August 1, 2019 - 4:45 PM EDT
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National Fuel Reports Third Quarter Earnings and Provides Preliminary Guidance for Fiscal 2020

WILLIAMSVILLE, N.Y., Aug. 01, 2019 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the third quarter of its 2019 fiscal year and for the nine months ended June 30, 2019.

FISCAL 2019 THIRD QUARTER SUMMARY

  • GAAP earnings of $63.8 million, or $0.73 per share, compared to $63.0 million, or $0.73 per share, in the prior year
  • Adjusted operating results of $61.8 million, or $0.71 per share, compared to $63.3 million, or $0.73 per share, in the prior year (see non-GAAP reconciliation on page 2)
  • Adjusted EBITDA of $182.9 million compared to $175.2 million in the prior year (non-GAAP reconciliation on page 24)
  • E&P segment net production of 54.7 Bcfe, an increase of 23% from the prior year and 12% from the second quarter
  • Average natural gas prices, after the impact of hedging, of $2.36 per Mcf, down $0.07 per Mcf from the prior year
  • Average oil prices, after the impact of hedging, of $62.92 per Bbl, up $4.18 per Bbl from the prior year
  • Gathering segment operating revenues increased $5.0 million on an 18% increase in gathered volumes
  • Utility segment net income increased $3.4 million, or 87%, on higher customer margins

FISCAL 2019 AND FISCAL 2020 GUIDANCE UPDATE SUMMARY

The Company is updating its fiscal 2019 guidance and providing preliminary fiscal 2020 guidance relating to earnings, capital expenditures, and production.  See pages 5 and 6 for additional discussion.

 Updated
FY 2019
Guidance
 Preliminary
FY 2020
Guidance
 Key Forecast Drivers
      
Earnings per Share$3.40 to $3.50 $3.25 to $3.55 Increase in production offset by lower natural gas prices
      
Capital Expenditures ($MM)$745 to $800 $725 to $820  
E&P and Gathering$525 to $550 $455 to $505 Seneca to drop rig in Q2 fiscal 2020
Pipeline and Storage$130 to $150 $180 to $215 Empire North expansion project
Utility$90 to $100 $90 to $100 System modernization backed by rate tracker in NY
      
E&P Production (Bcfe)205 to 215 235 to 245 Utica and Marcellus development
      

MANAGEMENT COMMENTS

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “Our fiscal third quarter results once again demonstrate why the integrated model is a significant advantage for National Fuel, particularly during periods of commodity price volatility. Our Utility and Gathering businesses led the way with significant year over year earnings growth, along with the strong operational performance of our Exploration and Production business. As we look to fiscal 2020, we do so with a close eye on longer-term natural gas prices and a focus on prudently deploying capital and maintaining our strong balance sheet. We plan to reduce our drilling activity accordingly but will continue to invest in pipeline expansion projects and utility system modernization opportunities that add shareholder value and position National Fuel for long-term growth and success

 
RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS 
  Three Months Ended Nine Months Ended
  June 30, June 30,
(in thousands except per share amounts) 2019 2018 2019 2018
Reported GAAP Earnings $63,753  $63,025  $257,009  $353,527 
Items impacting comparability        
Remeasurement of deferred income taxes under 2017 Tax Reform     (5,000) (107,000)
Mark-to-market adjustments due to hedge ineffectiveness (E&P) (1,020) 339  (783) 436 
Tax impact of mark-to-market adjustments due to hedge ineffectiveness 214  (83) 164  (107)
Unrealized (gain) loss on other investments (Corporate / All Other) (1,420)   1,096   
Tax impact of unrealized (gain) loss on other investments 298    (230)  
Adjusted Operating Results $61,825  $63,281  $252,256  $246,856 
         
Reported GAAP Earnings per share $0.73  $0.73  $2.96  $4.09 
Items impacting comparability        
Remeasurement of deferred income taxes under 2017 Tax Reform     (0.06) (1.24)
Mark-to-market adjustments due to hedge ineffectiveness (E&P) (0.01)   (0.01) 0.01 
Tax impact of mark-to-market adjustments due to hedge ineffectiveness        
Unrealized (gain) loss on other investments (Corporate / All Other) (0.02)   0.01   
Tax impact of unrealized (gain) loss on other investments        
Rounding 0.01    0.01   
Adjusted Operating Results per share $0.71  $0.73  $2.91  $2.86 
                 

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of earnings of each operating segment for the quarter ended June 30, 2019, is summarized in a tabular form on pages 9 and 10 of this report (earnings drivers for the nine months ended June 30, 2019, are summarized on pages 11 and 12).  It may be helpful to refer to those tables while reviewing this discussion.  Note that management defines Adjusted Operating Results as reported GAAP earnings adjusted for items impacting comparability, and Adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.

Upstream Business

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC ("Seneca").  Seneca explores for, develops and produces natural gas and oil reserves, primarily in Pennsylvania and California.

 Three Months Ended
 June 30,
(in thousands)2019 2018 Variance
GAAP Earnings$26,512  $27,817  $(1,305)
Mark-to-market adjustments due to hedge ineffectiveness$(1,020) $339  $(1,359)
Tax impact of mark-to-market adjustments due to hedge ineffectiveness$214  $(83) $297 
Adjusted Operating Results$25,706  $28,073  $(2,367)
      
Adjusted EBITDA$88,175  $77,567  $10,608 

The Exploration and Production segment’s third quarter GAAP earnings decreased $1.3 million versus the prior year, which includes the net impact of non-cash mark-to-market adjustments recorded during the current and prior year quarters relating to hedge ineffectiveness.  Excluding these adjustments (see table above), the $2.4 million reduction in the Exploration and Production segment’s third quarter earnings was due primarily to a higher effective income tax rate, which was largely the result of tax benefits realized in the prior year that did not recur in the current year.  Before considering these tax items, Seneca’s third quarter earnings were higher due primarily to the positive impacts of higher natural gas production and better realized crude oil prices, which were partially offset by the impacts of lower crude oil production, lower realized natural gas prices, higher lease operating and transportation (“LOE”) expense, and higher depreciation, depletion and amortization (“DD&A”) expense.

Seneca’s third quarter net production was 54.7 Bcfe, an increase of 10.1 Bcfe, or 23 percent, from the prior year.  Natural gas production increased 10.3 billion cubic feet (“Bcf”), or 25 percent, due primarily to production from new Marcellus and Utica wells completed and connected to sales in Appalachia.  Net production increased 4.8 Bcf in Seneca’s Eastern Development Area due largely to increased Utica development in the EDA-Tioga area and Marcellus development in the EDA-Lycoming area.  Net gas production increased 5.5 Bcf in the WDA-Clermont area, where Seneca added a second rig in May 2018 and continues to experience stronger production and shallower declines from its Utica development program. Seneca’s oil production for the third quarter decreased 25 thousand barrels ("Mbbl"), or 4 percent, from the prior year.

Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.36 per thousand cubic feet ("Mcf"), a decrease of $0.07 per Mcf from the prior year. Seneca's average realized oil price, after the impact of hedging, was $62.92 per barrel ("Bbl"), an increase of $4.18 per Bbl over the prior year.  The improvement in oil price realizations was due primarily to stronger price differentials at local sales points in California relative to West Texas Intermediate (WTI) prices.

LOE expense increased $10.1 million due mostly to higher gathering expenses in Appalachia resulting from the increase in natural gas production coupled with an increase in well repair costs in California.  DD&A expense increased $8.8 million due to the increase in production and a $0.03 per Mcfe increase in the unit depletion rate.

Midstream Businesses

Pipeline and Storage Segment

The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”).  The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.

 Three Months Ended
 June 30,
(in thousands)2019 2018 Variance
GAAP Earnings$15,792  $20,723  $(4,931)
      
Adjusted EBITDA$37,328  $46,072  $(8,744)

The Pipeline and Storage segment’s third quarter GAAP earnings decreased $5.0 million versus the prior year.  The decrease was driven primarily by lower operating revenues and higher operation and maintenance (“O&M”) expenses, which were partially offset by the impact of a lower effective tax rate.  The $5.0 million decrease in operating revenues was due largely to the expiration of a significant firm transportation contract on the Empire system in December 2018.  The impact of the contract expiration was partially offset by an increase in Empire’s transportation rates following the settlement of Empire’s rate case that was effective starting in January 2019. O&M expense increased $3.5 million due primarily to an increase in pipeline integrity maintenance activity during the quarter and higher personnel costs. The reduction in the Pipeline and Storage segment’s effective tax rate was due mostly to the impact of the 2017 Tax Reform Act, which lowered the Company’s statutory federal income tax rate from a blended 24.5 percent in fiscal 2018 to 21 percent in fiscal 2019, and decreased income tax expense on current period income by $0.6 million.

