Original source text
WILLIAMSVILLE, N.Y., April 29, 2026 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the second quarter of its 2026 fiscal year.
SECOND QUARTER FISCAL 2026 SUMMARY
GAAP earnings of $247.7 million, or earnings per share (EPS) of $2.59, compared to GAAP earnings of $216.4 million, or $2.37 per share, in the prior year.Adjusted EPS of $2.71, an increase of 13% from the prior year. See non-GAAP reconciliation on page 2.Net cash provided by operating activities of $657 million, with free cash flow of $160 million (as defined on page 22) through the second quarter year-to-date, a $111 million increase from the prior year.Integrated Upstream and Gathering segment adjusted EPS of $1.67, an increase of 21% compared to the prior year, driven by a 17% increase in natural gas price realizations.Utility segment net income of $65 million, an increase of 3% compared to the prior year, as continued investments in system modernization programs in New York and Pennsylvania supported an increase in revenue.Supply Corporation entered into a precedent agreement to provide 94,000 dekatherms per day of incremental capacity in connection with its new Line N System Upgrade Project in southwest Pennsylvania, targeted for completion in late 2028.Commenced construction on both the Tioga Pathway and Shippingport Lateral expansion projects, which remain on track for a late calendar year 2026 in-service date.The Company is revising its fiscal 2026 adjusted EPS guidance range of $7.45 to $7.75 per share, or $7.60 per share at the midpoint. MANAGEMENT COMMENTS
David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel had a solid second quarter, with adjusted EPS increasing 13% over the prior year. Operationally, our resilient natural gas system and dedicated workforce performed extremely well during the severe weather of Winter Storm Fern, delivering the safe and reliable production, transmission, storage, and distribution services that customers across our businesses expect.
“Looking forward, we’ve taken meaningful steps to position National Fuel for the next phase of our long-term growth strategy. In our regulated Pipeline and Storage business, our two major expansion projects are expected to be in-service late this calendar year, and we’ve signed an agreement for another expansion on our Line N system. At the Utility, our Ohio acquisition is on track to close in the calendar fourth quarter. Lastly, in our Integrated Upstream and Gathering business, we have decades of high-quality Appalachian inventory and a great track record of improving capital efficiency. With our ongoing testing to optimize well designs across our development footprint and our focus on continuously improving our integrated development plans, we expect to see further benefits in the future.
“With these positive catalysts across our operations, including line of sight to earnings growth at our regulated businesses and increasing free cash flow generation at our non-regulated businesses, National Fuel is well positioned to deliver long-term value to shareholders.”
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED EARNINGS
Three Months Ended March 31, (Thousands) (Per Share) 2026 2025 2026 2025Reported GAAP Earnings $247,668 $216,358 $2.59 $2.37Items impacting comparability: Costs related to the pending Ohio gas utility acquisition 2,499 — 0.03 —Tax impact of costs related to the pending Ohio acquisition (579) — (0.01) —Impact of equity issuance related to pending Ohio acquisition, net of interest benefits (3,422) — 0.09 —Tax impact of net interest benefit from equity issuance 793 — 0.01 —Other/rounding (refer to Segment results for details) 274 1,975 — 0.02Adjusted Earnings $247,233 $218,333 $2.71 $2.39
FISCAL 2026 GUIDANCE UPDATE
National Fuel is revising its adjusted EPS guidance for fiscal 2026, which is now expected to be within a range of $7.45 to $7.75, or $7.60 at the midpoint. This updated range incorporates second quarter results as well as modest changes to certain assumptions for the remainder of the fiscal year, primarily related to natural gas prices. The Company is now assuming the NYMEX natural gas price will average $3.00 per MMBtu for the remaining six months of fiscal 2026 (a decrease of $0.75 from previous guidance), which approximates the current NYMEX forward curve at this time.
Integrated Upstream and Gathering fiscal 2026 production is now expected to be 425 to 440 Bcf, a moderate decrease from our prior guidance. This decrease reflects the weather impacts during the period around Winter Storm Ferm, which primarily delayed flowback and completion timing. In addition, there were modest production impacts from a six-well pad in Tioga County where tests of a new Gen 4 Lower Utica well design and a new Upper Utica performed as expected, however, older generation Lower Utica wells underperformed projections. While these factors are expected to impact the fiscal year, they do not change the long-term production growth outlook, which we still expect will be in the mid-single digits over the next few years. This guidance range also does not incorporate any price-related curtailments over the remainder of the fiscal year. Capital expenditure guidance remains unchanged; however, higher oil and diesel prices related to the Iranian conflict and increased land activity represent potential headwinds that could result in capital trending toward the higher end of the range.
The acquisition of CenterPoint Energy's Ohio natural gas utility business is expected to close in the fourth quarter of calendar 2026, as previously planned. As a result, this is not expected to impact fiscal 2026 guidance, which also excludes any financing or acquisition-related costs.
The Company’s other fiscal 2026 guidance assumptions remain largely unchanged and are detailed in the table on page 6.
DISCUSSION OF SECOND QUARTER RESULTS BY SEGMENT
The following earnings discussion of each operating segment for the quarter ended March 31, 2026 is summarized in a tabular form on pages 7 and 8 of this report (earnings drivers for the six months ended March 31, 2026 are summarized on pages 9 and 10).
Note that management defines adjusted earnings 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.
Integrated Upstream and Gathering Segment
The Integrated Upstream and Gathering segment's exploration and production operations are carried out by Seneca Resources Company, LLC (“Seneca”) and its gathering operations are carried out by the operating subsidiaries of National Fuel Gas Midstream Company, LLC ("Gathering"). Seneca explores for, develops, and produces primarily natural gas reserves in Pennsylvania. Gathering constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which primarily delivers Seneca's production and, to a lesser extent, third-party Appalachian production to various interstate pipelines.
Three Months Ended March 31,(in thousands) 2026 2025 VarianceGAAP Earnings$152,030 $124,170 $27,860 Premiums paid on early redemption of debt — 2,385 (2,385)Tax impact of premiums paid on early redemption of debt — (642) 642 Unrealized (gain) loss on derivative asset (2022 CA asset sale) — 335 (335)Tax impact of unrealized (gain) loss on derivative asset — (90) 90 Adjusted Earnings$152,030 $126,158 $25,872 Adjusted EBITDA$302,439 $267,098 $35,341
The Integrated Upstream and Gathering segment's second quarter GAAP earnings increased $27.9 million versus the prior year. Excluding items impacting comparability, adjusted earnings increased $25.9 million from the prior year, primarily due to higher realized natural gas prices, partially offset by modestly lower production volumes and additional third-party gathering expenses.
