Press Release Details

Forward Looking Statement Disclosure

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. 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;
  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. The length and severity of the ongoing COVID-19 pandemic, including its impacts across our businesses on demand, operations, global supply chains and liquidity;
  4. 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;
  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. The creditworthiness or performance of the Company’s key suppliers, customers and counterparties;
  8. 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;
  9. The Company’s ability to estimate accurately the time and resources necessary to meet emissions targets;
  10. Disallowance by applicable regulatory bodies of appropriate rate recovery for system modernization; moves to reduce or eliminate reliance on natural gas;
  11. Delays or changes in costs or plans with respect to Company projects or related projects of other companies, including disruptions due to the COVID-19 pandemic, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators;
  12. The Company's ability to complete planned strategic transactions;
  13. The Company's ability to successfully integrate acquired assets and achieve expected cost synergies;
  14. 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;
  15. The impact of information technology disruptions, cybersecurity or data security breaches;
  16. 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;
  17. Increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; 
  18. Other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date;
  19. The cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company;
  20. Uncertainty of oil and gas reserve estimates;
  21. Significant differences between the Company’s projected and actual production levels for natural gas or oil;
  22. Changes in demographic patterns and weather conditions;
  23. Changes in the availability, price or accounting treatment of derivative financial instruments;
  24. 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;
  25. Economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war;
  26. Significant differences between the Company’s projected and actual capital expenditures and operating expenses; or
  27. Increasing costs of insurance, changes in coverage and the ability to obtain insurance.

Forward-looking statements include estimates of oil and gas quantities. Proved oil and gas reserves are those quantities of oil and gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible under existing economic conditions, operating methods and government regulations. Other estimates of oil and gas quantities, including estimates of probable reserves, possible reserves, and resource potential, are by their nature more speculative than estimates of proved reserves. Accordingly, estimates other than proved reserves are subject to substantially greater risk of being actually realized.

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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National Fuel Reports Second Quarter Earnings

05/06/2021

WILLIAMSVILLE, N.Y., May 06, 2021 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the second quarter of its 2021 fiscal year and for the six months ended March 31, 2021.

FISCAL 2021 SECOND QUARTER SUMMARY

  • GAAP net income of $112.4 million, or $1.23 per share, compared to GAAP net loss of $106.1 million, or $1.23 per share, in the prior year.
  • Adjusted operating results of $123.2 million, or $1.34 per share, compared to $84.2 million, or $0.97 per share, in the prior year (see non-GAAP reconciliation on page 2).
  • Adjusted EBITDA of $298.4 million, an increase of 29%, compared to $231.1 million in the prior year (see non-GAAP reconciliation on page 23).
  • Pipeline & Storage segment Adjusted EBITDA of $58.6 million, an increase of 19% from the prior year.
  • Gathering segment Adjusted EBITDA of $41.4 million, an increase of 40% from the prior year.
  • E&P segment Adjusted EBITDA of $127.1 million, an increase of 59% from the prior year.
  • E&P segment net production of 85.2 Bcfe, an increase of 25.5 Bcfe, or 43%, from the prior year.
  • E&P segment cash operating costs (combined G&A expenses, LOE expense, other operation and maintenance expense, and property, franchise, and other taxes), of $1.09 per Mcfe, a 14% decrease from the prior year.
  • Average realized natural gas prices of $2.28 per Mcf, an increase $0.16 per Mcf from the prior year.
  • Average realized oil prices of $57.11 per Bbl, a decrease of $1.12 per Bbl from the prior year.
  • Utility segment announced greenhouse gas emissions reduction targets for its delivery system of 75% by 2030, and 90% by 2050, from 1990 levels.
  • Company is increasing its fiscal 2021 earnings guidance to a range of $3.85 to $4.05 per share, an increase of $0.15 at the midpoint, excluding items impacting comparability (see Guidance Summary on page 7).

MANAGEMENT COMMENTS

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel had an excellent second quarter, with significant earnings growth resulting from the ongoing expansion of our interstate pipeline systems and the continued positive impact of our Appalachian upstream and gathering acquisition completed last summer. In light of these strong operating results, we are increasing our earnings guidance for fiscal 2021 to $3.85 to $4.05 per share, representing a 35% increase from the prior year at the midpoint of the updated range.  

“During the quarter, our Pipeline and Storage business commenced construction of our FM100 expansion and modernization project, which remains on track for a late calendar 2021 in-service date. In addition to contributing $50 million in annual revenues to our FERC-regulated pipeline operations, this project, along with the companion Transco Leidy South expansion, is expected to provide additional access to premium markets in the Mid-Atlantic for Seneca’s growing production base. Additionally, we continued to make significant strides on our sustainability-focused initiatives, with our Utility business announcing substantial greenhouse gas emissions reduction goals in March, driven by ongoing investments in the modernization of our natural gas distribution network. Evidencing our commitment to the continued reduction of National Fuel’s carbon footprint, we are working towards emissions reduction targets for the Company's midstream and upstream segments, maintaining our focus on climate-risk and the energy transition, as well as National Fuel’s long-term role in the energy complex.”

 
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS
                 
    Three Months Ended   Six Months Ended
    March 31,   March 31,
(in thousands except per share amounts)   2021   2020   2021   2020
Reported GAAP Earnings   $ 112,436     $ (106,068 )   $ 190,210     $ (19,477 )
Items impacting comparability:                                
Impairment of oil and gas properties (E&P)       177,761     76,152     177,761  
Tax impact of impairment of oil and gas properties       (48,503 )   (20,980 )   (48,503 )
Gain on sale of timber properties (Corporate / All Other)           (51,066 )    
Tax impact of gain on sale of timber properties           14,069      
Premium paid on early redemption of debt   15,715         15,715      
Tax impact of premium paid on early redemption of debt   (4,321 )       (4,321 )    
Deferred tax valuation allowance       56,770         56,770  
Unrealized (gain) loss on other investments (Corporate / All Other)   (848 )   5,414     450     6,433  
Tax impact of unrealized (gain) loss on other investments   178     (1,137 )   (94 )   (1,351 )
Adjusted Operating Results   $ 123,160     $ 84,237     $ 220,135     $ 171,633  
                 
Reported GAAP Earnings Per Share   $ 1.23     $ (1.23 )   $ 2.08     $ (0.23 )
Items impacting comparability:                
Impairment of oil and gas properties, net of tax (E&P)       1.49     0.60     1.49  
Gain on sale of timber properties, net of tax (Corporate / All Other)           (0.40 )    
Premium paid on early redemption of debt, net of tax   0.12         0.12      
Deferred tax valuation allowance       0.66         0.66  
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)   (0.01 )   0.05         0.06  
Adjusted Operating Results Per Share   $ 1.34     $ 0.97     $ 2.40     $ 1.98  
                                 

FISCAL 2021 GUIDANCE UPDATE

National Fuel is revising its fiscal 2021 earnings guidance to reflect the results of the second fiscal quarter, along with updated commodity price and operating unit cost assumptions for the balance of the year. The Company is now projecting that earnings, excluding items impacting comparability, will be within the range of $3.85 to $4.05 per share, an increase of $0.15 per share from the midpoint of the Company’s prior guidance range.

The Company is now assuming that WTI oil prices will average $60.00 per Bbl for the remainder of the year, a $7.50 increase from the $52.50 per Bbl assumed in the previous guidance. For guidance purposes, the Company’s projections approximate the current NYMEX forward markets and consider the impact of local sales point differentials and new physical firm sales, transportation, and financial hedge contracts.

Seneca currently has firm sales contracts in place for 142 Bcf, or approximately 95% of its projected remaining fiscal 2021 Appalachian production, limiting its exposure to in-basin markets. Approximately 132 Bcf of those sales, or 88% of Seneca’s expected remaining Appalachian production, are either matched by a financial hedge, including a combination of swaps and no-cost collars, or were entered into at a fixed price. Additionally, Seneca has financial hedges in place for 786 Mbbl, or approximately 72%, of its expected remaining oil production for the fiscal year.

