• National Fuel Reports Third Quarter Earnings and Announces Preliminary Guidance for Fiscal 2022

    Источник: Nasdaq GlobeNewswire / 05 авг 2021 16:45:01   America/New_York

    WILLIAMSVILLE, N.Y., Aug. 05, 2021 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the third quarter of its 2021 fiscal year and for the nine months ended June 30, 2021.

    FISCAL 2021 THIRD QUARTER SUMMARY

    • GAAP net income of $86.5 million, or $0.94 per share, compared to $41.3 million, or $0.47 per share, in the prior year.
    • Adjusted operating results of $85.7 million, or $0.93 per share, compared to $50.0 million, or $0.57 per share, in the prior year (see non-GAAP reconciliation on page 2).
    • Adjusted EBITDA of $234.2 million, an increase of 36%, compared to $171.9 million in the prior year (see non-GAAP reconciliation on page 24).
    • Pipeline & Storage segment Adjusted EBITDA of $53.1 million, an increase of 5% from the prior year.
    • Gathering segment Adjusted EBITDA of $39.9 million, an increase of 43% from the prior year.
    • E&P segment Adjusted EBITDA of $116.1 million, an increase of 79% from the prior year.
    • E&P segment net production of 83.1 Bcfe, an increase of 27.1 Bcfe, or 48%, from the prior year.
    • E&P segment cash operating costs (combined G&A expenses, LOE expense, other operation and maintenance expense, and property, franchise, and other taxes), of $1.13 per Mcfe, a 5% decrease from the prior year.
    • Average realized natural gas prices of $2.20 per Mcf, an increase $0.28 per Mcf from the prior year.
    • Average realized oil prices of $59.22 per Bbl, an increase of $8.52 per Bbl from the prior year.
    • Company is increasing its fiscal 2021 earnings guidance to a range of $4.05 to $4.15 per share, an increase of $0.15 at the midpoint, excluding items impacting comparability (see Guidance Summary on page 8).
    • Company is initiating its fiscal 2022 earnings guidance with a range of $4.40 to $4.80 per share, an increase of 12% from the midpoint of the Company's updated fiscal 2021 guidance (see Guidance Summary on page 8).

    MANAGEMENT COMMENTS

    David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “National Fuel had a strong third quarter, with adjusted operating results per share increasing more than 60% from the prior year. As we look to fiscal 2022, the Company is poised for continued earnings growth, as evidenced by our greater than 10% projected increase in earnings per share, driven by the significantly improved outlook for natural gas prices and the expected completion of our FM100 expansion and modernization project in late calendar 2021. Once complete, this project, in addition to providing long-term system integrity and reliability benefits for our existing pipeline transportation customers, puts National Fuel on a pathway to generating significant annual free cash flow across each of our major businesses, allowing the Company to maintain the strength of its balance sheet while continuing to return cash to shareholders in the years ahead.”

    RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS

            
     Three Months Ended  Nine Months Ended
      June 30,  June 30,
    (in thousands except per share amounts)2021 2020 2021 2020
    Reported GAAP Earnings$86,475  $41,250  $276,685  $21,773 
    Items impacting comparability:       
    Impairment of oil and gas properties (E&P)—  18,236  76,152  195,997 
    Tax impact of impairment of oil and gas properties—  (4,986) (20,980) (53,489)
    Gain on sale of timber properties (Corporate / All Other)—  —  (51,066) — 
    Tax impact of gain on sale of timber properties—  —  14,069  — 
    Premium paid on early redemption of debt—  —  15,715  — 
    Tax impact of premium paid on early redemption of debt—  —  (4,321) — 
    Deferred tax valuation allowance—  —  —  56,770 
    Unrealized (gain) loss on other investments (Corporate / All Other)(1,025) (5,639) (575) 794 
    Tax impact of unrealized (gain) loss on other investments215  1,184  120  (167)
    Adjusted Operating Results$85,665  $50,045  $305,799  $221,678 
            
    Reported GAAP Earnings Per Share$0.94  $0.47  $3.02  $0.25 
    Items impacting comparability:       
    Impairment of oil and gas properties, net of tax (E&P)—  0.15  0.60  1.63 
    Gain on sale of timber properties, net of tax (Corporate / All Other)—  —  (0.40) — 
    Premium paid on early redemption of debt, net of tax—  —  0.12  — 
    Deferred tax valuation allowance—  —  —  0.65 
    Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)(0.01) (0.05) —  0.01 
    Adjusted Operating Results Per Share$0.93  $0.57  $3.34  $2.54 

    DISCUSSION OF GUIDANCE UPDATE

    National Fuel is revising its fiscal 2021 earnings guidance to reflect the results of the third quarter, along with updated assumptions for the balance of the year, as detailed on page 8. The Company is now projecting that earnings, excluding items impacting comparability, will be within the range of $4.05 to $4.15 per share, an increase of $0.15 per share from the midpoint of the Company’s prior guidance range.

    For the balance of fiscal 2021, Seneca currently has price certainty on approximately 79% of its expected remaining Appalachian production, utilizing a combination of physical firm sales contracts and financial hedges, including swaps, and floor protection on an additional approximately 9% of its expected remaining Appalachian production via no-cost collars. Additionally, Seneca has financial hedges in place for approximately 72% of its expected remaining oil production in fiscal 2021.

    The Company is also initiating preliminary guidance for fiscal 2022 with earnings projected to be within a range of $4.40 to $4.80 per share, or $4.60 per share at the midpoint of the range, an increase of 12% from the midpoint of the fiscal 2021 guidance range. The anticipated increase in earnings is being driven largely by higher anticipated commodity price realizations and expected late calendar 2021 completion of the Company's FERC-regulated FM100 expansion and modernization project. This project is expected to generate approximately $50 million of annualized revenue and 330,000 Dekatherms per day of new firm transportation capacity. This incremental pipeline capacity provides a key outlet for Seneca’s natural gas production and is the primary driver behind the forecasted growth in natural gas production and the associated impact on Gathering revenues.

    With this incremental transportation capacity, Seneca’s fiscal 2022 net production is increasing to an expected range of 335 to 365 Bcfe, an increase of 25 Bcfe versus fiscal 2021 at the midpoint of the respective guidance ranges. In addition, the Company anticipates its natural gas price realizations after hedging to increase by approximately $0.10 per Mcf from its estimated fiscal 2021 realizations, driven in large part by higher expected NYMEX and regional spot prices for natural gas. Overall, Seneca has firm sales contracts in place for approximately 93% of its expected fiscal 2022 Appalachian production at the midpoint of the Company's production guidance range. The Company is also well positioned with respect to potential swings in natural gas prices in fiscal 2022, with financial hedges on approximately 76% of Seneca’s projected fiscal 2022 Appalachian natural gas production.

    The Company’s consolidated capital expenditures in fiscal 2022 are expected to be in a range of $640 million to $760 million, a decrease of $90 million versus the midpoint of its fiscal 2021 guidance. The primary drivers are a significant decrease in Pipeline and Storage segment capital as a result of the expected completion of its FM100 project, partially offset by a higher average activity level in the Exploration and Production segment. The Company added a second drilling rig in the second quarter of fiscal 2021 and expects to maintain its current two-rig program for the entirety of fiscal 2022 along with elevated levels of completion activity designed to efficiently utilize the entirety of Seneca’s new transportation capacity over the course of the fiscal year.

    Additional details on the Company's updated forecast assumptions and business segment guidance for fiscal 2021 and fiscal 2022 are outlined in the table on page 8.

    DISCUSSION OF THIRD QUARTER RESULTS BY SEGMENT

    The following earnings discussion of each operating segment for the quarter ended June 30, 2021 is summarized in a tabular form on pages 9 and 10 of this report (earnings drivers for the nine months ended June 30, 2021 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)2021 2020 Variance
    GAAP Earnings$39,015  $(6,434) $45,449 
    Impairment of oil and gas properties, net of tax—  13,250  (13,250)
    Adjusted Operating Results$39,015  $6,816  $32,199 
          
    Adjusted EBITDA$116,052  $64,780  $51,272 

    Seneca’s third quarter GAAP earnings increased $45.4 million versus the prior year, which includes the impact of a non-cash ceiling test impairment charge of $13.2 million (after-tax) recorded in the prior year's third quarter. Excluding this item, Seneca’s third quarter earnings increased $32.2 million primarily due to the positive impacts of higher natural gas production, higher realized natural gas and crude oil prices as well as lower per unit operating costs, partially offset by lower crude oil production and a higher effective income tax rate.

