National Fuel Reports Second Quarter Earnings | NFG Stock News

04/30/2025 - 04:45 PM WILLIAMSVILLE, N.Y., April 30, 2025 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the second quarter of its 2025 fiscal year. FISCAL 2025 SECOND QUARTER SUMMARY GAAP net income of $216 million, or $2.37 per share, an increase of 32% per share compared to the prior year.Adjusted operating results of $218 million, or $2.39 per share, an increase of 34% per share compared to the prior year. See non-GAAP reconciliation on page 2.Seneca produced a record 105.5 Bcf of natural gas, an increase of 3% from the prior year and 8% sequentially, largely due to strong results from pads recently turned in line in the Eastern Development Area (“EDA”).Utility segment net income of $63.5 million, or $0.70 per share, an increase of 44% per share compared to the prior year, primarily as a result of the New York jurisdiction’s 2024 rate settlement, which led to its first base rate increase since 2017.Pipeline & Storage segment net income of $31.7 million, or $0.35 per share, an increase of 5% per share compared to the prior year. In addition, Empire Pipeline reached an agreement with its customers to amend its existing rate settlement, which was approved by the FERC on March 17, 2025, with new rates effective November 1, 2025.The Company is increasing its guidance for fiscal 2025 adjusted earnings per share to a range of $6.75 to $7.05. MANAGEMENT COMMENTS David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “During our second quarter, National Fuel built upon its positive momentum which, along with the tailwind of higher natural gas price realizations, drove a 32% increase in earnings per share over the prior year. “Our integrated Appalachian natural gas development program, focused on the highly prolific EDA, continues to deliver strong operational results and improving capital efficiency. Seneca’s recent well results exhibited the highest productivity we’ve seen to date, giving us further confidence in our deep, high-quality well inventory, and allowing us to increase our production guidance for fiscal 2025. On the regulated side of the business, we saw significant earnings growth during the quarter, driven by the ongoing impact of positive rate case outcomes that balance the continued investment in modernizing our infrastructure with the goal of maintaining affordable rates for our customers. “National Fuel’s integrated natural gas business, track record of strong operational execution, and consistent approach to managing risk, collectively position us well to navigate an uncertain global economic backdrop. As such, we remain confident in our ability to provide strong returns, achieve our long-term growth targets, and continue to deliver shareholder value.” RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS Three Months Ended March 31,(Thousands)(Per Share)2025202420252024Reported GAAP Earnings$216,358$166,272$2.37$1.80Items impacting comparability:Premiums paid on early redemption of debt (E&P / Midstream)2,385—0.03—Tax impact of premiums paid on early redemption of debt(642)—(0.01)—Unrealized (gain) loss on derivative asset (E&P)335(536)0.000.00Tax impact of unrealized (gain) loss on derivative asset(90)1470.000.00Unrealized (gain) loss on other investments (Corporate / All Other)(17)(769)0.00(0.01)Tax impact of unrealized (gain) loss on other investments41620.000.00Adjusted Operating Results$218,333$165,276$2.39$1.79 FISCAL 2025 GUIDANCE UPDATE National Fuel is increasing its guidance for fiscal 2025 adjusted earnings per share, which is now expected to be within a range of $6.75 to $7.05, an increase of $0.15 at the midpoint of the Company’s prior guidance range. This updated range incorporates our second quarter results as well as higher expected production and lower unit costs in the Exploration and Production segment for the remainder of the fiscal year. The Company is assuming NYMEX natural gas prices will average $3.50 per MMBtu for the remaining six months of fiscal 2025 (no change from previous guidance), which approximates the current NYMEX forward curve at this time. Given the continued volatility in NYMEX natural gas prices, the Company is providing the following sensitivities to its adjusted operating results guidance range: NYMEX AssumptionRemaining 6 months($/MMBtu)Fiscal 2025Adjusted Earnings Per Share Sensitivities$3.00$6.50 - $6.80$3.50$6.75 - $7.05$4.00$7.05 - $7.35 The Company’s other fiscal 2025 guidance assumptions remain largely unchanged as detailed in the table on page 7. FINANCING ACTIVITIES UPDATE In February 2025, the Company issued $1 billion of new five- and ten-year notes (split in two equal tranches) to refinance the early redemption of $950 million of notes that were scheduled to mature in July 2025 and January 2026. In addition, the Company placed $50 million (plus interest) in trust for the benefit of holders of long-term debt issued under the Company’s 1974 Indenture and scheduled to mature in June 2025. Placing these funds in trust discharged the 1974 Indenture, relieving the Company from its obligations to comply with the indenture’s covenants. In connection with these transactions, the Company recognized an after-tax loss of $1.7 million, which is presented as an item impacting comparability for the quarter. DISCUSSION OF SECOND QUARTER RESULTS BY SEGMENT The following earnings discussion of each operating segment for the quarter ended March 31, 2025 is summarized in a tabular form on pages 8 and 9 of this report (earnings drivers for the six months ended March 31, 2025 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 primarily natural gas reserves in Pennsylvania. Three Months EndedMarch 31,(in thousands)20252024VarianceGAAP Earnings$97,828$62,065$35,763Premiums paid on early redemption of debt, net of tax1,045—1,045Unrealized (gain) loss on derivative asset (2022 CA asset sale), net of tax245(389)634Adjusted Operating Results$99,118$61,676$37,442Adjusted EBITDA$214,350$172,068$42,282 Seneca’s second quarter GAAP earnings increased $35.8 million versus the prior