WILLIAMSVILLE, N.Y., Nov. 06, 2024 (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, 2024.

FISCAL 2024 FOURTH QUARTER SUMMARY

GAAP net loss of $167.6 million, or $1.84 per share, which includes $237.8 million in non-cash impairment charges.
Adjusted operating results of $70.5 million, or $0.77 per share, compared to $72.2 million, or $0.78 per share, in the prior year (see non-GAAP reconciliation on page 2).
Supply Corporation filed a certificate application with FERC for its Tioga Pathway Project, a modernization and expansion project that is expected to provide 190,000 dekatherms per day of firm transportation capacity and $15 million in annual expansion revenues.
In the Utility segment, a Joint Proposal was filed with the New York State utility commission for a three-year settlement of its rate proceeding, which, subject to approval, incorporates an $86 million annual revenue requirement increase over three years, with the first-year impact of $57 million in fiscal 2025 and the remainder in fiscal 2026 and 2027.
In the E&P segment, hedging-related gains of $61 million drove a $0.07 per Mcfe increase in natural gas price realizations, despite NYMEX decreasing by $0.40 per MMBtu compared to the prior year.

FISCAL 2024 HIGHLIGHTS

The Company continued its long history of returning cash to shareholders by announcing its 54^th consecutive dividend increase, to an annual rate of $2.06 per share, and through the fiscal year, repurchased $65 million of common stock as part of its $200 million share repurchase program that was authorized in March.
E&P segment capital efficiency continued to improve, with non-acquisition capital expenditures decreasing by $58 million, or 10%, compared to the prior year (see page 20), while production increased by approximately 5% to 392.0 Bcf.
Gathering segment throughput and revenues increased 6% from the prior year, driven by growth in affiliated and third-party throughput.
Pipeline & Storage segment revenues increased $33.2 million, or 9%, from the prior year, primarily due to the settlement of the Supply Corporation rate case, which led to increased rates effective February 2024.
Utility segment net income increased $8.7 million, or 18%, compared to the prior year, largely attributable to the continued impact of a rate settlement in its Pennsylvania service territory, effective August 2023.

MANAGEMENT COMMENTS

David P. Bauer, President and CEO, stated: "National Fuel had a good quarter driven largely by the constructive outcomes in our recent ratemaking activity at our Utility and Pipeline and Storage segments. Commodity prices were challenging for our Upstream business, but the significant gains from our hedge portfolio more than offset the impact of the substantial decline in natural gas prices.

"During the quarter, we achieved key milestones that position the Company to deliver long-term earnings and free cash flow growth. At Distribution Corporation, we reached a multi-year settlement of our New York rate case, which we expect will be approved in the coming months. Further, Supply Corporation filed a certificate application for our 190,000 Dth per day Tioga Pathway Project, which we expect will be in-service in late 2026. Lastly, our Seneca and NFG Midstream teams continue to see success with our transition to the Eastern Development Area, with continued operational enhancements and strong well performance driving further improvements to our capital efficiency.

"Taken together, the progress made during the quarter further improves the long-term outlook for National Fuel and positions us well to create long-term value for our shareholders."

RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS


	Three Months Ended						Fiscal Year Ended
	September 30,						September 30,
(in thousands except per share amounts)		2024			2023			2024			2023
Reported GAAP Earnings	$	(167,621	)	$	73,677		$	77,513		$	476,866
Items impacting comparability:
Impairment of assets (E&P/ Pipeline & Storage)		318,433			—			519,129			—
Tax impact of impairment of assets		(80,585	)		—			(136,271	)		—
Unrealized (gain) loss on derivative asset (E&P)		1,700			(2,803	)		6,548			899
Tax impact of unrealized (gain) loss on derivative asset		(461	)		775			(1,791	)		(240	)
Unrealized (gain) loss on other investments (Corporate / All Other)		(1,232	)		719			(3,034	)		(913	)
Tax impact of unrealized (gain) loss on other investments		258			(151	)		637			192
Adjusted Operating Results	$	70,492		$	72,217		$	462,731		$	476,804

Reported GAAP Earnings Per Share	$	(1.84	)	$	0.80		$	0.84		$	5.17
Items impacting comparability:
Impairment of assets, net of tax (E&P / Pipeline & Storage)		2.61			—			4.15			—
Unrealized (gain) loss on derivative asset, net of tax (E&P)		0.01			(0.02	)		0.05			0.01
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)		(0.01	)		0.01			(0.03	)		(0.01	)
Rounding		—			(0.01	)		—			—
Adjusted Operating Results Per Share	$	0.77		$	0.78		$	5.01		$	5.17

FISCAL 2025 GUIDANCE UPDATE

National Fuel is updating its guidance for fiscal 2025 adjusted operating results, which are now expected to be within a range of $5.50 to $6.00 per share. This updated range reflects the impact of anticipated lower natural gas prices, partially offset by a projected decrease in Seneca's per unit operating expenses. Adjusted operating results exclude any future potential items impacting comparability, including a non-cash ceiling test impairment anticipated in the Exploration and Production segment in the first quarter of fiscal 2025.