    Seneca produced 83.1 Bcfe during the third quarter, an increase of 27.1 Bcfe, or 48%, from the prior year. The improvement was primarily from a 27.3 Bcf increase in natural gas production, largely related to the Company's fourth quarter fiscal 2020 acquisition of Appalachian upstream assets, as well as production growth from Seneca's other core development areas, partially offset by a 4% decrease, or 26 MBbls, of crude oil production in California largely due to natural declines. Approximately 21.6 Bcf of the natural gas production increase came from the Eastern Development Area ("EDA"), with the remainder attributable to Seneca’s Western Development Area ("WDA").

    Seneca's average realized natural gas price, after the impact of hedging and transportation costs, was $2.20 per Mcf, an increase of $0.28 per Mcf from the prior year. This increase was primarily due to higher NYMEX prices and higher spot prices at local sales points in Pennsylvania. Seneca's average realized oil price, after the impact of hedging, was $59.22 per Bbl, an increase of $8.52 per Bbl compared to the prior year. The improvement in oil price realizations was primarily due to stronger commodity pricing.

    Lease operating and transportation (“LOE”) expense increased $20.6 million primarily due to higher transportation costs in Appalachia from increased production, as well as higher well repairs, workover activity and steam fuel costs in California. LOE expense includes $48.1 million in intercompany expense for gathering and compression services used to connect Seneca’s Marcellus and Utica production to sales points along interstate pipelines. DD&A expense increased $6.5 million due largely to higher natural gas production, partially offset by the impact of ceiling test impairments recorded during fiscal 2020. Seneca's general and administrative ("G&A") expense increased $2.2 million due primarily to higher personnel costs and technology-related expenses. Other taxes increased $3.5 million primarily due to higher impact fee accruals in Pennsylvania, driven by higher expected NYMEX natural gas prices for calendar 2021. The increase in Seneca's effective income tax rate was primarily driven by a higher effective state income tax rate as a result of the Company's Appalachian acquisition that caused a change in the mix of earnings between state jurisdictions.

    On a unit of production basis, Seneca's combined general and administrative ("G&A"), LOE, other operation and maintenance ("O&M") expense, and Property, Franchise, and Other Taxes decreased $0.06 per Mcfe, or 5%, during the quarter.

    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)2021 2020 Variance
    GAAP Earnings$21,948  $22,623  $(675)
          
    Adjusted EBITDA$53,086  $50,511  $2,575 

    The Pipeline and Storage segment’s third quarter GAAP earnings decreased $0.7 million versus the prior year as higher operating revenues were more than offset by the negative impacts of higher O&M expense, higher DD&A expense and higher interest expense. The increase in operating revenues of $6.3 million, or 8%, was largely due to new demand charges for transportation service from the Company's Empire North expansion project, which was placed in service near the end of the fourth quarter of fiscal 2020, combined with an increase in revenues from a surcharge for pipeline safety and greenhouse gas regulatory costs, which went into effect in November 2020 in accordance with Supply Corporation's fiscal 2020 rate case settlement. Additionally, the Company recognized increased revenue from a surcharge mechanism for power costs related to electric motor drive compression on the Empire North project, for which offsetting O&M expense was recognized during the quarter. These positive items were partially offset by a modest decrease in transportation revenue from miscellaneous contract revisions. O&M expense increased $3.7 million primarily due to higher pipeline integrity costs, higher compressor and facility maintenance costs, and higher personnel costs, as well as the aforementioned Empire power costs. The increase in DD&A expense of $1.3 million was primarily attributable to incremental depreciation from the Empire North expansion project. The increase in interest expense of $2.3 million was primarily driven by additional long-term borrowings from the Company's long-term debt issuance in June 2020.

    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 primarily delivers Seneca’s gross Appalachian production to the interstate pipeline system.

     Three Months Ended
     June 30,
    (in thousands)2021 2020 Variance
    GAAP Earnings$20,427  $15,239  $5,188
          
    Adjusted EBITDA$39,929  $27,844  $12,085

    The Gathering segment’s third quarter GAAP earnings increased $5.2 million versus the prior year. The earnings increase was primarily driven by higher operating revenues, which was partially offset by higher DD&A expense, higher O&M expense, higher interest expense and a higher effective income tax rate. Operating revenues increased $15.4 million, or 46%, primarily due to increased gathering throughput resulting from the Company's Appalachian acquisition in the fourth quarter of fiscal 2020 and from new Marcellus and Utica wells that were brought on-line. The increase in DD&A expense of $2.9 million was primarily attributable to incremental depreciation expense related to the Company's Appalachian acquisition, as well as higher average depreciable plant in service compared to the prior year. Compression leasing expenses, as well as higher facility, personnel and contractor costs, all associated with the Appalachian acquisition, were primarily responsible for the $3.3 million increase in O&M expense. Interest expense increased by $1.7 million from the prior year, primarily driven by additional long-term borrowings from the Company's long-term debt issuances in June 2020 and February 2021. The increase in the Gathering segment's effective income tax rate was primarily driven by a higher effective state income tax rate as a result of the Company's Appalachian acquisition that caused a change in the mix of earnings between state jurisdictions.

    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)2021 2020 Variance
    GAAP Earnings$4,841  $6,254  $(1,413)
          
    Adjusted EBITDA$29,431  $30,214  $(783)

    The Utility segment’s third quarter GAAP earnings decreased $1.4 million versus the prior year primarily due to lower customer margins (operating revenues less purchased gas sold) and higher DD&A expense. The decline in customer margin was due primarily to warmer weather in Distribution's Pennsylvania service territory that resulted in a decrease in customer usage, partially offset by higher revenues earned through the Company's system modernization tracking mechanism in its New York service territory. Weather in Distribution's Pennsylvania service territory was 20% warmer on average than last year. The impact of weather variations on earnings for the quarter in Distribution's New York service territory is largely mitigated by that jurisdiction's weather normalization clause. The $0.6 million increase in DD&A expense was primarily attributable to higher average depreciable plant in service compared to the prior year.

    Corporate and All Other

    The Company’s operations that are included in Corporate and All Other generated combined earnings of $0.2 million in the current year third quarter, which was $3.4 million lower than the combined earnings of $3.6 million in the prior-year third quarter. The decrease in earnings was primarily driven by lower unrealized gains on investment securities quarter over quarter.

    EARNINGS TELECONFERENCE

    The Company will host a conference call on Friday, August 6, 2021, at 11 a.m. Eastern Time to discuss this announcement. Pre-registration is required to access the teleconference by phone in a listen-only mode by following this link: http://www.directeventreg.com/registration/event/1368175. To access the webcast, visit the Events Calendar under the News & Events page on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay of the conference call will be available approximately two hours following the teleconference at the same website link and by phone (toll-free) at 800-585-8367 using conference ID number “1368175”. Both the webcast and conference call replay will be available until the close of business on Friday, August 13, 2021.

    National Fuel is an integrated energy company reporting financial results for four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. 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; 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; the length and severity of the ongoing COVID-19 pandemic, including its impacts across our businesses on demand, operations, global supply chains and liquidity; 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; changes in the price of natural gas or oil; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; delays or changes in costs or plans with respect to Company projects or related projects of other companies, including disruptions due to the COVID-19 pandemic, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; the Company's ability to complete planned strategic transactions; the Company's ability to successfully integrate acquired assets and achieve expected cost synergies; 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; the impact of information technology disruptions, cybersecurity or data security breaches; 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; 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; 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 page 2, the Company is revising its earnings guidance for fiscal 2021 and initiating preliminary guidance for fiscal 2022. Additional details on the Company's forecast assumptions and business segment guidance for fiscal 2021 and fiscal 2022 are outlined in the table below.