year. GAAP earnings included a $1.0 million after-tax loss recognized during the quarter on the early redemption of long-term debt for Seneca’s share of premiums paid by the Company associated with its long-term debt redemptions. Excluding items impacting comparability, Seneca’s adjusted operating results in the second quarter increased $37.4 million primarily due to higher realized natural gas prices and natural gas production, as well as lower per unit operating expenses. During the second quarter, Seneca produced 105.5 Bcf of natural gas, an increase of 2.6 Bcf, or 3%, from the prior year, and 7.8 Bcf, or 8%, higher compared to the fiscal 2025 first quarter. Two highly prolific pads turned in line this year in the EDA (Tioga Utica) were the main drivers behind these increases in production. Seneca’s weighted average realized natural gas price, after the impact of hedging and transportation costs, was $2.94 per Mcf, an increase of $0.38 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. Three Months EndedMarch 31,(Cost per Mcf)20252024VarianceLease Operating and Transportation Expense (“LOE”)$0.67$0.68$(0.01)General and Administrative Expense (“G&A”)$0.18$0.17$0.01Taxes and Other$0.07$0.06$0.01Total Cash Operating Costs$0.92$0.91$0.01Depreciation, Depletion and Amortization Expense (“DD&A”)$0.61$0.71$(0.10)Total Operating Costs$1.53$1.62$(0.09) On a per unit basis, the second quarter total cash operating costs were up slightly compared to the prior year as other taxes increased as a result of a higher Impact Fee in Pennsylvania due to the increase in NYMEX natural gas prices. LOE included $59 million ($0.56 per Mcf), or 84% of total LOE, for gathering and compression service fees paid to the Company’s Gathering segment to connect Seneca’s production to sales points along interstate pipelines. DD&A for the quarter was $0.61 per Mcf, a decrease of $0.10 per Mcf from the prior year, largely due to ceiling test impairments recorded in prior quarters that lowered Seneca’s full cost pool depletable base. 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 EndedMarch 31,(in thousands)20252024VarianceGAAP Earnings$31,707$30,737$970Adjusted EBITDA$70,169$70,033$136 The Pipeline and Storage segment’s second quarter GAAP earnings increased $1.0 million versus the prior year primarily due to higher operating revenues. The increase in operating revenues of $1.6 million, or 1%, was primarily attributable to an increase in Supply Corporation’s transportation and storage rates effective February 1, 2024, in accordance with its rate settlement, which was approved in fiscal 2024. Empire Rate Case Update On March 17, 2025, FERC approved an amendment to Empire’s 2019 rate case settlement, which provides for modest unit rate reductions for Empire’s transportation services. Based on current contracts, this settlement amendment is estimated to decrease Empire’s revenues on a yearly basis by approximately $0.5 million with new rates effective November 1, 2025. Under the amendment, Empire may not file a new rate case before April 30, 2027, and is required to file a rate case by May 31, 2031. 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 delivers Seneca and other non-affiliated Appalachian production to the interstate pipeline system. Three Months EndedMarch 31,(in thousands)20252024VarianceGAAP Earnings$26,342$28,706$(2,364)Premiums paid on early redemption of debt, net of tax698—698Adjusted Operating Results$27,040$28,706$(1,666)Adjusted EBITDA$52,748$53,103$(355) The Gathering segment’s second quarter GAAP earnings decreased $2.4 million versus the prior year as higher operating revenues were more than offset by higher O&M and DD&A expense. GAAP earnings also included a $0.7 million after-tax loss recognized during the quarter on the early redemption of long-term debt for Gathering’s share of premiums paid by the Company associated with its long-term debt redemptions. Operating revenues increased $1.0 million, or 2%, primarily due to an increase in throughput from Seneca’s new wells in Tioga County. While O&M expense increased $1.5 million, the per unit rate of $0.09 per Mcf remained unchanged. DD&A expense increased $1.2 million primarily due to higher average depreciable plant in service compared to the prior year. Downstream Business Utility Segment The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution Corporation”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania. Three Months EndedMarch 31,(in thousands)20252024VarianceGAAP Earnings$63,544$44,739$18,805Adjusted EBITDA$95,270$78,326$16,944 The Utility segment’s second quarter GAAP earnings increased $18.8 million, or 42%, primarily as a result of the implementation of the recently approved rate case settlement in the Utility’s New York jurisdiction, which became effective October 1, 2024. For the quarter, customer margin (operating revenues less purchased gas sold) increased $22.2 million, primarily due to the New York rate case settlement. Other income increased $10.8 million, largely due to the New York rate settlement, which required the recognition of non-service pension and post-retirement benefit income and a corresponding reduction in new base rates, resulting in no effect on net income. O&M expense increased by $4.2 million, primarily driven by higher personnel costs, partially offset by a reduction related to amortizations of certain regulatory assets as a result of the New York rate settlement. Further, interest expense increased $2.4 million primarily due to a higher average amount of net borrowings. Corporate and All Other The Company’s operations that are included in Corporate and All Other generated a combined net loss of $3.1 million in the current year second quarter, compared to combined earnings of less than $0.1 million in the prior year. The reduction in earnings during the second quarter was primarily driven by higher interest expense due to a higher average amount of net borrowings. A decrease in investment income on marketable securities and corporate-owned life insurance policies also contributed to the earnings reduction. EARNINGS TELECONFERENCE A conference call to discuss the results will be held on Thursday, May 1, 2025, at 9 a.m. ET. All participants must pre-register to join this conference using the Participant Registration link. A webcast link to the conference call will be provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay will be available following the call through the end of the day, Thursday, May 8, 2025. To access the replay, dial 1-866-813-9403 and provide Access Code 458634. 