National Fuel Gas Company (“National Fuel” or the “Company”)
(NYSE:NFG) today announced consolidated results for the third
quarter of its 2016 fiscal year and for the nine months ended June
30, 2016.
FISCAL 2016 THIRD QUARTER EARNINGS SUMMARY
- Consolidated net income of $8.3 million
or $0.10 per share
- Operating results, excluding items
impacting comparability, of $58.1 million or $0.68 per share
- Impairment of oil and gas properties of
$82.7 million ($47.9 million after tax)
- Consolidated adjusted EBITDA of $189.8
million, an increase of $10.4 million versus prior year (see
non-GAAP reconciliation on page 25)
- Production of 44.0 Bcfe, a 22% increase
from prior year and 12% increase from the second quarter
- Net Appalachian natural gas spot sales
of approximately 6.4 Bcf
- Average natural gas and crude oil
prices after hedging of $2.86 per Mcf and $58.79 per Bbl,
respectively
- Midstream businesses EBITDA of $70.9
million, an increase of $12.0 million or 20% versus prior year
- Raising and tightening fiscal 2016
earnings guidance
- Initiating fiscal 2017 earnings
guidance with a range of $2.85 to $3.15 per share
OPERATING RESULTS
Three Months Ended Nine Months Ended June 30, June 30, (in
thousands except per share amounts) 2016 2015 2016
2015
Reported GAAP earnings (loss) $ 8,286 $ (293,134 ) $
(328,510 ) $ (191,724 )
Items impacting comparability:
Impairment of oil and gas properties (E&P) 82,658 588,712
915,552 709,060 Tax impact of impairment of oil and gas properties
(34,716 ) (248,863 ) (384,531 ) (299,738 ) Joint development
agreement professional fees (E&P) 3,173 7,855 Tax impact of
joint development agreement professional fees (1,333 )
(3,299 )
Operating Results $ 58,068 $ 46,715
$ 207,067 $ 217,598
Reported GAAP
earnings (loss) per share $ 0.10 $ (3.44 ) $ (3.87 ) $ (2.25 )
Items impacting comparability: Impairment of oil and gas
properties (E&P) 0.97 6.91 10.80 8.32 Tax impact of impairment
of oil and gas properties (0.41 ) (2.92 ) (4.54 ) (3.52 ) Joint
development agreement professional fees (E&P) 0.04 0.09 Tax
impact of joint development agreement professional fees (0.02 )
(0.04 ) Earnings per share impact of dilutive shares (All segments)
(0.01 )
Operating Results per diluted
share $ 0.68 $ 0.55 $ 2.43 $ 2.55
MANAGEMENT COMMENTS
Ronald J. Tanski, President and Chief Executive Officer of
National Fuel Gas Company, stated: "Each of our business segments
contributed to a very good quarter of operations for the Company.
In our upstream segment, Seneca's Marcellus production grew by an
impressive 25 percent due to increased takeaway capacity on
National Fuel pipelines and improved pricing in Appalachia. This
higher production also contributed to the increased throughput we
achieved in our Gathering and Pipeline and Storage segments. While
commodity pricing in the Appalachian basin has improved, the
methodology imposed under the full-cost accounting rules required
us to once again incur a non-cash impairment charge. We expect that
the pricing curve will level out and soon bring an end to these
impairment charges.
"The steps we have taken in fiscal 2016 have positioned National
Fuel well financially and operationally. In fiscal 2017, we plan to
execute our integrated strategy to grow our upstream and midstream
businesses in Appalachia. We are pleased that IOG elected to
continue participating with us in drilling additional Marcellus
wells over the next year, allowing us to dedicate capital to our
midstream pipeline businesses while maintaining activity levels
upstream. We recently received a positive Environmental Assessment
from the Federal Energy Regulatory Commission for our Northern
Access Project and remain on schedule to obtain the additional
regulatory approvals to build the project to meet the anticipated
November 2017 in-service date. While we continue to be encouraged
by firming natural gas prices, we will maintain the current pace of
our drilling program over the next year in order to grow production
into the Northern Access capacity as efficiently as possible. This
strategy should result in steady, but significant, growth across
our upstream and midstream businesses.”
DISCUSSION OF THIRD QUARTER RESULTS BY SEGMENT
The following discussion of the earnings of each 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.
Upstream Business
Exploration and Production
Segment
The Exploration and Production segment operations are carried
out by Seneca Resources Corporation ("Seneca"). Seneca explores
for, develops and produces natural gas and oil reserves, primarily
in Pennsylvania and California.
(in thousands except per share
amounts)
Quarter Ended
June 30, 2016
Quarter Ended
June 30, 2015
Variance Net Income / (Loss) $ (19,165 ) $ (323,113 ) $
303,948 Net Income / (Loss) Per Share (Diluted) $ (0.22 ) $ (3.79 )
$ 3.57 Adjusted EBITDA $ 97,924 $ 93,662 $ 4,262
The quarter over quarter variance in the Exploration and
Production segment's net loss is mainly due to lower impairment
charges that were recorded to write down the value of Seneca’s oil
and natural gas reserves under the full cost method of accounting.
The non-cash, pre-tax impairment charge recorded in the current
year's third quarter was $82.7 million ($47.9 million after-tax)
versus $588.7 million ($339.8 million after-tax) in the prior year.
The full cost method of accounting requires that Seneca perform a
quarterly “ceiling test” to compare the present value of future
revenues from its oil and natural gas reserves based on an
unweighted arithmetic average of the first day of the month oil and
gas prices for each month within the 12-month period prior to the
end of the reporting period (“the ceiling”) with the book value of
those reserves at the balance sheet date. 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. Unless oil and gas prices improve, Seneca
expects to incur an additional impairment charge in the fourth
quarter of the fiscal year ending September 30, 2016.
Seneca also incurred $3.2 million ($1.8 million after tax) of
professional and legal expenses during the third quarter relating
to the extension of the joint development agreement that Seneca
entered into in June 2016. These transaction costs were recorded to
general and administrative ("G&A") expense.
Excluding these items, Operating Results in the Exploration and
Production segment in the current year’s third quarter were $30.6
million, or $0.36 per share, compared to $16.7 million, or $0.20
per share, in the prior year’s third quarter, an increase of $13.9
million or $0.16 per share. The increase in Operating Results is
mainly due to higher natural gas production and lower operating
expenses, offset partially by lower realized natural gas and crude
oil prices after hedging, lower oil production and higher interest
expense.
Seneca's net third quarter fiscal 2016 production was 44.0
billion cubic feet equivalent ("Bcfe"), an increase of 7.8 Bcfe, or
22 percent, from the prior fiscal year's third quarter, and an
increase of 4.8 Bcfe, or 12 percent, versus the second quarter of
fiscal 2016. Net natural gas production for the quarter was 39.6
Bcf, an increase of 8.0 Bcf, or 25 percent, versus prior year due
mainly to new incremental firm transportation capacity that became
available to Seneca during the first quarter of fiscal 2016. In
addition, improved local spot pricing in Pennsylvania allowed
Seneca to sell approximately 6.4 Bcf of net production in local
spot markets during the quarter, the first meaningful spot
production volumes Seneca has sold since the first quarter of
fiscal 2015. Seneca's voluntary production curtailments decreased
7.1 Bcf from the estimated 11.8 Bcf of net production curtailed in
the third quarter of fiscal 2015 and 4.4 Bcf from the estimated 9.1
Bcf curtailed during the second quarter of fiscal 2016.
Seneca produced 728 thousand barrels ("Mbbl") of crude oil
during the third quarter, a decrease of 31 Mbbl, or 4.1 percent,
when compared to the prior year due primarily to a temporary
disruption in steam flood operations in North Midway Sunset and
lower overall well workover activity in response to the decline in
oil market prices.
Seneca's average realized natural gas price, after the impact of
hedging, for the third quarter was $2.86 per thousand cubic feet
("Mcf"), a decrease of $0.46 per Mcf versus the prior year third
quarter. Seneca's average realized oil price, after the impact of
hedging, for the third quarter was $58.79 per barrel ("Bbl"), a
decrease of $10.86 per Bbl when compared to the prior year third
quarter. Seneca's average realized natural gas and oil prices
benefited from a $1.11 per Mcf and $19.75 per Bbl uplift,
respectively, from financial hedges settled during the quarter.
Lease operating and transportation ("LOE") expense decreased by
$0.5 million versus the prior year third quarter due to lower per
unit LOE offset partially by the impact of higher production. On a
per unit of production basis, LOE for the third quarter decreased
by $0.21 per Mcf equivalent ("Mcfe") to $0.88 per Mcfe. The
decrease is largely due to a reduction in well maintenance and
steam costs in Seneca's California division and lower salt water
disposal and maintenance costs in Seneca's Appalachian
division.
G&A expense, excluding the $3.2 million of professional fees
related to the joint development agreement discussed above, was
$13.4 million for the third quarter, a decrease of $3.7 million
versus the prior year due primarily to lower personnel costs at
Seneca.