Seneca’s weighted average realized natural gas price, after the impact of hedging and transportation costs, was $3.45 per Mcf, an increase of $0.51 per Mcf, or 17%, from the prior year due to higher NYMEX prices.
During the second quarter, Seneca produced 102.0 Bcf of natural gas, a decrease of 3.5 Bcf, or 3%, from the prior year. During the quarter, production was lower than the prior year due to weather-driven completion delays and typical natural gas production declines on producing wells.
Three Months Ended March 31,(Cost per Mcf) 2026 2025 VarianceUpstream General and Administrative Expense (“G&A”)$0.18 $0.18 $—Lease Operating Expense (“LOE”)$0.17 $0.12 $0.05Adjusted Gathering Operation and Maintenance Expense ("O&M")$0.14 $0.12(1) $0.02Taxes and Other$0.07 $0.07 $—Adjusted Total Cash Operating Costs$0.56 $0.49(1) $0.07Depreciation, Depletion and Amortization Expense (“DD&A”)$0.79 $0.72 $0.07Adjusted Total Operating Costs$1.35 $1.21(1) $0.14 (1)Adjusted Gathering O&M Expense of $0.12 per Mcf for the quarter ended March 31, 2025 excludes a $0.03 per Mcf reduction to Gathering O&M Expense attributed to a change in segment reporting, which is fully offset in operating revenue.
On a per unit basis, second quarter adjusted total operating costs were $0.14 higher compared to the prior year, primarily due to higher per unit LOE and DD&A expense. The increase in per unit LOE compared to the prior year was largely driven by additional third-party gathering expenses due to new production brought online during the quarter, as well as modestly higher costs related to winter weather conditions. The increase in DD&A expense was largely driven by the impact of ceiling test impairments Seneca recorded in fiscal 2025 that artificially lowered the per unit DD&A rate in the prior year.
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) 2026 2025 VarianceGAAP Earnings$31,606 $31,707 $(101) Adjusted EBITDA$71,963 $70,169 $1,794
The Pipeline and Storage segment’s second quarter GAAP earnings were in line with the prior year as an increase in operating revenues was offset by higher expenses, the majority of which was higher DD&A as a result of a higher average depreciable plant in service compared to the prior year.
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 Ended March 31,(in thousands) 2026 2025 VarianceGAAP Earnings$65,349 $63,544 $1,805 Adjusted EBITDA$99,763 $95,270 $4,493
The Utility segment’s second quarter GAAP earnings increased $1.8 million, or 3%, primarily as a result of higher customer margin (operating revenue less purchased gas sold) of $9.1 million. The biggest contributors to increased customer margin were the implementation of year two of the Utility’s three-year rate agreement in New York and revenue from the Utility’s Distribution System Improvement Charge in Pennsylvania. Partially offsetting this was an increase in O&M expense driven by higher employee-related costs (which were largely the result of new collective bargaining agreements) and an increase in uncollectible expense, as well as higher DD&A expense due to a larger average depreciable plant in service compared to the prior year.
Corporate and All Other
The Company’s operations that are included in Corporate and All Other generated a combined net loss of $1.3 million in the second quarter, largely due to transaction and financing costs related to the pending Ohio gas utility acquisition.
EARNINGS TELECONFERENCE
A conference call to discuss the results will be held on Thursday, April 30, 2026, 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 is provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com, and a replay of the webcast will be available on the website following the call.
National Fuel is an integrated energy company reporting financial results for three operating segments: Integrated Upstream and Gathering, Pipeline and Storage, and Utility. Additional information about National Fuel is available at www.nationalfuel.com.
Analyst Contact:Natalie M. Fischer716-857-7315Media Contact:Karen L. Merkel716-857-7654 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: 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 complete strategic transactions, such as the pending transaction with CenterPoint Energy Resources Corp., including receipt of required regulatory clearances and satisfaction of other conditions to closing, and to recognize the anticipated benefits of such transactions; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; changes in the price of natural gas; impairments under the SEC’s full cost ceiling test for natural gas 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, other investments, and acquisitions, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; negotiations with the collective bargaining units representing the Company’s workforce, including potential work stoppages during negotiations; 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; 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; 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 COMPANY
AND SUBSIDIARIES
GUIDANCE SUMMARY
As discussed on page 2, the Company is revising its adjusted earnings per share guidance for fiscal 2026. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below. The acquisition of CenterPoint Energy's Ohio natural gas utility business still is expected to close in the fourth quarter of calendar 2026, as previously planned. As a result, this is not expected to impact fiscal 2026 guidance, which also excludes any financing or acquisition-related costs. Fiscal 2026 adjusted earnings per share guidance also excludes after-tax financing and acquisition related costs during the six months ended March 31, 2026, which reduced earnings by $0.18 per share, and expected financing and acquisition related costs during the six months ending September 30, 2026.
