Commentary on this conference call may contain forward-looking statements within the meaning of the federal securities laws. National Fuel Gas Company (the “Company”) is providing this cautionary statement to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, the Company.

Forward-looking statements include, without limitation, statements regarding future prospects, plans, objectives, goals, projections, estimates of oil and gas quantities, strategies, future events or performance and underlying assumptions, capital structure, anticipated capital expenditures, completion of construction projects, projections for pension and other post-retirement benefit obligations, impacts of the adoption of new accounting rules, and possible outcomes of litigation or regulatory proceedings, as well as statements that are identified by the use of the words "anticipates," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects," "believes," "seeks," "will," "may" and similar expressions. All forward-looking statements, whether written or oral and whether made by or on behalf of the Company, are expressly qualified by these cautionary statements. Forward-looking statements involve risks and uncertainties which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements.

The Company's expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that management's expectations, beliefs or projections will result or be achieved or accomplished.

In addition to other factors, the following are important factors that, in the view of the Company, could cause actual results to differ materially from those discussed in the forward-looking statements:

  1. Delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators;
  2. Governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal;
  3. Changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing;
  4. Financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions;
  5. Changes in the price of natural gas or oil;
  6. Impairments under the SEC’s full cost ceiling test for natural gas and oil reserves;
  7. Factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations;
  8. Increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits;
  9. Changes in price differentials between similar quantities of natural gas or oil at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations;
  10. Other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date;
  11. The cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company;
  12. Uncertainty of oil and gas reserve estimates;
  13. Significant differences between the Company’s projected and actual production levels for natural gas or oil;
  14. Changes in demographic patterns and weather conditions;
  15. Changes in the availability, price or accounting treatment of derivative financial instruments;
  16. Changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities;
  17. Changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services;
  18. The creditworthiness or performance of the Company’s key suppliers, customers and counterparties;
  19. The impact of potential information technology, cybersecurity or data security breaches;
  20. Economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war;
  21. Significant differences between the Company’s projected and actual capital expenditures and operating expenses; or Increasing costs of insurance, changes in coverage and the ability to obtain insurance.

Any forward-looking statements contained in this conference call speak only as of the date of this call. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date of this conference call. Investors are urged to consider closely the disclosure in our Form 10-K and Forms 10-Q, available at www.investor.nationalfuelgas.com. You can also obtain these forms on the SEC’s website at www.sec.gov.

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press-release-details
Press release details

National Fuel Reports Fourth Quarter and Full Year Fiscal 2018 Earnings

11/01/2018

WILLIAMSVILLE, N.Y., Nov. 01, 2018 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the three months and fiscal year ended September 30, 2018.

FISCAL 2018 FOURTH QUARTER SUMMARY

  • GAAP earnings of $38.0 million, or $0.44 per share, compared to $45.6 million, or $0.53 per share, in the prior year
  • Adjusted operating results of $42.2 million, or $0.49 per share (see reconciliation below)
  • Consolidated Adjusted EBITDA of $143.8 million compared to $142.8 million in the prior year (non-GAAP reconciliation on page 25)
  • Net production of 47.3 Bcfe, an increase of 17% from the prior year
  • Average natural gas prices, after the impact of hedging, of $2.45 per Mcf, down $0.46 per Mcf from the prior year
  • Average oil prices, after the impact of hedging, of $57.71 per Bbl, up $2.94 per Bbl from the prior year
  • Gathering segment operating income of $19.2 million, up 12% on higher system throughput

FISCAL 2018 HIGHLIGHTS

  • GAAP earnings of $391.5 million, or $4.53 per share, compared to $283.5 million, or $3.30 per share, in the prior year
  • Adjusted operating results of $288.8 million, or $3.34 per share (see reconciliation below)
  • Net cash provided by operating activities exceeded net cash used in investing activities by $84.7 million
  • Net production of 178.1 Bcfe, an increase of 3% over fiscal 2017 and the highest output in Company history
  • Proved reserves at September 30, 2018, of 2.5 Tcfe, an increase of 17% from September 30, 2017
  • Increased shareholder dividend for the 48th consecutive year to an annualized distribution of $1.70 per share
                 
    Three Months Ended   Fiscal Year Ended
    September 30,   September 30,
(in thousands except per share amounts)   2018   2017   2018   2017
Reported GAAP Earnings   $ 37,994     $ 45,577     $ 391,521     $ 283,482  
Items impacting comparability                
Remeasurement of deferred income taxes
under 2017 Tax Reform
  3,516         (103,484 )    
Premium paid on early redemption of debt (E&P)   962         962      
Tax impact on premium paid on early redemption of debt   (235 )       (235 )    
Adjusted Operating Results   $ 42,237     $ 45,577     $ 288,764     $ 283,482  
                 
Reported GAAP Earnings per share   $ 0.44     $ 0.53     $ 4.53     $ 3.30  
Items impacting comparability                
Remeasurement of deferred income taxes
under 2017 Tax Reform
  0.04         (1.20 )    
Premium paid on early redemption of debt, net of tax   0.01         0.01      
Adjusted Operating Results per share   $ 0.49     $ 0.53     $ 3.34     $ 3.30  
                                 

MANAGEMENT COMMENTS

Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel concluded another successful fiscal year with strong results.  Over the course of the year, we were busy setting Company records for Seneca’s Appalachian proved natural gas reserves and production, along with a record high level of throughput in our Gathering segment.  We continued our investments dedicated to the modernization and safety of our interstate and utility pipeline systems, and maintained our strong record of customer service and reliability.  Lower taxes from tax legislation enacted late last year helped to offset the decline in realized pricing on Seneca’s production, and the benefits of lower taxes in our Utility segment are being passed along to our utility customers.  In what appears to be a ‘new normal’ period of lower natural gas prices, we nonetheless generated positive free cash flow for the third consecutive year - a testament to the quality of our assets and our focus on cost control and achieving operational efficiencies.

“Already a month into our 2019 fiscal year, we are well positioned to build on our success.  Recently commissioned capacity on the Atlantic Sunrise project provides us with an avenue to further develop our acreage in Lycoming County, Pa., one of the most prolific positions in Appalachia.  We will continue to transition to development of the Utica shale in the Western Development Area to enhance consolidated upstream and midstream returns and take advantage of improving pricing in the basin, all the while minimizing the environmental footprint of our operations as we utilize existing infrastructure.  Combined with the stability of the rate-regulated businesses, we expect to responsibly grow the Company in a manner that strengthens our financial position and maximizes the value of our assets for our shareholders for years to come.”

FISCAL 2019 GUIDANCE

National Fuel is revising the preliminary guidance for fiscal 2019 that was announced in conjunction with the Company’s third quarter earnings release.  The Company is now projecting that earnings will be within the range of $3.35 to $3.65 per share, or $3.50 per share at the midpoint of the range, which represents a $0.16 per share increase from fiscal 2018’s adjusted operating results.  The $0.05 per share increase from the preliminary guidance is primarily due to higher expected price realizations on Seneca’s production and lower projected operating expenses at the Utility and Pipeline and Storage segments.

Seneca’s net production is expected to be in the range of 210 to 230 Bcfe, unchanged from the preliminary guidance, and a 24 percent increase over fiscal 2018 at the midpoint of the range.  The increase in Seneca’s production is also expected to generate higher throughput and revenues for the Company’s Gathering segment. At the midpoint of the guidance range, Gathering segment revenues are forecasted to increase by approximately $27 million, or 25 percent, to $135 million for fiscal 2019. Under current development plans in Appalachia, the Company expects to grow its production and gathering throughput at a 15 to 20 percent compound annual growth rate through fiscal 2022.

In addition to higher earnings expectations, the Company’s consolidated capital expenditures in fiscal 2019 are expected to be lower than disclosed in last quarter’s preliminary guidance due to reductions at the Exploration and Production and Pipeline and Storage segments.  The new range is expected to be $725 million to $810 million, at the midpoint a $167 million increase from the Company’s fiscal 2018 capital expenditures. The primary driver of the year over year increase is Seneca’s development activity in Appalachia, where the Company plans to operate three drilling rigs for the entirety of the fiscal year.  Despite the increase in Seneca’s spending, the capital budget for the Gathering segment is expected to be relatively flat year over year as Seneca shifts its Utica development into areas in the WDA where gathering infrastructure already exists and is currently being utilized to move Marcellus production.