Depreciation, depletion and amortization ("DD&A") expense
decreased $24.8 million versus the prior year third quarter due to
lower per unit DD&A, offset partially by the impact of higher
production. On a per unit of production basis, DD&A decreased
$0.84 per Mcfe to $0.71 per Mcfe due primarily to a lower
depletable fixed asset balance resulting from the ceiling test
impairment charges recorded during the prior four quarters and
higher natural gas reserve balances at September 30, 2015.
Property, franchise and other taxes decreased $2.3 million
versus the prior year third quarter due primarily to reimbursements
received from Seneca's joint development partner for its share of
Pennsylvania impact fees and the general decline in oil and natural
gas market prices, which have lowered the assessed values of
Seneca's California oil properties and impact fee payments in
Pennsylvania.
The $2.6 million increase in interest expense is due to the full
quarter impact of the long-term debt issuance that occurred at the
end of the quarter ended June 30, 2015.
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.
(in thousands except per share
amounts)
Quarter Ended
June 30, 2016
Quarter Ended
June 30, 2015
Variance Net Income / (Loss) $ 17,323 $ 17,714 $ (391 ) Net
Income / (Loss) Per Share (Diluted) $ 0.20 $ 0.21 $ (0.01 )
Adjusted EBITDA $ 48,515 $ 44,437 $ 4,078
The Pipeline and Storage segment's third quarter earnings were
relatively flat versus the prior year as the increase in operating
revenues were offset by increases in Operation and Maintenance
("O&M"), DD&A and interest expenses. Operating revenues
increased $6.9 million, or 10 percent, as a result of the three
expansion projects - Northern Access 2015, Westside Expansion &
Modernization, and Tuscarora Lateral - that were placed in service
during the first quarter of fiscal 2016.
O&M expense increased $2.2 million versus prior year's third
quarter due primarily to higher post-retirement benefit costs and
expenses associated with the operation of new and expanded
compression assets. DD&A expense for the quarter increased $1.4
million due to higher gross plant in service, which was largely
attributable to the expansion projects that were placed in service
within the last year. The $1.9 million increase in interest expense
is due to the full quarter impact of the long-term debt issuance
that occurred at the end of the quarter ended June 30, 2015,
coupled with lower capitalized interest resulting from the decline
in pipeline expansion construction work in progress during the
current quarter.
Gathering Segment
The Gathering segment’s operations are carried out by National
Fuel Gas Midstream Corporation’s subsidiary 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.
(in thousands except per share
amounts)
Quarter Ended
June 30, 2016
Quarter Ended
June 30, 2015
Variance Net Income / (Loss) $ 9,473 $ 6,226 $ 3,247 Net
Income / (Loss) Per Share (Diluted) $ 0.11 $ 0.07 $ 0.04 Adjusted
EBITDA $ 22,433 $ 14,527 $ 7,906
The increase in the Gathering segment's third quarter earnings
is due primarily to higher gathering revenues, offset partially by
higher O&M, DD&A and interest expenses. Operating revenues
increased $8.6 million, or 51 percent, versus prior year's third
quarter mainly due to a 15.0 Bcf increase in gathered volume on the
Clermont Gathering System ("Clermont"), a result of Seneca's
increased gross production volumes. O&M expense increased $0.7
million due to higher costs associated with operating various
Clermont compression projects placed in service during the current
fiscal year. DD&A expense increased $1.4 million due to higher
gross plant in service during the quarter.
The $2.0 million increase in interest expense is due to the full
quarter impact of the long-term debt issuance that occurred at the
end of the quarter ended June 30, 2015, coupled with lower
capitalized interest resulting from the Clermont projects being
placed in service.
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.
(in thousands except per share
amounts)
Quarter Ended
June 30, 2016
Quarter Ended
June 30, 2015
Variance Net Income / (Loss) $ 2,179 $ 5,727 $ (3,548 ) Net
Income / (Loss) Per Share (Diluted) $ 0.03 $ 0.07 $ (0.04 )
Adjusted EBITDA $ 22,900 $ 27,059 $ (4,159 )
The decrease in the Utility segment's third quarter earnings was
largely attributable to the impact of higher O&M expenses,
which increased $2.5 million versus the prior year due to higher
personnel costs and expenses relating to the implementation of the
new customer information system that went in service during the
quarter. The Utility segment's earnings were further reduced by
higher DD&A expense and lower margins.
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.
(in thousands except per share
amounts)
Quarter Ended
June 30, 2016
Quarter Ended
June 30, 2015
Variance Net Income / (Loss) $ (590 ) $ 1,533 $ (2,123 ) Net
Income / (Loss) Per Share (Diluted) $ (0.01 ) $ 0.02 $ (0.03 )
Adjusted EBITDA $ (930 ) $ 2,327 $ (3,257 )
The decrease in the Energy Marketing segment's third quarter
earnings is due primarily to lower margins, which were negatively
impacted by changes in natural gas prices at local purchase points
relative to NYMEX-based customer sales contracts.
Corporate and All Other
The Corporate and All Other category net loss of $0.9 million
for the quarter ended June 30, 2016, compares to a net loss of $1.2
million in the prior year’s third quarter. The $0.3 million
decrease in the net loss impacted consolidated earnings by less
than $0.01 per share.
EARNINGS GUIDANCE
The Company is updating and narrowing earnings guidance for
fiscal 2016 to a range of $2.90 to $3.00 per share exclusive of any
ceiling test impairment charges. These charges were $531 million
after-tax, or $6.26 per share, for the nine months ended June 30,
2016. While the Company expects to incur an additional ceiling test
impairment charge in the fourth quarter of fiscal 2016, the amount
of this charge is not reasonably determinable at this time. The
amount of any ceiling test charge is determined at the end of the
applicable quarter and will depend on many factors, including
additions to or subtractions from proved reserves, fluctuations in
oil and gas prices, and income tax effects related to the
differences between the book and tax basis of the Company’s oil and
gas properties. Some or all of these factors are likely to be
significant. Because the amount of the expected ceiling test
impairment charges is not reasonably determinable at this time, the
Company is unable to provide earnings guidance other than on a
non-GAAP basis that excludes those charges.
The Company's updated fiscal 2016 guidance reflects actual third
quarter results and the following revised forecast assumptions:
Updated FY 2016 Guidance
Previous FY 2016 Guidance Consolidated Earnings per
Share (1) $2.90 to $3.00 $2.80 to $2.95
Capital Expenditures (Millions) Exploration &
Production (2) $120 - $135 $120 - $160 Pipeline & Storage $125
- $140 $130 - $160 Gathering $55 - $65 $75 - $85 Utility $90 - $100
$90 - $100
Consolidated Capital Expenditures $390 -
$440 $415 - $505 Exploration & Production
Segment Guidance NYMEX Natural Gas Price Assumption $2.75 $2.15
NYMEX Crude Oil Price Assumption $45.00 $40.00 Total
Production (Bcfe) 160 to 165 158 to 175 E&P Operating Costs
($/Mcfe) LOE $0.95 - $1.00 $0.95 - $1.05 G&A (3) $0.35 - $0.40
$0.35 - $0.40 DD&A $0.85 - $0.90 $0.85 - $0.95
(1) Exclusive of ceiling test impairment charges (2)
Net of up-front and recurring proceeds received from joint
development partner (3) G&A per unit guidance excludes $7.9
million of joint development professional fees
The Company is also initiating preliminary earnings, capital
expenditures, and Exploration and Production segment operations
guidance for fiscal 2017.
Preliminary FY 2017 Guidance
Consolidated Earnings per Share (1) $2.85 to
$3.15 Capital Expenditures (Millions) Exploration
& Production (2) $160 - $200 Pipeline & Storage $400 - $450
Gathering $75 - $85 Utility $90 - $100
Consolidated Capital
Expenditures $725 - $835 Exploration &
Production Segment Guidance NYMEX Natural Gas Price Assumption
$3.00 NYMEX Crude Oil Price Assumption $50.00
Production
(Bcfe) East Division - Appalachia 130 to 153 West Division -
California 20 to 22
Total Production 150 to 175
Capital Expenditures (Millions) East Division -
Appalachia $125 - $155 West Division - California $35 - $45
Total E&P Capital Expenditures $160 - $200
E&P Operating Costs ($/Mcfe) LOE $0.95 - $1.05 G&A
$0.35 - $0.40 DD&A $0.65 - $0.75
Midstream Businesses
Guidance Pipeline & Storage Segment Revenues (Millions)
$295 - $305 Gathering Segment Revenues (Millions) $95 - $105
(1) Assumes no ceiling test impairment charges
(2) Net of up-front and recurring proceeds received from joint
development partner
EARNINGS TELECONFERENCE
The Company will host a conference call on Friday, August 5,
2016, 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) 877-706-7579, using conference ID number “46345887.”
