|
National Fuel Reports Fourth Quarter and Full Year Fiscal 2016 Earnings
National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG)
today announced consolidated results for the three months and fiscal
year ended September 30, 2016. National Fuel had consolidated earnings
for the quarter ended September 30, 2016, of $37.6 million or $0.44 per
share, compared to the prior year’s fourth quarter consolidated loss of
$187.7 million or $2.22 per share. For fiscal 2016, the Company had a
consolidated net loss of $291.0 million or $3.43 per share, versus a
consolidated net loss of $379.4 million or $4.50 per share in fiscal
2015.
FISCAL 2016 FOURTH QUARTER SUMMARY
-
Consolidated net income of $37.6 million or $0.44 per share
-
Operating Results (earnings before items impacting comparability) of
$56.6 million or $0.66 per share (non-GAAP reconciliation on page 2)
-
Impairment of oil and gas properties of $32.8 million ($19.0 million
after tax)
-
Adjusted EBITDA of $170.1 million, up from $153.6 million in the prior
year (non-GAAP reconciliation on page 26)
-
Net production of 39.8 Bcfe, a 6% increase from prior year, resulting
in record annual net production for fiscal 2016
-
Price-related production curtailments of 6.2 Bcf in Appalachia
-
Average natural gas prices after hedging of $3.09 per Mcf, down $0.26
per Mcf from the prior year
-
Average oil prices after hedging of $60.01 per Bbl, down $6.39 per Bbl
from the prior year
-
Midstream businesses Adjusted EBITDA of $67.5 million, up from $56.7
million in the prior year (non-GAAP reconciliation on page 27)
MANAGEMENT COMMENTS
Ronald J. Tanski, President and Chief Executive Officer of National Fuel
Gas Company, stated: “We are pleased to finish our 2016 fiscal year with
a strong fourth quarter. Realized commodity prices that declined by more
than 10% over the entire fiscal year had a negative effect on our
financial performance, as did weather that was 16% warmer than normal.
Nonetheless, we were able to improve on our overall results from the
prior year. Our team’s continued focus on cost control and operational
efficiencies across the Company’s entire value chain helped drive the
improved results for the year.
“Already into the second month of our 2017 fiscal year, we continue to
focus on executing our integrated plans and navigating the Company
through an increasingly challenging environment in the domestic energy
industry. We expect to continue the methodical development of our vast,
industry-leading low cost natural gas resource in the Marcellus and
Utica shales. At the same time, we will leverage our valuable pipeline
footprint and over 100 years of operational experience to responsibly
build out and maintain the infrastructure necessary to supply the
clean-burning fuel that keeps our utility customers warm, and connect
the new supply sources to demand centers across the region. I am
confident that our asset base and unique integrated structure will
continue to provide us with a competitive advantage and that our
strategy will deliver increasing returns for our shareholders, and
position National Fuel as a premier energy company for years to come."
OPERATING RESULTS
|
|
|
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|
Three Months Ended
|
|
Fiscal Year Ended
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|
|
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September 30,
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September 30,
|
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(in thousands except per share amounts)
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Reported GAAP earnings (loss)
|
|
|
|
$
|
37,553
|
|
|
$
|
(187,703
|
)
|
|
$
|
(290,958
|
)
|
|
$
|
(379,427
|
)
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas properties (E&P)
|
|
|
|
32,756
|
|
|
417,197
|
|
|
948,307
|
|
|
1,126,257
|
|
|
Tax impact of impairment of oil and gas properties
|
|
|
|
(13,757
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)
|
|
(176,360
|
)
|
|
(398,287
|
)
|
|
(476,097
|
)
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|
Joint development agreement professional fees (E&P)
|
|
|
|
|
|
|
|
7,855
|
|
|
|
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Tax impact of joint development agreement professional fees
|
|
|
|
|
|
|
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(3,299
|
)
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|
|
|
Deferred income tax adjustments (E&P)
|
|
|
|
|
|
(13,206
|
)
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|
|
|
(13,206
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)
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|
Reversal of stock-based compensation
|
|
|
|
|
|
(7,776
|
)
|
|
|
|
(7,776
|
)
|
|
Tax impact of reversal of stock-based compensation
|
|
|
|
|
|
3,095
|
|
|
|
|
3,095
|
|
|
Operating Results
|
|
|
|
$
|
56,552
|
|
|
$
|
35,247
|
|
|
$
|
263,618
|
|
|
$
|
252,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP earnings (loss) per share
|
|
|
|
$
|
0.44
|
|
|
$
|
(2.22
|
)
|
|
$
|
(3.43
|
)
|
|
$
|
(4.50
|
)
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas properties (E&P)
|
|
|
|
0.38
|
|
|
4.93
|
|
|
11.18
|
|
|
13.35
|
|
|
Tax impact of impairment of oil and gas properties
|
|
|
|
(0.16
|
)
|
|
(2.09
|
)
|
|
(4.69
|
)
|
|
(5.64
|
)
|
|
Joint development agreement professional fees (E&P)
|
|
|
|
|
|
|
|
0.09
|
|
|
|
|
Tax impact of joint development agreement professional fees
|
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
Deferred income tax adjustments (E&P)
|
|
|
|
|
|
(0.15
|
)
|
|
|
|
(0.15
|
)
|
|
Reversal of stock-based compensation
|
|
|
|
|
|
(0.09
|
)
|
|
|
|
(0.09
|
)
|
|
Tax impact of reversal of stock-based compensation
|
|
|
|
|
|
0.04
|
|
|
|
|
0.04
|
|
|
Earnings per share impact of dilutive shares (All segments)
|
|
|
|
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
(0.04
|
)
|
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Operating Results per diluted share
|
|
|
|
$
|
0.66
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|
|
$
|
0.41
|
|
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$
|
3.09
|
|
|
$
|
2.97
|
|
|
|
|
|
|
|
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DISCUSSION OF RESULTS BY SEGMENT
The following discussion of the earnings of each segment is summarized
in a tabular form on pages 9 through 12 of this report. It may be
helpful to refer to those tables while reviewing this discussion. Note
that management defines Operating Results as reported GAAP earnings
before items impacting comparability, and Adjusted EBITDA as reported
GAAP earnings before the following items: interest expense, depreciation
and amortization, interest and other income, impairments, items
impacting comparability, and income taxes.
Upstream Business
Exploration and Production Segment
The Exploration and Production segment operations are carried out by
Seneca Resources Corporation ("Seneca"). Seneca explores for, develops
and produces natural gas and oil reserves, primarily in Pennsylvania and
California.
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|
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|
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Three Months Ended
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Fiscal Year Ended
|
|
|
|
|
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September 30,
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September 30,
|
|
(in thousands except per share amounts)
|
|
|
|
2016
|
|
2015
|
|
Variance
|
|
2016
|
|
2015
|
|
Variance
|
|
Net Income / (Loss)
|
|
|
|
$
|
16,744
|
|
|
$
|
(207,019
|
)
|
|
$
|
223,763
|
|
|
$
|
(452,842
|
)
|
|
$
|
(556,974
|
)
|
|
$
|
104,132
|
|
|
Net Income / (Loss) Per Share (Diluted)
|
|
|
|
$
|
0.20
|
|
|
$
|
(2.45
|
)
|
|
$
|
2.65
|
|
|
$
|
(5.34
|
)
|
|
$
|
(6.60
|
)
|
|
$
|
1.26
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
95,157
|
|
|
$
|
97,582
|
|
|
$
|
(2,425
|
)
|
|
$
|
363,830
|
|
|
$
|
422,289
|
|
|
$
|
(58,459
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income in the Exploration and Production segment in the current
year’s fourth quarter was $16.7 million or $0.20 per share, compared to
a net loss of $207.0 million or $2.45 per share in the prior year’s
fourth quarter, an increase of $223.7 million, or $2.65 per share. The
increase in the Exploration and Production segment's fourth quarter net
income is mainly due to lower charges that were recorded to write down
the value of Seneca’s oil and natural gas reserves under the full cost
method of accounting. The non-cash, pre-tax impairment charge recorded
in the current year's fourth quarter was $32.8 million ($19.0 million
after-tax) versus $417.2 million ($240.8 million after-tax) in the prior
year. The full cost method of accounting requires that Seneca perform a
quarterly “ceiling test” to compare the present value of future revenues
from its oil and natural gas reserves based on an unweighted arithmetic
average of the first day of the month oil and gas prices for each month
within the 12-month period prior to the end of the reporting period
(“the ceiling”) with the book value of those reserves at the balance
sheet date. If the book value of the reserves exceeds the ceiling, a
non-cash impairment charge must be recorded in order to reduce the book
value of the reserves to the calculated ceiling. While possible, Seneca
does not expect to incur an impairment charge in the first quarter of
fiscal 2017 due to the improvement in oil and gas prices and lower lease
operating expenses and development costs.
Excluding items impacting comparability, including the impairment
charges discussed above, Operating Results in the Exploration and
Production segment in the current year’s fourth quarter were $35.7
million, or $0.42 per share, compared to $19.0 million, or $0.22 per
share, in the prior year’s fourth quarter, an increase of $16.7 million
or $0.20 per share. The increase in Operating Results is mainly due to
higher natural gas production, lower operating expenses and a lower
effective tax rate, offset partially by lower realized natural gas and
crude oil prices and lower oil production.
Seneca's fourth quarter net production was 39.8 billion cubic feet
equivalent ("Bcfe"), an increase of 2.2 Bcfe, or 6 percent, from the
prior year, and a decrease of 4.1 Bcfe, or 9 percent, versus the third
quarter of fiscal 2016. Net natural gas production increased 2.5 Bcf, or
8 percent, versus prior year due mainly to new incremental firm
transportation capacity that became available to Seneca during the first
quarter of fiscal 2016. Seneca voluntarily curtailed an estimated 6.2
Bcf of net natural gas production in the fourth quarter as a result of
depressed local spot prices in Pennsylvania. Seneca’s crude oil
production decreased 54 thousand barrels ("Mbbl"), or 7 percent, due
mainly to the continuing impact of a disruption in steam flood
operations that occurred during the first quarter in the North Midway
Sunset field. Steam volumes increased at North Midway Sunset during the
fourth quarter of fiscal 2016 and field production is expected to return
to pre-disruption levels in the first half of fiscal 2017.
Seneca's average realized natural gas price, after the impact of
hedging, for the fourth quarter was $3.09 per thousand cubic feet
("Mcf"), a decrease of $0.26 per Mcf versus the prior year. Seneca's
average realized oil price, after the impact of hedging, was $60.01 per
barrel ("Bbl"), a decrease of $6.39 per Bbl. Seneca's average realized
natural gas and oil prices benefited from an uplift of $0.82 per Mcf and
$20.55 per Bbl, respectively, from financial hedges settled during the
quarter.
The decrease in Seneca’s fourth quarter operating expenses was driven by
lower lease operating and transportation expense ("LOE") and lower
depreciation, depletion and amortization ("DD&A") expense. LOE decreased
due to lower per unit operating costs, offset by the impact of higher
natural gas production and the associated gathering costs. On a per unit
of production basis, LOE decreased from $1.07 per Mcf equivalent
("Mcfe") to $0.97 per Mcfe. The $0.10 per Mcfe decrease is largely due
to a reduction in well maintenance and steam fuel costs in Seneca's
California division and lower salt water disposal and maintenance costs
in Seneca's Appalachian division. DD&A expense decreased due to lower
per unit DD&A, offset partially by the impact of higher production.
Seneca’s per unit DD&A decreased $0.54 per Mcfe to $0.69 per Mcfe due to
a lower depletable fixed asset balance resulting mainly from the ceiling
test impairment charges recorded during the prior four quarters.
A lower effective income tax rate also benefited Seneca’s earnings. The
lower effective rate was principally attributed to a tax credit related
to a solar farm that went in service at Seneca’s California operations
in the fourth quarter. Adjustments related to the intercompany tax
sharing agreement in place amongst the Company’s subsidiaries also
contributed to the lower effective rate.
The net loss in the Exploration and Production segment for fiscal 2016
was $452.8 million or $5.34 per share, compared to a net loss of $557.0
million, or $6.60 per share, in fiscal 2015, an improvement of $104.2
million or $1.26 per share. The decrease in the Exploration and
Production segment's fiscal 2016 net loss is mainly due to lower charges
that were recorded to write down the value of Seneca’s oil and natural
gas reserves under the full cost method of accounting. The total
non-cash, pre-tax impairment charge recorded in fiscal 2016 was $948.3
million ($550.0 million after-tax) versus $1.1 billion ($650.2 million
after-tax) in the prior fiscal year.
Excluding items impacting comparability, including the impairment
charges discussed above, Operating Results in the Exploration and
Production segment for fiscal 2016 were $101.7 million, or $1.19 per
share, compared to $78.4 million, or $0.92 per share, in fiscal 2015, an
increase of $23.3 million or $0.27 per share. The increase in Operating
Results is mainly due to higher production, lower operating expenses and
a lower effective tax rate, offset partially by lower realized natural
gas and crude oil prices and higher interest expense.
Seneca generated record net production of 161.1 Bcfe in fiscal 2016, an
increase of 3.3 Bcfe, or 2 percent, versus fiscal 2015. Seneca
voluntarily curtailed an estimated 34.6 Bcf of net natural gas
production in fiscal 2016. Seneca's average realized natural gas and oil
prices, after the impact of hedging, were $3.02 per Mcf and $57.91 per
Bbl, respectively, a decrease of $0.36 per Mcf and $12.45 per Bbl,
versus fiscal 2015.
LOE expense decreased primarily due to lower repairs and maintenance
expenses and overall operating costs, which decreased Seneca’s average
per unit LOE by $0.10 per Mcfe, offset slightly by the impact of higher
production and the associated gathering costs. Property, franchise and
other taxes decreased due to lower Pennsylvania impact fee payments and
California assessments. DD&A expense decreased $0.65 per Mcfe to $0.87
per Mcfe as a result of lower depletable fixed asset balance following
the ceiling test impairment charges.