Seneca currently has physical firm sales contracts in place with third parties that provide fixed pricing basis protection on 177 Bcf, or more than 85 percent, of its projected fiscal 2019 natural gas production.  A majority of these sales, nearly 150 Bcf, are also matched with a financial hedge that locks in revenues on that production at a weighted average realized price of $2.43 per Mcf, net of firm transportation costs.  With price certainty on a majority of its natural gas production, strong margins on California oil production, growing Gathering segment revenues, and stable earnings from the Company’s rate-regulated Pipeline and Storage and Utility segments, the Company expects that substantially all of its fiscal 2019 capital expenditures will be funded by internally generated cash flows.

Additional details on the Company's forecast assumptions and business segment guidance for fiscal 2019 are outlined in the table on page 8.

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of the earnings of each operating segment is summarized in a tabular form on pages 9 through 12 of this report.  It may be helpful to refer to those tables while reviewing this discussion.  Note that management defines Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, interest and other income, impairments, and other items reflected in operating income that impact comparability.

Upstream Business

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC ("Seneca").  Seneca explores for, develops and produces natural gas and oil reserves, primarily in Pennsylvania and California.

       
  Three Months Ended   Fiscal Year Ended
  September 30,   September 30,
(in thousands except per share amounts) 2018   2017   Variance   2018   2017   Variance
Net Income $ 19,580     $ 30,354     $ (10,774 )   $ 180,632     $ 129,326     $ 51,306  
Net Income Per Share (Diluted) $ 0.23     $ 0.35     $ (0.12 )   $ 2.09     $ 1.50     $ 0.59  
Adjusted EBITDA $ 80,555     $ 75,303     $ 5,252     $ 315,753     $ 360,979     $ (45,226 )
                                               

The Exploration and Production segment’s fourth quarter earnings declined $10.8 million, as the positive impacts of higher natural gas production, better realized crude oil prices, and lower lease operating and transportation (“LOE”) and other operating expenses were more than offset by the negative impacts of lower realized natural gas prices, higher depreciation, depletion and amortization (“DD&A”) expense and a higher effective income tax rate.

Seneca’s fourth quarter net production was 47.3 billion cubic feet equivalent (“Bcfe”), an increase of 7.0 Bcfe from the prior year.  Natural gas production increased 7.4 billion cubic feet (“Bcf”), or 20 percent, due primarily to production from new Marcellus and Utica wells completed and connected to sales in the EDA-Lycoming and WDA-Clermont development areas as a result of increased drilling activity.  Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.45 per thousand cubic feet ("Mcf"), a decrease of $0.46 per Mcf from the prior year.  The decline in Seneca’s average realized natural gas price is primarily attributable to the expiration of physical firm sales and financial hedge contracts over the past 12 months that had favorable pricing relative to firm sales and hedges settled in the current quarter.

Seneca’s oil production for the fourth quarter decreased 77 thousand barrels ("Mbbl") in the fourth quarter due largely to the impact of the sale of Seneca’s Sespe properties in California in the third quarter of fiscal 2018.  Sespe generated 67 Mbbl of production for the Company in the prior year’s fourth quarter.  Seneca's average realized oil price, after the impact of hedging, was $57.71 per barrel ("Bbl"), an increase of $2.94 per Bbl over the prior year.  The improvement in oil price realizations was due primarily to higher market prices for West Texas Intermediate (WTI) crude oil during the quarter and stronger price differentials relative to WTI at local sales points in California.

LOE expense for the fourth quarter decreased $1.5 million due mostly to lower operating costs in California following the sale of Seneca’s Sespe properties combined with lower workover and steam fuel costs across its other California properties.  These decreases were partially offset by higher gathering expenses in Appalachia due to the increase in natural gas production.  On a per unit of production basis, LOE expense was $0.88 per thousand cubic feet equivalent (“Mcfe”), a decrease of $0.19 per Mcfe from the prior year.  Other operating expenses decreased $2.4 million due mainly to a one-time payment made in the prior year to reimburse a third-party pipeline operator for development costs.

DD&A expense for the fourth quarter increased $6.4 million due to the increase in production and a higher per unit depletion rate.  The depletion rate for the quarter increased by $0.04 per Mcfe to $0.71 per Mcfe due mainly to a higher depletable fixed asset balance at September 30, 2018, as Seneca has increased development activity in Appalachia over the past year.

Income tax expense increased $9.0 million versus the prior year due largely to the combined impact of deferred state income tax adjustments recorded in the current and the prior year.  The anticipated increase in Seneca’s development activity under a three-rig program in Appalachia resulted in a reapportionment of projected Pennsylvania state income taxes and increased the effective tax rate used to calculate the segment’s deferred state income tax liability at September 30, 2018.  Coupled with a $7.9 million positive adjustment recorded in the prior year, which was related to the expected state income tax benefits of Seneca’s capacity on the Atlantic Sunrise project, the current year $2.3 million adjustment negatively impacted income tax expense by $10.2 million versus the prior year.  Additionally, the Company recorded an adjustment in the current quarter relating to the remeasurement of Seneca’s deferred income taxes due to the enactment of the 2017 Tax Reform Act.  This $2.8 million adjustment reduced the initial estimated benefit recorded in the first quarter of fiscal 2018 and increased income tax expense for the quarter. These negative impacts to the segment’s effective tax rate were partially offset by a decrease in the federal statutory rate as a result of the 2017 Tax Reform Act.

Year End Proved Reserves

Seneca’s total proved natural gas and crude oil reserves at September 30, 2018 increased 369 Bcfe, or 17 percent, to 2,523 Bcfe from 2,154 Bcfe at September 30, 2017.  In fiscal 2018, Seneca recorded 536 Bcfe of proved reserve extensions and discoveries, primarily from Utica and Marcellus locations in Appalachia, and 108 Bcfe of net positive revisions due largely to improvements in well performance.  Seneca sold 57 Bcfe of Marcellus proved reserves in connection with the conveyance of the last joint development pad in the WDA, and another 39 Bcfe of proved reserves (73 percent oil) with the sale of the Sespe properties in California.  Seneca’s total proved undeveloped reserves (“PUDs”) at the end of fiscal 2018 were 757 Bcfe, only 30 percent of total proved reserves.

Adjusting for sales, Seneca replaced 361 percent of its production in fiscal 2018, up from the 225 percent reserve replacement achieved in fiscal 2017.  The year over year improvement was due mainly to the success of Seneca’s Utica Shale appraisal program in the WDA and increased development activity in the EDA-Lycoming area.  Seneca’s three-year average finding and development cost at the end of fiscal 2018 was $0.74 per Mcfe, down $0.24 per Mcfe from the three-year average of $0.98 per Mcfe at the end of fiscal 2017.

Midstream Businesses

Pipeline and Storage Segment

The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”).  The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.

       
  Three Months Ended   Fiscal Year Ended
  September 30,   September 30,
(in thousands except per share amounts) 2018   2017   Variance   2018   2017   Variance
Net Income $ 15,337     $ 13,791     $ 1,546     $ 97,246     $ 68,446     $ 28,800  
Net Income Per Share (Diluted) $ 0.18     $ 0.16     $ 0.02     $ 1.13     $ 0.80     $ 0.33  
Adjusted EBITDA $ 38,052     $ 39,049     $ (997 )   $ 185,393     $ 180,328     $ 5,065  
                                               

The Pipeline and Storage segment’s fourth quarter earnings increased $1.5 million due primarily to higher operating revenues, and a lower effective income tax rate, offset partially by higher operating expenses.  Operating revenues increased $2.6 million, or 4 percent, versus the prior year due to new demand charges for transportation service on Supply Corporation’s Line D Expansion project, which was placed in service on November 1, 2017, an increase in storage revenues resulting from Supply Corporation’s acquisition of the remaining interest in a jointly owned storage field during the quarter, additional revenues from short-term transportation contracts, and surcharge revenues relating to Supply Corporation’s greenhouse gas and pipeline safety system enhancements that also went into effect in November 2017.

Operation and Maintenance (“O&M”) expense increased $2.8 million over the prior year due primarily to an increase in compressor and facility maintenance activity during the quarter, offset partially by lower pension and other post-retirement benefit expenses.  The combined $1.1 million increase in DD&A expense and property, franchise and other taxes was due to projects and new facilities placed in-service over the past year.  Income tax expense decreased $2.3 million due primarily to the 2017 Tax Reform Act, which reduced the Company’s federal statutory corporate tax rate.

