholders’ Equity | 1,937,330 | 1,703,735 | |||||
| Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs | 2,131,365 | 2,083,681 | |||||
| Total Capitalization | 4,068,695 | 3,787,416 | |||||
| Current and Accrued Liabilities: | |||||||
| Notes Payable to Banks and Commercial Paper | — | — | |||||
| Current Portion of Long-Term Debt | — | 300,000 | |||||
| Accounts Payable | 160,031 | 126,443 | |||||
| Amounts Payable to Customers | 3,394 | — | |||||
| Dividends Payable | 36,532 | 35,500 | |||||
| Interest Payable on Long-Term Debt | 19,062 | 35,031 | |||||
| Customer Advances | 13,609 | 15,701 | |||||
| Customer Security Deposits | 25,703 | 20,372 | |||||
| Other Accruals and Current Liabilities | 132,693 | 111,889 | |||||
| Fair Value of Derivative Financial Instruments | 49,036 | 1,103 | |||||
| Total Current and Accrued Liabilities | 440,060 | 646,039 | |||||
| Deferred Credits: | |||||||
| Deferred Income Taxes | 512,686 | 891,287 | |||||
| Taxes Refundable to Customers | 370,628 | 95,739 | |||||
| Cost of Removal Regulatory Liability | 212,311 | 204,630 | |||||
| Other Regulatory Liabilities | 146,743 | 113,716 | |||||
| Pension and Other Post-Retirement Liabilities | 66,103 | 149,079 | |||||
| Asset Retirement Obligations | 108,235 | 106,395 | |||||
| Other Deferred Credits | 111,025 | 109,019 | |||||
| Total Deferred Credits | 1,527,731 | 1,669,865 | |||||
| Commitments and Contingencies | — | — | |||||
| Total Capitalization and Liabilities | $ | 6,036,486 | $ | 6,103,320 | |||
| NATIONAL FUEL GAS COMPANY | ||||||||
| AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Unaudited) | ||||||||
| Twelve Months Ended | ||||||||
| September 30, | ||||||||
| (Thousands of Dollars) | 2018 | 2017 | ||||||
| Operating Activities: | ||||||||
| Net Income Available for Common Stock | $ | 391,521 | $ | 283,482 | ||||
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |
||||||||
| Depreciation, Depletion and Amortization | 240,961 | 224,195 | ||||||
| Deferred Income Taxes | (18,153 | ) | 117,975 | |||||
| Stock-Based Compensation | 15,762 | 12,262 | ||||||
| Other | 16,133 | 16,476 | ||||||
| Change in: | ||||||||
| Hedging Collateral Deposits | (1,700 | ) | (257 | ) | ||||
| Receivables and Unbilled Revenue | (30,882 | ) | (3,380 | ) | ||||
| Gas Stored Underground and Materials and Supplies | (4,021 | ) | (1,417 | ) | ||||
| Unrecovered Purchased Gas Costs | 419 | (2,183 | ) | |||||
| Other Current Assets | (16,519 | ) | 7,849 | |||||
| Accounts Payable | 17,962 | 17,192 | ||||||
| Amounts Payable to Customers | 3,394 | (19,537 | ) | |||||
| Customer Advances | (2,092 | ) | 939 | |||||
| Customer Security Deposits | 5,331 | 4,353 | ||||||
| Other Accruals and Current Liabilities | 3,865 | 27,004 | ||||||
| Other Assets | (9,556 | ) | (2,885 | ) | ||||
| Other Liabilities | 1,178 | 2,183 | ||||||
| Net Cash Provided by Operating Activities | $ | 613,603 | $ | 684,251 | ||||
| Investing Activities: | ||||||||
| Capital Expenditures | $ | (584,004 | ) | $ | (450,335 | ) | ||
| Net Proceeds from Sale of Oil and Gas Producing Properties | 55,506 | 26,554 | ||||||
| Other | (389 | ) | 1,216 | |||||
| Net Cash Used in Investing Activities | $ | (528,887 | ) | $ | (422,565 | ) | ||
| Financing Activities: | ||||||||
| Reduction of Long-Term Debt | $ | (566,512 | ) | $ | — | |||
| Dividends Paid on Common Stock | (143,258 | ) | (139,063 | ) | ||||
| Net Proceeds From Issuance of Long-Term Debt | 295,020 | 295,151 | ||||||
| Net Proceeds From Issuance of Common Stock | 4,110 | 7,784 | ||||||
| Net Cash (Used in) Provided by Financing Activities | $ | (410,640 | ) | $ | 163,872 | |||
| Net Increase (Decrease) in Cash and Temporary Cash Investments | (325,924 | ) | 425,558 | |||||
| Cash and Temporary Cash Investments at Beginning of Period | 555,530 | 129,972 | ||||||
| Cash and Temporary Cash Investments at September 30 | $ | 229,606 | $ | 555,530 | ||||
| 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 | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Total Operating Revenues | $ | 143,167 | $ | 142,952 | $ | 215 | $ | 564,547 | $ | 614,599 | $ | (50,052 | ) | ||||||||
| Operating Expenses: | |||||||||||||||||||||
| Operation and Maintenance: | |||||||||||||||||||||
| General and Administrative Expense | 14,420 | 15,060 | (640 | ) | 60,596 | 58,734 | 1,862 | ||||||||||||||