The revised adjusted earnings per share guidance range also excludes certain items that impacted the comparability of adjusted operating results during the six months ended March 31, 2026, including after-tax unrealized losses on other investments, which reduced earnings by $0.01 per share. While the Company expects to record certain adjustments to unrealized gain or loss on investments during the remaining six months ending September 30, 2026, 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 2026 Guidance Updated FY 2026 Guidance Consolidated Adjusted Earnings per Share$7.60 - $8.10 $7.45 - $7.75Consolidated Effective Tax Rate~ 25.5% ~ 25.5% Capital Expenditures (Millions) Integrated Upstream and Gathering$560 - $610 $560 - $610Pipeline and Storage$210 - $250 $210 - $250Utility$185 - $205 $185 - $205 Consolidated Capital Expenditures$955 - $1,065 $955 - $1,065 Integrated Upstream & Gathering Segment Guidance Commodity Price Assumptions(price for remaining nine months) (price for remaining six months)NYMEX natural gas price (per MMBtu)$3.75 $3.00Appalachian basin spot price (per MMBtu)$2.85 $2.20 Production (Bcf)440 to 455 425 to 440 Integrated Operating Costs ($/Mcf) Upstream General and Administrative Expense~$0.18 ~$0.18Lease Operating Expense$0.17 - $0.18 $0.16 - $0.17Gathering Operation and Maintenance Expense~$0.11 ~$0.12Depreciation, Depletion and Amortization$0.76 - $0.81 $0.76 - $0.81 Pipeline and Storage Segment Revenues (Millions)$415 - $430 $420 - $435 Utility Segment Guidance (Millions) Customer Margin(1)$470 - $490 $470 - $490O&M Expense$250 – $260 $250 – $260Non-Service Pension & OPEB Income$23 - $27 $23 - $27 (1) 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, 2026(Unaudited) Integrated Upstream Pipeline & Corporate / (Thousands of Dollars)& Gathering Storage Utility All Other Consolidated(1) Second quarter 2025 GAAP earnings$124,170 $31,707 $63,544 $(3,063) $216,358 Items impacting comparability: Premiums paid on early redemption of debt 2,385 2,385 Tax impact of premiums paid on early redemption of debt (642) (642)Unrealized (gain) loss on derivative asset 335 335 Tax impact of unrealized (gain) loss on derivative asset (90) (90)Unrealized (gain) loss on other investments (17) (17)Tax impact of unrealized (gain) loss on other investments 4 4 Second quarter 2025 adjusted earnings 126,158 31,707 63,544 (3,076) 218,333 Drivers of adjusted earnings(2) Integrated Upstream and Gathering Revenues Higher (lower) natural gas production (8,162) (8,162)Higher (lower) realized natural gas prices, after hedging 40,515 40,515 Higher (lower) other operating revenues 2,560 2,560 Pipeline and Storage Revenues Higher (lower) operating revenues 1,493 1,493 Utility Margins(3) Impact of usage and weather (1,172) (1,172)Impact of new rates in New York 3,128 3,128 Regulatory revenue adjustments 3,562 3,562 Higher (lower) other operating revenues 891 891 Operating Expenses Lower (higher) lease operating expenses (3,846) (3,846)Lower (higher) operating expenses (3,210) (419) (2,911) (1,014) (7,554)Lower (higher) depreciation / depletion (4,023) (1,117) (1,158) (6,298)Other Income (Expense) Higher (lower) other income (525) 1,599 1,074 (Higher) lower interest expense 4,209 564 4,773 Income Taxes Lower (higher) income tax expense / effective tax rate (2,023) 187 (665) 168 (2,333) All other / rounding (148) 280 130 7 269 Second quarter 2026 adjusted earnings 152,030 31,606 65,349 (1,752) 247,233 Items impacting comparability: Costs related to the pending Ohio gas utility acquisition (2,499) (2,499)Tax impact of costs related to the pending Ohio gas utility acquisition 579 579 Net interest benefit from equity issuance 3,422 3,422 Tax impact of net interest benefit from equity issuance (793) (793)Unrealized gain (loss) on other investments (347) (347)Tax impact of unrealized gain (loss) on other investments 73 73 Second quarter 2026 GAAP earnings$152,030 $31,606 $65,349 $(1,317) $247,668 (1)Amounts do not reflect intercompany eliminations.
(2)Drivers of adjusted earnings have been calculated using the 21% federal statutory rate.(3)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, 2026(Unaudited) Integrated Upstream Pipeline & Corporate / & Gathering Storage Utility All Other Consolidated(1) Second quarter 2025 GAAP earnings per share$1.36 $0.35 $0.70 $(0.04) $2.37 Items impacting comparability: Premiums paid on early redemption of debt, net of tax 0.02 0.02 Unrealized (gain) loss on derivative asset, net of tax — — Unrealized (gain) loss on other investments, net of tax — — Second quarter 2025 adjusted earnings per share 1.38 0.35 0.70 (0.04) 2.39 Drivers of adjusted earnings(2)(4) Integrated Upstream and Gathering Revenues Higher (lower) natural gas production (0.09) (0.09)Higher (lower) realized natural gas prices, after hedging 0.44 0.44 Higher (lower) other operating revenues 0.03 0.03 Pipeline and Storage Revenues Higher (lower) operating revenues 0.02 0.02 Utility Margins(3) Impact of usage and weather (0.01) (0.01)Impact of new rates in New York 0.03 0.03 Regulatory revenue adjustments 0.04 0.04 Higher (lower) other operating revenues 0.01 0.01 Operating Expenses Lower (higher) lease operating expenses (0.04) (0.04)Lower (higher) operating expenses (0.04) — (0.03) (0.01) (0.08)Lower (higher) depreciation / depletion (0.04) (0.01) (0.01) (0.06)Other Income (Expense) Higher (lower) other income (0.01) 0.02 0.01 (Higher) lower interest expense 0.05 0.01 0.06 Income Taxes Lower (higher) income tax expense / effective tax rate (0.02) — (0.01) — (0.03) All other / rounding — — (0.01) — (0.01)Second quarter 2026 adjusted earnings per share(4) 1.67 0.35 0.71 (0.02) 2.71 Items impacting comparability(4): Costs related to the pending Ohio gas utility acquisition, net of tax (0.02) (0.02)Impact of equity issuance related to pending acquisition, net of interest benefits (0.08) (0.02) (0.03) 0.03 (0.10)Unrealized gain (loss) on other investments, net of tax — — Second quarter 2026 GAAP earnings per share$1.59 $0.33 $0.68 $(0.01) $2.59 (1)Amounts do not reflect intercompany eliminations.