Gathering Segment

The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region which currently delivers Seneca’s gross Appalachian production to the interstate pipeline system.

       
  Three Months Ended   Fiscal Year Ended
  September 30,   September 30,
(in thousands except per share amounts) 2018   2017   Variance   2018   2017   Variance
Net Income $ 14,783     $ 9,003     $ 5,780     $ 83,519     $ 40,377     $ 43,142  
Net Income Per Share (Diluted) $ 0.17     $ 0.10     $ 0.07     $ 0.97     $ 0.47     $ 0.50  
Adjusted EBITDA $ 23,732     $ 21,206     $ 2,526     $ 91,609     $ 94,380     $ (2,771 )
                                               

The $5.8 million increase in the Gathering segment’s fourth quarter earnings was due mainly to higher revenues and a lower effective income tax rate, offset partially by an increase in operating expenses.  Operating revenues increased $3.5 million, or 14 percent, due primarily to a 7.5 Bcf increase in throughput from Seneca’s Appalachian natural gas production. The Trout Run gathering system saw a 5.0 Bcf increase in throughput after Seneca resumed development activities in Lycoming County, Pa., in late fiscal 2017 and avoided price-related curtailments for much of fiscal 2018. Throughput on the Covington and Clermont gathering systems increased 2.2 Bcf and 1.1 Bcf, respectively.

O&M expense increased $0.8 million due largely to the operation of new compression facilities along the Covington gathering system, which were acquired from affiliate Seneca in March 2018, and an increase in facilities and maintenance activity at the Trout Run gathering system.  The decrease in the effective income tax rate was due primarily to the 2017 Tax Reform Act, which reduced the Company’s federal statutory corporate tax rate, and lower state income taxes resulting from tax planning and restructuring activities that were implemented during the quarter.

Downstream Businesses

Utility Segment

The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.

       
  Three Months Ended   Fiscal Year Ended
  September 30,   September 30,
(in thousands except per share amounts) 2018   2017   Variance   2018   2017   Variance
Net Income / (Loss) $ (7,067 )   $ (4,168 )   $ (2,899 )   $ 51,217     $ 46,935     $ 4,282  
Net Income / (Loss) Per Share (Diluted) $ (0.08 )   $ (0.05 )   $ (0.03 )   $ 0.59     $ 0.55     $ 0.04  
Adjusted EBITDA $ 6,792     $ 11,846     $ (5,054 )   $ 144,155     $ 151,078     $ (6,923 )
                                               

The $2.9 million increase in the Utility segment’s fourth quarter net loss was due primarily to lower margin (operating revenues less purchased gas costs) and higher O&M expense, offset partially by lower property taxes and interest expense.  The decrease in the Utility’s fourth quarter margin was largely due to a change in the allocation of a cost tracking mechanism for the low income customer program in the Company’s New York service territory.   O&M expense increased $2.1 million due primarily to higher payroll costs and bad debt expense, offset partially by lower pension and other post-retirement benefit expenses.

Energy Marketing Segment

The Energy Marketing segment's operations are carried out by National Fuel Resources, Inc. (“NFR”).  NFR markets natural gas to industrial, wholesale, commercial, public authority, and residential customers primarily in western and central New York and northwestern Pennsylvania, offering competitively priced natural gas to its customers.

       
  Three Months Ended   Fiscal Year Ended
  September 30,   September 30,
(in thousands except per share amounts) 2018   2017   Variance   2018   2017   Variance
Net Income / (Loss) $ (1,061 )   $ (614 )   $ (447 )   $ 373     $ 1,509     $ (1,136 )
Net Income / (Loss) Per Share (Diluted) $ (0.01 )   $ (0.01 )   $     $     $ 0.02     $ (0.02 )
Adjusted EBITDA $ (1,652 )   $ (1,134 )   $ (518 )   $ 536     $ 2,080     $ (1,544 )

The Energy Marketing segment’s fourth quarter net loss of $1.1 million increased $0.4 million over the prior year due largely to lower margins (operating revenues less purchased gas costs).  NFR’s customer margins were negatively impacted by stronger natural gas prices at local purchase points relative to NYMEX-based customer sales contracts.

Corporate and All Other

For the fourth quarter of fiscal 2018, the Corporate and All Other category had a net loss of $3.6 million, a $0.8 million increase over the $2.8 million net loss in the prior year.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, November 2, 2018, at 11 a.m. Eastern Time to discuss this announcement.  There are two ways to access this call.  For those with Internet access, visit the NFG Investor Relations News & Events page at National Fuel’s website at investor.nationalfuelgas.com.  For those without Internet access, audio access is also provided by dialing (toll-free) 833-287-0795, using conference ID number “5899309.”  For those unable to listen to the live conference call, an audio replay will be available approximately two hours following the teleconference at the same website link and by phone at (toll-free) 800-585-8367 using conference ID number “5899309.”  Both the webcast and a telephonic replay will be available until the close of business on Friday, November 9, 2018.

National Fuel is an integrated energy company reporting financial results for five operating segments: Exploration and Production, Pipeline and Storage, Gathering, Utility, and Energy Marketing.  Additional information about National Fuel is available at www.nationalfuelgas.com

Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in the price of natural gas or oil; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; changes in price differentials between similar quantities of natural gas or oil sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; the impact of potential information technology, cybersecurity or data security breaches; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

 

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

GUIDANCE SUMMARY

As discussed on page 2, the Company is revising its earnings, capital expenditure and operational guidance for fiscal 2019.  Additional details on the Company's forecast assumptions and business segment guidance for fiscal 2019 are outlined in the table below.

The revised fiscal 2019 earnings guidance does not include any impact to the remeasurement of deferred income taxes resulting from the 2017 Tax Reform Act.  While it is possible that the Company will record additional adjustments to its deferred income taxes as a result of the 2017 Tax Reform Act during the first three months of fiscal 2019, the amounts of these and other potential adjustments are not reasonably determinable at this time.  The final determination of the impact of the income tax effects of certain items will require further interpretation of the 2017 Tax Reform Act from yet to be issued U.S. Treasury regulations, state income tax guidance, federal and state regulatory guidance, and possible technical corrections.  Some or all of these factors may be significant.

  Updated FY 2019 Guidance   Previous FY 2019 Guidance
Consolidated Earnings per Share $3.35 to $3.65   $3.30 to $3.60
       
Consolidated Effective Tax Rate ~25%   ~25%
       
Capital Expenditures (Millions)      
Exploration and Production $460 - $495   $460 - $500
Pipeline and Storage $120 - $150   $140 - $180
Gathering $55 - $65   $55 - $65
Utility $90 - $100   $90 - $100
Consolidated Capital Expenditures $725 - $810   $745 - $845
       
Exploration & Production Segment Guidance      
       
Commodity Price Assumptions      
NYMEX natural gas price (winter | summer) $3.00 /MMBtu | $2.65 /MMBtu   $2.75 /MMBtu
Appalachian basin spot price (winter | summer) $2.50 /MMBtu | $2.00 /MMBtu   $2.40 /MMBtu | $2.00 /MMBtu
NYMEX (WTI) crude oil price $70.00 /Bbl   $65.00 /Bbl
California oil price (% of WTI) 100%   100%
       
Production (Bcfe)      
East Division - Appalachia 194 to 214   193 to 213
West Division - California ~ 16   ~ 17
Total Production 210 to 230   210 to 230
       
E&P Operating Costs ($/Mcfe)      
LOE $0.85 - $0.90   $0.85 - $0.90
G&A $0.25 - $0.35   $0.25 - $0.35
DD&A $0.70 - $0.75   $0.70 - $0.75
       
Other Business Segment Guidance (Millions)      
Gathering Segment Revenues $130 - $140   $130 - $140
Pipeline and Storage Segment Revenues ~$285   ~$285

 

                           
                           
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED SEPTEMBER 30, 2018
(Unaudited)
                           
                           
  Upstream   Midstream
Businesses
  Downstream
Businesses
       
                           
  Exploration &   Pipeline &           Energy   Corporate /    
(Thousands of Dollars) Production   Storage   Gathering   Utility   Marketing   All Other   Consolidated*
                           