| Lease Operating and Transportation Expense | 41,642 | 43,110 | (1,468 | ) | 162,721 | 165,991 | (3,270 | ) | |||||||||||||
| All Other Operation and Maintenance Expense | 2,895 | 5,301 | (2,406 | ) | 11,077 | 13,469 | (2,392 | ) | |||||||||||||
| Property, Franchise and Other Taxes | 3,655 | 4,178 | (523 | ) | 14,400 | 15,426 | (1,026 | ) | |||||||||||||
| Depreciation, Depletion and Amortization | 33,567 | 27,212 | 6,355 | 124,274 | 112,565 | 11,709 | |||||||||||||||
| 96,179 | 94,861 | 1,318 | 373,068 | 366,185 | 6,883 | ||||||||||||||||
| Operating Income | 46,988 | 48,091 | (1,103 | ) | 191,479 | 248,414 | (56,935 | ) | |||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 392 | 257 | 135 | 1,479 | 707 | 772 | |||||||||||||||
| Interest Expense on Long-Term Debt | (962 | ) | — | (962 | ) | (962 | ) | — | (962 | ) | |||||||||||
| Other Interest Expense | (13,326 | ) | (13,432 | ) | 106 | (53,326 | ) | (53,702 | ) | 376 | |||||||||||
| Income Before Income Taxes | 33,092 | 34,916 | (1,824 | ) | 138,670 | 195,419 | (56,749 | ) | |||||||||||||
| Income Tax Expense (Benefit) | 13,512 | 4,562 | 8,950 | (41,962 | ) | 66,093 | (108,055 | ) | |||||||||||||
| Net Income | $ | 19,580 | $ | 30,354 | $ | (10,774 | ) | $ | 180,632 | $ | 129,326 | $ | 51,306 | ||||||||
| Net Income Per Share (Diluted) | $ | 0.23 | $ | 0.35 | $ | (0.12 | ) | $ | 2.09 | $ | 1.50 | $ | 0.59 | ||||||||
| 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 | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 51,958 | $ | 50,403 | $ | 1,555 | $ | 210,345 | $ | 206,615 | $ | 3,730 | |||||||||
| Intersegment Revenues | 22,457 | 21,421 | 1,036 | 89,981 | 87,810 | 2,171 | |||||||||||||||
| Total Operating Revenues | 74,415 | 71,824 | 2,591 | 300,326 | 294,425 | 5,901 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | 341 | 90 | 251 | 607 | 271 | 336 | |||||||||||||||
| Operation and Maintenance | 28,452 | 25,618 | 2,834 | 85,456 | 86,135 | (679 | ) | ||||||||||||||
| Property, Franchise and Other Taxes | 7,570 | 7,067 | 503 | 28,870 | 27,691 | 1,179 | |||||||||||||||
| Depreciation, Depletion and Amortization | 11,141 | 10,545 | 596 | 43,463 | 41,196 | 2,267 | |||||||||||||||
| 47,504 | 43,320 | 4,184 | 158,396 | 155,293 | 3,103 | ||||||||||||||||
| Operating Income | 26,911 | 28,504 | (1,593 | ) | 141,930 | 139,132 | 2,798 | ||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 897 | 483 | 414 | 2,748 | 1,467 | 1,281 | |||||||||||||||
| Other Income | 423 | 568 | (145 | ) | 1,757 | 2,511 | (754 | ) | |||||||||||||
| Interest Expense | (7,965 | ) | (8,540 | ) | 575 | (31,383 | ) | (33,717 | ) | 2,334 | |||||||||||
| Income Before Income Taxes | 20,266 | 21,015 | (749 | ) | 115,052 | 109,393 | 5,659 | ||||||||||||||
| Income Tax Expense | 4,929 | 7,224 | (2,295 | ) | 17,806 | 40,947 | (23,141 | ) | |||||||||||||
| Net Income | $ | 15,337 | $ | 13,791 | $ | 1,546 | $ | 97,246 | $ | 68,446 | $ | 28,800 | |||||||||
| Net Income Per Share (Diluted) | $ | 0.18 | $ | 0.16 | $ | 0.02 | $ | 1.13 | $ | 0.80 | $ | 0.33 | |||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| GATHERING SEGMENT | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Revenues from External Customers | $ | — | $ | 29 | $ | (29 | ) | $ | 41 | $ | 115 | $ | (74 | ) | |||||||
| Intersegment Revenues | 28,452 | 24,937 | 3,515 | 107,856 | 107,566 | 290 | |||||||||||||||
| Total Operating Revenues | 28,452 | 24,966 | 3,486 | 107,897 | 107,681 | 216 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Operation and Maintenance | 4,697 | 3,884 | 813 | 16,190 | 13,380 | 2,810 | |||||||||||||||
| Property, Franchise and Other Taxes | 23 | (124 | ) | 147 | 98 | (79 | ) | 177 | |||||||||||||
| Depreciation, Depletion and Amortization | 4,554 | 4,154 | 400 | 17,313 | 16,162 | 1,151 | |||||||||||||||
| 9,274 | 7,914 | 1,360 | 33,601 | 29,463 | 4,138 | ||||||||||||||||
| Operating Income | 19,178 | 17,052 | 2,126 | 74,296 | 78,218 | (3,922 | ) | ||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 130 | 353 | (223 | ) | 1,106 | 994 | 112 | ||||||||||||||
| Other Income | — | — | — | — | 1 | (1 | ) | ||||||||||||||
| Interest Expense | (2,211 | ) | (2,403 | ) | 192 | (9,560 | ) | (9,142 | ) | (418 | ) | ||||||||||
| Income Before Income Taxes | 17,097 | 15,002 | 2,095 | 65,842 | 70,071 | (4,229 | ) | ||||||||||||||
| Income Tax Expense (Benefit) | 2,314 | 5,999 | (3,685 | ) | (17,677 | ) | 29,694 | (47,371 | ) | ||||||||||||