The Company is now assuming NYMEX natural gas prices will average $2.80 per MMBtu for fiscal 2025, a decrease of $0.45 from preliminary guidance that was initiated last quarter. This updated natural gas price projection approximates the current NYMEX forward curve at this time, however, given the recent volatility in NYMEX natural gas prices, the Company is providing the following sensitivities to its adjusted operating results guidance range:

NYMEX ($/MMBtu)		Sensitivities
$2.50		$5.15 - $5.65
$3.00		$5.70 - $6.20
$3.25		$6.00 - $6.50

Seneca's production guidance for fiscal 2025 remains unchanged, with a range of 400 to 420 Bcfe, and does not incorporate any potential price-related curtailments. Seneca currently has firm sales contracts in place for 89% of its projected fiscal 2025 natural gas production, significantly limiting its exposure to in-basin markets. Further, 63% of expected production is either matched by a financial hedge, including a combination of swaps and no-cost collars, or was entered into at a fixed price.

Additionally, Seneca's depreciation, depletion and amortization ("DD&A") guidance range was revised downward to reflect the impact of the fourth quarter fiscal 2024 ceiling test impairment and the associated impact on the full cost pool, while all other unit costs are expected to be in line with previous expectations.

The Company's other fiscal 2025 guidance assumptions remain largely unchanged and are detailed in the table on page 8.

DISCUSSION OF FOURTH QUARTER RESULTS BY SEGMENT

The following earnings discussion of each operating segment for the quarter ended September 30, 2024 is summarized in a tabular form on pages 9 and 10 of this report (earnings drivers for the fiscal year ended September 30, 2024 are summarized on pages 11 and 12). It may be helpful to refer to those tables while reviewing this discussion.

Note that management defines adjusted operating results as reported GAAP earnings adjusted for items impacting comparability, and adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.

Upstream Business

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC ("Seneca"). Seneca explores for, develops and produces primarily natural gas reserves in Pennsylvania.

	Three Months Ended
	September 30,
(in thousands)		2024			2023		Variance
GAAP Earnings	$	(166,475	)	$	36,772		$	(203,247	)
Impairment of assets, net of tax		204,089			—			204,089
Unrealized (gain) loss on derivative asset, net of tax		1,239			(2,028	)		3,267
Adjusted Operating Results	$	38,853		$	34,744		$	4,109

Adjusted EBITDA	$	129,258		$	132,641		$	(3,383	)

Seneca's fourth quarter GAAP earnings decreased $203.2 million versus the prior year. This was primarily driven by non-cash, pre-tax impairment charges of $272.4 million ($204.1 million after-tax), the vast majority of which is related to a "ceiling test" impairment which required Seneca to write-down the book value of its reserves under the full cost method of accounting. Excluding impairments, as well as the net impact of unrealized losses related to reductions in the fair value of contingent consideration received in connection with the June 2022 divestiture of Seneca's California assets (see table above), Seneca's adjusted operating results increased $4.1 million primarily due to higher realized natural gas prices and a lower effective income tax rate, partially offset by lower natural gas production and higher operating expenses.

Each quarter, Seneca is required to perform a ceiling test comparing the present value of future net revenues from its reserves, after the effect of income taxes, with the book value of those reserves at the balance sheet date. The future net reserves ("the ceiling") are based on an unweighted arithmetic average of first day of the month pricing for each month within the 12-month period prior to the end of the reporting period, adjusted for the impact of Seneca's future natural gas hedges, discounted at the required rate of 10%. If the book value of the reserves exceeds the ceiling, a non-cash impairment charge must be recorded in order to reduce the book value of the reserves to the calculated ceiling. For purposes of the ceiling test, the 12-month average of first day of the month pricing for NYMEX natural gas for the period ended September 30, 2024 was $2.21 per MMBtu. It is expected that Seneca will record an additional non-cash impairment in the first quarter of fiscal 2025 and could record additional impairments beyond that depending on the commodity price environment.

During the fourth quarter, Seneca produced 91.9 Bcf of natural gas, a decrease of 1.8 Bcf, or 2%, from the prior year. During the quarter, Seneca voluntarily curtailed 1.5 Bcf of production due to low in-basin pricing. Absent those curtailments, production would have been largely unchanged compared to the prior year.

Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.40 per Mcf, an increase of $0.07 per Mcf, or 3%, from the prior year. Seneca's hedging portfolio provided an uplift of $0.67 per Mcf during the quarter, which more than offset a 13% decrease in pre-hedge natural gas price realizations versus the prior year.

On a per unit basis, fourth quarter lease operating and transportation expense ("LOE") was $0.74 per Mcf, an increase of $0.05 per Mcf from the prior year. On an absolute basis, LOE increased $3.2 million ($0.03 per Mcf) largely as a result of the timing of certain repairs and maintenance costs, as well as some one-time road repair costs related to Tropical Storm Debby, and higher intercompany gathering costs. LOE included $51.3 million ($0.56 per Mcf) for gathering and compression services from the Company's Gathering segment to connect Seneca's production to sales points along interstate pipelines.

General and administrative ("G&A") expense was $0.20 per Mcf, an increase of $0.02 per Mcf from the prior year. On an absolute basis, Seneca's G&A expense increased $0.8 million primarily due to increases in personnel costs.

DD&A expense was $0.69 per Mcf, a decrease of $0.02 per Mcf from the prior year. Absolute DD&A expense decreased $2.6 million ($0.03 per Mcf) due to the ceiling test impairment incurred during the third quarter of fiscal 2024 that lowered Seneca's full cost pool depletable base.

The reduction in Seneca's income tax expense was primarily driven by a decrease in pre-tax income and lower state income tax expense. The lower state income taxes were a result of a decrease in Pennsylvania's state income tax rate from 9.99% in the prior year to 8.99% in the current year, as well as the change in the mix of revenues between state jurisdictions.

Proved Reserves Year-End Update

Seneca's total proved reserves at September 30, 2024 were 4,753 Bcfe, an increase of 217 Bcfe, or 5%, from September 30, 2023. This increase was a result of Seneca replacing 155% of its fiscal 2024 production. Proved developed reserves at the end of fiscal 2024 were 3,486 Bcfe, representing 73% of total proved reserves. In fiscal 2024, Seneca added 602 Bcfe of proved reserve extensions and discoveries and 7 Bcfe of net positive revisions due primarily to improvements in well performance and changes in development plans, partially offset by price-related revisions.

Midstream Businesses

Pipeline and Storage Segment

The Pipeline and Storage segment's operations are carried out by National Fuel Gas Supply Corporation ("Supply Corporation") and Empire Pipeline, Inc. ("Empire"). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.

	Three Months Ended
	September 30,
(in thousands)		2024			2023	Variance
GAAP Earnings	$	(5,812	)	$	23,354	$	(29,166	)
Impairment of assets, net of tax		33,759			—		33,759
Adjusted Operating Results	$	27,947		$	23,354	$	4,593

Adjusted EBITDA	$	62,527		$	56,236	$	6,291

The Pipeline and Storage segment's fourth quarter GAAP earnings decreased $29.2 million versus the prior year. This was primarily driven by a non-cash, pre-tax impairment charge of $46.1 million ($33.8 million after-tax) to write-down the carrying value of certain assets associated with Supply Corporation and Empire's Northern Access project. Excluding this impairment, the Pipeline and Storage segment's adjusted operating results increased $4.6 million primarily due to higher operating revenues, partly offset by higher operation and maintenance ("O&M") and interest expenses.

The impairment of the Northern Access project was a result of a detailed review of the project following the favorable resolution of pending litigation in the U.S. Court of Appeals for the D.C. Circuit earlier in the fiscal year. In connection with this review, Supply Corporation and Empire evaluated updated project costs, as well as the status of necessary state and federal authorizations, many of which expired during the extensive, multi-year litigation with the New York State Department of Environmental Conservation and other project opponents. Taking into consideration general inflationary pressures on project costs and the pipeline transportation rate increases necessary to support the project, along with the ongoing challenges facing natural gas pipeline development in the State of New York, Supply Corporation, Empire, and Seneca agreed to terminate the precedent agreements on October 16, 2024. As a result, the Company is unlikely to pursue construction of the project and has taken an impairment charge at September 30, 2024.

The increase in operating revenues of $10.5 million, or 11%, was primarily attributable to an increase in Supply Corporation's transportation and storage rates effective February 1, 2024, in accordance with its rate case settlement.

O&M expense increased $4.0 million primarily due to higher pipeline integrity and personnel costs. Interest expense increased $0.9 million primarily due to a higher average amount of net borrowings.

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 delivers Seneca and other non-affiliated Appalachian production to the interstate pipeline system.

