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Jun 30, 2025
National Fuel Q3 2025 Earnings Report
National Fuel's Q3 2025 earnings were reported, showing a significant increase in GAAP and adjusted EPS, driven by strong performance in exploration and production, and growth in regulated segments.
Key Takeaways
National Fuel Gas Company reported strong third-quarter fiscal 2025 results, with GAAP earnings per share increasing to $1.64 from a net loss of $0.59 in the prior year. Adjusted earnings per share also saw a substantial rise of 66% to $1.64. This performance was primarily fueled by record natural gas production and higher realized prices in the Exploration and Production segment, alongside earnings uplift from recent ratemaking activities and organic investments in the regulated Utility and Pipeline & Storage segments.
GAAP earnings per share significantly improved to $1.64 from a net loss of $0.59 in the prior year's third quarter.
Adjusted earnings per share increased by 66% to $1.64, compared to $0.99 in the prior year.
The Exploration and Production segment achieved a record 112 Bcf of natural gas production, a 16% increase year-over-year, driven by strong well performance and lower per unit operating costs.
The Company generated $196 million in net cash provided by operating activities less net cash used in investing activities during the quarter, demonstrating strong liquidity.
Revenue by Segment
Forward Guidance
National Fuel is revising its fiscal 2025 adjusted earnings per share guidance to a range of $6.80 to $6.95 and initiating preliminary fiscal 2026 earnings guidance, expecting significant growth.
Positive Outlook
- Fiscal 2026 adjusted earnings per share is expected to increase by 20% from fiscal 2025, based on a NYMEX price of $4.00.
- Seneca's capital expenditures are projected to decrease by $20 million (4% at midpoint) in fiscal 2026, while production is expected to increase to 440-455 Bcf (6% at midpoint).
- Regulated segment earnings are expected to increase due to ongoing modernization investments and recent ratemaking efforts, including the New York rate settlement and Pennsylvania modernization tracker.
- Combined Utility and Pipeline & Storage segment capital expenditures are expected to increase by $110 million from fiscal 2025 at midpoint, supporting meaningful rate base growth.
- The company anticipates mid-single-digit production growth in the coming years, supported by strong well results in the Eastern Development Area.
Challenges Ahead
- The revised fiscal 2025 guidance incorporates lower expected realized natural gas prices for the remaining three months.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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