(2)Drivers of adjusted earnings have been calculated using the 21% federal statutory rate.(3)Downstream margin defined as operating revenues less purchased gas expense.(4)As a result of the equity issuance, drivers of adjusted earnings, second quarter 2026 adjusted earnings per share, and items impacting comparability for the second quarter 2026 have been calculated using adjusted diluted shares of 91,289,437. NATIONAL FUEL GAS COMPANYRECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGSSIX MONTHS ENDED MARCH 31, 2026(Unaudited) Integrated Upstream Pipeline & Corporate / (Thousands of Dollars)& Gathering Storage Utility All Other Consolidated(1)Six months ended March 31, 2025 GAAP earnings$104,538 $64,162 $96,043 $(3,399) $261,344 Items impacting comparability: Impairment of assets 141,802 141,802 Tax impact of impairment of assets (37,169) (37,169)Premiums paid on early redemption of debt 2,385 2,385 Tax impact of premiums paid on early redemption of debt (642) (642)Unrealized (gain) loss on derivative asset 684 684 Tax impact of unrealized (gain) loss on derivative asset (184) (184)Unrealized (gain) loss on other investments 2,600 2,600 Tax impact of unrealized (gain) loss on other investments (546) (546)Six months ended March 31, 2025 adjusted earnings 211,414 64,162 96,043 (1,345) 370,274 Drivers of adjusted earnings(2) Integrated Upstream and Gathering Revenues Higher (lower) natural gas production 17,244 17,244 Higher (lower) realized natural gas prices, after hedging 69,357 69,357 Higher (lower) gathering revenues (1,020) (1,020)Higher (lower) other operating revenues 5,050 5,050 Pipeline and Storage Revenues Higher (lower) operating revenues 1,721 1,721 Utility Margins(3) Impact of usage and weather 1,646 1,646 Impact of new rates in New York 6,077 6,077 Regulatory revenue adjustments 4,552 4,552 Higher (lower) other operating revenues 1,285 1,285 Operating Expenses Lower (higher) lease operating expenses (8,723) (8,723)Lower (higher) operating expenses (5,772) (599) (6,653) (1,953) (14,977)Lower (higher) property, franchise and other taxes (787) (787)Lower (higher) depreciation / depletion (12,273) (1,525) (2,464) (16,262)Other Income (Expense) Higher (lower) other income (688) (1,715) 1,163 (1,240)(Higher) lower interest expense 6,798 (870) (1,313) 4,615 Income Taxes Lower (higher) income tax expense / effective tax rate (4,382) 575 (579) (29) (4,415) All other / rounding (141) 206 402 50 517 Six months ended March 31, 2026 adjusted earnings 276,077 62,825 99,439 (3,427) 434,914 Items impacting comparability: Costs related to the pending Ohio gas utility acquisition (10,186) (10,186)Tax impact of costs related to the pending Ohio gas utility acquisition 2,361 2,361 Net interest benefit from equity issuance 3,931 3,931 Tax impact of net interest benefit from equity issuance (911) (911)Unrealized gain (loss) on other investments (1,008) (1,008)Tax impact of unrealized gain (loss) on other investments 212 212 Six months ended March 31, 2026 GAAP earnings$276,077 $62,825 $99,439 $(9,028) $429,313 (1)Amounts do not reflect intercompany eliminations.
(2)Drivers of adjusted earnings have been calculated using the 21% federal statutory rate.(3)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, 2026(Unaudited) Integrated Upstream Pipeline & Corporate / & Gathering Storage Utility All Other Consolidated(1)Six months ended March 31, 2025 GAAP earnings per share$1.15 $0.70 $1.05 $(0.04) $2.86 Items impacting comparability: Impairment of assets, net of tax 1.14 1.14 Premiums paid on early redemption of debt, net of tax 0.02 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 adjusted earnings per share 2.32 0.70 1.05 (0.01) 4.06 Drivers of adjusted earnings(2)(4) Integrated Upstream and Gathering Revenues Higher (lower) natural gas production 0.19 0.19 Higher (lower) realized natural gas prices, after hedging 0.76 0.76 Higher (lower) gathering revenues (0.01) (0.01)Higher (lower) other operating revenues 0.06 0.06 Pipeline and Storage Revenues Higher (lower) operating revenues 0.02 0.02 Utility Margins(3) Impact of usage and weather 0.02 0.02 Impact of new rates in New York 0.07 0.07 Regulatory revenue adjustments 0.05 0.05 Higher (lower) other operating revenues 0.01 0.01 Operating Expenses Lower (higher) lease operating expenses (0.10) (0.10)Lower (higher) operating expenses (0.06) (0.01) (0.07) (0.02) (0.16)Lower (higher) property, franchise and other taxes (0.01) (0.01)Lower (higher) depreciation / depletion (0.13) (0.02) (0.03) (0.18)Other Income (Expense) Higher (lower) other income (0.01) (0.02) 0.01 (0.02)(Higher) lower interest expense 0.07 (0.01) (0.01) 0.05 Income Taxes Lower (higher) income tax expense / effective tax rate (0.05) 0.01 (0.01) — (0.05) All other / rounding (0.01) 0.01 0.01 — 0.01 Six months ended March 31, 2026 adjusted earnings per share(4) 3.02 0.69 1.09 (0.03) 4.77 Items impacting comparability(4): Costs related to the pending Ohio gas utility acquisition, net of tax (0.09) (0.09)Impact of equity issuance related to pending acquisition, net of interest benefits (0.08) (0.02) (0.03) 0.04 (0.09)Unrealized gain (loss) on other investments, net of tax (0.01) (0.01)Six months ended March 31, 2026 GAAP earnings per share$2.94 $0.67 $1.06 $(0.09) $4.58 (1)Amounts do not reflect intercompany eliminations.