    The revised earnings guidance range does not include the impact of certain items that impacted the comparability of earnings during the nine months ended June 30, 2021, including: (1) the after-tax impairment of oil and gas properties, which reduced earnings by $0.60 per share; (2) the after-tax gain on sale of timber properties, which increased earnings by $0.40 per share; and (3) the after-tax premium paid on early redemption of debt, which reduced earnings by $0.12 per share. While the Company expects to record certain adjustments to unrealized gain or loss on investments during the three months ending September 30, 2021, 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 2021 Guidance Preliminary FY 2022 Guidance
    Consolidated Earnings per Share, excluding items impacting comparability$4.05 to $4.15 $4.40 to $4.80
    Consolidated Effective Tax Rate~ 26% ~ 25-26%
        
    Capital Expenditures (Millions)   
    Exploration and Production$370 - $390 $400 - $450
    Pipeline and Storage$250 - $300 $100 - $150
    Gathering$35 - $45 $50 - $60
    Utility$90 - $100 $90 - $100
    Consolidated Capital Expenditures$745 - $835 $640 - $760
        
    Exploration & Production Segment Guidance*   
        
    Commodity Price Assumptions   
    NYMEX natural gas price$3.75 /MMBtu $3.50 /MMBtu
    Appalachian basin spot price (winter | summer)$2.75 /MMBtu $2.85 /MMBtu | $2.25 /MMBtu
    NYMEX (WTI) crude oil price$70.00 /Bbl $65.00 /Bbl
    California oil price premium (% of WTI)96% 96%
        
    Production (Bcfe)320 to 330 335 to 365
        
    E&P Operating Costs ($/Mcfe)   
    LOE$0.81 - $0.83 $0.82 - $0.85
    G&A$0.20 - $0.22 $0.19 - $0.21
    DD&A$0.55 - $0.57 $0.59 - $0.62
        
    Other Business Segment Guidance (Millions)   
    Gathering Segment Revenues$190 - $195 $200 - $225
    Pipeline and Storage Segment Revenues$340 - $345 $360 - $380

    * Fiscal 2021 commodity price assumptions are for the remaining 3 months of the fiscal year.

    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
    QUARTER ENDED JUNE 30, 2021
    (Unaudited)
                
     Upstream Midstream Downstream    
                
     Exploration & Pipeline &     Corporate /  
    (Thousands of Dollars)Production Storage Gathering Utility All Other Consolidated*
                
    Third quarter 2020 GAAP earnings$(6,434) $22,623  $15,239  $6,254  $3,568  $41,250 
    Items impacting comparability:           
    Impairment of oil and gas properties18,236          18,236 
    Tax impact of impairment of oil and gas properties(4,986)         (4,986)
    Unrealized (gain) loss on other investments        (5,639) (5,639)
    Tax impact of unrealized (gain) loss on other investments        1,184  1,184 
    Third quarter 2020 adjusted operating results6,816  22,623  15,239  6,254  (887) 50,045 
    Drivers of adjusted operating results**           
    Upstream Revenues           
    Higher (lower) natural gas production41,361          41,361 
    Higher (lower) crude oil production(1,042)         (1,042)
    Higher (lower) realized natural gas prices, after hedging17,437          17,437 
    Higher (lower) realized crude oil prices, after hedging3,760          3,760 
    Midstream and All Other Revenues           
    Higher (lower) operating revenues  4,938  12,132    (801) 16,269 
    Downstream Margins***           
    Impact of usage and weather      (796)   (796)
    System modernization tracker revenues      369    369 
    Regulatory revenue adjustments      (149)   (149)
    Higher (lower) energy marketing margins        (1,246) (1,246)
    Operating Expenses           
    Lower (higher) lease operating and transportation expenses(16,235)         (16,235)
    Lower (higher) operating expenses(2,372) (2,888) (2,585)     (7,845)
    Lower (higher) property, franchise and other taxes(2,751)         (2,751)
    Lower (higher) depreciation / depletion(5,146) (993) (2,286) (510)   (8,935)
    Other Income (Expense)           
    (Higher) lower other deductions      (573) 719  146 
    (Higher) lower interest expense1,829  (1,815) (1,358)   (554) (1,898)
    Income Taxes           
    Lower (higher) income tax expense / effective tax rate(4,975) 177  (693) 501  2,054  (2,936)
    All other / rounding333  (94) (22) (255) 149  111 
    Third quarter 2021 adjusted operating results39,015  21,948  20,427  4,841  (566) 85,665 
    Items impacting comparability:           
    Unrealized gain (loss) on other investments        1,025  1,025 
    Tax impact of unrealized gain (loss) on other investments        (215) (215)
    Third quarter 2021 GAAP earnings$39,015  $21,948  $20,427  $4,841  $244  $86,475 
                
    * Amounts do not reflect intercompany eliminations.
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** 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, 2021
    (Unaudited)
                
     Upstream Midstream Downstream     
                
     Exploration & Pipeline &     Corporate /  
     Production Storage Gathering Utility All Other Consolidated*
                
    Third quarter 2020 GAAP earnings per share$(0.07) $0.26  $0.17  $0.07  $0.04  $0.47 
    Items impacting comparability:           
    Impairment of oil and gas properties, net of tax0.15          0.15 
    Unrealized (gain) loss on other investments, net of tax        (0.05) (0.05)
    Third quarter 2020 adjusted operating results per share0.08  0.26  0.17  0.07  (0.01) 0.57 
    Drivers of adjusted operating results**           
    Upstream Revenues           
    Higher (lower) natural gas production0.45          0.45 
    Higher (lower) crude oil production(0.01)         (0.01)
    Higher (lower) realized natural gas prices, after hedging0.19          0.19 
    Higher (lower) realized crude oil prices, after hedging0.04          0.04 
    Midstream and All Other Revenues           
    Higher (lower) operating revenues  0.05  0.13    (0.01) 0.17 
    Downstream Margins***           
    Impact of usage and weather      (0.01)   (0.01)
    System modernization tracker revenues      —    — 
    Regulatory revenue adjustments      —    — 
    Higher (lower) energy marketing margins        (0.01) (0.01)
    Operating Expenses           
    Lower (higher) lease operating and transportation expenses(0.18)         (0.18)
    Lower (higher) operating expenses(0.03) (0.03) (0.03)     (0.09)
    Lower (higher) property, franchise and other taxes(0.03)         (0.03)
    Lower (higher) depreciation / depletion(0.06) (0.01) (0.02) (0.01)   (0.10)
    Other Income (Expense)           
    (Higher) lower other deductions      (0.01) 0.01  — 
    (Higher) lower interest expense0.02  (0.02) (0.01)   (0.01) (0.02)
    Income Taxes           
    Lower (higher) income tax expense / effective tax rate(0.05) —  (0.01) 0.01  0.02  (0.03)
    Impact of additional shares—  (0.01) (0.01) —  —  (0.02)
    All other / rounding0.01  —  —  —  —  0.01 
    Third quarter 2021 adjusted operating results per share0.43  0.24  0.22  0.05  (0.01) 0.93 
    Items impacting comparability:           
    Unrealized gain (loss) on other investments, net of tax        0.01  0.01 
    Third quarter 2021 GAAP earnings per share$0.43  $0.24  $0.22  $0.05  $—  $0.94 
                
    * Amounts do not reflect intercompany eliminations.
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** 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, 2021
    (Unaudited)
                
     Upstream Midstream Downstream    
                
     Exploration & Pipeline &     Corporate /  
    (Thousands of Dollars)Production Storage Gathering Utility All Other Consolidated*
                