For those unable to listen to the live conference call, an audio
replay will be available at approximately 3 p.m. Eastern Time at
the same website link and by phone at (toll-free) 855-859-2056 or
404-537-3406, using conference ID number “46345887.” Both the
webcast and telephonic replay will be available until the close of
business on Friday, August 12, 2016.
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: impairments under the SEC’s full cost ceiling test for
natural gas and oil reserves; changes in the price of natural gas
or oil; 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; 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; 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; 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; 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 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; economic disruptions or
uninsured losses resulting from major accidents, fires, severe
weather, natural disasters, terrorist activities, acts of war,
cyber attacks or pest infestation; significant differences between
the Company’s projected and actual capital expenditures and
operating expenses; 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; increasing health care costs and the resulting
effect on health insurance premiums and on the obligation to
provide other post-retirement benefits; 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
hereof.
NATIONAL FUEL GAS COMPANY RECONCILIATION OF CURRENT AND
PRIOR YEAR GAAP EARNINGS QUARTER ENDED JUNE 30, 2016
(Unaudited) Upstream
Midstream Businesses
Downstream Businesses
Exploration & Pipeline & Energy Corporate /
(Thousands of Dollars) Production Storage Gathering
Utility Marketing All Other
Consolidated*
Third quarter 2015 GAAP earnings $
(323,113 ) $ 17,714 $ 6,226 $ 5,727 $ 1,533 $ (1,221 ) $ (293,134 )
Items impacting comparability: Impairment of oil and gas
producing properties 588,712 588,712 Tax impact of impairment of
oil and gas producing properties (248,863 )
(248,863 )
Third quarter 2015 operating results 16,736 17,714 6,226
5,727 1,533 (1,221 ) 46,715
Drivers of operating
results Higher (lower) crude oil prices (5,138 ) (5,138 )
Higher (lower) natural gas prices (12,005 ) (12,005 ) Higher
(lower) natural gas production 17,216 17,216 Higher (lower) crude
oil production (1,420 ) (1,420 ) Lower (higher) depreciation /
depletion 16,093 (900 ) (937 ) (479 ) 13,777 Higher (lower)
transportation revenues 4,263 4,263 Higher (lower) gathering and
processing revenues 5,595 5,595 Lower (higher) operating expenses
2,614 (1,461 ) (461 ) (1,731 ) 447 (592 ) Lower (higher) property,
franchise and other taxes 1,482 1,482 Higher (lower) margins
(1,013 ) (2,209 ) 568 (2,654 ) Higher (lower) AFUDC** (598 )
(598 ) Higher (lower) interest income (410 ) (410 )
Lower (higher) interest expense (1,667 ) (1,265 ) (1,307 ) (4,239 )
Lower (higher) income tax expense / effective tax rate
(2,906 ) (715 ) 318 (894 ) (4,197 ) All other / rounding 22
285 39 (325 ) 86
166 273
Third quarter 2016
operating results 30,617 17,323 9,473 2,179 (590 ) (934 )
58,068
Items impacting comparability: Impairment of oil and
gas producing properties (82,658 ) (82,658 ) Tax impact of
impairment of oil and gas producing properties 34,716 34,716 Joint
development agreement professional fees (3,173 ) (3,173 ) Tax
impact of joint development agreement professional fees 1,333
1,333
Third quarter 2016 GAAP
earnings $ (19,165 ) $ 17,323 $ 9,473
$ 2,179 $ (590 ) $ (934 )
$ 8,286 * Amounts do not reflect intercompany
eliminations ** AFUDC = Allowance for Funds Used During
Construction
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER
SHARE QUARTER ENDED JUNE 30, 2016 (Unaudited)
Upstream
Midstream Businesses
Downstream Businesses
Exploration & Pipeline & Energy Corporate /
Production Storage Gathering Utility
Marketing All Other Consolidated*
Third
quarter 2015 GAAP earnings $ (3.79 ) $ 0.21 $ 0.07 $ 0.07 $
0.02 $ (0.02 ) $ (3.44 )
Items impacting comparability:
Impairment of oil and gas producing properties 6.91 6.91 Tax impact
of impairment of oil and gas producing properties (2.92 )
(2.92 )
Third quarter 2015 operating results 0.20
0.21 0.07 0.07 0.02 (0.02 ) 0.55
Drivers of operating
results Higher (lower) crude oil prices (0.06 ) (0.06 ) Higher
(lower) natural gas prices (0.14 ) (0.14 ) Higher (lower) natural
gas production 0.20 0.20 Higher (lower) crude oil production (0.02
) (0.02 ) Lower (higher) depreciation / depletion 0.19 (0.01 )
(0.01 ) (0.01 ) 0.16 Higher (lower) transportation revenues
0.05 0.05 Higher (lower) gathering and processing revenues 0.07
0.07 Lower (higher) operating expenses 0.03 (0.02 ) (0.01 ) (0.02 )
0.01 (0.01 ) Lower (higher) property, franchise and other taxes
0.02 0.02 Higher (lower) margins (0.01 ) (0.03 ) 0.01 (0.03
) Higher (lower) AFUDC** (0.01 ) (0.01 ) High (lower)
interest income — — Lower (higher) interest expense (0.02 )
(0.01 ) (0.02 ) (0.05 ) Lower (higher) income tax expense /
effective tax rate (0.03 ) (0.01 ) — (0.01 ) (0.05 ) All
other / rounding (0.01 ) — 0.01
— — — —
Third
quarter 2016 operating results 0.36 0.20 0.11 0.03 (0.01 )
(0.01 ) 0.68
Items impacting comparability: Impairment of
oil and gas producing properties (0.97 ) (0.97 ) Tax impact of
impairment of oil and gas producing properties 0.41 0.41 Joint
development agreement professional fees (0.04 ) (0.04 ) Tax impact
of joint development agreement professional fees 0.02
0.02
Third quarter 2016 GAAP earnings $ (0.22
) $ 0.20 $ 0.11 $ 0.03
$ (0.01 ) $ (0.01 ) $ 0.10 *
Amounts do not reflect intercompany eliminations ** AFUDC =
Allowance for Funds Used During Construction
NATIONAL FUEL
GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS NINE MONTHS ENDED JUNE 30, 2016
(Unaudited) Upstream
Midstream Businesses
Downstream Businesses
Exploration & Pipeline & Energy Corporate /
(Thousands of Dollars) Production Storage Gathering
Utility Marketing All Other
Consolidated*
Nine months ended June 30, 2015 GAAP
earnings $ (349,955 ) $ 61,868 $ 24,254 $ 66,558 $ 7,732 $
(2,181 ) $ (191,724 )
Items impacting comparability:
Impairment of oil and gas producing properties 709,060 709,060 Tax
impact of impairment of oil and gas producing properties (299,738 )
(299,738 )
Nine months ended June 30, 2015
operating results 59,367 61,868 24,254 66,558 7,732 (2,181 )
217,598
Drivers of operating results Higher (lower)
crude oil prices (20,727 ) (20,727 ) Higher (lower) natural gas
prices (27,670 ) (27,670 ) Higher (lower) natural gas production
3,219 3,219 Higher (lower) crude oil production (2,656 ) (2,656 )
Derivative mark to market adjustments (1,841 ) (1,841 ) Lower
(higher) lease operating and transportation expenses 7,905 7,905
Lower (higher) depreciation / depletion 52,621 (2,400 ) (2,198 )
(995 ) 47,028 Higher (lower) transportation revenues 6,655
6,655 Higher (lower) gathering and processing revenues 4,552 4,552
Lower (higher) operating expenses 2,399 (2,194 ) (1,137 ) 1,869
1,160 2,097 Lower (higher) property, franchise and other taxes
3,329 (592 ) 2,737 Regulatory true-up adjustments (3,067 )
(3,067 ) Warmer weather (12,861 ) (12,861 ) Higher (lower)
margins (3,755 ) 565 (3,190 ) Higher (lower) AFUDC** 509 509
Higher (lower) interest income (723 ) (723 ) Lower
