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WILLIAMSVILLE, N.Y.--(BUSINESS WIRE)--
National Fuel Gas Company (“National Fuel” or the “Company”) (NFG)
today announced consolidated earnings for the fourth quarter and fiscal
year ended September 30, 2014, of $57.4 million, or $0.68 per share, and
$299.4 million, or $3.52 per share, respectively.
HIGHLIGHTS
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Consolidated earnings before items impacting comparability (“Operating
Results”) for the fourth quarter and fiscal year ended September 30,
2014, were $50.4 million, or $0.60 per share, and $291.8 million, or
$3.43 per share, respectively.
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Adjusted earnings before interest, taxes, depreciation and
amortization (“Adjusted EBITDA”) for fiscal 2014, were $953.5 million
compared to $852.1 million for the prior year, an increase of 12%.
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In the Midstream businesses (which consist of the Company's Pipeline
and Storage and Gathering segments), Adjusted EBITDA for fiscal 2014
were $250.1 million, a 31% increase over the prior year.
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Seneca Resources Corporation’s (“Seneca”) fourth quarter production of
natural gas and crude oil was 46.0 billion cubic feet equivalent
(“Bcfe”), an increase of 12.7 Bcfe or approximately 38% over the prior
year’s fourth quarter. Pricing related curtailments for the quarter
were approximately 5 Bcf. Average daily production during the quarter
was 500 million cubic feet equivalent (“MMcfe”) per day. Total
production for fiscal 2014 increased to 160.5 Bcfe, an increase of
39.8 Bcfe over the prior year.
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Seneca’s total reserves at September 30, 2014, were 1.9 trillion cubic
feet equivalent (“Tcfe”), an increase of 365 Bcfe or 24%. Seneca
replaced 327% of fiscal 2014 production.
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A conference call is scheduled for Friday, November 7, 2014, at 11
a.m. Eastern Time.
MANAGEMENT COMMENTS
Ronald J. Tanski, President and Chief Executive Officer of National Fuel
Gas Company, stated: “I am pleased to report the results of another very
successful fiscal year. While each of our business segments had a solid
operating performance during our 2014 fiscal year, our midstream
businesses were the main driver of our increased earnings.
“We continue to capitalize on opportunities to build midstream pipeline
infrastructure to move clean-burning natural gas produced from the
Marcellus Shale to the market areas.
“The exploration success that producers have enjoyed in the Appalachian
Basin in both the Marcellus and Utica shales has outstripped available
pipeline capacity and has placed near-term commodity pricing pressure on
those producers, including our own Seneca Resources. Those pricing
pressures are evidenced by our decrease in earnings guidance for our
next fiscal year. Customers of our Utility segment were the primary
beneficiaries of increasing production in the basin, where ample
supplies of flowing natural gas and gas withdrawn from storage helped to
keep heating bills low over this past winter, which was the coldest in
50 years.
“Looking ahead to 2015 and 2016, we will continue our plan to develop
and build midstream projects to help alleviate capacity constraints and
pricing pressures facing Seneca. In addition, Seneca’s ongoing drilling
program will be designed to increase our production and fill the firm
pipeline capacity that Seneca has committed to in 2016 and 2017.
“We are in a great position to continue the growth of the Company. Our
integrated structure allows the ongoing efficient development of our
mineral acreage, which is made more valuable by our investments in
pipeline infrastructure that provides access to markets that are
becoming more reliant on this abundant and clean burning fuel.”
EXPLORATION AND PRODUCTION SEGMENT OPERATIONS UPDATE
Seneca has continued to focus on the development of its Western
Development Area (“WDA”) acreage in the Marcellus Shale, where Seneca is
operating two of its three horizontal drilling rigs. The third rig,
which is currently drilling a Utica delineation well in Tioga County,
Pa., is expected to return to drilling in the WDA during the first
quarter of fiscal 2015. Seneca’s Marcellus development in fiscal 2015
will be focused almost exclusively on the WDA in order to develop
natural gas production to fill approximately 500 MMcfe per day of
pipeline transportation capacity associated with the Northern Access
2015 and Northern Access 2016 expansion projects.
During the fourth quarter, Seneca brought on 15 new Marcellus
development wells in the greater Clermont-Rich Valley area. These wells,
located on Pad N and Pad H where Seneca pays no royalty and, therefore,
has a 100% net working and revenue interest, had a combined average
initial 24-hour production rate of 8.1 MMcfe per day. The wells had an
average lateral length of 5,710 feet and were completed using a reduced
cluster spacing (“RCS”) design, averaging 38 stages per well. The
average capital cost to drill and complete each of these wells was
approximately $6.1 million. The 9-well Pad N, brought on-line in July
2014, continues to post strong production rates that averaged 4.4 MMcf
per well per day over its first 60 days of production, which is
consistent with our type curve for that area.
In addition, Seneca began producing from a new 10-well pad at DCNR Tract
100 in Lycoming County, Pa., and a new 5-well pad at DCNR Tract 595 in
Tioga County, Pa. On the new DCNR 100 Pad T, Seneca drilled its most
successful Marcellus well to date, which produced at a 24-hour peak rate
of 25.7 MMcf per day.
During fiscal year 2014, Seneca replaced 327% of production to reach a
total of 1.914 Tcfe of proved crude oil and natural gas reserves as of
September 30, 2014. Seneca’s success through the drill bit in the
Marcellus Shale led to a 383 Bcf, or 30% increase in natural gas
reserves, which totaled 1.683 Tcf at fiscal year end. Crude oil
reserves, which decreased by 8% largely due to production, totaled 38.5
million barrels (“Bbls”) at September 30, 2014. Consolidated finding and
development costs for the year were $1.15 per thousand cubic feet
equivalent (“Mcfe”), down from fiscal 2013’s $1.31 per Mcfe.
Of the total reserves, 73% were classified as proved developed reserves.
This is an increase from 71% proved developed reserves as of September
30, 2013. Proved undeveloped (“PUD”) reserves totaled 27% of the total
reserves at the end of the fiscal year.
SUMMARY OF RESULTS
National Fuel Gas had consolidated earnings for the quarter ended
September 30, 2014, of $57.4 million, or $0.68 per share, compared to
the prior year’s fourth quarter of $47.8 million, or $0.57 per share, an
increase of $9.6 million, or $0.11 per share. The increase is mainly due
to higher earnings in the Midstream and Upstream businesses. (Note: All
references to earnings per share are to diluted earnings per share, and
all amounts used in the discussion of earnings are after tax unless
otherwise noted.)
Consolidated earnings for the fiscal year ended September 30, 2014, of
$299.4 million, or $3.52 per share, increased $39.4 million, or $0.44
per share, from the same period in the prior year where earnings were
$260.0 million or $3.08 per share.
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OPERATING RESULTS
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Three Months Ended
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Fiscal Year Ended
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September 30,
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September 30,
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2014
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2013
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2014
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2013
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(in thousands except per share amounts)
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Reported GAAP earnings
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$
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57,431
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$
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47,842
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$
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299,413
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$
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260,001
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Items impacting comparability1:
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Deferred state income tax adjustment
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(7,000
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)
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(4,000
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5,000
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Gain on life insurance policies
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(3,635
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)
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Regulatory adjustment - Utility segment
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4,680
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4,875
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Operating Results
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$
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50,431
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$
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52,522
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$
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291,778
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$
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269,876
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Reported GAAP earnings per share
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$
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0.68
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$
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0.57
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$
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3.52
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$
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3.08
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Items impacting comparability1:
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Deferred state income tax adjustment
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(0.08
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)
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(0.05
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)
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0.06
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Gain on life insurance policies
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(0.04
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)
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Regulatory adjustment - Utility segment
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0.06
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0.06
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Operating Results
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$
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0.60
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$
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0.63
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$
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3.43
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$
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3.20
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1 See discussion of these individual items below.
As outlined in the table above, certain items included in GAAP earnings
impacted the comparability of the Company’s financial results when
comparing the quarter and fiscal year ended September 30, 2014, to the
comparable periods in fiscal 2013. Excluding these items, Operating
Results for the current quarter of $50.4 million, or $0.60 per share,
decreased $2.1 million, or $0.03 per share, from the prior year’s fourth
quarter where Operating Results were $52.5 million or $0.63 per share.
Excluding these items, Operating Results for the fiscal year ended
September 30, 2014, of $291.8 million, or $3.43 per share, increased
$21.9 million, or $0.23 per share, from the prior year where Operating
Results were $269.9 million or $3.20 per share. Items impacting
comparability will be discussed in more detail with the discussion of
segment earnings below.
DISCUSSION OF RESULTS BY SEGMENT
The following discussion of the earnings of each segment is summarized
in a tabular form at pages 11 through 14 of this report. It may be
helpful to refer to those tables while reviewing this discussion.
Upstream Business
Exploration and Production Segment
The Exploration and Production segment operations are carried out by
Seneca Resources Corporation (“Seneca”). Seneca explores for, develops
and produces natural gas and oil reserves, primarily in Pennsylvania and
California.
The Exploration and Production segment’s earnings in the fourth quarter
of fiscal 2014 of $33.7 million, or $0.40 per share, increased $4.4
million, or $0.05 per share, when compared with the prior year’s fourth
quarter. In the current year’s fourth quarter Seneca reduced its state
deferred income tax liability by $7.0 million. The decrease in income
taxes was largely due to an anticipated increase in firm transportation
of natural gas to Canadian delivery points, which decreased the
effective tax rate used in the calculation of deferred tax expense.
Excluding this adjustment, Operating Results in the Exploration and
Production segment of $26.7 million, or $0.32 per share, decreased $2.6
million, or $0.03 per share, when compared to the prior year’s fourth
quarter.
Overall production of natural gas and crude oil for the current quarter
of 46.0 Bcfe increased approximately 12.7 Bcfe, or 38.3 percent,
compared to the prior year’s fourth quarter. Production from Seneca’s
Appalachia properties increased approximately 12.3 Bcfe or 43.8 percent.
California production of 5.5 Bcfe increased 7.3 percent compared with
the prior year’s fourth quarter due to increased development activities,
primarily in the East Coalinga and South Midway Sunset fields.
Lower commodity prices realized after hedging reduced Operating Results.
The weighted average natural gas price received by Seneca (after
hedging) for the quarter ended September 30, 2014, was $3.19 per
thousand cubic feet (“Mcf”), a decrease of $0.80 per Mcf compared to the
prior year’s fourth quarter. The weighted average crude oil price
realized after hedging for the quarter ended September 30, 2014, was
$93.70 per Bbl, a decrease of $5.50 per Bbl compared to the prior year’s
fourth quarter.