(2)Drivers of adjusted earnings have been calculated using the 21% federal statutory rate.(3)Downstream margin defined as operating revenues less purchased gas expense.(4)As a result of the equity issuance, drivers of adjusted earnings, six months ended March 31, 2026 adjusted earnings per share, and items impacting comparability for the six months ended March 31, 2026 have been calculated using adjusted diluted shares of 91,265,508. NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES (Thousands of Dollars, except per share amounts) Three Months Ended Six Months Ended March 31, March 31, (Unaudited) (Unaudited)SUMMARY OF OPERATIONS 2026 2025 2026 2025 Operating Revenues: Utility Revenues$425,788 $343,574 $684,837 $571,998 Integrated Upstream and Gathering Revenues 358,823 315,191 682,045 567,499 Pipeline and Storage Revenues 73,762 71,185 142,999 139,935 858,373 729,950 1,509,881 1,279,432 Operating Expenses: Purchased Gas 207,851 135,338 293,457 200,675 Operation and Maintenance: Utility 67,060 63,447 126,957 118,691 Integrated Upstream and Gathering and Other 61,064 47,269 117,370 90,174 Pipeline and Storage 30,660 30,153 57,446 56,730 Property, Franchise and Other Taxes 25,274 25,214 50,037 47,270 Depreciation, Depletion and Amortization 119,329 111,277 241,354 220,647 Impairment of Assets — — — 141,802 511,238 412,698 886,621 875,989 Operating Income 347,135 317,252 623,260 403,443 Other Income (Expense): Other Income 17,002 15,232 25,235 22,952 Interest Expense on Long-Term Debt (30,083) (39,662) (63,596) (73,024)Other Interest Expense (3,651) (5,095) (13,514) (9,476) Income Before Income Taxes 330,403 287,727 571,385 343,895 Income Tax Expense 82,735 71,369 142,072 82,551 Net Income Available for Common Stock$247,668 $216,358 $429,313 $261,344 Earnings Per Common Share Basic$2.61 $2.39 $4.61 $2.88 Diluted$2.59 $2.37 $4.58 $2.86 Weighted Average Common Shares: Used in Basic Calculation 95,026,278 90,500,162 93,077,818 90,640,333 Used in Diluted Calculation 95,691,950 91,176,327 93,805,419 91,312,334 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Unaudited) March 31, September 30,(Thousands of Dollars) 2026 2025 ASSETS Property, Plant and Equipment$15,832,704 $15,406,329 Less - Accumulated Depreciation, Depletion and Amortization 7,902,521 7,693,687 Net Property, Plant and Equipment 7,930,183 7,712,642 Current Assets: Cash and Temporary Cash Investments 26,596 43,166 Receivables - Net 292,548 180,801 Unbilled Revenue 52,963 16,219 Gas Stored Underground 4,768 33,468 Materials and Supplies - at average cost 53,773 50,545 Unrecovered Purchased Gas Costs 13,005 5,769 Other Current Assets 63,943 80,759 Total Current Assets 507,596 410,727 Other Assets: Recoverable Future Taxes 96,226 89,247 Unamortized Debt Expense 5,307 6,236 Other Regulatory Assets 127,061 135,486 Deferred Charges 81,332 73,941 Other Investments 65,870 68,346 Goodwill 5,476 5,476 Prepaid Pension and Post-Retirement Benefit Costs 182,682 169,228 Fair Value of Derivative Financial Instruments 116,014 39,388 Other 9,857 8,387 Total Other Assets 689,825 595,735 Total Assets$9,127,604 $8,719,104 CAPITALIZATION AND LIABILITIES Capitalization: Comprehensive Shareholders' Equity Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 95,027,447 Shares and 90,379,095 Shares, Respectively$95,027 $90,379 Paid in Capital 1,388,193 1,050,918 Earnings Reinvested in the Business 2,340,168 2,012,529 Accumulated Other Comprehensive Income (Loss) 1,111 (59,222)Total Comprehensive Shareholders' Equity 3,824,499 3,094,604 Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs 2,084,882 2,382,861 Total Capitalization 5,909,381 5,477,465 Current and Accrued Liabilities: Notes Payable to Banks and Commercial Paper 41,300 150,200 Current Portion of Long-Term Debt 300,000 300,000 Accounts Payable 143,180 184,046 Amounts Payable to Customers 288 968 Dividends Payable 50,840 48,353 Interest Payable on Long-Term Debt 13,738 14,393 Customer Advances — 17,188 Customer Security Deposits 27,805 29,853 Other Accruals and Current Liabilities 242,760 174,689 Fair Value of Derivative Financial Instruments 236 6,074 Total Current and Accrued Liabilities 820,147 925,764 Other Liabilities: Deferred Income Taxes 1,325,733 1,225,262 Taxes Refundable to Customers 303,199 306,335 Cost of Removal Regulatory Liability 314,865 307,659 Other Regulatory Liabilities 116,509 121,944 Pension and Other Post-Retirement Liabilities 3,741 5,252 Asset Retirement Obligations 228,105 236,787 Other Liabilities 105,924 112,636 Total Other Liabilities 2,398,076 2,315,875 Commitments and Contingencies — — Total Capitalization and Liabilities$9,127,604 $8,719,104 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) Six Months Ended March 31,(Thousands of Dollars) 2026 2025 Operating Activities: Net Income Available for Common Stock $429,313 $261,344 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Impairment of Assets — 141,802 Depreciation, Depletion and Amortization 241,354 220,647 Deferred Income Taxes 68,296 25,787 Premium Paid on Early Redemption of Debt — 2,385 Stock-Based Compensation 9,941 10,487 Other 14,319 14,317 Change in: Receivables and Unbilled Revenue (146,459) (197,553)Gas Stored Underground and Materials and Supplies 25,472 27,861 Unrecovered Purchased Gas Costs (7,236) (3,562)Other Current Assets 16,726 13,737 Accounts Payable 13,469 17,322 Amounts Payable to Customers (680) (8,327)Customer Advances (17,188) (19,373)Customer Security Deposits (2,048) (5,907)Other Accruals and Current Liabilities 56,167 21,528 Other Assets (18,864) (20,282)Other Liabilities (25,303) (28,343)Net Cash Provided by Operating Activities $657,279 $473,870 Investing Activities: Capital Expenditures $(498,267) $(434,260)Other 523 8,881 Net Cash Used in Investing Activities $(497,744) $(425,379) Financing Activities: Changes in Notes Payable to Banks and Commercial Paper $(108,900) $117,700 Shares Repurchased Under Repurchase Plan — (50,471)Reduction of Long-Term