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.nationalfuel.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: 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; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in economic conditions, including the imposition of additional tariffs on U.S. imports and related retaliatory tariffs, inflationary pressures, supply chain issues, liquidity challenges, and 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 Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; impairments under the SEC’s full cost ceiling test for natural gas reserves; changes in the price of natural gas; 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 price differentials between similar quantities of natural gas 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, including the impact of issues that may arise from the use of artificial intelligence technologies; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, water availability and disposal or recycling opportunities of used water, 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; the Company’s ability to complete strategic transactions; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; 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 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; negotiations with the collective bargaining units representing the Company’s workforce, including potential work stoppages during negotiations; uncertainty of natural gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); 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, as well as economic and operational disruptions due to third-party outages; 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 COMPANYAND SUBSIDIARIESGUIDANCE SUMMARY As discussed on page 2, the Company is revising its adjusted earnings per share guidance for fiscal 2025. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below. The revised adjusted earnings per share guidance range excludes certain items that impacted the comparability of adjusted operating results during the six months ended March 31, 2025, including: (1) the after tax impairment of assets, which reduced earnings by $1.14 per share; (2) after-tax premiums paid on early redemptions of debt, which reduced earnings by $0.02 per share; (3) after-tax unrealized losses on a derivative asset, which reduced earnings by $0.01 per share; and (4) after-tax unrealized losses on other investments, which reduced earnings by $0.02 per share. While the Company expects to record certain adjustments to unrealized gain or loss on a derivative asset and unrealized gain or loss on investments during the remaining six months ending September 30, 2025, 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. Previous FY 2025 GuidanceUpdated FY 2025 GuidanceConsolidated Adjusted Earnings per Share$6.50 to $7.00$6.75 to $7.05Consolidated Effective Tax Rate~ 25%~ 25%Capital Expenditures(Millions)Exploration and Production$495 - $515$495 - $515Pipeline and Storage$130 - $150$130 - $150Gathering$95 - $110$95 - $110Utility$165 - $185$165 - $185Consolidated Capital Expenditures$885 - $960$885 - $960Exploration and Production Segment GuidanceCommodity Price Assumptions (remaining six months)NYMEX natural gas price$3.50 /MMBtu$3.50 /MMBtuAppalachian basin spot price$2.90 /MMBtu$2.60 /MMBtuRealized natural gas prices, after hedging ($/Mcf)$2.77 - $2.81$2.72 - $2.76Production (Bcf)410 to 425415 to 425E&P Operating Costs($/Mcf)LOE$0.68 - $0.70$0.68 - $0.69G&A$0.18 - $0.19$0.18 - $0.19DD&A$0.63 - $0.67$0.63 - $0.65Other Business Segment Guidance(Millions)Gathering Segment Revenues$250 - $260$250 - $260Pipeline and Storage Segment Revenues$415 - $435$415 - $435Utility Segment Guidance(Millions)Customer Margin*$445 - $465$445 - $465O&M Expense$240 - $250$240 - $245Non-Service Pension & OPEB Income$23 - $27$23 - $27* Customer Margin is defined as Operating Revenues less Purchased Gas Expense. NATIONAL FUEL GAS COMPANYRECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGSQUARTER ENDED MARCH 31, 2025(Unaudited)UpstreamMidstreamDownstreamExploration &Pipeline &Corporate /(Thousands of Dollars)ProductionStorageGatheringUtilityAll OtherConsolidated*Second quarter 2024 GAAP earnings$62,065$30,737$28,706$44,739$25$166,272Items impacting comparability:Unrealized (gain) loss on derivative asset(536)(536)Tax impact of unrealized (gain) loss on derivative asset147147Unrealized (gain) loss on other investments(769)(769)Tax impact of unrealized (gain) loss on other investments162162Second quarter 2024 adjusted operating results61,67630,73728,70644,739(582)165,276Drivers of adjusted operating results**Upstream RevenuesHigher (lower) natural gas production5,3225,322Higher (lower) realized natural gas prices, after hedging31,95631,956Midstream RevenuesHigher (lower) operating revenues1,2278192,046Downstream Margins***Impact of usage and weather3,0113,011Impact of new rates in New York14,57714,577Higher (lower) other operating revenues(924)(924)Operating ExpensesLower (higher) lease operating and transportation expenses(1,196)(1,196)Lower (higher) operating expenses(1,855)(1,248)(1,168)(3,330)(7,601)Lower (higher) property, franchise and other taxes(948)(948)Lower (higher) depreciation / depletion6,973745(966)(685)6,067Other Income (Expense)Higher (lower) other income8,5456129,157(Higher) lower interest expense331(891)(1,895)(2,902)(5,357)Income TaxesLower (higher) income tax expense / effective tax rate(2,331)241463(545)(159)(2,331)All other / rounding(479)(326)7751(45)(722)Second quarter 2025 adjusted operating results99,11831,70727,04063,544(3,076)218,333Items impacting comparability:Premiums paid on early redemption of debt(1,430)(955)(2,385)Tax impact of premiums paid on early redemption of debt385257642Unrealized gain (loss) on derivative asset(335)(335)Tax impact of unrealized gain (loss) on derivative asset9090Unrealized gain (loss) on other investments1717Tax impact of unrealized gain (loss) on other investments(4)(4)Second quarter 2025 GAAP earnings$97,828$31,707$26,342$63,544$(3,063)$216,358* Amounts do not reflect intercompany eliminations.** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.*** Downstream margin defined as operating revenues less purchased gas expense. NATIONAL FUEL GAS COMPANYRECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHAREQUARTER ENDED MARCH 31, 2025(Unaudited)UpstreamMidstreamDownstreamExploration &Pipeline &Corporate /ProductionStorageGatheringUtilityAll OtherConsolidated*Second quarter 2024 GAAP earnings per share$0.67$0.33$0.31$0.48$0.01$1.80Items impacting comparability:Unrealized (gain) loss on derivative asset, net of tax——Unrealized (gain) loss on other investments, net of tax(0.01)(0.01)Second quarter 2024 adjusted operating results per share0.670.330.310.48—1.79Drivers of adjusted operating results**Upstream RevenuesHigher (lower) natural gas production0.060.06Higher (lower) realized natural gas prices, after hedging0.350.35Midstream RevenuesHigher (lower) operating revenues0.010.010.02Downstream Margins***Impact of usage and weather0.030.03Impact of new rates in New York0.160.16Higher (lower) other operating revenues(0.01)(0.01)Operating ExpensesLower (higher) lease operating and transportation expenses(0.01)(0.01)Lower (higher) operating expenses(0.02)(0.01)(0.01)(0.04)(0.08)Lower (higher) property, franchise and other taxes(0.01)(0.01)Lower (higher) depreciation / depletion0.090.01(0.01)(0.01)0.08Other Income (Expense)Higher (lower) other income0.090.010.10(Higher) lower interest expense—(0.01)(0.02)(0.03)(0.06)Income TaxesLower (higher) income tax expense / effective tax rate(0.03)—0.01(0.01)—(0.03)All other / rounding(0.02)0.01—0.03(0.02)—Second quarter 2025 adjusted operating results per share1.080.350.300.70(0.04)2.39Items impacting comparability:Premiums paid on early redemption of debt, net of tax(0.01)(0.01)(0.02)Unrealized gain (loss) on derivative asset, net of tax——Unrealized gain (loss) on other investments, net of tax——Second quarter 2025 GAAP earnings per share$1.07$0.35$0.29$0.70$(0.04)$2.37* Amounts do not reflect intercompany eliminations.** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.*** Downstream margin defined as operating revenues less purchased gas expense. NATIONAL FUEL GAS COMPANYRECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGSSIX MONTHS ENDED MARCH 31, 2025(Unaudited)UpstreamMidstreamDownstreamExploration &Pipeline &Corporate /(Thousands of Dollars)ProductionStorageGatheringUtilityAll OtherConsolidated*Six months ended March 31, 2024 GAAP earnings$114,548$54,792$57,531$71,289$1,132$299,292Items impacting comparability:Unrealized (gain) loss on derivative asset3,6623,662Tax impact of unrealized (gain) loss on derivative asset(1,004)(1,004)Unrealized (gain) loss on other investments(1,818)(1,818)Tax impact of unrealized (gain) loss on other investments382382Six months ended March 31, 2024 adjusted operating results117,20654,79257,53171,289(304)300,514Drivers of adjusted operating results**Upstream RevenuesHigher (lower) natural gas production(817)(817)Higher (lower) realized natural gas prices, after hedging33,96433,964Midstream RevenuesHigher (lower) operating revenues10,865(332)10,533Downstream Margins***Impact of usage and weather2,6852,685Impact of new rates in New York22,44222,442Higher (lower) other operating revenues(1,364)(1,364)Operating ExpensesLower (higher) operating expenses(1,742)(2,105)(1,108)(4,575)(9,530)Lower (higher) property, franchise and other taxes(746)(746)Lower (higher) depreciation / depletion13,816452(1,802)(1,309)11,157Other Income (Expense)Higher (lower) other income(1,888)(603)11,7202,30011,529(Higher) lower interest expense328(1,271)(3,679)(3,165)(7,787)Income TaxesLower (higher) income tax expense / effective tax rate(2,338)(246)905(1,128)43(2,764)All other / rounding(226)679262(38)(219)458Six months ended March 31, 2025 adjusted operating results157,22964,16254,18596,043(1,345)370,274Items impacting comparability:Impairment of assets(141,802)(141,802)Tax impact of impairment of assets37,16937,169Premiums paid on early redemption of debt(1,430)(955)(2,385)Tax impact of premiums paid on early redemption of debt385257642Unrealized gain (loss) on derivative asset(684)(684)Tax impact of unrealized gain (loss) on derivative asset184184Unrealized gain (loss) on other investments(2,600)(2,600)Tax impact of unrealized gain (loss) on other investments546546Six months ended March 31, 2025 GAAP earnings$51,051$64,162$53,487$96,043$(3,399)$261,344* Amounts do not reflect intercompany eliminations.** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.*** Downstream margin defined as operating revenues less purchased gas expense. NATIONAL FUEL GAS COMPANYRECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARESIX MONTHS ENDED MARCH 31, 2025(Unaudited)UpstreamMidstreamDownstreamExploration &Pipeline &Corporate /ProductionStorageGatheringUtilityAll OtherConsolidated*Six months ended March 31, 2024 GAAP earnings per share$1.24$0.59$0.62$0.77$0.02$3.24Items impacting comparability:Unrealized (gain) loss on derivative asset, net of tax0.030.03Unrealized (gain) loss on other investments, net of tax(0.02)(0.02)Six months ended March 31, 2024 adjusted operating results per share1.270.590.620.77—3.25Drivers of adjusted operating results**Upstream RevenuesHigher (lower) natural gas production(0.01)(0.01)Higher (lower) realized natural gas prices, after hedging0.370.37Midstream RevenuesHigher (lower) operating revenues0.12—0.12Downstream Margins***Impact of usage and weather0.030.03Impact of new rates in New York0.250.25Higher (lower) other operating revenues(0.01)(0.01)Operating ExpensesLower (higher) operating expenses(0.02)(0.02)(0.01)(0.05)(0.10)Lower (higher) property, franchise and other taxes(0.01)(0.01)Lower (higher) depreciation / depletion0.15—(0.02)(0.01)0.12Other Income (Expense)Higher (lower) other income(0.02)(0.01)0.130.030.13(Higher) lower interest expense—(0.01)(0.04)(0.03)(0.08)Income TaxesLower (higher) income tax expense / effective tax rate(0.03)—0.01(0.01)—(0.03)All other / rounding0.020.020.01(0.01)(0.01)0.03Six months ended March 31, 2025 adjusted operating results per share1.720.700.601.05(0.01)4.06Items impacting comparability:Impairment of assets, net of tax(1.14)(1.14)Premiums paid on early redemption of debt, net of tax(0.01)(0.01)(0.02)Unrealized gain (loss) on derivative asset, net of tax(0.01)(0.01)Unrealized gain (loss) on other investments, net of tax(0.02)(0.02)Rounding(0.01)(0.01)Six months ended March 31, 2025 GAAP earnings per share$0.56$0.70$0.59$1.05$(0.04)$2.86* Amounts do not reflect intercompany eliminations.** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.*** Downstream margin defined as operating revenues less purchased gas expense. NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES(Thousands of Dollars, except per share amounts)Three Months EndedSix Months EndedMarch 31,March 31,(Unaudited)(Unaudited)SUMMARY OF OPERATIONS2025202420252024Operating Revenues:Utility Revenues$343,574$290,198$571,998$492,119Exploration and Production and Other Revenues311,958264,614560,818518,633Pipeline and Storage and Gathering Revenues74,41875,127146,616144,549729,950629,9391,279,4321,155,301Operating Expenses:Purchased Gas135,338105,940200,675162,491Operation and Maintenance:Utility63,44759,288118,691112,993Exploration and Production and Other35,05932,79468,60067,620Pipeline and Storage and Gathering42,36339,34078,30474,303Property, Franchise and Other Taxes25,21423,01947,27045,434Depreciation, Depletion and Amortization111,277118,935220,647234,725Impairment of Assets——141,802—412,698379,316875,989697,566Operating Income317,252250,623403,443457,735Other Income (Expense):Other Income (Deductions)15,2326,07022,9529,801Interest Expense on Long-Term Debt(39,662)(28,453)(73,024)(56,915)Other Interest Expense(5,095)(6,636)(9,476)(12,910)Income Before Income Taxes287,727221,604343,895397,711Income Tax Expense71,36955,33282,55198,419Net Income Available for Common Stock$216,358$166,272$261,344$299,292Earnings Per Common ShareBasic$2.39$1.81$2.88$3.25Diluted$2.37$1.80$2.86$3.24Weighted Average Common Shares:Used in Basic Calculation90,500,16292,114,41590,640,33392,011,772Used in Diluted Calculation91,176,32792,512,44791,312,33492,478,604 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Unaudited)March 31,September 30,(Thousands of Dollars)20252024ASSETSProperty, Plant and Equipment$14,834,817$14,524,798Less - Accumulated Depreciation, Depletion and Amortization7,487,6187,185,593Net Property, Plant and Equipment7,347,1997,339,205Current Assets:Cash and Temporary Cash Investments39,95438,222Cash Held in Trust for Bondholders51,352—Receivables - Net291,132127,222Unbilled Revenue49,07715,521Gas Stored Underground6,41335,055Materials and Supplies - at average cost48,45147,670Unrecovered Purchased Gas Costs3,562—Other Current Assets78,53292,229Total Current Assets568,473355,919Other Assets:Recoverable Future Taxes88,62380,084Unamortized Debt Expense7,1665,604Other Regulatory Assets118,800108,022Deferred Charges69,57269,662Other Investments71,95881,705Goodwill5,4765,476Prepaid Pension and Post-Retirement Benefit Costs194,325180,230Fair Value of Derivative Financial Instruments4587,905Other8,3265,958Total Other Assets564,291624,646Total Assets$8,479,963$8,319,770CAPITALIZATION AND LIABILITIESCapitalization:Comprehensive Shareholders' EquityCommon Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued andOutstanding - 90,397,698 Shares and 91,005,993 Shares, Respectively$90,398$91,006Paid in Capital1,042,8221,045,487Earnings Reinvested in the Business1,855,3661,727,326Accumulated Other Comprehensive Loss(222,975)(15,476)Total Comprehensive Shareholders' Equity2,765,6112,848,343Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs2,381,1262,188,243Total Capitalization5,146,7375,036,586Current and Accrued Liabilities:Notes Payable to Banks and Commercial Paper208,40090,700Current Portion of Long-Term Debt350,000500,000Accounts Payable127,611165,068Amounts Payable to Customers34,39342,720Dividends Payable46,55546,872Interest Payable on Long-Term Debt19,45427,247Customer Advances—19,373Customer Security Deposits30,35836,265Other Accruals and Current Liabilities184,925162,903Fair Value of Derivative Financial Instruments201,4644,744Total Current and Accrued Liabilities1,203,1601,095,892Other Liabilities:Deferred Income Taxes1,072,4361,111,165Taxes Refundable to Customers302,293305,645Cost of Removal Regulatory Liability300,256292,477Other Regulatory Liabilities140,828151,452Other Post-Retirement Liabilities3,4043,511Asset Retirement Obligations193,802203,006Other Liabilities117,047120,036Total Other Liabilities2,130,0662,187,292Commitments and Contingencies——Total Capitalization and Liabilities$8,479,963$8,319,770 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)Six Months EndedMarch 31,(Thousands of Dollars)20252024Operating Activities:Net Income Available for Common Stock$261,344$299,292Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:Impairment of Assets141,802—Depreciation, Depletion and Amortization220,647234,725Deferred Income Taxes25,78765,187Premiums Paid on Early Redemption of Debt2,385—Stock-Based Compensation10,48710,477Other14,31711,874Change in:Receivables and Unbilled Revenue(197,553)(50,123)Gas Stored Underground and Materials and Supplies27,86125,675Unrecovered Purchased Gas Costs(3,562)—Other Current Assets13,73715,201Accounts Payable17,322(15,641)Amounts Payable to Customers(8,327)13,327Customer Advances(19,373)(21,003)Customer Security Deposits(5,907)1,836Other Accruals and Current Liabilities21,52826,927Other Assets(20,282)(22,165)Other Liabilities(28,343)(9,328)Net Cash Provided by Operating Activities$473,870$586,261Investing