On a per unit basis, quarterly depletion expense of $1.76 per Mcfe,
decreased $0.20 per Mcfe due to higher natural gas reserve balances at
September 30, 2014, compared to the prior year’s fourth quarter. On a
per unit basis, lease operating and transportation expenses (“LOE”) at
$1.02 per Mcfe increased $0.06 per Mcfe compared to the prior year’s
fourth quarter due to higher intercompany gathering and compression
costs associated with production from Tract 100 in Lycoming County, Pa.,
and the Clermont-Rich Valley area in Seneca’s WDA. Higher well repair
and steam fuel costs in California also contributed to the per unit
increase. General and administrative expenses (“G&A”) decreased $0.11
per Mcfe compared to the prior year’s fourth quarter, due to higher
production. Operating Results were increased by a $4.7 million change in
Seneca’s quarterly mark to market adjustment relating to hedging
ineffectiveness associated with certain crude oil and natural gas hedges.
The Exploration and Production segment’s earnings were $121.6 million,
or $1.43 per share, for the fiscal year ended September 30, 2014,
compared to earnings of $115.4 million, or $1.37 per share, for the
fiscal year ended September 30, 2013. Including the deferred income tax
adjustment described above for the quarter, Seneca had deferred income
tax adjustments in both fiscal 2013 and 2014, the sum of which decreased
earnings by $5.0 million and increased earnings by $4.0 million,
respectively. Excluding these items, Operating Results in the
Exploration and Production segment of $117.6 million, or $1.38 per
share, decreased $2.8 million, or $0.05 per share, when compared to the
prior year.
Overall production of natural gas and crude oil for the fiscal year
ended September 30, 2014, of 160.5 Bcfe increased approximately 39.8
Bcfe, or 33.0 percent, compared to the prior year. Production from
Seneca’s Appalachia properties increased approximately 38.5 Bcfe or 38.2
percent. California production of 21.2 Bcfe increased 6.9 percent
compared with the prior year.
Lower commodity prices realized after hedging in the current fiscal year
reduced earnings. The weighted average natural gas price received by
Seneca (after hedging) for the fiscal year ended September 30, 2014, was
$3.56 per Mcf, a decrease of $0.54 per Mcf compared to the prior year.
The weighted average crude oil price realized after hedging for the
fiscal year ended September 30, 2014, was $95.55 per Bbl, a decrease of
$2.66 per Bbl.
On a per unit basis for the fiscal year ended September 30, 2014,
depletion expense of $1.85 per Mcfe decreased $0.17 per Mcfe due to
higher natural gas reserve balances at September 30, 2014. LOE of $1.03
per Mcfe increased $0.04 per Mcfe due to higher intercompany
transportation costs in Appalachia and higher steam fuel costs in
California, and G&A of $0.40 per Mcfe decreased $0.12 per Mcfe compared
to the prior year, due to higher production. Operating Results for the
fiscal year ended September 30, 2014, were reduced by higher property
taxes in California, a higher Pennsylvania impact fee, and higher
interest expense due to a higher outstanding debt balance. These factors
were partially offset by a net $2.3 million change in the derivative
mark to market adjustment associated with certain crude oil and natural
gas hedges.
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.
The Pipeline and Storage segment’s earnings of $19.1 million, or $0.22
per share, for the quarter ended September 30, 2014, increased $3.7
million, or $0.04 per share, when compared with the same period in the
prior fiscal year. The increase in earnings reflects higher
non-affiliated transportation revenues from new transportation
contracts. As a result of the ongoing pricing basis differentials in the
Marcellus basin, the Pipeline and Storage segment continues to see
increased demand for transportation services from producers and
marketers. Earnings for the quarter also benefitted from lower pension
and other post retirement benefit costs.
The Pipeline and Storage segment’s earnings of $77.6 million, or $0.91
per share, for the fiscal year ended September 30, 2014, increased $14.3
million, or $0.16 per share, when compared with the same period in the
prior fiscal year. The increase was mostly due to higher non-affiliated
transportation revenues and lower pension and other post retirement
benefit costs. The increase in transportation revenues was due to the
Company's recent expansion projects as well as an overall increase in
demand for short-term transportation services as a result of the cold
winter of 2013-14.
Gathering Segment
The Gathering segment’s operations are carried out by National Fuel Gas
Midstream Corporation’s (“Midstream”) subsidiary limited liability
companies. The Gathering segment constructs, owns and operates natural
gas pipeline gathering and processing facilities in the Appalachian
region and currently provides the critical gathering infrastructure for
transporting Seneca’s Marcellus Shale production to the interstate
pipeline system.
The Gathering segment’s earnings of $10.5 million, or $0.12 per share,
for the quarter ended September 30, 2014, increased $6.6 million, or
$0.07 per share, when compared with the same period in the prior fiscal
year. Earnings of $32.7 million, or $0.39 per share, for the fiscal year
ended September 30, 2014, increased $19.4 million, or $0.23 per share,
when compared with the same period in the prior fiscal year. The
increase in earnings for the quarter and the fiscal year is mainly due
to higher gathering revenues from Midstream’s Trout Run and Clermont
gathering systems. That increase in revenue was directly related to the
increase in Seneca’s production volumes as described above.
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.
The Utility segment’s loss of $0.5 million, or $0.01 per share, for the
quarter ended September 30, 2014, compared to earnings of $0.7 million,
or $0.01 per share, in the prior year’s fourth quarter, a decrease in
earnings of $1.2 million or $0.02 per share. During the prior year’s
fourth quarter, Distribution recorded a reserve of $4.7 million in
connection with various issues raised in the recent New York rate
proceeding. Excluding this reserve, Operating Results in the Utility
segment decreased $5.9 million, or $0.08 per share, primarily as a
result of higher operating costs. The increase in operating costs was
mostly attributable to higher bad debt, pension and other post
retirement benefit expenses. In addition, Distribution’s new rate
agreement in New York contains an earnings sharing mechanism under which
Distribution shares a portion of its earnings above a 9.5 percent return
on equity. During the quarter, Distribution recorded a $0.8 million
reserve for earnings sharing.
The Utility segment’s earnings of $64.1 million, or $0.75 per share, for
the fiscal year ended September 30, 2014, decreased $1.6 million, or
$0.03 per share, when compared with the prior fiscal year. Excluding a
total $4.9 million reserve recorded in the prior fiscal year in
connection with the New York rate proceeding noted above, Operating
Results decreased $6.5 million, or $0.09 per share, due to higher
operating expenses, consisting mostly of higher bad debt, pension and
other post retirement benefit related costs, and, a reserve for earnings
sharing. Higher income taxes which were the result of a non-recurring
tax benefit recorded in the prior year also reduced earnings. Colder
weather in Pennsylvania increased earnings in the current year.
Temperatures in Pennsylvania were 14.5 percent colder during the fiscal
year ended September 30, 2014, than in the prior year. In New York, the
impact of weather variations on earnings is mitigated by that
jurisdiction’s weather normalization clause.
Energy Marketing Segment
National Fuel Resources, Inc. (“NFR”) comprises the Company’s Energy
Marketing segment. NFR markets natural gas to industrial, wholesale,
commercial, public authority and residential customers primarily in
western and central New York and northwestern Pennsylvania, offering
competitively priced natural gas to its customers.
The Energy Marketing segment’s earnings for the quarter ended September
30, 2014, of $0.7 million increased $1.8 million compared to the prior
year’s fourth quarter due to higher per unit margins. Earnings for the
fiscal year ended September 30, 2014, of $6.6 million increased $2.0
million due to higher per unit margins and higher volumes sold resulting
from weather that was significantly colder than the prior year.
Corporate and All Other
The Corporate and All Other category primarily includes corporate
operations. The category also includes the remaining operations of
Seneca’s Northeast division that markets high quality hardwoods from
Appalachian land holdings.
The Corporate and All Other category loss of $6.0 million in the quarter
ended September 30, 2014, compares to a loss of $0.3 million in the
prior year’s fourth quarter. The increase in the loss in the fourth
quarter is mainly due to higher income taxes due to an intercompany
deferred tax reallocation in the prior year’s fourth quarter.
The Corporate and All Other category loss of $3.1 million, for the
fiscal year ended September 30, 2014, compares to a loss of $2.2 million
in the prior year. The comparability of the fiscal year results is
impacted by a $3.6 million gain recognized on corporate-owned executive
life insurance policies. Excluding this item, Operating Results for the
fiscal year ended September 30, 2014, a loss of $6.7 million, compares
to a loss of $2.2 million in the prior year. The increase in the loss
for the in the current fiscal year is mainly due to higher income taxes
due to an intercompany deferred tax reallocation in the prior year.
EARNINGS GUIDANCE
The Company is updating its GAAP earnings guidance range for fiscal 2015
to a range of $3.05 to $3.35 per share. The previous earnings guidance
had been a range of $3.30 to $3.60 per share. Substantially all of the
change is attributable to a decrease in the commodity price assumptions
reflected in the forecast. In particular:
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The Company is now assuming Marcellus spot pricing averages between
$2.50 and $2.75 per Mcf, down $0.25 per Mcf from the previous range of
$2.75 and $3.00 per Mcf. At the midpoint, this change reduced earnings
expectations by approximately $0.14 per share.
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NYMEX natural gas prices are now assumed to average $4.00 per MMBtu
for the fiscal year, down $0.25 from the previous forecast. However,
because substantially all of Seneca's firm sales have been hedged,
this change had minimal impact on earnings expectations.
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The Company is now assuming NYMEX crude oil prices average $85 per Bbl
for the fiscal year, down $10.00 from the previous forecast. At the
midpoint, this change reduced earnings expectations by approximately
$0.10 per share.
The Company's forecast oil and gas production for fiscal 2015 is
unchanged at 180 to 220 Bcfe.
EARNINGS TELECONFERENCE
The Company will host a conference call on Friday, November 7, 2014, 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 investor
relations page at National Fuel’s website at investor.nationalfuelgas.com.
For those without Internet access, access is also provided by dialing
(toll-free) 1-866-202-3048, using passcode “36011529.” For those unable
to listen to the live conference call, a replay will be available at
approximately 3 p.m. Eastern Time at the same website link and by phone
at (toll-free) 1-888-286-8010, using passcode “40197121.” Both the
webcast and telephonic replay will be available until the close of
business on Friday, November 14, 2014.