(higher) interest expense (6,065 ) (3,318 ) (4,269 ) (13,652 )
Lower (higher) income tax expense / effective tax rate
(2,786 ) (338 ) 690 1,841 1,247 654 All other / rounding
(381 ) (396 ) 70 (600 ) 140
1,667 500
Nine months ended
June 30, 2016 operating results 65,991 59,794 21,962 52,745
4,117 2,458 207,067
Items impacting comparability:
Impairment of oil and gas producing properties (915,552 ) (915,552
) Tax impact of impairment of oil and gas producing properties
384,531 384,531 Joint development agreement professional fees
(7,855 ) (7,855 ) Tax impact of joint development agreement
professional fees 3,299
3,299
Nine
months ended June 30, 2016 GAAP earnings $ (469,586 ) $
59,794 $ 21,962 $ 52,745
$ 4,117 $ 2,458 $ (328,510 ) *
Amounts do not reflect intercompany eliminations ** AFUDC =
Allowance for Funds Used During Construction
NATIONAL FUEL
GAS COMPANY RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP
EARNINGS PER SHARE NINE MONTHS ENDED JUNE 30, 2016
(Unaudited) Upstream
Midstream Businesses
Downstream Businesses
Exploration & Pipeline & Energy Corporate /
Production Storage Gathering Utility
Marketing All Other Consolidated*
Nine
months ended June 30, 2015 GAAP earnings $ (4.11 ) $ 0.73 $
0.28 $ 0.78 $ 0.09 $ (0.02 ) $ (2.25 )
Items impacting
comparability: Impairment of oil and gas producing properties
8.32 8.32 Tax impact of impairment of oil and gas producing
properties (3.52 )
(3.52 )
Nine months ended June 30,
2015 operating results 0.69 0.73 0.28 0.78 0.09 (0.02 ) 2.55
Drivers of operating results Higher (lower) crude oil
prices (0.24 ) (0.24 ) Higher (lower) natural gas prices (0.32 )
(0.32 ) Higher (lower) natural gas production 0.04 0.04 Higher
(lower) crude oil production (0.03 ) (0.03 ) Derivative mark to
market adjustments (0.02 ) (0.02 ) Lower (higher) lease operating
and transportation expenses 0.09 0.09 Lower (higher) depreciation /
depletion 0.62 (0.03 ) (0.03 ) (0.01 ) 0.55 Higher (lower)
transportation revenues 0.08 0.08 Higher (lower) gathering and
processing revenues 0.05 0.05 Lower (higher) operating expenses
0.03 (0.03 ) (0.01 ) 0.02 0.01 0.02 Lower (higher) property,
franchise and other taxes 0.04 (0.01 ) 0.03 Regulatory
true-up adjustments (0.04 ) (0.04 ) Warmer weather (0.15 ) (0.15 )
Higher (lower) margins (0.04 ) 0.01 (0.03 ) Higher
(lower) AFUDC** 0.01 0.01 Higher (lower) interest income
(0.01 ) (0.01 ) Lower (higher) interest expense (0.07 )
(0.04 ) (0.05 ) (0.16 ) Lower (higher) income tax expense /
effective tax rate (0.03 ) — 0.01 0.02 0.01 0.01 All other /
rounding (0.02 ) (0.01 ) 0.01 —
— 0.02 —
Nine months
ended June 30, 2016 operating results 0.77 0.70 0.26 0.62 0.05
0.03 2.43
Items impacting comparability: Impairment of oil
and gas producing properties (10.80 ) (10.80 ) Tax impact of
impairment of oil and gas producing properties 4.54 4.54 Joint
development agreement professional fees (0.09 ) (0.09 ) Tax impact
of joint development agreement professional fees 0.04 0.04 Earnings
per share impact of diluted shares 0.01
0.01
Nine months ended June 30, 2016 GAAP earnings $ (5.54 )
$ 0.71 $ 0.26 $ 0.62
$ 0.05 $ 0.03 $ (3.87 ) *
Amounts do not reflect intercompany eliminations ** AFUDC =
Allowance for Funds Used During Construction
NATIONAL FUEL GAS COMPANY AND
SUBSIDIARIES (Thousands of Dollars, except per share
amounts) Three Months Ended Nine Months Ended June 30, June 30,
(Unaudited) (Unaudited)
SUMMARY OF
OPERATIONS
2016 2015 2016 2015 Operating Revenues: Utility and
Energy Marketing Revenues $ 123,976 $ 132,422 $ 540,981 $ 772,802
Exploration and Production and Other Revenues 158,578 160,256
456,032 532,173 Pipeline and Storage and Gathering Revenues 53,063
47,137 162,930 154,876 335,617 339,815
1,159,943 1,459,851 Operating Expenses: Purchased Gas 23,477 27,038
147,168 344,728 Operation and Maintenance: Utility and Energy
Marketing 46,616 44,263 151,474 156,724 Exploration and Production
and Other 35,427 46,162 123,965 140,564 Pipeline and Storage and
Gathering 23,215 20,272 64,324 59,237 Property, Franchise and Other
Taxes 20,261 22,717 61,923 68,561 Depreciation, Depletion and
Amortization 58,802 79,865 193,300 265,298 Impairment of Oil and
Gas Producing Properties 82,658 588,712 915,552
709,060 290,456 829,029 1,657,706 1,744,172
Operating Income (Loss) 45,161 (489,214 ) (497,763 ) (284,321 )
Other Income (Expense): Interest Income 564 327 2,640 1,631
Other Income 1,519 2,066 7,173 4,638 Interest Expense on Long-Term
Debt (28,897 ) (22,213 ) (88,263 ) (66,900 ) Other Interest Expense
(1,321 ) (1,007 ) (3,938 ) (3,382 ) Income (Loss) Before
Income Taxes 17,026 (510,041 ) (580,151 ) (348,334 ) Income
Tax Expense (Benefit) 8,740 (216,907 ) (251,641 ) (156,610 )
Net Income (Loss) Available for Common Stock $ 8,286
$ (293,134 ) $ (328,510 ) $ (191,724 )
Earnings
(Loss) Per Common Share: Basic $ 0.10 $ (3.47 ) $ (3.87
) $ (2.27 ) Diluted $ 0.10 $ (3.44 ) $ (3.87 ) $ (2.25 )
Weighted Average Common Shares: Used in Basic
Calculation 84,917,664 84,453,602 84,791,447 84,326,182 Used in
Diluted Calculation 85,470,216 85,248,281 84,791,447 85,237,514
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited) June
30, September 30, (Thousands of Dollars)
2016 2015
ASSETS Property, Plant and
Equipment $ 9,460,444 $ 9,261,323 Less - Accumulated Depreciation,
Depletion and Amortization 5,012,690
3,929,428 Net Property, Plant and Equipment
4,447,754
5,331,895 Current Assets: Cash and Temporary Cash
Investments 105,567 113,596 Hedging Collateral Deposits 3,008
11,124 Receivables - Net 140,911 105,004 Unbilled Revenue 14,604
20,746 Gas Stored Underground 15,944 34,252 Materials and Supplies
- at average cost 33,039 30,414 Unrecovered Purchased Gas Costs 933
— Other Current Assets 47,118
60,665 Total Current Assets
361,124 375,801 Other Assets:
Recoverable Future Taxes 172,456 168,214 Unamortized Debt Expense
1,821 2,218 Other Regulatory Assets 269,343 278,227 Deferred
Charges 17,968 15,129 Other Investments 111,385 92,990 Goodwill
5,476 5,476 Prepaid Post-Retirement Benefit Costs 27,158 24,459
Fair Value of Derivative Financial Instruments 126,596 270,363
Other 116 167
Total Other Assets 732,319
857,243 Total Assets $ 5,541,197
$ 6,564,939
CAPITALIZATION AND
LIABILITIES Capitalization: Comprehensive Shareholders' Equity
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued
and Outstanding - 84,948,691 Shares and 84,594,383 Shares,
Respectively $ 84,949 $ 84,594 Paid in Capital 761,673 744,274
Earnings Reinvested in the Business 673,281 1,103,200 Accumulated
Other Comprehensive Income 7,739
93,372 Total Comprehensive Shareholders' Equity
1,527,642 2,025,440 Long-Term Debt, Net of Unamortized Discount and
Debt Issuance Costs 2,085,686
2,084,009 Total Capitalization
3,613,328 4,109,449 Current and
Accrued Liabilities: Notes Payable to Banks and Commercial Paper —
— Current Portion of Long-Term Debt — — Accounts Payable 86,487
180,388 Amounts Payable to Customers 35,441 56,778 Dividends
Payable 34,404 33,415 Interest Payable on Long-Term Debt 28,985
36,200 Customer Advances 38 16,236 Customer Security Deposits
16,094 16,490 Other Accruals and Current Liabilities 72,759 96,557
Fair Value of Derivative Financial Instruments
2,133 10,076 Total Current and Accrued