Year End Proved Reserves
Seneca’s total proved crude oil and natural gas reserves were 1,849 Bcfe
at September 30, 2016 versus 2,344 Bcfe at September 30, 2015. The 495
Bcfe decrease was due primarily to 262 Bcfe of mineral sales, another
262 Bcfe of net negative revisions, and 161 Bcfe of annual production,
offset by a 190 Bcfe of extensions and discoveries. Seneca’s total
proved undeveloped reserves (“PUDs”) at the end of fiscal 2016 were 543
Bcfe, or 29 percent of proved reserves, which was down from 35 percent
of proved reserves at the end of fiscal 2015.
As part of the joint development agreement (“JDA”) entered into in
November 2015 and extended in June 2016, Seneca conveyed approximately
246 Bcfe of natural gas reserves to the JDA partner in fiscal 2016. The
Company expects to convey an additional 69 Bcfe of proved reserves to
the JDA partner in fiscal 2017. In addition to the JDA, the Company sold
approximately 16 Bcfe of Upper Devonian reserves in fiscal 2016.
Revisions to previous proved reserve estimates resulted in a net
reduction of 262 Bcfe, with 227 Bcfe, or 87 percent, due to lower oil
and gas pricing. Similar to the quarterly ceiling test calculation
discussed above, Seneca is required under SEC accounting rules to use
12-month historical oil and gas pricing to estimate its proved reserves.
Average natural gas and oil prices used to estimate the Company’s proved
reserves decreased $0.75 per Mcf and $18.57 per Bbl, respectively, from
2015. The Company is able to record positive price related revisions to
its proved reserves if oil and gas prices increase.
Adjusting for sales and revisions, Seneca replaced 117 percent of its
production in fiscal 2016 versus 404 percent in fiscal 2015. The
decrease was driven primarily by the JDA and an overall reduction in
development activity in Appalachia, where the Company went from
operating 3 rigs in fiscal 2015 to a single rig in the second quarter of
fiscal 2016.
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.
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|
|
|
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|
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Three Months Ended
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|
Fiscal Year Ended
|
|
|
|
|
|
September 30,
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September 30,
|
|
(in thousands except per share amounts)
|
|
|
|
2016
|
|
2015
|
|
Variance
|
|
2016
|
|
2015
|
|
Variance
|
|
Net Income / (Loss)
|
|
|
|
$
|
16,816
|
|
|
$
|
18,485
|
|
|
$
|
(1,669
|
)
|
|
$
|
76,610
|
|
|
$
|
80,354
|
|
|
$
|
(3,744
|
)
|
|
Net Income / (Loss) Per Share (Diluted)
|
|
|
|
$
|
0.20
|
|
|
$
|
0.22
|
|
|
$
|
(0.02
|
)
|
|
$
|
0.90
|
|
|
$
|
0.95
|
|
|
$
|
(0.05
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
46,517
|
|
|
$
|
40,297
|
|
|
$
|
6,220
|
|
|
$
|
199,446
|
|
|
$
|
188,042
|
|
|
$
|
11,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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The Pipeline and Storage segment's fourth quarter earnings decreased
$1.7 million versus the prior year as the increase in the segment’s
operating income was more than offset by lower other income and higher
income taxes. Operating income increased $2.9 million, or 9 percent, as
a result of the three expansion projects - Northern Access 2015,
Westside Expansion & Modernization, and Tuscarora Lateral - that were
placed in service during the first quarter of fiscal 2016. Other income
decreased $1.4 million as the Company recorded lower allowance for funds
used during construction (“AFUDC”) following the in-service of the three
expansion projects that were under construction during the prior year.
The segment’s effective tax rate was higher in the fourth quarter due to
adjustments related to the intercompany tax sharing agreement in place
amongst the Company's subsidiaries.
Similarly, the Pipeline and Storage segment's fiscal 2016 earnings
decreased $3.7 million versus the prior year as the increase in
operating income was more than offset by higher interest expense and
income taxes. Operating income increased $4.4 million, or 3 percent, as
a result of the three expansion projects that were placed in service
during the first quarter of fiscal 2016. The impact of the expansion
projects were partially offset by a decrease in revenues from short-term
seasonal contracts and a reduction in some of Supply Corporation’s and
Empire’s tariff rates, as well as higher post-retirement benefit and
executive compensation costs. The increase in interest expense was due
to the full year impact of the long-term debt issuance that occurred at
the end of the quarter ended June 30, 2015. The segment’s effective tax
rate was higher in the fourth quarter due to changes in intercompany tax
adjustments recorded in the current year.
Gathering Segment
The Gathering segment’s operations are carried out by National Fuel Gas
Midstream Corporation’s subsidiary limited liability companies. The
Gathering segment constructs, owns and operates natural gas gathering
pipelines and compression facilities in the Appalachian region which
currently delivers Seneca’s gross Appalachian production to the
interstate pipeline system.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
(in thousands except per share amounts)
|
|
|
|
2016
|
|
2015
|
|
Variance
|
|
2016
|
|
2015
|
|
Variance
|
|
Net Income / (Loss)
|
|
|
|
$
|
8,537
|
|
|
$
|
7,594
|
|
|
$
|
943
|
|
|
$
|
30,499
|
|
|
$
|
31,849
|
|
|
$
|
(1,350
|
)
|
|
Net Income / (Loss) Per Share (Diluted)
|
|
|
|
$
|
0.10
|
|
|
$
|
0.09
|
|
|
$
|
0.01
|
|
|
$
|
0.36
|
|
|
$
|
0.38
|
|
|
$
|
(0.02
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
20,963
|
|
|
$
|
16,426
|
|
|
$
|
4,537
|
|
|
$
|
78,685
|
|
|
$
|
68,881
|
|
|
$
|
9,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
The Gathering segment’s fourth quarter earnings increased 12 percent due
to higher gathering revenues, offset partially by higher Operation and
Maintenance ("O&M"), DD&A and interest expenses. Operating revenues
increased $5.2 million, or 29 percent, as a result of the increase in
Seneca's gross production volumes during the quarter. O&M expense
increased on higher costs associated with the operation of various
compression facilities that were placed in service during the current
fiscal year. DD&A expense increased due to higher gross plant in service
during the quarter. Interest expense increased due to a decline in
capitalized interest on lower construction work in progress during the
current quarter.
The Gathering segment’s fiscal 2016 earnings declined 4 percent versus
fiscal 2015 as the increase in operating income was more than offset by
an increase in interest expense. Operating income increased $5.4
million, or 9 percent, as gathering revenues from higher system
throughput more than offset higher O&M and DD&A expenses. Operating
revenues increased $12.2 million, or 16 percent, due to the increase in
Seneca's gross production volumes in 2016. O&M expense increased on
higher costs associated with the operation of various compression
facilities that were placed in service during the current fiscal year.
DD&A expense increased due to higher gross plant in service during the
year. The increase in interest expense was due to the full year impact
of the long-term debt issuance that occurred at the end of the quarter
ended June 30, 2015, coupled with lower capitalized interest.
Downstream Businesses
Utility Segment
The Utility segment operations are carried out by National Fuel Gas
Distribution Corporation (“Distribution”), which sells or transports
natural gas to customers located in western New York and northwestern
Pennsylvania.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
(in thousands except per share amounts)
|
|
|
|
2016
|
|
2015
|
|
Variance
|
|
2016
|
|
2015
|
|
Variance
|
|
Net Income / (Loss)
|
|
|
|
$
|
(1,784
|
)
|
|
$
|
(3,288
|
)
|
|
$
|
1,504
|
|
|
$
|
50,960
|
|
|
$
|
63,271
|
|
|
$
|
(12,311
|
)
|
|
Net Income / (Loss) Per Share (Diluted)
|
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
0.02
|
|
|
$
|
0.60
|
|
|
$
|
0.75
|
|
|
$
|
(0.15
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
10,400
|
|
|
$
|
3,311
|
|
|
$
|
7,089
|
|
|
$
|
148,683
|
|
|
$
|
164,037
|
|
|
$
|
(15,354
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The $0.02 per share improvement in the Utility segment's fourth quarter
net loss was largely attributable to lower O&M expenses offset slightly
by higher DD&A expense. O&M expense decreased $5.6 million versus the
prior year due to lower maintenance, personnel, and post-retirement
benefit costs.
The Utility segment’s fiscal 2016 earnings decreased 19 percent due to
the warmer winter heating season and the impact of a regulatory true-up
adjustment in fiscal 2015, offset partially by a reduction in O&M
expenses. Warmer weather during the winter heating season had a negative
impact on the segment’s margins, which contributed to a $0.15 per share
decline in the Utility’s earnings. In New York, the impact of weather
variations on earnings is largely mitigated by that jurisdiction’s
weather normalization clause. O&M expense decreased $10.8 million in
fiscal 2016 due to a decline in uncollectible customer accounts and
lower maintenance, personnel, and post-retirement benefit costs.
Energy Marketing Segment
The Energy Marketing segment's operations are carried out by National
Fuel Resources, Inc. (“NFR”). NFR markets natural gas to industrial,
wholesale, commercial, public authority and residential customers
primarily in western and central New York and northwestern Pennsylvania,
offering competitively priced natural gas to its customers.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
(in thousands except per share amounts)
|
|
|
|
2016
|
|
2015
|
|
Variance
|
|
2016
|
|
2015
|
|
Variance
|
|
Net Income / (Loss)
|
|
|
|
$
|
231
|
|
|
$
|
34
|
|
|
$
|
197
|
|
|
$
|
4,348
|
|
|
$
|
7,766
|
|
|
$
|
(3,418
|
)
|
|
Net Income / (Loss) Per Share (Diluted)
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.05
|
|
|
$
|
0.09
|
|
|
$
|
(0.04
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
87
|
|
|
$
|
(176
|
)
|
|
$
|
263
|
|
|
$
|
6,655
|
|
|
$
|
12,237
|
|
|
$
|
(5,582
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Energy Marketing segment's fourth quarter earnings were relatively
flat when compared to the prior year. For fiscal 2016, earnings declined
$3.4 million due primarily to lower customer volumes and margins, which
were negatively impacted by the warmer winter weather and stronger
natural gas prices at local purchase points relative to NFR’s
NYMEX-based customer sales contracts.
Corporate and All Other
The Corporate and All Other category net loss of $3.0 million for the
quarter ended September 30, 2016, compares to a net loss of $3.5 million
in the prior year’s fourth quarter. The $0.5 million decrease in the net
loss impacted consolidated earnings by less than $0.01 per share.
The Corporate and All Other category net loss of $0.5 million for the
year ended September 30, 2016, compares to a net loss of $5.7 million in
the prior year. The $5.2 million decrease in the net loss was due to
lower corporate-level expenses and lower income taxes.
EARNINGS GUIDANCE
The Company is reaffirming its earnings guidance for fiscal 2017 with a
range of $2.85 to $3.15 per share. While the earnings guidance range
remains unchanged, the Company is updating fiscal 2017 capital
expenditure and production guidance and revising some of its Exploration
& Production forecast assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
Updated FY 2017 Guidance
|
|
Previous FY 2017 Guidance
|
|
Consolidated Earnings per Share
|
|
|
|
$2.85 to $3.15
|
|
$2.85 to $3.15
|
|
Capital Expenditures (Millions)
|
|
|
|
|
|
|
|
Exploration & Production (1)
|
|
|
|
$180 - $220
|
|
$160 - $200
|
|
Pipeline & Storage
|
|
|
|
$390 - $440
|
|
$400 - $450
|
|
Gathering
|
|
|
|
$65 - $75
|
|
$75 - $85
|
|
Utility
|
|
|
|
$90 - $100
|
|
$90 - $100
|
|
Consolidated Capital Expenditures
|
|
|
|
$725 - $835
|
|
$725 - $835
|
|
|
|
|
|
|
|
|
|
Exploration & Production Segment Guidance
|
|
|
|
|
|
NYMEX Natural Gas Price Assumption
|
|
|
|
$3.25
|
|
$3.00
|
|
NYMEX Crude Oil Price Assumption
|
|
|
|
$53.00
|
|
$50.00
|
|
|
|
|
|
|
|
|
|
Production (Bcfe)
|
|
|
|
|
|
|
|
East Division - Appalachia
|
|
|
|
125 to 148
|
|
130 to 153
|
|
West Division - California
|
|
|
|
20 to 22
|
|
20 to 22
|
|
Total Production
|
|
|
|
145 to 170
|
|
150 to 175
|
|
|
|
|
|
|
|
|
|
E&P Operating Costs ($/Mcfe)
|
|
|
|
|
|
|
|
LOE
|
|
|
|
$0.95 - $1.05
|
|
$0.95 - $1.05
|
|
G&A
|
|
|
|
$0.35 - $0.40
|
|
$0.35 - $0.40
|
|
DD&A
|
|
|
|
$0.65 - $0.75
|
|
$0.65 - $0.75
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Net of initial conveyance proceeds received from joint development
partner for working interest in joint development wells
|
|
|
|
|
EARNINGS TELECONFERENCE
The Company will host a conference call on Friday, November 4, 2016, at
11 a.m. Eastern Time to discuss this announcement. There are two ways to
access this call. For those with Internet access, visit the NFG Investor
Relations News & Events page at National Fuel’s website at investor.nationalfuelgas.com.
For those without Internet access, audio access is also provided by
dialing (toll-free) 844-742-4246, using conference ID number “97603563.”
For those unable to listen to the live conference call, an audio replay
will be available approximately two hours following the teleconference
at the same website link and by phone at (toll-free) 855-859-2056 or
404-537-3406, using conference ID number “97603563.” Both the webcast
and telephonic replay will be available until the close of business on
Friday, November 11, 2016.
National Fuel is an integrated energy company reporting financial
results for five operating segments: Exploration and Production,
Pipeline and Storage, Gathering, Utility, and Energy Marketing.
Additional information about National Fuel is available at www.nationalfuelgas.com.