National Fuel is an integrated energy company with $6.7 billion in
assets, including the following five operating segments: Exploration and
Production, Pipeline and Storage, Gathering, Utility, and Energy
Marketing. Additional information about National Fuel is available at www.nationalfuelgas.com.
Certain statements contained herein, including statements identified by
the use of the words “anticipates,” “estimates,” “expects,” “forecasts,”
“intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,”
“may” and similar expressions, and statements which are other than
statements of historical facts, are “forward-looking statements” as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, which could
cause actual results or outcomes to differ materially from those
expressed in the forward-looking statements. The Company’s expectations,
beliefs and projections contained herein are expressed in good faith and
are believed to have a reasonable basis, but there can be no assurance
that such expectations, beliefs or projections will result or be
achieved or accomplished. In addition to other factors, the following
are important factors that could cause actual results to differ
materially from those discussed in the forward-looking statements:
factors affecting the Company’s ability to successfully identify, drill
for and produce economically viable natural gas and oil reserves,
including among others geology, lease availability, title disputes,
weather conditions, shortages, delays or unavailability of equipment and
services required in drilling operations, insufficient gathering,
processing and transportation capacity, the need to obtain governmental
approvals and permits, and compliance with environmental laws and
regulations; changes in laws, regulations or judicial interpretations to
which the Company is subject, including those involving derivatives,
taxes, safety, employment, climate change, other environmental matters,
real property, and exploration and production activities such as
hydraulic fracturing; governmental/regulatory actions, initiatives and
proceedings, including those involving rate cases (which address, among
other things, allowed rates of return, rate design and retained natural
gas), environmental/safety requirements, affiliate relationships,
industry structure, and franchise renewal; changes in the price of
natural gas or oil; changes in price differential 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 and oil having different quality, heating value, hydrocarbon
mix or delivery date; impairments under the SEC’s full cost ceiling test
for natural gas and oil reserves; uncertainty of oil and gas reserve
estimates; significant differences between the Company’s projected and
actual production levels for natural gas or oil; 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; changes in
demographic patterns and weather conditions; changes in the
availability, price or accounting treatment of derivative financial
instruments; 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 economic conditions, including global,
national or regional recessions, and their effect on the demand for, and
customers’ ability to pay for, the Company’s products and services; the
creditworthiness or performance of the Company’s key suppliers,
customers and counterparties; economic disruptions or uninsured losses
resulting from major accidents, fires, severe weather, natural
disasters, terrorist activities, acts of war, cyber attacks or pest
infestation; significant differences between the Company’s projected and
actual capital expenditures and operating expenses; changes in laws,
actuarial assumptions, the interest rate environment and the return on
plan/trust assets related to the Company’s pension and other
post-retirement benefits, which can affect future funding obligations
and costs and plan liabilities; the cost and effects of legal and
administrative claims against the Company or activist shareholder
campaigns to effect changes at the Company; increasing health care costs
and the resulting effect on health insurance premiums and on the
obligation to provide other post-retirement benefits; or increasing
costs of insurance, changes in coverage and the ability to obtain
insurance. The Company disclaims any obligation to update any
forward-looking statements to reflect events or circumstances after the
date thereof.
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
|
QUARTER ENDED SEPTEMBER 30, 2014
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
|
Midstream Businesses
|
|
Downstream Businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration &
|
|
|
Pipeline &
|
|
|
|
|
|
|
|
Energy
|
|
Corporate /
|
|
|
|
(Thousands of Dollars)
|
|
Production
|
|
|
Storage
|
|
Gathering
|
|
Utility
|
|
Marketing
|
|
All Other
|
|
Consolidated*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2013 GAAP earnings
|
|
|
|
$
|
29,266
|
|
|
$
|
15,442
|
|
|
$
|
3,879
|
|
|
$
|
662
|
|
|
$
|
(1,152
|
)
|
|
$
|
(255
|
)
|
|
$
|
47,842
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory adjustment - Utility segment
|
|
|
|
|
|
|
|
|
|
|
|
|
4,680
|
|
|
|
|
|
|
|
|
4,680
|
|
Fourth quarter 2013 operating results
|
|
|
|
29,266
|
|
|
15,442
|
|
|
3,879
|
|
|
5,342
|
|
|
(1,152
|
)
|
|
(255
|
)
|
|
52,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) crude oil prices
|
|
|
|
(2,796
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,796
|
)
|
Higher (lower) natural gas prices
|
|
|
|
(21,374
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21,374
|
)
|
Higher (lower) natural gas production
|
|
|
|
31,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,974
|
|
Higher (lower) crude oil production
|
|
|
|
4,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,212
|
|
Derivative mark to market adjustments
|
|
|
|
4,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,655
|
|
Lower (higher) lease operating and transportation expenses
|
|
|
|
(9,565
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9,565
|
)
|
Lower (higher) depreciation / depletion
|
|
|
|
(10,323
|
)
|
|
|
|
|
(563
|
)
|
|
(264
|
)
|
|
|
|
|
|
|
|
(11,150
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) transportation revenues
|
|
|
|
|
|
|
1,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,230
|
|
Higher (lower) storage revenues
|
|
|
|
|
|
|
(259
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(259
|
)
|
Higher (lower) gathering and processing revenues
|
|
|
|
|
|
|
|
|
|
7,153
|
|
|
|
|
|
|
|
|
|
|
|
7,153
|
|
Lower (higher) operating expenses
|
|
|
|
(1,115
|
)
|
|
2,272
|
|
|
|
|
|
(3,728
|
)
|
|
|
|
|
405
|
|
|
(2,166
|
)
|
Lower (higher) property, franchise and other taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
(246
|
)
|
|
|
|
|
(1,326
|
)
|
|
(1,572
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings sharing adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
(781
|
)
|
|
|
|
|
|
|
|
(781
|
)
|
Warmer weather
|
|
|
|
|
|
|
|
|
|
|
|
|
(515
|
)
|
|
|
|
|
|
|
|
(515
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,841
|
|
|
(776
|
)
|
|
1,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) AFUDC**
|
|
|
|
|
|
|
681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax expense / effective tax rate
|
|
|
|
1,422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,513
|
)
|
|
(3,091
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding
|
|
|
|
305
|
|
|
(251
|
)
|
|
52
|
|
|
(335
|
)
|
|
(28
|
)
|
|
465
|
|
|
208
|
|
Fourth quarter 2014 operating results
|
|
|
|
26,661
|
|
|
19,115
|
|
|
10,521
|
|
|
(527
|
)
|
|
661
|
|
|
(6,000
|
)
|
|
50,431
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred state income tax adjustment
|
|
|
|
7,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,000
|
|
Fourth quarter 2014 GAAP earnings
|
|
|
|
$
|
33,661
|
|
|
$
|
19,115
|
|
|
$
|
10,521
|
|
|
$
|
(527
|
)
|
|
$
|
661
|
|
|
$
|
(6,000
|
)
|
|
$
|
57,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect intercompany eliminations
|
** AFUDC = Allowance for Funds Used During Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
|
QUARTER ENDED SEPTEMBER 30, 2014
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
Midstream Businesses
|
|
Downstream Businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration &
|
|
Pipeline &
|
|
|
|
|
|
|
|
Energy
|
|
Corporate /
|
|
|
|
|
|
|
|
Production
|
|
Storage
|
|
Gathering
|
|
Utility
|
|
Marketing
|
|
All Other
|
|
Consolidated*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2013 GAAP earnings
|
|
|
|
$
|
0.35
|
|
|
$
|
0.18
|
|
|
$
|
0.05
|
|
|
$
|
0.01
|
|
|
$
|
(0.01
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
0.57
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory adjustment - Utility segment
