National Fuel Gas Company (NFG) Q1 2026 earnings summary

Executive summary

• Adjusted EPS for Q1 FY2026 was $2.06, up 14%–24% year-over-year, driven by strong integrated upstream and gathering performance, higher natural gas prices, and regulated utility earnings from rate case outcomes and modernization investments.

• Net income for the quarter was $181.6 million, up from $45.0 million, with operating revenues rising to $651.5 million from $549.5 million year-over-year.

• The pending $2.62 billion CenterPoint Ohio acquisition is expected to double the utility rate base and expand operations, with closing anticipated in Q4 2026; $350 million in equity was issued to fund the deal.

• Operational excellence and capital efficiency remain key focuses, with significant production growth, cost improvements, and expanded core inventory in the Tioga Utica program.

• Integrated model supports >10% consolidated 3-year adjusted EPS CAGR projected for FY24–27.

Financial highlights

• Q1 FY2026 adjusted EPS was $2.06, up from $1.66 in Q1 FY2025; adjusted EBITDA rose 29% year-over-year to $400.2 million.

• Net production reached 109 Bcf, up 12% from Q1 FY2025, with lower capital spending.

• Fiscal 2026 adjusted EPS guidance reaffirmed at $7.60–$8.10, midpoint $7.85; production guidance is 440–455 Bcf.

• Consolidated assets totaled $9.21 billion at December 31, 2025.

• Dividend increased 4% in 2025, marking 55 consecutive years of increases.

Outlook and guidance

• Full-year adjusted EPS guidance reaffirmed at $7.60–$8.10, assuming $3.75 NYMEX pricing; 70% of remaining FY2026 production is hedged.

• Capital expenditures for FY26 guided at $955M–$1.07B, with $560M–$610M for upstream & gathering, $210M–$250M for pipeline & storage, and $185M–$205M for utility.

• Net debt to EBITDA expected to approach 1.75x by FY2026 end; post-acquisition target is 2.5–3x.

• Fiscal 2026 adjusted EPS projected to grow 14% year-over-year, with further growth expected in 2027.

• CenterPoint Ohio acquisition is not expected to impact fiscal 2026 guidance.