    Nine months ended June 30, 2020 GAAP earnings$(157,733) $62,815  $51,081  $64,335  $1,275  $21,773 
    Items impacting comparability:           
    Impairment of oil and gas properties195,997          195,997 
    Tax impact of impairment of oil and gas properties(53,489)         (53,489)
    Deferred tax valuation allowance60,463    (3,769)   76  56,770 
    Unrealized (gain) loss on other investments        794  794 
    Tax impact of unrealized (gain) loss on other investments        (167) (167)
    Nine months ended June 30, 2020 adjusted operating results45,238  62,815  47,312  64,335  1,978  221,678 
    Drivers of adjusted operating results**           
    Upstream Revenues           
    Higher (lower) natural gas production124,819          124,819 
    Higher (lower) crude oil production(4,923)         (4,923)
    Higher (lower) realized natural gas prices, after hedging15,081          15,081 
    Higher (lower) realized crude oil prices, after hedging(2,590)         (2,590)
    Midstream and All Other Revenues           
    Higher (lower) operating revenues  23,111  33,632    (1,925) 54,818 
    Downstream Margins***           
    Impact of usage and weather      (476)   (476)
    System modernization tracker revenues      2,851    2,851 
    Regulatory revenue adjustments      (1,167)   (1,167)
    Higher (lower) energy marketing margins        (5,914) (5,914)
    Operating Expenses           
    Lower (higher) lease operating and transportation expenses(39,981)         (39,981)
    Lower (higher) operating expenses(4,891) (1,266) (6,528) (3,201) 1,902  (13,984)
    Lower (higher) property, franchise and other taxes(3,456)         (3,456)
    Lower (higher) depreciation / depletion(6,873) (5,919) (6,697) (1,240) 529  (20,200)
    Other Income (Expense)           
    (Higher) lower other deductions  (1,038)   (446) 2,289  805 
    (Higher) lower interest expense  (7,360) (4,482)   (1,621) (13,463)
    Income Taxes           
    Lower (higher) income tax expense / effective tax rate(10,584) 634  (927) (665) 3,287  (8,255)
    All other / rounding255  83  51  (69) (164) 156 
    Nine months ended June 30, 2021 adjusted operating results112,095  71,060  62,361  59,922  361  305,799 
    Items impacting comparability:           
    Impairment of oil and gas properties(76,152)         (76,152)
    Tax impact of impairment of oil and gas properties20,980          20,980 
    Gain on sale of timber properties        51,066  51,066 
    Tax impact of gain on sale of timber properties        (14,069) (14,069)
    Premium paid on early redemption of debt(14,772)   (943)     (15,715)
    Tax impact of premium paid on early redemption of debt4,062    259      4,321 
    Unrealized gain (loss) on other investments        575  575 
    Tax impact of unrealized gain (loss) on other investments        (120) (120)
    Nine months ended June 30, 2021 GAAP earnings$46,213  $71,060  $61,677  $59,922  $37,813  $276,685 
                
    * Amounts do not reflect intercompany eliminations.
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** 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, 2021
    (Unaudited)
                
     Upstream Midstream Downstream    
                
     Exploration & Pipeline &     Corporate /  
     Production Storage Gathering Utility All Other Consolidated*
    Nine months ended June 30, 2020 GAAP earnings per share$(1.81) $0.72  $0.58  $0.74  $0.02  $0.25 
    Items impacting comparability:           
    Impairment of oil and gas properties, net of tax1.63          1.63 
    Deferred tax valuation allowance0.69    (0.04)   —  0.65 
    Unrealized (gain) loss on other investments, net of tax        0.01  0.01 
    Rounding0.01        (0.01) — 
    Nine months ended June 30, 2020 adjusted operating results per share0.52  0.72  0.54  0.74  0.02  2.54 
    Drivers of adjusted operating results**           
    Upstream Revenues           
    Higher (lower) natural gas production1.36          1.36 
    Higher (lower) crude oil production(0.05)         (0.05)
    Higher (lower) realized natural gas prices, after hedging0.16          0.16 
    Higher (lower) realized crude oil prices, after hedging(0.03)         (0.03)
    Midstream and All Other Revenues           
    Higher (lower) operating revenues  0.25  0.37    (0.02) 0.60 
    Downstream Margins***           
    Impact of usage and weather      (0.01)   (0.01)
    System modernization tracker revenues      0.03    0.03 
    Regulatory revenue adjustments      (0.01)   (0.01)
    Higher (lower) energy marketing margins        (0.06) (0.06)
    Operating Expenses           
    Lower (higher) lease operating and transportation expenses(0.44)         (0.44)
    Lower (higher) operating expenses(0.05) (0.01) (0.07) (0.03) 0.02  (0.14)
    Lower (higher) property, franchise and other taxes(0.04)         (0.04)
    Lower (higher) depreciation / depletion(0.07) (0.06) (0.07) (0.01) 0.01  (0.20)
    Other Income (Expense)           
    (Higher) lower other deductions  (0.01)   —  0.02  0.01 
    (Higher) lower interest expense  (0.08) (0.05)   (0.02) (0.15)
    Income Taxes           
    Lower (higher) income tax expense / effective tax rate(0.12) 0.01  (0.01) (0.01) 0.04  (0.09)
    Impact of additional shares(0.02) (0.03) (0.03) (0.04) —  (0.12)
    All other / rounding—  (0.01) —  (0.01) —  (0.02)
    Nine months ended June 30, 2021 adjusted operating results per share1.22  0.78  0.68  0.65  0.01  3.34 
    Items impacting comparability:           
    Impairment of oil and gas properties, net of tax(0.60)         (0.60)
    Gain on sale of timber properties, net of tax        0.40  0.40 
    Premium paid on early redemption of debt, net of tax(0.12)   —      (0.12)
    Unrealized gain (loss) on other investments, net of tax        —  — 
    Rounding    (0.01)   0.01  — 
    Nine months ended June 30, 2021 GAAP earnings per share$0.50  $0.78  $0.67  $0.65  $0.42  $3.02 
                
    * Amounts do not reflect intercompany eliminations.           
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** 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 OPERATIONS2021 2020 2021 2020
    Operating Revenues:       
    Utility and Energy Marketing Revenues$126,933  $139,661  $587,247  $650,320 
    Exploration and Production and Other Revenues209,618  132,338  621,933  456,073 
    Pipeline and Storage and Gathering Revenues57,846  51,020  177,491  151,908 
     394,397  323,019  1,386,671  1,258,301 
    Operating Expenses:       
    Purchased Gas18,737  29,121  177,018  239,663 
    Operation and Maintenance:       
    Utility and Energy Marketing42,577  43,950  139,521  138,931 
    Exploration and Production and Other43,112  32,404  127,033  109,056 
    Pipeline and Storage and Gathering31,239  24,298  87,471  77,488 
    Property, Franchise and Other Taxes24,492  21,381  71,259  67,268 
    Depreciation, Depletion and Amortization84,170  73,232  251,632  226,062 
    Impairment of Oil and Gas Producing Properties—  18,236  76,152  195,997 
     244,327  242,622  930,086  1,054,465 
    Gain on Sale of Timber Properties—  —  51,066  — 
    Operating Income150,070  80,397  507,651  203,836 
            
    Other Income (Expense):       
    Other Income (Deductions)(2,028) 2,547  (15,078) (17,971)
    Interest Expense on Long-Term Debt(30,220) (27,140) (111,296) (77,853)
    Other Interest Expense(1,012) (1,420) (4,630) (4,863)
            
    Income Before Income Taxes116,810  54,384  376,647  103,149 
            
    Income Tax Expense30,335  13,134  99,962  81,376 
            
    Net Income Available for Common Stock$86,475  $41,250  $276,685  $21,773 
            
    Earnings Per Common Share       
    Basic$0.95  $0.47  $3.04  $0.25 
    Diluted$0.94  $0.47  $3.02  $0.25 
            
    Weighted Average Common Shares:       
    Used in Basic Calculation91,172,683  87,966,289  91,113,973  86,966,448 
    Used in Diluted Calculation91,762,898  88,323,699  91,642,849  87,346,362 


    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Unaudited)
      