Gathering Segment

The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region which currently delivers Seneca’s gross Appalachian production to the interstate pipeline system.

 Three Months Ended
 June 30,
(in thousands)2019 2018 Variance
GAAP Earnings$14,638  $11,566  $3,072 
      
Adjusted EBITDA$27,852  $23,090  $4,762 

The Gathering segment’s third quarter GAAP earnings increased $3.1 million over the prior year.  The increase was driven primarily by higher operating revenues, which were partially offset by an increase in DD&A expense.  Operating revenues increased $5.0 million, or 18 percent, due primarily to a 9.4 Bcf net increase in gathered volume from Seneca’s Appalachian natural gas production. Throughput on the Gathering segment’s Wellsboro, Clermont, and Trout Run systems increased 4.9 Bcf, 3.6 Bcf, and 2.6 Bcf, respectively. The $1.0 million increase in DD&A expense was largely due to a $0.7 million impairment recorded during the quarter to write-down the Company’s minority ownership in a non-operated gas processing facility. The benefit of a lower statutory federal income tax rate due to the 2017 Tax Reform Act was offset by the net impact of other items that increased the Gathering segment’s effective tax rate, including the non-recurrence of a tax benefit recorded in the prior year relating to the blended federal rate’s impact on deferred taxes.

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
 June 30,
(in thousands)2019 2018 Variance
GAAP Earnings$7,362  $3,930  $3,432 
      
Adjusted EBITDA$33,163  $30,300  $2,863 

The Utility segment’s third quarter GAAP earnings increased $3.4 million over the prior year.  The increase was due primarily to higher customer margin (operating revenues less purchased gas sold) and lower interest expense.  A number of items contributed to the increase in customer margin, including changes in customer usage and a modest increase in residential customers, an increase in revenues relating to a system modernization tracking mechanism, and the net impact of adjustments related to regulatory rate mechanisms.  These positive items were partially offset by $1.8 million increase in the refund provision recorded by the Utility segment during the quarter to return the net effect of the 2017 Tax Reform Act to its customers.  Interest expense decreased $0.8 million due primarily to the Company’s early refinancing of an 8.75 percent coupon 10-year note that was set to mature in May 2019.

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.

 Three Months Ended
 June 30,
(in thousands)2019 2018 Variance
GAAP Earnings$(1,441) $(190) $(1,251)
      
Adjusted EBITDA$(2,075) $(295) $(1,780)

The Energy Marketing segment’s third quarter GAAP earnings decreased $1.3 million due primarily to a decline in customer margins (operating revenues less purchased gas sold).

Corporate and All Other

Corporate and All Other operations had combined earnings of $0.9 million in the current year third quarter, which was $1.7 million higher than the loss of $0.8 million in the prior-year third quarter.  The increase in earnings was primarily attributable to the impact of $1.4 million in unrealized gains on investments in equity securities recorded during the quarter ($1.1 million after-tax), lower interest expense and a lower effective tax rate.  Unrealized gains and losses on investments in equity securities are now recognized in earnings following the adoption of new accounting guidance in the current year.  These unrealized gains and losses had been previously recorded as other comprehensive income. These increases were partially offset by lower operating revenues from the sale of standing timber by the Company’s land and timber operations.

DISCUSSION OF GUIDANCE UPDATE

National Fuel is revising its full-year earnings guidance for fiscal 2019.  The Company projects that earnings on a non-GAAP basis will be within the range of $3.40 to $3.50 per share, or $3.45 per share at the midpoint of the range. The Company’s revised earnings guidance range reflects the impact of actual results for the nine months ended June 30, 2019, and, among other forecast updates, lower commodity price assumptions to reflect current market prices for natural gas and crude oil for the remaining three months of the fiscal year.  The Company is reaffirming its Exploration and Production segment’s fiscal 2019 net production guidance, which is expected to be in the range of 205 to 215 Bcfe.  The Company now expects fiscal 2019 consolidated capital expenditures to be within the range of $745 million to $800 million, or $772.5 million at the midpoint.

The Company is also initiating preliminary guidance for fiscal 2020.  National Fuel is projecting that its fiscal 2020 earnings will be within a range of $3.25 to $3.55 per share, or $3.40 per share at the midpoint of the range and generally in line with fiscal 2019. The Company’s fiscal 2020 earnings projections are largely being driven by an increase in Seneca’s forecasted natural gas production and the associated impact on Gathering segment revenues, offset by lower expected natural gas price realizations and modest increases in operating expenses.  Seneca’s fiscal 2020 net production is expected to be in the range of 235 to 245 Bcfe, an increase of 30 Bcf versus fiscal 2019.  The Company is projecting its natural gas price realizations after hedging to decline approximately $0.20 per Mcf, driven in large part by lower expected NYMEX and regional spot prices for natural gas.

In response to the deterioration in near-term commodity prices, the Company’s Exploration and Production segment is planning to reduce its development activity in Appalachia and drop one of the three horizontal drilling rigs it is currently operating during the second quarter of fiscal 2020.  As a result, the Exploration and Production segment’s capital expenditures are expected to be in the range of $415 million to $455 million, a $50 million reduction versus fiscal 2019 at the midpoint.  At the reduced activity level, Seneca expects to generate production to fully utilize its firm sales and transportation commitments.  Gathering segment capital expenditures are expected to be $40 million to $50 million in fiscal 2020, a decline of $7.5 million at the midpoint.

Pipeline and Storage segment capital expenditures are expected to be in the range of $180 million to $215 million.  The $57.5 million increase at the midpoint of the range is due primarily to higher spending on expansion projects, including the fully-subscribed Empire North project that is expected to add $25 million in annual revenues after the project goes into service, which is anticipated in the second half of fiscal 2020.  Utility segment capital expenditures are expected to be flat versus fiscal 2019 at $90 million to $100 million as the Company continues to invest in the modernization of its gas distribution systems.

Mr. Bauer added: “Our integrated model and diversified asset base in Appalachia provide the flexibility to respond to market conditions and to efficiently allocate capital to opportunities across the natural gas value chain. Just as we have done in the past, we will again lean on that flexibility in fiscal 2020 by reducing the level of investment at the drill bit while continuing to invest in the expansion and modernization of our rate-regulated pipeline and utility systems, which we expect will generate future earnings growth and stable, value-added returns for our shareholders.”

In total, the Company’s consolidated capital expenditures in fiscal 2020 are expected to be in a range of $725 million to $820 million, flat versus fiscal 2019 at the midpoint of the respective ranges.

The Company’s fiscal 2019 earnings guidance range does not include the impact of certain items that impacted the comparability of earnings during the nine months ended June 30, 2019, including: (1) the remeasurement of deferred income taxes resulting from the 2017 Tax Reform Act, which reduced the Company’s income tax expense and benefited consolidated earnings in the nine months ended June 30, 2019 by $0.06 per share; (2) the full-year impact of the Exploration and Production segment’s mark-to-market adjustments for hedge ineffectiveness; and (3) the unrealized loss on other investments due to the change in an accounting rule discussed above, which lowered earnings by $0.01 per share.  While the Company expects to record additional adjustments to one or more of these items during the remaining three months ending September 30, 2019, the amounts of these and other potential adjustments are not reasonably determinable at this time.   As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

Additional details on the Company's forecast assumptions and business segment guidance for fiscal 2019 are outlined in the table on page 8.

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, August 2, 2019, 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) 833-287-0795, using conference ID number “2194110”.  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) 800-585-8367 using conference ID number “2194110”.  Both the webcast and a telephonic replay will be available until the close of business on Friday, August 9, 2019.

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.

   
   
Analyst Contact:Kenneth E. Webster716-857-7067
Media Contact:Karen L. Merkel716-857-7654

Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; 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; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in the price of natural gas or oil; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; 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 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; 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; the impact of  information technology, cybersecurity or data security breaches; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
 
GUIDANCE SUMMARY

As discussed on pages 5 and 6, the Company is revising its earnings guidance for fiscal 2019 and initiating preliminary guidance for fiscal 2020.  Additional details on the Company's forecast assumptions and business segment guidance for fiscal 2019 and fiscal 2020 are outlined in the table below.