| Net Income | $ | 14,783 | $ | 9,003 | $ | 5,780 | $ | 83,519 | $ | 40,377 | $ | 43,142 | |||||||||
| Net Income Per Share (Diluted) | $ | 0.17 | $ | 0.10 | $ | 0.07 | $ | 0.97 | $ | 0.47 | $ | 0.50 | |||||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| DOWNSTREAM BUSINESSES | |||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | September 30, | September 30, | |||||||||||||||||||
| UTILITY SEGMENT | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 75,231 | $ | 76,080 | $ | (849 | ) | $ | 674,726 | $ | 626,899 | $ | 47,827 | ||||||||
| Intersegment Revenues | 1,399 | 1,758 | (359 | ) | 12,800 | 13,072 | (272 | ) | |||||||||||||
| Total Operating Revenues | 76,630 | 77,838 | (1,208 | ) | 687,526 | 639,971 | 47,555 | ||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | 19,683 | 17,321 | 2,362 | 306,130 | 252,802 | 53,328 | |||||||||||||||
| Operation and Maintenance | 41,520 | 39,448 | 2,072 | 197,257 | 195,231 | 2,026 | |||||||||||||||
| Property, Franchise and Other Taxes | 8,635 | 9,223 | (588 | ) | 39,984 | 40,860 | (876 | ) | |||||||||||||
| Depreciation, Depletion and Amortization | 13,272 | 13,080 | 192 | 53,253 | 52,582 | 671 | |||||||||||||||
| 83,110 | 79,072 | 4,038 | 596,624 | 541,475 | 55,149 | ||||||||||||||||
| Operating Income (Loss) | (6,480 | ) | (1,234 | ) | (5,246 | ) | 90,902 | 98,496 | (7,594 | ) | |||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 468 | 633 | (165 | ) | 1,591 | 1,051 | 540 | ||||||||||||||
| Other Income | 237 | 197 | 40 | 735 | 774 | (39 | ) | ||||||||||||||
| Interest Expense | (6,487 | ) | (7,037 | ) | 550 | (26,753 | ) | (28,492 | ) | 1,739 | |||||||||||
| Income (Loss) Before Income Taxes | (12,262 | ) | (7,441 | ) | (4,821 | ) | 66,475 | 71,829 | (5,354 | ) | |||||||||||
| Income Tax Expense (Benefit) | (5,195 | ) | (3,273 | ) | (1,922 | ) | 15,258 | 24,894 | (9,636 | ) | |||||||||||
| Net Income (Loss) | $ | (7,067 | ) | $ | (4,168 | ) | $ | (2,899 | ) | $ | 51,217 | $ | 46,935 | $ | 4,282 | ||||||
| Net Income (Loss) Per Share (Diluted) | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.03 | ) | $ | 0.59 | $ | 0.55 | $ | 0.04 | ||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| ENERGY MARKETING SEGMENT | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 18,009 | $ | 16,376 | $ | 1,633 | $ | 137,748 | $ | 128,586 | $ | 9,162 | |||||||||
| Intersegment Revenues | 237 | 194 | 43 | 826 | 794 | 32 | |||||||||||||||
| Total Operating Revenues | 18,246 | 16,570 | 1,676 | 138,574 | 129,380 | 9,194 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | 18,242 | 15,982 | 2,260 | 131,481 | 120,317 | 11,164 | |||||||||||||||
| Operation and Maintenance | 1,653 | 1,717 | (64 | ) | 6,554 | 6,978 | (424 | ) | |||||||||||||
| Property, Franchise and Other Taxes | 3 | 5 | (2 | ) | 3 | 5 | (2 | ) | |||||||||||||
| Depreciation, Depletion and Amortization | 69 | 69 | — | 275 | 279 | (4 | ) | ||||||||||||||
| 19,967 | 17,773 | 2,194 | 138,313 | 127,579 | 10,734 | ||||||||||||||||
| Operating Income (Loss) | (1,721 | ) | (1,203 | ) | (518 | ) | 261 | 1,801 | (1,540 | ) | |||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 189 | 153 | 36 | 685 | 571 | 114 | |||||||||||||||
| Other Income | 29 | 19 | 10 | 81 | 75 | 6 | |||||||||||||||
| Interest Expense | (5 | ) | (10 | ) | 5 | (22 | ) | (47 | ) | 25 | |||||||||||
| Income (Loss) Before Income Taxes | (1,508 | ) | (1,041 | ) | (467 | ) | 1,005 | 2,400 | (1,395 | ) | |||||||||||
| Income Tax Expense (Benefit) | (447 | ) | (427 | ) | (20 | ) | 632 | 891 | (259 | ) | |||||||||||
| Net Income (Loss) | $ | (1,061 | ) | $ | (614 | ) | $ | (447 | ) | $ | 373 | $ | 1,509 | $ | (1,136 | ) | |||||
| Net Income (Loss) Per Share (Diluted) | $ | (0.01 | ) | $ | (0.01 | ) | $ | — | $ | — | $ | 0.02 | $ | (0.02 | ) | ||||||
| NATIONAL FUEL GAS COMPANY | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| SEGMENT OPERATING RESULTS AND STATISTICS | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| (Thousands of Dollars, except per share amounts) | September 30, | September 30, | |||||||||||||||||||
| ALL OTHER | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Total Operating Revenues | $ | 776 | $ | 862 | $ | (86 | ) | $ | 4,601 | $ | 2,173 | $ | 2,428 | ||||||||
| Operating Expenses: | |||||||||||||||||||||
| Operation and Maintenance | 313 | 374 | (61 | ) | 1,419 | 1,718 | (299 | ) | |||||||||||||
| Property, Franchise and Other Taxes | 137 | 151 | (14 | ) | 562 | 596 | (34 | ) | |||||||||||||