Fourth quarter 2017 GAAP earnings $ 30,354     $ 13,791     $ 9,003     $ (4,168 )   $ (614 )   $ (2,789 )   $ 45,577  
                           
Earnings drivers**                          
Higher (lower) crude oil prices 1,143                         1,143  
Higher (lower) natural gas prices (13,299 )                       (13,299 )
Higher (lower) natural gas production 14,058                         14,058  
Higher (lower) crude oil production (2,752 )                       (2,752 )
Derivative mark to market adjustments 451                         451  
Lower (higher) lease operating and transportation expenses 954                         954  
Lower (higher) depreciation / depletion (4,130 )   (387 )   (260 )               (4,777 )
                           
Higher (lower) transportation and storage revenues     1,487                     1,487  
Higher (lower) gathering and processing revenues         2,267                 2,267  
Lower (higher) other operating expenses 1,980     (1,841 )   (528 )   (1,334 )           (1,723 )
Lower (higher) property, franchise and other taxes 340     (328 )                   12  
                           
Regulatory true-up adjustments             (1,746 )           (1,746 )
                           
Higher (lower) margins                 (379 )       (379 )
                           
Lower (higher) interest expense 70     374         358             802  
Loss on reacquired debt (626 )                       (626 )
                           
Lower (higher) income tax expense / effective tax rate 112     (966 )   610     (92 )   (38 )   1,842     1,468  
Deferred state income tax adjustment (10,193 )                       (10,193 )
Impact of tax restructuring         2,346                 2,346  
                           
Impact of 2017 Tax Reform Act                          
Impact of tax rate change on current period earnings 3,297     2,998     1,474     320     (105 )   (1,344 )   6,640  
Refund provision on tax rate change             (559 )           (559 )
Remeasurement of deferred income taxes under 2017 Tax Reform (2,804 )       (12 )       (39 )   (661 )   (3,516 )
                           
All other / rounding 625     209     (117 )   154     114     (626 )   359  
Fourth quarter 2018 GAAP earnings $ 19,580     $ 15,337     $ 14,783     $ (7,067 )   $ (1,061 )   $ (3,578 )   $ 37,994  
                           
* Amounts do not reflect intercompany eliminations
** Earnings drivers have been calculated using a 35% federal statutory rate. The impact of the change to a blended year 24.5% federal statutory rate is broken out separately under the caption "Impact of 2017 Tax Reform Act."

 

                             
                             
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED SEPTEMBER 30, 2018
(Unaudited)
                             
                             
    Upstream   Midstream
Businesses
  Downstream
Businesses
       
                             
    Exploration &   Pipeline &           Energy   Corporate /    
    Production   Storage   Gathering   Utility   Marketing   All Other   Consolidated*
                             
Fourth quarter 2017 GAAP earnings   $ 0.35     $ 0.16     $ 0.10     $ (0.05 )   $ (0.01 )   $ (0.02 )   $ 0.53  
                             
Earnings drivers**                            
Higher (lower) crude oil prices   0.01                         0.01  
Higher (lower) natural gas prices   (0.15 )                       (0.15 )
Higher (lower) natural gas production   0.16                         0.16  
Higher (lower) crude oil production   (0.03 )                       (0.03 )
Derivative mark to market adjustments   0.01                         0.01  
Lower (higher) lease operating and transportation expenses   0.01                         0.01  
Lower (higher) depreciation / depletion   (0.05 )                       (0.05 )
                             
Higher (lower) transportation and storage revenues       0.02                     0.02  
Higher (lower) gathering and processing revenues           0.03                 0.03  
Lower (higher) other operating expenses   0.02     (0.02 )   (0.01 )   (0.02 )           (0.03 )
Lower (higher) property, franchise and other taxes                            
                             
Regulatory true-up adjustments               (0.02 )           (0.02 )
                             
Higher (lower) margins                            
                             
Lower (higher) interest expense                            
Loss on reacquired debt   (0.01 )                       (0.01 )
                             
Lower (higher) income tax expense / effective tax rate       (0.01 )   0.01             0.02     0.02  
Deferred state income tax adjustment   (0.12 )                       (0.12 )
Impact of tax restructuring           0.03                 0.03  
                             
Impact of 2017 Tax Reform Act                            
Impact of tax rate change on current period earnings   0.04     0.03     0.02             (0.02 )   0.07  
Refund provision on tax rate change               (0.01 )           (0.01 )
Remeasurement of deferred income taxes under 2017 Tax Reform   (0.03 )                   (0.01 )   (0.04 )
                             
All other / rounding   0.02         (0.01 )   0.02         (0.02 )   0.01  
Fourth quarter 2018 GAAP earnings   $ 0.23     $ 0.18     $ 0.17     $ (0.08 )   $ (0.01 )   $ (0.05 )   $ 0.44  
                             
* Amounts do not reflect intercompany eliminations
** Earnings drivers have been calculated using a 35% federal statutory rate. The impact of the change to a blended year 24.5% federal statutory rate is broken out separately under the caption "Impact of 2017 Tax Reform Act."

 

                           
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
TWELVE MONTHS ENDED SEPTEMBER 30, 2018
(Unaudited)
                           
  Upstream   Midstream
Businesses
  Downstream
Businesses
       
                           
  Exploration &   Pipeline &           Energy   Corporate /    
(Thousands of Dollars) Production   Storage   Gathering   Utility   Marketing   All Other   Consolidated*
                           
Fiscal 2017 GAAP earnings $ 129,326     $ 68,446     $ 40,377     $ 46,935     $ 1,509     $ (3,111 )   $ 283,482  
                           
Earnings drivers**                          
Higher (lower) crude oil prices 7,892                         7,892  
Higher (lower) natural gas prices (45,115 )                       (45,115 )
Higher (lower) natural gas production 11,146                         11,146  
Higher (lower) crude oil production (7,181 )                       (7,181 )
Lower (higher) lease operating and transportation expenses 2,126                         2,126  
Lower (higher) depreciation / depletion (7,610 )   (1,474 )   (748 )           (631 )   (10,463 )
                           
Higher (lower) transportation and storage revenues     3,612                     3,612  
Lower (higher) other operating expenses 345     442     (1,827 )   (1,839 )   275         (2,604 )
Lower (higher) property, franchise and other taxes 667     (765 )       729             631  
                           
Impact of new rates             2,789             2,789  
Colder weather             5,199             5,199  
Regulatory true-up adjustments             (3,903 )           (3,903 )
                           
Higher (lower) margins                 (1,281 )   1,578     297  
                           
Lower (higher) interest expense 244     1,518         1,130             2,892  
Loss on reacquired debt (626 )                       (626 )
                           
Lower (higher) income tax expense / effective tax rate 2,434     (703 )   1,015     (34 )   41     (502 )   2,251  
Deferred state income tax adjustment (8,065 )                       (8,065 )
Impact of tax restructuring         2,346                 2,346  
                           
Impact of 2017 Tax Reform Act                          
Impact of tax rate change on current period earnings 20,117     11,724     8,042     7,752     128     (703 )   47,060  
Refund provision on tax rate change             (8,240 )           (8,240 )
Remeasurement of deferred income taxes under 2017 Tax Reform 73,706     14,100     34,488         (398 )   (18,412 )   103,484  
                           
All other / rounding 1,226     346     (174 )   699     99     315     2,511  
Fiscal 2018 GAAP earnings $ 180,632     $ 97,246     $ 83,519     $ 51,217     $ 373     $ (21,466 )   $ 391,521  
                           
* Amounts do not reflect intercompany eliminations
** Earnings drivers have been calculated using a 35% federal statutory rate. The impact of the change to a blended year 24.5% federal statutory rate is broken out separately under the caption "Impact of 2017 Tax Reform Act."