Activities:Capital Expenditures$(434,260)$(481,958)Other8,881(1,189)Net Cash Used in Investing Activities$(425,379)$(483,147)Financing Activities:Changes in Notes Payable to Banks and Commercial Paper117,700(8,600)Shares Repurchased Under Repurchase Plan(50,471)(4,230)Reduction of Long-Term Debt(954,086)—Net Proceeds From Issuance of Long-Term Debt989,019—Dividends Paid on Common Stock(93,543)(91,048)Net Repurchases of Common Stock Under Stock and Benefit Plans(4,026)(3,914)Net Cash Provided by (Used in) Financing Activities$4,593$(107,792)Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash53,084(4,678)Cash, Cash Equivalents, and Restricted Cash at Beginning of Period38,22255,447Cash, Cash Equivalents, and Restricted Cash at March 31$91,306$50,769 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESSEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED)UPSTREAM BUSINESSThree Months EndedSix Months Ended(Thousands of Dollars, except per share amounts)March 31,March 31,EXPLORATION AND PRODUCTION SEGMENT20252024Variance20252024VarianceTotal Operating Revenues$311,958$264,614$47,344$560,818$518,633$42,185Operating Expenses:Operation and Maintenance:General and Administrative Expense18,84717,1651,68238,17334,9583,215Lease Operating and Transportation Expense71,17669,6621,514136,816136,73680All Other Operation and Maintenance Expense3,3102,6446667,1788,188(1,010)Property, Franchise and Other Taxes4,2753,0751,2007,6576,713944Depreciation, Depletion and Amortization64,62273,448(8,826)127,925145,413(17,488)Impairment of Assets———141,802—141,802162,230165,994(3,764)459,551332,008127,543Operating Income149,72898,62051,108101,267186,625(85,358)Other Income (Expense):Non-Service Pension and Post-Retirement Benefit Credit37100(63)74201(127)Interest and Other Income (Deductions)1011,170(1,069)373(342)715Interest Expense on Long-Term Debt(1,949)—(1,949)(1,949)—(1,949)Other Interest Expense(15,091)(15,108)17(30,291)(30,377)86Income Before Income Taxes132,82684,78248,04469,474156,107(86,633)Income Tax Expense34,99822,71712,28118,42341,559(23,136)Net Income$97,828$62,065$35,763$51,051$114,548$(63,497)Net Income Per Share (Diluted)$1.07$0.67$0.40$0.56$1.24$(0.68) NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESSEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED)MIDSTREAM BUSINESSESThree Months EndedSix Months Ended(Thousands of Dollars, except per share amounts)March 31,March 31,PIPELINE AND STORAGE SEGMENT20252024Variance20252024VarianceRevenues from External Customers$71,185$71,210$(25)$139,935$136,036$3,899Intersegment Revenues38,38836,8101,57876,25166,3979,854Total Operating Revenues109,573108,0201,553216,186202,43313,753Operating Expenses:Purchased Gas162325(163)121926(805)Operation and Maintenance30,64229,0621,58057,67755,0132,664Property, Franchise and Other Taxes8,6008,600—17,26617,320(54)Depreciation, Depletion and Amortization18,54719,490(943)37,13237,704(572)57,95157,477474112,196110,9631,233Operating Income51,62250,5431,079103,99091,47012,520Other Income (Expense):Non-Service Pension and Post-Retirement Benefit Credit9521,257(305)1,9052,515(610)Interest and Other Income1,7942,046(252)3,8333,978(145)Interest Expense(11,700)(12,119)419(23,428)(23,843)415Income Before Income Taxes42,66841,72794186,30074,12012,180Income Tax Expense10,96110,990(29)22,13819,3282,810Net Income$31,707$30,737$970$64,162$54,792$9,370Net Income Per Share (Diluted)$0.35$0.33$0.02$0.70$0.59$0.11Three Months EndedSix Months EndedMarch 31,March 31,GATHERING SEGMENT20252024Variance20252024VarianceRevenues from External Customers$3,233$3,917$(684)$6,681$8,513$(1,832)Intersegment Revenues61,79760,0761,721119,480118,0681,412Total Operating Revenues65,03063,9931,037126,161126,581(420)Operating Expenses:Operation and Maintenance12,27510,7961,47921,70320,3001,403Property, Franchise and Other Taxes794(87)(227)117(344)Depreciation, Depletion and Amortization10,8349,6111,22321,34919,0682,28123,11620,5012,61542,82539,4853,340Operating Income41,91443,492(1,578)83,33687,096(3,760)Other Income (Expense):Non-Service Pension and Post-Retirement Benefit Credit (Costs)—9(9)(1)19(20)Interest and Other Income9372211521439Interest Expense on Long-Term Debt(1,334)—(1,334)(1,334)—(1,334)Other Interest Expense(4,450)(3,701)(749)(8,661)(7,431)(1,230)Income Before Income Taxes36,22339,872(3,649)73,49279,827(6,335)Income Tax Expense9,88111,166(1,285)20,00522,296(2,291)Net Income$26,342$28,706$(2,364)$53,487$57,531$(4,044)Net Income Per Share (Diluted)$0.29$0.31$(0.02)$0.59$0.62$(0.03) NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESSEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED)DOWNSTREAM BUSINESSThree Months EndedSix Months Ended(Thousands of Dollars, except per share amounts)March 31,March 31,UTILITY SEGMENT20252024Variance20252024VarianceRevenues from External Customers$343,574$290,198$53,376$571,998$492,119$79,879Intersegment Revenues119306(187)203393(190)Total Operating Revenues343,693290,50453,189572,201492,51279,689Operating Expenses:Purchased Gas171,777140,83630,941273,249224,88648,363Operation and Maintenance64,44460,2294,215120,704114,9135,791Property, Franchise and Other Taxes12,20211,1131,08922,31321,0191,294Depreciation, Depletion and Amortization17,13516,26886733,96232,3051,657265,558228,44637,112450,228393,12357,105Operating Income78,13562,05816,077121,97399,38922,584Other Income (Expense):Non-Service Pension and Post-Retirement Benefit Credit12,29985711,44218,1701,32716,843Interest and Other Income7141,340(626)1,2423,250(2,008)Interest Expense(10,927)(8,528)(2,399)(21,643)(16,986)(4,657)Income Before Income Taxes80,22155,72724,494119,74286,98032,762Income Tax Expense16,67710,9885,68923,69915,6918,008Net Income$63,544$44,739$18,805$96,043$71,289$24,754Net Income Per Share (Diluted)$0.70$0.48$0.22$1.05$0.77$0.28 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESSEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED)Three Months EndedSix Months Ended(Thousands of Dollars, except per share amounts)March 31,March 31,ALL OTHER20252024Variance20252024VarianceTotal Operating Revenues$—$—$—$—$—$—Operating