| Depreciation, Depletion and Amortization | 367 | 136 | 231 | 1,627 | 661 | 966 | |||||||||||||||
| 817 | 661 | 156 | 3,608 | 2,975 | 633 | ||||||||||||||||
| Operating Income (Loss) | (41 | ) | 201 | (242 | ) | 993 | (802 | ) | 1,795 | ||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 117 | 66 | 51 | 388 | 213 | 175 | |||||||||||||||
| Income (Loss) Before Income Taxes | 76 | 267 | (191 | ) | 1,381 | (589 | ) | 1,970 | |||||||||||||
| Income Tax Expense (Benefit) | (27 | ) | 111 | (138 | ) | 1,493 | (247 | ) | 1,740 | ||||||||||||
| Net Income (Loss) | $ | 103 | $ | 156 | $ | (53 | ) | $ | (112 | ) | $ | (342 | ) | $ | 230 | ||||||
| Net Income (Loss) Per Share (Diluted) | $ | — | $ | 0.01 | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | $ | 0.01 | |||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| CORPORATE | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Revenues from External Customers | $ | 55 | $ | 235 | $ | (180 | ) | $ | 660 | $ | 894 | $ | (234 | ) | |||||||
| Intersegment Revenues | 1,047 | 895 | 152 | 4,045 | 3,825 | 220 | |||||||||||||||
| Total Operating Revenues | 1,102 | 1,130 | (28 | ) | 4,705 | 4,719 | (14 | ) | |||||||||||||
| Operating Expenses: | |||||||||||||||||||||
| Operation and Maintenance | 4,995 | 4,832 | 163 | 16,248 | 15,887 | 361 | |||||||||||||||
| Property, Franchise and Other Taxes | 125 | 127 | (2 | ) | 476 | 496 | (20 | ) | |||||||||||||
| Depreciation, Depletion and Amortization | 189 | 187 | 2 | 756 | 750 | 6 | |||||||||||||||
| 5,309 | 5,146 | 163 | 17,480 | 17,133 | 347 | ||||||||||||||||
| Operating Loss | (4,207 | ) | (4,016 | ) | (191 | ) | (12,775 | ) | (12,414 | ) | (361 | ) | |||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | 30,035 | 31,318 | (1,283 | ) | 121,878 | 125,003 | (3,125 | ) | |||||||||||||
| Other Income | 517 | 1,532 | (1,015 | ) | 2,124 | 3,682 | (1,558 | ) | |||||||||||||
| Interest Expense on Long-Term Debt | (27,572 | ) | (29,230 | ) | 1,658 | (109,984 | ) | (116,471 | ) | 6,487 | |||||||||||
| Other Interest Expense | (1,209 | ) | (1,258 | ) | 49 | (5,641 | ) | (4,159 | ) | (1,482 | ) | ||||||||||
| Loss Before Income Taxes | (2,436 | ) | (1,654 | ) | (782 | ) | (4,398 | ) | (4,359 | ) | (39 | ) | |||||||||
| Income Tax Expense (Benefit) | 1,245 | 1,291 | (46 | ) | 16,956 | (1,590 | ) | 18,546 | |||||||||||||
| Net Loss | $ | (3,681 | ) | $ | (2,945 | ) | $ | (736 | ) | $ | (21,354 | ) | $ | (2,769 | ) | $ | (18,585 | ) | |||
| Net Loss Per Share (Diluted) | $ | (0.05 | ) | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.25 | ) | $ | (0.03 | ) | $ | (0.22 | ) | |||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| INTERSEGMENT ELIMINATIONS | 2018 | 2017 | Variance | 2018 | 2017 | Variance | |||||||||||||||
| Intersegment Revenues | $ | (53,592 | ) | $ | (49,205 | ) | $ | (4,387 | ) | $ | (215,508 | ) | $ | (213,067 | ) | $ | (2,441 | ) | |||
| Operating Expenses: | |||||||||||||||||||||
| Purchased Gas | (23,298 | ) | (22,488 | ) | (810 | ) | (100,396 | ) | (98,136 | ) | (2,260 | ) | |||||||||
| Operation and Maintenance | (30,294 | ) | (26,717 | ) | (3,577 | ) | (115,112 | ) | (114,931 | ) | (181 | ) | |||||||||
| (53,592 | ) | (49,205 | ) | (4,387 | ) | (215,508 | ) | (213,067 | ) | (2,441 | ) | ||||||||||
| Operating Income | — | — | — | — | — | — | |||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||
| Interest Income | (30,369 | ) | (31,994 | ) | 1,625 | (123,109 | ) | (125,893 | ) | 2,784 | |||||||||||
| Interest Expense | 30,369 | 31,994 | (1,625 | ) | 123,109 | 125,893 | (2,784 | ) | |||||||||||||
| Net Income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| Net Income 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 | ||||||||||||||||||||||
| 2018 | 2017 | (Decrease) | 2018 | 2017 | (Decrease) | ||||||||||||||||||
| Capital Expenditures: | |||||||||||||||||||||||
| Exploration and Production | $ | 110,801 | (1) | $ | 84,512 | (2) | $ | 26,289 | $ | 380,677 | (1)(2) | $ | 253,057 | (2)(3) | $ | 127,620 | |||||||
| Pipeline and Storage | 39,476 | (1) | 41,808 | (2) | (2,332 | ) | 92,832 | (1)(2) | 95,336 | (2)(3) | (2,504 | ) | |||||||||||
| Gathering | 13,961 | (1) | 8,940 | (2) | 5,021 | 61,728 | (1)(2) | 32,645 | (2)(3) | 29,083 | |||||||||||||
| Utility | 33,621 | (1) | 24,456 | (2) | 9,165 | 85,648 | (1)(2) | 80,867 | (2)(3) | 4,781 | |||||||||||||