 

                             
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
TWELVE MONTHS ENDED SEPTEMBER 30, 2018
(Unaudited)
                             
    Upstream   Midstream
Businesses
  Downstream
Businesses
       
                             
    Exploration &   Pipeline &           Energy   Corporate /    
    Production   Storage   Gathering   Utility   Marketing   All Other   Consolidated*
                             
Fiscal 2017 GAAP earnings   $ 1.50     $ 0.80     $ 0.47     $ 0.55     $ 0.02     $ (0.04 )   $ 3.30  
                             
Earnings drivers**                            
Higher (lower) crude oil prices   0.09                         0.09  
Higher (lower) natural gas prices   (0.52 )                       (0.52 )
Higher (lower) natural gas production   0.13                         0.13  
Higher (lower) crude oil production   (0.08 )                       (0.08 )
Lower (higher) lease operating and transportation expenses   0.02                         0.02  
Lower (higher) depreciation / depletion   (0.09 )   (0.02 )   (0.01 )           (0.01 )   (0.13 )
                             
Higher (lower) transportation and storage revenues       0.04                     0.04  
Lower (higher) other operating expenses       0.01     (0.02 )   (0.02 )           (0.03 )
Lower (higher) property, franchise and other taxes   0.01     (0.01 )       0.01             0.01  
                             
Impact of new rates               0.03             0.03  
Colder weather               0.06             0.06  
Regulatory true-up adjustments               (0.05 )           (0.05 )
                             
Higher (lower) margins                   (0.01 )   0.02     0.01  
                             
Lower (higher) interest expense       0.02         0.01             0.03  
Loss on reacquired debt   (0.01 )                       (0.01 )
                             
Lower (higher) income tax expense / effective tax rate   0.03     (0.01 )   0.01             (0.01 )   0.02  
Deferred state income tax adjustment   (0.09 )                       (0.09 )
Impact of tax restructuring           0.03                 0.03  
                             
Impact of 2017 Tax Reform Act                            
Impact of tax rate change on current period earnings   0.23     0.14     0.09     0.09         (0.01 )   0.54  
Refund provision on tax rate change               (0.10 )           (0.10 )
Remeasurement of deferred income taxes under 2017 Tax Reform   0.85     0.16     0.40             (0.21 )   1.20  
                             
All other / rounding   0.02             0.01     (0.01 )   0.01     0.03  
Fiscal 2018 GAAP earnings   $ 2.09     $ 1.13     $ 0.97     $ 0.59     $     $ (0.25 )   $ 4.53  
                             
* Amounts do not reflect intercompany eliminations
** Earnings drivers have been calculated using a 35% federal statutory rate. The impact of the change to a blended year 24.5% federal statutory rate is broken out separately under the caption "Impact of 2017 Tax Reform Act."

 

               
               
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
               
(Thousands of Dollars, except per share amounts)              
  Three Months Ended   Twelve Months Ended
  September 30,   September 30,
  (Unaudited)   (Unaudited)
SUMMARY OF OPERATIONS 2018   2017   2018   2017
Operating Revenues:              
Utility and Energy Marketing Revenues $ 93,240     $ 92,456     $ 812,474     $ 755,485  
Exploration and Production and Other Revenues 143,998     144,049     569,808     617,666  
Pipeline and Storage and Gathering Revenues 51,958     50,432     210,386     206,730  
  289,196     286,937     1,592,668     1,579,881  
Operating Expenses:              
Purchased Gas 14,968     10,905     337,822     275,254  
Operation and Maintenance:              
Utility and Energy Marketing 42,383     40,497     200,780     199,293  
Exploration and Production and Other 35,114     42,946     141,381     145,099  
Pipeline and Storage and Gathering 32,796     29,184     100,245     98,200  
Property, Franchise and Other Taxes 20,148     20,627     84,393     84,995  
Depreciation, Depletion and Amortization 63,159     55,383     240,961     224,195  
  208,568     199,542     1,105,582     1,027,036  
               
Operating Income 80,628     87,395     487,086     552,845  
               
Other Income (Expense):              
Interest Income 1,859     1,269     6,766     4,113  
Other Income 1,206     2,316     4,697     7,043  
Interest Expense on Long-Term Debt (28,534 )   (29,230 )   (110,946 )   (116,471 )
Other Interest Expense (834 )   (686 )   (3,576 )   (3,366 )
               
Income Before Income Taxes 54,325     61,064     384,027     444,164  
               
Income Tax Expense (Benefit) 16,331     15,487     (7,494 )   160,682  
               
Net Income Available for Common Stock $ 37,994     $ 45,577     $ 391,521     $ 283,482  
               
Earnings Per Common Share              
Basic $ 0.44     $ 0.53     $ 4.56     $ 3.32  
Diluted $ 0.44     $ 0.53     $ 4.53     $ 3.30  
               
Weighted Average Common Shares:              
Used in Basic Calculation 85,953,204   85,512,637   85,830,597   85,364,929
Used in Diluted Calculation 86,650,677   86,238,287   86,439,698   86,021,386

 

 
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
   
    September 30,     September 30,
(Thousands of Dollars)   2018     2017
       
ASSETS      
Property, Plant and Equipment $ 10,439,839     $ 9,945,560  
Less - Accumulated Depreciation, Depletion and Amortization   5,462,696       5,271,486  
Net Property, Plant and Equipment   4,977,143       4,674,074  
       
Current Assets:      
Cash and Temporary Cash Investments   229,606       555,530  
Hedging Collateral Deposits   3,441       1,741  
Receivables - Net   141,498       112,383  
Unbilled Revenue   24,182       22,883  
Gas Stored Underground   37,813       35,689  
Materials and Supplies - at average cost   35,823       33,926  
Unrecovered Purchased Gas Costs   4,204       4,623  
Other Current Assets   68,024       51,505  
Total Current Assets   544,591       818,280  
       
Other Assets:      
Recoverable Future Taxes   115,460       181,363  
Unamortized Debt Expense   15,975       1,159  
Other Regulatory Assets   112,918       174,433  
Deferred Charges   40,025       30,047  
Other Investments   132,545       125,265  
Goodwill   5,476       5,476  
Prepaid Post-Retirement Benefit Costs   82,733       56,370  
Fair Value of Derivative Financial Instruments   9,518       36,111  
Other   102       742  
Total Other Assets   514,752       610,966  
Total Assets $ 6,036,486     $ 6,103,320  
       
CAPITALIZATION AND LIABILITIES      
Capitalization:      
Comprehensive Shareholders' Equity      
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and      
Outstanding - 85,956,814 Shares and 85,543,125 Shares, Respectively $ 85,957     $ 85,543  
Paid in Capital   820,223       796,646  
Earnings Reinvested in the Business   1,098,900       851,669  
Accumulated Other Comprehensive Loss   (67,750 )     (30,123 )
Total Comprehensive Shareholders' Equity   1,937,330       1,703,735  
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs   2,131,365       2,083,681  
Total Capitalization   4,068,695       3,787,416  
       
Current and Accrued Liabilities:      
Notes Payable to Banks and Commercial Paper          
Current Portion of Long-Term Debt         300,000  
Accounts Payable   160,031       126,443  
Amounts Payable to Customers   3,394        
Dividends Payable   36,532       35,500  
Interest Payable on Long-Term Debt   19,062       35,031  
Customer Advances   13,609       15,701  
Customer Security Deposits   25,703       20,372  
Other Accruals and Current Liabilities   132,693       111,889  
Fair Value of Derivative Financial Instruments   49,036       1,103  
Total Current and Accrued Liabilities   440,060       646,039  
       
Deferred Credits:      
Deferred Income Taxes   512,686       891,287  
Taxes Refundable to Customers   370,628       95,739  
Cost of Removal Regulatory Liability   212,311       204,630  
Other Regulatory Liabilities   146,743       113,716  
Pension and Other Post-Retirement Liabilities   66,103       149,079  
Asset Retirement Obligations   108,235       106,395  
Other Deferred Credits   111,025       109,019  
Total Deferred Credits   1,527,731       1,669,865  
Commitments and Contingencies          
Total Capitalization and Liabilities $ 6,036,486     $ 6,103,320  

 

         
         
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
    Twelve Months Ended
    September 30,
(Thousands of Dollars)   2018   2017
         
Operating Activities:        
Net Income Available for Common Stock   $ 391,521     $ 283,482  
Adjustments to Reconcile Net Income to Net Cash
 Provided by Operating Activities:
       
