National Fuel Gas Company (NFG) investor relations material

Executive summary

• Achieved record production and throughput, with Q3 production up 16% year-over-year and full-year production expected to rise 8% versus fiscal 2024; net income for the quarter ended June 30, 2025 was $149.8 million, a turnaround from a net loss of $54.2 million in the prior year quarter.

• Achieved >10% adjusted EPS growth target for FY24–FY27E, with Q2 FY2025 adjusted operating results up 34% per share year-over-year and FY2025 adjusted EPS guidance raised to $6.75–$7.05.

• Operational improvements, cost reductions, and capital efficiency have strengthened the company's position as a low-cost operator with top-tier breakeven economics.

• Dividend raised for the 55th consecutive year to $2.14 per share; buyback program paused to preserve balance sheet flexibility for growth opportunities.

• Comprehensive income for the nine months was $310.8 million, compared to $305.2 million in the prior year period.

Financial highlights

• Adjusted operating results increased 66% year-over-year, driven by higher natural gas prices, lower per unit costs, and production growth; Q2 FY2025 consolidated operating revenues were $729.95 million, up from $629.94 million in Q2 FY2024.

• FY25 adjusted EPS guidance: $6.80–$6.95 per share, up from $5.01 in FY24; preliminary 2026 EPS guidance at $8.00–$8.50 at $4 NYMEX, a 20% increase.

• Free cash flow for 2026 projected at $350–$400 million at $4 NYMEX, supporting both investment and shareholder returns.

• Over $650 million returned to shareholders in the last 3 years; $200 million share repurchase program initiated in March 2024.

• Net income for the nine months ended June 30, 2025 was $411.2 million, up from $245.1 million year-over-year.

Outlook and guidance

• Fiscal 2026 production guidance set at 440–455 Bcf, a 6% increase at midpoint, with 4% less capital spending; FY2025 production guidance increased to 415–425 Bcf.

• FY26 preliminary adjusted EPS guidance: $6.35–$6.85 at $3.00 NYMEX, with upside to $10.25 at $5.00 NYMEX.

• Anticipates mid-single digit rate base growth and 5–7% annual rate base growth through the decade.

• The company expects to meet its financing needs for the remainder of fiscal 2025 with cash on hand, operations, and borrowings, despite inflationary pressures and volatile interest rates.

• The share repurchase program is expected to extend into calendar 2026, with future repurchases dependent on market and liquidity conditions.