| Energy Marketing | 7 | 22 | (15 | ) | 40 | 36 | 4 | ||||||||||||||||
| Total Reportable Segments | 197,866 | 159,738 | 38,128 | 620,925 | 461,941 | 158,984 | |||||||||||||||||
| All Other | — | — | — | 1 | 39 | (38 | ) | ||||||||||||||||
| Corporate | 131 | 49 | 82 | 181 | 137 | 44 | |||||||||||||||||
| Eliminations | (583 | ) | 482 | (1,065 | ) | (20,505 | ) | — | (20,505 | ) | |||||||||||||
| Total Capital Expenditures | $ | 197,414 | $ | 160,269 | $ | 37,145 | $ | 600,602 | $ | 462,117 | $ | 138,485 | |||||||||||
(1) Capital expenditures for the quarter and year ended September 30, 2018, include accounts payable and accrued liabilities related to 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 have been excluded from the Consolidated Statement of Cash Flows at September 30, 2018, since they represent non-cash investing activities at that date.
(2) 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.
(3) Capital expenditures for the year ended September 30, 2017, exclude capital expenditures of $25.2 million, $18.7 million, $5.3 million and $11.2 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2016 and paid during the year ended September 30, 2017. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2016, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2017.
| DEGREE DAYS | |||||||||
| Percent Colder | |||||||||
| (Warmer) Than: | |||||||||
| Three Months Ended September 30 | Normal | 2018 | 2017 | Normal (1) | Last Year (1) | ||||
| Buffalo, NY | 162 | 83 | 109 | (48.8) | (23.9) | ||||
| Erie, PA | 124 | 47 | 97 | (62.1) | (51.5) | ||||
| Twelve Months Ended September 30 | |||||||||
| Buffalo, NY | 6,617 | 6,391 | 5,708 | (3.4) | 12.0 | ||||
| Erie, PA | 6,147 | 5,976 | 5,179 | (2.8) | 15.4 | ||||
(1) Percents compare actual 2018 degree days to normal degree days and actual 2018 degree days to actual 2017 degree days.
| NATIONAL FUEL GAS COMPANY | ||||||||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||||||||
| EXPLORATION AND PRODUCTION INFORMATION | ||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| Increase | Increase | |||||||||||||||||||||||
| 2018 | 2017 | (Decrease) | 2018 | 2017 | (Decrease) | |||||||||||||||||||
| Gas Production/Prices: | ||||||||||||||||||||||||
| Production (MMcf) | ||||||||||||||||||||||||
| Appalachia | 43,238 | 35,576 | 7,662 | 160,499 | 154,093 | 6,406 | ||||||||||||||||||
| West Coast | 511 | 749 | (238 | ) | 2,407 | 2,995 | (588 | ) | ||||||||||||||||
| Total Production | 43,749 | 36,325 | 7,424 | 162,906 | 157,088 | 5,818 | ||||||||||||||||||
| Average Prices (Per Mcf) | ||||||||||||||||||||||||
| Appalachia | $ | 2.34 | $ | 2.42 | $ | (0.08 | ) | $ | 2.36 | $ | 2.52 | $ | (0.16 | ) | ||||||||||
| West Coast | 5.73 | 3.77 | 1.96 | 4.86 | 4.00 | 0.86 | ||||||||||||||||||
| Weighted Average | 2.38 | 2.44 | (0.06 | ) | 2.40 | 2.55 | (0.15 | ) | ||||||||||||||||
| Weighted Average after Hedging | 2.45 | 2.91 | (0.46 | ) | 2.52 | 2.95 | (0.43 | ) | ||||||||||||||||
| Oil Production/Prices: | ||||||||||||||||||||||||
| Production (Thousands of Barrels) | ||||||||||||||||||||||||
| Appalachia | 1 | 1 | — | 4 | 4 | — | ||||||||||||||||||
| West Coast | 597 | 674 | (77 | ) | 2,531 | 2,736 | (205 | ) | ||||||||||||||||
| Total Production | 598 | 675 | (77 | ) | 2,535 | 2,740 | (205 | ) | ||||||||||||||||
| Average Prices (Per Barrel) | ||||||||||||||||||||||||
| Appalachia | $ | 66.97 | $ | 45.71 | $ | 21.26 | $ | 57.76 | $ | 48.27 | $ | 9.49 | ||||||||||||
| West Coast | 71.91 | 47.44 | 24.47 | 66.39 | 46.14 | 20.25 | ||||||||||||||||||
| Weighted Average | 71.90 | 47.44 | 24.46 | 66.38 | 46.18 | 20.20 | ||||||||||||||||||
| Weighted Average after Hedging | 57.71 | 54.77 | 2.94 | 58.66 | 53.87 | 4.79 | ||||||||||||||||||
| Total Production (Mmcfe) | 47,337 | 40,375 | 6,962 | 178,116 | 173,528 | 4,588 | ||||||||||||||||||
| Selected Operating Performance Statistics: | ||||||||||||||||||||||||
| General & Administrative Expense per Mcfe (1) | $ | 0.30 | $ | 0.37 | $ | (0.07 | ) | $ | 0.34 | $ | 0.34 | $ | — | |||||||||||
| Lease Operating and Transportation Expense per Mcfe (1)(2) | $ | 0.88 | $ | 1.07 | $ | (0.19 | ) | $ | 0.91 | $ | 0.96 | $ | (0.05 | ) | ||||||||||
| Depreciation, Depletion & Amortization per Mcfe (1) | $ | 0.71 | $ | 0.67 | $ | 0.04 | $ | 0.70 | $ | 0.65 | $ | 0.05 | ||||||||||||
(1) Refer to page 16 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.