The Company's fiscal 2019 earnings guidance range does not include the impact of certain items that impacted the comparability of earnings during the nine months ended June 30, 2019, including: (1) the remeasurement of deferred income taxes resulting from the 2017 Tax Reform Act, which reduced the Company’s income tax expense and benefited consolidated earnings in the nine months ended June 30, 2019 by $0.06 per share; (2) the full-year impact of the Exploration and Production segment’s mark-to-market adjustments for hedging ineffectiveness; and (3) the unrealized loss on other investments due to the change in an accounting rule discussed on page 6, which lowered earnings by $0.01 per share.  While the Company expects to record additional adjustments to one or more of these items during the remaining three months ending September 30, 2019, the amounts of these and other potential adjustments are not reasonably determinable at this time.  As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

 Updated FY 2019 Guidance Preliminary FY 2020 Guidance
Consolidated Earnings per Share$3.40 to $3.50 $3.25 to $3.55
Consolidated Effective Tax Rate~ 24% ~ 25%
    
Capital Expenditures (Millions)   
Exploration and Production$475 - $495 $415 - $455
Pipeline and Storage$130 - $150 $180 - $215
Gathering$50 - $55 $40 - $50
Utility$90 - $100 $90 - $100
Consolidated Capital Expenditures$745 - $800 $725 - $820
    
Exploration & Production Segment Guidance   
    
Commodity Price Assumptions (1)   
NYMEX natural gas price$2.40 /MMBtu $2.55 /MMBtu
Appalachian basin spot price (winter | summer)$2.10 /MMBtu $2.20 /MMBtu | $2.00 /MMBtu
NYMEX (WTI) crude oil price$57.50 /Bbl $55.00 /Bbl
California oil price premium (% of WTI)108% 108%
    
Production (Bcfe)   
East Division - Appalachia189 to 199 219 to 229
West Division - California~ 16 ~ 16
Total Production205 to 215 235 to 245
    
E&P Operating Costs ($/Mcfe)   
LOE$0.85 - $0.90 $0.85 - $0.90
G&A~$0.30 $0.25 - $0.30
DD&A$0.70 - $0.75 $0.70 - $0.75
    
Other Business Segment Guidance (Millions)   
Gathering Segment Revenues$125 - $130 $135 - $145
Pipeline and Storage Segment Revenues~$285 $290 - $295
 
(1)  Revised commodity price assumptions reflect the Company's forecast for the remainder of fiscal 2019.
 
 


NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED JUNE 30, 2019
(Unaudited)
              
 Upstream Midstream
Businesses
 Downstream
Businesses
    
              
 Exploration & Pipeline &     Energy Corporate /  
(Thousands of Dollars)Production Storage Gathering Utility Marketing All Other Consolidated*
              
Third quarter 2018 GAAP earnings$27,817  $20,723  $11,566  $3,930  $(190) $(821) $63,025 
              
Items impacting comparability:             
Mark-to-market adjustments due to hedge ineffectiveness339            339 
Tax impact of mark-to-market adjustments due to hedge ineffectiveness(83)           (83)
Third quarter 2018 adjusted operating results28,073  20,723  11,566  3,930  (190) (821) 63,281 
              
Drivers of adjusted operating results**             
              
Upstream Revenues             
Higher (lower) natural gas production18,891            18,891 
Higher (lower) crude oil production(1,119)           (1,119)
Higher (lower) realized natural gas prices, after hedging(2,950)           (2,950)
Higher (lower) realized crude oil prices, after hedging1,817            1,817 
              
Midstream and All Other Revenues             
Higher (lower) operating revenues  (3,693) 3,773      (485) (405)
              
Downstream Margins***             
Impact of usage and weather      1,425      1,425 
System modernization tracker revenues      1,033      1,033 
Lower (higher) refund provision on tax rate change      (1,386)     (1,386)
Regulatory true-up adjustments      1,069      1,069 
Higher (lower) marketing margins        (1,251)   (1,251)
              
Operating Expenses             
Lower (higher) lease operating and transportation expenses(7,618)           (7,618)
Lower (higher) operating expenses  (2,606)         (2,606)
Lower (higher) depreciation / depletion(6,613)   (786)       (7,399)
              
Other Income (Expense)             
(Higher) lower interest expense(455) 335  162  588    636  1,266 
              
Income Taxes             
Impact of tax rate reduction due to 2017 Tax Reform953  602  819  271  (69) (20) 2,556 
Lower (higher) income tax expense / effective tax rate(4,281) 169  (789) 269  75  723  (3,834)
              
All other / rounding(992) 262  (107) 163  (6) (265) (945)
Third quarter 2019 adjusted operating results25,706  15,792  14,638  7,362  (1,441) (232) 61,825 
              
Items impacting comparability:             
Mark-to-market adjustments due to hedge ineffectiveness1,020            1,020 
Tax impact of mark-to-market adjustments due to hedge ineffectiveness(214)           (214)
Unrealized gain (loss) on other investments          1,420  1,420 
Tax impact of unrealized gain (loss) on other investments          (298) (298)
Third quarter 2019 GAAP earnings$26,512  $15,792  $14,638  $7,362  $(1,441) $890  $63,753 
              
* Amounts do not reflect intercompany eliminations             
** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes".
*** Downstream margin defined as operating revenues less purchased gas expense.
 
 


NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED JUNE 30, 2019
(Unaudited)
              
 Upstream Midstream
Businesses
 Downstream
Businesses
    
              
 Exploration & Pipeline &     Energy Corporate /  
 Production Storage Gathering Utility Marketing All Other Consolidated*
              
Third quarter 2018 GAAP earnings per share$0.32  $0.24  $0.13  $0.05  $  $(0.01) $0.73 
Items impacting comparability:             
Mark-to-market adjustments due to hedge ineffectiveness             
Tax impact of mark-to-market adjustments due to hedge ineffectiveness             
Third quarter 2018 adjusted operating results per share0.32  0.24  0.13  0.05    (0.01) 0.73 
              
Drivers of adjusted operating results**             
              
Upstream Revenues             
Higher (lower) natural gas production0.22            0.22 
Higher (lower) crude oil production(0.01)           (0.01)
Higher (lower) realized natural gas prices, after hedging(0.03)           (0.03)
Higher (lower) realized crude oil prices, after hedging0.02            0.02 
              
Midstream and All Other Revenues             
Higher (lower) operating revenues  (0.04) 0.04      (0.01) (0.01)
              
Downstream Margins***             
Impact of usage and weather      0.02      0.02 
System modernization tracker revenues      0.01      0.01 
Lower (higher) refund provision on tax rate change      (0.02)     (0.02)
Regulatory true-up adjustments      0.01      0.01 
Higher (lower) marketing margins        (0.01)   (0.01)
              
Operating Expenses             
Lower (higher) lease operating and transportation expenses(0.09)           (0.09)
Lower (higher) operating expenses  (0.03)         (0.03)
Lower (higher) depreciation / depletion(0.08)   (0.01)       (0.09)
              
Other Income (Expense)             
(Higher) lower interest expense(0.01)     0.01    0.01  0.01 
              
Income Taxes             
Impact of tax rate reduction due to 2017 Tax Reform0.01  0.01  0.01        0.03 
Lower (higher) income tax expense / effective tax rate(0.05)   (0.01)     0.01  (0.05)
              
All other / rounding    0.01    (0.01)    
Third quarter 2019 adjusted operating results per share0.30  0.18  0.17  0.08  (0.02)   0.71 
              
Items impacting comparability:             
Mark-to-market adjustments due to hedge ineffectiveness0.01            0.01 
Tax impact of mark-to-market adjustments due to hedge ineffectiveness             
Unrealized gain (loss) on other investments          0.02  0.02 
Tax impact of unrealized gain (loss) on other investments             
Rounding          (0.01) (0.01)
Third quarter 2019 GAAP earnings per share$0.31  $0.18  $0.17  $0.08  $(0.02) $0.01  $0.73 
              
* Amounts do not reflect intercompany eliminations             
** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes".
*** Downstream margin defined as operating revenues less purchased gas expense.
 