Certain statements contained herein, including statements identified by
the use of the words “anticipates,” “estimates,” “expects,” “forecasts,”
“intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,”
“may” and similar expressions, and statements which are other than
statements of historical facts, are “forward-looking statements” as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, which could
cause actual results or outcomes to differ materially from those
expressed in the forward-looking statements. The Company’s expectations,
beliefs and projections contained herein are expressed in good faith and
are believed to have a reasonable basis, but there can be no assurance
that such expectations, beliefs or projections will result or be
achieved or accomplished. In addition to other factors, the following
are important factors that could cause actual results to differ
materially from those discussed in the forward-looking statements:
delays or changes in costs or plans with respect to Company projects or
related projects of other companies, including difficulties or delays in
obtaining necessary governmental approvals, permits or orders or in
obtaining the cooperation of interconnecting facility operators;
governmental/regulatory actions, initiatives and proceedings, including
those involving rate cases (which address, among other things, target
rates of return, rate design and retained natural gas),
environmental/safety requirements, affiliate relationships, industry
structure, and franchise renewal; impairments under the SEC’s full cost
ceiling test for natural gas and oil reserves; changes in the price of
natural gas or oil; 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; factors affecting the Company’s ability to
successfully identify, drill for and produce economically viable natural
gas and oil reserves, including among others geology, lease
availability, title disputes, weather conditions, shortages, delays or
unavailability of equipment and services required in drilling
operations, insufficient gathering, processing and transportation
capacity, the need to obtain governmental approvals and permits, and
compliance with environmental laws and regulations; 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;
changes in price differentials between similar quantities of natural gas
or oil sold at different geographic locations, and the effect of such
changes on commodity production, revenues and demand for pipeline
transportation capacity to or from such locations; other changes in
price differentials between similar quantities of natural gas or oil
having different quality, heating value, hydrocarbon mix or delivery
date; the cost and effects of legal and administrative claims against
the Company or activist shareholder campaigns to effect changes at the
Company; uncertainty of oil and gas reserve estimates; significant
differences between the Company’s projected and actual production levels
for natural gas or oil; changes in demographic patterns and weather
conditions; changes in the availability, price or accounting treatment
of derivative financial instruments; changes in economic conditions,
including global, national or regional recessions, and their effect on
the demand for, and customers’ ability to pay for, the Company’s
products and services; the creditworthiness or performance of the
Company’s key suppliers, customers and counterparties; economic
disruptions or uninsured losses resulting from major accidents, fires,
severe weather, natural disasters, terrorist activities, acts of war,
cyber attacks or pest infestation; significant differences between the
Company’s projected and actual capital expenditures and operating
expenses; 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; increasing health
care costs and the resulting effect on health insurance premiums and on
the obligation to provide other post-retirement benefits; 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
|
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
|
|
QUARTER ENDED SEPTEMBER 30, 2016
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
Midstream Businesses
|
|
Downstream Businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration &
|
|
Pipeline &
|
|
|
|
|
|
Energy
|
|
Corporate /
|
|
|
|
(Thousands of Dollars)
|
|
|
Production
|
|
Storage
|
|
Gathering
|
|
Utility
|
|
Marketing
|
|
All Other
|
|
Consolidated*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2015 GAAP earnings
|
|
|
$
|
(207,019
|
)
|
|
$
|
18,485
|
|
|
$
|
7,594
|
|
|
$
|
(3,288
|
)
|
|
$
|
34
|
|
|
$
|
(3,509
|
)
|
|
$
|
(187,703
|
)
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas producing properties
|
|
|
417,197
|
|
|
|
|
|
|
|
|
|
|
|
|
417,197
|
|
|
Tax impact of impairment of oil and gas producing properties
|
|
|
(176,360
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(176,360
|
)
|
|
Deferred income tax adjustments
|
|
|
(13,206
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(13,206
|
)
|
|
Reversal of stock-based compensation
|
|
|
(2,767
|
)
|
|
(1,900
|
)
|
|
—
|
|
|
(1,684
|
)
|
|
—
|
|
|
(1,425
|
)
|
|
(7,776
|
)
|
|
Tax impact of reversal of stock-based compensation
|
|
|
1,170
|
|
|
754
|
|
|
—
|
|
|
649
|
|
|
—
|
|
|
522
|
|
|
3,095
|
|
|
Fourth quarter 2015 operating results
|
|
|
19,015
|
|
|
17,339
|
|
|
7,594
|
|
|
(4,323
|
)
|
|
34
|
|
|
(4,412
|
)
|
|
35,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) crude oil prices
|
|
|
(3,006
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(3,006
|
)
|
|
Higher (lower) natural gas prices
|
|
|
(5,933
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(5,933
|
)
|
|
Higher (lower) natural gas production
|
|
|
5,490
|
|
|
|
|
|
|
|
|
|
|
|
|
5,490
|
|
|
Higher (lower) crude oil production
|
|
|
(2,358
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(2,358
|
)
|
|
Lower (higher) lease operating and transportation expenses
|
|
|
1,121
|
|
|
|
|
|
|
|
|
|
|
|
|
1,121
|
|
|
Lower (higher) depreciation / depletion
|
|
|
12,286
|
|
|
(912
|
)
|
|
(697
|
)
|
|
(957
|
)
|
|
|
|
|
|
9,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) transportation revenues
|
|
|
|
|
3,946
|
|
|
|
|
|
|
|
|
|
|
3,946
|
|
|
Higher (lower) gathering and processing revenues
|
|
|
|
|
|
|
3,403
|
|
|
|
|
|
|
|
|
3,403
|
|
|
Lower (higher) other operating expenses
|
|
|
2,547
|
|
|
1,049
|
|
|
(466
|
)
|
|
4,723
|
|
|
|
|
287
|
|
|
8,140
|
|
|
Lower (higher) property, franchise and other taxes
|
|
|
814
|
|
|
|
|
|
|
|
|
|
|
|
|
814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) margins
|
|
|
|
|
|
|
|
|
|
|
166
|
|
|
346
|
|
|
512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) AFUDC**
|
|
|
|
|
(1,415
|
)
|
|
|
|
|
|
|
|
|
|
(1,415
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) interest expense
|
|
|
|
|
|
|
(441
|
)
|
|
|
|
|
|
|
|
(441
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax expense / effective tax rate
|
|
|
5,992
|
|
|
(2,356
|
)
|
|
(911
|
)
|
|
(1,244
|
)
|
|
|
|
373
|
|
|
1,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding
|
|
|
(225
|
)
|
|
(835
|
)
|
|
55
|
|
|
17
|
|
|
31
|
|
|
415
|
|
|
(542
|
)
|
|
Fourth quarter 2016 operating results
|
|
|
35,743
|
|
|
16,816
|
|
|
8,537
|
|
|
(1,784
|
)
|
|
231
|
|
|
(2,991
|
)
|
|
56,552
|
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas producing properties
|
|
|
(32,756
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(32,756
|
)
|
|
Tax impact of impairment of oil and gas producing properties
|
|
|
13,757
|
|
|
|
|
|
|
|
|
|
|
|
|
13,757
|
|
|
Fourth quarter 2016 GAAP earnings
|
|
|
$
|
16,744
|
|
|
$
|
16,816
|
|
|
$
|
8,537
|
|
|
$
|
(1,784
|
)
|
|
$
|
231
|
|
|
$
|
(2,991
|
)
|
|
$
|
37,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect intercompany eliminations
|
|
** AFUDC = Allowance for Funds Used During Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
|
|
QUARTER ENDED SEPTEMBER 30, 2016
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
Midstream Businesses
|
|
Downstream Businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration &
|
|
Pipeline &
|
|
|
|
|
|
Energy
|
|
Corporate /
|
|
|
|
|
|
|
Production
|
|
Storage
|
|
Gathering
|
|
Utility
|
|
Marketing
|
|
All Other
|
|
Consolidated*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2015 GAAP earnings
|
|
|
$
|
(2.45
|
)
|
|
$
|
0.22
|
|
|
$
|
0.09
|
|
|
$
|
(0.04
|
)
|
|
$
|
—
|
|
|
$
|
(0.04
|
)
|
|
$
|
(2.22
|
)
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas producing properties
|
|
|
4.93
|
|
|
|
|
|
|
|
|
|
|
|
|
4.93
|
|
|
Tax impact of impairment of oil and gas producing properties
|
|
|
(2.09
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(2.09
|
)
|
|
Deferred income tax adjustments
|
|
|
(0.15
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.15
|
)
|
|
Reversal of stock-based compensation
|
|
|
(0.03
|
)
|
|
(0.02
|
)
|
|
—
|
|
|
(0.02
|
)
|
|
—
|
|
|
(0.02
|
)
|
|
(0.09
|
)
|
|
Tax impact of reversal of stock-based compensation
|
|
|
0.01
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
0.04
|
|
|
Earnings per share impact of diluted shares
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
Rounding
|
|
|
0.01
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Fourth quarter 2015 operating results
|
|
|
0.22
|
|
|
0.20
|
|
|
0.09
|
|
|
(0.05
|
)
|
|
—
|
|
|
(0.05
|
)
|
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) crude oil prices
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.04
|
)
|
|
Higher (lower) natural gas prices
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.07
|
)
|
|
Higher (lower) natural gas production
|
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
0.06
|
|
|
Higher (lower) crude oil production
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.03
|
)
|
|
Lower (higher) lease operating and transportation expenses
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
Lower (higher) depreciation / depletion
|
|
|
0.14
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
|
|
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) transportation revenues
|
|
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
0.05
|
|
|
Higher (lower) gathering and processing revenues
|
|
|
|
|
|
|
0.04
|
|
|
|
|
|
|
|
|
0.04
|
|
|
Lower (higher) other operating expenses
|
|
|
0.03
|
|
|
0.01
|
|
|
(0.01
|
)
|
|
0.06
|
|
|
|
|
—
|
|
|
0.09
|
|
|
Lower (higher) property, franchise and other taxes
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) margins
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) AFUDC**
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) interest expense
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax expense / effective tax rate
|
|
|
0.07
|
|
|
(0.03
|
)
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
|
|
—
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding
|
|
|
0.02
|
|
|
—
|
|
|
0.01
|
|
|
(0.01
|
)
|
|
—
|
|
|
0.01
|
|
|
0.03
|
|
|
Fourth quarter 2016 operating results
|
|
|
0.42
|
|
|
0.20
|
|
|
0.10
|
|
|
(0.02
|
)
|
|
—
|
|
|
(0.04
|
)
|
|
0.66
|
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas producing properties
|
|
|
(0.38
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.38
|
)
|
|
Tax impact of impairment of oil and gas producing properties
|
|
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
0.16
|
|
|
Fourth quarter 2016 GAAP earnings
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.10
|
|
|
$
|
(0.02
|
)
|
|
$
|
—
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect intercompany eliminations
|
|
** AFUDC = Allowance for Funds Used During Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
|
|
TWELVE MONTHS ENDED SEPTEMBER 30, 2016
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