Debt (300,000) (954,086)Net Proceeds From Issuance of Long-Term Debt — 989,019 Dividends Paid on Common Stock (99,187) (93,543)Net Proceeds from Common Stock Sale 338,403 — Net Repurchases of Common Stock Under Stock and Benefit Plans (6,421) (4,026)Net Cash Provided by (Used in) Financing Activities $(176,105) $4,593 Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash (16,570) 53,084 Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 43,166 38,222 Cash, Cash Equivalents, and Restricted Cash at March 31 $26,596 $91,306 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED) INTEGRATED UPSTREAM AND GATHERING SEGMENT Three Months Ended Six Months Ended(Thousands of Dollars, except per share amounts)March 31, March 31, 2026 2025 Variance 2026 2025 VarianceTotal Operating Revenues$358,823 $315,191 $43,632 $682,045 $567,499 $114,546 Operating Expenses: Operation and Maintenance: Upstream General and Administrative Expense 18,472 18,847 (375) 37,878 38,173 (295)Lease Operating Expense 17,362 12,494 4,868 34,187 23,145 11,042 Gathering Operation and Maintenance Expense 13,805 9,160 4,645 24,193 15,894 8,299 All Other Operation and Maintenance Expense 3,102 3,310 (208) 6,481 7,178 (697)Property, Franchise and Other Taxes 3,643 4,282 (639) 8,426 7,430 996 Depreciation, Depletion and Amortization 80,548 75,456 5,092 164,810 149,274 15,536 Impairment of Assets — — — — 141,802 (141,802) 136,932 123,549 13,383 275,975 382,896 (106,921) Operating Income 221,891 191,642 30,249 406,070 184,603 221,467 Other Income (Expense): Non-Service Pension and Post-Retirement Benefit Credit (Cost) (81) 37 (118) (162) 73 (235)Interest and Other Income 380 194 186 573 525 48 Interest Expense on Long-Term Debt — (3,283) 3,283 — (3,283) 3,283 Interest Expense (15,111) (19,541) 4,430 (31,245) (38,952) 7,707 Income Before Income Taxes 207,079 169,049 38,030 375,236 142,966 232,270 Income Tax Expense 55,049 44,879 10,170 99,159 38,428 60,731 Net Income$152,030 $124,170 $27,860 $276,077 $104,538 $171,539 Net Income Per Share (Diluted)$1.59 $1.36 $0.23 $2.94 $1.15 $1.79 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED) PIPELINE AND STORAGE SEGMENT Three Months Ended Six Months Ended(Thousands of Dollars, except per share amounts)March 31, March 31, 2026 2025 Variance 2026 2025 VarianceRevenues from External Customers$73,762 $71,185 $2,577 $142,999 $139,935 $3,064 Intersegment Revenues 37,701 38,388 (687) 75,365 76,251 (886)Total Operating Revenues 111,463 109,573 1,890 218,364 216,186 2,178 Operating Expenses: Purchased Gas (7) 162 (169) (7) 121 (128)Operation and Maintenance 31,172 30,642 530 58,435 57,677 758 Property, Franchise and Other Taxes 8,335 8,600 (265) 16,981 17,266 (285)Depreciation, Depletion and Amortization 19,961 18,547 1,414 39,063 37,132 1,931 59,461 57,951 1,510 114,472 112,196 2,276 Operating Income 52,002 51,622 380 103,892 103,990 (98) Other Income (Expense): Non-Service Pension and Post-Retirement Benefit Credit 536 952 (416) 1,073 1,905 (832)Interest and Other Income 1,405 1,794 (389) 2,365 3,833 (1,468)Interest Expense (11,779) (11,700) (79) (23,580) (23,428) (152)Income Before Income Taxes 42,164 42,668 (504) 83,750 86,300 (2,550)Income Tax Expense 10,558 10,961 (403) 20,925 22,138 (1,213)Net Income$31,606 $31,707 $(101) $62,825 $64,162 $(1,337)Net Income Per Share (Diluted)$0.33 $0.35 $(0.02) $0.67 $0.70 $(0.03) NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED) UTILITY SEGMENT Three Months Ended Six Months Ended(Thousands of Dollars, except per share amounts)March 31, March 31, 2026 2025 Variance 2026 2025 VarianceRevenues from External Customers$425,788 $343,574 $82,214 $684,837 $571,998 $112,839 Intersegment Revenues 126 119 7 215 203 12 Total Operating Revenues 425,914 343,693 82,221 685,052 572,201 112,851 Operating Expenses: Purchased Gas 244,860 171,777 73,083 367,145 273,249 93,896 Operation and Maintenance 68,129 64,444 3,685 129,126 120,704 8,422 Property, Franchise and Other Taxes 13,162 12,202 960 24,365 22,313 2,052 Depreciation, Depletion and Amortization 18,601 17,135 1,466 37,081 33,962 3,119 344,752 265,558 79,194 557,717 450,228 107,489 Operating Income 81,162 78,135 3,027 127,335 121,973 5,362 Other Income (Expense): Non-Service Pension and Post-Retirement Benefit Credit 12,059 12,299 (240) 17,813 18,170 (357)Interest and Other Income 1,265 714 551 2,370 1,242 1,128 Interest Expense (11,138) (10,927) (211) (22,744) (21,643) (1,101)Income Before Income Taxes 83,348 80,221 3,127 124,774 119,742 5,032 Income Tax Expense 17,999 16,677 1,322 25,335 23,699 1,636 Net Income$65,349 $63,544 $1,805 $99,439 $96,043 $3,396 Net Income Per Share (Diluted)$0.68 $0.70 $(0.02) $1.06 $1.05 $0.01 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED) Three Months Ended Six Months Ended(Thousands of Dollars, except per share amounts)March 31, March 31,ALL OTHER 2026 2025 Variance 2026 2025 VarianceTotal Operating Revenues$— $— $— $— $— $— Operating Expenses: Operation and Maintenance — — — — — — — — — — — — Operating Loss — — — — — — Other Income (Expense): Interest and Other Income (Deductions) 1,248 (222) 1,470 1,225 (358) 1,583 Interest Expense (118) (131) 13 (254) (248) (6)Income (Loss) before Income Taxes 1,130 (353) 1,483 971 (606) 1,577 Income Tax Expense (Benefit) 262 (82) 344 225 (141) 366 Net Income (Loss)$868 $(271) $1,139 $746 $(465)$1,211 Net Income (Loss) Per Share (Diluted)$0.01 $— $0.01 $0.01 $(0.01)$0.02 Three Months Ended Six Months Ended March 31, March 31,CORPORATE 2026 2025 Variance 2026 2025 VarianceRevenues from External Customers$— $— $— $— $— $— Intersegment Revenues 1,435 1,341 94 2,872 2,683 189 Total Operating Revenues 1,435 1,341 94 2,872 2,683 189 Operating Expenses: Operation and Maintenance 9,002 5,219 3,783 16,244 9,266 6,978 Property, Franchise and Other Taxes 134 130 4 265 261 4 Depreciation, Depletion and Amortization 219 139 80 400 279 121 9,355 5,488 3,867 16,909 9,806 7,103 Operating Loss (7,920) (4,147) (3,773) (14,037) (7,123) (6,914)Other