NFG · National Fuel Gas Company

National Fuel Gas Company provided a comprehensive update via an investor presentation for the second quarter of fiscal 2026. The most significant strategic development is the pending acquisition of CenterPoint Energy's Ohio gas utility business for $2.62 billion. This transaction represents a material expansion of the company's regulated footprint, effectively doubling its rate base with an estimated 2026E rate base of $1.6 billion for the target assets. The acquisition is anticipated to close in the fourth quarter of calendar 2026, subject to regulatory approval by the Public Utilities Commission of Ohio (PUCO), where a notice filing has already been submitted and the Hart-Scott-Rodino waiting period has expired. Management emphasized that the acquisition is accretive to long-term earnings per share and supports future dividend growth, aligning with the company's history of 55 consecutive years of dividend increases.

To finance the transaction while maintaining its investment-grade credit rating, the company issued $350 million in common equity through a private placement with accredited, long-only investors. Management targets a pro forma leverage profile of 2.5–3.0x Debt/EBITDA and FFO/Net Debt greater than 30% by the end of the fiscal year following the closing. Operationally, the company highlighted the strength of its integrated model, with regulated segments driving earnings growth through rate case outcomes and modernization investments, while the upstream segment benefited from a 38% increase in NYMEX pricing year-over-year. The company reiterated its guidance for a consolidated adjusted EPS CAGR of greater than 10% for the three-year period ending fiscal 2027.