	Three Months Ended
	September 30,
(in thousands)		2024		2023	Variance
GAAP Earnings	$	24,403	$	26,517	$	(2,114	)

Adjusted EBITDA	$	43,988	$	46,874	$	(2,886	)

The Gathering segment's fourth quarter GAAP earnings decreased $2.1 million versus the prior year due to higher O&M and DD&A expense. O&M expense increased $2.1 million compared to the prior year primarily due to higher material costs, higher outside services expenses (such as contractor fees for compressor repairs, maintenance and overhauls), as well as higher personnel costs. DD&A expense increased $0.9 million primarily due to higher average depreciable plant in service compared to the prior year.

Downstream Business

Utility Segment

The Utility segment operations are carried out by National Fuel Gas Distribution Corporation ("Distribution Corporation"), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.

	Three Months Ended
	September 30,
(in thousands)		2024			2023		Variance
GAAP Earnings	$	(16,759	)	$	(7,179	)	$	(9,580	)

Adjusted EBITDA	$	(228	)	$	6,693		$	(6,921	)

The Utility segment's fourth quarter GAAP net loss was $9.6 million higher than the net loss in the prior year's fourth quarter due to lower customer margins (operating revenues less purchased gas sold), an increase in O&M and interest expenses and a higher effective income tax rate.

The $2.5 million decline in customer margin for the quarter was primarily due to adjustments related to annual reconciliations of certain regulatory rate and cost recovery mechanisms, the largest of which was negatively impacted by lower natural gas prices compared to last year. This was partially offset by the benefit from higher revenues from Distribution Corporation's system modernization tracking mechanisms in its New York service territory and the ongoing impact of the base rate increase in its Pennsylvania service territory that went into effect in August 2023.

O&M expense increased by $3.8 million, primarily driven by higher personnel costs, expenses related to the current New York rate case proceeding, as well as costs related to the timing of leak patrols and higher technology-related costs.

Interest expense increased $1.3 million primarily due to a higher average amount of net borrowings. The increase in the Utility segment's effective income tax rate was primarily driven by the recognition of tax deductions in the prior-year fourth quarter related to the adoption of updated IRS guidance on repairs and maintenance expenditures published in 2023.

New York Rate Case Update

The Company filed a Joint Proposal with the New York Public Service Commission ("NYPSC") on September 9, 2024, that, if approved, would establish a three-year rate plan commencing October 1, 2024. The Joint Proposal would allow the Company to raise its base delivery rates to recover its increasing costs of providing safe and reliable utility service, including the required rate of return on utility rate base, higher operating costs, and an increase in depreciation expense. The Joint Proposal allows for an $86 million increase in annual revenue requirement over three years, with the first-year impact of $57 million in fiscal 2025 and the remainder in fiscal 2026 and 2027. The Joint Proposal is not deemed final as it remains subject to Commission approval. The Joint Proposal includes standard make-whole language allowing the recovery of authorized revenues between October 1, 2024, and the start of new rates.

Corporate and All Other

The Company's operations that are included in Corporate and All Other generated a combined net loss of $3.0 million in the current-year fourth quarter, which was $2.8 million lower than the combined net loss of $5.8 million in the prior-year fourth quarter. The reduction in net loss was primarily driven by lower O&M expense as a result of a decrease in professional services expense. In addition, the mark-to-market of investment securities swung from a modest unrealized loss in fiscal 2023 to a modest unrealized gain in the current year.

EARNINGS TELECONFERENCE

A conference call to discuss the results will be held on Thursday, November 7, 2024, at 10 a.m. ET. All participants must pre-register to join this conference using the Participant Registration link. A webcast link to the conference call will be provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay will be available following the call through the end of the day, Thursday, November 14, 2024. To access the replay, dial 1-866-813-9403 and provide Access Code 646147.

National Fuel is an integrated energy company reporting financial results for four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. Additional information about National Fuel is available at www.nationalfuel.com.

Analyst Contact:	Natalie M. Fischer	716-857-7315
Media Contact:	Karen L. Merkel	716-857-7654

Certain statements contained herein, including statements identified by the use of the words "anticipates," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects," "believes," "seeks," "will," "may" and similar expressions, and statements which are other than statements of historical facts, are "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company's expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: impairments under the SEC's full cost ceiling test for natural gas reserves; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; changes in the price of natural gas; 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; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; the Company's ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; changes in economic conditions, including inflationary pressures, supply chain issues, liquidity challenges, and 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; 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 price differentials between similar quantities of natural gas 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; the impact of information technology disruptions, cybersecurity or data security breaches; factors affecting the Company's ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, water availability and disposal or recycling opportunities of used water, 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; the Company's ability to complete strategic transactions; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas 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; negotiations with the collective bargaining units representing the Company's workforce, including potential work stoppages during negotiations; uncertainty of natural gas reserve estimates; significant differences between the Company's projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); 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; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war, as well as economic and operational disruptions due to third-party outages; 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 guidance for fiscal 2025. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below.