Income (Expense): Non-Service Pension and Post-Retirement Benefit Costs (217) (212) (5) (435) (423) (12)Interest and Other Income 37,810 41,785 (3,975) 77,164 82,846 (5,682)Interest Expense on Long-Term Debt (30,083) (36,379) 6,296 (63,596) (69,741) 6,145 Other Interest Expense (2,908) (4,905) 1,997 (12,442) (10,066) (2,376)Loss before Income Taxes (3,318) (3,858) 540 (13,346) (4,507) (8,839)Income Tax Benefit (1,133) (1,066) (67) (3,572) (1,573) (1,999)Net Loss$(2,185) $(2,792) $607 $(9,774)$(2,934)$(6,840)Net Loss Per Share (Diluted)$(0.02) $(0.04) $0.02 $(0.10)$(0.03)$(0.07) Three Months Ended Six Months Ended March 31, March 31,INTERSEGMENT ELIMINATIONS 2026 2025 Variance 2026 2025 VarianceIntersegment Revenues$(39,262) $(39,848) $586 $(78,452)$(79,137)$685 Operating Expenses: Purchased Gas (37,002) (36,601) (401) (73,681) (72,695) (986)Operation and Maintenance (2,260) (3,247) 987 (4,771) (6,442) 1,671 (39,262) (39,848) 586 (78,452) (79,137) 685 Operating Income — — — — — — Other Income (Expense): Interest and Other Deductions (37,403) (42,109) 4,706 (76,751) (84,861) 8,110 Interest Expense 37,403 42,109 (4,706) 76,751 84,861 (8,110)Net Income$— $— $— $— $— $— Net Income Per Share (Diluted)$— $— $— $— $— $— NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT INFORMATION (Continued)(Thousands of Dollars) Three Months Ended Six Months Ended March 31, March 31, (Unaudited) (Unaudited) Increase Increase 2026 2025 (Decrease) 2026 2025 (Decrease) Capital Expenditures: Integrated Upstream and Gathering(1)$165,727 (1)$123,363(3)$42,364 $307,576 (1)(2)$258,992(3)(4)$48,584 Pipeline and Storage 37,026 (1) 15,626(3) 21,400 74,628 (1)(2) 35,417(3)(4) 39,211 Utility 30,500 (1) 41,867(3) (11,367) 73,594 (1)(2) 78,298(3)(4) (4,704)Total Reportable Segments 233,253 180,856 52,397 455,798 372,707 83,091 All Other — — — — — — Corporate 249 174 75 425 378 47 Eliminations (546) — (546) (546) — (546)Total Capital Expenditures$232,956 $181,030 $51,926 $455,677 $373,085 $82,592 (1)Capital expenditures for the quarter and six months ended March 31, 2026, include accounts payable and accrued liabilities related to capital expenditures of $71.6 million, $5.1 million and $6.0 million in the Integrated Upstream and Gathering segment, Pipeline and Storage segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2026, since they represent non-cash investing activities at that date.(2)Capital expenditures for the six months ended March 31, 2026, exclude capital expenditures of $87.9 million, $19.4 million and $18.0 million in the Integrated Upstream and Gathering segment, Pipeline and Storage segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2025 and paid during the six months ended March 31, 2026. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2025, 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, 2026.(3)Capital expenditures for the quarter and six months ended March 31, 2025, include accounts payable and accrued liabilities related to capital expenditures of $51.6 million, $2.4 million and $4.8 million in the Integrated Upstream and Gathering segment, Pipeline and Storage segment and Utility segment, respectively. These amounts were excluded from the Consolidated Statement of Cash Flows at March 31, 2025, since they represented non-cash investing activities at that date.(4)Capital expenditures for the six months ended March 31, 2025, exclude capital expenditures of $85.0 million, $14.4 million and $20.6 million in the Integrated Upstream and Gathering segment, Pipeline and Storage 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. DEGREE DAYS Percent Colder (Warmer) Than:Three Months Ended March 31,Normal 2026 2025 Normal(1) Last Year(1)Buffalo, NY3,226 3,282 3,116 1.7 5.3Erie, PA3,023 3,079 3,017 1.9 2.1 Six Months Ended March 31, Buffalo, NY5,352 5,563 5,000 3.9 11.3Erie, PA4,917 5,200 4,714 5.8 10.3 (1)Percents compare actual 2026 degree days to normal degree days and actual 2026 degree days to actual 2025 degree days. NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES INTEGRATED UPSTREAM AND GATHERING INFORMATION Three Months Ended Six Months Ended March 31, March 31, Increase Increase 2026 2025 (Decrease) 2026 2025 (Decrease) Gas Production/Prices: Production (MMcf) Appalachia 102,004 105,514 (3,510) 211,185 203,232 7,953 Average Prices (Per Mcf) Weighted Average $3.92 $3.02 $0.90 $3.33 $2.64 $0.69 Weighted Average after Hedging 3.45 2.94 0.51 3.16 2.74 0.42 Selected Operating Performance Statistics: Upstream General and Administrative Expense per Mcf(1) $0.18 $0.18 $— $0.18 $0.19 $(0.01)Lease Operating Expense per Mcf(1) $0.17 $0.12 $0.05 $0.16 $0.11 $0.05 Adjusted Gathering Operation and Maintenance Expense per Mcf(1)(2) $0.14 $0.12 $0.02 $0.11 $0.11 $— Depreciation, Depletion and Amortization per Mcf(1) $0.79 $0.72 $0.07 $0.78 $0.73 $0.05 (1)Refer to page 14 for the Upstream General and Administrative Expense, Lease Operating Expense, Gathering Operation and Maintenance Expense, and Depreciation, Depletion, and Amortization Expense for the Integrated Upstream and Gathering segment.(2)Adjusted Gathering O&M Expense of $0.12 per Mcf and $0.11 per Mcf for the three and six months ended March 31, 2025, respectively, each exclude a $0.03 per Mcf reduction to Gathering O&M Expense attributed to a change in segment reporting, which is fully offset in operating revenue. NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES Pipeline and Storage Throughput - (millions of cubic feet - MMcf) Three Months Ended Six Months Ended March 31, March 31, Increase Increase 2026 2025 (Decrease) 2026 2025 (Decrease)Firm Transportation - Affiliated 45,486 49,240 (3,754) 80,018 81,110 (1,092)Firm Transportation - Non-Affiliated 201,460 185,490 15,970 381,001 356,502 24,499 Interruptible Transportation 583 454 129 608 515 93 247,529 235,184 12,345 461,627 438,127 23,500 Utility Throughput - (MMcf) Three Months Ended Six Months Ended March 31, March 31, Increase Increase 2026 2025 (Decrease) 2026 2025 (Decrease)Retail Sales: Residential Sales 32,934 32,111 823 54,775 50,587 4,188 Commercial Sales 5,581 5,420 161 9,130 8,339 791 Industrial Sales 305 302 3 495 501 (6) 38,820 37,833 987 64,400 59,427 4,973 Transportation 25,502 25,086 416 45,171 42,028 3,143 64,322 62,919 1,403 109,571 101,455 8,116 NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding adjusted earnings, 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 earnings as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel's reported GAAP earnings to adjusted earnings for the three and six months ended March 31, 2026 and 2025:
