National Fuel Gas Company (NFG) Investor update summary

Separation plan

• Board-approved, intended tax-free pro rata distribution of at least 80.1% of IUG shares; up to 19.9% may be retained initially, with existing shareholders expected to own shares in both businesses.

• Completion targeted for H2 2027, subject to customary conditions, SEC filings and Form 10 effectiveness, financing arrangements, favorable tax treatment and final board approval.

• Independent platforms are intended to sharpen strategic focus and align capital structures and investment profiles while preserving integration benefits and operating synergies.

• David P. Bauer and Timothy J. Silverstein are expected to remain in regulated-business roles; Justin Loweth is set to become IUG CEO.

Regulated platform

• Post-separation, a 100% rate-regulated business across Ohio, New York and Pennsylvania, with ~$5B rate base and ~1.1M utility customers.

• Rate base growth outlook of 5–7%, supported by modernization, safety and reliability investment and contracted FERC expansion projects; Ohio is expected to nearly double annual utility modernization investment from ~$200M.

• Nearly 5 Bcf/d of contracted transportation and 77 Bcf of fully contracted storage; ~0.7 Bcf/d of additional pipeline projects are under contract, including projects expected in service in November 2026 and November 2028.

• Current capital plans indicate no incremental equity needs over five years; after monetizing a retained IUG stake, management expects a credit rating 2–3 notches above the current investment-grade rating.

• Capital returns are expected to align with utility peers; affordability rankings cited for 2025 were #1 among gas utilities in New York and Pennsylvania and #2 in Ohio.

IUG profile and strategy

• Appalachian portfolio includes ~1.2M net acres, ~1.1 Bcf/d net production and 5.0 Tcfe of proved reserves.

• More than 25 years of inventory at breakeven prices below $2.25/MMBtu, based on PV-10 and current drilling pace assumptions of 25–30 wells annually.

• Wholly owned gathering assets transport most production; current firm transportation is ~1.0 Bcf/d and is expected to reach ~1.5 Bcf/d by 2030, providing access to premium-priced markets.

• Capital efficiency improved >25% since 2023, with further improvement expected; wholly owned gathering supports low costs, including ~$0.53/Mcfe cash operating costs.

• IUG is expected to start modestly above 1x leverage, target at or below 1x long term and get below 1x within one or two years after separation; free cash flow is expected to support debt reduction, growth and share repurchases.