(2) Amounts include transportation expense of $0.53 per Mcfe and $0.54 per Mcfe for the three months ended September 30, 2018 and September 30, 2017, respectively. Amounts include transportation expense of $0.54 per Mcfe for both the twelve months ended September 30, 2018 and September 30, 2017.
| NATIONAL FUEL GAS COMPANY | |||||||
| AND SUBSIDIARIES | |||||||
| EXPLORATION AND PRODUCTION INFORMATION | |||||||
| Hedging Summary for Fiscal 2019 | Volume | Average Hedge Price | |||||
| Oil Swaps | |||||||
| Brent | 744,000 | BBL | $ | 63.52 / BBL | |||
| NYMEX | 1,068,000 | BBL | $ | 53.42 / BBL | |||
| Total | 1,812,000 | BBL | $ | 57.57 / BBL | |||
| Gas Swaps | |||||||
| NYMEX | 80,980,000 | MMBTU | $ | 2.94 / MMBTU | |||
| DAWN | 7,200,000 | MMBTU | $ | 3.00 / MMBTU | |||
| Fixed Price Physical Sales | 65,483,453 | MMBTU | $ | 2.68 / MMBTU | |||
| Total | 153,663,453 | MMBTU | $ | 2.83 / MMBTU | |||
| Hedging Summary for Fiscal 2020 | Volume | Average Hedge Price | |||||
| Oil Swaps | |||||||
| Brent | 864,000 | BBL | $ | 63.51 / BBL | |||
| NYMEX | 324,000 | BBL | $ | 50.52 / BBL | |||
| Total | 1,188,000 | BBL | $ | 59.96 / BBL | |||
| Gas Swaps | |||||||
| NYMEX | 18,640,000 | MMBTU | $ | 3.04 / MMBTU | |||
| DAWN | 7,200,000 | MMBTU | $ | 3.00 / MMBTU | |||
| Fixed Price Physical Sales | 43,024,639 | MMBTU | $ | 2.31 / MMBTU | |||
| Total | 68,864,639 | MMBTU | $ | 2.58 / 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 | 4,840,000 | MMBTU | $ | 3.01 / MMBTU | |||
| DAWN | 600,000 | MMBTU | $ | 3.00 / MMBTU | |||
| Fixed Price Physical Sales | 41,804,668 | MMBTU | $ | 2.22 / MMBTU | |||
| Total | 47,244,668 | MMBTU | $ | 2.31 / MMBTU | |||
| Hedging Summary for Fiscal 2022 | Volume | Average Hedge Price | |||||
| Oil Swaps | |||||||
| Brent | 300,000 | BBL | $ | 60.07 / BBL | |||
| NYMEX | 156,000 | BBL | $ | 51.00 / BBL | |||
| Total | 456,000 | BBL | $ | 56.97 / BBL | |||
| Fixed Price Physical Sales | 40,783,095 | MMBTU | $ | 2.23 / MMBTU | |||
| Hedging Summary for Fiscal 2023 | Volume | Average Hedge Price | |||||
| Fixed Price Physical Sales | 37,237,873 | MMBTU | $ | 2.26 / MMBTU | |||
| Hedging Summary for Fiscal 2024 | Volume | Average Hedge Price | |||||
| Fixed Price Physical Sales | 20,948,498 | 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, 2017 | 1,926,614 | 46,506 | 1,973,120 | ||||
| Extensions and Discoveries | 521,694 | — | 521,694 | ||||
| Revisions of Previous Estimates | 90,113 | 3,322 | 93,435 | ||||
| Production | (160,499 | ) | (2,407 | ) | (162,906 | ) | |
| Sales of Minerals in Place | (57,420 | ) | (10,581 | ) | (68,001 | ) | |
| September 30, 2018 | 2,320,502 | 36,840 | 2,357,342 | ||||
| Proved Developed Reserves: | |||||||
| September 30, 2017 | 1,316,596 | 46,506 | 1,363,102 | ||||
| September 30, 2018 | 1,569,692 | 36,840 | 1,606,532 | ||||
| Oil Mbbl | |||||||
| U.S. | |||||||
| Appalachian | West Coast | Total | |||||
| Region | Region | Company | |||||
| Proved Developed and Undeveloped Reserves: | |||||||
| September 30, 2017 | 28 | 30,179 | 30,207 | ||||
| Extensions and Discoveries | — | 2,301 | 2,301 | ||||
| Revisions of Previous Estimates | (10 | ) | 2,487 | 2,477 | |||
| Production | (4 | ) | (2,531 | ) | (2,535 | ) | |
| Sales of Minerals in Place | — | (4,787 | ) | (4,787 | ) | ||
| September 30, 2018 | 14 | 27,649 | 27,663 | ||||