Midstream Businesses
|
|
Downstream Businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration &
|
|
Pipeline &
|
|
|
|
|
|
Energy
|
|
Corporate /
|
|
|
|
(Thousands of Dollars)
|
|
|
Production
|
|
Storage
|
|
Gathering
|
|
Utility
|
|
Marketing
|
|
All Other
|
|
Consolidated*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2015 GAAP earnings
|
|
|
$
|
(556,974
|
)
|
|
$
|
80,354
|
|
|
$
|
31,849
|
|
|
$
|
63,271
|
|
|
$
|
7,766
|
|
|
$
|
(5,693
|
)
|
|
$
|
(379,427
|
)
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas producing properties
|
|
|
1,126,257
|
|
|
|
|
|
|
|
|
|
|
|
|
1,126,257
|
|
|
Tax impact of impairment of oil and gas producing properties
|
|
|
(476,097
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(476,097
|
)
|
|
Deferred income tax adjustments
|
|
|
(13,206
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(13,206
|
)
|
|
Reversal of stock-based compensation
|
|
|
(2,767
|
)
|
|
(1,900
|
)
|
|
—
|
|
|
(1,684
|
)
|
|
—
|
|
|
(1,425
|
)
|
|
(7,776
|
)
|
|
Tax impact of reversal of stock-based compensation
|
|
|
1,170
|
|
|
754
|
|
|
—
|
|
|
649
|
|
|
—
|
|
|
522
|
|
|
3,095
|
|
|
Fiscal 2015 operating results
|
|
|
78,383
|
|
|
79,208
|
|
|
31,849
|
|
|
62,236
|
|
|
7,766
|
|
|
(6,596
|
)
|
|
252,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) crude oil prices
|
|
|
(23,643
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(23,643
|
)
|
|
Higher (lower) natural gas prices
|
|
|
(33,645
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(33,645
|
)
|
|
Higher (lower) natural gas production
|
|
|
8,751
|
|
|
|
|
|
|
|
|
|
|
|
|
8,751
|
|
|
Higher (lower) crude oil production
|
|
|
(5,103
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(5,103
|
)
|
|
Derivative mark to market adjustments
|
|
|
(2,061
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(2,061
|
)
|
|
Lower (higher) lease operating and transportation expenses
|
|
|
9,026
|
|
|
|
|
|
|
|
|
|
|
|
|
9,026
|
|
|
Lower (higher) depreciation / depletion
|
|
|
64,906
|
|
|
(3,312
|
)
|
|
(2,895
|
)
|
|
(1,951
|
)
|
|
|
|
|
|
56,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) transportation revenues
|
|
|
|
|
10,601
|
|
|
|
|
|
|
|
|
|
|
10,601
|
|
|
Higher (lower) gathering and processing revenues
|
|
|
|
|
|
|
7,956
|
|
|
|
|
|
|
|
|
7,956
|
|
|
Lower (higher) other operating expenses
|
|
|
4,946
|
|
|
(1,145
|
)
|
|
(1,603
|
)
|
|
6,592
|
|
|
|
|
1,447
|
|
|
10,237
|
|
|
Lower (higher) property, franchise and other taxes
|
|
|
4,142
|
|
|
(870
|
)
|
|
|
|
|
|
|
|
|
|
3,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory true-up adjustments
|
|
|
|
|
|
|
|
|
(3,389
|
)
|
|
|
|
|
|
(3,389
|
)
|
|
Warmer weather
|
|
|
|
|
|
|
|
|
(12,457
|
)
|
|
|
|
|
|
(12,457
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) margins
|
|
|
|
|
|
|
|
|
|
|
(3,589
|
)
|
|
910
|
|
|
(2,679
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) AFUDC**
|
|
|
|
|
(904
|
)
|
|
|
|
|
|
|
|
|
|
(904
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) interest income
|
|
|
(1,102
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(1,102
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) interest expense
|
|
|
(5,660
|
)
|
|
(3,685
|
)
|
|
(4,709
|
)
|
|
|
|
|
|
|
|
(14,054
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax expense / effective tax rate
|
|
|
3,207
|
|
|
(2,695
|
)
|
|
|
|
|
|
|
|
1,620
|
|
|
2,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding
|
|
|
(413
|
)
|
|
(588
|
)
|
|
(99
|
)
|
|
(71
|
)
|
|
171
|
|
|
2,086
|
|
|
1,086
|
|
|
Fiscal 2016 operating results
|
|
|
101,734
|
|
|
76,610
|
|
|
30,499
|
|
|
50,960
|
|
|
4,348
|
|
|
(533
|
)
|
|
263,618
|
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas producing properties
|
|
|
(948,307
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(948,307
|
)
|
|
Tax impact of impairment of oil and gas producing properties
|
|
|
398,287
|
|
|
|
|
|
|
|
|
|
|
|
|
398,287
|
|
|
Joint development agreement professional fees
|
|
|
(7,855
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(7,855
|
)
|
|
Tax impact of joint development agreement professional fees
|
|
|
3,299
|
|
|
|
|
|
|
|
|
|
|
|
|
3,299
|
|
|
Fiscal 2016 GAAP earnings
|
|
|
$
|
(452,842
|
)
|
|
$
|
76,610
|
|
|
$
|
30,499
|
|
|
$
|
50,960
|
|
|
$
|
4,348
|
|
|
$
|
(533
|
)
|
|
$
|
(290,958
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect intercompany eliminations
|
|
** AFUDC = Allowance for Funds Used During Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
|
|
TWELVE MONTHS ENDED SEPTEMBER 30, 2016
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
Midstream Businesses
|
|
Downstream Businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration &
|
|
Pipeline &
|
|
|
|
|
|
Energy
|
|
Corporate /
|
|
|
|
|
|
|
Production
|
|
Storage
|
|
Gathering
|
|
Utility
|
|
Marketing
|
|
All Other
|
|
Consolidated*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2015 GAAP earnings
|
|
|
$
|
(6.60
|
)
|
|
$
|
0.95
|
|
|
$
|
0.38
|
|
|
$
|
0.75
|
|
|
$
|
0.09
|
|
|
$
|
(0.07
|
)
|
|
$
|
(4.50
|
)
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas producing properties
|
|
|
13.35
|
|
|
|
|
|
|
|
|
|
|
|
|
13.35
|
|
|
Tax impact of impairment of oil and gas producing properties
|
|
|
(5.64
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(5.64
|
)
|
|
Deferred income tax adjustments
|
|
|
(0.15
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.15
|
)
|
|
Reversal of stock-based compensation
|
|
|
(0.03
|
)
|
|
(0.02
|
)
|
|
—
|
|
|
(0.02
|
)
|
|
—
|
|
|
(0.02
|
)
|
|
(0.09
|
)
|
|
Tax impact of reversal of stock-based compensation
|
|
|
0.01
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
0.04
|
|
|
Earnings per share impact of diluted shares
|
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
(0.04
|
)
|
|
Fiscal 2015 operating results
|
|
|
0.92
|
|
|
0.93
|
|
|
0.38
|
|
|
0.73
|
|
|
0.09
|
|
|
(0.08
|
)
|
|
2.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) crude oil prices
|
|
|
(0.28
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.28
|
)
|
|
Higher (lower) natural gas prices
|
|
|
(0.39
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.39
|
)
|
|
Higher (lower) natural gas production
|
|
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
0.10
|
|
|
Higher (lower) crude oil production
|
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.06
|
)
|
|
Derivative mark to market adjustments
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
Lower (higher) lease operating and transportation expenses
|
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
0.11
|
|
|
Lower (higher) depreciation / depletion
|
|
|
0.76
|
|
|
(0.04
|
)
|
|
(0.03
|
)
|
|
(0.02
|
)
|
|
|
|
|
|
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) transportation revenues
|
|
|
|
|
0.12
|
|
|
|
|
|
|
|
|
|
|
0.12
|
|
|
Higher (lower) gathering and processing revenues
|
|
|
|
|
|
|
0.09
|
|
|
|
|
|
|
|
|
0.09
|
|
|
Lower (higher) other operating expenses
|
|
|
0.06
|
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
0.08
|
|
|
|
|
0.02
|
|
|
0.13
|
|
|
Lower (higher) property, franchise and other taxes
|
|
|
0.05
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory true-up adjustments
|
|
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
(0.04
|
)
|
|
Warmer weather
|
|
|
|
|
|
|
|
|
(0.15
|
)
|
|
|
|
|
|
(0.15
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) margins
|
|
|
|
|
|
|
|
|
|
|
(0.04
|
)
|
|
0.01
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) AFUDC**
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) interest income
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) interest expense
|
|
|
(0.07
|
)
|
|
(0.04
|
)
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
(0.17
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax expense / effective tax rate
|
|
|
0.04
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
|
0.02
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding
|
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
(0.01
|
)
|
|
Fiscal 2016 operating results
|
|
|
1.19
|
|
|
0.90
|
|
|
0.36
|
|
|
0.60
|
|
|
0.05
|
|
|
(0.01
|
)
|
|
3.09
|
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas producing properties
|
|
|
(11.18
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(11.18
|
)
|
|
Tax impact of impairment of oil and gas producing properties
|
|
|
4.69
|
|
|
|
|
|
|
|
|
|
|
|
|
4.69
|
|
|
Joint development agreement professional fees
|
|
|
(0.09
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.09
|
)
|
|
Tax impact of joint development agreement professional fees
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
0.04
|
|
|
Earnings per share impact of diluted shares
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
0.02
|
|
|
Fiscal 2016 GAAP earnings
|
|
|
$
|
(5.34
|
)
|
|
$
|
0.90
|
|
|
$
|
0.36
|
|
|
$
|
0.60
|
|
|
$
|
0.05
|
|
|
$
|
—
|
|
|
$
|
(3.43
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect intercompany eliminations
|
|
** AFUDC = Allowance for Funds Used During Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
SUMMARY OF OPERATIONS
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Operating Revenues:
|
|
|
|
|
|
|
|
|
|
|
Utility and Energy Marketing Revenues
|
|
|
$
|
83,620
|
|
|
$
|
87,816
|
|
|
$
|
624,602
|
|
|
$
|
860,618
|
|
|
Exploration and Production and Other Revenues
|
|
|
155,734
|
|
|
164,537
|
|
|
611,766
|
|
|
696,709
|
|
|
Pipeline and Storage and Gathering Revenues
|
|
|
53,118
|
|
|
48,709
|
|
|
216,048
|
|
|
203,586
|
|
|
|
|
|
292,472
|
|
|
301,062
|
|
|
1,452,416
|
|
|
1,760,913
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
814
|
|
|
5,256
|
|
|
147,982
|
|
|
349,984
|
|
|
Operation and Maintenance:
|
|
|
|
|
|
|
|
|
|
|
Utility and Energy Marketing
|
|
|
41,038
|
|
|
46,525
|
|
|
192,512
|
|
|
203,249
|
|
|
Exploration and Production and Other
|
|
|
36,235
|
|
|
43,460
|
|
|
160,201
|
|
|
184,024
|
|
|
Pipeline and Storage and Gathering
|
|
|
24,477
|
|
|
23,493
|
|
|
88,801
|
|
|
82,730
|
|
|
Property, Franchise and Other Taxes
|
|
|
19,791
|
|
|
21,002
|
|
|
81,714
|
|
|
89,564
|
|
|
Depreciation, Depletion and Amortization
|
|
|
56,117
|
|
|
70,860
|
|
|
249,417
|
|
|
336,158
|
|
|
Impairment of Oil and Gas Producing Properties
|
|
|
32,756
|
|
|
417,197
|
|
|
948,307
|
|
|
1,126,257
|
|
|
|
|
|
211,228
|
|
|
627,793
|
|
|
1,868,934
|
|
|
2,371,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
81,244
|
|
|
(326,731
|
)
|
|
(416,518
|
)
|
|
(611,053
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
1,595
|
|
|
2,291
|
|
|
4,235
|
|
|
3,922
|
|
|
Other Income
|
|
|
2,647
|
|
|
3,401
|
|
|
9,820
|
|
|
8,039
|
|
|
Interest Expense on Long-Term Debt
|
|
|
(29,083
|
)
|
|
(29,016
|
)
|
|
(117,347
|
)
|
|
(95,916
|
)
|
|
Other Interest Expense
|
|
|
241
|
|
|
(173
|
)
|
|
(3,697
|
)
|
|
(3,555
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
56,644
|
|
|
(350,228
|
)
|
|
(523,507
|
)
|
|
(698,563
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
|
19,091
|
|
|
(162,525
|
)
|
|
(232,549
|
)
|
|
(319,136
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Available for Common Stock
|
|
|
$
|
37,553
|
|
|
$
|
(187,703
|
)
|
|
$
|
(290,958
|
)
|
|
$
|
(379,427
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.44
|
|
|
$
|
(2.22
|
)
|
|
$
|
(3.43
|
)
|
|
$
|
(4.50
|
)
|
|
Diluted
|
|
|
$
|
0.44
|
|
|
$
|
(2.22
|
)
|
|
$
|
(3.43
|
)
|
|
$
|
(4.50
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares:
|
|
|
|
|
|
|
|
|
|
|
Used in Basic Calculation
|
|
|
85,016,408
|
|
84,570,432
|
|
84,847,993
|
|
84,387,755
|
|
Used in Diluted Calculation
|
|
|
85,629,858
|
|
84,570,432
|
|
84,847,993
|
|