Depreciation, Depletion and Amortization   240,961     224,195  
Deferred Income Taxes   (18,153 )   117,975  
Stock-Based Compensation   15,762     12,262  
Other   16,133     16,476  
Change in:        
Hedging Collateral Deposits   (1,700 )   (257 )
Receivables and Unbilled Revenue   (30,882 )   (3,380 )
Gas Stored Underground and Materials and Supplies   (4,021 )   (1,417 )
Unrecovered Purchased Gas Costs   419     (2,183 )
Other Current Assets   (16,519 )   7,849  
Accounts Payable   17,962     17,192  
Amounts Payable to Customers   3,394     (19,537 )
Customer Advances   (2,092 )   939  
Customer Security Deposits   5,331     4,353  
Other Accruals and Current Liabilities   3,865     27,004  
Other Assets   (9,556 )   (2,885 )
Other Liabilities   1,178     2,183  
Net Cash Provided by Operating Activities   $ 613,603     $ 684,251  
         
Investing Activities:        
Capital Expenditures   $ (584,004 )   $ (450,335 )
Net Proceeds from Sale of Oil and Gas Producing Properties   55,506     26,554  
Other   (389 )   1,216  
Net Cash Used in Investing Activities   $ (528,887 )   $ (422,565 )
         
Financing Activities:        
Reduction of Long-Term Debt   $ (566,512 )   $  
Dividends Paid on Common Stock   (143,258 )   (139,063 )
Net Proceeds From Issuance of Long-Term Debt   295,020     295,151  
Net Proceeds From Issuance of Common Stock   4,110     7,784  
Net Cash (Used in) Provided by Financing Activities   $ (410,640 )   $ 163,872  
         
Net Increase (Decrease) in Cash and Temporary Cash Investments   (325,924 )   425,558  
Cash and Temporary Cash Investments at Beginning of Period   555,530     129,972  
Cash and Temporary Cash Investments at September 30   $ 229,606     $ 555,530  

 

                   
                   
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                   
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                   
UPSTREAM BUSINESS
                   
                   
  Three Months Ended   Twelve Months Ended
(Thousands of Dollars, except per share amounts) September 30,   September 30,
EXPLORATION AND PRODUCTION SEGMENT 2018   2017   Variance   2018 2017 Variance
Total Operating Revenues $ 143,167     $ 142,952     $ 215     $ 564,547   $ 614,599   $ (50,052 )
                   
Operating Expenses:                  
Operation and Maintenance:                  
General and Administrative Expense 14,420     15,060     (640 )   60,596   58,734   1,862  
Lease Operating and Transportation Expense 41,642     43,110     (1,468 )   162,721   165,991   (3,270 )
All Other Operation and Maintenance Expense 2,895     5,301     (2,406 )   11,077   13,469   (2,392 )
Property, Franchise and Other Taxes 3,655     4,178     (523 )   14,400   15,426   (1,026 )
Depreciation, Depletion and Amortization 33,567     27,212     6,355     124,274   112,565   11,709  
  96,179     94,861     1,318     373,068   366,185   6,883  
                   
Operating Income 46,988     48,091   (1,103 )   191,479   248,414 (56,935 )
                   
Other Income (Expense):                  
Interest Income 392     257     135     1,479   707   772  
Interest Expense on Long-Term Debt (962 )       (962 )   (962 )   (962 )
Other Interest Expense (13,326 )   (13,432 )   106     (53,326 ) (53,702 ) 376  
                   
Income Before Income Taxes 33,092     34,916     (1,824 )   138,670   195,419   (56,749 )
Income Tax Expense (Benefit) 13,512     4,562     8,950     (41,962 ) 66,093   (108,055 )
Net Income $ 19,580     $ 30,354     $ (10,774 )   $ 180,632   $ 129,326   $ 51,306  
                   
Net Income Per Share (Diluted) $ 0.23     $ 0.35     $ (0.12 )   $ 2.09   $ 1.50   $ 0.59  
                   

 

                   
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                   
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                   
MIDSTREAM BUSINESSES
                   
                   
  Three Months Ended   Twelve Months Ended
(Thousands of Dollars, except per share amounts) September 30,   September 30,
PIPELINE AND STORAGE SEGMENT 2018   2017   Variance   2018 2017 Variance
Revenues from External Customers $ 51,958     $ 50,403     $ 1,555     $ 210,345   $ 206,615   $ 3,730  
Intersegment Revenues 22,457     21,421     1,036     89,981   87,810   2,171  
Total Operating Revenues 74,415     71,824     2,591     300,326   294,425   5,901  
                   
Operating Expenses:                  
Purchased Gas 341     90     251     607   271   336  
Operation and Maintenance 28,452     25,618     2,834     85,456   86,135   (679 )
Property, Franchise and Other Taxes 7,570     7,067     503     28,870   27,691   1,179  
Depreciation, Depletion and Amortization 11,141     10,545     596     43,463   41,196   2,267  
  47,504     43,320     4,184     158,396   155,293   3,103  
                   
Operating Income 26,911     28,504     (1,593 )   141,930   139,132   2,798  
                   
Other Income (Expense):                  
Interest Income 897     483     414     2,748   1,467   1,281  
Other Income 423     568     (145 )   1,757   2,511   (754 )
Interest Expense (7,965 )   (8,540 )   575     (31,383 ) (33,717 ) 2,334  
                   
Income Before Income Taxes 20,266     21,015     (749 )   115,052   109,393   5,659  
Income Tax Expense 4,929     7,224     (2,295 )   17,806   40,947   (23,141 )
Net Income $ 15,337     $ 13,791     $ 1,546     $ 97,246   $ 68,446   $ 28,800  
                   
Net Income Per Share (Diluted) $ 0.18     $ 0.16     $ 0.02     $ 1.13   $ 0.80   $ 0.33  
                   
                   
  Three Months Ended   Twelve Months Ended
  September 30,   September 30,
GATHERING SEGMENT 2018   2017   Variance   2018 2017 Variance
Revenues from External Customers $     $ 29     $ (29 )   $ 41   $ 115   $ (74 )
Intersegment Revenues 28,452     24,937     3,515     107,856   107,566   290  
Total Operating Revenues 28,452     24,966     3,486     107,897   107,681   216  
                   
Operating Expenses:                  
Operation and Maintenance 4,697     3,884     813     16,190   13,380   2,810  
Property, Franchise and Other Taxes 23     (124 )   147     98   (79 ) 177  
Depreciation, Depletion and Amortization 4,554     4,154     400     17,313   16,162   1,151  
  9,274     7,914     1,360     33,601   29,463   4,138  
                   
Operating Income 19,178     17,052     2,126     74,296   78,218   (3,922 )
                   
Other Income (Expense):                  
Interest Income 130     353     (223 )   1,106   994   112  
Other Income               1   (1 )
Interest Expense (2,211 )   (2,403 )   192     (9,560 ) (9,142 ) (418 )
                   
Income Before Income Taxes 17,097     15,002     2,095     65,842   70,071   (4,229 )
Income Tax Expense (Benefit) 2,314     5,999     (3,685 )   (17,677 ) 29,694   (47,371 )
Net Income $ 14,783     $ 9,003     $ 5,780     $ 83,519   $ 40,377   $ 43,142  
                   
Net Income Per Share (Diluted) $ 0.17     $ 0.10     $ 0.07     $ 0.97   $ 0.47   $ 0.50  
                   

 

                   
                   
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                   
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                   
DOWNSTREAM BUSINESSES
                   
                   
  Three Months Ended   Twelve Months Ended
(Thousands of Dollars, except per share amounts) September 30,   September 30,
UTILITY SEGMENT 2018   2017   Variance   2018 2017 Variance
Revenues from External Customers $ 75,231     $ 76,080     $ (849 )   $ 674,726   $ 626,899   $ 47,827  
Intersegment Revenues 1,399     1,758     (359 )   12,800   13,072   (272 )
Total Operating Revenues 76,630     77,838     (1,208 )   687,526   639,971   47,555  
                   
Operating Expenses:                  
Purchased Gas 19,683     17,321     2,362     306,130   252,802   53,328  
Operation and Maintenance 41,520     39,448     2,072     197,257   195,231   2,026  
Property, Franchise and Other Taxes 8,635     9,223     (588 )   39,984   40,860   (876 )
Depreciation, Depletion and Amortization 13,272     13,080     192     53,253   52,582   671  
  83,110     79,072     4,038     596,624   541,475   55,149  
                   
Operating Income (Loss) (6,480 )   (1,234 )   (5,246 )   90,902   98,496   (7,594 )
                   
Other Income (Expense):                  
Interest Income 468     633     (165 )   1,591   1,051   540  
Other Income 237     197     40     735   774   (39 )
Interest Expense (6,487 )   (7,037 )   550     (26,753 ) (28,492 ) 1,739  
                   