     June 30, September 30,
    (Thousands of Dollars)2021 2020
    ASSETS   
    Property, Plant and Equipment$12,834,695  $12,351,852 
    Less - Accumulated Depreciation, Depletion and Amortization 6,649,038   6,353,785 
    Net Property, Plant and Equipment 6,185,657   5,998,067 
    Assets Held for Sale, Net —   53,424 
    Current Assets:   
    Cash and Temporary Cash Investments 118,012   20,541 
    Hedging Collateral Deposits 1,710   — 
    Receivables - Net 188,863   143,583 
    Unbilled Revenue 12,812   17,302 
    Gas Stored Underground 12,451   33,338 
    Materials, Supplies and Emission Allowances 53,740   51,877 
    Other Current Assets 51,969   47,557 
    Total Current Assets 439,557   314,198 
    Other Assets:   
    Recoverable Future Taxes 118,883   118,310 
    Unamortized Debt Expense 11,016   12,297 
    Other Regulatory Assets 145,632   156,106 
    Deferred Charges 58,807   67,131 
    Other Investments 149,250   154,502 
    Goodwill 5,476   5,476 
    Prepaid Post-Retirement Benefit Costs 93,627   76,035 
    Fair Value of Derivative Financial Instruments 770   9,308 
    Other —   81 
    Total Other Assets 583,461   599,246 
    Total Assets$7,208,675  $6,964,935 
    CAPITALIZATION AND LIABILITIES   
    Capitalization:   
    Comprehensive Shareholders' Equity   
    Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and   
    Outstanding - 91,172,701 Shares and 90,954,696 Shares, Respectively$91,173  $90,955 
    Paid in Capital 1,012,703   1,004,158 
    Earnings Reinvested in the Business 1,145,700   991,630 
    Accumulated Other Comprehensive Loss (238,462)  (114,757)
    Total Comprehensive Shareholders' Equity 2,011,114   1,971,986 
    Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs 2,627,860   2,629,576 
    Total Capitalization 4,638,974   4,601,562 
    Current and Accrued Liabilities:   
    Notes Payable to Banks and Commercial Paper —   30,000 
    Accounts Payable 113,470   134,126 
    Amounts Payable to Customers 7,193   10,788 
    Dividends Payable 41,484   40,475 
    Interest Payable on Long-Term Debt 45,304   27,521 
    Customer Advances —   15,319 
    Customer Security Deposits 19,272   17,199 
    Other Accruals and Current Liabilities 168,378   140,176 
    Fair Value of Derivative Financial Instruments 205,501   43,969 
    Total Current and Accrued Liabilities 600,602   459,573 
    Deferred Credits:   
    Deferred Income Taxes 742,638   696,054 
    Taxes Refundable to Customers 353,736   357,508 
    Cost of Removal Regulatory Liability 241,377   230,079 
    Other Regulatory Liabilities 182,430   161,573 
    Pension and Other Post-Retirement Liabilities 117,291   127,181 
    Asset Retirement Obligations 191,853   192,228 
    Other Deferred Credits 139,774   139,177 
    Total Deferred Credits 1,969,099   1,903,800 
    Commitments and Contingencies —   — 
    Total Capitalization and Liabilities$7,208,675  $6,964,935 


        
        
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
     Nine Months Ended
     June 30,
    (Thousands of Dollars)2021 2020
        
    Operating Activities:   
    Net Income Available for Common Stock$276,685  $21,773 
    Adjustments to Reconcile Net Income to Net Cash
    Provided by Operating Activities:    		   
    Gain on Sale of Timber Properties(51,066) — 
    Impairment of Oil and Gas Producing Properties76,152  195,997 
    Depreciation, Depletion and Amortization251,632  226,062 
    Deferred Income Taxes89,277  116,332 
    Premium Paid on Early Redemption of Debt15,715  — 
    Stock-Based Compensation12,296  9,716 
    Other7,795  5,645 
    Change in:   
    Receivables and Unbilled Revenue(40,733) 4,045 
    Gas Stored Underground and Materials, Supplies and Emission Allowances19,024  11,597 
    Unrecovered Purchased Gas Costs—  2,246 
    Other Current Assets(4,282) 49,312 
    Accounts Payable7,474  (13,166)
    Amounts Payable to Customers(3,595) 14,755 
    Customer Advances(15,319) (12,483)
    Customer Security Deposits2,073  (984)
    Other Accruals and Current Liabilities23,154  6,774 
    Other Assets5,839  (18,215)
    Other Liabilities(311) 4,464 
    Net Cash Provided by Operating Activities$671,810  $623,870 
        
    Investing Activities:   
    Capital Expenditures$(512,775) $(551,004)
    Net Proceeds from Sale of Timber Properties104,582  — 
    Acquisition of Upstream Assets and Midstream Gathering Assets—  (27,050)
    Other11,223  4,126 
    Net Cash Used in Investing Activities$(396,970) $(573,928)
        
    Financing Activities:   
    Changes in Notes Payable to Banks and Commercial Paper$(30,000) $(55,200)
    Reduction of Long-Term Debt(515,715) — 
    Dividends Paid on Common Stock(121,606) (112,851)
    Net Proceeds From Issuance of Long-Term Debt495,267  493,108 
    Net Proceeds from Issuance (Repurchase) of Common Stock(3,605) 161,704 
    Net Cash Provided by (Used in) Financing Activities$(175,659) $486,761 
        
    Net Increase in Cash, Cash Equivalents, and Restricted Cash99,181  536,703 
    Cash, Cash Equivalents, and Restricted Cash at Beginning of Period20,541  27,260 
    Cash, Cash Equivalents, and Restricted Cash at June 30$119,722  $563,963 


              
    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 SEGMENT2021 2020 Variance 20212020Variance
    Total Operating Revenues$209,535  $131,228  $78,307  $621,116  $452,728  $168,388 
    Operating Expenses:         
    Operation and Maintenance:         
    General and Administrative Expense16,165  13,968  2,197  51,017  46,777  4,240 
    Lease Operating and Transportation Expense66,708  46,157  20,551  199,296  148,687  50,609 
    All Other Operation and Maintenance Expense3,757  2,952  805  10,944  8,994  1,950 
    Property, Franchise and Other Taxes6,853  3,371  3,482  15,918  11,543  4,375 
    Depreciation, Depletion and Amortization45,886  39,372  6,514  137,356  128,656  8,700 
    Impairment of Oil and Gas Producing Properties—  18,236  (18,236) 76,152  195,997  (119,845)
     139,369  124,056  15,313  490,683  540,654  (49,971)
              
    Operating Income (Loss)70,166  7,172  62,994  130,433  (87,926) 218,359 
              
    Other Income (Expense):         
    Non-Service Pension and Post-Retirement Benefit Costs(289) (395) 106  (860) (1,185) 325 
    Interest and Other Income18  142  (124) 176  583  (407)
    Interest Expense on Long-Term Debt—  —  —  (15,119) —  (15,119)
    Interest Expense(12,008) (14,323) 2,315  (42,601) (42,543) (58)
    Income (Loss) Before Income Taxes57,887  (7,404) 65,291  72,029  (131,071) 203,100 
    Income Tax Expense (Benefit)18,872  (970) 19,842  25,816  26,662  (846)
    Net Income (Loss)$39,015  $(6,434) $45,449  $46,213  $(157,733) $203,946 
    Net Income (Loss) Per Share (Diluted)$0.43  $(0.07) $0.50  $0.50  $(1.81) $2.31 
              


    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 SEGMENT2021 2020 Variance 20212020Variance
    Revenues from External Customers$57,258  $51,020  $6,238  $175,881  $151,908  $23,973 
    Intersegment Revenues26,805  26,793  12  82,651  77,370  5,281 
    Total Operating Revenues84,063  77,813  6,250  258,532  229,278  29,254 
    Operating Expenses:         
    Purchased Gas(11) 11  (22) 219  1  218 
    Operation and Maintenance22,918  19,262  3,656  63,809  62,207  1,602 
    Property, Franchise and Other Taxes8,070  8,029  41  24,713  24,515  198 
    Depreciation, Depletion and Amortization15,609  14,352  1,257  46,806  39,313  7,493 
     46,586  41,654  4,932  135,547  126,036  9,511 
              