|
|
|
|
|
|
|
|
|
|
|
|
|
0.06
|
|
|
|
|
|
|
|
|
0.06
|
|
Fourth quarter 2013 operating results
|
|
|
|
0.35
|
|
|
0.18
|
|
|
0.05
|
|
|
0.07
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) crude oil prices
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.03
|
)
|
Higher (lower) natural gas prices
|
|
|
|
(0.25
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.25
|
)
|
Higher (lower) natural gas production
|
|
|
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.38
|
|
Higher (lower) crude oil production
|
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.05
|
|
Derivative mark to market adjustments
|
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.05
|
|
Lower (higher) lease operating and transportation expenses
|
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.11
|
)
|
Lower (higher) depreciation / depletion
|
|
|
|
(0.12
|
)
|
|
|
|
|
(0.01
|
)
|
|
—
|
|
|
|
|
|
|
|
|
(0.13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) transportation revenues
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
Higher (lower) storage revenues
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
Higher (lower) gathering and processing revenues
|
|
|
|
|
|
|
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
0.08
|
|
Lower (higher) operating expenses
|
|
|
|
(0.01
|
)
|
|
0.03
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
—
|
|
|
(0.02
|
)
|
Lower (higher) property, franchise and other taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
(0.02
|
)
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings sharing adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
(0.01
|
)
|
Warmer weather
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
(0.01
|
)
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) AFUDC**
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax expense / effective tax rate
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.05
|
)
|
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding
|
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
—
|
|
|
(0.02
|
)
|
|
—
|
|
|
0.03
|
|
|
(0.01
|
)
|
Fourth quarter 2014 operating results
|
|
|
|
0.32
|
|
|
0.22
|
|
|
0.12
|
|
|
(0.01
|
)
|
|
0.01
|
|
|
(0.06
|
)
|
|
0.60
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred state income tax adjustment
|
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.08
|
|
Fourth quarter 2014 GAAP earnings
|
|
|
|
$
|
0.40
|
|
|
$
|
0.22
|
|
|
$
|
0.12
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.01
|
|
|
$
|
(0.06
|
)
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect intercompany eliminations
|
** AFUDC = Allowance for Funds Used During Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
|
TWELVE MONTHS ENDED SEPTEMBER 30, 2014
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
Midstream Businesses
|
|
Downstream Businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration &
|
|
Pipeline &
|
|
|
|
|
|
|
|
Energy
|
|
Corporate /
|
|
|
|
(Thousands of Dollars)
|
|
Production
|
|
Storage
|
|
Gathering
|
|
Utility
|
|
Marketing
|
|
All Other
|
|
Consolidated*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2013 GAAP earnings
|
|
|
|
$
|
115,391
|
|
|
$
|
63,245
|
|
|
$
|
13,321
|
|
|
$
|
65,686
|
|
|
$
|
4,589
|
|
|
$
|
(2,231
|
)
|
|
$
|
260,001
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred state income tax adjustment
|
|
|
|
5,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,000
|
|
Regulatory adjustment - Utility segment
|
|
|
|
|
|
|
|
|
|
|
|
|
4,875
|
|
|
|
|
|
|
|
|
4,875
|
|
Fiscal 2013 operating results
|
|
|
|
120,391
|
|
|
63,245
|
|
|
13,321
|
|
|
70,561
|
|
|
4,589
|
|
|
(2,231
|
)
|
|
269,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) crude oil prices
|
|
|
|
(5,259
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,259
|
)
|
Higher (lower) natural gas prices
|
|
|
|
(49,668
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(49,668
|
)
|
Higher (lower) natural gas production
|
|
|
|
102,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
102,809
|
|
Higher (lower) crude oil production
|
|
|
|
13,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,075
|
|
Derivative mark to market adjustments
|
|
|
|
2,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,329
|
|
Insurance settlement proceeds adjustment
|
|
|
|
1,261
|
|
|
|
|
|
|
|
|
1,485
|
|
|
|
|
|
|
|
|
2,746
|
|
Lower (higher) lease operating and transportation expenses
|
|
|
|
(30,089
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(30,089
|
)
|
Lower (higher) depreciation / depletion
|
|
|
|
(34,306
|
)
|
|
(966
|
)
|
|
(1,411
|
)
|
|
|
|
|
|
|
|
|
|
|
(36,683
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) transportation revenues
|
|
|
|
|
|
|
11,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,658
|
|
Higher (lower) storage revenues
|
|
|
|
|
|
|
(436
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(436
|
)
|
Higher (lower) gathering and processing revenues
|
|
|
|
|
|
|
|
|
|
23,289
|
|
|
|
|
|
|
|
|
|
|
|
23,289
|
|
Lower (higher) operating expenses
|
|
|
|
(2,738
|
)
|
|
6,323
|
|
|
(1,076
|
)
|
|
(9,122
|
)
|
|
|
|
|
|
|
|
(6,613
|
)
|
Lower (higher) property, franchise and other taxes
|
|
|
|
(2,317
|
)
|
|
(927
|
)
|
|
|
|
|
(801
|
)
|
|
|
|
|
(685
|
)
|
|
(4,730
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colder weather
|
|
|
|
|
|
|
|
|
|
|
|
|
5,785
|
|
|
|
|
|
|
|
|
5,785
|
|
Earnings sharing adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,637
|
)
|
|
|
|
|
|
|
|
(1,637
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,196
|
|
|
|
|
|
2,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from unconsolidated subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
391
|
|
|
391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) AFUDC**
|
|
|
|
|
|
|
(393
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(393
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) interest expense
|
|
|
|
(1,617
|
)
|
|
|
|
|
362
|
|
|
899
|
|
|
|
|
|
|
|
|
(356
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax expense / effective tax rate
|
|
|
|
2,228
|
|
|
(497
|
)
|
|
(1,892
|
)
|
|
(2,427
|
)
|
|
|
|
|
(4,712
|
)
|
|
(7,300
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding
|
|
|
|
1,470
|
|
|
(448
|
)
|
|
116
|
|
|
(684
|
)
|
|
(154
|
)
|
|
488
|
|
|
788
|
|
Fiscal 2014 operating results
|
|
|
|
117,569
|
|
|
77,559
|
|
|
32,709
|
|
|
64,059
|
|
|
6,631
|
|
|
(6,749
|
)
|
|
291,778
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on life insurance policies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,635
|
|
|
3,635
|
|
Deferred state income tax adjustment
|
|
|
|
4,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,000
|
|
Fiscal 2014 GAAP earnings
|
|
|
|
$
|
121,569
|
|
|
$
|
77,559
|
|
|
$
|
32,709
|
|
|
$
|
64,059
|
|
|
$
|
6,631
|
|
|
$
|
(3,114
|
)
|
|
$
|
299,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect intercompany eliminations
|
** AFUDC = Allowance for Funds Used During Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
|
TWELVE MONTHS ENDED SEPTEMBER 30, 2014
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
Midstream Businesses
|
|
Downstream Businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration &
|
|
Pipeline &
|
|
|
|
|
|
|
|
Energy
|
|
Corporate /
|
|
|
|
|
|
|
|
Production
|
|
Storage
|
|
Gathering
|
|
Utility
|
|
Marketing
|
|
All Other
|
|
Consolidated*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2013 GAAP earnings
|
|
|
|
$
|
1.37
|
|
|
$
|
0.75
|
|
|
$
|
0.16
|
|
|
$
|
0.78
|
|
|
$
|
0.05
|
|
|
$
|
(0.03
|
)
|
|
$
|
3.08
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred state income tax adjustment
|
|
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.06
|
|
Regulatory adjustment - Utility segment
|
|
|
|
|
|
|
|
|
|
|
|
|
0.06
|
|
|
|
|
|
|
|
|
0.06
|
|
Fiscal 2013 operating results
|
|
|
|
1.43
|
|
|
0.75
|
|
|
0.16
|
|
|
0.84
|
|
|
0.05
|
|
|
(0.03
|
)
|
|
3.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) crude oil prices
|
|
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.06
|
)
|
Higher (lower) natural gas prices
|
|
|
|
(0.58
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.58
|
)
|
Higher (lower) natural gas production
|
|
|
|
1.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.21
|
|
Higher (lower) crude oil production
|
|
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.15
|
|
Derivative mark to market adjustments
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03
|
|
Insurance settlement proceeds adjustment
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
0.03
|
|
Lower (higher) lease operating and transportation expenses
|
|
|
|
(0.35
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.35
|
)
|