 


NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
NINE MONTHS ENDED JUNE 30, 2019
(Unaudited)
              
 Upstream Midstream
Businesses
 Downstream
Businesses
    
              
 Exploration & Pipeline &     Energy Corporate /  
(Thousands of Dollars)Production Storage Gathering Utility Marketing All Other Consolidated*
              
Nine months ended June 30, 2018 GAAP earnings$161,052  $81,909  $68,736  $58,283  $1,434  $(17,887) $353,527 
              
Items impacting comparability:             
Remeasurement of deferred taxes under 2017 Tax Reform(76,510) (14,100) (34,500)   359  17,751  (107,000)
Mark-to-market adjustments due to hedge ineffectiveness436            436 
Tax impact of mark-to-market adjustments due to hedge ineffectiveness(107)           (107)
Nine months ended June 30, 2018 adjusted operating results84,871  67,809  34,236  58,283  1,793  (136) 246,856 
              
Drivers of adjusted operating results**             
              
Upstream Revenues             
Higher (lower) natural gas production44,802            44,802 
Higher (lower) crude oil production(10,025)           (10,025)
Higher (lower) realized natural gas prices, after hedging(4,248)           (4,248)
Higher (lower) realized crude oil prices, after hedging3,782            3,782 
              
Midstream and All Other Revenues             
Higher (lower) operating revenues  (5,690) 9,428      (1,249) 2,489 
              
Downstream Margins***             
Impact of usage and weather      3,684      3,684 
System modernization tracker revenues      2,601      2,601 
Lower (higher) refund provision on tax rate change      (3,801)     (3,801)
Regulatory true-up adjustments      1,173      1,173 
Higher (lower) marketing margins        (3,360)   (3,360)
              
Operating Expenses             
Lower (higher) lease operating and transportation expenses(11,429)           (11,429)
Lower (higher) operating expenses(1,636) (7,956) (1,680) (895)     (12,167)
Lower (higher) property, franchise and other taxes(2,123) (867)         (2,990)
Lower (higher) depreciation / depletion(15,052) (935) (1,568)       (17,555)
              
Other Income (Expense)             
(Higher) lower other deductions  1,581    2,421      4,002 
(Higher) lower interest expense(423) 1,064  256  1,749    1,188  3,834 
              
Income Taxes             
Impact of tax rate reduction due to 2017 Tax Reform3,556  2,220  1,969  2,813  (76) (216) 10,266 
Lower (higher) income tax expense / effective tax rate(7,376) 1,885  (1,393) 195  248  817  (5,624)
              
All other / rounding291  (468) (237) 377  (1) 4  (34)
Nine months ended June 30, 2019 adjusted operating results84,990  58,643  41,011  68,600  (1,396) 408  252,256 
              
Items impacting comparability:             
Remeasurement of deferred taxes under 2017 Tax Reform990    500    198  3,312  5,000 
Mark-to-market adjustments due to hedge ineffectiveness783            783 
Tax impact of mark-to-market adjustments due to hedge ineffectiveness(164)           (164)
Unrealized gain (loss) on other investments          (1,096) (1,096)
Tax impact of unrealized gain (loss) on other investments          230  230 
Nine months ended June 30, 2019 GAAP earnings$86,599  $58,643  $41,511  $68,600  $(1,198) $2,854  $257,009 
              
* Amounts do not reflect intercompany eliminations             
** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes".
*** Downstream margin defined as operating revenues less purchased gas expense.
 
 


NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
NINE MONTHS ENDED JUNE 30, 2019
(Unaudited)
              
 Upstream Midstream
Businesses
 Downstream
Businesses
    
              
 Exploration & Pipeline &     Energy Corporate /  
 Production Storage Gathering Utility Marketing All Other Consolidated*
Nine months ended June 30, 2018 GAAP earnings per share$1.86  $0.95  $0.80  $0.67  $0.02  $(0.21) $4.09 
Items impacting comparability:             
Remeasurement of deferred taxes under 2017 Tax Reform(0.89) (0.16) (0.40)     0.21  (1.24)
Mark-to-market adjustments due to hedge ineffectiveness0.01            0.01 
Tax impact of mark-to-market adjustments due to hedge ineffectiveness             
Nine months ended June 30, 2018 adjusted operating results per share0.98  0.79  0.40  0.67  0.02    2.86 
              
Drivers of adjusted operating results**             
              
Upstream Revenues             
Higher (lower) natural gas production0.52            0.52 
Higher (lower) crude oil production(0.12)           (0.12)
Higher (lower) realized natural gas prices, after hedging(0.05)           (0.05)
Higher (lower) realized crude oil prices, after hedging0.04            0.04 
              
Midstream and All Other Revenues             
Higher (lower) operating revenues  (0.07) 0.11      (0.01) 0.03 
              
Downstream Margins***             
Impact of usage and weather      0.04      0.04 
System modernization tracker revenues      0.03      0.03 
Lower (higher) refund provision on tax rate change      (0.04)     (0.04)
Regulatory true-up adjustments      0.01      0.01 
Higher (lower) marketing margins        (0.04)   (0.04)
              
Operating Expenses             
Lower (higher) lease operating and transportation expenses(0.13)           (0.13)
Lower (higher) operating expenses(0.02) (0.09) (0.02) (0.01)     (0.14)
Lower (higher) property, franchise and other taxes(0.02) (0.01)         (0.03)
Lower (higher) depreciation / depletion(0.17) (0.01) (0.02)       (0.20)
              
Other Income (Expense)             
(Higher) lower other deductions  0.02    0.03      0.05 
(Higher) lower interest expense  0.01    0.02    0.01  0.04 
              
Income Taxes             
Impact of tax rate reduction due to 2017 Tax Reform0.04  0.03  0.02  0.03      0.12 
Lower (higher) income tax expense / effective tax rate(0.09) 0.02  (0.02)     0.01  (0.08)
              
All other / rounding  (0.01)   0.01       
Nine months ended June 30, 2019 adjusted operating results per share0.98  0.68  0.47  0.79  (0.02) 0.01  2.91 
              
Items impacting comparability:             
Remeasurement of deferred taxes under 2017 Tax Reform0.01    0.01      0.04  0.06 
Mark-to-market adjustments due to hedge ineffectiveness0.01            0.01 
Tax impact of mark-to-market adjustments due to hedge ineffectiveness             
Unrealized gain (loss) on other investments          (0.01) (0.01)
Tax impact of unrealized gain (loss) on other investments             
Rounding        0.01  (0.02) (0.01)
Nine months ended June 30, 2019 GAAP earnings per share$1.00  $0.68  $0.48  $0.79  $(0.01) $0.02  $2.96 
              
* Amounts do not reflect intercompany eliminations             
** Operating results have been calculated using the 24.5% federal statutory rate effective for the 2018 fiscal year. The impact of the change to a 21% federal statutory rate for the 2019 fiscal year is broken out separately under the caption "Income Taxes".
*** Downstream margin defined as operating revenues less purchased gas expense.
 
 


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
         
(Thousands of Dollars, except per share amounts)        
  Three Months Ended Nine Months Ended
  June 30, June 30,
  (Unaudited) (Unaudited)
SUMMARY OF OPERATIONS 2019 2018 2019 2018
Operating Revenues:        
Utility and Energy Marketing Revenues $151,312  $154,088  $781,059  $719,234 
Exploration and Production and Other Revenues 159,864  137,492  470,267  425,811 
Pipeline and Storage and Gathering Revenues 46,024  51,332  148,665  158,428 
  357,200  342,912  1,399,991  1,303,473 
Operating Expenses:        
Purchased Gas 47,839  52,211  381,537  322,854 
Operation and Maintenance:        
  Utility and Energy Marketing 39,607  39,560  132,082  130,348 
  Exploration and Production and Other 35,674  30,682  108,610  104,891 
  Pipeline and Storage and Gathering 28,675  25,044  80,857  68,272 
Property, Franchise and Other Taxes 21,506  20,595  68,046  64,245 
Depreciation, Depletion and Amortization 71,072  60,817  200,990  177,802 
  244,373  228,909  972,122  868,412 
         
Operating Income 112,827  114,003  427,869  435,061 
         
Other Income (Expense):        
Other Income (Deductions) (1,456) (3,612) (16,977) (20,205)
Interest Expense on Long-Term Debt (25,303) (27,177) (76,016) (82,412)
Other Interest Expense (1,202) (1,006) (4,061) (2,742)
         