Liabilities 276,341
446,140 Deferred Credits: Deferred Income Taxes
807,955 1,137,962 Taxes Refundable to Customers 91,452 89,448
Unamortized Investment Tax Credit 470 731 Cost of Removal
Regulatory Liability 191,217 184,907 Other Regulatory Liabilities
102,018 108,617 Pension and Other Post-Retirement Liabilities
222,756 202,807 Asset Retirement Obligations 114,804 156,805 Other
Deferred Credits 120,856
128,073 Total Deferred Credits
1,651,528 2,009,350 Commitments and
Contingencies — —
Total Capitalization and Liabilities $
5,541,197 $ 6,564,939
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended June 30, (Thousands of Dollars)
2016 2015 Operating Activities: Net Loss
Available for Common Stock $ (328,510 ) $ (191,724 ) Adjustments to
Reconcile Net Income (Loss) to Net Cash Provided by Operating
Activities: Impairment of Oil and Gas Producing Properties 915,552
709,060 Depreciation, Depletion and Amortization 193,300 265,298
Deferred Income Taxes (269,248 ) (198,116 ) Excess Tax Benefits
Associated with Stock-Based Compensation Awards (1,786 ) (9,064 )
Stock-Based Compensation 3,138 8,383 Other 9,685 7,329 Change in:
Hedging Collateral Deposits 8,116 (8,367 ) Receivables and Unbilled
Revenue (7,756 ) 22,175 Gas Stored Underground and Materials and
Supplies 15,683 20,259 Unrecovered Purchased Gas Costs (933 ) —
Other Current Assets 15,334 14,367 Accounts Payable (53,687 )
11,153 Amounts Payable to Customers (21,337 ) 11,097 Customer
Advances (16,198 ) (18,961 ) Customer Security Deposits (396 )
2,568 Other Accruals and Current Liabilities 3,375 13,794 Other
Assets 3,775 1,124 Other Liabilities (8,152 )
52,261 Net Cash Provided by Operating Activities
$ 459,955 $ 712,636
Investing Activities: Capital Expenditures $ (481,781 ) $
(718,965 ) Net Proceeds from Sale of Oil and Gas Producing
Properties 115,235 — Other (11,163 )
(1,065 ) Net Cash Used in Investing Activities
$ (377,709 ) $ (720,030 ) Financing Activities:
Changes in Notes Payable to Banks and Commercial Paper $ — $
(85,600 ) Excess Tax Benefits Associated with Stock-Based
Compensation Awards 1,786 9,064 Dividends Paid on Common Stock
(100,419 ) (97,330 ) Net Proceeds From Issuance of Long-Term Debt —
445,662 Net Proceeds From Issuance of Common Stock
8,358 8,743 Net Cash (Used in) Provided
by Financing Activities $ (90,275 ) $
280,539 Net Increase (Decrease) in Cash and Temporary
Cash Investments (8,029 ) 273,145 Cash and Temporary Cash
Investments at Beginning of Period 113,596
36,886 Cash and Temporary Cash Investments at
June 30 $ 105,567 $ 310,031
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED) UPSTREAM BUSINESS
Three Months Ended Nine Months Ended (Thousands of Dollars, except
per share amounts) June 30, June 30,
EXPLORATION AND
PRODUCTION SEGMENT
2016 2015 Variance 2016 2015 Variance
Total Operating Revenues $ 156,835 $ 159,404
$ (2,569 ) $ 452,583 $ 529,590 $
(77,007 ) Operating Expenses: Operation and Maintenance:
General and Administrative Expense 16,573 17,066 (493 ) 55,671
50,793 4,878 Lease Operating and Transportation Expense 38,861
39,390 (529 ) 115,451 127,614 (12,163 ) All Other Operation and
Maintenance Expense 3,011 3,367 (356 ) 10,402 11,115 (713 )
Property, Franchise and Other Taxes 3,639 5,919 (2,280 ) 10,241
15,361 (5,120 ) Depreciation, Depletion and Amortization 31,279
56,038 (24,759 ) 112,586 193,540 (80,954 ) Impairment of Oil and
Gas Producing Properties 82,658 588,712
(506,054 ) 915,552 709,060 206,492
176,021 710,492 (534,471 )
1,219,903 1,107,483 112,420
Operating Loss (19,186 ) (551,088) 531,902 (767,320 )
(577,893) (189,427 ) Other Income (Expense): Interest Income
88 720 (632 ) 781 1,893 (1,112 ) Interest Expense (13,753 )
(11,190 ) (2,563 ) (41,882 ) (32,551 ) (9,331
) Loss Before Income Taxes (32,851 ) (561,558 ) 528,707
(808,421 ) (608,551 ) (199,870 ) Income Tax Benefit (13,686 )
(238,445 ) 224,759 (338,835 ) (258,596
) (80,239 ) Net Loss $ (19,165 ) $ (323,113 )
$ 303,948 $ (469,586 ) $ (349,955 ) $ (119,631
) Net Loss Per Share (Diluted) $ (0.22 ) $ (3.79 )
$ 3.57 $ (5.54 ) $ (4.11 ) $ (1.43 )
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS (UNAUDITED)
MIDSTREAM BUSINESSES Three Months Ended
Nine Months Ended (Thousands of Dollars, except per share amounts)
June 30, June 30,
PIPELINE AND
STORAGE SEGMENT
2016 2015 Variance 2016 2015 Variance
Revenues from External Customers $ 52,998 $ 47,012 $ 5,986 $
162,627 $ 154,515 $ 8,112 Intersegment Revenues 22,795
21,833 962 68,272 66,347
1,925 Total Operating Revenues 75,793
68,845 6,948 230,899
220,862 10,037 Operating Expenses:
Purchased Gas 356 (61 ) 417 1,059 492 567 Operation and Maintenance
20,492 18,243 2,249 57,145 53,770 3,375 Property, Franchise and
Other Taxes 6,430 6,226 204 19,766 18,855 911 Depreciation,
Depletion and Amortization 11,023 9,639
1,384 32,144 28,452 3,692
38,301 34,047 4,254 110,114
101,569 8,545 Operating
Income 37,492 34,798 2,694 120,785 119,293 1,492 Other
Income (Expense): Interest Income 237 142 95 527 350 177 Other
Income 657 1,000 (343 ) 2,651 1,888 763 Interest Expense (8,528 )
(6,581 ) (1,947 ) (25,017 ) (19,913 )
(5,104 ) Income Before Income Taxes 29,858 29,359 499 98,946
101,618 (2,672 ) Income Tax Expense 12,535 11,645
890 39,152 39,750
(598 ) Net Income $ 17,323 $ 17,714 $
(391 ) $ 59,794 $ 61,868 $ (2,074 )
Net Income Per Share (Diluted) $ 0.20 $ 0.21
$ (0.01 ) $ 0.71 $ 0.73 $
(0.02 ) Three Months Ended Nine Months Ended June 30,
June 30,
GATHERING
SEGMENT
2016 2015 Variance 2016 2015 Variance
Revenues from External Customers $ 65 $ 126 $ (61 ) $ 303 $ 361 $
(58 ) Intersegment Revenues 25,417 16,748
8,669 65,601 58,541 7,060
Total Operating Revenues 25,482 16,874
8,608 65,904 58,902 7,002
Operating Expenses: Operation and Maintenance 3,018
2,309 709 8,066 6,317 1,749 Property, Franchise and Other Taxes 31
38 (7 ) 116 130 (14 ) Depreciation, Depletion and Amortization
3,608 2,166 1,442 11,407
8,025 3,382 6,657 4,513
2,144 19,589 14,472
5,117 Operating Income 18,825 12,361 6,464
46,315 44,430 1,885 Other Income (Expense): Interest Income
88 35 53 188 94 94 Other Income 1 1 — 3 3 — Interest Expense (1,794
) 216 (2,010 ) (6,781 ) (214 )
(6,567 ) Income Before Income Taxes 17,120 12,613 4,507
39,725 44,313 (4,588 ) Income Tax Expense 7,647 6,387
1,260 17,763 20,059
(2,296 ) Net Income $ 9,473 $ 6,226
$ 3,247 $ 21,962 $ 24,254
$ (2,292 ) Net Income Per Share (Diluted) $ 0.11
$ 0.07 $ 0.04 $ 0.26 $
0.28 $ (0.02 )
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES SEGMENT OPERATING RESULTS AND
STATISTICS (UNAUDITED) DOWNSTREAM
BUSINESSES Three Months Ended Nine Months Ended
(Thousands of Dollars, except per share amounts) June 30, June 30,
UTILITY
SEGMENT
2016 2015 Variance 2016 2015 Variance
Revenues from External Customers $ 106,568 $ 110,002 $ (3,434 ) $
463,154 $ 630,049 $ (166,895 ) Intersegment Revenues 1,729
2,614 (885 ) 10,757 13,670
(2,913 ) Total Operating Revenues 108,297
112,616 (4,319 ) 473,911 643,719
(169,808 ) Operating Expenses: Purchased Gas
29,514 31,812 (2,298 ) 155,764 295,490 (139,726 ) Operation and
Maintenance 45,990 43,487 2,503 148,883 154,126 (5,243 ) Property,
Franchise and Other Taxes 9,893 10,258 (365 ) 30,980 33,380 (2,400
) Depreciation, Depletion and Amortization 12,234