84,387,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
(Thousands of Dollars)
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Property, Plant and Equipment
|
|
|
$9,539,581
|
|
|
$9,261,323
|
|
Less - Accumulated Depreciation, Depletion and Amortization
|
|
|
5,085,099
|
|
|
3,929,428
|
|
Net Property, Plant and Equipment
|
|
|
4,454,482
|
|
|
5,331,895
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
Cash and Temporary Cash Investments
|
|
|
129,972
|
|
|
113,596
|
|
Hedging Collateral Deposits
|
|
|
1,484
|
|
|
11,124
|
|
Receivables - Net
|
|
|
133,201
|
|
|
105,004
|
|
Unbilled Revenue
|
|
|
18,382
|
|
|
20,746
|
|
Gas Stored Underground
|
|
|
34,332
|
|
|
34,252
|
|
Materials and Supplies - at average cost
|
|
|
33,866
|
|
|
30,414
|
|
Unrecovered Purchased Gas Costs
|
|
|
2,440
|
|
|
—
|
|
Other Current Assets
|
|
|
59,354
|
|
|
60,665
|
|
Total Current Assets
|
|
|
413,031
|
|
|
375,801
|
|
|
|
|
|
|
|
|
Other Assets:
|
|
|
|
|
|
|
Recoverable Future Taxes
|
|
|
177,261
|
|
|
168,214
|
|
Unamortized Debt Expense
|
|
|
1,688
|
|
|
2,218
|
|
Other Regulatory Assets
|
|
|
320,750
|
|
|
278,227
|
|
Deferred Charges
|
|
|
20,978
|
|
|
15,129
|
|
Other Investments
|
|
|
110,664
|
|
|
92,990
|
|
Goodwill
|
|
|
5,476
|
|
|
5,476
|
|
Prepaid Post-Retirement Benefit Costs
|
|
|
17,649
|
|
|
24,459
|
|
Fair Value of Derivative Financial Instruments
|
|
|
113,804
|
|
|
270,363
|
|
Other
|
|
|
604
|
|
|
167
|
|
Total Other Assets
|
|
|
768,874
|
|
|
857,243
|
|
Total Assets
|
|
|
$5,636,387
|
|
|
$6,564,939
|
|
|
|
|
|
|
|
|
CAPITALIZATION AND LIABILITIES
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
Comprehensive Shareholders' Equity
|
|
|
|
|
|
|
Common Stock, $1 Par Value Authorized - 200,000,000
|
|
|
|
|
|
|
Shares; Issued and Outstanding - 85,118,886 Shares
|
|
|
|
|
|
|
and 84,594,383 Shares, Respectively
|
|
|
$85,119
|
|
|
$84,594
|
|
Paid in Capital
|
|
|
771,164
|
|
|
744,274
|
|
Earnings Reinvested in the Business
|
|
|
676,361
|
|
|
1,103,200
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
(5,640
|
)
|
|
93,372
|
|
Total Comprehensive Shareholders' Equity
|
|
|
1,527,004
|
|
|
2,025,440
|
|
Long-Term Debt, Net of Unamortized Discount and Debt Issuance Costs
|
|
|
2,086,252
|
|
|
2,084,009
|
|
Total Capitalization
|
|
|
3,613,256
|
|
|
4,109,449
|
|
|
|
|
|
|
|
|
Current and Accrued Liabilities:
|
|
|
|
|
|
|
Notes Payable to Banks and Commercial Paper
|
|
|
—
|
|
|
—
|
|
Current Portion of Long-Term Debt
|
|
|
—
|
|
|
—
|
|
Accounts Payable
|
|
|
108,056
|
|
|
180,388
|
|
Amounts Payable to Customers
|
|
|
19,537
|
|
|
56,778
|
|
Dividends Payable
|
|
|
34,473
|
|
|
33,415
|
|
Interest Payable on Long-Term Debt
|
|
|
34,900
|
|
|
36,200
|
|
Customer Advances
|
|
|
14,762
|
|
|
16,236
|
|
Customer Security Deposits
|
|
|
16,019
|
|
|
16,490
|
|
Other Accruals and Current Liabilities
|
|
|
74,430
|
|
|
96,557
|
|
Fair Value of Derivative Financial Instruments
|
|
|
1,560
|
|
|
10,076
|
|
Total Current and Accrued Liabilities
|
|
|
303,737
|
|
|
446,140
|
|
|
|
|
|
|
|
|
Deferred Credits:
|
|
|
|
|
|
|
Deferred Income Taxes
|
|
|
823,795
|
|
|
1,137,962
|
|
Taxes Refundable to Customers
|
|
|
93,318
|
|
|
89,448
|
|
Unamortized Investment Tax Credit
|
|
|
383
|
|
|
731
|
|
Cost of Removal Regulatory Liability
|
|
|
193,424
|
|
|
184,907
|
|
Other Regulatory Liabilities
|
|
|
99,789
|
|
|
108,617
|
|
Pension and Other Post-Retirement Liabilities
|
|
|
277,113
|
|
|
202,807
|
|
Asset Retirement Obligations
|
|
|
112,330
|
|
|
156,805
|
|
Other Deferred Credits
|
|
|
119,242
|
|
|
128,073
|
|
Total Deferred Credits
|
|
|
1,719,394
|
|
|
2,009,350
|
|
Commitments and Contingencies
|
|
|
—
|
|
|
—
|
|
Total Capitalization and Liabilities
|
|
|
$5,636,387
|
|
|
$6,564,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
September 30,
|
|
(Thousands of Dollars)
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
|
|
|
Net Income (Loss) Available for Common Stock
|
|
|
|
$
|
(290,958
|
)
|
|
$
|
(379,427
|
)
|
|
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by
Operating Activities:
|
|
|
|
|
|
|
|
Impairment of Oil and Gas Producing Properties
|
|
|
|
948,307
|
|
|
1,126,257
|
|
|
Depreciation, Depletion and Amortization
|
|
|
|
249,417
|
|
|
336,158
|
|
|
Deferred Income Taxes
|
|
|
|
(246,794
|
)
|
|
(357,587
|
)
|
|
Excess Tax Benefits Associated with Stock-Based Compensation Awards
|
|
|
|
(1,868
|
)
|
|
(9,064
|
)
|
|
Stock-Based Compensation
|
|
|
|
5,755
|
|
|
3,208
|
|
|
Other
|
|
|
|
12,620
|
|
|
9,823
|
|
|
Change in:
|
|
|
|
|
|
|
|
Hedging Collateral Deposits
|
|
|
|
9,640
|
|
|
(8,390
|
)
|
|
Receivables and Unbilled Revenue
|
|
|
|
(6,408
|
)
|
|
51,638
|
|
|
Gas Stored Underground and Materials and Supplies
|
|
|
|
(3,532
|
)
|
|
3,438
|
|
|
Unrecovered Purchased Gas Costs
|
|
|
|
(2,440
|
)
|
|
—
|
|
|
Other Current Assets
|
|
|
|
3,179
|
|
|
3,150
|
|
|
Accounts Payable
|
|
|
|
(40,664
|
)
|
|
34,687
|
|
|
Amounts Payable to Customers
|
|
|
|
(37,241
|
)
|
|
23,033
|
|
|
Customer Advances
|
|
|
|
(1,474
|
)
|
|
(2,769
|
)
|
|
Customer Security Deposits
|
|
|
|
(471
|
)
|
|
729
|
|
|
Other Accruals and Current Liabilities
|
|
|
|
3,453
|
|
|
(7,173
|
)
|
|
Other Assets
|
|
|
|
1,941
|
|
|
2,696
|
|
|
Other Liabilities
|
|
|
|
(13,483
|
)
|
|
23,173
|
|
|
Net Cash Provided by Operating Activities
|
|
|
|
$
|
588,979
|
|
|
$
|
853,580
|
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
|
|
$
|
(581,576
|
)
|
|
$
|
(1,018,179
|
)
|
|
Net Proceeds from Sale of Oil and Gas Producing Properties
|
|
|
|
137,316
|
|
|
—
|
|
|
Other
|
|
|
|
(9,236
|
)
|
|
(6,611
|
)
|
|
Net Cash Used in Investing Activities
|
|
|
|
$
|
(453,496
|
)
|
|
$
|
(1,024,790
|
)
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
Changes in Notes Payable to Banks and Commercial Paper
|
|
|
|
$
|
—
|
|
|
$
|
(85,600
|
)
|
|
Excess Tax Benefits Associated with Stock-Based Compensation Awards
|
|
|
|
1,868
|
|
|
9,064
|
|
|
Dividends Paid on Common Stock
|
|
|
|
(134,824
|
)
|
|
(130,719
|
)
|
|
Net Proceeds From Issuance of Long-Term Debt
|
|
|
|
—
|
|
|
444,635
|
|
|
Net Proceeds From Issuance of Common Stock
|
|
|
|
13,849
|
|
|
10,540
|
|
|
Net Cash (Used in) Provided by Financing Activities
|
|
|
|
$
|
(119,107
|
)
|
|
$
|
247,920
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Cash and Temporary Cash Investments
|
|
|
|
16,376
|
|
|
76,710
|
|
|
Cash and Temporary Cash Investments at Beginning of Period
|
|
|
|
113,596
|
|
|
36,886
|
|
|
Cash and Temporary Cash Investments at September 30
|
|
|
|
$
|
129,972
|
|
|
$
|
113,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UPSTREAM BUSINESS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
September 30,
|
|
September 30,
|
|
EXPLORATION AND PRODUCTION SEGMENT
|
|
|
2016
|
|
2015
|
|
Variance
|
|
2016
|
2015
|
Variance
|
|
Total Operating Revenues
|
|
|
$
|
154,530
|
|
|
$
|
163,851
|
|
|
$
|
(9,321
|
)
|
|
$
|
607,113
|
|
$
|
693,441
|
|
$
|
(86,328
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance:
|
|
|
|
|
|
|
|
|
|
|
|
|
General and Administrative Expense
|
|
|
14,928
|
|
|
15,321
|
|
|
(393
|
)
|
|
70,598
|
|
66,114
|
|
4,484
|
|
|
Lease Operating and Transportation Expense
|
|
|
38,463
|
|
|
40,186
|
|
|
(1,723
|
)
|
|
153,914
|
|
167,800
|
|
(13,886
|
)
|
|
All Other Operation and Maintenance Expense
|
|
|
2,429
|
|
|
3,189
|
|
|
(760
|
)
|
|
12,832
|
|
14,304
|
|
(1,472
|
)
|
|
Property, Franchise and Other Taxes
|
|
|
3,553
|
|
|
4,806
|
|
|
(1,253
|
)
|
|
13,794
|
|
20,167
|
|
(6,373
|
)
|
|
Depreciation, Depletion and Amortization
|
|
|
27,377
|
|
|
46,277
|
|
|
(18,900
|
)
|
|
139,963
|
|
239,818
|
|
(99,855
|
)
|
|
Impairment of Oil and Gas Producing Properties
|
|
|
32,756
|
|
|
417,197
|
|
|
(384,441
|
)
|
|
948,307
|
|
1,126,257
|
|
(177,950
|
)
|
|
|
|
|
119,506
|
|
|
526,976
|
|
|
(407,470
|
)
|
|
1,339,408
|
|
1,634,460
|
|
(295,052
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
35,024
|
|
|
(363,125)
|
|
398,149
|
|
|
(732,295
|
)
|
(941,019)
|
208,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
78
|
|
|
661
|
|
|
(583
|
)
|
|
858
|
|
2,554
|
|
(1,696
|
)
|
|
Interest Expense
|
|
|
(13,552
|
)
|
|
(14,176
|
)
|
|
624
|
|
|
(55,434
|
)
|
(46,726
|
)
|
(8,708
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
21,550
|
|
|
(376,640
|
)
|
|
398,190
|
|
|
(786,871
|
)
|
(985,191
|
)
|
198,320
|
|
|
Income Tax Expense (Benefit)
|
|
|
4,806
|
|
|
(169,621
|
)
|
|
174,427
|
|
|
(334,029
|
)
|
(428,217
|
)
|
94,188
|
|
|
Net Income (Loss)
|
|
|
$
|
16,744
|
|
|
$
|
(207,019
|
)
|
|
$
|
223,763
|
|
|
$
|
(452,842
|
)
|
$
|
(556,974
|
)
|
$
|
104,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Share (Diluted)
|
|
|
$
|
0.20
|
|
|
$
|
(2.45
|
)
|
|
$
|
2.65
|
|
|
$
|
(5.34
|
)
|
$
|
(6.60
|
)
|
$
|
1.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDSTREAM BUSINESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
September 30,
|
|
September 30,
|
|
PIPELINE AND STORAGE SEGMENT
|
|
|
2016
|
|
2015
|
|
Variance
|
|
2016
|
2015
|
Variance
|
|
Revenues from External Customers
|
|
|
$
|
53,047
|
|
|
$
|
48,573
|
|
|
$
|
4,474
|
|
|
$
|
215,674
|
|
$
|
203,089
|
|
$
|
12,585
|
|
|
Intersegment Revenues
|
|
|
22,483
|
|
|
21,903
|
|
|
580
|
|
|
90,755
|
|
88,251
|
|
2,504
|
|
|
Total Operating Revenues
|
|
|
75,530
|
|
|
70,476
|
|
|
5,054
|
|
|
306,429
|
|
291,340
|
|
15,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
(10
|
)
|
|
(32
|
)
|
|
22
|
|
|
1,048
|
|
462
|
|
586
|
|
|
Operation and Maintenance
|
|
|
22,256
|
|
|
21,971
|
|
|
285
|
|
|
79,402
|
|
75,741
|
|
3,661
|
|
|
Property, Franchise and Other Taxes
|
|
|
6,767
|
|
|
6,340
|
|
|
427
|
|
|
26,533
|
|
25,195
|
|
1,338
|
|
|
Depreciation, Depletion and Amortization
|
|
|
11,128
|
|
|
9,726
|
|
|
1,402
|
|
|
43,273
|
|
38,178
|
|
5,095
|
|
|
|
|
|
40,141
|
|
|
38,005
|
|
|
2,136
|
|
|
150,256
|
|
139,576
|
|
10,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
35,389
|
|
|
32,471
|
|
|
2,918
|
|
|
156,173
|
|
151,764
|
|
4,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
242
|
|
|
124
|
|
|
118
|
|
|
770
|
|
474
|
|
296
|
|
|
Other Income
|
|
|
583
|
|
|
1,999
|
|
|
(1,416
|
)
|
|
3,235
|
|
3,887
|
|
(652
|
)
|
|
Interest Expense
|
|
|
(8,309
|
)
|
|
(7,745
|
)
|
|
(564
|
)
|
|
(33,327
|
)
|
(27,658
|
)
|
(5,669
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
|
|
27,905
|
|
|
26,849
|
|
|
1,056
|
|
|
126,851
|
|
128,467
|
|
(1,616
|
)
|
|
Income Tax Expense
|
|
|
11,089
|
|
|
8,364
|
|
|
2,725
|
|
|
50,241
|
|
48,113
|
|
2,128
|
|
|
Net Income
|
|
|
$
|
16,816
|
|
|
$
|
18,485
|
|
|
$
|
(1,669
|
)
|
|
$
|
76,610
|
|
$
|
80,354
|
|
$
|
(3,744
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share (Diluted)
|
|
|
$
|
0.20
|
|
|
$
|
0.22
|
|
|
$
|
(0.02
|
)
|
|
$
|
0.90
|
|
$
|
0.95
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
GATHERING SEGMENT
|
|
|
2016
|
|
2015
|
|
Variance
|
|
2016
|
2015
|
Variance
|
|
Revenues from External Customers
|
|
|
$
|
71
|
|
|
$
|
136
|
|
|
$
|
(65
|
)
|
|
$
|
374
|
|
$
|
497
|
|
$
|
(123
|
)
|
|
Intersegment Revenues
|
|
|
23,471
|
|
|
18,169
|
|
|
5,302
|
|
|
89,073
|
|
76,709
|
|
12,364
|
|
|
Total Operating Revenues
|
|
|
23,542
|
|
|
18,305
|
|
|
5,237
|
|
|
89,447
|
|
77,206
|
|
12,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance
|
|
|
2,547
|
|
|
1,831
|
|
|
716
|
|
|
10,613
|
|
8,147
|
|
2,466
|
|
|
Property, Franchise and Other Taxes
|
|
|
32
|
|
|
48
|
|
|
(16
|
)
|
|
149
|
|
178
|
|
(29
|
)
|
|
Depreciation, Depletion and Amortization
|
|
|
3,876
|
|
|
2,804
|
|
|
1,072
|
|
|
15,282
|
|
10,829
|
|
4,453
|
|
|
|
|
|
6,455
|
|
|
4,683
|
|
|
1,772
|
|
|
26,044
|
|
19,154
|
|
6,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
17,087
|
|
|
13,622
|