Three Months Ended Six Months Ended March 31, March 31,(in thousands except per share amounts) 2026 2025 2026 2025 Reported GAAP Earnings $247,668 $216,358 $429,313 $261,344 Items impacting comparability: Impairment of assets — — — 141,802 Tax impact of impairment of assets — — — (37,169)Premiums paid on early redemption of debt — 2,385 — 2,385 Tax impact of premiums paid on early redemption of debt — (642) — (642)Unrealized (gain) loss on derivative asset — 335 — 684 Tax impact of unrealized (gain) loss on derivative asset — (90) — (184)Costs related to the pending Ohio gas utility acquisition 2,499 — 10,186 — Tax impact of costs related to the pending Ohio gas utility acquisition (579) — (2,361) — Net interest benefit from equity issuance (3,422) — (3,931) — Tax impact of net interest benefit from equity issuance 793 — 911 — Unrealized (gain) loss on other investments 347 (17) 1,008 2,600 Tax impact of unrealized (gain) loss on other investments (73) 4 (212) (546)Adjusted Earnings $247,233 $218,333 $434,914 $370,274 Reported GAAP Earnings Per Share $2.59 $2.37 $4.58 $2.86 Items impacting comparability: Impairment of assets, net of tax — — — 1.14 Premiums paid on early redemption of debt, net of tax — 0.02 — 0.02 Unrealized (gain) loss on derivative asset, net of tax — — — 0.01 Costs related to the pending Ohio gas utility acquisition, net of tax 0.02 — 0.09 — Impact of equity issuance related to pending acquisition, net of interest benefits 0.10 — 0.09 — Unrealized (gain) loss on other investments, net of tax — — 0.01 0.02 Rounding — — — 0.01 Adjusted Earnings Per Share $2.71 $2.39 $4.77 $4.06 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, 2026 and 2025:
Three Months Ended Six Months Ended March 31, March 31,(in thousands) 2026 2025 2026 2025 Reported GAAP Earnings $247,668 $216,358 $429,313 $261,344 Depreciation, Depletion and Amortization 119,329 111,277 241,354 220,647 Other (Income) Deductions (17,002) (15,232) (25,235) (22,952)Interest Expense 33,734 44,757 77,110 82,500 Income Taxes 82,735 71,369 142,072 82,551 Impairment of Assets — — — 141,802 Costs related to the pending Ohio gas utility acquisition(1) 2,499 — 4,506 — Adjusted EBITDA $468,963 $428,529 $869,120 $765,892 Adjusted EBITDA by Segment Integrated Upstream and Gathering Adjusted EBITDA $302,439 $267,098 $570,880 $475,679 Pipeline and Storage Adjusted EBITDA 71,963 70,169 142,955 141,122 Utility Adjusted EBITDA 99,763 95,270 164,416 155,935 Corporate and All Other Adjusted EBITDA (5,202) (4,008) (9,131) (6,844)Total Adjusted EBITDA $468,963 $428,529 $869,120 $765,892 (1)For the six months ended March 31, 2026, costs represent a portion of acquisition costs recognized in O&M expense for the pending Ohio gas utility acquisition. The remaining $5.7 million of acquisition costs for the six months ended March 31, 2026 are recognized in interest expense. NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA Three Months Ended Six Months Ended March 31, March 31,(in thousands) 2026 2025 2026 2025 Integrated Upstream and Gathering Segment Reported GAAP Earnings$152,030 $124,170 $276,077 $104,538 Depreciation, Depletion and Amortization 80,548 75,456 164,810 149,274 Other (Income) Deductions (299) (231) (411) (598)Interest Expense 15,111 22,824 31,245 42,235 Income Taxes 55,049 44,879 99,159 38,428 Impairment of Assets — — — 141,802 Adjusted EBITDA$302,439 $267,098 $570,880 $475,679 Pipeline and Storage Segment Reported GAAP Earnings$31,606 $31,707 $62,825 $64,162 Depreciation, Depletion and Amortization 19,961 18,547 39,063 37,132 Other (Income) Deductions (1,941) (2,746) (3,438) (5,738)Interest Expense 11,779 11,700 23,580 23,428 Income Taxes 10,558 10,961 20,925 22,138 Adjusted EBITDA$71,963 $70,169 $142,955 $141,122 Utility Segment Reported GAAP Earnings$65,349 $63,544 $99,439 $96,043 Depreciation, Depletion and Amortization 18,601 17,135 37,081 33,962 Other (Income) Deductions (13,324) (13,013) (20,183) (19,412)Interest Expense 11,138 10,927 22,744 21,643 Income Taxes 17,999 16,677 25,335 23,699 Adjusted EBITDA$99,763 $95,270 $164,416 $155,935 Corporate and All Other Reported GAAP Earnings$(1,317) $(3,063) $(9,028) $(3,399)Depreciation, Depletion and Amortization 219 139 400 279 Other (Income) Deductions (1,438) 758 (1,203) 2,796 Interest Expense (4,294) (694) (459) (4,806)Income Taxes (871) (1,148) (3,347) (1,714)Costs related to the pending Ohio gas utility acquisition 2,499 — 4,506 — Adjusted EBITDA$(5,202) $(4,008) $(9,131) $(6,844) Management defines free cash flow as net cash provided by operating activities, less net cash used in investing activities, adjusted for acquisitions and divestitures. For the six months ended March 31, 2026, net cash provided by operating activities was $661 million; net cash used in investing activities was $501 million; there were no adjustments for acquisitions or divestitures; and free cash flow was $160 million. For the six months ended March 31, 2025, net cash provided by operating activities was $474 million; net cash used in investing activities was $425 million; there were no adjustments for acquisitions or divestitures; and free cash flow was $49 million. 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.
Natalie M. Fischer
Investor Relations
716-857-7315Timothy J. Silverstein
Chief Financial Officer
716-857-6987