| Proved Developed Reserves: | |||||||
| September 30, 2017 | 28 | 29,771 | 29,799 | ||||
| September 30, 2018 | 14 | 26,689 | 26,703 | ||||
| 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 | |||||||||||||||||
| 2018 | 2017 | (Decrease) | 2018 | 2017 | (Decrease) | |||||||||||||
| Firm Transportation – Affiliated | 15,058 | 15,404 | (346 | ) | 119,164 | 107,987 | 11,177 | |||||||||||
| Firm Transportation – Non-Affiliated | 165,809 | 176,380 | (10,571 | ) | 645,156 | 671,395 | (26,239 | ) | ||||||||||
| Interruptible Transportation | 393 | 727 | (334 | ) | 3,546 | 5,805 | (2,259 | ) | ||||||||||
| 181,260 | 192,511 | (11,251 | ) | 767,866 | 785,187 | (17,321 | ) | |||||||||||
| Gathering Volume – (MMcf) | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| September 30, | September 30, | |||||||||||||||||
| Increase | Increase | |||||||||||||||||
| 2018 | 2017 | (Decrease) | 2018 | 2017 | (Decrease) | |||||||||||||
| Gathered Volume – Affiliated | 52,427 | 44,915 | 7,512 | 198,355 | 194,921 | 3,434 | ||||||||||||
| Utility Throughput – (MMcf) | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| September 30, | September 30, | |||||||||||||||||
| Increase | Increase | |||||||||||||||||
| 2018 | 2017 | (Decrease) | 2018 | 2017 | (Decrease) | |||||||||||||
| Retail Sales: | ||||||||||||||||||
| Residential Sales | 3,707 | 3,576 | 131 | 60,174 | 52,394 | 7,780 | ||||||||||||
| Commercial Sales | 567 | 555 | 12 | 9,187 | 7,927 | 1,260 | ||||||||||||
| Industrial Sales | 63 | 50 | 13 | 623 | 333 | 290 | ||||||||||||
| 4,337 | 4,181 | 156 | 69,984 | 60,654 | 9,330 | |||||||||||||
| Off-System Sales | — | 7 | (7 | ) | 141 | 1,301 | (1,160 | ) | ||||||||||
| Transportation | 10,430 | 10,587 | (157 | ) | 76,828 | 71,040 | 5,788 | |||||||||||
| 14,767 | 14,775 | (8 | ) | 146,953 | 132,995 | 13,958 | ||||||||||||
| Energy Marketing Volume | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| September 30, | September 30, | |||||||||||||||||
| Increase | Increase | |||||||||||||||||
| 2018 | 2017 | (Decrease) | 2018 | 2017 | (Decrease) | |||||||||||||
| Natural Gas (MMcf) | 5,849 | 5,932 | (83 | ) | 42,262 | 38,901 | 3,361 | |||||||||||
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, 2018 and 2017:
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in thousands except per share amounts) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Reported GAAP Earnings | $ | 37,994 | $ | 45,577 | $ | 391,521 | $ | 283,482 | ||||||||
| Items impacting comparability | ||||||||||||||||
| Remeasurement of deferred income taxes under 2017 Tax Reform | 3,516 | — | (103,484 | ) | — | |||||||||||
| 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 | $ | 42,237 | $ | 45,577 | $ | 288,764 | $ | 283,482 | ||||||||
| Reported GAAP Earnings per share | $ | 0.44 | $ | 0.53 | $ | 4.53 | $ | 3.30 | ||||||||
| Items impacting comparability | ||||||||||||||||
| Remeasurement of deferred income taxes under 2017 Tax Reform | 0.04 | — | (1.20 | ) | — | |||||||||||
| Premium paid on early redemption of debt, net of tax | 0.01 | — | $ | 0.01 | — | |||||||||||
| Adjusted Operating Results per share | $ | 0.49 | $ | 0.53 | $ | 3.34 | $ | 3.30 | ||||||||
Management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, interest and other income, impairments, and other items reflected in operating income that impact comparability.
