National Fuel Starts Fiscal 2027 Guidance at $6.00 to $6.40

The Tip Desk · November 5, 2026 · 4 min read

The integrated energy company posted fiscal 2026 adjusted earnings of $7.55 a share after closing an Ohio utility deal and announcing a spin of its Appalachian producer.

National Fuel Gas Company (NFG) reported GAAP earnings of $97.5 million, or $1.02 a share, for the quarter ended September 30, 2026, down from $107.3 million, or $1.18 a share, a year earlier. Adjusted earnings held at $1.22 a share, matching the prior-year quarter.

The integrated energy company said the year-over-year GAAP decline reflected transaction and financing costs tied to the CenterPoint Energy Ohio natural gas utility purchase that closed October 1, 2026, and costs related to a planned spin-off of its Integrated Upstream and Gathering business. Corporate and All Other generated a combined net loss of $29.1 million in the fourth quarter, versus a $6.3 million loss a year earlier. Adjusted earnings in that bucket were a $14.7 million loss.

For the full fiscal year ended September 30, 2026, GAAP earnings were $7.02 a share, compared with $5.68 in fiscal 2025. Adjusted earnings rose 9% to $7.55 a share from $6.91. Net cash provided by operating activities was $1,272 million for the twelve months ending September 30, 2026, with free cash flow of $199 million. The company announced its 56th consecutive dividend increase to an annual rate of $2.22 a share.

The Ohio acquisition doubled Utility rate base and added approximately 335,000 utility customers. National Fuel also announced a plan to separate Integrated Upstream and Gathering into a standalone publicly traded company expected to be named Seneca Resources, with the transaction anticipated in the second half of calendar 2027. After the separation, the company said National Fuel will be a fully rate-regulated natural gas company with approximately $5 billion of rate base. It continues to expect a pro rata distribution of at least 80.1% of IUG shares and intends to dispose of a retained interest of up to 19.9% in a tax-efficient manner.

Integrated Upstream and Gathering posted GAAP earnings of $115.4 million in the fourth quarter, up $11.9 million from the year-ago period. Adjusted earnings rose $8.5 million, which the company attributed to higher realized natural gas prices, lower interest expense, and lower income taxes, partially offset by lower production volumes. Adjusted EBITDA was $240.9 million, essentially unchanged from $241.1 million.

Seneca’s weighted average realized natural gas price, after hedging and transportation costs, was $2.80 per Mcf, up $0.19, or 7%, versus the prior year, as hedging gains more than offset wider basis differentials and lower NYMEX prices. Production was 104 Bcf, down 7.5 Bcf, or 7%, as output from recently turned-in-line wells was more than offset by natural declines. Total operating costs were $1.39 per Mcf, $0.12 higher than the year-ago quarter, primarily from higher per-unit lease operating expense and DD&A. Cash operating costs were $0.58 per Mcf.

Seneca’s total proved reserves at September 30, 2026 were 5,191 Bcfe, up 209 Bcfe, or 4%, from a year earlier, after replacing 150% of fiscal 2026 production. Proved developed reserves were 3,707 Bcfe, or 71% of the total.

Pipeline and Storage GAAP earnings decreased $1.7 million to $26.2 million, as higher operating revenues were more than offset by higher O&M and DD&A. Adjusted EBITDA was $61.5 million. Operating revenues increased $1.0 million, primarily from new long-term transportation contracts. O&M expense rose $2.0 million, primarily on higher fuel and material costs. DD&A increased $1.4 million.

The Utility segment’s GAAP loss narrowed to $15.1 million from $17.8 million a year earlier. Adjusted EBITDA increased $1.4 million to $3.4 million. Customer margin rose $6.2 million, primarily from usage, year two of the multi-year joint settlement in New York, and Pennsylvania Distribution System Improvement Charge revenues, partially offset by higher O&M expense, including fuel costs and an increase in uncollectible expense after a non-recurring regulatory benefit in the prior year.

The company is initiating fiscal 2027 adjusted earnings guidance of $6.00 to $6.40 a share, assuming an average NYMEX natural gas price of $2.85 per MMBtu. IUG remains in consolidated results until the planned separation, so the range includes IUG for the full fiscal year. Sensitivities put adjusted EPS at $5.60 to $6.00 at $2.50 per MMBtu, $6.20 to $6.60 at $3.00, and $6.85 to $7.25 at $3.50.

Utility and Pipeline & Storage segment earnings are expected to increase, the company said, from the Ohio acquisition, the New York rate-case settlement, a Pennsylvania base-rate increase, and the Tioga Pathway and Shippingport Lateral projects placed in service on November 1, 2026. Combined capital expenditures for those two segments are expected at $490 million to $580 million. IUG expects fiscal 2027 production of 400 to 435 Bcf and capital expenditures of $600 million to $640 million, including $25 million to $30 million for third-party gathering and non-operated wells, with potential additional discretionary land spending of $50 million to $100 million.