Lower (higher) depreciation / depletion
|
|
|
|
(0.40
|
)
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.43
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) transportation revenues
|
|
|
|
|
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.14
|
|
Higher (lower) storage revenues
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
Higher (lower) gathering and processing revenues
|
|
|
|
|
|
|
|
|
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
0.27
|
|
Lower (higher) operating expenses
|
|
|
|
(0.03
|
)
|
|
0.07
|
|
|
(0.01
|
)
|
|
(0.11
|
)
|
|
|
|
|
|
|
|
(0.08
|
)
|
Lower (higher) property, franchise and other taxes
|
|
|
|
(0.03
|
)
|
|
(0.01
|
)
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
(0.01
|
)
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colder weather
|
|
|
|
|
|
|
|
|
|
|
|
|
0.07
|
|
|
|
|
|
|
|
|
0.07
|
|
Earnings sharing adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03
|
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from unconsolidated subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) AFUDC**
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) interest expense
|
|
|
|
(0.02
|
)
|
|
|
|
|
—
|
|
|
0.01
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax expense / effective tax rate
|
|
|
|
0.03
|
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
(0.03
|
)
|
|
|
|
|
(0.06
|
)
|
|
(0.09
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding
|
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.01
|
|
|
(0.02
|
)
|
|
—
|
|
|
0.02
|
|
|
(0.01
|
)
|
Fiscal 2014 operating results
|
|
|
|
1.38
|
|
|
0.91
|
|
|
0.39
|
|
|
0.75
|
|
|
0.08
|
|
|
(0.08
|
)
|
|
3.43
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on life insurance policies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.04
|
|
|
0.04
|
|
Deferred state income tax adjustment
|
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.05
|
|
Fiscal 2014 GAAP earnings
|
|
|
|
$
|
1.43
|
|
|
$
|
0.91
|
|
|
$
|
0.39
|
|
|
0.75
|
|
|
$
|
0.08
|
|
|
$
|
(0.04
|
)
|
|
$
|
3.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect intercompany eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** AFUDC = Allowance for Funds Used During Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
SUMMARY OF OPERATIONS
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Operating Revenues
|
|
|
|
$
|
366,623
|
|
|
$
|
338,863
|
|
|
$
|
2,113,081
|
|
|
$
|
1,829,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
|
28,833
|
|
|
33,532
|
|
|
605,838
|
|
|
460,432
|
|
Operation and Maintenance
|
|
|
|
110,284
|
|
|
103,557
|
|
|
463,078
|
|
|
442,090
|
|
Property, Franchise and Other Taxes
|
|
|
|
21,597
|
|
|
18,881
|
|
|
90,711
|
|
|
82,431
|
|
Depreciation, Depletion and Amortization
|
|
|
|
103,905
|
|
|
86,257
|
|
|
383,781
|
|
|
326,760
|
|
|
|
|
|
264,619
|
|
|
242,227
|
|
|
1,543,408
|
|
|
1,311,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
102,004
|
|
|
96,636
|
|
|
569,673
|
|
|
517,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
2,849
|
|
|
2,491
|
|
|
4,170
|
|
|
4,335
|
|
Other Income
|
|
|
|
2,615
|
|
|
1,032
|
|
|
9,461
|
|
|
4,697
|
|
Interest Expense on Long-Term Debt
|
|
|
|
(22,427
|
)
|
|
(23,042
|
)
|
|
(90,194
|
)
|
|
(90,273
|
)
|
Other Interest Expense
|
|
|
|
(623
|
)
|
|
(941
|
)
|
|
(4,083
|
)
|
|
(3,838
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
|
|
|
84,418
|
|
|
76,176
|
|
|
489,027
|
|
|
432,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
|
|
26,987
|
|
|
28,334
|
|
|
189,614
|
|
|
172,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Available for Common Stock
|
|
|
|
$
|
57,431
|
|
|
$
|
47,842
|
|
|
$
|
299,413
|
|
|
$
|
260,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.68
|
|
|
$
|
0.57
|
|
|
$
|
3.57
|
|
|
$
|
3.11
|
|
Diluted
|
|
|
|
$
|
0.68
|
|
|
$
|
0.57
|
|
|
$
|
3.52
|
|
|
$
|
3.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Used in Basic Calculation
|
|
|
|
84,126,542
|
|
|
83,628,686
|
|
|
83,929,989
|
|
|
83,518,857
|
|
Used in Diluted Calculation
|
|
|
|
85,062,410
|
|
|
84,502,703
|
|
|
84,952,347
|
|
|
84,341,220
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
(Thousands of Dollars)
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Property, Plant and Equipment
|
|
|
|
$8,245,791
|
|
|
$7,313,203
|
|
Less - Accumulated Depreciation, Depletion and Amortization
|
|
|
|
2,502,700
|
|
|
2,161,477
|
|
Net Property, Plant and Equipment
|
|
|
|
5,743,091
|
|
|
5,151,726
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
Cash and Temporary Cash Investments
|
|
|
|
36,886
|
|
|
64,858
|
|
Hedging Collateral Deposits
|
|
|
|
2,734
|
|
|
1,094
|
|
Receivables - Net
|
|
|
|
149,735
|
|
|
133,182
|
|
Unbilled Revenue
|
|
|
|
25,663
|
|
|
19,483
|
|
Gas Stored Underground
|
|
|
|
39,422
|
|
|
51,484
|
|
Materials and Supplies - at average cost
|
|
|
|
27,817
|
|
|
29,904
|
|
Unrecovered Purchased Gas Costs
|
|
|
|
—
|
|
|
12,408
|
|
Other Current Assets
|
|
|
|
54,752
|
|
|
56,905
|
|
Deferred Income Taxes
|
|
|
|
40,323
|
|
|
79,359
|
|
Total Current Assets
|
|
|
|
377,332
|
|
|
448,677
|
|
|
|
|
|
|
|
|
|
|
Other Assets:
|
|
|
|
|
|
|
|
|
Recoverable Future Taxes
|
|
|
|
163,485
|
|
|
163,355
|
|
Unamortized Debt Expense
|
|
|
|
14,304
|
|
|
16,645
|
|
Other Regulatory Assets
|
|
|
|
224,436
|
|
|
252,568
|
|
Deferred Charges
|
|
|
|
14,212
|
|
|
9,382
|
|
Other Investments
|
|
|
|
86,788
|
|
|
96,308
|
|
Goodwill
|
|
|
|
5,476
|
|
|
5,476
|
|
Prepaid Post-Retirement Benefit Costs
|
|
|
|
36,512
|
|
|
22,774
|
|
Fair Value of Derivative Financial Instruments
|
|
|
|
72,606
|
|
|
48,989
|
|
Other
|
|
|
|
1,355
|
|
|
2,447
|
|
Total Other Assets
|
|
|
|
619,174
|
|
|
617,944
|
|
Total Assets
|
|
|
|
$6,739,597
|
|
|
$6,218,347
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION AND LIABILITIES
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
Comprehensive Shareholders' Equity
|
|
|
|
|
|
|
|
|
Common Stock, $1 Par Value Authorized - 200,000,000
|
|
|
|
|
|
|
|
|
Shares; Issued and Outstanding - 84,157,220 Shares
|
|
|
|
|
|
|
|
|
and 83,661,969 Shares, Respectively
|
|
|
|
$84,157
|
|
|
$83,662
|
|
Paid in Capital
|
|
|
|
716,144
|
|
|
687,684
|
|
Earnings Reinvested in the Business
|
|
|
|
1,614,361
|
|
|
1,442,617
|
|
Accumulated Other Comprehensive Loss
|
|
|
|
(3,979
|
)
|
|
(19,234
|
)
|
Total Comprehensive Shareholders' Equity
|
|
|
|
2,410,683
|
|
|
2,194,729
|
|
Long-Term Debt, Net of Current Portion
|
|
|
|
1,649,000
|
|
|
1,649,000
|
|
Total Capitalization
|
|
|
|
4,059,683
|
|
|
3,843,729
|
|
|
|
|
|
|
|
|
|
|
Current and Accrued Liabilities:
|
|
|
|
|
|
|
|
|
Notes Payable to Banks and Commercial Paper
|
|
|
|
85,600
|
|
|
—
|
|
Current Portion of Long-Term Debt
|
|
|
|
—
|
|
|
—
|
|
Accounts Payable
|
|
|
|
136,674
|
|
|
105,283
|
|
Amounts Payable to Customers
|
|
|
|
33,745
|
|
|
12,828
|
|
Dividends Payable
|
|
|
|
32,400
|
|
|
31,373
|
|
Interest Payable on Long-Term Debt
|
|
|
|
29,960
|
|
|
29,960
|
|
Customer Advances
|
|
|
|
19,005
|
|
|
21,959
|
|
Customer Security Deposits
|
|
|
|
15,761
|
|
|
16,183
|
|
Other Accruals and Current Liabilities
|
|
|
|
136,672
|
|
|
83,946
|
|
Fair Value of Derivative Financial Instruments
|
|
|
|
759
|
|
|
639
|
|
Total Current and Accrued Liabilities
|
|
|
|
490,576
|
|
|
302,171
|
|
|
|
|
|
|
|
|
|
|
Deferred Credits:
|
|
|
|
|
|
|
|
|
Deferred Income Taxes
|
|
|
|
1,456,283
|
|
|
1,347,007
|
|
Taxes Refundable to Customers
|
|
|
|
91,736
|
|
|
85,655
|
|
Unamortized Investment Tax Credit
|
|
|
|
1,145
|
|
|
1,579
|
|
Cost of Removal Regulatory Liability
|
|
|
|
173,199
|
|
|
157,622
|
|
Other Regulatory Liabilities
|
|
|
|
81,152
|
|
|
61,549
|
|
Pension and Other Post-Retirement Liabilities
|
|
|
|
134,202
|
|
|
158,014
|
|
Asset Retirement Obligations
|
|
|
|
117,713
|
|
|
119,511
|
|
Other Deferred Credits
|
|
|
|
133,908
|
|
|
141,510
|
|
Total Deferred Credits
|
|
|
|
2,189,338
|
|
|
2,072,447
|
|
Commitments and Contingencies
|
|
|
|
—
|
|
|
—
|
|
Total Capitalization and Liabilities
|
|
|
|
$6,739,597
|
|
|
$6,218,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
(Thousands of Dollars)
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
Net Income Available for Common Stock
|
|
|
|
$
|
299,413
|
|
|
$
|
260,001
|
|
Adjustments to Reconcile Net Income to Net Cash
|
|
|
|
|
|
|
|
|
Provided by Operating Activities:
|
|
|
|
|
|
|
|
|
Depreciation, Depletion and Amortization
|
|
|
|
383,781
|
|
|
326,760
|
|
Deferred Income Taxes
|
|
|
|
142,415
|
|
|
167,887
|
|
Excess Tax Benefits Associated with Stock-Based Compensation Awards
|
|
|
|
(4,641
|
)
|
|
(675
|
)
|
Stock-Based Compensation
|
|
|
|
11,763
|
|
|
12,446
|
|
Other
|
|
|
|
14,063
|
|
|
14,965
|
|
Change in:
|
|
|
|
|