The following tables reconcile National Fuel’s reported GAAP earnings to Adjusted EBITDA for the three and twelve months ended September 30, 2018 and 2017:
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Reported GAAP Earnings | $ | 37,994 | $ | 45,577 | $ | 391,521 | $ | 283,482 | ||||||||
| Depreciation, Depletion and Amortization | 63,159 | 55,383 | 240,961 | 224,195 | ||||||||||||
| Interest and Other Income | (3,065 | ) | (3,585 | ) | (11,463 | ) | (11,156 | ) | ||||||||
| Interest Expense | 29,368 | 29,916 | 114,522 | 119,837 | ||||||||||||
| Income Taxes | 16,331 | 15,487 | (7,494 | ) | 160,682 | |||||||||||
| Adjusted EBITDA | $ | 143,787 | $ | 142,778 | $ | 728,047 | $ | 777,040 | ||||||||
| Adjusted EBITDA by Segment | ||||||||||||||||
| Pipeline and Storage Adjusted EBITDA | $ | 38,052 | $ | 39,049 | $ | 185,393 | $ | 180,328 | ||||||||
| Gathering Adjusted EBITDA | 23,732 | 21,206 | 91,609 | 94,380 | ||||||||||||
| Total Midstream Businesses Adjusted EBITDA | 61,784 | 60,255 | 277,002 | 274,708 | ||||||||||||
| Exploration and Production Adjusted EBITDA | 80,555 | 75,303 | 315,753 | 360,979 | ||||||||||||
| Utility Adjusted EBITDA | 6,792 | 11,846 | 144,155 | 151,078 | ||||||||||||
| Energy Marketing Adjusted EBITDA | (1,652 | ) | (1,134 | ) | 536 | 2,080 | ||||||||||
| Corporate and All Other Adjusted EBITDA | (3,692 | ) | (3,492 | ) | (9,399 | ) | (11,805 | ) | ||||||||
| Total Adjusted EBITDA | $ | 143,787 | $ | 142,778 | $ | 728,047 | $ | 777,040 | ||||||||
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) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Exploration and Production Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | 19,580 | $ | 30,354 | $ | 180,632 | $ | 129,326 | ||||||||
| Depreciation, Depletion and Amortization | 33,567 | 27,212 | 124,274 | 112,565 | ||||||||||||
| Interest and Other Income | (392 | ) | (257 | ) | (1,479 | ) | (707 | ) | ||||||||
| Interest Expense | 14,288 | 13,432 | 54,288 | 53,702 | ||||||||||||
| Income Taxes | 13,512 | 4,562 | (41,962 | ) | 66,093 | |||||||||||
| Adjusted EBITDA | $ | 80,555 | $ | 75,303 | $ | 315,753 | $ | 360,979 | ||||||||
| Pipeline and Storage Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | 15,337 | $ | 13,791 | $ | 97,246 | $ | 68,446 | ||||||||
| Depreciation, Depletion and Amortization | 11,141 | 10,545 | 43,463 | 41,196 | ||||||||||||
| Interest and Other Income | (1,320 | ) | (1,051 | ) | (4,505 | ) | (3,978 | ) | ||||||||
| Interest Expense | 7,965 | 8,540 | 31,383 | 33,717 | ||||||||||||
| Income Taxes | 4,929 | 7,224 | 17,806 | 40,947 | ||||||||||||
| Adjusted EBITDA | $ | 38,052 | $ | 39,049 | $ | 185,393 | $ | 180,328 | ||||||||
| Gathering Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | 14,783 | $ | 9,003 | $ | 83,519 | $ | 40,377 | ||||||||
| Depreciation, Depletion and Amortization | 4,554 | 4,154 | 17,313 | 16,162 | ||||||||||||
| Interest and Other Income | (130 | ) | (353 | ) | (1,106 | ) | (995 | ) | ||||||||
| Interest Expense | 2,211 | 2,403 | 9,560 | 9,142 | ||||||||||||
| Income Taxes | 2,314 | 5,999 | (17,677 | ) | 29,694 | |||||||||||
| Adjusted EBITDA | $ | 23,732 | $ | 21,206 | $ | 91,609 | $ | 94,380 | ||||||||
| Utility Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | (7,067 | ) | $ | (4,168 | ) | $ | 51,217 | $ | 46,935 | ||||||
| Depreciation, Depletion and Amortization | 13,272 | 13,080 | 53,253 | 52,582 | ||||||||||||
| Interest and Other Income | (705 | ) | (830 | ) | (2,326 | ) | (1,825 | ) | ||||||||
| Interest Expense | 6,487 | 7,037 | 26,753 | 28,492 | ||||||||||||
| Income Taxes | (5,195 | ) | (3,273 | ) | 15,258 | 24,894 | ||||||||||
| Adjusted EBITDA | $ | 6,792 | $ | 11,846 | $ | 144,155 | $ | 151,078 | ||||||||
| Energy Marketing Segment | ||||||||||||||||
| Reported GAAP Earnings | $ | (1,061 | ) | $ | (614 | ) | $ | 373 | $ | 1,509 | ||||||
| Depreciation, Depletion and Amortization | 69 | 69 | 275 | 279 | ||||||||||||
| Interest and Other Income | (218 | ) | (172 | ) | (766 | ) | (646 | ) | ||||||||
| Interest Expense | 5 | 10 | 22 | 47 | ||||||||||||
| Income Taxes | (447 | ) | (427 | ) | 632 | 891 | ||||||||||
| Adjusted EBITDA | $ | (1,652 | ) | $ | (1,134 | ) | $ | 536 | $ | 2,080 | ||||||
| Corporate and All Other | ||||||||||||||||
| Reported GAAP Earnings | $ | (3,578 | ) | $ | (2,789 | ) | $ | (21,466 | ) | $ | (3,111 | ) | ||||
| Depreciation, Depletion and Amortization | 556 | 323 | 2,383 | 1,411 | ||||||||||||
| Interest and Other Income | (300 | ) | (922 | ) | (1,281 | ) | (3,005 | ) | ||||||||
| Interest Expense | (1,588 | ) | (1,506 | ) | (7,484 | ) | (5,263 | ) | ||||||||
| Income Taxes | 1,218 | 1,402 | 18,449 | (1,837 | ) | |||||||||||
| Adjusted EBITDA | $ | (3,692 | ) | $ | (3,492 | ) | $ | (9,399 | ) | $ | (11,805 | ) | ||||
CONTACT: Analyst Contact: Kenneth E. Webster 716-857-7067 Media Contact: Karen L. Merkel 716-857-7654
You May Also Like
Treos Bio to Present New Cli ...
May 8, 2024
Vigil Neuroscience to Presen ...
May 8, 2024
MasterCraft Boat Holdings, I ...
May 8, 2024