While the Company expects to record an additional ceiling test impairment charge, certain adjustments to unrealized gain or loss on a derivative asset and unrealized gain or loss on investments during the fiscal year ending September 30, 2025, the amounts of these and other potential adjustments and charges are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

	Previous FY 2025 Guidance	Updated FY 2025 Guidance
Adjusted Consolidated Earnings per Share, excluding items impacting comparability	$5.75 to $6.25	$5.50 to $6.00
Consolidated Effective Tax Rate	~ 24.5 - 25%	~ 24.5 - 25%

Capital Expenditures(Millions)
Exploration and Production	$495 - $525	$495 - $525
Pipeline and Storage	$130 - $150	$130 - $150
Gathering	$95 - $110	$95 - $110
Utility	$165 - $185	$165 - $185
Consolidated Capital Expenditures	$885 - $970	$885 - $970

Exploration and Production Segment Guidance

Commodity Price Assumptions
NYMEX natural gas price	$3.25 /MMBtu	$2.80 /MMBtu
Appalachian basin spot price	$2.30 /MMBtu	$2.00 /MMBtu

Realized natural gas prices, after hedging ($/Mcf)	$2.62 - $2.66	$2.47 - $2.51

Production (Bcf)	400 to 420	400 to 420

E&P Operating Costs($/Mcf)
LOE	$0.68 - $0.70	$0.68 - $0.70
G&A	$0.18 - $0.19	$0.18 - $0.19
DD&A	$0.70 - $0.74	$0.65 - $0.69

Other Business Segment Guidance(Millions)
Gathering Segment Revenues	$245 - $255	$245 - $255
Pipeline and Storage Segment Revenues	$415 - $435	$415 - $435

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED SEPTEMBER 30, 2024
(Unaudited)

	Upstream			Midstream						Downstream

	Exploration &			Pipeline &									Corporate /
(Thousands of Dollars)	Production			Storage			Gathering			Utility			All Other			Consolidated*

Fourth quarter 2023 GAAP earnings	$	36,772		$	23,354		$	26,517		$	(7,179	)	$	(5,787	)	$	73,677
Items impacting comparability:
Unrealized (gain) loss on derivative asset		(2,803	)														(2,803	)
Tax impact of unrealized (gain) loss on derivative asset		775															775
Unrealized (gain) loss on other investments														719			719
Tax impact of unrealized (gain) loss on other investments														(151	)		(151	)
Fourth quarter 2023 adjusted operating results		34,744			23,354			26,517			(7,179	)		(5,219	)		72,217
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		(3,331	)														(3,331	)
Higher (lower) realized natural gas prices, after hedging		4,433															4,433
Midstream Revenues
Higher (lower) operating revenues					8,298			(389	)								7,909
Downstream Margins***
Impact of usage and weather											(678	)					(678	)
Impact of new rates in Pennsylvania											442						442
System modernization and improvement tracker revenues											1,714						1,714
Regulatory revenue adjustments											(3,180	)					(3,180	)
Operating Expenses
Lower (higher) lease operating and transportation expenses		(2,527	)														(2,527	)
Lower (higher) operating expenses		(1,005	)		(3,192	)		(1,697	)		(3,023	)		1,991			(6,926	)
Lower (higher) depreciation / depletion		2,086						(716	)		(441	)					929
Other Income (Expense)
(Higher) lower interest expense					(738	)					(1,160	)					(1,898	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		4,439			390			862			(3,089	)		(556	)		2,046
All other / rounding		14			(165	)		(174	)		(165	)		(168	)		(658	)
Fourth quarter 2024 adjusted operating results		38,853			27,947			24,403			(16,759	)		(3,952	)		70,492
Items impacting comparability:
Impairment of assets		(272,358	)		(46,075	)											(318,433	)
Tax impact of impairment of assets		68,269			12,316												80,585
Unrealized gain (loss) on derivative asset		(1,700	)														(1,700	)
Tax impact of unrealized gain (loss) on derivative asset		461															461
Unrealized gain (loss) on other investments														1,232			1,232
Tax impact of unrealized gain (loss) on other investments														(258	)		(258	)
Fourth quarter 2024 GAAP earnings	$	(166,475	)	$	(5,812	)	$	24,403		$	(16,759	)	$	(2,978	)	$	(167,621	)

* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED SEPTEMBER 30, 2024
(Unaudited)

	Upstream			Midstream						Downstream

	Exploration &			Pipeline &									Corporate /
	Production			Storage			Gathering			Utility			All Other			Consolidated*