|
|
|
|
Hedging Collateral Deposits
|
|
|
|
(1,640
|
)
|
|
(730
|
)
|
Receivables and Unbilled Revenue
|
|
|
|
(22,781
|
)
|
|
(17,135
|
)
|
Gas Stored Underground and Materials and Supplies
|
|
|
|
13,285
|
|
|
(3,016
|
)
|
Unrecovered Purchased Gas Costs
|
|
|
|
12,408
|
|
|
(12,408
|
)
|
Other Current Assets
|
|
|
|
(3,630
|
)
|
|
(109
|
)
|
Accounts Payable
|
|
|
|
15,149
|
|
|
8,303
|
|
Amounts Payable to Customers
|
|
|
|
20,917
|
|
|
(7,136
|
)
|
Customer Advances
|
|
|
|
(2,954
|
)
|
|
(2,096
|
)
|
Customer Security Deposits
|
|
|
|
(422
|
)
|
|
(1,759
|
)
|
Other Accruals and Current Liabilities
|
|
|
|
6,872
|
|
|
666
|
|
Other Assets
|
|
|
|
18,513
|
|
|
(5,757
|
)
|
Other Liabilities
|
|
|
|
6,879
|
|
|
(1,635
|
)
|
Net Cash Provided by Operating Activities
|
|
|
|
$
|
909,390
|
|
|
$
|
738,572
|
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
|
|
$
|
(914,417
|
)
|
|
$
|
(703,461
|
)
|
Other
|
|
|
|
5,982
|
|
|
(2,522
|
)
|
Net Cash Used in Investing Activities
|
|
|
|
$
|
(908,435
|
)
|
|
$
|
(705,983
|
)
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
Changes in Notes Payable to Banks and Commercial Paper
|
|
|
|
$
|
85,600
|
|
|
$
|
(171,000
|
)
|
Excess Tax Benefits Associated with Stock-Based Compensation Awards
|
|
|
|
4,641
|
|
|
675
|
|
Reduction of Long-Term Debt
|
|
|
|
—
|
|
|
(250,000
|
)
|
Net Proceeds From Issuance of Long-Term Debt
|
|
|
|
—
|
|
|
495,415
|
|
Dividends Paid on Common Stock
|
|
|
|
(126,642
|
)
|
|
(122,710
|
)
|
Net Proceeds From Issuance of Common Stock
|
|
|
|
7,474
|
|
|
5,395
|
|
Net Cash Used in Financing Activities
|
|
|
|
$
|
(28,927
|
)
|
|
$
|
(42,225
|
)
|
|
|
|
|
|
|
|
|
|
Net Decrease in Cash and Temporary Cash Investments
|
|
|
|
(27,972
|
)
|
|
(9,636
|
)
|
Cash and Temporary Cash Investments at Beginning of Period
|
|
|
|
64,858
|
|
|
74,494
|
|
Cash and Temporary Cash Investments at September 30
|
|
|
|
$
|
36,886
|
|
|
$
|
64,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UPSTREAM BUSINESS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
|
Three Months Ended
September 30,
|
|
Twelve Months Ended
September 30,
|
EXPLORATION AND PRODUCTION SEGMENT
|
|
|
|
2014
|
|
2013
|
|
Variance
|
|
2014
|
|
2013
|
|
Variance
|
Total Operating Revenues
|
|
|
|
$
|
209,967
|
|
$
|
184,195
|
|
$
|
25,772
|
|
|
$
|
804,096
|
|
$
|
702,937
|
|
$
|
101,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and Administrative Expense
|
|
|
|
15,783
|
|
15,073
|
|
710
|
|
|
63,804
|
|
62,162
|
|
1,642
|
|
Lease Operating and Transportation Expense
|
|
|
|
46,684
|
|
31,967
|
|
14,717
|
|
|
165,534
|
|
119,243
|
|
46,291
|
|
All Other Operation and Maintenance Expense
|
|
|
|
3,459
|
|
2,454
|
|
1,005
|
|
|
14,521
|
|
11,950
|
|
2,571
|
|
Property, Franchise and Other Taxes
|
|
|
|
5,223
|
|
5,295
|
|
(72
|
)
|
|
20,765
|
|
17,199
|
|
3,566
|
|
Depreciation, Depletion and Amortization
|
|
|
|
81,031
|
|
65,150
|
|
15,881
|
|
|
296,210
|
|
243,431
|
|
52,779
|
|
|
|
|
|
152,180
|
|
119,939
|
|
32,241
|
|
|
560,834
|
|
453,985
|
|
106,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
57,787
|
|
64,256
|
|
(6,469
|
)
|
|
243,262
|
|
248,952
|
|
(5,690
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
604
|
|
312
|
|
292
|
|
|
1,909
|
|
1,501
|
|
408
|
|
Other Interest Expense
|
|
|
|
(10,584
|
)
|
(10,566
|
)
|
(18)
|
|
(42,232
|
)
|
(39,745
|
)
|
(2,487
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
|
|
|
47,807
|
|
54,002
|
|
(6,195
|
)
|
|
202,939
|
|
210,708
|
|
(7,769
|
)
|
Income Tax Expense
|
|
|
|
14,146
|
|
24,736
|
|
(10,590
|
)
|
|
81,370
|
|
95,317
|
|
(13,947
|
)
|
Net Income
|
|
|
|
$
|
33,661
|
|
$
|
29,266
|
|
$
|
4,395
|
|
|
$
|
121,569
|
|
$
|
115,391
|
|
$
|
6,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share (Diluted)
|
|
|
|
$
|
0.40
|
|
$
|
0.35
|
|
$
|
0.05
|
|
|
$
|
1.43
|
|
$
|
1.37
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDSTREAM BUSINESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
|
Three Months Ended
September 30,
|
|
Twelve Months Ended
September 30,
|
PIPELINE AND STORAGE SEGMENT
|
|
|
|
2014
|
|
2013
|
|
Variance
|
|
2014
|
|
2013
|
|
Variance
|
Revenues from External Customers
|
|
|
|
$
|
47,835
|
|
$
|
45,288
|
|
$
|
2,547
|
|
|
$
|
200,664
|
|
$
|
178,184
|
|
$
|
22,480
|
|
Intersegment Revenues
|
|
|
|
20,280
|
|
21,207
|
|
(927
|
)
|
|
83,744
|
|
89,424
|
|
(5,680
|
)
|
Total Operating Revenues
|
|
|
|
68,115
|
|
66,495
|
|
1,620
|
|
|
284,408
|
|
267,608
|
|
16,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
|
596
|
|
525
|
|
71
|
|
|
1,878
|
|
1,573
|
|
305
|
|
Operation and Maintenance
|
|
|
|
18,714
|
|
22,209
|
|
(3,495
|
)
|
|
72,624
|
|
82,351
|
|
(9,727
|
)
|
Property, Franchise and Other Taxes
|
|
|
|
6,232
|
|
5,876
|
|
356
|
|
|
23,884
|
|
22,458
|
|
1,426
|
|
Depreciation, Depletion and Amortization
|
|
|
|
9,469
|
|
8,997
|
|
472
|
|
|
36,642
|
|
35,156
|
|
1,486
|
|
|
|
|
|
35,011
|
|
37,607
|
|
(2,596
|
)
|
|
135,028
|
|
141,538
|
|
(6,510
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
33,104
|
|
28,888
|
|
4,216
|
|
|
149,380
|
|
126,070
|
|
23,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
96
|
|
37
|
|
59
|
|
|
284
|
|
193
|
|
91
|
|
Other Income
|
|
|
|
988
|
|
256
|
|
732
|
|
|
1,423
|
|
1,856
|
|
(433
|
)
|
Other Interest Expense
|
|
|
|
(6,414
|
)
|
(6,705
|
)
|
291
|
|
|
(26,428
|
)
|
(26,248
|
)
|
(180
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
|
|
|
27,774
|
|
22,476
|
|
5,298
|
|
|
124,659
|
|
101,871
|
|
22,788
|
|
Income Tax Expense
|
|
|
|
8,659
|
|
7,034
|
|
1,625
|
|
|
47,100
|
|
38,626
|
|
8,474
|
|
Net Income
|
|
|
|
$
|
19,115
|
|
$
|
15,442
|
|
$
|
3,673
|
|
|
$
|
77,559
|
|
$
|
63,245
|
|
$
|
14,314
|
... |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share (Diluted)
|
|
|
|
$
|
0.22
|
|
$
|
0.18
|
|
$
|
0.04
|
|
|
$
|
0.91
|
|
$
|
0.75
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
GATHERING SEGMENT
|
|
|
|
2014
|
|
2013
|
|
Variance
|
|
2014
|
|
2013
|
|
Variance
|
Revenues from External Customers
|
|
|
|
$
|
(100
|
)
|
$
|
456
|
|
$
|
(556
|
)
|
|
$
|
673
|
|
$
|
1,324
|
|
$
|
(651
|
)
|
Intersegment Revenues
|
|
|
|
21,396
|
|
9,835
|
|
11,561
|
|
|
69,937
|
|
33,457
|
|
36,480
|
|
Total Operating Revenues
|
|
|
|
21,296
|
|
10,291
|
|
11,005
|
|
|
70,610
|
|
34,781
|
|
35,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance
|
|
|
|
1,784
|
|
1,447
|
|
337
|
|
|
6,383
|
|
4,727
|
|
1,656
|
|
Property, Franchise and Other Taxes
|
|
|
|
43
|
|
44
|
|
(1
|
)
|
|
167
|
|
277
|
|
(110
|
)
|
Depreciation, Depletion and Amortization
|
|
|
|
2,004
|
|
1,138
|
|
866
|
|
|
6,116
|
|
3,945
|
|
2,171
|
|
|
|
|
|
3,831
|
|
2,629
|
|
1,202
|
|
|
12,666
|
|
8,949
|
|
3,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
17,465
|
|
7,662
|
|
9,803
|
|
|
57,944
|
|
25,832
|
|
32,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
34
|
|
22
|
|
12
|
|
|
120
|
|
55
|
|
65
|
|
Other Income
|
|
|
|
2
|
|
3
|
|
(1
|
)
|
|
7
|
|
4
|
|
3
|
|
Other Interest Expense
|
|
|
|
(506
|
)
|
(589
|
)
|
83
|
|
|
(1,726
|
)
|
(2,283
|
)
|
557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
|
|
|
16,995
|
|
7,098
|
|
9,897
|
|
|
56,345
|
|
23,608
|
|
32,737
|
|
Income Tax Expense
|
|
|
|
6,474
|
|
3,219
|
|
3,255
|
|
|
23,636
|
|
10,287
|
|
13,349
|
|
Net Income
|
|
|
|
$
|
10,521
|
|
$
|
3,879
|
|
$
|
6,642
|
|
|
$
|
32,709
|
|
$
|
13,321
|
|
$
|
19,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share (Diluted)
|
|
|
|
$
|
0.12
|
|
$
|
0.05
|
|
$
|
0.07
|
|
|
$
|
0.39
|
|
$
|
0.16
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DOWNSTREAM BUSINESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
|
Three Months Ended
September 30,
|
|
Twelve Months Ended
September 30,
|
UTILITY SEGMENT
|
|
|
|
2014
|
|
2013
|
|
Variance
|
|
2014
|
|
2013
|
|
Variance
|
Revenues from External Customers
|
|
|
|
$
|
79,295
|
|
$
|
77,108
|
|
$
|
2,187
|
|
|
$
|
831,156
|
|
$
|
730,319
|
|
$
|
100,837
|
|
Intersegment Revenues
|
|
|
|
1,897
|
|
2,008
|
|
(111
|
)
|
|
18,462
|
|
16,020
|
|
2,442
|
|
Total Operating Revenues
|
|
|
|
81,192
|
|
79,116
|
|
2,076
|
|
|
849,618
|
|
746,339
|
|
103,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
|
22,893
|
|
24,797
|
|
(1,904
|
)
|
|
446,883
|
|
362,250
|
|
84,633
|
|
Operation and Maintenance
|
|
|
|
40,628
|
|
34,940
|
|
5,688
|
|
|
193,354
|
|
177,597
|
|
15,757
|
|
Property, Franchise and Other Taxes
|
|
|
|
9,795
|
|
9,400
|
|
395
|
|
|
44,738
|
|
42,323
|
|
2,415
|
|
Depreciation, Depletion and Amortization
|
|
|
|
11,099
|
|
10,693
|
|
406
|
|
|
43,594
|
|
42,729
|
|
865
|
|
|
|
|
|
84,415
|
|
79,830
|
|
4,585
|
|
|
728,569
|
|
624,899
|
|
103,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
|
(3,223
|
)
|
(714
|
)
|
(2,509
|
)
|
|