Income (Loss) Before Income Taxes (12,262 )   (7,441 )   (4,821 )   66,475   71,829   (5,354 )
Income Tax Expense (Benefit) (5,195 )   (3,273 )   (1,922 )   15,258   24,894   (9,636 )
Net Income (Loss) $ (7,067 )   $ (4,168 )   $ (2,899 )   $ 51,217   $ 46,935   $ 4,282  
                   
Net Income (Loss) Per Share (Diluted) $ (0.08 )   $ (0.05 )   $ (0.03 )   $ 0.59   $ 0.55   $ 0.04  
                   
                   
  Three Months Ended   Twelve Months Ended
  September 30,   September 30,
ENERGY MARKETING SEGMENT 2018   2017   Variance   2018 2017 Variance
Revenues from External Customers $ 18,009     $ 16,376     $ 1,633     $ 137,748   $ 128,586   $ 9,162  
Intersegment Revenues 237     194     43     826   794   32  
Total Operating Revenues 18,246     16,570     1,676     138,574   129,380   9,194  
                   
Operating Expenses:                  
Purchased Gas 18,242     15,982     2,260     131,481   120,317   11,164  
Operation and Maintenance 1,653     1,717     (64 )   6,554   6,978   (424 )
Property, Franchise and Other Taxes 3     5     (2 )   3   5   (2 )
Depreciation, Depletion and Amortization 69     69         275   279   (4 )
  19,967     17,773     2,194     138,313   127,579   10,734  
                   
Operating Income (Loss) (1,721 )   (1,203 )   (518 )   261   1,801   (1,540 )
                   
Other Income (Expense):                  
Interest Income 189     153     36     685   571   114  
Other Income 29     19     10     81   75   6  
Interest Expense (5 )   (10 )   5     (22 ) (47 ) 25  
                   
Income (Loss) Before Income Taxes (1,508 )   (1,041 )   (467 )   1,005   2,400   (1,395 )
Income Tax Expense (Benefit) (447 )   (427 )   (20 )   632   891   (259 )
Net Income (Loss) $ (1,061 )   $ (614 )   $ (447 )   $ 373   $ 1,509   $ (1,136 )
                   
Net Income (Loss) Per Share (Diluted) $ (0.01 )   $ (0.01 )   $     $   $ 0.02   $ (0.02 )
                   

 

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                   
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                   
  Three Months Ended   Twelve Months Ended
(Thousands of Dollars, except per share amounts) September 30,   September 30,
ALL OTHER 2018   2017   Variance   2018 2017 Variance
Total Operating Revenues $ 776     $ 862     $ (86 )   $ 4,601   $ 2,173   $ 2,428  
Operating Expenses:                  
Operation and Maintenance 313     374     (61 )   1,419   1,718   (299 )
Property, Franchise and Other Taxes 137     151     (14 )   562   596   (34 )
Depreciation, Depletion and Amortization 367     136     231     1,627   661   966  
  817     661     156     3,608   2,975   633  
                   
Operating Income (Loss) (41 )   201     (242 )   993   (802 ) 1,795  
Other Income (Expense):                  
Interest Income 117     66     51     388   213   175  
                   
Income (Loss) Before Income Taxes 76     267     (191 )   1,381   (589 ) 1,970  
Income Tax Expense (Benefit) (27 )   111     (138 )   1,493   (247 ) 1,740  
Net Income (Loss) $ 103     $ 156     $ (53 )   $ (112 ) $ (342 ) $ 230  
                   
Net Income (Loss) Per Share (Diluted) $     $ 0.01     $ (0.01 )   $   $ (0.01 ) $ 0.01  
                   
                   
  Three Months Ended   Twelve Months Ended
  September 30,   September 30,
CORPORATE 2018   2017   Variance   2018 2017 Variance
Revenues from External Customers $ 55     $ 235     $ (180 )   $ 660   $ 894   $ (234 )
Intersegment Revenues 1,047     895     152     4,045   3,825   220  
Total Operating Revenues 1,102     1,130     (28 )   4,705   4,719   (14 )
Operating Expenses:                  
Operation and Maintenance 4,995     4,832     163     16,248   15,887   361  
Property, Franchise and Other Taxes 125     127     (2 )   476   496   (20 )
Depreciation, Depletion and Amortization 189     187     2     756   750   6  
  5,309     5,146     163     17,480   17,133   347  
                   
Operating Loss (4,207 )   (4,016 )   (191 )   (12,775 ) (12,414 ) (361 )
                   
Other Income (Expense):                  
Interest Income 30,035     31,318     (1,283 )   121,878   125,003   (3,125 )
Other Income 517     1,532     (1,015 )   2,124   3,682   (1,558 )
Interest Expense on Long-Term Debt (27,572 )   (29,230 )   1,658     (109,984 ) (116,471 ) 6,487  
Other Interest Expense (1,209 )   (1,258 )   49     (5,641 ) (4,159 ) (1,482 )
                   
Loss Before Income Taxes (2,436 )   (1,654 )   (782 )   (4,398 ) (4,359 ) (39 )
Income Tax Expense (Benefit) 1,245     1,291     (46 )   16,956   (1,590 ) 18,546  
Net Loss $ (3,681 )   $ (2,945 )   $ (736 )   $ (21,354 ) $ (2,769 ) $ (18,585 )
                   
Net Loss Per Share (Diluted) $ (0.05 )   $ (0.03 )   $ (0.02 )   $ (0.25 ) $ (0.03 ) $ (0.22 )
                   
                   
  Three Months Ended   Twelve Months Ended
  September 30,   September 30,
INTERSEGMENT ELIMINATIONS 2018   2017   Variance   2018 2017 Variance
Intersegment Revenues $ (53,592 )   $ (49,205 )   $ (4,387 )   $ (215,508 ) $ (213,067 ) $ (2,441 )
Operating Expenses:                  
Purchased Gas (23,298 )   (22,488 )   (810 )   (100,396 ) (98,136 ) (2,260 )
Operation and Maintenance (30,294 )   (26,717 )   (3,577 )   (115,112 ) (114,931 ) (181 )
  (53,592 )   (49,205 )   (4,387 )   (215,508 ) (213,067 ) (2,441 )
                   
Operating Income                  
                   
Other Income (Expense):                  
Interest Income (30,369 )   (31,994 )   1,625     (123,109 ) (125,893 ) 2,784  
Interest Expense 30,369     31,994     (1,625 )   123,109   125,893   (2,784 )
Net Income $     $     $     $   $   $  
                   
Net Income Per Share (Diluted) $     $     $     $   $   $  

 

                       
                       
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                       
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
                       
                       
  Three Months Ended   Twelve Months Ended
  September 30,   September 30,
  (Unaudited)   (Unaudited)
          Increase           Increase
  2018   2017   (Decrease)   2018   2017   (Decrease)
                       
Capital Expenditures:                      
Exploration and Production $ 110,801   (1) $ 84,512   (2) $ 26,289     $ 380,677   (1)(2) $ 253,057   (2)(3) $ 127,620  
Pipeline and Storage 39,476   (1) 41,808   (2) (2,332 )   92,832   (1)(2) 95,336   (2)(3) (2,504 )
Gathering 13,961   (1) 8,940   (2) 5,021     61,728   (1)(2) 32,645   (2)(3) 29,083  
Utility 33,621   (1) 24,456   (2) 9,165     85,648   (1)(2) 80,867   (2)(3) 4,781  
Energy Marketing 7     22     (15 )   40     36     4  
Total Reportable Segments 197,866     159,738     38,128     620,925     461,941     158,984  
All Other             1     39     (38 )
Corporate 131     49     82     181     137     44  
Eliminations (583 )   482     (1,065 )   (20,505 )       (20,505 )
Total Capital Expenditures $ 197,414     $ 160,269     $ 37,145     $ 600,602     $ 462,117     $ 138,485  

(1)  Capital expenditures for the quarter and year ended September 30, 2018, include accounts payable and accrued liabilities related to capital expenditures of $51.3 million, $21.9 million, $6.1 million, and $9.5 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively.  These amounts have been excluded from the Consolidated Statement of Cash Flows at September 30, 2018, since they represent non-cash investing activities at that date.

