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Jun 30
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.
National Fuel
National Fuel
National Fuel Revenue by Segment
Revenue by Segment
Exploration and Production Revenue
CapyFin.comPipeline and Storage Revenue
CapyFin.comGathering Revenue
CapyFin.comUtility Revenue
CapyFin.com 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.
- The company is unable to provide GAAP earnings guidance for fiscal 2025 due to the unknown effect, timing, and potential significance of certain income statement items.
- The preliminary fiscal 2026 guidance is based on various NYMEX price assumptions, indicating sensitivity to commodity price fluctuations.
- Capital expenditures for Pipeline and Storage are expected to increase significantly in fiscal 2026, potentially impacting short-term cash flow.
- The company paused share repurchases during the quarter to evaluate growth opportunities, which might be seen as a temporary reduction in direct shareholder returns.