|
|
3,465
|
|
|
63,403
|
|
58,052
|
|
5,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
109
|
|
|
46
|
|
|
63
|
|
|
297
|
|
140
|
|
157
|
|
|
Other Income
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
5
|
|
5
|
|
—
|
|
|
Interest Expense
|
|
|
(2,091
|
)
|
|
(1,413
|
)
|
|
(678
|
)
|
|
(8,872
|
)
|
(1,627
|
)
|
(7,245
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
|
|
15,106
|
|
|
12,256
|
|
|
2,850
|
|
|
54,833
|
|
56,570
|
|
(1,737
|
)
|
|
Income Tax Expense
|
|
|
6,569
|
|
|
4,662
|
|
|
1,907
|
|
|
24,334
|
|
24,721
|
|
(387
|
)
|
|
Net Income
|
|
|
$
|
8,537
|
|
|
$
|
7,594
|
|
|
$
|
943
|
|
|
$
|
30,499
|
|
$
|
31,849
|
|
$
|
(1,350
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share (Diluted)
|
|
|
$
|
0.10
|
|
|
$
|
0.09
|
|
|
$
|
0.01
|
|
|
$
|
0.36
|
|
$
|
0.38
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DOWNSTREAM BUSINESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
September 30,
|
|
September 30,
|
|
UTILITY SEGMENT
|
|
|
2016
|
|
2015
|
|
Variance
|
|
2016
|
2015
|
Variance
|
|
Revenues from External Customers
|
|
|
$
|
67,870
|
|
|
$
|
70,712
|
|
|
$
|
(2,842
|
)
|
|
$
|
531,024
|
|
$
|
700,761
|
|
$
|
(169,737
|
)
|
|
Intersegment Revenues
|
|
|
2,367
|
|
|
1,836
|
|
|
531
|
|
|
13,123
|
|
15,506
|
|
(2,383
|
)
|
|
Total Operating Revenues
|
|
|
70,237
|
|
|
72,548
|
|
|
(2,311
|
)
|
|
544,147
|
|
716,267
|
|
(172,120
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
10,392
|
|
|
12,164
|
|
|
(1,772
|
)
|
|
166,155
|
|
307,653
|
|
(141,498
|
)
|
|
Operation and Maintenance
|
|
|
40,294
|
|
|
45,899
|
|
|
(5,605
|
)
|
|
189,178
|
|
200,023
|
|
(10,845
|
)
|
|
Property, Franchise and Other Taxes
|
|
|
9,151
|
|
|
9,490
|
|
|
(339
|
)
|
|
40,131
|
|
42,870
|
|
(2,739
|
)
|
|
Depreciation, Depletion and Amortization
|
|
|
13,107
|
|
|
11,635
|
|
|
1,472
|
|
|
48,618
|
|
45,616
|
|
3,002
|
|
|
|
|
|
72,944
|
|
|
79,188
|
|
|
(6,244
|
)
|
|
444,082
|
|
596,162
|
|
(152,080
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
(2,707
|
)
|
|
(6,640
|
)
|
|
3,933
|
|
|
100,065
|
|
120,105
|
|
(20,040
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
1,415
|
|
|
2,178
|
|
|
(763
|
)
|
|
1,737
|
|
2,220
|
|
(483
|
)
|
|
Other Income
|
|
|
593
|
|
|
662
|
|
|
(69
|
)
|
|
2,342
|
|
2,265
|
|
77
|
|
|
Interest Expense
|
|
|
(5,898
|
)
|
|
(7,030
|
)
|
|
1,132
|
|
|
(27,582
|
)
|
(28,176
|
)
|
594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
(6,597
|
)
|
|
(10,830
|
)
|
|
4,233
|
|
|
76,562
|
|
96,414
|
|
(19,852
|
)
|
|
Income Tax Expense (Benefit)
|
|
|
(4,813
|
)
|
|
(7,542
|
)
|
|
2,729
|
|
|
25,602
|
|
33,143
|
|
(7,541
|
)
|
|
Net Income (Loss)
|
|
|
$
|
(1,784
|
)
|
|
$
|
(3,288
|
)
|
|
$
|
1,504
|
|
|
$
|
50,960
|
|
$
|
63,271
|
|
$
|
(12,311
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Share (Diluted)
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
0.02
|
|
|
$
|
0.60
|
|
$
|
0.75
|
|
$
|
(0.15
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
ENERGY MARKETING SEGMENT
|
|
|
2016
|
|
2015
|
|
Variance
|
|
2016
|
2015
|
Variance
|
|
Revenues from External Customers
|
|
|
$
|
15,750
|
|
|
$
|
17,104
|
|
|
$
|
(1,354
|
)
|
|
$
|
93,578
|
|
$
|
159,857
|
|
$
|
(66,279
|
)
|
|
Intersegment Revenues
|
|
|
30
|
|
|
53
|
|
|
(23
|
)
|
|
884
|
|
849
|
|
35
|
|
|
Total Operating Revenues
|
|
|
15,780
|
|
|
17,157
|
|
|
(1,377
|
)
|
|
94,462
|
|
160,706
|
|
(66,244
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
14,111
|
|
|
15,743
|
|
|
(1,632
|
)
|
|
81,347
|
|
142,068
|
|
(60,721
|
)
|
|
Operation and Maintenance
|
|
|
1,575
|
|
|
1,583
|
|
|
(8
|
)
|
|
6,447
|
|
6,386
|
|
61
|
|
|
Property, Franchise and Other Taxes
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
13
|
|
15
|
|
(2
|
)
|
|
Depreciation, Depletion and Amortization
|
|
|
70
|
|
|
57
|
|
|
13
|
|
|
278
|
|
209
|
|
69
|
|
|
|
|
|
15,763
|
|
|
17,390
|
|
|
(1,627
|
)
|
|
88,085
|
|
148,678
|
|
(60,593
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
17
|
|
|
(233
|
)
|
|
250
|
|
|
6,377
|
|
12,028
|
|
(5,651
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
136
|
|
|
54
|
|
|
82
|
|
|
422
|
|
195
|
|
227
|
|
|
Other Income
|
|
|
15
|
|
|
21
|
|
|
(6
|
)
|
|
58
|
|
117
|
|
(59
|
)
|
|
Interest Expense
|
|
|
(13
|
)
|
|
(7
|
)
|
|
(6
|
)
|
|
(49
|
)
|
(27
|
)
|
(22
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
155
|
|
|
(165
|
)
|
|
320
|
|
|
6,808
|
|
12,313
|
|
(5,505
|
)
|
|
Income Tax Expense (Benefit)
|
|
|
(76
|
)
|
|
(199
|
)
|
|
123
|
|
|
2,460
|
|
4,547
|
|
(2,087
|
)
|
|
Net Income
|
|
|
$
|
231
|
|
|
$
|
34
|
|
|
$
|
197
|
|
|
$
|
4,348
|
|
$
|
7,766
|
|
$
|
(3,418
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share (Diluted)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.05
|
|
$
|
0.09
|
|
$
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
September 30,
|
|
September 30,
|
|
ALL OTHER
|
|
|
2016
|
|
2015
|
|
Variance
|
|
2016
|
2015
|
Variance
|
|
Total Operating Revenues
|
|
|
$
|
978
|
|
|
$
|
446
|
|
|
$
|
532
|
|
|
$
|
3,753
|
|
$
|
2,352
|
|
$
|
1,401
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance
|
|
|
281
|
|
|
226
|
|
|
55
|
|
|
776
|
|
936
|
|
(160
|
)
|
|
Property, Franchise and Other Taxes
|
|
|
145
|
|
|
182
|
|
|
(37
|
)
|
|
593
|
|
644
|
|
(51
|
)
|
|
Depreciation, Depletion and Amortization
|
|
|
373
|
|
|
187
|
|
|
186
|
|
|
1,260
|
|
832
|
|
428
|
|
|
|
|
|
799
|
|
|
595
|
|
|
204
|
|
|
2,629
|
|
2,412
|
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
179
|
|
|
(149
|
)
|
|
328
|
|
|
1,124
|
|
(60
|
)
|
1,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
35
|
|
|
18
|
|
|
17
|
|
|
117
|
|
66
|
|
51
|
|
|
Other Income
|
|
|
98
|
|
|
1
|
|
|
97
|
|
|
98
|
|
5
|
|
93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
312
|
|
|
(130
|
)
|
|
442
|
|
|
1,339
|
|
11
|
|
1,328
|
|
|
Income Tax Expense (Benefit)
|
|
|
130
|
|
|
(63
|
)
|
|
193
|
|
|
561
|
|
13
|
|
548
|
|
|
Net Income (Loss)
|
|
|
$
|
182
|
|
|
$
|
(67
|
)
|
|
$
|
249
|
|
|
$
|
778
|
|
$
|
(2
|
)
|
$
|
780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Share (Diluted)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
$
|
—
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
CORPORATE
|
|
|
2016
|
|
2015
|
|
Variance
|
|
2016
|
2015
|
Variance
|
|
Revenues from External Customers
|
|
|
$
|
226
|
|
|
$
|
240
|
|
|
$
|
(14
|
)
|
|
$
|
900
|
|
$
|
916
|
|
$
|
(16
|
)
|
|
Intersegment Revenues
|
|
|
1,091
|
|
|
1,195
|
|
|
(104
|
)
|
|
3,991
|
|
3,987
|
|
4
|
|
|
Total Operating Revenues
|
|
|
1,317
|
|
|
1,435
|
|
|
(118
|
)
|
|
4,891
|
|
4,903
|
|
(12
|
)
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance
|
|
|
4,740
|
|
|
3,809
|
|
|
931
|
|
|
15,012
|
|
15,655
|
|
(643
|
)
|
|
Property, Franchise and Other Taxes
|
|
|
136
|
|
|
129
|
|
|
7
|
|
|
501
|
|
495
|
|
6
|
|
|
Depreciation, Depletion and Amortization
|
|
|
186
|
|
|
174
|
|
|
12
|
|
|
743
|
|
676
|
|
67
|
|
|
|
|
|
5,062
|
|
|
4,112
|
|
|
950
|
|
|
16,256
|
|
16,826
|
|
(570
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss
|
|
|
(3,745
|
)
|
|
(2,677
|
)
|
|
(1,068
|
)
|
|
(11,365
|
)
|
(11,923
|
)
|
558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
30,389
|
|
|
29,999
|
|
|
390
|
|
|
123,156
|
|
104,477
|
|
18,679
|
|
|
Other Income
|
|
|
1,357
|
|
|
717
|
|
|
640
|
|
|
4,082
|
|
1,760
|
|
2,322
|
|
|
Interest Expense on Long-Term Debt
|
|
|
(29,083
|
)
|
|
(29,016
|
)
|
|
(67
|
)
|
|
(117,347
|
)
|
(95,916
|
)
|
(21,431
|
)
|
|
Other Interest Expense
|
|
|
(705
|
)
|
|
(591
|
)
|
|
(114
|
)
|
|
(1,555
|
)
|
(5,545
|
)
|
3,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Before Income Taxes
|
|
|
(1,787
|
)
|
|
(1,568
|
)
|
|
(219
|
)
|
|
(3,029
|
)
|
(7,147
|
)
|
4,118
|
|
|
Income Tax Expense (Benefit)
|
|
|
1,386
|
|
|
1,874
|
|
|
(488
|
)
|
|
(1,718
|
)
|
(1,456
|
)
|
(262
|
)
|
|
Net Loss
|
|
|
$
|
(3,173
|
)
|
|
$
|
(3,442
|
)
|
|
$
|
269
|
|
|
$
|
(1,311
|
)
|
$
|
(5,691
|
)
|
$
|
4,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Per Share (Diluted)
|
|
|
$
|
(0.04
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
$
|
(0.07
|
)
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
INTERSEGMENT ELIMINATIONS
|
|
|
2016
|
|
2015
|
|
Variance
|
|
2016
|
2015
|
Variance
|
|
Intersegment Revenues
|
|
|
$
|
(49,442
|
)
|
|
$
|
(43,156
|
)
|
|
$
|
(6,286
|
)
|
|
$
|
(197,826
|
)
|
$
|
(185,302
|
)
|
$
|
(12,524
|
)
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
(23,679
|
)
|
|
(22,619
|
)
|
|
(1,060
|
)
|
|
(100,568
|
)
|
(100,199
|
)
|
(369
|
)
|
|
Operation and Maintenance
|
|
|
(25,763
|
)
|
|
(20,537
|
)
|
|
(5,226
|
)
|
|
(97,258
|
)
|
(85,103
|
)
|
(12,155
|
)
|
|
|
|
|
(49,442
|
)
|
|
(43,156
|
)
|
|
(6,286
|
)
|
|
(197,826
|
)
|
(185,302
|
)
|
(12,524
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
(30,809
|
)
|
|
(30,789
|
)
|
|
(20
|
)
|
|
(123,122
|
)
|
(106,204
|
)
|
(16,918
|
)
|
|
Interest Expense
|
|
|
30,809
|
|
|
30,789
|
|
|
20
|
|
|
123,122
|
|
106,204
|
|
16,918
|
|
|
Net Income
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share (Diluted)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION (Continued)
|
|
(Thousands of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
|
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production (4)
|
|
|
$
|
41,181
|
|
(1)
|
$
|
119,863
|
|
(2)
|
$
|
(78,682
|
)
|
|
$
|
256,104
|
|
(1)(2)
|
$
|
557,313
|
|
(2)(3)
|
$
|
(301,209
|
)
|
|
Pipeline and Storage
|
|
|
38,230
|
|
(1)
|
115,528
|
|
(2)
|
(77,298
|
)
|
|
114,250
|
|
(1)(2)
|
230,192
|
|
(2)(3)
|
(115,942
|
)
|
|
Gathering
|
|
|
10,578
|
|
(1)
|
30,952
|
|
(2)
|
(20,374
|
)
|
|
54,293
|
|
(1)(2)
|
118,166
|
|
(2)(3)
|
(63,873
|
)
|
|
Utility
|
|
|
25,719
|
|
(1)
|
29,034
|
|
(2)
|
(3,315
|
)
|
|
98,007
|
|
(1)(2)
|
94,371
|
|
(2)(3)
|
3,636
|
|
|
Energy Marketing
|
|
|
6
|
|
|
4
|
|
|
2
|
|
|
34
|
|
|
128
|
|
|
(94
|
)
|
|
Total Reportable Segments
|
|
|
115,714
|
|
|
295,381
|
|
|
(179,667
|
)
|
|
522,688
|
|
|
1,000,170
|
|
|
(477,482
|
)
|
|
All Other
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
37
|
|
|
Corporate
|
|
|
136
|
|
|
205
|
|
|
(69
|
)
|
|
326
|
|
|
339
|
|
|
(13
|
)
|
|
Total Capital Expenditures
|
|
|
$
|
115,850
|
|
|
$
|
295,586
|
|
|
$
|
(179,736
|
)
|
|
$
|
523,051
|
|
|
$
|
1,000,509
|
|
|
$
|
(477,458
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Capital expenditures for the quarter and year ended September 30,
2016, include accounts payable and accrued liabilities related to
capital expenditures of $25.2 million, $18.7 million, $5.3 million,
and $11.2 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility segment,
respectively. These amounts have been excluded from the Consolidated
Statement of Cash Flows at September 30, 2016, since they represent
non-cash investing activities at that date.
|
|
|
|
|
|
(2)
|
|
Capital expenditures for the year ended September 30, 2016, exclude
capital expenditures of $46.2 million, $33.9 million, $22.4 million
and $16.5 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, 2015 and paid during the year ended
September 30, 2016. These amounts were excluded from the
Consolidated Statement of Cash Flows at September 30, 2015, since
they represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at September 30, 2016.
|
|
|
|
|
|
(3)
|
|
Capital expenditures for the year ended September 30, 2015, exclude
capital expenditures of $80.1 million, $28.1 million, $20.1 million
and $8.3 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, 2014 and paid during the year ended
September 30, 2015. These amounts were excluded from the
Consolidated Statements of Cash Flows at September 30, 2014, since
they represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at September 30, 2015.