11,498 736 35,511 33,981
1,530 97,631 97,055 576
371,138 516,977 (145,839 )
Operating Income 10,666 15,561 (4,895 ) 102,773 126,742
(23,969 ) Other Income (Expense): Interest Income 115 17 98
321 42 279 Other Income 345 609 (264 ) 1,749 1,604 145 Interest
Expense (7,192 ) (6,997 ) (195 ) (21,684 )
(21,145 ) (539 ) Income Before Income Taxes 3,934
9,190 (5,256 ) 83,159 107,243 (24,084 ) Income Tax Expense 1,755
3,463 (1,708 ) 30,414
40,685 (10,271 ) Net Income $ 2,179 $
5,727 $ (3,548 ) $ 52,745 $ 66,558
$ (13,813 ) Net Income Per Share (Diluted) $
0.03 $ 0.07 $ (0.04 ) $ 0.62
$ 0.78 $ (0.16 ) Three Months
Ended Nine Months Ended June 30, June 30,
ENERGY MARKETING
SEGMENT
2016 2015 Variance 2016 2015 Variance
Revenues from External Customers $ 17,408 $ 22,420 $ (5,012 ) $
77,827 $ 142,753 $ (64,926 ) Intersegment Revenues 231
379 (148 ) 855 796
59 Total Operating Revenues 17,639 22,799
(5,160 ) 78,682 143,549
(64,867 ) Operating Expenses: Purchased Gas 17,191 18,954
(1,763 ) 67,235 126,325 (59,090 ) Operation and Maintenance 1,376
1,516 (140 ) 4,872 4,804 68 Property, Franchise and Other Taxes 2 2
— 6 7 (1 ) Depreciation, Depletion and Amortization 70
50 20 208 151
57 18,639 20,522 (1,883 )
72,321 131,287 (58,966 )
Operating Income (Loss) (1,000 ) 2,277 (3,277 ) 6,361 12,262 (5,901
) Other Income (Expense): Interest Income 145 60 85 286 141
145 Other Income 20 28 (8 ) 44 95 (51 ) Interest Expense (11 )
(5 ) (6 ) (37 ) (20 ) (17 )
Income (Loss) Before Income Taxes (846 ) 2,360 (3,206 ) 6,654
12,478 (5,824 ) Income Tax Expense (Benefit) (256 ) 827
(1,083 ) 2,537 4,746
(2,209 ) Net Income (Loss) $ (590 ) $ 1,533 $
(2,123 ) $ 4,117 $ 7,732 $ (3,615 )
Net Income (Loss) Per Share (Diluted) $ (0.01 ) $
0.02 $ (0.03 ) $ 0.05 $ 0.09
$ (0.04 )
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED) Three Months Ended Nine Months Ended
(Thousands of Dollars, except per share amounts) June 30, June 30,
ALL
OTHER
2016 2015 Variance 2016 2015 Variance
Total Operating Revenues $ 1,508 $ 634
$ 874 $ 2,775 $ 1,906 $ 869
Operating Expenses: Operation and Maintenance 256 227 29 495
709 (214 ) Property, Franchise and Other Taxes 144 155 (11 ) 449
462 (13 ) Depreciation, Depletion and Amortization 399
305 94 888 645
243 799 687 112
1,832 1,816 16 Operating
Income (Loss) 709 (53 ) 762 943 90 853 Other Income
(Expense): Interest Income 32 19 13 83 48 35 Other Income —
1 (1 ) — 4 (4 )
Income (Loss) Before Income Taxes 741 (33 ) 774 1,026 142
884 Income Tax Expense (Benefit) 311 (5 ) 316
431 76 355 Net Income
(Loss) $ 430 $ (28 ) $ 458 $ 595
$ 66 $ 529 Net Income (Loss) Per
Share (Diluted) $ 0.01 $ — $ 0.01
$ 0.01 $ — $ 0.01
Three Months Ended Nine Months Ended June 30, June 30,
CORPORATE
2016 2015 Variance 2016 2015 Variance
Revenues from External Customers $ 235 $ 217 $ 18 $ 674 $ 677 $ (3
) Intersegment Revenues 967 953 14
2,900 2,792 108 Total
Operating Revenues 1,202 1,170 32
3,574 3,469 105 Operating
Expenses: Operation and Maintenance 3,236 3,952 (716 ) 10,273
11,844 (1,571 ) Property, Franchise and Other Taxes 122 119 3 365
366 (1 ) Depreciation, Depletion and Amortization 189
169 20 556 504 52
3,547 4,240 (693 ) 11,194
12,714 (1,520 ) Operating Loss (2,345 )
(3,070 ) 725 (7,620 ) (9,245 ) 1,625 Other Income (Expense):
Interest Income 30,684 24,990 5,694 92,767 74,479 18,288 Other
Income 496 427 69 2,726 1,044 1,682 Interest Expense on Long-Term
Debt (28,897 ) (22,213 ) (6,684 ) (88,263 ) (66,900 ) (21,363 )
Other Interest Expense (868 ) (2,106 ) 1,238
(850 ) (4,955 ) 4,105 Loss Before
Income Taxes (930 ) (1,972 ) 1,042 (1,240 ) (5,577 ) 4,337 Income
Tax Expense (Benefit) 434 (779 ) 1,213
(3,103 ) (3,330 ) 227 Net Income (Loss) $
(1,364 ) $ (1,193 ) $ (171 ) $ 1,863 $
(2,247 ) $ 4,110 Net Income (Loss) Per Share
(Diluted) $ (0.02 ) $ (0.02 ) $ — $ 0.02
$ (0.02 ) $ 0.04 Three
Months Ended Nine Months Ended June 30, June 30,
INTERSEGMENT
ELIMINATIONS
2016 2015 Variance 2016 2015 Variance
Intersegment Revenues $ (51,139 ) $ (42,527 ) $
(8,612 ) $ (148,385 ) $ (142,146 ) $ (6,239 )
Operating Expenses: Purchased Gas (23,584 ) (23,667 ) 83 (76,890 )
(77,579 ) 689 Operation and Maintenance (27,555 ) (18,860 )
(8,695 ) (71,495 ) (64,567 ) (6,928 ) (51,139
) (42,527 ) (8,612 ) (148,385 ) (142,146 )
(6,239 ) Operating Income — — — — — — Other
Income (Expense): Interest Income (30,825 ) (25,656 ) (5,169 )
(92,313 ) (75,416 ) (16,897 ) Interest Expense 30,825
25,656 5,169 92,313 75,416
16,897 Net Income $ — $ —
$ — $ — $ — $ —
Net Income Per Share (Diluted) $ — $ —
$ — $ — $ — $ —
NATIONAL FUEL GAS COMPANY AND
SUBSIDIARIES SEGMENT INFORMATION (Continued)
(Thousands of Dollars) Three Months Ended Nine Months
Ended June 30, June 30, (Unaudited) (Unaudited) Increase Increase
2016 2015 (Decrease) 2016 2015 (Decrease)
Capital
Expenditures:
Exploration and Production $
47,269
(1)
$ 136,374 (3) $ (89,105 ) $ 214,923 (1)(2) $ 437,450 (3)(4) $
(222,527 ) Pipeline and Storage 18,325 (1) 56,993 (3) (38,668 )
76,020 (1)(2) 114,664 (3)(4) (38,644 ) Gathering 9,192 (1) 36,665
(3) (27,473 ) 43,715 (1)(2) 87,214 (3)(4) (43,499 ) Utility 26,280
(1) 23,596 (3) 2,684 72,288 (1)(2) 65,337 (3)(4) 6,951 Energy
Marketing 19 32 (13 ) 28 124 (96 )
Total Reportable Segments 101,085 253,660 (152,575 ) 406,974
704,789 (297,815 ) All Other — — — 37 — 37 Corporate 36 67
(31 ) 191 134 57 Total Capital
Expenditures $ 101,121 $ 253,727 $ (152,606 ) $
407,202 $ 704,923 $ (297,721 )
(1)
Capital expenditures for the quarter and nine months ended
June 30, 2016, include accounts payable and accrued liabilities
related to capital expenditures of $26.7 million, $7.6 million,
$2.8 million, and $7.3 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 June 30, 2016,
since they represent non-cash investing activities at that date.
(2)
Capital expenditures for the nine months ended June 30, 2016,
exclude capital expenditures of $46.2 million, $33.9 million, $22.4
million and $16.5 million in the Exploration and Production
segment, Pipeline and Storage segment, Gathering segment and
Utility segment, respectively. These amounts were in accounts
payable and accrued liabilities at September 30, 2015 and paid
during the nine months ended June 30, 2016. These amounts were
excluded from the Consolidated Statement of Cash Flows at September
30, 2015, since they represented non-cash investing activities at
that date. These amounts have been included in the Consolidated
Statement of Cash Flows at June 30, 2016.
(3)
Capital expenditures for the quarter and nine months ended June 30,
2015, include accounts payable and accrued liabilities related to
capital expenditures of $64.3 million, $28.0 million, $21.4
million, and $8.9 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 June 30, 2015,
since they represent non-cash investing activities at that date.
(4)
Capital expenditures for the nine months ended June 30, 2015,
exclude capital expenditures of $80.1 million, $28.1 million, $20.1
million and $8.3 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, 2014 and paid during the nine
months ended June 30, 2015. These amounts were excluded from the
Consolidated Statements of Cash Flows at September 30, 2014, since
they represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at June 30, 2015.