The Company’s other guidance assumptions remain largely unchanged from the previous guidance. Additional details on the Company's updated forecast assumptions and business segment guidance for fiscal 2021 are outlined in the table on page 7.

DISCUSSION OF SECOND QUARTER RESULTS BY SEGMENT

The following earnings discussion of each operating segment for the quarter ended March 31, 2021 is summarized in a tabular form on pages 8 and 9 of this report (earnings drivers for the six months ended March 31, 2021 are summarized on pages 10 and 11). It may be helpful to refer to those tables while reviewing this discussion.

Note that management defines Adjusted Operating Results as reported GAAP earnings adjusted for items impacting comparability, and Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, 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
  March 31,
(in thousands) 2021   2020   Variance
GAAP Earnings $ 36,822     $ (175,275 )   $ 212,097  
Premium paid on early redemption of debt, net of tax 10,710         10,710  
Impairment of oil and gas properties, net of tax     129,258     (129,258 )
Deferred tax valuation allowance     60,463     (60,463 )
Adjusted Operating Results $ 47,532     $ 14,446     $ 33,086  
                       
Adjusted EBITDA $ 127,146     $ 79,846     $ 47,300  

Seneca’s second quarter GAAP earnings increased $212.1 million versus the prior year. This was primarily attributable to the non-recurrence of two items from the prior year's second quarter, including a non-cash ceiling test impairment charge of $129.3 million (after-tax) as well as a $60.5 million state income tax valuation allowance. Excluding these items noted above, as well as a loss of $14.8 million ($10.7 million after-tax) recognized on the early redemption of long-term debt for Seneca's share of a premium paid by the Company to redeem $500 million of the Company's 4.9% notes that were scheduled to mature in December 2021, Seneca’s second quarter earnings increased $33.1 million.

Seneca produced 85.2 Bcfe during the second quarter, an increase of 25.5 Bcfe, or 43%, from the prior year. The increase was primarily driven by higher natural gas production from the Company's fourth quarter fiscal 2020 acquisition of Appalachian upstream assets, as well as production growth from Seneca's other core development areas. Net production increased 21.2 Bcf to 50.2 Bcf in the Eastern Development Area ("EDA"), primarily due to higher production from the acquisition. Net production increased 4.6 Bcf to 31.3 Bcf in Seneca’s Western Development Area ("WDA"), primarily due to the ongoing development program in the region. Oil production for the second quarter decreased 44,000 Bbls, or 7%, from the prior year primarily due to natural production declines in Seneca's Midway Sunset, Lost Hills and Pioneer development areas as a result of lower activity in response to decreased crude oil prices. These declines were partially offset by new production brought on-line in Seneca’s Coalinga and 17N development areas.

Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.28 per Mcf, an increase of $0.16 per Mcf from the prior year. This increase was primarily due to higher NYMEX prices and higher spot prices at local sales points in Pennsylvania. Seneca's average realized oil price, after the impact of hedging, was $57.11 per Bbl, a decrease of $1.12 per Bbl compared to the prior year.

Lease operating and transportation (“LOE”) expense increased $15.3 million primarily due to higher transportation costs in Appalachia from increased production. LOE expense includes $49.6 million in intercompany expense for gathering and compression services used to connect Seneca’s Marcellus and Utica production to sales points along interstate pipelines. DD&A expense increased $1.0 million due largely to higher natural gas production, partially offset by the impact of ceiling test impairments recorded during fiscal 2020.

On a unit of production basis, Seneca's combined general and administrative ("G&A"), LOE, other operation and maintenance ("O&M") expense, and Property, Franchise, and Other Taxes decreased $0.18 per Mcfe, or 14%, during the quarter.

Excluding the premium paid on the early redemption of long-term debt noted above, interest expense increased by $1.3 million from the prior year, primarily driven by additional long-term borrowings from the Company's long-term debt issuance in June 2020 that was used to fund a portion of the Company's Appalachian acquisition. The increase in Seneca's effective income tax rate was largely driven by an increase to a valuation allowance for deferred tax assets that was initially established in the second quarter of fiscal 2020.

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
  March 31,
(in thousands) 2021   2020   Variance
GAAP Earnings $ 24,928     $ 22,087     $ 2,841  
           
Adjusted EBITDA $ 58,570     $ 49,102     $ 9,468  

The Pipeline and Storage segment’s second quarter GAAP earnings increased $2.8 million versus the prior year primarily due to higher operating revenues and lower O&M expense, partially offset by higher DD&A expense and higher interest expense. The increase in operating revenues of $7.5 million, or 9%, was largely due to new demand charges for transportation service from the Company's Empire North expansion project, which was placed in service near the end of the fourth quarter of fiscal 2020, coupled with an increase in Supply Corporation's transportation and storage rates effective February 1, 2020, in accordance with Supply Corporation's rate case settlement. Additionally, the Company recognized increased revenue from a surcharge mechanism for power costs related to electric motor drive compression on the Empire North project, for which offsetting O&M expense was recognized during the quarter. O&M expense decreased $2.3 million primarily due to a decrease in the reserve for preliminary project costs, which was partially offset by an increase in operating costs, largely the aforementioned Empire power costs. The increase in DD&A expense of $2.4 million was primarily attributable to incremental depreciation from the Empire North expansion project combined with an increase in Supply Corporation's depreciation rates associated with its rate case settlement. The increase in interest expense of $3.4 million was primarily driven by additional long-term borrowings from the Company's long-term debt issuance in June 2020.

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 primarily delivers Seneca’s gross Appalachian production to the interstate pipeline system.

  Three Months Ended
  March 31,
(in thousands) 2021   2020   Variance
GAAP Earnings $ 20,700     $ 19,898     $ 802  
Premium paid on early redemption of debt, net of tax 684         684  
Deferred tax valuation allowance     (3,769 )   3,769  
Adjusted Operating Results $ 21,384     $ 16,129     $ 5,255  
           
Adjusted EBITDA $ 41,424     $ 29,541     $ 11,883  

The Gathering segment’s second quarter GAAP earnings increased $0.8 million versus the prior year. Excluding a $3.8 million income tax benefit that was recorded as an offset to the valuation allowance recognized by the Exploration and Production segment during the prior year second quarter that did not recur in the current quarter, as well as a $0.7 million after-tax loss recognized on the early redemption of long-term debt for Midstream Company's share of a premium paid by the Company to redeem $500 million of the Company's 4.9% notes that were scheduled to mature in December 2021, the Gathering segment's earnings increased $5.3 million.

The Gathering segment's earnings increase was primarily driven by higher operating revenues, which was partially offset by higher DD&A expense, higher O&M expenses and higher interest expense. Operating revenues increased $15.0 million, or 43%, primarily due to increased gathering throughput resulting from the Company's Appalachian acquisition in the fourth quarter of fiscal 2020 and from new Marcellus and Utica wells that were brought on-line. The increase in DD&A expense of $2.8 million was primarily attributable to incremental depreciation expense related to the Company's Appalachian acquisition, as well as higher average depreciable plant in service compared to the prior year. Compression leasing expenses, as well as higher facility and personnel costs, all associated with the Appalachian acquisition, were primarily responsible for the $3.1 million increase in O&M expense. Excluding the premium paid on the early redemption of long-term debt noted above, interest expense increased by $2.1 million from the prior year, primarily driven by additional long-term borrowings from the Company's long-term debt issuance in June 2020 that was used to fund a portion of the Appalachian acquisition.