Income Before Income Taxes 84,866  82,208  330,815  329,702 
         
Income Tax Expense (Benefit) 21,113  19,183  73,806  (23,825)
         
Net Income Available for Common Stock $63,753  $63,025  $257,009  $353,527 
         
Earnings Per Common Share        
Basic $0.74  $0.73  $2.98  $4.12 
Diluted $0.73  $0.73  $2.96  $4.09 
         
Weighted Average Common Shares:        
Used in Basic Calculation 86,306,434 85,930,289 86,208,766 85,789,279
Used in Diluted Calculation 86,839,841 86,501,194 86,765,781 86,370,900
         
         


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
  
 June 30, September 30,
(Thousands of Dollars)2019 2018
    
ASSETS   
Property, Plant and Equipment$10,988,435  $10,439,839 
Less - Accumulated Depreciation, Depletion and Amortization 5,636,065   5,462,696 
Net Property, Plant and Equipment 5,352,370   4,977,143 
    
Current Assets:   
Cash and Temporary Cash Investments 87,515   229,606 
Hedging Collateral Deposits 6,835   3,441 
Receivables - Net 178,762   141,498 
Unbilled Revenue 18,047   24,182 
Gas Stored Underground 17,075   37,813 
Materials and Supplies - at average cost 39,010   35,823 
Unrecovered Purchased Gas Costs    4,204 
Other Current Assets 56,052   68,024 
Total Current Assets 403,296   544,591 
    
Other Assets:   
Recoverable Future Taxes 113,619   115,460 
Unamortized Debt Expense 14,432   15,975 
Other Regulatory Assets 107,206   112,918 
Deferred Charges 33,627   40,025 
Other Investments 137,847   132,545 
Goodwill 5,476   5,476 
Prepaid Post-Retirement Benefit Costs 88,939   82,733 
Fair Value of Derivative Financial Instruments 36,803   9,518 
Other 42,632   102 
Total Other Assets 580,581   514,752 
Total Assets$6,336,247  $6,036,486 
    
CAPITALIZATION AND LIABILITIES   
Capitalization:   
Comprehensive Shareholders' Equity   
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and   
Outstanding - 86,306,593 Shares and 85,956,814 Shares, Respectively$86,307  $85,957 
Paid in Capital 827,243   820,223 
Earnings Reinvested in the Business 1,262,867   1,098,900 
Accumulated Other Comprehensive Loss (32,666)  (67,750)
Total Comprehensive Shareholders' Equity 2,143,751   1,937,330 
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs 2,133,101   2,131,365 
Total Capitalization 4,276,852   4,068,695 
    
Current and Accrued Liabilities:   
Notes Payable to Banks and Commercial Paper     
Current Portion of Long-Term Debt     
Accounts Payable 112,782   160,031 
Amounts Payable to Customers 14,546   3,394 
Dividends Payable 37,543   36,532 
Interest Payable on Long-Term Debt 29,461   19,062 
Customer Advances 166   13,609 
Customer Security Deposits 16,801   25,703 
Other Accruals and Current Liabilities 180,063   132,693 
Fair Value of Derivative Financial Instruments 4,563   49,036 
Total Current and Accrued Liabilities 395,925   440,060 
    
Deferred Credits:   
Deferred Income Taxes 647,602   512,686 
Taxes Refundable to Customers 366,184   370,628 
Cost of Removal Regulatory Liability 218,340   212,311 
Other Regulatory Liabilities 159,259   146,743 
Pension and Other Post-Retirement Liabilities 53,142   66,103 
Asset Retirement Obligations 104,732   108,235 
Other Deferred Credits 114,211   111,025 
Total Deferred Credits 1,663,470   1,527,731 
Commitments and Contingencies     
Total Capitalization and Liabilities$6,336,247  $6,036,486 
        
        


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
  Nine Months Ended
  June 30,
(Thousands of Dollars) 2019 2018
     
Operating Activities:    
Net Income Available for Common Stock $257,009  $353,527 
Adjustments to Reconcile Net Income to Net Cash    
Provided by Operating Activities:    
Depreciation, Depletion and Amortization 200,990  177,802 
Deferred Income Taxes 111,123  (43,537)
Stock-Based Compensation 16,144  11,770 
Other 7,964  12,311 
Change in:    
Receivables and Unbilled Revenue (31,584) (35,021)
Gas Stored Underground and Materials and Supplies 17,551  18,832 
Unrecovered Purchased Gas Costs 4,204  4,623 
Other Current Assets 11,972  (1,185)
Accounts Payable (16,132) 2,327 
Amounts Payable to Customers 11,152  16,833 
Customer Advances (13,443) (15,504)
Customer Security Deposits (8,902) (1,904)
Other Accruals and Current Liabilities 36,040  26,538 
Other Assets (34,594) (10,770)
Other Liabilities 1,061  1,441 
Net Cash Provided by Operating Activities $570,555  $518,083 
     
Investing Activities:    
Capital Expenditures $(587,442) $(403,994)
Net Proceeds from Sale of Oil and Gas Producing Properties   55,506 
Other (3,071) (1,759)
Net Cash Used in Investing Activities $(590,513) $(350,247)
     
Financing Activities:    
Reduction of Long-Term Debt $  $(307,047)
Dividends Paid on Common Stock (109,875) (106,732)
Net Proceeds from Issuance (Repurchase) of Common Stock (8,864) 4,262 
Net Cash Used in Financing Activities $(118,739) $(409,517)
     
Net Decrease in Cash, Cash Equivalents, and Restricted Cash (138,697) (241,681)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 233,047  557,271 
Cash, Cash Equivalents, and Restricted Cash at June 30 $94,350  $315,590 
         
         


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
          
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
          
UPSTREAM BUSINESS
          
          
 Three Months Ended Nine Months Ended
(Thousands of Dollars, except per share amounts)June 30, June 30,
EXPLORATION AND PRODUCTION SEGMENT2019 2018 Variance 20192018Variance
Total Operating Revenues$158,875  $135,828  $23,047  $467,853 $421,381 $46,472 
          
Operating Expenses:         
Operation and Maintenance:         
General and Administrative Expense15,628  14,946  682  47,940 45,296 2,644 
Lease Operating and Transportation Expense47,714  37,624  10,090  136,217 121,079 15,138 
All Other Operation and Maintenance Expense2,453  2,728  (275) 7,705 8,182 (477)
Property, Franchise and Other Taxes3,885  3,302  583  13,558 10,746 2,812 
Depreciation, Depletion and Amortization40,055  31,296  8,759  110,643 90,707 19,936 
 109,735  89,896  19,839  316,063 276,010 40,053 
          
Operating Income49,140  45,932 3,208  151,790 145,3716,419 
          
Other Income (Expense):         
Other Income (Deductions)268  193  75  822 208 614 
Other Interest Expense(13,850) (13,247) (603) (40,561)(40,001)(560)
          
Income Before Income Taxes35,558  32,878  2,680  112,051 105,578 6,473 
Income Tax Expense (Benefit)9,046  5,061  3,985  25,452 (55,474)80,926 
Net Income$26,512  $27,817  $(1,305) $86,599 $161,052 $(74,453)
          
Net Income Per Share (Diluted)$0.31  $0.32  $(0.01) $1.00 $1.86 $(0.86)
          
          


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
          
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
          
MIDSTREAM BUSINESSES
          
          
 Three Months Ended Nine Months Ended
(Thousands of Dollars, except per share amounts)June 30, June 30,
PIPELINE AND STORAGE SEGMENT2019 2018 Variance 20192018Variance
Revenues from External Customers$46,024  $51,363  $(5,339) $148,663 $158,387 $(9,724)
Intersegment Revenues22,943  22,496  447  69,712 67,524 2,188 
Total Operating Revenues68,967  73,859  (4,892) 218,375 225,911 (7,536)
          
Operating Expenses:         
Purchased Gas70  105  (35) 884 266 618 
Operation and Maintenance24,070  20,618  3,452  68,610 58,072 10,538 
Property, Franchise and Other Taxes7,499  7,064  435  22,448 21,299 1,149 
Depreciation, Depletion and Amortization11,154  10,888  266  33,561 32,322 1,239 
 42,793  38,675  4,118  125,503 111,959 13,544 
          
Operating Income26,174  35,184  (9,010) 92,872 113,952 (21,080)
          
