National Fuel Gas Company (NFG) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net income was $216.4 million ($2.37/share), up 32% per share year-over-year, driven by strong performance in Exploration and Production, Utility, and Pipeline & Storage segments, with record natural gas production of 105.5 Bcf and significant contributions from the New York rate settlement.

• For the six months ended March 31, 2025, net income was $261.3 million ($2.86/share), down from $299.3 million ($3.24/share) in the prior year, mainly due to non-cash impairments in Exploration and Production and lower Gathering segment earnings.

• Operating revenues for Q2 FY2025 rose to $729.9 million from $629.9 million year-over-year, with consolidated adjusted EBITDA at $428.5 million, up from $369.6 million.

• The company maintains a 122-year dividend payment streak and 54 years of increases, returning $650 million to shareholders over the last 3 years.

• Continued progress on emissions reduction, surpassing methane intensity targets and maintaining industry-leading sustainability certifications.

Financial highlights

• Adjusted operating results for Q2 FY2025 were $218 million ($2.39/share), up 34% per share year-over-year, with consolidated adjusted EBITDA for the trailing twelve months at $1.26 billion.

• FY2025 adjusted EPS guidance raised to $6.75–$7.05, up $0.15 at midpoint from prior guidance, assuming $3.50 NYMEX; EPS sensitivity ranges from $6.50–$7.35 depending on price.

• Free cash flow generation expected to be significant in fiscal 2025 and beyond, with cash from operations projected to exceed capital expenditures in 2026.

• Net production guidance for FY2025 is 415–425 Bcf.

• Capital expenditures for FY2025 expected at $885–$960 million.

Outlook and guidance

• FY2025 adjusted EPS guidance is $6.75–$7.05, with upside to $7.05–$7.35 at $4.00 NYMEX.

• Regulated business expected to deliver 7–9% CAGR in adjusted operating results through 2027.

• Production guidance increased, reflecting strong well performance and operational execution.

• Hedges for 2026–2027 added at favorable prices, providing downside protection and upside exposure.

• Utility customer margin guidance: $445–$465 million; O&M expense: $240–$245 million.