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
  March 31,
(in thousands) 2021   2020   Variance
GAAP Earnings $ 32,044     $ 31,499     $ 545  
           
Adjusted EBITDA $ 73,885     $ 73,192     $ 693  

The Utility segment’s second quarter GAAP earnings increased $0.5 million versus the prior year primarily due to higher customer margins (operating revenues less purchased gas sold), partially offset by higher O&M expense. The increase in customer margin was due primarily to higher revenues earned through the Company's system modernization tracking mechanism in its New York service territory and colder weather in Distribution's Pennsylvania service territory that resulted in an increase in customer usage. These positive items were partially offset by the impact of adjustments recorded in the prior year for certain regulatory revenue and cost recovery mechanisms that did not occur in the current year. Weather in Distribution's Pennsylvania service territory was 8% colder on average than last year. The impact of weather variations on earnings in Distribution's New York service territory is largely mitigated by that jurisdiction's weather normalization clause. The $1.8 million increase in O&M expense was primarily attributable to incremental expense recorded to increase the allowance for uncollectible accounts due to the potential for higher customer non-payment resulting from the current economic backdrop brought on by COVID-19, as well as higher personnel costs.

Corporate and All Other

The Company’s operations that are included in Corporate and All Other generated a combined net loss of $2.1 million in the current year second quarter, which was $2.2 million lower than the combined loss of $4.3 million in the prior-year second quarter. The reduction in net loss was primarily driven by unrealized gains on investment securities recognized in the current quarter compared to unrealized losses on investment securities in the prior year second quarter.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, May 7, 2021, at 11 a.m. Eastern Time to discuss this announcement. Pre-registration is required to access the teleconference by phone in a listen-only mode by following this link: http://www.directeventreg.com/registration/event/2524688. To access the webcast, visit the Events Calendar under the News & Events page on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay of the conference call will be available approximately two hours following the teleconference at the same website link and by phone (toll-free) at 800-585-8367 using conference ID number “2524688”. Both the webcast and conference call replay will be available until the close of business on Friday, May 14, 2021.

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

Analyst Contact: Kenneth E. Webster 716-857-7067
Media Contact: Karen L. Merkel 716-857-7654

 

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: the length and severity of the recent COVID-19 pandemic, including its impacts across our businesses on demand, operations, global supply chains and liquidity; 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; changes in the price of natural gas or oil; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; 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 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; the Company's ability to estimate accurately the time and resources necessary to meet emissions targets; disallowance by applicable regulatory bodies of appropriate rate recovery for system modernization; moves to reduce or eliminate reliance on natural gas; delays or changes in costs or plans with respect to Company projects or related projects of other companies, including disruptions due to the COVID-19 pandemic, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; the Company's ability to complete planned strategic transactions; the Company's ability to successfully integrate acquired assets and achieve expected cost synergies; 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 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; the impact of information technology disruptions, cybersecurity or data security breaches; 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; 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; 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 guidance for fiscal 2021. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below.

The revised earnings guidance range does not include the impact of certain items that impacted the comparability of earnings during the six months ended March 31, 2021, including: (1) the after-tax impairment of oil and gas properties, which reduced earnings by $0.60 per share; (2) the after-tax gain on sale of timber properties, which increased earnings by $0.40 per share; and (3) the after-tax premium paid on early redemption of debt, which reduced earnings by $0.12 per share. While the Company expects to record certain adjustments to unrealized gain or loss on investments during the six months ending September 30, 2021, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

  Updated FY 2021 Guidance   Previous FY 2021 Guidance
Consolidated Earnings per Share, excluding items      
 impacting comparability $3.85 to $4.05   $3.65 to $3.95
Consolidated Effective Tax Rate ~ 26%   ~ 26%
       
Capital Expenditures (Millions)      
Exploration and Production $350 - $390   $350 - $390
Pipeline and Storage $250 - $300   $250 - $300
Gathering $30 - $40   $30 - $40
Utility $90 - $100   $90 - $100
Consolidated Capital Expenditures $720 - $830   $720 - $830
       
Exploration & Production Segment Guidance *      
       
Commodity Price Assumptions      
NYMEX natural gas price $2.75 /MMBtu   $2.75 /MMBtu
Appalachian basin spot price $1.90 /MMBtu   $2.05 /MMBtu
NYMEX (WTI) crude oil price $60.00 /Bbl   $52.50 /Bbl
California oil price premium (% of WTI) 96%   96%
       
Production (Bcfe)      
East Division - Appalachia 300 to 315   295 to 320
West Division - California ~ 15   ~ 15
Total Production 315 to 330   310 to 335
       
E&P Operating Costs ($/Mcfe)      
LOE $0.82 - $0.84   $0.83 - $0.85
G&A $0.20 - $0.22   $0.20 - $0.22
DD&A $0.57 - $0.60   $0.58 - $0.62
       
Other Business Segment Guidance (Millions)      
Gathering Segment Revenues $185 - $200   $185 - $200
Pipeline and Storage Segment Revenues $335 - $345   $330 - $340
       
* Commodity price assumptions are for the remaining 6 months of the fiscal year.
 

 

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED MARCH 31, 2021
(Unaudited)
                       
  Upstream   Midstream   Downstream        
                       
  Exploration &   Pipeline &           Corporate /    
(Thousands of Dollars) Production   Storage   Gathering   Utility   All Other   Consolidated*
                       
Second quarter 2020 GAAP earnings $ (175,275 )   $ 22,087     $ 19,898     $ 31,499     $ (4,277 )   $ (106,068 )
                       
Items impacting comparability:                      
Impairment of oil and gas properties 177,761                     177,761  
Tax impact of impairment of oil and gas properties (48,503 )                   (48,503 )
Deferred tax valuation allowance 60,463         (3,769 )       76     56,770  
Unrealized (gain) loss on other investments                 5,414     5,414  
Tax impact of unrealized (gain) loss on other investments                 (1,137 )   (1,137 )
Second quarter 2020 adjusted operating results 14,446     22,087     16,129     31,499     76     84,237  
                       
Drivers of adjusted operating results**                      
                       
Upstream Revenues                      
Higher (lower) natural gas production 43,199                     43,199  
Higher (lower) crude oil production (2,058 )                   (2,058 )
Higher (lower) realized natural gas prices, after hedging 10,040                     10,040  
Higher (lower) realized crude oil prices, after hedging (498 )                   (498 )
                       
Midstream and All Other Revenues                      
Higher (lower) operating revenues     5,893     11,846         (670 )   17,069  
                       
Downstream Margins***                      
Impact of usage and weather             1,484         1,484  
System modernization tracker revenues             1,562         1,562  
Regulatory revenue adjustments             (1,226 )       (1,226 )
Higher (lower) energy marketing margins                 (2,328 )   (2,328 )
                       
Operating Expenses                      
Lower (higher) lease operating and transportation expenses (12,070 )                   (12,070 )
Lower (higher) operating expenses (711 )   1,814     (2,473 )   (1,357 )   1,352     (1,375 )
Lower (higher) property, franchise and other taxes (907 )                   (907 )
Lower (higher) depreciation / depletion (792 )   (1,875 )   (2,225 )           (4,892 )
                       
Other Income (Expense)                      
(Higher) lower other deductions     (377 )           359     (18 )
(Higher) lower interest expense (1,017 )   (2,686 )   (1,629 )       (720 )   (6,052 )
                       
Income Taxes                      
Lower (higher) income tax expense / effective tax rate (2,447 )   157     (217 )   191     (1,074 )   (3,390 )
                       
All other / rounding 347     (85 )   (47 )   (109 )   277     383  
Second quarter 2021 adjusted operating results 47,532     24,928     21,384     32,044     (2,728 )   123,160  
                       
Items impacting comparability:                      
Premium paid on early redemption of debt (14,772 )       (943 )           (15,715 )
Tax impact of premium paid on early redemption of debt 4,062         259             4,321  
Unrealized gain (loss) on other investments                 848     848  
Tax impact of unrealized gain (loss) on other investments                 (178 )   (178 )
Second quarter 2021 GAAP earnings $ 36,822     $ 24,928     $ 20,700     $ 32,044     $ (2,058 )   $ 112,436  
                       
* Amounts do not reflect intercompany eliminations.                      
** Drivers of operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.
 

