NFG · National Fuel Gas Company

National Fuel Gas Company reported strong second-quarter fiscal 2026 results, with GAAP net income of $247.7 million ($2.59 per share) compared to $216.4 million ($2.37 per share) in the prior year. Adjusted EPS rose 13% to $2.71, driven primarily by a 17% increase in natural gas price realizations in the Integrated Upstream and Gathering segment, which saw adjusted earnings increase $25.9 million year-over-year. The Utility segment contributed $65 million in net income, up 3%, benefiting from rate agreements in New York and system modernization investments in Pennsylvania. The Pipeline and Storage segment earnings were flat as higher revenues were offset by increased depreciation. Management highlighted operational resilience during Winter Storm Fern and progress on key growth projects: the Tioga Pathway and Shippingport Lateral expansions remain on schedule for late 2026, and Supply Corporation signed a precedent agreement for the Line N System Upgrade. The company revised its fiscal 2026 adjusted EPS guidance to $7.45-$7.75 (midpoint $7.60), reflecting lower NYMEX natural gas price assumptions ($3.00/MMBtu for the remainder of the year) and modest production decreases due to weather and well performance issues. Capital expenditure guidance was unchanged, though higher oil and diesel prices and increased land activity could push spending toward the higher end. The pending Ohio gas utility acquisition from CenterPoint Energy is expected to close in the fourth calendar quarter of 2026 and is not included in fiscal 2026 guidance. Overall, the results demonstrate solid operational execution and a clear path to regulated earnings growth and increasing free cash flow from non-regulated businesses.