121,049
|
|
121,440
|
|
(391
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
2,805
|
|
2,423
|
|
382
|
|
|
3,010
|
|
3,417
|
|
(407
|
)
|
Other Income
|
|
|
|
510
|
|
270
|
|
240
|
|
|
1,611
|
|
970
|
|
641
|
|
Other Interest Expense
|
|
|
|
(6,710
|
)
|
(6,782
|
)
|
72
|
|
|
(27,693
|
)
|
(29,076
|
)
|
1,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
|
(6,618
|
)
|
(4,803
|
)
|
(1,815
|
)
|
|
97,977
|
|
96,751
|
|
1,226
|
|
Income Tax Expense (Benefit)
|
|
|
|
(6,091
|
)
|
(5,465
|
)
|
(626
|
)
|
|
33,918
|
|
31,065
|
|
2,853
|
|
Net Income
|
|
|
|
$
|
(527
|
)
|
$
|
662
|
|
$
|
(1,189
|
)
|
|
$
|
64,059
|
|
$
|
65,686
|
|
$
|
(1,627
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share (Diluted)
|
|
|
|
$
|
(0.01
|
)
|
$
|
0.01
|
|
$
|
(0.02
|
)
|
|
$
|
0.75
|
|
$
|
0.78
|
|
$
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
ENERGY MARKETING SEGMENT
|
|
|
|
2014
|
|
2013
|
|
Variance
|
|
2014
|
|
2013
|
|
Variance
|
Revenues from External Customers
|
|
|
|
$
|
28,658
|
|
$
|
29,707
|
|
$
|
(1,049
|
)
|
|
$
|
271,993
|
|
$
|
211,990
|
|
$
|
60,003
|
|
Intersegment Revenues
|
|
|
|
221
|
|
305
|
|
(84
|
)
|
|
1,159
|
|
1,384
|
|
(225
|
)
|
Total Operating Revenues
|
|
|
|
28,879
|
|
30,012
|
|
(1,133
|
)
|
|
273,152
|
|
213,374
|
|
59,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
|
26,717
|
|
30,683
|
|
(3,966
|
)
|
|
256,625
|
|
200,226
|
|
56,399
|
|
Operation and Maintenance
|
|
|
|
1,526
|
|
1,609
|
|
(83
|
)
|
|
6,176
|
|
6,099
|
|
77
|
|
Property, Franchise and Other Taxes
|
|
|
|
5
|
|
9
|
|
(4
|
)
|
|
16
|
|
86
|
|
(70
|
)
|
Depreciation, Depletion and Amortization
|
|
|
|
51
|
|
47
|
|
4
|
|
|
197
|
|
123
|
|
74
|
|
|
|
|
|
28,299
|
|
32,348
|
|
(4,049
|
)
|
|
263,014
|
|
206,534
|
|
56,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
|
580
|
|
(2,336
|
)
|
2,916
|
|
|
10,138
|
|
6,840
|
|
3,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
59
|
|
34
|
|
25
|
|
|
173
|
|
169
|
|
4
|
|
Other Income
|
|
|
|
26
|
|
13
|
|
13
|
|
|
112
|
|
66
|
|
46
|
|
Other Interest Expense
|
|
|
|
(8
|
)
|
(8
|
)
|
0
|
|
|
(31
|
)
|
(36
|
)
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
|
657
|
|
(2,297
|
)
|
2,954
|
|
|
10,392
|
|
7,039
|
|
3,353
|
|
Income Tax Expense (Benefit)
|
|
|
|
(4
|
)
|
(1,145
|
)
|
1,141
|
|
|
3,761
|
|
2,450
|
|
1,311
|
|
Net Income (Loss)
|
|
|
|
$
|
661
|
|
$
|
(1,152
|
)
|
$
|
1,813
|
|
|
$
|
6,631
|
|
$
|
4,589
|
|
$
|
2,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Share (Diluted)
|
|
|
|
$
|
0.01
|
|
$
|
(0.01
|
)
|
$
|
0.02
|
|
|
$
|
0.08
|
|
$
|
0.05
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
|
Three Months Ended
September 30,
|
|
Twelve Months Ended
September 30,
|
ALL OTHER
|
|
|
|
2014
|
|
2013
|
|
Variance
|
|
2014
|
|
2013
|
|
Variance
|
Total Operating Revenues
|
|
|
|
$
|
738
|
|
$
|
1,880
|
|
$
|
(1,142
|
)
|
|
$
|
3,532
|
|
$
|
3,910
|
|
$
|
(378
|
)
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance
|
|
|
|
223
|
|
355
|
|
(132
|
)
|
|
1,098
|
|
1,263
|
|
(165
|
)
|
Property, Franchise and Other Taxes
|
|
|
|
175
|
|
100
|
|
75
|
|
|
656
|
|
581
|
|
75
|
|
Depreciation, Depletion and Amortization
|
|
|
|
84
|
|
33
|
|
51
|
|
|
344
|
|
577
|
|
(233
|
)
|
|
|
|
|
482
|
|
488
|
|
(6
|
)
|
|
2,098
|
|
2,421
|
|
(323
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
256
|
|
1,392
|
|
(1,136
|
)
|
|
1,434
|
|
1,489
|
|
(55
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
26
|
|
21
|
|
5
|
|
|
106
|
|
115
|
|
(9
|
)
|
Other Income (Loss)
|
|
|
|
42
|
|
(132
|
)
|
174
|
|
|
448
|
|
(179
|
)
|
627
|
|
Other Interest Expense
|
|
|
|
(4
|
)
|
(1
|
)
|
(3
|
)
|
|
(6
|
)
|
(2
|
)
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
|
|
|
320
|
|
1,280
|
|
(960
|
)
|
|
1,982
|
|
1,423
|
|
559
|
|
Income Tax Expense
|
|
|
|
137
|
|
393
|
|
(256
|
)
|
|
822
|
|
529
|
|
293
|
|
Net Income
|
|
|
|
$
|
183
|
|
$
|
887
|
|
$
|
(704
|
)
|
|
$
|
1,160
|
|
$
|
894
|
|
$
|
266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share (Diluted)
|
|
|
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
—
|
|
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
CORPORATE
|
|
|
|
2014
|
|
2013
|
|
Variance
|
|
2014
|
|
2013
|
|
Variance
|
Revenues from External Customers
|
|
|
|
$
|
230
|
|
$
|
229
|
|
$
|
1
|
|
|
$
|
967
|
|
$
|
887
|
|
$
|
80
|
|
Intersegment Revenues
|
|
|
|
946
|
|
957
|
|
(11
|
)
|
|
3,799
|
|
3,419
|
|
380
|
|
Total Operating Revenues
|
|
|
|
1,176
|
|
1,186
|
|
(10
|
)
|
|
4,766
|
|
4,306
|
|
460
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance
|
|
|
|
4,850
|
|
5,342
|
|
(492
|
)
|
|
17,137
|
|
16,785
|
|
352
|
|
Property, Franchise and Other Taxes
|
|
|
|
124
|
|
(1,843
|
)
|
1,967
|
|
|
485
|
|
(493
|
)
|
978
|
|
Depreciation, Depletion and Amortization
|
|
|
|
167
|
|
199
|
|
(32
|
)
|
|
678
|
|
799
|
|
(121
|
)
|
|
|
|
|
5,141
|
|
3,698
|
|
1,443
|
|
|
18,300
|
|
17,091
|
|
1,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss
|
|
|
|
(3,965
|
)
|
(2,512
|
)
|
(1,453
|
)
|
|
(13,534
|
)
|
(12,785
|
)
|
(749
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
24,074
|
|
23,891
|
|
183
|
|
|
96,838
|
|
95,141
|
|
1,697
|
|
Other Income
|
|
|
|
1,047
|
|
622
|
|
425
|
|
|
5,860
|
|
1,980
|
|
3,880
|
|
Interest Expense on Long-Term Debt
|
|
|
|
(22,427
|
)
|
(23,042
|
)
|
615
|
|
|
(90,194
|
)
|
(90,273
|
)
|
79
|
|
Other Interest Expense
|
|
|
|
(1,246
|
)
|
(539
|
)
|
(707
|
)
|
|
(4,237
|
)
|
(2,704
|
)
|
(1,533
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Before Income Taxes
|
|
|
|
(2,517
|
)
|
(1,580
|
)
|
(937
|
)
|
|
(5,267
|
)
|
(8,641
|
)
|
3,374
|
|
Income Tax Expense (Benefit)
|
|
|
|
3,666
|
|
(438
|
)
|
4,104
|
|
|
(993
|
)
|
(5,516
|
)
|
4,523
|
|
Net Loss
|
|
|
|
$
|
(6,183
|
)
|
$
|
(1,142
|
)
|
$
|
(5,041
|
)
|
|
$
|
(4,274
|
)
|
$
|
(3,125
|
)
|
$
|
(1,149
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Per Share (Diluted)
|
|
|
|
$
|
(0.07
|
)
|
$
|
(0.02
|
)
|
$
|
(0.05
|
)
|
|
$
|
(0.05
|
)
|
$
|
(0.04
|
)
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
INTERSEGMENT ELIMINATIONS
|
|
|
|
2014
|
|
2013
|
|
Variance
|
|
2014
|
|
2013
|
|
Variance
|
Intersegment Revenues
|
|
|
|
$
|
(44,740
|
)
|
$
|
(34,312
|
)
|
$
|
(10,428
|
)
|
|
$
|
(177,101
|
)
|
$
|
(143,704
|
)
|
$
|
(33,397
|
)
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
|
(21,373
|
)
|
(22,473
|
)
|
1,100
|
|
|
(99,548
|
)
|
(103,617
|
)
|
4,069
|
|
Operation and Maintenance
|
|
|
|
(23,367
|
)
|
(11,839
|
)
|
(11,528
|
)
|
|
(77,553
|
)
|
(40,087
|
)
|
(37,466
|
)
|
|
|
|
|
(44,740
|
)
|
(34,312
|
)
|
(10,428
|
)
|
|
(177,101
|
)
|
(143,704
|
)
|
(33,397
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
(24,849
|
)
|
(24,249
|
)
|
(600
|
)
|
|
(98,270
|
)
|
(96,256
|
)
|
(2,014
|
)
|
Other Interest Expense
|
|
|
|
24,849
|
|
24,249
|
|
600
|
|
|
98,270
|
|
96,256
|
|
2,014
|
|
Net Income
|
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share (Diluted)
|
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION (Continued)
|
(Thousands of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
(Decrease)
|
|
2014
|
|
|
|
2013
|
|
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production
|
|
|
|
$
|
158,340
|
|
(1) |
|
$
|
148,120
|
|
(2) |
|
$
|
10,220
|
|
|
$
|
602,705
|
|
(1)(2) |
|
$
|
533,129
|
|
(2)(3) |
|
$
|
69,576
|
|
Pipeline and Storage
|
|
|
|
74,884
|
|
(1) |
|
15,144
|
|
(2) |
|
59,740
|
|
|
139,821
|
|
(1)(2) |
|
56,144
|
|
(2)(3) |
|
83,677
|
|
Gathering
|
|
|
|
44,561
|
|
(1) |
|
19,944
|
|
(2) |
|
24,617
|
|
|
137,799
|
|
(1)(2) |
|
54,792
|
|
(2)(3) |
|
83,007
|
|
Utility
|
|
|
|
27,895
|
|
(1) |
|
29,002
|
|
(2) |
|
(1,107
|
)
|
|
88,810
|
|
(1)(2) |
|
71,970
|
|
(2)(3) |
|
16,840
|
|
Energy Marketing
|
|
|
|
71
|
|
|
|
67
|
|
|
|
4
|
|
|
264
|
|
|
|
595
|
|
|
|
(331
|
)
|
Total Reportable Segments
|
|
|
|
305,751
|
|
|
|
212,277
|
|
|
|
93,474
|
|
|
969,399
|
|
|
|
716,630
|
|
|
|
252,769
|
|
All Other
|
|
|
|
101
|
|
|
|
215
|
|
|
|
(114
|
)
|
|
274
|
|
|
|
307
|
|
|
|
(33
|
)
|
Corporate
|
|
|
|
19
|
|
|
|
76
|
|
|
|
(57
|
)
|
|
234
|
|
|
|
160
|
|
|
|
74
|
|
Total Capital Expenditures
|
|
|
|
$
|
305,871
|
|
|
|
$
|
212,568
|
|
|
|
$
|
93,303
|
|
|
$
|
969,907
|
|
|
|
$
|
717,097
|
|
|
|
$
|
252,810
|
|
(1) |
|
|
Capital expenditures for the quarter and year ended September 30,
2014, include accounts payable and accrued liabilities related to
capital expenditures of $80.1 million, $28.1 million, $20.1 million,
and $8.3 million in the Exploration and Production segment, Pipeline
and Storage segment, Gathering segment and Utility segment,
respectively. These amounts have been excluded from the Consolidated
Statement of Cash Flows at September 30, 2014, since they represent
non-cash investing activities at that date.