|
|
|
|
|
|
(4)
|
|
The capital expenditures for the Exploration and Production segment
do not include any proceeds from the sale of oil and gas assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEGREE DAYS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Colder
|
|
|
|
|
|
|
|
|
|
|
|
(Warmer) Than:
|
|
Three Months Ended September 30
|
|
|
|
Normal
|
|
2016
|
|
2015
|
|
Normal (1)
|
|
Last Year (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo, NY
|
|
|
|
162
|
|
44
|
|
70
|
|
(72.8)
|
|
(37.1)
|
|
Erie, PA
|
|
|
|
124
|
|
23
|
|
51
|
|
(81.5)
|
|
(54.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo, NY
|
|
|
|
6,653
|
|
5,611
|
|
6,968
|
|
(15.7)
|
|
(19.5)
|
|
Erie, PA
|
|
|
|
6,181
|
|
5,182
|
|
6,586
|
|
(16.2)
|
|
(21.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Percents compare actual 2016 degree days to normal degree days and
actual 2016 degree days to actual 2015 degree days.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
|
|
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Production/Prices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production (MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
34,711
|
|
|
32,183
|
|
|
2,528
|
|
|
140,457
|
|
|
136,404
|
|
|
4,053
|
|
|
West Coast
|
|
|
|
779
|
|
|
785
|
|
|
(6
|
)
|
|
3,090
|
|
|
3,159
|
|
|
(69
|
)
|
|
Total Production
|
|
|
|
35,490
|
|
|
32,968
|
|
|
2,522
|
|
|
143,547
|
|
|
139,563
|
|
|
3,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Mcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
$
|
2.24
|
|
|
$
|
2.21
|
|
|
$
|
0.03
|
|
|
$
|
1.94
|
|
|
$
|
2.48
|
|
|
$
|
(0.54
|
)
|
|
West Coast
|
|
|
|
3.62
|
|
|
3.54
|
|
|
0.08
|
|
|
3.25
|
|
|
4.11
|
|
|
(0.86
|
)
|
|
Weighted Average
|
|
|
|
2.27
|
|
|
2.24
|
|
|
0.03
|
|
|
1.97
|
|
|
2.51
|
|
|
(0.54
|
)
|
|
Weighted Average after Hedging
|
|
|
|
3.09
|
|
|
3.35
|
|
|
(0.26
|
)
|
|
3.02
|
|
|
3.38
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Production/Prices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production (Thousands of Barrels)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
12
|
|
|
8
|
|
|
4
|
|
|
28
|
|
|
30
|
|
|
(2
|
)
|
|
West Coast
|
|
|
|
712
|
|
|
770
|
|
|
(58
|
)
|
|
2,895
|
|
|
3,004
|
|
|
(109
|
)
|
|
Total Production
|
|
|
|
724
|
|
|
778
|
|
|
(54
|
)
|
|
2,923
|
|
|
3,034
|
|
|
(111
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Barrel)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
$
|
63.46
|
|
|
$
|
44.93
|
|
|
$
|
18.53
|
|
|
$
|
52.15
|
|
|
$
|
57.44
|
|
|
$
|
(5.29
|
)
|
|
West Coast
|
|
|
|
39.06
|
|
|
42.33
|
|
|
(3.27
|
)
|
|
35.26
|
|
|
51.37
|
|
|
(16.11
|
)
|
|
Weighted Average
|
|
|
|
39.46
|
|
|
42.36
|
|
|
(2.90
|
)
|
|
35.42
|
|
|
51.43
|
|
|
(16.01
|
)
|
|
Weighted Average after Hedging
|
|
|
|
60.01
|
|
|
66.40
|
|
|
(6.39
|
)
|
|
57.91
|
|
|
70.36
|
|
|
(12.45
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production (Mmcfe)
|
|
|
|
39,834
|
|
|
37,636
|
|
|
2,198
|
|
|
161,085
|
|
|
157,767
|
|
|
3,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating Performance Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General & Administrative Expense per Mcfe (1)
|
|
|
|
$
|
0.37
|
|
|
$
|
0.41
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.44
|
|
|
$
|
0.42
|
|
|
$
|
0.02
|
|
|
Lease Operating and Transportation Expense per Mcfe (1)(2)
|
|
|
|
$
|
0.97
|
|
|
$
|
1.07
|
|
|
$
|
(0.10
|
)
|
|
$
|
0.96
|
|
|
$
|
1.06
|
|
|
$
|
(0.10
|
)
|
|
Depreciation, Depletion & Amortization per Mcfe (1)
|
|
|
|
$
|
0.69
|
|
|
$
|
1.23
|
|
|
$
|
(0.54
|
)
|
|
$
|
0.87
|
|
|
$
|
1.52
|
|
|
$
|
(0.65
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Refer to page 16 for the General and Administrative Expense, Lease
Operating Expense and Depreciation, Depletion, and Amortization
Expense for the Exploration and Production segment.
|
|
(2)
|
|
Amounts include transportation expense of $0.52 and $0.52 per Mcfe
for the three months ended September 30, 2016 and September 30,
2015, respectively. Amounts include transportation expense of $0.52
and $0.52 per Mcfe for the twelve months ended September 30, 2016
and September 30, 2015, respectively.
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION
|
|
|
|
|
|
|
|
|
|
Hedging Summary for Fiscal 2017
|
|
|
|
Volume
|
|
|
Average Hedge Price
|
|
Oil Swaps
|
|
|
|
|
|
|
|
Brent
|
|
123,000
|
|
BBL
|
|
$
|
92.27 / BBL
|
|
NYMEX
|
|
1,185,000
|
|
BBL
|
|
$
|
61.34 / BBL
|
|
Total
|
|
1,308,000
|
|
BBL
|
|
$
|
64.25 / BBL
|
|
|
|
|
|
|
|
|
|
Gas Swaps
|
|
|
|
|
|
|
|
NYMEX
|
|
35,710,000
|
|
MMBTU
|
|
$
|
4.29 / MMBTU
|
|
Dominion Transmission Appalachian (DOM)
|
|
6,540,000
|
|
MMBTU
|
|
$
|
3.86 / MMBTU
|
|
Michigan Consolidated City Gate (Mich Con)
|
|
3,000,000
|
|
MMBTU
|
|
$
|
4.10 / MMBTU
|
|
Dawn Ontario (DAWN)
|
|
19,100,000
|
|
MMBTU
|
|
$
|
3.70 / MMBTU
|
|
Fixed Price Physical Sales
|
|
56,150,079
|
|
MMBTU
|
|
$
|
2.60 / MMBTU
|
|
Total
|
|
120,500,079
|
|
MMBTU
|
|
$
|
3.38 / MMBTU
|
|
|
|
|
|
|
|
|
|
Hedging Summary for Fiscal 2018
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
Average Hedge Price
|
|
Oil Swaps
|
|
|
|
|
|
|
|
Brent
|
|
24,000
|
|
BBL
|
|
$
|
91.00 / BBL
|
|
NYMEX
|
|
663,000
|
|
BBL
|
|
$
|
55.19 / BBL
|
|
Total
|
|
687,000
|
|
BBL
|
|
$
|
56.44 / BBL
|
|
|
|
|
|
|
|
|
|
Gas Swaps
|
|
|
|
|
|
|
|
NYMEX
|
|
42,570,000
|
|
MMBTU
|
|
$
|
3.34 / MMBTU
|
|
DAWN
|
|
8,400,000
|
|
MMBTU
|
|
$
|
3.08 / MMBTU
|
|
Fixed Price Physical Sales
|
|
29,366,235
|
|
MMBTU
|
|
$
|
2.46 / MMBTU
|
|
Total
|
|
80,336,235
|
|
MMBTU
|
|
$
|
2.99 / MMBTU
|
|
|
|
|
|
|
|
|
|
Hedging Summary for Fiscal 2019
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
Average Hedge Price
|
|
Oil Swaps
|
|
|
|
|
|
|
|
NYMEX
|
|
300,000
|
|
BBL
|
|
$
|
53.00 / BBL
|
|
Total
|
|
300,000
|
|
BBL
|
|
$
|
53.00 / BBL
|
|
|
|
|
|
|
|
|
|
Gas Swaps
|
|
|
|
|
|
|
|
NYMEX
|
|
27,060,000
|
|
MMBTU
|
|
$
|
3.17 / MMBTU
|
|
DAWN
|
|
7,200,000
|
|
MMBTU
|
|
$
|
3.00 / MMBTU
|
|
Fixed Price Physical Sales
|
|
11,947,289
|
|
MMBTU
|
|
$
|
3.09 / MMBTU
|
|
Total
|
|
46,207,289
|
|
MMBTU
|
|
$
|
3.13 / MMBTU
|
|
|
|
|
|
|
|
|
|
Hedging Summary for Fiscal 2020
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
Average Hedge Price
|
|
Gas Swaps
|
|
|
|
|
|
|
|
NYMEX
|
|
16,880,000
|
|
MMBTU
|
|
$
|
3.07 / MMBTU
|
|
DAWN
|
|
7,200,000
|
|
MMBTU
|
|
$
|
3.00 / MMBTU
|
|
Fixed Price Physical Sales
|
|
3,566,558
|
|
MMBTU
|
|
$
|
3.24 / MMBTU
|
|
Total
|
|
27,646,558
|
|
MMBTU
|
|
$
|
3.07 / MMBTU
|
|
|
|
|
|
|
|
|
|
Hedging Summary for Fiscal 2021
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
Average Hedge Price
|
|
Gas Swaps
|
|
|
|
|
|
|
|
NYMEX
|
|
4,840,000
|
|
MMBTU
|
|
$
|
3.01 / MMBTU
|
|
DAWN
|
|
600,000
|
|
MMBTU
|
|
$
|
3.00 / MMBTU
|
|
Total
|
|
5,440,000
|
|
MMBTU
|
|
$
|
3.01 / MMBTU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
Gross Wells in Process of Drilling
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
East
|
|
West
|
|
Company
|
|
Wells in Process - Beginning of Period
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
4.000
|
(1)
|
0.000
|
|
4.000
|
|
Developmental
|
|
|
|
96.000
|
(1)
|
0.000
|
|
96.000
|
|
Wells Commenced
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
3.000
|
|
0.000
|
|
3.000
|
|
Developmental
|
|
|
|
43.000
|
|
25.000
|
|
68.000
|
|
Wells Completed
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
1.000
|
|
0.000
|
|
1.000
|
|
Developmental
|
|
|
|
51.000
|
|
25.000
|
|
76.000
|
|
Wells Plugged & Abandoned
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
0.000
|
|
0.000
|
|
0.000
|
|
Developmental
|
|
|
|
1.000
|
|
0.000
|
|
1.000
|
|
Wells in Process - End of Period
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
6.000
|
|
0.000
|
|
6.000
|
|
Developmental
|
|
|
|
87.000
|
|
0.000
|
|
87.000
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Gross exploratory wells were increased by 4 and developmental wells
were decreased by 4.
|
|
|
|
|
|
|
|
|
|
|
|
Net Wells in Process of Drilling
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
East
|
|
West
|
|
Company
|
|
Wells in Process - Beginning of Period
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
4.000
|
(1)
|
0.000
|
|
4.000
|
|
Developmental
|
|
|
|
81.500
|
(1)
|
0.000
|
|
81.500
|
|
Wells Commenced
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
3.000
|
|
0.000
|
|
3.000
|
|
Developmental
|
|
|
|
43.000
|
|
25.000
|
|
68.000
|
|
Wells Completed
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
1.000
|
|
0.000
|
|
1.000
|
|
Developmental
|
|
|
|
31.800
|
|
25.000
|
|
56.800
|
|
Wells Plugged & Abandoned
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
0.000
|
|
0.000
|
|
0.000
|
|
Developmental
|
|
|
|
1.000
|
|
0.000
|
|
1.000
|
|
Well Interest Sold (2)
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
0.000
|
|
0.000
|
|
0.000
|
|
Developmental
|
|
|
|
28.800
|
|
0.000
|
|
28.800
|
|
Wells in Process - End of Period
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
6.000
|
|
0.000
|
|
6.000
|
|
Developmental
|
|
|
|
62.900
|
(2)
|
0.000
|
|
62.900
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Net exploratory wells were increased by 4 and developmental wells
were decreased by 4.