Other Income (Expense):         
Other Income (Deductions)2,447  1,433  1,014  6,346 4,252 2,094 
Interest Expense(7,223) (7,667) 444  (22,009)(23,418)1,409 
          
Income Before Income Taxes21,398  28,950  (7,552) 77,209 94,786 (17,577)
Income Tax Expense5,606  8,227  (2,621) 18,566 12,877 5,689 
Net Income$15,792  $20,723  $(4,931) $58,643 $81,909 $(23,266)
          
Net Income Per Share (Diluted)$0.18  $0.24  $(0.06) $0.68 $0.95 $(0.27)
          
          
 Three Months Ended Nine Months Ended
 June 30, June 30,
GATHERING SEGMENT2019 2018 Variance 20192018Variance
Revenues from External Customers$  $(31) $31  $2 $41 $(39)
Intersegment Revenues32,875  27,908  4,967  91,931 79,404 12,527 
Total Operating Revenues32,875  27,877  4,998  91,933 79,445 12,488 
          
Operating Expenses:         
Operation and Maintenance5,009  4,773  236  13,473 11,248 2,225 
Property, Franchise and Other Taxes14  14    62 74 (12)
Depreciation, Depletion and Amortization5,485  4,444  1,041  14,836 12,759 2,077 
 10,508  9,231  1,277  28,371 24,081 4,290 
          
Operating Income22,367  18,646  3,721  63,562 55,364 8,198 
          
Other Income (Expense):         
Other Income (Deductions)172  78  94  404 730 (326)
Interest Expense(2,288) (2,502) 214  (7,010)(7,349)339 
          
Income Before Income Taxes20,251  16,222  4,029  56,956 48,745 8,211 
Income Tax Expense (Benefit)5,613  4,656  957  15,445 (19,991)35,436 
Net Income$14,638  $11,566  $3,072  $41,511 $68,736 $(27,225)
          
Net Income Per Share (Diluted)$0.17  $0.13  $0.04  $0.48 $0.80 $(0.32)
          
          


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
          
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
          
DOWNSTREAM BUSINESSES
          
 Three Months Ended Nine Months Ended
(Thousands of Dollars, except per share amounts)June 30, June 30,
UTILITY SEGMENT2019 2018 Variance 20192018Variance
Revenues from External Customers$129,977  $128,628  $1,349  $648,624 $599,495 $49,129 
Intersegment Revenues2,944  3,519  (575) 9,984 11,401 (1,417)
Total Operating Revenues132,921  132,147  774  658,608 610,896 47,712 
          
Operating Expenses:         
Purchased Gas51,003  53,028  (2,025) 328,119 286,446 41,673 
Operation and Maintenance38,890  38,858  32  129,839 128,060 1,779 
Property, Franchise and Other Taxes9,865  9,961  (96) 31,229 31,349 (120)
Depreciation, Depletion and Amortization13,546  13,316  230  40,202 39,981 221 
 113,304  115,163  (1,859) 529,389 485,836 43,553 
          
Operating Income19,617  16,984  2,633  129,219 125,060 4,159 
          
Other Income (Expense):         
Other Income (Deductions)(5,017) (5,436) 419  (22,851)(26,057)3,206 
Interest Expense(5,793) (6,572) 779  (17,950)(20,266)2,316 
          
Income Before Income Taxes8,807  4,976  3,831  88,418 78,737 9,681 
Income Tax Expense1,445  1,046  399  19,818 20,454 (636)
Net Income$7,362  $3,930  $3,432  $68,600 $58,283 $10,317 
          
Net Income Per Share (Diluted)$0.08  $0.05  $0.03  $0.79 $0.67 $0.12 
          
          
 Three Months Ended Nine Months Ended
 June 30, June 30,
ENERGY MARKETING SEGMENT2019 2018 Variance 20192018Variance
Revenues from External Customers$21,335  $25,460  $(4,125) $132,435 $119,739 $12,696 
Intersegment Revenues681  512  169  1,056 589 467 
Total Operating Revenues22,016  25,972  (3,956) 133,491 120,328 13,163 
          
Operating Expenses:         
Purchased Gas22,517  24,816  (2,299) 130,853 113,240 17,613 
Operation and Maintenance1,574  1,451  123  4,814 4,529 285 
Depreciation, Depletion and Amortization72  69  3  213 207 6 
 24,163  26,336  (2,173) 135,880 117,976 17,904 
          
Operating Income (Loss)(2,147) (364) (1,783) (2,389)2,352 (4,741)
          
Other Income (Expense):         
Other Income (Deductions)221  104  117  466 177 289 
Interest Expense(3) (4) 1  (16)(16) 
          
Income (Loss) Before Income Taxes(1,929) (264) (1,665) (1,939)2,513 (4,452)
Income Tax Expense (Benefit)(488) (74) (414) (741)1,079 (1,820)
Net Income (Loss)$(1,441) $(190) $(1,251) $(1,198)$1,434 $(2,632)
          
Net Income (Loss) Per Share (Diluted)$(0.02) $  $(0.02) $(0.01)$0.02 $(0.03)
          


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
          
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
          
 Three Months Ended Nine Months Ended
(Thousands of Dollars, except per share amounts)June 30, June 30,
ALL OTHER2019 2018 Variance 20192018Variance
Total Operating Revenues$854  $1,496  $(642) $2,170 $3,824 $(1,654)
Operating Expenses:         
Operation and Maintenance316  404  (88) 899 1,076 (177)
Property, Franchise and Other Taxes127  138  (11) 398 425 (27)
Depreciation, Depletion and Amortization568  614  (46) 963 1,259 (296)
 1,011  1,156  (145) 2,260 2,760 (500)
          
Operating Income (Loss)(157) 340  (497) (90)1,064 (1,154)
          
Other Income (Expense):         
Other Income (Deductions)155  98  57  443 241 202 
          
Income (Loss) Before Income Taxes(2) 438  (440) 353 1,305 (952)
Income Tax Expense1  141  (140) 101 1,519 (1,418)
Net Income (Loss)$(3) $297  $(300) $252 $(214)$466 
          
Net Income (Loss) Per Share (Diluted)$  $  $  $ $ $ 
          
          
 Three Months Ended Nine Months Ended
 June 30, June 30,
CORPORATE2019 2018 Variance 20192018Variance
Revenues from External Customers$135  $168  $(33) $244 $606 $(362)
Intersegment Revenues1,165  999  166  3,494 2,998 496 
Total Operating Revenues1,300  1,167  133  3,738 3,604 134 
Operating Expenses:         
Operation and Maintenance3,159  3,580  (421) 9,910 10,787 (877)
Property, Franchise and Other Taxes116  116    351 352 (1)
Depreciation, Depletion and Amortization192  190  2  572 567 5 
 3,467  3,886  (419) 10,833 11,706 (873)
          
Operating Loss(2,167) (2,719) 552  (7,095)(8,102)1,007 
          
Other Income (Expense):         
Other Income (Deductions)29,588  30,393  (805) 84,580 92,984 (8,404)
Interest Expense on Long-Term Debt(25,303) (27,177) 1,874  (76,016)(82,412)6,396 
Other Interest Expense(1,335) (1,489) 154  (3,702)(4,432)730 
          
Income (Loss) before Income Taxes783  (992) 1,775  (2,233)(1,962)(271)
Income Tax Expense (Benefit)(110) 126  (236) (4,835)15,711 (20,546)
Net Income (Loss)$893  $(1,118) $2,011  $2,602 $(17,673)$20,275 
          
Net Income (Loss) Per Share (Diluted)$0.01  $(0.01) $0.02  $0.02 $(0.21)$0.23 
          
          
 Three Months Ended Nine Months Ended
 June 30, June 30,
INTERSEGMENT ELIMINATIONS2019 2018 Variance 20192018Variance
Intersegment Revenues$(60,608) $(55,434) $(5,174) $(176,177)$(161,916)$(14,261)
Operating Expenses:         
Purchased Gas(25,751) (25,738) (13) (78,319)(77,098)(1,221)
Operation and Maintenance(34,857) (29,696) (5,161) (97,858)(84,818)(13,040)
 (60,608) (55,434) (5,174) (176,177)(161,916)(14,261)
          