Fourth quarter 2023 GAAP earnings per share	$	0.40		$	0.25		$	0.29		$	(0.08	)	$	(0.06	)	$	0.80
Items impacting comparability:
Unrealized (gain) loss on derivative asset, net of tax		(0.02	)														(0.02	)
Unrealized (gain) loss on other investments, net of tax														0.01			0.01
Rounding														(0.01	)		(0.01	)
Fourth quarter 2023 adjusted operating results per share		0.38			0.25			0.29			(0.08	)		(0.06	)		0.78
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		(0.04	)														(0.04	)
Higher (lower) realized natural gas prices, after hedging		0.05															0.05
Midstream Revenues
Higher (lower) operating revenues					0.09			—									0.09
Downstream Margins***
Impact of usage and weather											(0.01	)					(0.01	)
Impact of new rates in Pennsylvania											—						—
System modernization and improvement tracker revenues											0.02						0.02
Regulatory revenue adjustments											(0.03	)					(0.03	)
Operating Expenses
Lower (higher) lease operating and transportation expenses		(0.03	)														(0.03	)
Lower (higher) operating expenses		(0.01	)		(0.03	)		(0.02	)		(0.03	)		0.02			(0.07	)
Lower (higher) depreciation / depletion		0.02						(0.01	)		—						0.01
Other Income (Expense)
(Higher) lower interest expense					(0.01	)					(0.01	)					(0.02	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		0.05			—			0.01			(0.03	)		(0.01	)		0.02
All other / rounding		—			—			—			(0.01	)		0.01			—
Fourth quarter 2024 adjusted operating results per share		0.42			0.30			0.27			(0.18	)		(0.04	)		0.77
Items impacting comparability:
Impairment of assets, net of tax		(2.24	)		(0.37	)											(2.61	)
Unrealized gain (loss) on derivative asset, net of tax		(0.01	)														(0.01	)
Unrealized gain (loss) on other investments, net of tax														0.01			0.01
Rounding		0.01												(0.01	)		—
Fourth quarter 2024 GAAP earnings per share	$	(1.82	)	$	(0.07	)	$	0.27		$	(0.18	)	$	(0.04	)	$	(1.84	)

* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
TWELVE MONTHS ENDED SEPTEMBER 30, 2024
(Unaudited)

	Upstream			Midstream						Downstream

	Exploration &			Pipeline &									Corporate /
(Thousands of Dollars)	Production			Storage			Gathering			Utility			All Other			Consolidated*
Fiscal 2023 GAAP earnings	$	232,275		$	100,501		$	99,724		$	48,395		$	(4,029	)	$	476,866
Items impacting comparability:
Unrealized (gain) loss on derivative asset		899															899
Tax impact of unrealized (gain) loss on derivative asset		(240	)														(240	)
Unrealized (gain) loss on other investments														(913	)		(913	)
Tax impact of unrealized (gain) loss on other investments														192			192
Fiscal 2023 adjusted operating results		232,934			100,501			99,724			48,395			(4,750	)		476,804
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		39,805															39,805
Higher (lower) realized natural gas prices, after hedging		(34,033	)														(34,033	)
Higher (lower) other operating revenues		(3,729	)														(3,729	)
Midstream Revenues
Higher (lower) operating revenues					26,230			10,987									37,217
Downstream Margins***
Impact of usage and weather											(1,388	)					(1,388	)
Impact of new rates in Pennsylvania											18,104						18,104
System modernization and improvement tracker revenues											7,924						7,924
Regulatory revenue adjustments											(5,299	)					(5,299	)
Higher (lower) other operating revenues											(2,094	)					(2,094	)
Operating Expenses
Lower (higher) lease operating and transportation expenses		(13,724	)														(13,724	)
Lower (higher) operating expenses		(8,908	)		(7,648	)		(1,247	)		(10,747	)		412			(28,138	)
Lower (higher) property, franchise and other taxes		3,218			(653	)											2,565
Lower (higher) depreciation / depletion		(29,074	)		(2,925	)		(2,443	)		(3,011	)					(37,453	)
Other Income (Expense)
Higher (lower) other income					1,565						1,714			(2,027	)		1,252
(Higher) lower interest expense		(4,331	)		(3,104	)		619			(935	)		1,827			(5,924	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		7,331			(456	)		(141	)		4,446			(491	)		10,689
All other / rounding		413			(81	)		(586	)		(20	)		427			153
Fiscal 2024 adjusted operating results		189,902			113,429			106,913			57,089			(4,602	)		462,731
Items impacting comparability:
Impairment of assets		(473,054	)		(46,075	)											(519,129	)
Tax impact of impairment of assets		123,955			12,316												136,271
Unrealized gain (loss) on derivative asset		(6,548	)														(6,548	)
Tax impact of unrealized gain (loss) on derivative asset		1,791															1,791
Unrealized gain (loss) on other investments														3,034			3,034
Tax impact of unrealized gain (loss) on other investments														(637	)		(637	)
Fiscal 2024 GAAP earnings	$	(163,954	)	$	79,670		$	106,913		$	57,089		$	(2,205	)	$	77,513

* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
TWELVE MONTHS ENDED SEPTEMBER 30, 2024
(Unaudited)

	Upstream			Midstream						Downstream

	Exploration &			Pipeline &									Corporate /
	Production			Storage			Gathering			Utility			All Other			Consolidated*
Fiscal 2023 GAAP earnings per share	$	2.52		$	1.09		$	1.08		$	0.52		$	(0.04	)	$	5.17
Items impacting comparability:
Unrealized (gain) loss on derivative asset, net of tax		0.01															0.01
Unrealized (gain) loss on other investments, net of tax														(0.01	)		(0.01	)
Rounding		(0.01	)											0.01			—
Fiscal 2023 adjusted operating results per share		2.52			1.09			1.08			0.52			(0.04	)		5.17
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		0.43															0.43
Higher (lower) realized natural gas prices, after hedging		(0.37	)														(0.37	)
Higher (lower) other operating revenues		(0.04	)														(0.04	)
Midstream Revenues
Higher (lower) operating revenues					0.28			0.12									0.40
Downstream Margins***
Impact of usage and weather											(0.02	)					(0.02	)
Impact of new rates in Pennsylvania											0.20						0.20
System modernization and improvement tracker revenues											0.09						0.09
Regulatory revenue adjustments											(0.06	)					(0.06	)
Higher (lower) other operating revenues											(0.02	)					(0.02	)
Operating Expenses
Lower (higher) lease operating and transportation expenses		(0.15	)														(0.15	)
Lower (higher) operating expenses		(0.10	)		(0.08	)		(0.01	)		(0.12	)		—			(0.31	)
Lower (higher) property, franchise and other taxes		0.03			(0.01	)											0.02
Lower (higher) depreciation / depletion		(0.31	)		(0.03	)		(0.03	)		(0.03	)					(0.40	)
Other Income (Expense)
Higher (lower) other income					0.02						0.02			(0.02	)		0.02
(Higher) lower interest expense		(0.05	)		(0.03	)		0.01			(0.01	)		0.02			(0.06	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		0.08			—			—			0.05			(0.01	)		0.12
All other / rounding		0.02			(0.01	)		(0.01	)		—			(0.01	)		(0.01	)
Fiscal 2024 adjusted operating results per share		2.06			1.23			1.16			0.62			(0.06	)		5.01
Items impacting comparability:
Impairment of assets, net of tax		(3.78	)		(0.37	)											(4.15	)
Unrealized gain (loss) on derivative asset, net of tax		(0.05	)														(0.05	)
Unrealized gain (loss) on other investments, net of tax														0.03			0.03
Rounding		(0.01	)											0.01			—
Fiscal 2024 GAAP earnings per share	$	(1.78	)	$	0.86		$	1.16		$	0.62		$	(0.02	)	$	0.84

* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

(Thousands of Dollars, except per share amounts)
	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
	(Unaudited)						(Unaudited)
SUMMARY OF OPERATIONS		2024			2023			2024			2023
Operating Revenues:
Utility Revenues	$	79,830		$	78,865		$	696,807		$	941,779
Exploration and Production and Other Revenues		221,540			220,348			961,078			958,455
Pipeline and Storage and Gathering Revenues		70,698			69,735			286,925			273,537
		372,068			368,948			1,944,810			2,173,771
Operating Expenses:
Purchased Gas		(17,382	)		(12,865	)		150,062			437,595
Operation and Maintenance:
Utility		51,988			48,354			218,393			205,239
Exploration and Production and Other		38,540			37,955			141,308			124,270
Pipeline and Storage and Gathering		45,996			39,901			160,317			149,247
Property, Franchise and Other Taxes		22,216			20,701			88,851			92,700
Depreciation, Depletion and Amortization		108,847			109,599			457,026			409,573
Impairment of Assets		318,433			—			519,129			—
		568,638			243,645			1,735,086			1,418,624

Operating Income (Loss)		(196,570	)		125,303			209,724			755,147

Other Income (Expense):
Other Income (Deductions)		3,237			5,384			16,226			18,138
Interest Expense on Long-Term Debt		(33,008	)		(28,449	)		(122,799	)		(111,948	)
Other Interest Expense		(1,646	)		(4,453	)		(15,896	)		(19,938	)

Income (Loss) Before Income Taxes		(227,987	)		97,785			87,255			641,399

Income Tax Expense (Benefit)		(60,366	)		24,108			9,742			164,533

Net Income (Loss) Available for Common Stock	$	(167,621	)	$	73,677		$	77,513		$	476,866