DEGREE
DAYS
Percent Colder (Warmer) Than:
Three Months Ended
June 30
Normal 2016 2015 Normal (1) Last Year (1) Buffalo, NY 912
927 778 1.6 19.2 Erie, PA 871 936 729 7.5 28.4
Nine Months Ended
June 30
Buffalo, NY 6,491 5,567 6,898 (14.2) (19.3) Erie, PA 6,057
5,159 6,535 (14.8) (21.1)
(1)
Percents compare actual 2016 degree days to normal degree
days and actual 2016 degree days to actual 2015 degree days.
NATIONAL
FUEL GAS COMPANY AND SUBSIDIARIES
EXPLORATION AND
PRODUCTION INFORMATION
Three Months Ended Nine Months Ended June 30, June
30, Increase Increase 2016 2015 (Decrease) 2016 2015 (Decrease)
Gas
Production/Prices:
Production (MMcf) Appalachia 38,846 30,830 8,016 105,747 104,221
1,526 West Coast 763 807 (44 ) 2,310 2,375
(65 ) Total Production 39,609 31,637 7,972
108,057 106,596 1,461 Average
Prices (Per Mcf) Appalachia $ 1.73 $ 2.11 $ (0.38 ) $ 1.84 $ 2.56 $
(0.72 ) West Coast 2.84 3.52 (0.68 ) 3.13 4.30 (1.17 ) Weighted
Average 1.75 2.15 (0.40 ) 1.87 2.60 (0.73 ) Weighted Average after
Hedging 2.86 3.32 (0.46 ) 3.00 3.39 (0.39 )
Oil
Production/Prices:
Production (Thousands of Barrels) Appalachia 6 7 (1 ) 16 22 (6 )
West Coast 722 752 (30 ) 2,183 2,234
(51 ) Total Production 728 759 (31 ) 2,199
2,256 (57 ) Average Prices (Per Barrel) Appalachia $
58.28 $ 56.54 $ 1.74 $ 44.05 $ 62.29 $ (18.24 ) West Coast 38.89
52.07 (13.18 ) 34.02 54.48 (20.46 ) Weighted Average 39.04 52.12
(13.08 ) 34.10 54.56 (20.46 ) Weighted Average after Hedging 58.79
69.65 (10.86 ) 57.22 71.72 (14.50 ) Total Production (Mmcfe)
43,977 36,191 7,786 121,251 120,132
1,119
Selected
Operating Performance Statistics:
General & Administrative Expense per Mcfe (1) $ 0.38 $ 0.47 $
(0.09 ) $ 0.46 $ 0.42 $ 0.04 Lease Operating and Transportation
Expense per Mcfe (1)(2) $ 0.88 $ 1.09 $ (0.21 ) $ 0.95 $ 1.06 $
(0.11 ) Depreciation, Depletion & Amortization per Mcfe (1) $
0.71 $ 1.55 $ (0.84 ) $ 0.93 $ 1.61 $ (0.68 )
(1)
Refer to page 16 for the General and Administrative Expense,
Lease Operating Expense and Depreciation, Depletion, and
Amortization Expense for the Exploration and Production segment.
(2)
Amounts include transportation expense of $0.53 and $0.50 per Mcfe
for the three months ended June 30, 2016 and June 30, 2015,
respectively. Amounts include transportation expense of $0.52 and
$0.52 per Mcfe for the nine months ended June 30, 2016 and June 30,
2015, respectively.
NATIONAL FUEL GAS COMPANY AND
SUBSIDIARIES
EXPLORATION AND
PRODUCTION INFORMATION
Hedging Summary for the Remaining Three Months of Fiscal
2016
Volume
Average Hedge
Price
Oil Swaps Brent 51,000 BBL $ 94.06 / BBL NYMEX 432,000 BBL $ 73.82
/ BBL
Total 483,000 BBL $ 75.96 /
BBL Gas Swaps NYMEX 9,930,000 MMBTU $ 3.96 / MMBTU
Dominion Transmission Appalachian (DOM) 4,260,000 MMBTU $ 3.77 /
MMBTU Michigan Consolidated City Gate (Mich Con) 3,000,000 MMBTU $
4.10 / MMBTU Dawn Ontario (DAWN) 4,080,000 MMBTU $ 3.82 / MMBTU
Fixed Price Physical Sales 14,224,001 MMBTU $ 2.40 / MMBTU
Total 35,494,001 MMBTU $ 3.31 /
MMBTU Hedging Summary for Fiscal 2017
Volume
Average Hedge
Price
Oil Swaps Brent 123,000 BBL $ 92.27 / BBL NYMEX 885,000 BBL $ 64.17
/ BBL
Total 1,008,000 BBL $ 67.60 /
BBL Gas Swaps NYMEX 35,710,000 MMBTU $ 4.29 / MMBTU DOM
6,540,000 MMBTU $ 3.86 / MMBTU Mich Con 3,000,000 MMBTU $ 4.10 /
MMBTU DAWN 19,100,000 MMBTU $ 3.70 / MMBTU Fixed Price Physical
Sales 59,926,010 MMBTU $ 2.43 / MMBTU
Total
124,276,010 MMBTU $ 3.27 / MMBTU
Hedging Summary for Fiscal 2018
Volume
Average Hedge
Price
Oil Swaps Brent 24,000 BBL $ 91.00 / BBL NYMEX 207,000 BBL $ 62.27
/ BBL
Total 231,000 BBL $ 65.25 /
BBL Gas Swaps NYMEX 26,070,000 MMBTU $ 3.49 / MMBTU DAWN
8,400,000 MMBTU $ 3.08 / MMBTU Fixed Price Physical Sales
14,197,001 MMBTU $ 2.56 / MMBTU
Total 48,667,001
MMBTU $ 3.15 / MMBTU Hedging Summary
for Fiscal 2019
Volume
Average Hedge
Price
Gas Swaps NYMEX 25,560,000 MMBTU $ 3.18 / MMBTU DAWN 7,200,000
MMBTU $ 3.00 / MMBTU Fixed Price Physical Sales 5,955,000 MMBTU $
3.18 / MMBTU
Total 38,715,000 MMBTU $
3.14 / MMBTU Hedging Summary for Fiscal 2020
Volume
Average Hedge
Price
Gas Swaps NYMEX 16,880,000 MMBTU $ 3.07 / MMBTU DAWN 7,200,000
MMBTU $ 3.00 / MMBTU Fixed Price Physical Sales 3,005,000 MMBTU $
3.25 / MMBTU
Total 27,085,000 MMBTU $
3.07 / MMBTU Hedging Summary for Fiscal 2021
Volume
Average Hedge
Price
Gas Swaps NYMEX 4,840,000 MMBTU $ 3.01 / MMBTU DAWN 600,000 MMBTU $
3.00 / MMBTU
Total 5,440,000 MMBTU $
3.01 / MMBTU
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
EXPLORATION AND
PRODUCTION INFORMATION
Gross Wells in
Process of Drilling
Nine Months Ended
June 30, 2016
Total East West
Company Wells in Process - Beginning of
Period Exploratory 4.000 (1) 0.000 4.000 Developmental 96.000
(1) 0.000 96.000
Wells Commenced Exploratory 1.000 0.000
1.000 Developmental 43.000 25.000 68.000
Wells Completed
Exploratory 1.000 0.000 1.000 Developmental 42.000 25.000 67.000
Wells Plugged & Abandoned Exploratory 0.000 0.000 0.000
Developmental 1.000 0.000 1.000
Wells in Process - End of
Period Exploratory 4.000 0.000 4.000 Developmental 96.000 0.000
96.000
(1)
Gross exploratory wells were increased by 4 and
developmental wells were decreased by 4.
Net Wells in
Process of Drilling
Nine Months Ended
June 30, 2016
Total East West
Company Wells in Process - Beginning of
Period Exploratory 4.000 (1) 0.000 4.000 Developmental 81.500
(1) 0.000 81.500
Wells Commenced Exploratory 1.000 0.000
1.000 Developmental 43.000 25.000 68.000
Wells Completed
Exploratory 1.000 0.000 1.000 Developmental 28.400 25.000 53.400
Wells Plugged & Abandoned Exploratory 0.000 0.000 0.000
Developmental 1.000 0.000 1.000
Well Interest Sold (2)
Exploratory 0.000 0.000 0.000 Developmental 13.600 0.000 13.600
Wells in Process - End of Period Exploratory 4.000 0.000
4.000 Developmental 81.500 (2) 0.000 81.500
(1)
Net exploratory wells were increased by 4 and developmental
wells were decreased by 4. (2) Seneca's East Division sold an 80%
working interest in 17 of the existing developmental wells in
process to IOG during the nine months ended June 30, 2016.