 

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED MARCH 31, 2021
(Unaudited)
                       
  Upstream   Midstream   Downstream        
                       
  Exploration &   Pipeline &           Corporate /    
  Production   Storage   Gathering   Utility   All Other   Consolidated*
                       
Second quarter 2020 GAAP earnings per share $ (2.03 )   $ 0.26     $ 0.23     $ 0.36     $ (0.05 )   $ (1.23 )
Items impacting comparability:                      
Impairment of oil and gas properties, net of tax 1.49                     1.49  
Deferred tax valuation allowance 0.70         (0.04 )           0.66  
Unrealized (gain) loss on other investments, net of tax                 0.05     0.05  
Earnings per share impact of diluted shares 0.01     (0.01 )                
Second quarter 2020 adjusted operating results per share 0.17     0.25     0.19     0.36         0.97  
                       
Drivers of adjusted operating results**                      
                       
Upstream Revenues                      
Higher (lower) natural gas production 0.47                     0.47  
Higher (lower) crude oil production (0.02 )                   (0.02 )
Higher (lower) realized natural gas prices, after hedging 0.11                     0.11  
Higher (lower) realized crude oil prices, after hedging (0.01 )                   (0.01 )
                       
Midstream and All Other Revenues                      
Higher (lower) operating revenues     0.06     0.13         (0.01 )   0.18  
                       
Downstream Margins***                      
Impact of usage and weather             0.02         0.02  
System modernization tracker revenues             0.02         0.02  
Regulatory revenue adjustments             (0.01 )       (0.01 )
Higher (lower) energy marketing margins                 (0.03 )   (0.03 )
                       
Operating Expenses                      
Lower (higher) lease operating and transportation expenses (0.13 )                   (0.13 )
Lower (higher) operating expenses (0.01 )   0.02     (0.03 )   (0.01 )   0.01     (0.02 )
Lower (higher) property, franchise and other taxes (0.01 )                   (0.01 )
Lower (higher) depreciation / depletion (0.01 )   (0.02 )   (0.02 )           (0.05 )
                       
Other Income (Expense)                      
(Higher) lower other deductions                      
(Higher) lower interest expense (0.01 )   (0.03 )   (0.02 )       (0.01 )   (0.07 )
                       
Income Taxes                      
Lower (higher) income tax expense / effective tax rate (0.03 )               (0.01 )   (0.04 )
                       
Impact of additional shares (0.01 )   (0.01 )   (0.01 )   (0.02 )       (0.05 )
All other / rounding 0.01         (0.01 )   (0.01 )   0.02     0.01  
Second quarter 2021 adjusted operating results per share 0.52     0.27     0.23     0.35     (0.03 )   1.34  
                       
Items impacting comparability:                      
Premium paid on early redemption of debt, net of tax (0.12 )                   (0.12 )
Unrealized gain (loss) on other investments, net of tax                 0.01     0.01  
Second quarter 2021 GAAP earnings per share $ 0.40     $ 0.27     $ 0.23     $ 0.35     $ (0.02 )   $ 1.23  
                       
* Amounts do not reflect intercompany eliminations.                      
** Drivers of operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.
 

 

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
SIX MONTHS ENDED MARCH 31, 2021
(Unaudited)
                       
  Upstream   Midstream   Downstream        
                       
  Exploration &   Pipeline &           Corporate /    
(Thousands of Dollars) Production   Storage   Gathering   Utility   All Other   Consolidated*
                       
Six months ended March 31, 2020 GAAP earnings $ (151,299 )   $ 40,192     $ 35,842     $ 58,082     $ (2,294 )     $ (19,477 )
                       
Items impacting comparability:                      
Impairment of oil and gas properties 177,761                     177,761  
Tax impact of impairment of oil and gas properties (48,503 )                   (48,503 )
Deferred tax valuation allowance 60,463         (3,769 )       76       56,770  
Unrealized (gain) loss on other investments                 6,433       6,433  
Tax impact of unrealized (gain) loss on other investments                 (1,351 )     (1,351 )
Six months ended March 31, 2020 adjusted operating results 38,422     40,192     32,073     58,082     2,864       171,633  
                       
Drivers of adjusted operating results**                      
                       
Upstream Revenues                      
Higher (lower) natural gas production 82,667                     82,667  
Higher (lower) crude oil production (3,955 )                   (3,955 )
Higher (lower) realized natural gas prices, after hedging (1,564 )                   (1,564 )
Higher (lower) realized crude oil prices, after hedging (6,277 )                   (6,277 )
                       
Midstream and All Other Revenues                      
Higher (lower) operating revenues     18,173     21,500         (1,123 )     38,550  
                       
Downstream Margins***                      
Impact of usage and weather             321         321  
System modernization tracker revenues             2,481         2,481  
Regulatory revenue adjustments             (1,018 )       (1,018 )
Higher (lower) energy marketing margins                 (4,668 )     (4,668 )
                       
Operating Expenses                      
Lower (higher) lease operating and transportation expenses (23,745 )                   (23,745 )
Lower (higher) operating expenses (2,519 )   1,623     (3,943 )   (3,313 )   2,129       (6,023 )
Lower (higher) property, franchise and other taxes (706 )                   (706 )
Lower (higher) depreciation / depletion (1,728 )   (4,927 )   (4,411 )   (729 )       (11,795 )
                       
Other Income (Expense)                      
(Higher) lower other deductions     (888 )           1,572       684  
(Higher) lower interest expense (2,149 )   (5,545 )   (3,123 )       (1,067 )     (11,884 )
                       
Income Taxes                      
Lower (higher) income tax expense / effective tax rate (5,609 )   457     (235 )   (1,167 )   1,233       (5,321 )
                       
All other / rounding 244     27     73     424     (13 )     755  
Six months ended March 31, 2021 adjusted operating results 73,081     49,112     41,934     55,081     927       220,135  
                       
Items impacting comparability:                      
Impairment of oil and gas properties (76,152 )                   (76,152 )
Tax impact of impairment of oil and gas properties 20,980                     20,980  
Gain on sale of timber properties                 51,066       51,066  
Tax impact of gain on sale of timber properties                 (14,069 )     (14,069 )
Premium paid on early redemption of debt (14,772 )       (943 )           (15,715 )
Tax impact of premium paid on early redemption of debt 4,062         259             4,321  
Unrealized gain (loss) on other investments                 (450 )     (450 )
Tax impact of unrealized gain (loss) on other investments                 94       94  
Six months ended March 31, 2021 GAAP earnings $ 7,199     $ 49,112     $ 41,250     $ 55,081     $ 37,568       $ 190,210  
                       
* Amounts do not reflect intercompany eliminations.                      
** Operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.
 

 

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
SIX MONTHS ENDED MARCH 31, 2021
(Unaudited)
                       
  Upstream   Midstream   Downstream        
                       
  Exploration &   Pipeline &           Corporate /    
  Production   Storage   Gathering   Utility   All Other   Consolidated*
Six months ended March 31, 2020 GAAP earnings per share $ (1.75 )   $ 0.46     $ 0.42     $ 0.67     $ (0.03 )   $ (0.23 )
Items impacting comparability:                      
Impairment of oil and gas properties, net of tax 1.49                     1.49  
Deferred tax valuation allowance 0.70         (0.04 )           0.66  
Unrealized (gain) loss on other investments, net of tax                 0.06     0.06  
Earnings per share impact of diluted shares         (0.01 )       0.01      
Six months ended March 31, 2020 adjusted operating results per share 0.44     0.46     0.37     0.67     0.04     1.98  
                       
Drivers of adjusted operating results**                      
                       
Upstream Revenues                      
Higher (lower) natural gas production 0.90                     0.90  
Higher (lower) crude oil production (0.04 )                   (0.04 )
Higher (lower) realized natural gas prices, after hedging (0.02 )                   (0.02 )
Higher (lower) realized crude oil prices, after hedging (0.07 )                   (0.07 )
                       
Midstream and All Other Revenues                      
Higher (lower) operating revenues     0.20     0.23         (0.01 )   0.42  
                       