Earnings (Loss) Per Common Share
Basic	$	(1.84	)	$	0.80		$	0.84		$	5.20
Diluted	$	(1.84	)	$	0.80		$	0.84		$	5.17

Weighted Average Common Shares:
Used in Basic Calculation		91,270,386			91,818,933			91,791,167			91,748,890
Used in Diluted Calculation		91,270,386			92,378,675			92,344,511			92,285,918

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)

	September 30,			September 30,
(Thousands of Dollars)		2024			2023
ASSETS
Property, Plant and Equipment	$	14,524,798		$	13,635,303
Less - Accumulated Depreciation, Depletion and Amortization		7,185,593			6,335,441
Net Property, Plant and Equipment		7,339,205			7,299,862
Current Assets:
Cash and Temporary Cash Investments		38,222			55,447
Receivables - Net		127,222			160,601
Unbilled Revenue		15,521			16,622
Gas Stored Underground		35,055			32,509
Materials and Supplies - at average cost		47,670			48,989
Other Current Assets		92,229			100,260
Total Current Assets		355,919			414,428
Other Assets:
Recoverable Future Taxes		80,084			69,045
Unamortized Debt Expense		5,604			7,240
Other Regulatory Assets		108,022			72,138
Deferred Charges		69,662			82,416
Other Investments		81,705			73,976
Goodwill		5,476			5,476
Prepaid Pension and Post-Retirement Benefit Costs		180,230			200,301
Fair Value of Derivative Financial Instruments		87,905			50,487
Other		5,958			4,891
Total Other Assets		624,646			565,970
Total Assets	$	8,319,770		$	8,280,260
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and
Outstanding - 91,005,993 Shares and 91,819,405 Shares, Respectively	$	91,006		$	91,819
Paid in Capital		1,045,487			1,040,761
Earnings Reinvested in the Business		1,727,326			1,885,856
Accumulated Other Comprehensive Loss		(15,476	)		(55,060	)
Total Comprehensive Shareholders' Equity		2,848,343			2,963,376
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs		2,188,243			2,384,485
Total Capitalization		5,036,586			5,347,861
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		90,700			287,500
Current Portion of Long-Term Debt		500,000			—
Accounts Payable		165,068			152,193
Amounts Payable to Customers		42,720			59,019
Dividends Payable		46,872			45,451
Interest Payable on Long-Term Debt		27,247			20,399
Customer Advances		19,373			21,003
Customer Security Deposits		36,265			28,764
Other Accruals and Current Liabilities		162,903			160,974
Fair Value of Derivative Financial Instruments		4,744			31,009
Total Current and Accrued Liabilities		1,095,892			806,312
Other Liabilities:
Deferred Income Taxes		1,111,165			1,124,170
Taxes Refundable to Customers		305,645			268,562
Cost of Removal Regulatory Liability		292,477			277,694
Other Regulatory Liabilities		151,452			165,441
Other Post-Retirement Liabilities		3,511			2,915
Asset Retirement Obligations		203,006			165,492
Other Liabilities		120,036			121,813
Total Other Liabilities		2,187,292			2,126,087
Commitments and Contingencies		—			—
Total Capitalization and Liabilities	$	8,319,770		$	8,280,260

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Twelve Months Ended
	September 30,
(Thousands of Dollars)		2024			2023

Operating Activities:
Net Income Available for Common Stock	$	77,513		$	476,866
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Impairment of Assets		519,129			—
Depreciation, Depletion and Amortization		457,026			409,573
Deferred Income Taxes		(2,610	)		151,403
Stock-Based Compensation		22,080			20,630
Other		24,411			19,647
Change in:
Receivables and Unbilled Revenue		34,369			213,579
Gas Stored Underground and Materials and Supplies		1,738			(8,406	)
Unrecovered Purchased Gas Costs		—			99,342
Other Current Assets		8,144			(41,077	)
Accounts Payable		5,616			(37,095	)
Amounts Payable to Customers		(16,299	)		58,600
Customer Advances		(1,630	)		(5,105	)
Customer Security Deposits		7,501			4,481
Other Accruals and Current Liabilities		2,637			(67,664	)
Other Assets		(48,183	)		(26,564	)
Other Liabilities		(25,481	)		(31,135	)
Net Cash Provided by Operating Activities	$	1,065,961		$	1,237,075

Investing Activities:
Capital Expenditures	$	(931,236	)	$	(1,009,868	)
Acquisition of Upstream Assets		—			(124,758	)
Sale of Fixed Income Mutual Fund Shares in Grantor Trust		—			10,000
Other		(2,669

National Fuel Reports Fourth Quarter and Full Year Fiscal 2024 Earnings