    Operating Income37,477  36,159  1,318  122,985  103,242  19,743 
              
    Other Income (Expense):         
    Non-Service Pension and Post-Retirement Benefit (Costs) Credit125  (174) 299  376  (523) 899 
    Interest and Other Income1,364  1,763  (399) 3,159  4,851  (1,692)
    Interest Expense(10,070) (7,773) (2,297) (31,353) (22,037) (9,316)
    Income Before Income Taxes28,896  29,975  (1,079) 95,167  85,533  9,634 
    Income Tax Expense6,948  7,352  (404) 24,107  22,718  1,389 
    Net Income$21,948  $22,623  $(675) $71,060  $62,815  $8,245 
    Net Income Per Share (Diluted)$0.24  $0.26  $(0.02) $0.78  $0.72  $0.06 
              
              
     Three Months Ended Nine Months Ended
     June 30, June 30,
    GATHERING SEGMENT2021 2020 Variance 20212020Variance
    Revenues from External Customers$588  $—  $588  $1,610  $—  $1,610 
    Intersegment Revenues48,068  33,299  14,769  144,317  103,355  40,962 
    Total Operating Revenues48,656  33,299  15,357  145,927  103,355  42,572 
    Operating Expenses:         
    Operation and Maintenance8,715  5,443  3,272  24,750  16,487  8,263 
    Property, Franchise and Other Taxes12  12  —  30  50  (20)
    Depreciation, Depletion and Amortization8,131  5,237  2,894  24,132  15,655  8,477 
     16,858  10,692  6,166  48,912  32,192  16,720 
              
    Operating Income31,798  22,607  9,191  97,015  71,163  25,852 
              
    Other Income (Expense):         
    Non-Service Pension and Post-Retirement Benefit Costs(68) (71) 3  (203) (214) 11 
    Interest and Other Income10  41  (31) 253  198  55 
    Interest Expense on Long-Term Debt—  —  —  (965) —  (965)
    Interest Expense(4,102) (2,383) (1,719) (12,435) (6,762) (5,673)
    Income Before Income Taxes27,638  20,194  7,444  83,665  64,385  19,280 
    Income Tax Expense7,211  4,955  2,256  21,988  13,304  8,684 
    Net Income$20,427  $15,239  $5,188  $61,677  $51,081  $10,596 
    Net Income Per Share (Diluted)$0.22  $0.17  $0.05  $0.67  $0.58  $0.09 
              


              
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
              
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
              
    DOWNSTREAM BUSINESS
              
              
     Three Months Ended Nine Months Ended
    (Thousands of Dollars, except per share amounts)June 30, June 30,
    UTILITY SEGMENT2021 2020 Variance 20212020Variance
    Revenues from External Customers$126,934  $124,390  $2,544  $586,618  $569,856  $16,762 
    Intersegment Revenues74  2,647  (2,573) 271  8,499  (8,228)
    Total Operating Revenues127,008  127,037  (29) 586,889  578,355  8,534 
    Operating Expenses:         
    Purchased Gas44,848  43,752  1,096  255,011  247,869  7,142 
    Operation and Maintenance43,296  43,410  (114) 141,412  137,323  4,089 
    Property, Franchise and Other Taxes9,433  9,661  (228) 30,181  30,295  (114)
    Depreciation, Depletion and Amortization14,505  13,860  645  42,811  41,241  1,570 
     112,082  110,683  1,399  469,415  456,728  12,687 
              
    Operating Income14,926  16,354  (1,428) 117,474  121,627  (4,153)
              
    Other Income (Expense):         
    Non-Service Pension and Post-Retirement Benefit Costs(5,747) (5,811) 64  (24,674) (24,962) 288 
    Interest and Other Income960  1,749  (789) 2,142  2,994  (852)
    Interest Expense(5,510) (5,240) (270) (16,457) (16,430) (27)
    Income Before Income Taxes4,629  7,052  (2,423) 78,485  83,229  (4,744)
    Income Tax Expense (Benefit)(212) 798  (1,010) 18,563  18,894  (331)
    Net Income$4,841  $6,254  $(1,413) $59,922  $64,335  $(4,413)
    Net Income Per Share (Diluted)$0.05  $0.07  $(0.02) $0.65  $0.74  $(0.09)
              


    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 OTHER2021 2020 Variance 20212020Variance
    Revenues from External Customers$(1) $16,286  $(16,287) $1,174  $83,445  $(82,271)
    Intersegment Revenues2  341  (339) 22  598  (576)
    Total Operating Revenues1  16,627  (16,626) 1,196  84,043  (82,847)
    Operating Expenses:         
    Purchased Gas4  14,038  (14,034) 2,297  75,222  (72,925)
    Operation and Maintenance17  2,176  (2,159) 701  5,754  (5,053)
    Property, Franchise and Other Taxes—  202  (202) 47  522  (475)
    Depreciation, Depletion and Amortization—  245  (245) 394  653  (259)
     21  16,661  (16,640) 3,439  82,151  (78,712)
    Gain on Sale of Timber Properties—  —  —  51,066  —  51,066 
    Operating Income (Loss)(20) (34) 14  48,823  1,892  46,931 
    Other Income (Expense):         
    Non-Service Pension and Post-Retirement Benefit Costs—  (69) 69  (7) (207) 200 
    Interest and Other Income3  202  (199) 229  674  (445)
    Interest Expense—  (10) 10  —  (52) 52 
    Income (Loss) before Income Taxes(17) 89  (106) 49,045  2,307  46,738 
    Income Tax Expense (Benefit)(1,056) 98  (1,154) 11,428  775  10,653 
    Net Income (Loss)$1,039  $(9) $1,048  $37,617  $1,532  $36,085 
    Net Income (Loss) Per Share (Diluted)$0.01  $—  $0.01  $0.41  $0.02  $0.39 
          
     Three Months Ended Nine Months Ended
     June 30, June 30,
    CORPORATE2021 2020 Variance 20212020Variance
    Revenues from External Customers$83  $95  $(12) $272  $364  $(92)
    Intersegment Revenues1,027  1,094  (67) 2,718  3,281  (563)
    Total Operating Revenues1,110  1,189  (79) 2,990  3,645  (655)
    Operating Expenses:         
    Operation and Maintenance5,224  2,778  2,446  11,566  8,920  2,646 
    Property, Franchise and Other Taxes124  106  18  370  343  27 
    Depreciation, Depletion and Amortization39  166  (127) 133  544  (411)
     5,387  3,050  2,337  12,069  9,807  2,262 
              
    Operating Loss(4,277) (1,861) (2,416) (9,079) (6,162) (2,917)
    Other Income (Expense):         
    Non-Service Pension and Post-Retirement Benefit Costs(923) (775) (148) (2,769) (2,326) (443)
    Interest and Other Income33,433  35,919  (2,486) 107,728  89,795  17,933 
    Interest Expense on Long-Term Debt(30,220) (27,140) (3,080) (95,212) (77,853) (17,359)
    Other Interest Expense(236) (1,665) 1,429  (2,412) (4,688) 2,276 
    Income (Loss) before Income Taxes(2,223) 4,478  (6,701) (1,744) (1,234) (510)
    Income Tax Expense (Benefit)(1,428) 901  (2,329) (1,940) (977) (963)
    Net Income (Loss)$(795) $3,577  $(4,372) $196  $(257) $453 
    Net Income (Loss) Per Share (Diluted)$(0.01) $0.04  $(0.05) $0.01  $—  $0.01 
              
              
     Three Months Ended Nine Months Ended
     June 30, June 30,
    INTERSEGMENT ELIMINATIONS2021 2020 Variance 20212020Variance
    Intersegment Revenues$(75,976) $(64,174) $(11,802) $(229,979) $(193,103) $(36,876)
    Operating Expenses:         
    Purchased Gas(26,104) (28,680) 2,576  (80,509) (83,429) 2,920 
    Operation and Maintenance(49,872) (35,494) (14,378) (149,470) (109,674) (39,796)
     (75,976) (64,174) (11,802) (229,979) (193,103) (36,876)
    Operating Income—  —  —  —  —  — 
    Other Income (Expense):         
    Interest and Other Deductions(30,914) (29,974) (940) (100,628) (87,649) (12,979)
    Interest Expense30,914  29,974  940  100,628  87,649  12,979 
    Net Income$—  $—  $—  $—  $—  $— 
    Net Income Per Share (Diluted)$—  $—  $—  $—  $—  $— 