(2)  Capital expenditures for the year ended September 30, 2018, exclude capital expenditures of $36.5 million, $25.1 million, $3.9 million and $6.7 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively.  These amounts were in accounts payable and accrued liabilities at September 30, 2017 and paid during the year ended September 30, 2018.  These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2017, since they represented non-cash investing activities at that date.  These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2018.

(3)  Capital expenditures for the year ended September 30, 2017, exclude capital expenditures of $25.2 million, $18.7 million, $5.3 million and $11.2 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively.  These amounts were in accounts payable and accrued liabilities at September 30, 2016 and paid during the year ended September 30, 2017.  These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2016, since they represented non-cash investing activities at that date.  These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2017.

                   
DEGREE DAYS                  
                   
              Percent Colder
              (Warmer) Than:
Three Months Ended September 30 Normal   2018   2017     Normal (1)   Last Year (1)
                   
Buffalo, NY 162   83   109   (48.8)   (23.9)
Erie, PA 124   47   97   (62.1)   (51.5)
                   
Twelve Months Ended September 30                  
                   
Buffalo, NY 6,617   6,391   5,708   (3.4)   12.0
Erie, PA 6,147   5,976   5,179   (2.8)   15.4
                   

(1)  Percents compare actual 2018 degree days to normal degree days and actual 2018 degree days to actual 2017 degree days.

                         
                         
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                         
EXPLORATION AND PRODUCTION INFORMATION
                         
                         
    Three Months Ended   Twelve Months Ended
    September 30,   September 30,
            Increase           Increase
    2018   2017   (Decrease)   2018   2017   (Decrease)
                         
Gas Production/Prices:                        
Production (MMcf)                        
Appalachia   43,238     35,576     7,662     160,499     154,093     6,406  
West Coast   511     749     (238 )   2,407     2,995     (588 )
Total Production   43,749     36,325     7,424     162,906     157,088     5,818  
                         
Average Prices (Per Mcf)                        
Appalachia   $ 2.34     $ 2.42     $ (0.08 )   $ 2.36     $ 2.52     $ (0.16 )
West Coast   5.73     3.77     1.96     4.86     4.00     0.86  
Weighted Average   2.38     2.44     (0.06 )   2.40     2.55     (0.15 )
Weighted Average after Hedging   2.45     2.91     (0.46 )   2.52     2.95     (0.43 )
                         
Oil Production/Prices:                        
Production (Thousands of Barrels)                        
Appalachia   1     1         4     4      
West Coast   597     674     (77 )   2,531     2,736     (205 )
Total Production   598     675     (77 )   2,535     2,740     (205 )
                         
Average Prices (Per Barrel)                        
Appalachia   $ 66.97     $ 45.71     $ 21.26     $ 57.76     $ 48.27     $ 9.49  
West Coast   71.91     47.44     24.47     66.39     46.14     20.25  
Weighted Average   71.90     47.44     24.46     66.38     46.18     20.20  
Weighted Average after Hedging   57.71     54.77     2.94     58.66     53.87     4.79  
                         
Total Production (Mmcfe)   47,337     40,375     6,962     178,116     173,528     4,588  
                         
Selected Operating Performance Statistics:                        
General & Administrative Expense per Mcfe (1)   $ 0.30     $ 0.37     $ (0.07 )   $ 0.34     $ 0.34     $  
Lease Operating and Transportation Expense per Mcfe (1)(2)   $ 0.88     $ 1.07     $ (0.19 )   $ 0.91     $ 0.96     $ (0.05 )
Depreciation, Depletion & Amortization per Mcfe (1)   $ 0.71     $ 0.67     $ 0.04     $ 0.70     $ 0.65     $ 0.05  
                         

(1)  Refer to page 16 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.

(2)  Amounts include transportation expense of $0.53 per Mcfe and $0.54 per Mcfe for the three months ended September 30, 2018 and September 30, 2017, respectively.  Amounts include transportation expense of $0.54 per Mcfe for both the twelve months ended September 30, 2018 and September 30, 2017.

 
 
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
             
EXPLORATION AND PRODUCTION INFORMATION
 
Hedging Summary for Fiscal 2019   Volume     Average Hedge Price
Oil Swaps            
Brent   744,000   BBL   $ 63.52 / BBL
NYMEX   1,068,000   BBL   $ 53.42 / BBL
Total   1,812,000   BBL   $ 57.57 / BBL
             
Gas Swaps            
NYMEX   80,980,000   MMBTU   $ 2.94 / MMBTU
DAWN   7,200,000   MMBTU   $ 3.00 / MMBTU
Fixed Price Physical Sales   65,483,453   MMBTU   $ 2.68 / MMBTU
Total   153,663,453   MMBTU   $ 2.83 / MMBTU
             
Hedging Summary for Fiscal 2020   Volume     Average Hedge Price
Oil Swaps            
Brent   864,000   BBL   $ 63.51 / BBL
NYMEX   324,000   BBL   $ 50.52 / BBL
Total   1,188,000   BBL   $ 59.96 / BBL
             
Gas Swaps            
NYMEX   18,640,000   MMBTU   $ 3.04 / MMBTU
DAWN   7,200,000   MMBTU   $ 3.00 / MMBTU
Fixed Price Physical Sales   43,024,639   MMBTU   $ 2.31 / MMBTU
Total   68,864,639   MMBTU   $ 2.58 / MMBTU
             
Hedging Summary for Fiscal 2021   Volume     Average Hedge Price
Oil Swaps            
Brent   576,000   BBL   $ 64.48 / BBL
NYMEX   156,000   BBL   $ 51.00 / BBL
Total   732,000   BBL   $ 61.61 / BBL
             
Gas Swaps            
NYMEX   4,840,000   MMBTU   $ 3.01 / MMBTU
DAWN   600,000   MMBTU   $ 3.00 / MMBTU
Fixed Price Physical Sales   41,804,668   MMBTU   $ 2.22 / MMBTU
Total   47,244,668   MMBTU   $ 2.31 / MMBTU
             
Hedging Summary for Fiscal 2022   Volume     Average Hedge Price
Oil Swaps            
Brent   300,000   BBL   $ 60.07 / BBL
NYMEX   156,000   BBL   $ 51.00 / BBL
Total   456,000   BBL   $ 56.97 / BBL
             
Fixed Price Physical Sales   40,783,095   MMBTU   $ 2.23 / MMBTU
             
Hedging Summary for Fiscal 2023   Volume     Average Hedge Price
             
Fixed Price Physical Sales   37,237,873   MMBTU   $ 2.26 / MMBTU
             
Hedging Summary for Fiscal 2024   Volume     Average Hedge Price
             
Fixed Price Physical Sales   20,948,498   MMBTU   $ 2.25 / MMBTU
             
Hedging Summary for Fiscal 2025   Volume     Average Hedge Price
             
Fixed Price Physical Sales   2,293,200   MMBTU   $ 2.18 / MMBTU

 

         
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
         
EXPLORATION AND PRODUCTION INFORMATION
         
Reserve Quantity Information
(Unaudited)
         
         
    Gas MMcf
    U.S.
    Appalachian West Coast Total
    Region Region Company
Proved Developed and Undeveloped Reserves:        
September 30, 2017   1,926,614   46,506   1,973,120  
Extensions and Discoveries   521,694     521,694  
Revisions of Previous Estimates   90,113   3,322   93,435  
Production   (160,499 ) (2,407 ) (162,906 )
Sales of Minerals in Place   (57,420 ) (10,581 ) (68,001 )
September 30, 2018   2,320,502   36,840   2,357,342  
         
Proved Developed Reserves:        
         
September 30, 2017   1,316,596   46,506   1,363,102  
September 30, 2018   1,569,692   36,840   1,606,532  
         
         
    Oil Mbbl
    U.S.
    Appalachian West Coast Total
    Region Region Company
Proved Developed and Undeveloped Reserves:        
September 30, 2017   28   30,179   30,207  
Extensions and Discoveries     2,301   2,301  
Revisions of Previous Estimates   (10 ) 2,487   2,477  
Production   (4 ) (2,531 ) (2,535 )
Sales of Minerals in Place     (4,787 ) (4,787 )
September 30, 2018   14   27,649   27,663  
         
Proved Developed Reserves:        
         
September 30, 2017   28   29,771   29,799  
September 30, 2018   14   26,689   26,703  
         

 

                         
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES