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National Fuel Gas Q1 Earnings Beat Estimates, Revenues Increase Y/Y

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National Fuel Gas Company (NFG - Free Report) reported first-quarter fiscal 2025 adjusted operating earnings of $1.66 per share, which surpassed the Zacks Consensus Estimate of $1.57 by 5.7%. The bottom line also increased 13.7% from the year-ago quarter’s reported figure of $1.46.

GAAP earnings for the quarter were 49 cents per share compared with $1.44 in the year-ago quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

NFG’s Total Revenues

NFG reported sales of $549.5 million, which missed the Zacks Consensus Estimate of $594 million by 7.5%. However, the top line increased 4.6% from the prior-year recorded figure of $525.4 million.

National Fuel Gas Company Price, Consensus and EPS Surprise

NFG’s Segmental Revenues

Utility: Revenues totaled $228.4 million, up 13.1% from $201.9 million in the year-ago quarter.

Exploration and Production and Other Revenues: Revenues totaled $248.9 million, down 2% from $254 million in the year-ago quarter.

Pipeline and Storage and Gathering: Revenues amounted to $72.2 million, implying a 4% increase from $69.4 million recorded in the year-ago quarter.

Highlights of NFG’s Q1 Release

Total operating expenses increased 45.6% to $463.3 million year over year. This was primarily due to higher purchased gas and impairment of assets.

Operating income totaled $86.2 million compared with $207.1 million in the year-ago quarter.

Interest expense on long-term debt totaled $33.4 million, up 17.2% from the year-ago figure of $28.5 million.

During the fiscal first quarter, Seneca produced 97.7 billion cubic feet (Bcf) of natural gas, down 3 Bcf, or 3%, from the prior-year level. Production in the quarter was lower year over year due to the timing of turn-in line dates for new wells between fiscal years.

NFG’s Financial Highlights

As of Dec. 31, 2024, National Fuel Gas had cash and temporary cash investments of $48.7 million compared with $38.2 million as of Sept. 30, 2024.

Net cash provided by operating activities for the first three months of fiscal 2025 totaled $220.1 million compared with $270.9 million in the year-ago period.

Capital expenditures amounted to $240.4 million in the first three months of fiscal 2025 compared with $246.9 million in the year-ago period.

NFG’s Guidance

NFG has increased its guidance for fiscal 2025 adjusted earnings per share to a range of $6.50-$7.00 from the previous projection of $5.50-$6.00. This can be attributed to higher forecasted natural gas prices and ongoing improvements in the outlook for each segment. The Zacks Consensus Estimate is pegged at $6.43.

The company expects capital expenditure for fiscal 2025 to be in the band of $885-$960 million, lower than the previous guided range of $885-$970 million.

The company’s production guidance for fiscal 2025 is now expected to be 410-425 Bcf, up 7.5 Bcf, or 2%, at the midpoint compared with the previous projection of 400-420 Bcf.

NFG’s Zacks Rank

National Fuel Gas currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Atmos Energy Corporation (ATO - Free Report) is slated to report first-quarter fiscal 2025 results on Feb. 4, after market close. The Zacks Consensus Estimate for earnings is pegged at $2.20 per share.

ATO’s long-term (three to five years) earnings growth rate is 7.1%. It delivered an average earnings surprise of 3.4% in the past four quarters.

UGI Corporation (UGI - Free Report) is slated to report first-quarter fiscal 2025 results on Feb. 5, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.21 per share.

The Zacks Consensus Estimate for sales is pinned at $2.15 billion. It delivered an average earnings surprise of 73.3% in the past four quarters.

ONE Gas, Inc. (OGS - Free Report) is slated to report fourth-quarter 2024 results on Feb. 19, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.32 per share.

OGS’ long-term earnings growth rate is 3.94%. The Zacks Consensus Estimate for fourth-quarter sales is pinned at $660.94 million.

 

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