Operating Income         
          
Other Income (Expense):         
Other Income (Deductions)(29,290) (30,475) 1,185  (87,187)(92,740)5,553 
Interest Expense29,290  30,475  (1,185) 87,187 92,740 (5,553)
Net Income$  $  $  $ $ $ 
Net Income Per Share (Diluted)$  $  $  $ $ $ 
                      
                      


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
            
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
            
 Three Months Ended Nine Months Ended
 June 30, June 30,
 (Unaudited) (Unaudited)
     Increase     Increase
 2019 2018 (Decrease) 2019 2018 (Decrease)
            
Capital Expenditures:           
Exploration and Production$128,888 (1)$110,591 (3)$18,297  $391,674 (1)(2)$269,876 (3)(4)$121,798 
Pipeline and Storage35,489 (1)15,916 (3)19,573  88,127 (1)(2)53,356 (3)(4)34,771 
Gathering17,926 (1)15,484 (3)2,442  39,396 (1)(2)47,767 (3)(4)(8,371)
Utility22,706 (1)19,737 (3)2,969  58,363 (1)(2)52,026 (3)(4)6,337 
Energy Marketing14  10  4  56  33  23 
Total Reportable Segments205,023  161,738  43,285  577,616  423,058  154,558 
All Other68    68  68  1  67 
Corporate267  7  260  369  51  318 
Eliminations        (19,922) 19,922 
Total Capital Expenditures$205,358  $161,745  $43,613  $578,053  $403,188  $174,865 

(1)  Capital expenditures for the quarter and nine months ended June 30, 2019, include accounts payable and accrued liabilities related to capital expenditures of $51.0 million, $14.0 million, $8.3 million, and $6.1 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 June 30, 2019, since they represent non-cash investing activities at that date.

(2)  Capital expenditures for the nine months ended June 30, 2019, exclude capital expenditures of $51.3 million, $21.9 million, $6.1 million and $9.5 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, 2018 and paid during the nine months ended June 30, 2019.  These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2018, since they represented non-cash investing activities at that date.  These amounts have been included in the Consolidated Statement of Cash Flows at June 30, 2019.

(3)  Capital expenditures for the quarter and nine months ended June 30, 2018, include accounts payable and accrued liabilities related to capital expenditures of $49.0 million, $10.9 million, $8.2 million, and $3.3 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 June 30, 2018, since they represent non-cash investing activities at that date.

(4)  Capital expenditures for the nine months ended June 30, 2018, exclude capital expenditures of $36.5 million, $25.1 million, $3.9 million and $6.7 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively.  These amounts were in accounts payable and accrued liabilities at September 30, 2017 and paid during the nine months ended June 30, 2018.  These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2017, since they represented non-cash investing activities at that date.  These amounts have been included in the Consolidated Statement of Cash Flows at June 30, 2018.

          
          
DEGREE DAYS         
          
       Percent Colder
       (Warmer) Than:
Three Months Ended June 30Normal 2019 2018   Normal (1) Last Year (1)
           
Buffalo, NY912 957 873 4.9  9.6 
Erie, PA871 773 825 (11.3) (6.3)
            
Nine Months Ended June 30           
            
Buffalo, NY6,455 6,654 6,308 3.1  5.5 
Erie, PA6,023 5,899 5,929 (2.1) (0.5)
 
(1) Percents compare actual 2019 degree days to normal degree days and actual 2019 degree days to actual 2018 degree days.
 
 


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
             
EXPLORATION AND PRODUCTION INFORMATION
             
  Three Months Ended Nine Months Ended
  June 30, June 30,
      Increase     Increase
  2019 2018 (Decrease) 2019 2018 (Decrease)
             
Gas Production/Prices:            
Production (MMcf)            
Appalachia 50,766  40,444  10,322  140,954  117,261  23,693 
West Coast 494  526  (32) 1,483  1,896  (413)
Total Production 51,260  40,970  10,290  142,437  119,157  23,280 
             
Average Prices (Per Mcf)            
Appalachia $2.21  $2.30  $(0.09) $2.58  $2.37  $0.21 
West Coast 3.84  4.41  (0.57) 5.55  4.62  0.93 
Weighted Average 2.22  2.32  (0.10) 2.61  2.40  0.21 
Weighted Average after Hedging 2.36  2.43  (0.07) 2.51  2.55  (0.04)
             
Oil Production/Prices:            
Production (Thousands of Barrels)            
Appalachia 1  1    2  3  (1)
West Coast 575  600  (25) 1,710  1,934  (224)
Total Production 576  601  (25) 1,712  1,937  (225)
             
Average Prices (Per Barrel)            
Appalachia $55.45  $64.37  $(8.92) $55.80  $55.06  $0.74 
West Coast 67.43  71.53  (4.10) 65.01  64.69  0.32 
Weighted Average 67.41  71.52  (4.11) 65.00  64.68  0.32 
Weighted Average after Hedging 62.92  58.74  4.18  61.88  58.96  2.92 
             
Total Production (MMcfe) 54,716  44,576  10,140  152,709  130,779  21,930 
             
Selected Operating Performance Statistics:            
General & Administrative Expense per Mcfe (1) $0.29  $0.34  $(0.05) $0.31  $0.35  $(0.04)
Lease Operating and Transportation Expense per Mcfe (1)(2) $0.87  $0.84  $0.03  $0.89  $0.93  $(0.04)
Depreciation, Depletion & Amortization per Mcfe (1) $0.73  $0.70  $0.03  $0.72  $0.69  $0.03 
             

(1)  Refer to page 16 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.

(2)  Amounts include transportation expense of $0.57 and $0.53 per Mcfe for the three months ended June 30, 2019 and June 30, 2018, respectively. Amounts include transportation expense of $0.55 and $0.54 per Mcfe for the nine months ended June 30, 2019 and June 30, 2018, respectively.

 
 
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
       
EXPLORATION AND PRODUCTION INFORMATION
 
Hedging Summary for Remaining Three Months of Fiscal 2019Volume  Average Hedge Price
Oil Swaps      
Brent 186,000 BBL $63.52 / BBL
NYMEX 267,000 BBL $53.42 / BBL
Total 453,000 BBL $57.57 / BBL
       
Gas Swaps      
NYMEX 20,040,000 MMBTU $2.93 / MMBTU
DAWN 1,800,000 MMBTU $3.00 / MMBTU
Fixed Price Physical Sales 19,579,555 MMBTU $2.61 / MMBTU
Total 41,419,555 MMBTU $2.78 / MMBTU
       
Hedging Summary for Fiscal 2020 Volume  Average Hedge Price
Oil Swaps      
Brent 1,260,000 BBL $64.66 / BBL
NYMEX 324,000 BBL $50.52 / BBL
Total 1,584,000 BBL $61.77 / BBL
       
Gas Swaps      
NYMEX 40,990,000 MMBTU $2.92 / MMBTU
DAWN 7,200,000 MMBTU $3.00 / MMBTU
Fixed Price Physical Sales 46,430,854 MMBTU $2.37 / MMBTU
Total 94,620,854 MMBTU $2.65 / MMBTU
       
Hedging Summary for Fiscal 2021 Volume  Average Hedge Price
Oil Swaps      
Brent 576,000 BBL $64.48 / BBL
NYMEX 156,000 BBL $51.00 / BBL
Total 732,000 BBL $61.61 / BBL
       
Gas Swaps      
NYMEX 6,790,000 MMBTU $2.95 / MMBTU
DAWN 600,000 MMBTU $3.00 / MMBTU
Fixed Price Physical Sales 41,381,641 MMBTU $2.22 / MMBTU
Total 48,771,641 MMBTU $2.33 / MMBTU
       
Hedging Summary for Fiscal 2022 Volume  Average Hedge Price
Oil Swaps      
Brent 300,000 BBL $60.07 / BBL
NYMEX 156,000 BBL $51.00 / BBL
Total 456,000 BBL $56.97 / BBL
       
Fixed Price Physical Sales 40,533,125 MMBTU $2.23 / MMBTU
       
Hedging Summary for Fiscal 2023 Volume  Average Hedge Price
Fixed Price Physical Sales 37,174,130 MMBTU $2.26 / MMBTU
       
Hedging Summary for Fiscal 2024 Volume  Average Hedge Price
Fixed Price Physical Sales 21,053,189 MMBTU $2.25 / MMBTU
       
Hedging Summary for Fiscal 2025 Volume  Average Hedge Price
Fixed Price Physical Sales 2,293,200 MMBTU $2.18 / MMBTU
        