Expenses:Operation and Maintenance————————————Operating Income——————Other Income (Expense):Interest and Other Income (Deductions)(222)(41)(181)(358)(119)(239)Interest Expense(131)(84)(47)(248)(165)(83)Loss before Income Taxes(353)(125)(228)(606)(284)(322)Income Tax Benefit(82)(29)(53)(141)(67)(74)Net Loss$(271)$(96)$(175)$(465)$(217)$(248)Net Loss Per Share (Diluted)$—$—$—$(0.01)$—$(0.01)Three Months EndedSix Months EndedMarch 31,March 31,CORPORATE20252024Variance20252024VarianceRevenues from External Customers$—$—$—$—$—$—Intersegment Revenues1,3411,286552,6832,571112Total Operating Revenues1,3411,286552,6832,571112Operating Expenses:Operation and Maintenance5,2195,121989,2668,916350Property, Franchise and Other Taxes130137(7)261265(4)Depreciation, Depletion and Amortization13911821279235445,4885,3761129,8069,416390Operating Loss(4,147)(4,090)(57)(7,123)(6,845)(278)Other Income (Expense):Non-Service Pension and Post-Retirement Benefit Costs(212)(387)175(423)(774)351Interest and Other Income41,78540,2341,55182,84681,2621,584Interest Expense on Long-Term Debt(36,379)(28,453)(7,926)(69,741)(56,915)(12,826)Other Interest Expense(4,905)(7,683)2,778(10,066)(15,767)5,701Income (Loss) before Income Taxes(3,858)(379)(3,479)(4,507)961(5,468)Income Tax Benefit(1,066)(500)(566)(1,573)(388)(1,185)Net Income (Loss)$(2,792)$121$(2,913)$(2,934)$1,349$(4,283)Net Income (Loss) Per Share (Diluted)$(0.04)$0.01$(0.05)$(0.03)$0.02$(0.05)Three Months EndedSix Months EndedMarch 31,March 31,INTERSEGMENT ELIMINATIONS20252024Variance20252024VarianceIntersegment Revenues$(101,645)$(98,478)$(3,167)$(198,617)$(187,429)$(11,188)Operating Expenses:Purchased Gas(36,601)(35,221)(1,380)(72,695)(63,321)(9,374)Operation and Maintenance(65,044)(63,257)(1,787)(125,922)(124,108)(1,814)(101,645)(98,478)(3,167)(198,617)(187,429)(11,188)Operating Income——————Other Income (Expense):Interest and Other Deductions(42,109)(40,587)(1,522)(84,861)(81,659)(3,202)Interest Expense42,10940,5871,52284,86181,6593,202Net Income$—$—$—$—$—$—Net Income Per Share (Diluted)$—$—$—$—$—$— NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESSEGMENT INFORMATION (Continued)(Thousands of Dollars)Three Months EndedSix Months EndedMarch 31,March 31,(Unaudited)(Unaudited)IncreaseIncrease20252024(Decrease)20252024(Decrease)Capital Expenditures:Exploration and Production$108,384(1)$124,184(3)$(15,800)$230,986(1)(2)$285,141(3)(4)$(54,155)Pipeline and Storage15,626(1)18,025(3)(2,399)35,417(1)(2)42,579(3)(4)(7,162)Gathering18,499(1)19,949(3)(1,450)31,526(1)(2)39,518(3)(4)(7,992)Utility41,867(1)37,741(3)4,12678,298(1)(2)68,251(3)(4)10,047Total Reportable Segments184,376199,899(15,523)376,227435,489(59,262)All Other——————Corporate17412153378182196Eliminations(3,520)—(3,520)(3,520)—(3,520)Total Capital Expenditures$181,030$200,020$(18,990)$373,085$435,671$(62,586) (1)Capital expenditures for the quarter and six months ended March 31, 2025, include accounts payable and accrued liabilities related to capital expenditures of $44.8 million, $2.4 million, $6.8 million, and $4.8 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, 2025, since they represent non-cash investing activities at that date.(2)Capital expenditures for the six months ended March 31, 2025, exclude capital expenditures of $63.3 million, $14.4 million, $21.7 million and $20.6 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, 2024 and paid during the six months ended March 31, 2025. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2024, 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, 2025.(3)Capital expenditures for the quarter and six months ended March 31, 2024, include accounts payable and accrued liabilities related to capital expenditures of $44.4 million, $5.0 million, $5.5 million, and $8.0 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were excluded from the Consolidated Statement of Cash Flows at March 31, 2024, since they represented non-cash investing activities at that date.(4)Capital expenditures for the six months ended March 31, 2024, exclude capital expenditures of $43.2 million, $31.8 million, $20.6 million and $13.6 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, 2023 and paid during the six months ended March 31, 2024. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2023, 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, 2024. DEGREE DAYSPercent Colder(Warmer) Than:Three Months Ended March 31,Normal20252024Normal(1)Last Year(1)Buffalo, NY(2)3,2263,1162,705(3.4)15.2Erie, PA3,0233,0172,576(0.2)17.1Six Months Ended March 31,Buffalo, NY(2)5,3525,0004,563(6.6)9.6Erie, PA4,9174,7144,240(4.1)11.2 (1)Percents compare actual 2025 degree days to normal degree days and actual 2025 degree days to actual 2024 degree days.(2)Normal degree days changed from NOAA 30-year degree days to NOAA 15-year degree days with the implementation of new base rates in New York effective October 2024. NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESEXPLORATION AND PRODUCTION INFORMATIONThree Months EndedSix Months EndedMarch 31,March 31,IncreaseIncrease20252024(Decrease)20252024(Decrease)Gas Production/Prices:Production (MMcf)Appalachia105,514102,8832,631203,232203,640(408)Average Prices (Per Mcf)Weighted Average$3.02$1.98$1.04$2.64$2.14$0.50Weighted Average after Hedging$2.94$2.56$0.38$2.74$2.53$0.21Selected Operating Performance Statistics:General and Administrative Expense per Mcf(1)$0.18$0.17$0.01$0.19$0.17$0.02Lease Operating and Transportation Expense per Mcf(1)(2)$0.67$0.68$(0.01)$0.67$0.67$—Depreciation, Depletion and Amortization per Mcf(1)$0.61$0.71$(0.10)$0.63$0.71$(0.08) (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 per Mcf for the three months ended March 31, 2025 and March 31, 2024. Amounts include transportation expense of $0.57 per Mcf for the six months ended March 31, 2025 and March 31, 2024. NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESPipeline and Storage Throughput - (millions of cubic feet - MMcf)Three Months EndedSix Months EndedMarch 31,March 31,IncreaseIncrease20252024(Decrease)20252024(Decrease)Firm Transportation - Affiliated49,24042,5616,67981,11074,0567,054Firm Transportation - Non-Affiliated185,490179,6975,793356,502348,3038,199Interruptible Transportation4541,271(817)5151,389(874)235,184223,52911,655438,127423,74814,379Gathering Volume - (MMcf)Three Months EndedSix Months EndedMarch 31,March 31,IncreaseIncrease20252024(Decrease)20252024(Decrease)Gathered Volume129,771125,5654,206250,732249,3881,344Utility Throughput - (MMcf)Three Months EndedSix Months EndedMarch 31,March 31,IncreaseIncrease20252024(Decrease)20252024(Decrease)Retail Sales:Residential Sales32,11127,0635,04850,58745,0455,542Commercial Sales5,4204,2931,1278,3397,0931,246Industrial Sales30219011250132717437,83331,5466,28759,42752,4656,962Transportation25,08622,6372,44942,02840,1661,86262,91954,1838,736101,45592,6318,824 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESNON-GAAP FINANCIAL MEASURES In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding adjusted operating results, adjusted EBITDA and free cash flow, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company's ongoing operating results or liquidity and for comparing the Company’s financial performance to other companies. The Company's management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP. Management defines adjusted operating results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel's reported GAAP earnings to adjusted operating results for the three and six months ended March 31, 2025 and 2024: Three Months EndedSix Months EndedMarch 31,March 31,(in thousands except per share amounts)2025202420252024Reported GAAP Earnings$216,358$166,272$261,344$299,292Items impacting comparability:Impairment of assets (E&P)——141,802—Tax impact of impairment of assets——(37,169)—Premiums paid on early redemption of debt (E&P / Midstream)2,385—2,385—Tax impact of premiums paid on early redemption of debt(642)—(642)—Unrealized (gain) loss on derivative asset (E&P)335(536)6843,662Tax impact of unrealized (gain) loss on derivative asset(90)147(184)(1,004)Unrealized (gain) loss on other investments (Corporate / All Other)(17)(769)2,600(1,818)Tax impact of unrealized (gain) loss on other investments4162(546)382Adjusted Operating Results$218,333$165,276$370,274$300,514Reported GAAP Earnings Per Share$2.37$1.80$2.86$3.24Items impacting comparability:Impairment of assets, net of tax (E&P)——1.14—Premiums paid on early redemption of debt, net of tax (E&P / Midstream)0.02—0.02—Unrealized (gain) loss on derivative asset, net of tax (E&P)——0.010.03Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)—(0.01)0.02(0.02)Rounding——0.01—Adjusted Operating Results Per Share$2.39$1.79$4.06$3.25 Management defines 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. The following tables reconcile National Fuel's reported GAAP earnings to adjusted EBITDA for the three and six months ended March 31, 2025 and 2024: Three Months EndedSix Months EndedMarch 31,March 31,(in thousands)2025202420252024Reported GAAP Earnings$216,358$166,272$261,344$299,292Depreciation, Depletion and Amortization111,277118,935220,647234,725Other (Income) Deductions(15,232)(6,070)(22,952)(9,801)Interest Expense44,75735,08982,50069,825Income Taxes71,36955,33282,55198,419Impairment of Assets——141,802—Adjusted EBITDA$428,529$369,558$765,892$692,460Adjusted EBITDA by SegmentPipeline and Storage Adjusted EBITDA$70,169$70,033$141,122$129,174Gathering Adjusted EBITDA52,74853,103104,685106,164Total Midstream Businesses Adjusted EBITDA122,917123,136245,807235,338Exploration and Production Adjusted EBITDA214,350172,068370,994332,038Utility Adjusted EBITDA95,27078,326155,935131,694Corporate and All Other Adjusted EBITDA(4,008)(3,972)(6,844)(6,610)Total Adjusted EBITDA$428,529$369,558$765,892$692,460 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESNON-GAAP FINANCIAL MEASURESSEGMENT ADJUSTED EBITDAThree Months EndedSix Months EndedMarch 31,March 31,(in thousands)2025202420252024Exploration and Production SegmentReported GAAP Earnings$97,828$62,065$51,051$114,548Depreciation, Depletion and Amortization64,62273,448127,925145,413Other (Income) Deductions(138)(1,270)(447)141Interest Expense17,04015,10832,24030,377Income Taxes34,99822,71718,42341,559Impairment of Assets——141,802—Adjusted EBITDA$214,350$172,068$370,994$332,038Pipeline and Storage SegmentReported GAAP Earnings$31,707$30,737$64,162$54,792Depreciation, Depletion and Amortization18,54719,49037,13237,704Other (Income) Deductions(2,746)(3,303)(5,738)(6,493)Interest Expense11,70012,11923,42823,843Income Taxes10,96110,99022,13819,328Adjusted EBITDA$70,169$70,033$141,122$129,174Gathering SegmentReported GAAP Earnings$26,342$28,706$53,487$57,531Depreciation, Depletion and Amortization10,8349,61121,34919,068Other (Income) Deductions(93)(81)(151)(162)Interest Expense5,7843,7019,9957,431Income Taxes9,88111,16620,00522,296Adjusted EBITDA$52,748$53,103$104,685$106,164Utility SegmentReported GAAP Earnings$63,544$44,739$96,043$71,289Depreciation, Depletion and Amortization17,13516,26833,96232,305Other (Income) Deductions(13,013)(2,197)(19,412)(4,577)Interest Expense10,9278,52821,64316,986Income Taxes16,67710,98823,69915,691Adjusted EBITDA$95,270$78,326$155,935$131,694Corporate and All OtherReported GAAP Earnings$(3,063)$25$(3,399)$1,132Depreciation, Depletion and Amortization139118279235Other (Income) Deductions7587812,7961,290Interest Expense(694)(4,367)(4,806)(8,812)Income Taxes(1,148)(529)(1,714)(455)Adjusted EBITDA$(4,008)$(3,972)$(6,844)$(6,610) Management defines free cash flow as net cash provided by operating activities, less net cash used in investing activities, adjusted for acquisitions and divestitures. The Company is unable to provide a reconciliation of any projected free cash flow measure to its comparable GAAP financial measure without unreasonable efforts. This is due to an inability to calculate the comparable GAAP projected metrics, including operating income and total production costs, given the unknown effect, timing, and potential significance of certain income statement items. Investor Contact:Natalie M. Fischer716-857-7315Media Contact:Karen L. Merkel716-857-7654