|
|
(2)
|
|
Seneca's East Division sold an 80% working interest in 36 of the
existing developmental wells in process to IOG during the twelve
months ended September 30, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION
|
|
|
|
|
|
|
|
|
|
|
Reserve Quantity Information
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas MMcf
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
|
Appalachian
|
West Coast
|
Total
|
|
|
|
|
|
|
Region
|
Region
|
Company
|
|
Proved Developed and Undeveloped Reserves:
|
|
|
|
|
|
|
|
|
September 30, 2015
|
|
|
|
|
2,092,782
|
|
49,346
|
|
2,142,128
|
|
|
Extensions and Discoveries
|
|
|
|
|
185,347
|
|
—
|
|
185,347
|
|
|
Revisions of Previous Estimates
|
|
|
|
|
(245,029
|
)
|
(3,132
|
)
|
(248,161
|
)
|
|
Production
|
|
|
|
|
(140,457
|
)
|
(3,090
|
)
|
(143,547
|
)
|
|
Sales of Minerals in Place
|
|
|
|
|
(261,192
|
)
|
—
|
|
(261,192
|
)
|
|
September 30, 2016
|
|
|
|
|
1,631,451
|
|
43,124
|
|
1,674,575
|
|
|
|
|
|
|
|
|
|
|
|
Proved Developed Reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015
|
|
|
|
|
1,267,498
|
|
49,346
|
|
1,316,844
|
|
|
September 30, 2016
|
|
|
|
|
1,089,492
|
|
43,124
|
|
1,132,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Mbbl
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
|
Appalachian
|
West Coast
|
Total
|
|
|
|
|
|
|
Region
|
Region
|
Company
|
|
Proved Developed and Undeveloped Reserves:
|
|
|
|
|
|
|
|
|
September 30, 2015
|
|
|
|
|
220
|
|
33,502
|
|
33,722
|
|
|
Extensions and Discoveries
|
|
|
|
|
—
|
|
530
|
|
530
|
|
|
Revisions of Previous Estimates
|
|
|
|
|
(46
|
)
|
(2,201
|
)
|
(2,247
|
)
|
|
Production
|
|
|
|
|
(28
|
)
|
(2,895
|
)
|
(2,923
|
)
|
|
Sales of Minerals in Place
|
|
|
|
|
(73
|
)
|
—
|
|
(73
|
)
|
|
September 30, 2016
|
|
|
|
|
73
|
|
28,936
|
|
29,009
|
|
|
|
|
|
|
|
|
|
|
|
Proved Developed Reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015
|
|
|
|
|
220
|
|
33,150
|
|
33,370
|
|
|
September 30, 2016
|
|
|
|
|
73
|
|
28,698
|
|
28,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
|
|
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
Firm Transportation - Affiliated
|
|
|
|
13,468
|
|
|
15,128
|
|
|
(1,660
|
)
|
|
100,637
|
|
|
110,431
|
|
|
(9,794
|
)
|
|
Firm Transportation - Non-Affiliated
|
|
|
|
169,247
|
|
|
149,626
|
|
|
19,621
|
|
|
640,238
|
|
|
626,775
|
|
|
13,463
|
|
|
Interruptible Transportation
|
|
|
|
5,079
|
|
|
4,040
|
|
|
1,039
|
|
|
23,548
|
|
|
12,874
|
|
|
10,674
|
|
|
|
|
|
|
187,794
|
|
|
168,794
|
|
|
19,000
|
|
|
764,423
|
|
|
750,080
|
|
|
14,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering Volume - (MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
|
|
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
Gathered Volume - Affiliated
|
|
|
|
42,600
|
|
|
32,934
|
|
|
9,666
|
|
|
161,955
|
|
|
139,629
|
|
|
22,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Throughput - (MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
|
|
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
Retail Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Sales
|
|
|
|
3,143
|
|
|
3,285
|
|
|
(142
|
)
|
|
49,971
|
|
|
59,600
|
|
|
(9,629
|
)
|
|
Commercial Sales
|
|
|
|
477
|
|
|
471
|
|
|
6
|
|
|
7,247
|
|
|
8,710
|
|
|
(1,463
|
)
|
|
Industrial Sales
|
|
|
|
11
|
|
|
21
|
|
|
(10
|
)
|
|
244
|
|
|
337
|
|
|
(93
|
)
|
|
|
|
|
|
3,631
|
|
|
3,777
|
|
|
(146
|
)
|
|
57,462
|
|
|
68,647
|
|
|
(11,185
|
)
|
|
Off-System Sales
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,243
|
|
|
3,787
|
|
|
(2,544
|
)
|
|
Transportation
|
|
|
|
11,078
|
|
|
10,240
|
|
|
838
|
|
|
70,847
|
|
|
78,749
|
|
|
(7,902
|
)
|
|
|
|
|
|
14,709
|
|
|
14,017
|
|
|
692
|
|
|
129,552
|
|
|
151,183
|
|
|
(21,631
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Marketing Volume
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
|
|
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
Natural Gas (MMcf)
|
|
|
|
6,048
|
|
|
6,537
|
|
|
(489
|
)
|
|
39,849
|
|
|
46,752
|
|
|
(6,903
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Operating Results and Adjusted EBITDA,
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 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 Operating Results as reported GAAP earnings before
items impacting comparability. The table at page 2 of this report
reconciles National Fuel's reported GAAP earnings to Operating Results
for the three and twelve months ended September 30, 2016 and 2015.
Management defines Adjusted EBITDA as reported GAAP earnings before the
following items: interest expense, depreciation, depletion and
amortization, interest and other income, impairments, items impacting
comparability and income taxes.
The following tables reconcile National Fuel's reported GAAP earnings to
Adjusted EBITDA for the three and twelve months ended September 30, 2016
and 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
|
|
|
|
$
|
37,553
|
|
|
$
|
(187,703
|
)
|
|
$
|
(290,958
|
)
|
|
$
|
(379,427
|
)
|
|
Depreciation, Depletion and Amortization
|
|
|
|
56,117
|
|
|
70,860
|
|
|
249,417
|
|
|
336,158
|
|
|
Interest and Other Income
|
|
|
|
(4,242
|
)
|
|
(5,692
|
)
|
|
(14,055
|
)
|
|
(11,961
|
)
|
|
Interest Expense
|
|
|
|
28,842
|
|
|
29,189
|
|
|
121,044
|
|
|
99,471
|
|
|
Income Taxes
|
|
|
|
19,091
|
|
|
(162,525
|
)
|
|
(232,549
|
)
|
|
(319,136
|
)
|
|
Impairment of Oil and Gas Producing
Properties
|
|
|
|
32,756
|
|
|
417,197
|
|
|
948,307
|
|
|
1,126,257
|
|
|
Reversal of Stock-Based Compensation
|
|
|
|
—
|
|
|
(7,776
|
)
|
|
—
|
|
|
(7,776
|
)
|
|
Joint Development Agreement Professional
Fees
|
|
|
|
—
|
|
|
—
|
|
|
7,855
|
|
|
—
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
170,117
|
|
|
$
|
153,550
|
|
|
$
|
789,061
|
|
|
$
|
843,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by Segment
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline and Storage Adjusted EBITDA
|
|
|
|
$
|
46,517
|
|
|
$
|
40,297
|
|
|
$
|
199,446
|
|
|
$
|
188,042
|
|
|
Gathering Adjusted EBITDA
|
|
|
|
20,963
|
|
|
16,426
|
|
|
78,685
|
|
|
68,881
|
|
|
Total Midstream Businesses Adjusted EBITDA
|
|
|
|
67,480
|
|
|
56,723
|
|
|
278,131
|
|
|
256,923
|
|
|
Exploration and Production Adjusted EBITDA
|
|
|
|
95,157
|
|
|
97,582
|
|
|
363,830
|
|
|
422,289
|
|
|
Utility Adjusted EBITDA
|
|
|
|
10,400
|
|
|
3,311
|
|
|
148,683
|
|
|
164,037
|
|
|
Energy Marketing Adjusted EBITDA
|
|
|
|
87
|
|
|
(176
|
)
|
|
6,655
|
|
|
12,237
|
|
|
Corporate and All Other Adjusted EBITDA
|
|
|
|
(3,007
|
)
|
|
(3,890
|
)
|
|
(8,238
|
)
|
|
(11,900
|
)
|
|
Total Adjusted EBITDA
|
|
|
|
$
|
170,117
|
|
|
$
|
153,550
|
|
|
$
|
789,061
|
|
|
$
|
843,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
(in thousands)
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Exploration and Production Segment
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
|
|
|
|
$
|
16,744
|
|
|
$
|
(207,019
|
)
|
|
$
|
(452,842
|
)
|
|
$
|
(556,974
|
)
|
|
Depreciation, Depletion and Amortization
|
|
|
|
27,377
|
|
|
46,277
|
|
|
139,963
|
|
|
239,818
|
|
|
Interest and Other Income
|
|
|
|
(78
|
)
|
|
(661
|
)
|
|
(858
|
)
|
|
(2,554
|
)
|
|
Interest Expense
|
|
|
|
13,552
|
|
|
14,176
|
|
|
55,434
|
|
|
46,726
|
|
|
Income Taxes
|
|
|
|
4,806
|
|
|
(169,621
|
)
|
|
(334,029
|
)
|
|
(428,217
|
)
|
|
Impairment of Oil and Gas Producing Properties
|
|
|
|
32,756
|
|
|
417,197
|
|
|
948,307
|
|
|
1,126,257
|
|
|
Reversal of Stock-Based Compensation
|
|
|
|
—
|
|
|
(2,767
|
)
|
|
—
|
|
|
(2,767
|
)
|
|
Joint Development Agreement Professional Fees
|
|
|
|
—
|
|
|
—
|
|
|
7,855
|
|
|
—
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
95,157
|
|
|
$
|
97,582
|
|
|
$
|
363,830
|
|
|
$
|
422,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline and Storage Segment
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
|
|
|
|
$
|
16,816
|
|
|
$
|
18,485
|
|
|
$
|
76,610
|
|
|
$
|
80,354
|
|
|
Depreciation, Depletion and Amortization
|
|
|
|
11,128
|
|
|
9,726
|
|
|
43,273
|
|
|
38,178
|
|
|
Interest and Other Income
|
|
|
|
(825
|
)
|
|
(2,123
|
)
|
|
(4,005
|
)
|
|
(4,361
|
)
|
|
Interest Expense
|
|
|
|
8,309
|
|
|
7,745
|
|
|
33,327
|
|
|
27,658
|
|
|
Income Taxes
|
|
|
|
11,089
|
|
|
8,364
|
|
|
50,241
|
|
|
48,113
|
|
|
Reversal of Stock-Based Compensation
|
|
|
|
—
|
|
|
(1,900
|
)
|
|
—
|
|
|
(1,900
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
46,517
|
|
|
$
|
40,297
|
|
|
$
|
199,446
|
|
|
$
|
188,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering Segment
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
|
|
|
|
$
|
8,537
|
|
|
$
|
7,594
|
|
|
$
|
30,499
|
|
|
$
|
31,849
|
|
|
Depreciation, Depletion and Amortization
|
|
|
|
3,876
|
|
|
2,804
|
|
|
15,282
|
|
|
10,829
|
|
|
Interest and Other Income
|
|
|
|
(110
|
)
|
|
(47
|
)
|
|
(302
|
)
|
|
(145
|
)
|
|
Interest Expense
|
|
|
|
2,091
|
|
|
1,413
|
|
|
8,872
|
|
|
1,627
|
|
|
Income Taxes
|
|
|
|
6,569
|
|
|
4,662
|
|
|
24,334
|
|
|
24,721
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
20,963
|
|
|
$
|
16,426
|
|
|
$
|
78,685
|
|
|
$
|
68,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Segment
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
|
|
|
|
$
|
(1,784
|
)
|
|
$
|
(3,288
|
)
|
|
$
|
50,960
|
|
|
$
|
63,271
|
|
|
Depreciation, Depletion and Amortization
|
|
|
|
13,107
|
|
|
11,635
|
|
|
48,618
|
|
|
45,616
|
|
|
Interest and Other Income
|
|
|
|
(2,008
|
)
|
|
(2,840
|
)
|
|
(4,079
|
)
|
|
(4,485
|
)
|
|
Interest Expense
|
|
|
|
5,898
|
|
|
7,030
|
|
|
27,582
|
|
|
28,176
|
|
|
Income Taxes
|
|
|
|
(4,813
|
)
|
|
(7,542
|
)
|
|
25,602
|
|
|
33,143
|
|
|
Reversal of Stock-Based Compensation
|
|
|
|
—
|
|
|
(1,684
|
)
|
|
—
|
|
|
(1,684
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
10,400
|
|
|
$
|
3,311
|
|
|
$
|
148,683
|
|
|
$
|
164,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Marketing Segment
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
|
|
|
|
$
|
231
|
|
|
$
|
34
|
|
|
$
|
4,348
|
|
|
$
|
7,766
|
|
|
Depreciation, Depletion and Amortization
|
|
|
|
70
|
|
|
57
|
|
|
278
|
|
|
209
|
|
|
Interest and Other Income
|
|
|
|
(151
|
)
|
|
(75
|
)
|
|
(480
|
)
|
|
(312
|
)
|
|
Interest Expense
|
|
|
|
13
|
|
|
7
|
|
|
49
|
|
|
27
|
|
|
Income Taxes
|
|
|
|
(76
|
)
|
|
(199
|
)
|
|
2,460
|
|
|
4,547
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
87
|
|
|
$
|
(176
|
)
|
|
$
|
6,655
|
|
|
$
|
12,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and All Other
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
|
|
|
|
$
|
(2,991
|
)
|
|
$
|
(3,509
|
)
|
|
$
|
(533
|
)
|
|
$
|
(5,693
|
)
|
|
Depreciation, Depletion and Amortization
|
|
|
|
559
|
|
|
361
|
|
|
2,003
|
|
|
1,508
|
|
|
Interest and Other Income
|
|
|
|
(1,070
|
)
|
|
54
|
|
|
(4,331
|
)
|
|
(104
|
)
|
|
Interest Expense
|
|
|
|
(1,021
|
)
|
|
(1,182
|
)
|
|
(4,220
|
)
|
|
(4,743
|
)
|
|
Income Taxes
|
|
|
|
1,516
|
|
|
1,811
|
|
|
(1,157
|
)
|
|
(1,443
|
)
|
|
Reversal of Stock-Based Compensation
|
|
|
|
—
|
|
|
(1,425
|
)
|
|
—
|
|
|
(1,425
|
)
|
|
Adjusted EBITDA
|
|
|
|
$
|
(3,007
|
)
|
|
$
|
(3,890
|
)
|
|
$
|
(8,238
|
)
|
|
$
|
(11,900
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended September 30 (unaudited)
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
|
$
|
292,472,000
|
|
|
$
|
301,062,000
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Available for Common Stock
|
|
|
|
$
|
37,553,000
|
|
|
$
|
(187,703,000
|
)
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per Common Share:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.44
|
|
|
$
|
(2.22
|
)
|
|
Diluted
|
|
|
|
$
|
0.44
|
|
|
$
|
(2.22
|
)
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares:
|
|
|
|
|
|
|
|
Used in Basic Calculation
|
|
|
|
85,016,408
|
|
|
84,570,432
|
|
|
Used in Diluted Calculation
|
|
|
|
85,629,858
|
|
|
84,570,432
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
|
$
|
1,452,416,000
|
|
|
$
|
1,760,913,000
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Available for Common Stock
|
|
|
|
$
|
(290,958,000
|
)
|
|
$
|
(379,427,000
|
)
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per Common Share:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
(3.43
|
)
|
|
$
|
(4.50
|
)
|
|
Diluted
|
|
|
|
$
|
(3.43
|
)
|
|
$
|
(4.50
|
)
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares:
|
|
|
|
|
|
|
|
Used in Basic Calculation
|
|
|
|
84,847,993
|
|
|
84,387,755
|
|
|
Used in Diluted Calculation
|
|
|
|
84,847,993
|
|
|
84,387,755
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161103006822/en/ Copyright Business Wire 2016
Source: Business Wire
(November 3, 2016 - 5:05 PM EDT)
News by QuoteMedia
www.quotemedia.com
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