NATIONAL
FUEL GAS COMPANY AND SUBSIDIARIES
Pipeline & Storage Throughput - (millions of cubic feet -
MMcf) Three Months Ended Nine Months Ended June 30, June
30, Increase Increase 2016 2015 (Decrease) 2016 2015 (Decrease)
Firm Transportation - Affiliated 19,836 15,441 4,395 87,169 95,304
(8,135 ) Firm Transportation - Non-Affiliated 153,543 140,378
13,165 470,991 477,149 (6,158 ) Interruptible Transportation 6,354
3,105 3,249 18,469 8,833 9,636
179,733 158,924 20,809 576,629
581,286 (4,657 )
Gathering Volume - (MMcf)
Three Months Ended Nine Months Ended June 30, June 30, Increase
Increase 2016 2015 (Decrease) 2016 2015 (Decrease) Gathered Volume
- Affiliated 46,360 30,648 15,712 119,355
106,695 12,660
Utility
Throughput - (MMcf) Three Months Ended Nine Months Ended June
30, June 30, Increase Increase 2016 2015 (Decrease) 2016 2015
(Decrease) Retail Sales: Residential Sales 9,196 8,287 909 46,814
56,315 (9,501 ) Commercial Sales 1,251 1,142 109 6,765 8,239 (1,474
) Industrial Sales 401 34 367 635 316
319 10,848 9,463 1,385 54,214 64,870 (10,656 )
Off-System Sales — — — 1,243 3,787 (2,544 ) Transportation 13,864
13,993 (129 ) 58,778 68,509 (9,731 )
24,712 23,456 1,256 114,235 137,166
(22,931 )
Energy Marketing Volume Three Months
Ended Nine Months Ended June 30, June 30, Increase Increase 2016
2015 (Decrease) 2016 2015 (Decrease) Natural Gas (MMcf) 8,537
8,289 248 33,800 40,215 (6,415 )
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 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 Operating Results as reported GAAP earnings
before items impacting comparability. The table at page 1 of this
report reconciles National Fuel's reported GAAP earnings to
Operating Results for the three and nine months ended June 30, 2016
and 2015.
Management defines Adjusted EBITDA as reported GAAP earnings
before the following items: interest expense, depreciation,
depletion and amortization, interest and other income, impairments,
items impacting comparability and income taxes.
The following tables reconcile National Fuel's reported GAAP
earnings to Adjusted EBITDA for the three and nine months ended
June 30, 2016 and 2015:
Three Months Ended Nine
Months Ended June 30, June 30, 2016 2015 2016 2015 (in thousands)
Reported GAAP Earnings $ 8,286 $ (293,134 ) $ (328,510 ) $
(191,724 ) Depreciation, Depletion and Amortization 58,802 79,865
193,300 265,298 Interest and Other Income (2,083 ) (2,393 ) (9,813
) (6,269 ) Interest Expense 30,218 23,220 92,201 70,282 Income
Taxes 8,740 (216,907 ) (251,641 ) (156,610 ) Impairment of Oil and
Gas Producing
Properties
82,658 588,712 915,552 709,060 Joint Development Agreement
Professional
Fees
3,173 — 7,855 —
Adjusted EBITDA
$ 189,794 $ 179,363 $ 618,944 $ 690,037
Adjusted EBITDA by Segment Pipeline and Storage
Adjusted EBITDA $ 48,515 $ 44,437 $ 152,929 $ 147,745 Gathering
Adjusted EBITDA 22,433 14,527 57,722 52,455
Total Midstream Businesses Adjusted EBITDA 70,948 58,964
210,651 200,200 Exploration and Production Adjusted EBITDA 97,924
93,662 268,673 324,707 Utility Adjusted EBITDA 22,900 27,059
138,284 160,723 Energy Marketing Adjusted EBITDA (930 ) 2,327 6,569
12,413 Corporate and All Other Adjusted EBITDA (1,048 ) (2,649 )
(5,233 ) (8,006 )
Total Adjusted EBITDA $ 189,794 $
179,363 $ 618,944 $ 690,037
NATIONAL FUEL GAS COMPANY AND
SUBSIDIARIES NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA Three Months Ended Nine
Months Ended June 30, June 30, (in thousands) 2016 2015 2016
2015
Exploration and
Production Segment
Reported GAAP Earnings $ (19,165 ) $ (323,113 ) $ (469,586 ) $
(349,955 ) Depreciation, Depletion and Amortization 31,279 56,038
112,586 193,540 Interest and Other Income (88 ) (720 ) (781 )
(1,893 ) Interest Expense 13,753 11,190 41,882 32,551 Income Taxes
(13,686 ) (238,445 ) (338,835 ) (258,596 ) Impairment of Oil and
Gas Producing Properties 82,658 588,712 915,552 709,060 Joint
Development Agreement Professional Fees 3,173 — 7,855
— Adjusted EBITDA $ 97,924 $ 93,662 $
268,673 $ 324,707
Pipeline and
Storage Segment
Reported GAAP Earnings $ 17,323 $ 17,714 $ 59,794 $ 61,868
Depreciation, Depletion and Amortization 11,023 9,639 32,144 28,452
Interest and Other Income (894 ) (1,142 ) (3,178 ) (2,238 )
Interest Expense 8,528 6,581 25,017 19,913 Income Taxes 12,535
11,645 39,152 39,750 Adjusted EBITDA $
48,515 $ 44,437 $ 152,929 $ 147,745
Gathering
Segment
Reported GAAP Earnings $ 9,473 $ 6,226 $ 21,962 $ 24,254
Depreciation, Depletion and Amortization 3,608 2,166 11,407 8,025
Interest and Other Income (89 ) (36 ) (191 ) (97 ) Interest Expense
1,794 (216 ) 6,781 214 Income Taxes 7,647 6,387
17,763 20,059 Adjusted EBITDA $ 22,433 $
14,527 $ 57,722 $ 52,455
Utility
Segment
Reported GAAP Earnings $ 2,179 $ 5,727 $ 52,745 $ 66,558
Depreciation, Depletion and Amortization 12,234 11,498 35,511
33,981 Interest and Other Income (460 ) (626 ) (2,070 ) (1,646 )
Interest Expense 7,192 6,997 21,684 21,145 Income Taxes 1,755
3,463 30,414 40,685 Adjusted EBITDA $
22,900 $ 27,059 $ 138,284 $ 160,723
Energy Marketing
Segment
Reported GAAP Earnings $ (590 ) $ 1,533 $ 4,117 $ 7,732
Depreciation, Depletion and Amortization 70 50 208 151 Interest and
Other Income (165 ) (88 ) (330 ) (236 ) Interest Expense 11 5 37 20
Income Taxes (256 ) 827 2,537 4,746 Adjusted
EBITDA $ (930 ) $ 2,327 $ 6,569 $ 12,413
Corporate and All
Other
Reported GAAP Earnings $ (934 ) $ (1,221 ) $ 2,458 $ (2,181 )
Depreciation, Depletion and Amortization 588 474 1,444 1,149
Interest and Other Income (387 ) 219 (3,263 ) (159 ) Interest
Expense (1,060 ) (1,337 ) (3,200 ) (3,561 ) Income Taxes 745
(784 ) (2,672 ) (3,254 ) Adjusted EBITDA $ (1,048 ) $ (2,649 ) $
(5,233 ) $ (8,006 )
NATIONAL
FUEL GAS COMPANY AND SUBSIDIARIES
Quarter Ended
June 30 (unaudited)
2016 2015 Operating Revenues $ 335,617,000 $
339,815,000 Net Income (Loss) Available for Common
Stock $ 8,286,000 $ (293,134,000 ) Earnings (Loss)
Per Common Share: Basic $ 0.10 $ (3.47 ) Diluted $ 0.10
$ (3.44 ) Weighted Average Common Shares: Used in
Basic Calculation 84,917,664 84,453,602 Used in
Diluted Calculation 85,470,216 85,248,281
Nine Months Ended
June 30 (unaudited)
Operating Revenues $ 1,159,943,000 $ 1,459,851,000
Net Income (Loss) Available for Common Stock $
(328,510,000 ) $ (191,724,000 ) Earnings (Loss) Per Common
Share: Basic $ (3.87 ) $ (2.27 ) Diluted $ (3.87 ) $ (2.25 )
Weighted Average Common Shares: Used in Basic Calculation
84,791,447 84,326,182 Used in Diluted Calculation
84,791,447 85,237,514
Twelve Months
Ended June 30 (unaudited)
Operating Revenues $ 1,461,005,000 $ 1,826,474,000
Net Income (Loss) Available for Common Stock $
(516,213,000 ) $ (134,294,000 ) Earnings (Loss) Per Common
Share: Basic $ (6.09 ) $ (1.59 ) Diluted $ (6.09 ) $ (1.58 )
Weighted Average Common Shares: Used in Basic Calculation
84,735,887 84,275,859 Used in Diluted Calculation
84,735,887 85,195,855
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160804006523/en/
National Fuel Gas CompanyAnalyst:Brian M.
Welsch, 716-857-7875orMedia:Karen L. Merkel,
716-857-7654
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