Downstream Margins***                      
Impact of usage and weather                      
System modernization tracker revenues             0.03         0.03  
Regulatory revenue adjustments             (0.01 )       (0.01 )
Higher (lower) energy marketing margins                 (0.05 )   (0.05 )
                       
Operating Expenses                      
Lower (higher) lease operating and transportation expenses (0.26 )                   (0.26 )
Lower (higher) operating expenses (0.03 )   0.02     (0.04 )   (0.04 )   0.02     (0.07 )
Lower (higher) property, franchise and other taxes (0.01 )                   (0.01 )
Lower (higher) depreciation / depletion (0.02 )   (0.05 )   (0.05 )   (0.01 )       (0.13 )
                       
Other Income (Expense)                      
(Higher) lower other deductions     (0.01 )           0.02     0.01  
(Higher) lower interest expense (0.02 )   (0.06 )   (0.03 )       (0.01 )   (0.12 )
                       
Income Taxes                      
Lower (higher) income tax expense / effective tax rate (0.06 )           (0.01 )   0.01     (0.06 )
                       
Impact of additional shares (0.02 )   (0.02 )   (0.02 )   (0.04 )       (0.10 )
All other / rounding 0.01         (0.01 )   0.01     (0.01 )    
Six months ended March 31, 2021 adjusted operating results per share 0.80     0.54     0.45     0.60     0.01     2.40  
                       
Items impacting comparability:                      
Impairment of oil and gas properties, net of tax (0.60 )                   (0.60 )
Gain on sale of timber properties, net of tax                 0.40     0.40  
Premium paid on early redemption of debt, net of tax (0.12 )                   (0.12 )
Unrealized gain (loss) on other investments, net of tax                      
Six months ended March 31, 2021 GAAP earnings per share $ 0.08     $ 0.54     $ 0.45     $ 0.60     $ 0.41     $ 2.08  
                       
* Amounts do not reflect intercompany eliminations.                      
** Operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.
 

 

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                 
(Thousands of Dollars, except per share amounts)                
    Three Months Ended   Six Months Ended
    March 31,   March 31,
    (Unaudited)   (Unaudited)
SUMMARY OF OPERATIONS   2021   2020   2021   2020
Operating Revenues:                
Utility and Energy Marketing Revenues   $ 270,849     $ 282,634     $ 460,315     $ 510,660  
Exploration and Production and Other Revenues   220,281     156,542     412,316     323,735  
Pipeline and Storage and Gathering Revenues   59,985     51,919     119,644     100,888  
    551,115     491,095     992,275     935,283  
Operating Expenses:                
Purchased Gas   106,661     118,270     158,280     210,542  
Operation and Maintenance:                
Utility and Energy Marketing   52,058     51,725     96,944     94,981  
Exploration and Production and Other   41,895     39,959     83,922     76,652  
Pipeline and Storage and Gathering   28,133     27,305     56,231     53,190  
Property, Franchise and Other Taxes   23,987     22,743     46,768     45,887  
Depreciation, Depletion and Amortization   84,342     77,912     167,462     152,830  
Impairment of Oil and Gas Producing Properties       177,761     76,152     177,761  
    337,076     515,675     685,759     811,843  
Gain on Sale of Timber Properties           51,066      
Operating Income (Loss)   214,039     (24,580 )   357,582     123,440  
                 
Other Income (Expense):                
Other Income (Deductions)   (10,875 )   (17,480 )   (13,051 )   (20,520 )
Interest Expense on Long-Term Debt   (48,820 )   (25,270 )   (81,076 )   (50,713 )
Other Interest Expense   (1,698 )   (1,892 )   (3,618 )   (3,443 )
                 
Income (Loss) Before Income Taxes   152,646     (69,222 )   259,837     48,764  
                 
Income Tax Expense   40,210     36,846     69,627     68,241  
                 
Net Income (Loss) Available for Common Stock   $ 112,436     $ (106,068 )   $ 190,210     $ (19,477 )
                 
Earnings (Loss) Per Common Share                
Basic   $ 1.23     $ (1.23 )   $ 2.09     $ (0.23 )
Diluted   $ 1.23     $ (1.23 )   $ 2.08     $ (0.23 )
                 
Weighted Average Common Shares:                
Used in Basic Calculation   91,163,291   86,561,066   91,084,620   86,469,258
Used in Diluted Calculation   91,645,679   86,561,066   91,581,918   86,469,258
                 

 

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
   
  March 31,   September 30,
(Thousands of Dollars) 2021   2020
       
ASSETS      
Property, Plant and Equipment $ 12,648,604     $ 12,351,852  
Less - Accumulated Depreciation, Depletion and Amortization   6,572,534       6,353,785  
Net Property, Plant and Equipment   6,076,070       5,998,067  
Assets Held for Sale, Net         53,424  
       
Current Assets:      
Cash and Temporary Cash Investments   80,467       20,541  
Receivables - Net   229,479       143,583  
Unbilled Revenue   32,685       17,302  
Gas Stored Underground   5,745       33,338  
Materials, Supplies and Emission Allowances   52,212       51,877  
Unrecovered Purchased Gas Costs   479        
Other Current Assets   56,117       47,557  
Total Current Assets   457,184       314,198  
       
Other Assets:      
Recoverable Future Taxes   117,300       118,310  
Unamortized Debt Expense   11,443       12,297  
Other Regulatory Assets   147,099       156,106  
Deferred Charges   60,454       67,131  
Other Investments   147,421       154,502  
Goodwill   5,476       5,476  
Prepaid Post-Retirement Benefit Costs   89,101       76,035  
Fair Value of Derivative Financial Instruments   4,104       9,308  
Other         81  
Total Other Assets   582,398       599,246  
Total Assets $ 7,115,652     $ 6,964,935  
       
CAPITALIZATION AND LIABILITIES      
Capitalization:      
Comprehensive Shareholders' Equity      
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and      
Outstanding - 91,163,797 Shares and 90,954,696 Shares, Respectively $ 91,164     $ 90,955  
Paid in Capital   1,009,075       1,004,158  
Earnings Reinvested in the Business   1,100,718       991,630  
Accumulated Other Comprehensive Loss   (101,988 )     (114,757 )
Total Comprehensive Shareholders' Equity   2,098,969       1,971,986  
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs   2,627,033       2,629,576  
Total Capitalization   4,726,002       4,601,562  
               
Current and Accrued Liabilities:              
Notes Payable to Banks and Commercial Paper         30,000  
Current Portion of Long-Term Debt          
Accounts Payable   107,305       134,126  
Amounts Payable to Customers   19,768       10,788  
Dividends Payable   40,562       40,475  
Interest Payable on Long-Term Debt   17,663       27,521  
Customer Advances         15,319  
Customer Security Deposits   19,503       17,199  
Other Accruals and Current Liabilities   176,940       140,176  
Fair Value of Derivative Financial Instruments   21,231       43,969  
Total Current and Accrued Liabilities   402,972       459,573  
               
Deferred Credits:              
Deferred Income Taxes   763,441       696,054  
Taxes Refundable to Customers   355,375       357,508  
Cost of Removal Regulatory Liability   237,867       230,079  
Other Regulatory Liabilities   177,685       161,573  
Pension and Other Post-Retirement Liabilities   118,804       127,181  
Asset Retirement Obligations   192,127       192,228  
Other Deferred Credits   141,379       139,177  
Total Deferred Credits   1,986,678       1,903,800  
Commitments and Contingencies          
Total Capitalization and Liabilities $ 7,115,652     $ 6,964,935  

 

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
  Six Months Ended
  March 31,
(Thousands of Dollars) 2021   2020
       
Operating Activities:      
Net Income (Loss) Available for Common Stock $ 190,210     $ (19,477 )
Adjustments to Reconcile Net Income (Loss) to Net Cash
     