        


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
             
     
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)    
             
  Three Months Ended Nine Months Ended
  June 30, June 30,
      Increase     Increase
  2019 2018 (Decrease) 2019 2018 (Decrease)
Firm Transportation - Affiliated 20,755  21,714  (959) 107,423  104,106  3,317 
Firm Transportation - Non-Affiliated 137,984  155,357  (17,373) 442,839  479,346  (36,507)
Interruptible Transportation 309  1,107  (798) 1,974  3,153  (1,179)
  159,048  178,178  (19,130) 552,236  586,605  (34,369)
             
Gathering Volume - (MMcf)            
  Three Months Ended Nine Months Ended
  June 30, June 30,
      Increase     Increase
  2019 2018 (Decrease) 2019 2018 (Decrease)
Gathered Volume - Affiliated 60,745  51,392  9,353  169,590  145,928  23,662 
             
             
Utility Throughput - (MMcf)            
  Three Months Ended Nine Months Ended
  June 30, June 30,
      Increase     Increase
  2019 2018 (Decrease) 2019 2018 (Decrease)
Retail Sales:            
Residential Sales 9,895  10,052  (157) 60,581  56,468  4,113 
Commercial Sales 1,441  1,525  (84) 8,999  8,621  378 
Industrial Sales 151  128  23  639  559  80 
  11,487  11,705  (218) 70,219  65,648  4,571 
Off-System Sales         141  (141)
Transportation 14,716  15,348  (632) 65,914  66,398  (484)
  26,203  27,053  (850) 136,133  132,187  3,946 
             
Energy Marketing Volume            
  Three Months Ended Nine Months Ended
  June 30, June 30,
      Increase     Increase
  2019 2018 (Decrease) 2019 2018 (Decrease)
Natural Gas (MMcf) 7,429  8,322  (893) 36,039  36,413  (374)
             
             


 NATIONAL FUEL GAS COMPANY
 AND SUBSIDIARIES
 
 NON-GAAP FINANCIAL MEASURES

In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding Adjusted 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 Adjusted Operating Results as reported GAAP earnings before items impacting comparability.  The following table reconciles National Fuel's reported GAAP earnings to Adjusted Operating Results for the three and nine months ended June 30, 2019 and 2018:

  Three Months Ended Nine Months Ended
  June 30, June 30,
(in thousands except per share amounts) 2019 2018 2019 2018
Reported GAAP Earnings $63,753  $63,025  $257,009  $353,527 
Items impacting comparability        
Remeasurement of deferred income taxes under 2017 Tax Reform     (5,000) (107,000)
Mark-to-market adjustments due to hedge ineffectiveness (E&P) (1,020) 339  (783) 436 
Tax impact of mark-to-market adjustments due to hedge ineffectiveness 214  (83) 164  (107)
Unrealized (gain) loss on other investments (Corporate/All Other) (1,420)   1,096   
Tax impact of unrealized (gain) loss on other investments 298    (230)  
Adjusted Operating Results $61,825  $63,281  $252,256  $246,856 
         
Reported GAAP Earnings per share $0.73  $0.73  $2.96  $4.09 
Items impacting comparability        
Remeasurement of deferred income taxes under 2017 Tax Reform     (0.06) (1.24)
Mark-to-market adjustments due to hedge ineffectiveness (E&P) (0.01)   (0.01) 0.01 
Tax impact of mark-to-market adjustments due to hedge ineffectiveness        
Unrealized (gain) loss on other investments (Corporate/All Other) (0.02)   0.01   
Tax impact of unrealized (gain) loss on other investments        
Rounding 0.01    0.01   
Adjusted Operating Results per share $0.71  $0.73  $2.91  $2.86 
                 

Management defines Adjusted EBITDA as reported GAAP earnings before the following items:  interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.  The following tables reconcile National Fuel's reported GAAP earnings to Adjusted EBITDA for the three and nine months ended June 30, 2019 and 2018:

     
  Three Months Ended Nine Months Ended
  June 30, June 30,
  2019 2018 2019 2018
(in thousands)        
Reported GAAP Earnings $63,753  $63,025  $257,009  $353,527 
Depreciation, Depletion and Amortization 71,072  60,817  200,990  177,802 
Other (Income) Deductions 1,456  3,612  16,977  20,205 
Interest Expense 26,505  28,183  80,077  85,154 
Income Taxes 21,113  19,183  73,806  (23,825)
Mark-to-Market Adjustments due to Hedge Ineffectiveness (1,020) 339  (783) 436 
Adjusted EBITDA $182,879  $175,159  $628,076  $613,299 
         
Adjusted EBITDA by Segment        
Pipeline and Storage Adjusted EBITDA $37,328  $46,072  $126,433  $146,274 
Gathering Adjusted EBITDA 27,852  23,090  78,398  68,123 
Total Midstream Businesses Adjusted EBITDA 65,180  69,162  204,831  214,397 
Exploration and Production Adjusted EBITDA 88,175  77,567  261,650  236,514 
Utility Adjusted EBITDA 33,163  30,300  169,421  165,041 
Energy Marketing Adjusted EBITDA (2,075) (295) (2,176) 2,559 
Corporate and All Other Adjusted EBITDA (1,564) (1,575) (5,650) (5,212)
Total Adjusted EBITDA $182,879  $175,159  $628,076  $613,299 
                 
                 


NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
SEGMENT ADJUSTED EBITDA
 
  Three Months Ended Nine Months Ended
  June 30, June 30,
(in thousands) 2019 2018 2019 2018
Exploration and Production Segment        
Reported GAAP Earnings $26,512  $27,817  $86,599  $161,052 
Depreciation, Depletion and Amortization 40,055  31,296  110,643  90,707 
Other (Income) Deductions (268) (193) (822) (208)
Interest Expense 13,850  13,247  40,561  40,001 
Income Taxes 9,046  5,061  25,452  (55,474)
Mark-to-Market Adjustments due to Hedge Ineffectiveness (1,020) 339  (783) 436 
Adjusted EBITDA $88,175  $77,567  $261,650  $236,514 
         
Pipeline and Storage Segment        
Reported GAAP Earnings $15,792  $20,723  $58,643  $81,909 
Depreciation, Depletion and Amortization 11,154  10,888  33,561  32,322 
Other (Income) Deductions (2,447) (1,433) (6,346) (4,252)
Interest Expense 7,223  7,667  22,009  23,418 
Income Taxes 5,606  8,227  18,566  12,877 
Adjusted EBITDA $37,328  $46,072  $126,433  $146,274 
         
Gathering Segment        
Reported GAAP Earnings $14,638  $11,566  $41,511  $68,736 
Depreciation, Depletion and Amortization 5,485  4,444  14,836  12,759 
Other (Income) Deductions (172) (78) (404) (730)
Interest Expense 2,288  2,502  7,010  7,349 
Income Taxes 5,613  4,656  15,445  (19,991)
Adjusted EBITDA $27,852  $23,090  $78,398  $68,123 
         
Utility Segment        
Reported GAAP Earnings $7,362  $3,930  $68,600  $58,283 
Depreciation, Depletion and Amortization 13,546  13,316  40,202  39,981 
Other (Income) Deductions 5,017  5,436  22,851  26,057 
Interest Expense 5,793  6,572  17,950  20,266 
Income Taxes 1,445  1,046  19,818  20,454 
Adjusted EBITDA $33,163  $30,300  $169,421  $165,041 
         
Energy Marketing Segment        
Reported GAAP Earnings $(1,441) $(190) $(1,198) $1,434 
Depreciation, Depletion and Amortization 72  69  213  207 
Other (Income) Deductions (221) (104) (466) (177)
Interest Expense 3  4  16  16 
Income Taxes (488) (74) (741) 1,079 
Adjusted EBITDA $(2,075) $(295) $(2,176) $2,559 
         
Corporate and All Other        
Reported GAAP Earnings $890  $(821) $2,854  $(17,887)
Depreciation, Depletion and Amortization 760  804  1,535  1,826 
Other (Income) Deductions (453) (16) 2,164  (485)
Interest Expense (2,652) (1,809) (7,469) (5,896)
Income Taxes (109) 267  (4,734) 17,230 
Adjusted EBITDA $(1,564) $(1,575) $(5,650) $(5,212)
                 

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Source: GlobeNewswire (August 1, 2019 - 4:45 PM EDT)

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