                
    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
     2021 2020 (Decrease) 2021 2020 (Decrease)
                
    Capital Expenditures:           
    Exploration and Production$94,152 (1)$65,647(3)$28,505  $263,763 (1)(2)$294,990(3)(4)$(31,227)
    Pipeline and Storage63,863 (1)41,494(3)22,369  155,556 (1)(2)124,131(3)(4)31,425 
    Gathering6,209 (1)21,289(3)(15,080) 25,628 (1)(2)46,200(3)(4)(20,572)
    Utility24,866 (1)25,616(3)(750) 66,691 (1)(2)62,238(3)(4)4,453 
    Total Reportable Segments189,090  154,046 35,044  511,638  527,559 (15,921)
    All Other—  16 (16) —  38 (38)
    Corporate129  100 29  218  420 (202)
    Eliminations(1,898) — (1,898) (2,118) — (2,118)
    Total Capital Expenditures$187,321  $154,162 $33,159  $509,738  $528,017 $(18,279)


    (1)Capital expenditures for the quarter and nine months ended June 30, 2021, include accounts payable and accrued liabilities related to capital expenditures of $49.7 million, $25.8 million, $0.9 million, and $5.1 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, 2021, since they represent non-cash investing activities at that date.
    (2)Capital expenditures for the nine months ended June 30, 2021, exclude capital expenditures of $45.8 million, $17.3 million, $13.5 million and $10.7 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, 2020 and paid during the nine months ended June 30, 2021. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2020, 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, 2021.
    (3)Capital expenditures for the quarter and nine months ended June 30, 2020, include accounts payable and accrued liabilities related to capital expenditures of $26.5 million, $16.4 million, $6.5 million, and $8.7 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, 2020, since they represent non-cash investing activities at that date.
    (4)Capital expenditures for the nine months ended June 30, 2020, exclude capital expenditures of $38.0 million, $23.8 million, $6.6 million and $12.7 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, 2019 and paid during the nine months ended June 30, 2020. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2019, 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, 2020.


              
    DEGREE DAYS         
           Percent Colder
           (Warmer) Than:
    Three Months Ended June 30,Normal 2021 2020 Normal (1) Last Year (1)
    Buffalo, NY912 794 1,032 (12.9) (23.1)
    Erie, PA871 741 920 (14.9) (19.5)
              
    Nine Months Ended June 30,         
    Buffalo, NY6,455 5,693 6,002 (11.8) (5.1)
    Erie, PA6,023 5,188 5,381 (13.9) (3.6)
              

    (1)   Percents compare actual 2021 degree days to normal degree days and actual 2021 degree days to actual 2020 degree days.

                
                
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                
    EXPLORATION AND PRODUCTION INFORMATION
                
                
     Three Months Ended Nine Months Ended
     June 30, June 30,
         Increase     Increase
     2021 2020 (Decrease) 2021 2020 (Decrease)
                
    Gas Production/Prices:           
    Production (MMcf)           
    Appalachia79,314 52,043 27,271  236,429 161,965 74,464 
    West Coast431 468 (37) 1,300 1,434 (134)
    Total Production79,745 52,511 27,234  237,729 163,399 74,330 
                
    Average Prices (Per Mcf)           
    Appalachia$2.29 $1.45 $0.84  $2.25 $1.80 $0.45 
    West Coast5.36 2.58 2.78  5.83 3.98 1.85 
    Weighted Average2.31 1.46 0.85  2.27 1.82 0.45 
    Weighted Average after Hedging2.20 1.92 0.28  2.21 2.13 0.08 
                
    Oil Production/Prices:           
    Production (Thousands of Barrels)           
    Appalachia1 — 1  2 2 — 
    West Coast557 584 (27) 1,681 1,790 (109)
    Total Production558 584 (26) 1,683 1,792 (109)
                
    Average Prices (Per Barrel)           
    Appalachia$42.09 $27.50 $14.59  $43.13 $50.28 $(7.15)
    West Coast67.55 29.13 38.42  56.92 47.40 9.52 
    Weighted Average67.52 29.12 38.40  56.90 47.41 9.49 
    Weighted Average after Hedging59.22 50.70 8.52  55.40 57.35 (1.95)
                
    Total Production (MMcfe)83,093 56,015 27,078  247,827 174,151 73,676 
                
    Selected Operating Performance Statistics:           
    General & Administrative Expense per Mcfe (1)$0.19 $0.25 $(0.06) $0.21 $0.27 $(0.06)
    Lease Operating and Transportation Expense per Mcfe (1)(2)$0.80 $0.82 $(0.02) $0.80 $0.85 $(0.05)
    Depreciation, Depletion & Amortization per Mcfe (1)$0.55 $0.70 $(0.15) $0.55 $0.74 $(0.19)
                


    (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 $0.57 per Mcfe for the three months ended June 30, 2021 and June 30, 2020, respectively. Amounts include transportation expense of $0.57 and $0.57 per Mcfe for the nine months ended June 30, 2021 and June 30, 2020, respectively.


    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
           
    EXPLORATION AND PRODUCTION INFORMATION
     
           
    Hedging Summary for Remaining Three Months of Fiscal 2021 Volume  Average Hedge Price
    Oil Swaps      
    Brent 354,000 BBL $57.57 / BBL
    NYMEX 39,000 BBL $51.00 / BBL
    Total 393,000  BBL $56.91 / BBL
    Gas Swaps      
    NYMEX 37,170,000 MMBTU $2.62 / MMBTU
    No Cost Collars 7,050,000 MMBTU $2.28 / MMBTU (Floor) / $2.77 / MMBTU (Ceiling)
    Fixed Price Physical Sales 25,768,709 MMBTU $2.27 / MMBTU
    Total 69,988,709  MMBTU   
    Hedging Summary for Fiscal 2022 Volume  Average Hedge Price
    Oil Swaps      
    Brent 1,140,000 BBL $58.28 / BBL
    NYMEX 156,000 BBL $51.00 / BBL
    Total 1,296,000  BBL $57.40 / BBL
    Gas Swaps      
    NYMEX 208,500,000 MMBTU $2.75 / MMBTU
    No Cost Collars 2,350,000 MMBTU $2.28 / MMBTU (Floor) / $2.77 / MMBTU (Ceiling)
    Fixed Price Physical Sales 51,121,738 MMBTU $2.27 / MMBTU
    Total 261,971,738  MMBTU   
    Hedging Summary for Fiscal 2023 Volume  Average Hedge Price
    Oil Swaps      
    Brent 480,000 BBL $58.48 / BBL
    Total 480,000  BBL $58.48 / BBL
    Gas Swaps      
    NYMEX 98,710,000 MMBTU $2.69 / MMBTU
    No Cost Collars 7,700,000 MMBTU $2.76 / MMBTU (Floor) / $3.16 / MMBTU (Ceiling)
    Fixed Price Physical Sales 48,121,254 MMBTU $2.23 / MMBTU
    Total 154,531,254  MMBTU   
    Hedging Summary for Fiscal 2024 Volume  Average Hedge Price
    Oil Swaps      
    Brent 120,000 BBL $50.30 / BBL
    Total 120,000  BBL $50.30 / BBL
    Gas Swaps      
    NYMEX 59,490,000 MMBTU $2.71 / MMBTU
    No Cost Collars 700,000 MMBTU $2.76 / MMBTU (Floor) / $3.16 / MMBTU (Ceiling)
    Fixed Price Physical Sales 27,530,402 MMBTU $2.18 / MMBTU
    Total 87,720,402  MMBTU   
    Hedging Summary for Fiscal 2025 Volume  Average Hedge Price
    Oil Swaps      
    Brent 120,000 BBL $50.32 / BBL
    Total 120,000  BBL $50.32 / BBL
    Gas Swaps      
    NYMEX 4,740,000 MMBTU $2.71 / MMBTU
    Fixed Price Physical Sales 8,835,284 MMBTU $2.06 / MMBTU
    Total 13,575,284  MMBTU   
           
    Hedging Summary for Fiscal 2026 Volume  Average Hedge Price
    Fixed Price Physical Sales 4,923,270 MMBTU $2.02 / MMBTU
           
    Hedging Summary for Fiscal 2027 Volume  Average Hedge Price
    Fixed Price Physical Sales 286,249 MMBTU $2.02 / 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
     2021 2020 (Decrease) 2021 2020 (Decrease)
    Firm Transportation - Affiliated19,202  20,877  (1,675) 92,290  98,145  (5,855)
    Firm Transportation - Non-Affiliated155,022  151,702  3,320  494,458  478,880  15,578 
    Interruptible Transportation181  757  (576) 1,205  2,002  (797)
     174,405  173,336  1,069  587,953  579,027  8,926 
                
    Gathering Volume - (MMcf)           
     Three Months Ended Nine Months Ended
     June 30, June 30,
         Increase     Increase
     2021 2020 (Decrease) 2021 2020 (Decrease)
    Gathered Volume91,817  61,338  30,479  275,283  190,864  84,419 
                
                
    Utility Throughput - (MMcf)           
     Three Months Ended Nine Months Ended
     June 30, June 30,
         Increase     Increase
     2021 2020 (Decrease) 2021 2020 (Decrease)
    Retail Sales:           
    Residential Sales9,776  11,312  (1,536) 57,241  56,943  298 
    Commercial Sales1,369  1,450  (81) 8,206  8,295  (89)
    Industrial Sales65  106  (41) 441  506  (65)
     11,210  12,868  (1,658) 65,888  65,744  144 
    Transportation13,298  13,520  (222) 55,815  59,233  (3,418)
     24,508  26,388  (1,880) 121,703  124,977  (3,274)
                


      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, Adjusted EBITDA and free cash flow, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company's ongoing operating results or liquidity and for comparing the Company’s financial performance to other companies. The Company's management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP.

    Management defines Adjusted 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, 2021 and 2020:

     Three Months Ended Nine Months Ended
     June 30, June 30,
    (in thousands except per share amounts)2021 2020 2021 2020
    Reported GAAP Earnings$86,475  $41,250  $276,685  $21,773 
    Items impacting comparability:       
    Impairment of oil and gas properties (E&P)—  18,236  76,152  195,997 
    Tax impact of impairment of oil and gas properties—  (4,986) (20,980) (53,489)
    Gain on sale of timber properties (Corporate/All Other)—  —  (51,066) — 
    Tax impact of gain on sale of timber properties—  —  14,069  — 
    Premium paid on early redemption of debt—  —  15,715  — 
    Tax impact of premium paid on early redemption of debt—  —  (4,321) — 
    Deferred tax valuation allowance—  —  —  56,770 
    Unrealized (gain) loss on other investments (Corporate/All Other)(1,025) (5,639) (575) 794 
    Tax impact of unrealized (gain) loss on other investments215  1,184  120  (167)
    Adjusted Operating Results$85,665  $50,045  $305,799  $221,678 
            
    Reported GAAP Earnings Per Share$0.94  $0.47  $3.02  $0.25 
    Items impacting comparability:       
    Impairment of oil and gas properties, net of tax (E&P)—  0.15  0.60  1.63 
    Gain on sale of timber properties, net of tax (Corporate/All Other)—  —  (0.40) — 
    Premium paid on early redemption of debt, net of tax—  —  0.12  — 
    Deferred tax valuation allowance—  —  —  0.65 
    Unrealized (gain) loss on other investments, net of tax (Corporate/All Other)(0.01) (0.05) —  0.01 
    Adjusted Operating Results Per Share$0.93  $0.57  $3.34  $2.54 

    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, 2021 and 2020:

     Three Months Ended Nine Months Ended
     June 30, June 30,
    (in thousands)2021 2020 2021 2020
    Reported GAAP Earnings$86,475  $41,250  $276,685  $21,773 
    Depreciation, Depletion and Amortization84,170  73,232  251,632  226,062 
    Other (Income) Deductions2,028  (2,547) 15,078  17,971 
    Interest Expense31,232  28,560  115,926  82,716 
    Income Taxes30,335  13,134  99,962  81,376 
    Impairment of Oil and Gas Producing Properties—  18,236  76,152  195,997 
    Gain on Sale of Timber Properties—  —  (51,066) — 
    Adjusted EBITDA$234,240  $171,865  $784,369  $625,895 
            
    Adjusted EBITDA by Segment       
    Pipeline and Storage Adjusted EBITDA$53,086  $50,511  $169,791  $142,555 
    Gathering Adjusted EBITDA39,929  27,844  121,147  86,818 
    Total Midstream Businesses Adjusted EBITDA93,015  78,355  290,938  229,373 
    Exploration and Production Adjusted EBITDA116,052  64,780  343,941  236,727 
    Utility Adjusted EBITDA29,431  30,214  160,285  162,868 
    Corporate and All Other Adjusted EBITDA(4,258) (1,484) (10,795) (3,073)
    Total Adjusted EBITDA$234,240  $171,865  $784,369  $625,895 
                    

    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)2021 2020 2021 2020
    Exploration and Production Segment       
    Reported GAAP Earnings$39,015  $(6,434) $46,213  $(157,733)
    Depreciation, Depletion and Amortization45,886  39,372  137,356  128,656 
    Other (Income) Deductions271  253  684  602 
    Interest Expense12,008  14,323  57,720  42,543 
    Income Taxes18,872  (970) 25,816  26,662 
    Impairment of Oil and Gas Producing Properties—  18,236  76,152  195,997 
    Adjusted EBITDA$116,052  $64,780  $343,941  $236,727 
            
    Pipeline and Storage Segment       
    Reported GAAP Earnings$21,948  $22,623  $71,060  $62,815 
    Depreciation, Depletion and Amortization15,609  14,352  46,806  39,313 
    Other (Income) Deductions(1,489) (1,589) (3,535) (4,328)
    Interest Expense10,070  7,773  31,353  22,037 
    Income Taxes6,948  7,352  24,107  22,718 
    Adjusted EBITDA$53,086  $50,511  $169,791  $142,555 
            
    Gathering Segment       
    Reported GAAP Earnings$20,427  $15,239  $61,677  $51,081 
    Depreciation, Depletion and Amortization8,131  5,237  24,132  15,655 
    Other (Income) Deductions58  30  (50) 16 
    Interest Expense4,102  2,383  13,400  6,762 
    Income Taxes7,211  4,955  21,988  13,304 
    Adjusted EBITDA$39,929  $27,844  $121,147  $86,818 
            
    Utility Segment       
    Reported GAAP Earnings$4,841  $6,254  $59,922  $64,335 
    Depreciation, Depletion and Amortization14,505  13,860  42,811  41,241 
    Other (Income) Deductions4,787  4,062  22,532  21,968 
    Interest Expense5,510  5,240  16,457  16,430 
    Income Taxes(212) 798  18,563  18,894 
    Adjusted EBITDA$29,431  $30,214  $160,285  $162,868 
            
    Corporate and All Other       
    Reported GAAP Earnings$244  $3,568  $37,813  $1,275 
    Depreciation, Depletion and Amortization39  411  527  1,197 
    Gain on Sale of Timber Properties—  —  (51,066) — 
    Other (Income) Deductions(1,599) (5,303) (4,553) (287)
    Interest Expense(458) (1,159) (3,004) (5,056)
    Income Taxes(2,484) 999  9,488  (202)
    Adjusted EBITDA$(4,258) $(1,484) $(10,795) $(3,073)

    Management defines free cash flow as funds from operations less capital expenditures. The Company is unable to provide a reconciliation of projected free cash flow as described in this release to its comparable financial measure calculated in accordance with GAAP without unreasonable efforts. This is due to our inability to calculate the comparable GAAP projected metrics, including operating income and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.

    Kenneth E. Webster
    Investor Relations
    716-857-7067    		Karen M. Camiolo
    Treasurer
    716-857-7344

    Primary Logo

Опубликовать