Provided by Operating Activities:          
Gain on Sale of Timber Properties (51,066 )    
Impairment of Oil and Gas Producing Properties 76,152     177,761  
Depreciation, Depletion and Amortization 167,462     152,830  
Deferred Income Taxes 61,408     104,883  
Premium Paid on Early Redemption of Debt 15,715      
Stock-Based Compensation 8,657     7,580  
Other 6,742     9,800  
Change in:      
Receivables and Unbilled Revenue (101,159 )   (58,248 )
Gas Stored Underground and Materials, Supplies and Emission Allowances 27,258     20,086  
Unrecovered Purchased Gas Costs (479 )   2,246  
Other Current Assets (8,447 )   (3,134 )
Accounts Payable 8,613     (5,465 )
Amounts Payable to Customers 8,980     13,196  
Customer Advances (15,319 )   (12,429 )
Customer Security Deposits 2,304     (1,211 )
Other Accruals and Current Liabilities 9,058     9,076  
Other Assets 11,039     (10,359 )
Other Liabilities 5     3,857  
Net Cash Provided by Operating Activities $ 417,133     $ 390,992  
       
Investing Activities:      
Capital Expenditures $ (338,867 )   $ (395,486 )
Net Proceeds from Sale of Timber Properties 104,582      
Other 12,095     4,167  
Net Cash Used in Investing Activities $ (222,190 )   $ (391,319 )
       
Financing Activities:      
Changes in Notes Payable to Banks and Commercial Paper $ (30,000 )   $ 174,800  
Reduction of Long-Term Debt (515,715 )    
Dividends Paid on Common Stock (81,035 )   (75,197 )
Net Proceeds From Issuance of Long-Term Debt 495,267      
Net Repurchases of Common Stock (3,534 )   (4,153 )
Net Cash Provided by (Used in) Financing Activities $ (135,017 )   $ 95,450  
       
Net Increase in Cash, Cash Equivalents, and Restricted Cash 59,926     95,123  
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 20,541     27,260  
Cash, Cash Equivalents, and Restricted Cash at March 31 $ 80,467     $ 122,383  

 

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                   
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                   
UPSTREAM BUSINESS
                   
                   
  Three Months Ended   Six Months Ended
(Thousands of Dollars, except per share amounts) March 31,   March 31,
EXPLORATION AND PRODUCTION SEGMENT 2021   2020
  Variance   2021 2020   Variance
Total Operating Revenues $ 220,187     $ 155,560     $ 64,627     $ 411,582   $ 321,499     $ 90,083  
                                             
Operating Expenses:                                            
Operation and Maintenance:                                            
General and Administrative Expense 17,899     17,429     470     34,852   32,809     2,043  
Lease Operating and Transportation Expense 67,008     51,730     15,278     132,588   102,531     30,057  
All Other Operation and Maintenance Expense 3,515     3,084     431     7,187   6,041     1,146  
Property, Franchise and Other Taxes 4,619     3,471     1,148     9,065   8,171     894  
Depreciation, Depletion and Amortization 46,139     45,136     1,003     91,471   89,284     2,187  
Impairment of Oil and Gas Producing Properties     177,761     (177,761 )   76,152   177,761     (101,609 )
  139,180     298,611     (159,431 )   351,315   416,597     (65,282 )
                   
Operating Income (Loss) 81,007       (143,051 )   224,058     60,267     (95,098 )   155,365  
                   
Other Income (Expense):                  
Non-Service Pension and Post-Retirement Benefit Costs (286 )   (395 )   109     (570 ) (790 )   220  
Interest and Other Income 67     208     (141 )   158   441     (283 )
Interest Expense on Long-Term Debt (15,119 )       (15,119 )   (15,119 )     (15,119 )
Interest Expense (15,103 )   (14,163 )   (940 )   (30,594 ) (28,220 )   (2,374 )
                   
Income (Loss) Before Income Taxes 50,566     (157,401 )   207,967     14,142   (123,667 )   137,809  
Income Tax Expense 13,744     17,874     (4,130 )   6,943   27,632     (20,689 )
Net Income (Loss) $ 36,822     $ (175,275 )   $ 212,097     $ 7,199   $ (151,299 )   $ 158,498  
                   
Net Income (Loss) Per Share (Diluted) $ 0.40     $ (2.03 )   $ 2.43     $ 0.08   $ (1.75 )   $ 1.83  
                   

 

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                   
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                   
MIDSTREAM BUSINESSES
                   
  Three Months Ended   Six Months Ended
(Thousands of Dollars, except per share amounts) March 31,   March 31,
PIPELINE AND STORAGE SEGMENT 2021   2020   Variance   2021 2020 Variance
Revenues from External Customers $ 59,314     $ 51,919     $ 7,395     $ 118,623   $ 100,888   $ 17,735  
Intersegment Revenues 27,390     27,326     64     55,846   50,577   5,269  
Total Operating Revenues 86,704     79,245     7,459     174,469   151,465   23,004  
                   
Operating Expenses:                  
Purchased Gas 216     (3 )   219     229   (10 ) 239  
Operation and Maintenance 19,718     22,014     (2,296 )   40,891   42,945   (2,054 )
Property, Franchise and Other Taxes 8,200     8,132     68     16,643   16,487   156  
Depreciation, Depletion and Amortization 15,729     13,356     2,373     31,197   24,960   6,237  
  43,863     43,499     364     88,960   84,382   4,578  
                   
Operating Income 42,841     35,746     7,095     85,509   67,083   18,426  
                   
Other Income (Expense):                  
Non-Service Pension and Post-Retirement Benefit (Costs) Credit 125     (174 )   299     250   (349 ) 599  
Interest and Other Income 939     1,535     (596 )   1,795   3,088   (1,293 )
Interest Expense (10,552 )   (7,152 )   (3,400 )   (21,283 ) (14,264 ) (7,019 )
                   
Income Before Income Taxes 33,353     29,955     3,398     66,271   55,558   10,713  
Income Tax Expense 8,425     7,868     557     17,159   15,366   1,793  
Net Income $ 24,928     $ 22,087     $ 2,841     $ 49,112   $ 40,192   $ 8,920  
                   
Net Income Per Share (Diluted) $ 0.27     $ 0.26     $ 0.01     $ 0.54   $ 0.46   $ 0.08  
                   
                   
  Three Months Ended   Six Months Ended
  March 31,   March 31,
GATHERING SEGMENT 2021   2020   Variance   2021 2020 Variance
Revenues from External Customers $ 671     $     $ 671     $ 1,021   $   $ 1,021  
Intersegment Revenues 49,591     35,267     14,324     96,249   70,055   26,194  
Total Operating Revenues 50,262     35,267     14,995     97,270   70,055   27,215  
                   
Operating Expenses:                  
Operation and Maintenance 8,833     5,702     3,131     16,035   11,044   4,991  
Property, Franchise and Other Taxes 5     24     (19 )   18   38   (20 )
Depreciation, Depletion and Amortization 8,096     5,279     2,817     16,001   10,418   5,583  
  16,934     11,005     5,929     32,054   21,500   10,554  
                   
Operating Income 33,328     24,262     9,066     65,216   48,555   16,661  
                   
Other Income (Expense):                  
Non-Service Pension and Post-Retirement Benefit Costs (68 )   (71 )   3     (135 ) (143 ) 8  
Interest and Other Income 9     89     (80 )   243   157   86  
Interest Expense on Long-Term Debt (965 )       (965 )   (965 )   (965 )
Interest Expense (4,201 )   (2,160 )   (2,041 )   (8,332 ) (4,379 ) (3,953 )
                   
Income Before Income Taxes 28,103     22,120     5,983     56,027   44,190   11,837  
Income Tax Expense 7,403     2,222     5,181     14,777   8,348   6,429  
Net Income $ 20,700     $ 19,898     $ 802     $ 41,250   $ 35,842   $ 5,408  
                   
Net Income Per Share (Diluted) $ 0.23     $ 0.23     $     $ 0.45   $ 0.42   $ 0.03  
                   

 

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                   
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                   
DOWNSTREAM BUSINESS
                   
  Three Months Ended   Six Months Ended
(Thousands of Dollars, except per share amounts) March 31,   March 31,
UTILITY SEGMENT 2021   2020   Variance   2021 2020 Variance
Revenues from External Customers $ 270,784      $ 250,556      $ 20,228      $ 459,684    $ 445,465    $ 14,219   
Intersegment Revenues 97      3,937      (3,840 )   197    5,853    (5,656 )
Total Operating Revenues 270,881      254,493      16,388      459,881    451,318    8,563   
                   
Operating Expenses:                  
Purchased Gas 133,132      119,411      13,721      210,164    204,116    6,048   
Operation and Maintenance 52,864      51,070      1,794      98,116    93,913    4,203   
Property, Franchise and Other Taxes 11,000      10,820      180      20,748    20,634    114   
Depreciation, Depletion and Amortization 14,311      13,751      560      28,305    27,382    923   
  211,307      195,052      16,255      357,333    346,045    11,288   
                   
Operating Income 59,574      59,441      133      102,548    105,273    (2,725 )
                   
Other Income (Expense):                  
Non-Service Pension and Post-Retirement Benefit Costs (12,243 )   (12,388 )   145      (18,927 ) (19,151 ) 224   
Interest and Other Income 443      294      149      1,181    1,245    (64 )
Interest Expense (5,495 )   (5,516 )   21      (10,947 ) (11,190 ) 243   
                   
Income Before Income Taxes 42,279      41,831      448      73,855    76,177    (2,322 )
Income Tax Expense 10,235      10,332      (97 )   18,774    18,095    679   
Net Income $ 32,044      $ 31,499      $ 545      $ 55,081    $ 58,082    $ (3,001 )
                   
Net Income Per Share (Diluted) $ 0.35      $ 0.36      $ (0.01 )   $ 0.60    $ 0.67    $ (0.07 )
                   

 

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                 
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                 
  Three Months Ended   Six Months Ended
(Thousands of Dollars, except per share amounts) March 31,   March 31,
ALL OTHER 2021 2020   Variance   2021 2020 Variance
Revenues from External Customers $ 64   $ 32,925     $ (32,861 )   $ 1,175   $ 67,161   $ (65,986 )
Intersegment Revenues 1   79     (78 )   20   256   (236 )
Total Operating Revenues 65   33,004     (32,939 )   1,195   67,417   (66,222 )
Operating Expenses:                
Purchased Gas 6   29,151     (29,145 )   2,293   61,184   (58,891 )
Operation and Maintenance (81 ) 1,875     (1,956 )   683   3,578   (2,895 )
Property, Franchise and Other Taxes 38   176     (138 )   47   320   (273 )
Depreciation, Depletion and Amortization 9   206     (197 )   394   408   (14 )
  (28 ) 31,408     (31,436 )   3,417   65,490   (62,073 )
Gain on Sale of Timber Properties           51,066     51,066  
Operating Income 93   1,596     (1,503 )   48,844   1,927   46,917  
                 
Other Income (Expense):                
Non-Service Pension and Post-Retirement Benefit Costs (3)   (69 )   66     (7 ) (138 ) 131  
Interest and Other Income 41   193     (152 )   225   471   (246 )
Interest Expense   (24 )   24       (42 ) 42  
                 
Income before Income Taxes 131   1,696     (1,565 )   49,062   2,218   46,844  
Income Tax Expense 1,114   527     587     12,485   678   11,807  
Net Income (Loss) $ (983 ) $ 1,169     $ (2,152 )   $ 36,577   $ 1,540   $ 35,037  
Net Income (Loss) Per Share (Diluted) $ (0.01 ) $ 0.01     $ (0.02 )   $ 0.40   $ 0.02   $ 0.38  
           
  Three Months Ended   Six Months Ended
  March 31,   March 31,
CORPORATE 2021 2020   Variance   2021 2020 Variance
Revenues from External Customers $ 95   $ 135     $ (40 )   $ 190   $ 270   $ (80 )
Intersegment Revenues 1,027   1,094     (67 )   1,691   2,187   (496 )
Total Operating Revenues 1,122   1,229     (107 )   1,881   2,457   (576 )
Operating Expenses:                
Operation and Maintenance 3,743   3,499     244     6,342   6,142   200  
Property, Franchise and Other Taxes 125   120     5     247   237   10  
Depreciation, Depletion and Amortization 58   184     (126 )   94   378   (284 )
  3,926   3,803     123     6,683   6,757   (74 )
                 
Operating Loss (2,804 ) (2,574 )   (230 )   (4,802 ) (4,300 ) (502 )
                 
Other Income (Expense):                
Non-Service Pension and Post-Retirement Benefit Costs (922 ) (775 )   (147 )   (1,846 ) (1,550 ) (296 )
Interest and Other Income 35,317   22,801     12,516     74,296   53,874   20,422  
Interest Expense on Long-Term Debt (32,736 ) (25,270 )   (7,466 )   (64,992 ) (50,713 ) (14,279 )
Other Interest Expense (641 ) (1,605 )   964     (2,176 ) (3,023 ) 847  
                 
Income (Loss) before Income Taxes (1,786 ) (7,423 )   5,637     480   (5,712 ) 6,192  
Income Tax Expense (Benefit) (711 ) (1,977 )   1,266     (511 ) (1,878 ) 1,367  
Net Income (Loss) $ (1,075 ) $ (5,446 )   $ 4,371     $ 991   $ (3,834 ) $ 4,825  
Net Income (Loss) Per Share (Diluted) $ (0.01 ) $ (0.06 )   $ 0.05     $ 0.01   $ (0.05 ) $ 0.06  
                 
                 
  Three Months Ended   Six Months Ended
  March 31,   March 31,
INTERSEGMENT ELIMINATIONS 2021 2020   Variance   2021 2020 Variance
Intersegment Revenues $ (78,106 ) $ (67,703 )   $ (10,403 )   $ (154,003 ) $ (128,928 ) $ (25,075 )
Operating Expenses:                
Purchased Gas (26,693 ) (30,289 )   3,596     (54,406 ) (54,748 ) 342  
Operation and Maintenance (51,413 ) (37,414 )   (13,999 )   (99,597 ) (74,180 ) (25,417 )
  (78,106 ) (67,703 )   (10,403 )   (154,003 ) (128,928 ) (25,075 )
Operating Income                
Other Income (Expense):                
Interest and Other Deductions (34,294 ) (28,728 )   (5,566 )   (69,714 ) (57,675 ) (12,039 )
Interest Expense 34,294   28,728     5,566     69,714   57,675   12,039  
Net Income $   $     $     $   $   $  
Net Income Per Share (Diluted) $   $     $     $   $   $  

 

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                       
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
                       
  Three Months Ended   Six Months Ended
  March 31,   March 31,
  (Unaudited)   (Unaudited)
          Increase           Increase
  2021   2020   (Decrease)   2021   2020   (Decrease)
                       
Capital Expenditures:                      
Exploration and Production $ 88,271   (1) $ 102,424   (3) $ (14,153 )   $ 169,610   (1)(2) $ 229,343   (3)(4) $ (59,733 )
Pipeline and Storage 47,970   (1) 25,554   (3) 22,416     91,693   (1)(2) 82,638   (3)(4) 9,055  
Gathering 11,099   (1) 15,072   (3) (3,973 )   19,419   (1)(2) 24,910   (3)(4) (5,491 )
Utility 24,480   (1) 19,457   (3) 5,023     41,825   (1)(2) 36,622   (3)(4) 5,203  
Total Reportable Segments 171,820     162,507     9,313     322,547     373,513     (50,966 )
All Other     1     (1 )       22     (22 )
Corporate 50     134     (84 )   89     320     (231 )
Eliminations (373 )       (373 )   (219 )       (219 )
Total Capital Expenditures $ 171,497     $ 162,642     $ 8,855     $ 322,417     $ 373,855     $ (51,438 )

 

(1)  Capital expenditures for the quarter and six months ended March 31, 2021, include accounts payable and accrued liabilities related to capital expenditures of $44.5 million, $16.0 million, $2.9 million, and $4.7 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 March 31, 2021, since they represent non-cash investing activities at that date.

(2) Capital expenditures for the six months ended March 31, 2021, exclude capital expenditures of $45.8 million, $17.3 million, $13.5 million and $10.7 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, 2020 and paid during the six months ended March 31, 2021. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2020, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2021.

(3)  Capital expenditures for the quarter and six months ended March 31, 2020, include accounts payable and accrued liabilities related to capital expenditures of $41.2 million, $9.7 million, $4.4 million, and $4.2 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 March 31, 2020, since they represent non-cash investing activities at that date.

(4) Capital expenditures for the six months ended March 31, 2020, exclude capital expenditures of $38.0 million, $23.8 million, $6.6 million and $12.7 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, 2019 and paid during the six months ended March 31, 2020. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2019, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2020.
   

 

DEGREE DAYS                  
              Percent Colder
              (Warmer) Than:
Three Months Ended March 31, Normal   2021   2020   Normal (1)   Last Year (1)
                   
Buffalo, NY 3,290   2,978   2,738   (9.5 )   8.8  
Erie, PA 3,108   2,750   2,555   (11.5 )   7.6  
                   
Six Months Ended March 31,                  
                   
Buffalo, NY 5,543   4,899   4,970   (11.6 )   (1.4 )
Erie, PA 5,152   4,447   4,461   (13.7 )   (0.3 )
 
(1) Percents compare actual 2021 degree days to normal degree days and actual 2021 degree days to actual 2020 degree days.
 

 

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                         
EXPLORATION AND PRODUCTION INFORMATION
                         
    Three Months Ended   Six Months Ended
    March 31,   March 31,
            Increase           Increase
    2021   2020   (Decrease)   2021   2020   (Decrease)
                         
Gas Production/Prices:                        
Production (MMcf)                        
Appalachia   81,446     55,638   25,808     157,115     109,922     47,193  
West Coast   428     479   (51 )   869     966     (97 )
Total Production   81,874     56,117   25,757     157,984     110,888     47,096  
                         
Average Prices (Per Mcf)                        
Appalachia   $ 2.28     $ 1.77   $ 0.51     $ 2.23     $ 1.97     $ 0.26  
West Coast   7.14     4.34   2.80     6.07     4.67     1.40  
Weighted Average   2.31     1.80   0.51     2.25     1.99     0.26  
Weighted Average after Hedging   2.28     2.12   0.16     2.21     2.22     (0.01 )
                         
Oil Production/Prices:                        
Production (Thousands of Barrels)                        
Appalachia   1     1       1     2     (1 )
West Coast   561     605   (44 )   1,124     1,206     (82 )
Total Production   562     606   (44 )   1,125     1,208     (83 )
                         
Average Prices (Per Barrel)                        
Appalachia   $ 48.47     $ 55.90   $ (7.43 )   $ 43.83     $ 55.48     $ (11.65 )
West Coast   59.83     49.91   9.92     51.64     56.25     (4.61 )
Weighted Average   59.82     49.92   9.90     51.63     56.25     (4.62 )
Weighted Average after Hedging   57.11     58.23   (1.12 )   53.50     60.57     (7.07 )
                         
Total Production (MMcfe)   85,246     59,753   25,493     164,734     118,136     46,598  
                         
Selected Operating Performance Statistics:                        
General & Administrative Expense per Mcfe (1)   $ 0.21     $ 0.29   $ (0.08 )   $ 0.21     $ 0.28     $ (0.07 )
Lease Operating and Transportation Expense per Mcfe (1)(2)   $ 0.79     $ 0.87   $ (0.08 )   $ 0.80     $ 0.87     $ (0.07 )
Depreciation, Depletion & Amortization per Mcfe (1)   $ 0.54     $ 0.76   $ (0.22 )   $ 0.56     $ 0.76     $ (0.20 )

 

 (1) Refer to page 15 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 $0.57 and $0.56 per Mcfe for the three months ended March 31, 2021 and March 31, 2020, respectively. Amounts include transportation expense of $0.57 and $0.57 per Mcfe for the six months ended March 31, 2021 and March 31, 2020, respectively.

 

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
             
EXPLORATION AND PRODUCTION INFORMATION
 
             
Hedging Summary for Remaining Six Months of Fiscal 2021   Volume     Average Hedge Price
Oil Swaps            
Brent   708,000   BBL   $ 57.57 / BBL
NYMEX   78,000   BBL   $ 51.00 / BBL
Total   786,000   BBL   $ 56.91 / BBL
             
Gas Swaps            
NYMEX   74,340,000   MMBTU   $ 2.62 / MMBTU
No Cost Collars   14,100,000   MMBTU   $ 2.28 / MMBTU (Floor) / $2.77 / MMBTU (Ceiling)
Fixed Price Physical Sales   47,653,084   MMBTU   $ 2.26 / MMBTU
Total   136,093,084   MMBTU      
             
Hedging Summary for Fiscal 2022   Volume     Average Hedge Price
Oil Swaps            
Brent   900,000   BBL   $ 56.66 / BBL
NYMEX   156,000   BBL   $ 51.00 / BBL
Total   1,056,000   BBL   $ 55.83 / BBL
             
Gas Swaps            
NYMEX   144,590,000   MMBTU   $ 2.66 / MMBTU
No Cost Collars   2,350,000   MMBTU   $ 2.28 / MMBTU (Floor) / $2.77 / MMBTU (Ceiling)
Fixed Price Physical Sales   46,867,111   MMBTU   $ 2.23 / MMBTU
Total   193,807,111   MMBTU      
             
Hedging Summary for Fiscal 2023   Volume     Average Hedge Price
Oil Swaps            
Brent   240,000   BBL   $ 54.25 / BBL
Total   240,000   BBL   $ 54.25 / BBL
             
Gas Swaps            
NYMEX   24,700,000   MMBTU   $ 2.55 / MMBTU
Fixed Price Physical Sales   38,408,538   MMBTU   $ 2.24 / MMBTU
Total   63,108,538   MMBTU      
             
Hedging Summary for Fiscal 2024   Volume     Average Hedge Price
Oil Swaps            
Brent   120,000   BBL   $ 50.30 / BBL
Total   120,000   BBL   $ 50.30 / BBL
             
Gas Swaps            
NYMEX   1,150,000   MMBTU   $ 2.45 / MMBTU
Fixed Price Physical Sales   20,817,022   MMBTU   $ 2.23 / MMBTU
Total   21,967,022   MMBTU      
             
Hedging Summary for Fiscal 2025   Volume     Average Hedge Price
Oil Swaps            
Brent   120,000   BBL   $ 50.32 / BBL
Total   120,000   BBL   $ 50.32 / BBL
             
Fixed Price Physical Sales   2,293,200   MMBTU   $ 2.18 / MMBTU
               

 

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                         
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)        
                         
    Three Months Ended   Six Months Ended
    March 31,   March 31,
            Increase           Increase
    2021   2020   (Decrease)   2021   2020   (Decrease)
Firm Transportation - Affiliated   43,124     42,602     522     73,088     77,269     (4,181 )
Firm Transportation - Non-Affiliated   166,372     153,197     13,175     339,436     327,178     12,258  
Interruptible Transportation   435     531     (96 )   1,024     1,244     (220 )
    209,931     196,330     13,601     413,548     405,691     7,857  
                         
Gathering Volume - (MMcf)                        
    Three Months Ended   Six Months Ended
    March 31,   March 31,
            Increase           Increase
    2021   2020   (Decrease)   2021   2020   (Decrease)
Gathered Volume   95,121     65,134     29,987     183,466     129,526     53,940  
                         
                         
Utility Throughput - (MMcf)                      <