|
|
|
|
|
(2) |
|
|
Capital expenditures for the year ended September 30, 2014, exclude
capital expenditures of $58.5 million, $5.6 million, $6.7 million
and $10.3 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility segment,
respectively. These amounts were in accounts payable and accrued
liabilities at September 30, 2013 and paid during the year ended
September 30, 2014. These amounts were excluded from the
Consolidated Statement of Cash Flows at September 30, 2013, since
they represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at September 30, 2014.
|
|
|
|
|
(3) |
|
|
Capital expenditures for the year ended September 30, 2013, exclude
capital expenditures of $38.9 million, $12.7 million, $12.7 million
and $3.2 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, 2012 and paid during the year ended
September 30, 2013. These amounts were excluded from the
Consolidated Statements of Cash Flows at September 30, 2012, since
they represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at September 30, 2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEGREE DAYS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Colder
|
|
|
|
|
|
|
|
|
|
|
(Warmer) Than:
|
Three Months Ended September 30
|
|
|
|
Normal
|
|
2014
|
|
2013
|
|
Normal (1) |
|
Last Year (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo, NY
|
|
|
|
162
|
|
130
|
|
168
|
|
(19.8)
|
|
(22.6)
|
Erie, PA
|
|
|
|
124
|
|
117
|
|
132
|
|
(5.6)
|
|
(11.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo, NY
|
|
|
|
6,617
|
|
7,087
|
|
6,139
|
|
7.1
|
|
15.4
|
Erie, PA
|
|
|
|
6,147
|
|
6,742
|
|
5,888
|
|
9.7
|
|
14.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Percents compare actual 2014 degree days to normal
degree days and actual 2014 degree days to actual 2013 degree days.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
2014
|
|
|
2013
|
|
|
(Decrease)
|
|
2014
|
|
|
2013
|
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Production/Prices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production (MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
40,456
|
|
|
28,116
|
|
|
12,340
|
|
|
139,097
|
|
|
100,633
|
|
|
38,464
|
|
West Coast
|
|
|
|
808
|
|
|
819
|
|
|
(11
|
)
|
|
3,210
|
|
|
3,060
|
|
|
150
|
|
Total Production
|
|
|
|
41,264
|
|
|
28,935
|
|
|
12,329
|
|
|
142,307
|
|
|
103,693
|
|
|
38,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Mcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
$
|
2.84
|
|
|
$
|
3.26
|
|
|
$
|
(0.42
|
)
|
|
$
|
3.55
|
|
|
$
|
3.49
|
|
|
$
|
0.06
|
|
West Coast
|
|
|
|
6.42
|
|
|
6.62
|
|
|
(0.20
|
)
|
|
6.75
|
|
|
6.61
|
|
|
0.14
|
|
Weighted Average
|
|
|
|
2.91
|
|
|
3.35
|
|
|
(0.44
|
)
|
|
3.62
|
|
|
3.58
|
|
|
0.04
|
|
Weighted Average after Hedging
|
|
|
|
3.19
|
|
|
3.99
|
|
|
(0.80
|
)
|
|
3.56
|
|
|
4.10
|
|
|
(0.54
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Production/Prices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production (Thousands of Barrels)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
8
|
|
|
7
|
|
|
1
|
|
|
31
|
|
|
28
|
|
|
3
|
|
West Coast
|
|
|
|
774
|
|
|
710
|
|
|
64
|
|
|
3,005
|
|
|
2,803
|
|
|
202
|
|
Total Production
|
|
|
|
782
|
|
|
717
|
|
|
65
|
|
|
3,036
|
|
|
2,831
|
|
|
205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Barrel)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
$
|
95.06
|
|
|
$
|
105.96
|
|
|
$
|
(10.90
|
)
|
|
$
|
96.34
|
|
|
$
|
96.48
|
|
|
$
|
(0.14
|
)
|
West Coast
|
|
|
|
93.72
|
|
|
105.18
|
|
|
(11.46
|
)
|
|
98.25
|
|
|
103.14
|
|
|
(4.89
|
)
|
Weighted Average
|
|
|
|
93.73
|
|
|
105.19
|
|
|
(11.46
|
)
|
|
98.23
|
|
|
103.07
|
|
|
(4.84
|
)
|
Weighted Average after Hedging
|
|
|
|
93.70
|
|
|
99.20
|
|
|
(5.50
|
)
|
|
95.55
|
|
|
98.21
|
|
|
(2.66
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production (Mmcfe)
|
|
|
|
45,956
|
|
|
33,237
|
|
|
12,719
|
|
|
160,523
|
|
|
120,679
|
|
|
39,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating Performance Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General & Administrative Expense per Mcfe (1) |
|
|
|
$
|
0.34
|
|
|
$
|
0.45
|
|
|
$
|
(0.11
|
)
|
|
$
|
0.40
|
|
|
$
|
0.52
|
|
|
$
|
(0.12
|
)
|
Lease Operating and Transportation Expense per Mcfe (1)(2) |
|
|
|
$
|
1.02
|
|
|
$
|
0.96
|
|
|
$
|
0.06
|
|
|
$
|
1.03
|
|
|
$
|
0.99
|
|
|
$
|
0.04
|
|
Depreciation, Depletion & Amortization per Mcfe (1) |
|
|
|
$
|
1.76
|
|
|
$
|
1.96
|
|
|
$
|
(0.20
|
)
|
|
$
|
1.85
|
|
|
$
|
2.02
|
|
|
$
|
(0.17
|
)
|
(1) |
|
|
Refer to page 18 for the General and Administrative Expense, Lease
Operating Expense and Depreciation, Depletion, and Amortization
Expense for the Exploration and Production segment.
|
(2) |
|
|
Amounts include transportation expense of $0.49 and $0.34 per Mcfe
for the three months ended September 30, 2014 and September 30,
2013, respectively. Amounts include transportation expense of $0.46
and $0.34 per Mcfe for the twelve months ended September 30, 2014
and September 30, 2013, respectively.
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION
|
|
|
|
|
|
|
|
|
Hedging Summary for Fiscal 2015
|
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
Average Hedge Price
|
Oil Swaps
|
|
|
|
|
|
|
|
Midway Sunset (MWSS)
|
|
258,000
|
|
BBL
|
|
$
|
92.10 / BBL
|
Brent
|
|
903,000
|
|
BBL
|
|
$
|
98.42 / BBL
|
NYMEX
|
|
396,000
|
|
BBL
|
|
$
|
90.14 / BBL
|
Total
|
|
1,557,000
|
|
BBL
|
|
$
|
95.27 / BBL
|
|
|
|
|
|
|
|
|
Gas Swaps
|
|
|
|
|
|
|
|
NYMEX
|
|
70,690,000
|
|
MMBTU
|
|
$
|
4.16 / MMBTU
|
Dominion Transmission Appalachian (DOM)
|
|
24,840,000
|
|
MMBTU
|
|
$
|
3.74 / MMBTU
|
Southern California City Gate (SoCal)
|
|
1,200,000
|
|
MMBTU
|
|
$
|
4.35 / MMBTU
|
Fixed Price Physical Sales
|
|
16,700,000
|
|
MMBTU
|
|
$
|
3.77 / MMBTU
|
Total
|
|
113,430,000
|
|
MMBTU
|
|
$
|
4.01 / MMBTU
|
|
|
|
|
|
|
|
|
Hedging Summary for Fiscal 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
Average Hedge Price
|
Oil Swaps
|
|
|
|
|
|
|
|
MWSS
|
|
36,000
|
|
BBL
|
|
$
|
92.10 / BBL
|
Brent
|
|
933,000
|
|
BBL
|
|
$
|
95.18 / BBL
|
NYMEX
|
|
300,000
|
|
BBL
|
|
$
|
86.09 / BBL
|
Total
|
|
1,269,000
|
|
BBL
|
|
$
|
92.95 / BBL
|
|
|
|
|
|
|
|
|
Gas Swaps
|
|
|
|
|
|
|
|
NYMEX
|
|
32,350,000
|
|
MMBTU
|
|
$
|
4.24 / MMBTU
|
DOM
|
|
18,840,000
|
|
MMBTU
|
|
$
|
3.78 / MMBTU
|
Michigan Consolidated City Gate (Mich Con)
|
|
9,000,000
|
|
MMBTU
|
|
$
|
4.10 / MMBTU
|
Dawn Ontario (Dawn)
|
|
5,490,000
|
|
MMBTU
|
|
$
|
4.36 / MMBTU
|
Fixed Price Physical Sales
|
|
18,300,000
|
|
MMBTU
|
|
$
|
3.77 / MMBTU
|
Total
|
|
83,980,000
|
|
MMBTU
|
|
$
|
4.03 / MMBTU
|
|
|
|
|
|
|
|
|
Hedging Summary for Fiscal 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
Average Hedge Price
|
Oil Swaps
|
|
|
|
|
|
|
|
Brent
|
|
384,000
|
|
BBL
|
|
$
|
92.30 / BBL
|
|
|
|
|
|
|
|
|
Gas Swaps
|
|
|
|
|
|
|
|
NYMEX
|
|
23,130,000
|
|
MMBTU
|
|
$
|
4.50 / MMBTU
|
DOM
|
|
12,720,000
|
|
MMBTU
|
|
$
|
3.87 / MMBTU
|
Mich Con
|
|
3,000,000
|
|
MMBTU
|
|
$
|
4.10 / MMBTU
|
Dawn
|
|
7,950,000
|
|
MMBTU
|
|
$
|
4.14 / MMBTU
|
Fixed Price Physical Sales
|
|
18,250,000
|
|
MMBTU
|
|
$
|
3.77 / MMBTU
|
Total
|
|
65,050,000
|
|
MMBTU
|
|
$
|
4.11 / MMBTU
|
|
|
|
|
|
|
|
|
Hedging Summary for Fiscal 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
Average Hedge Price
|
Oil Swaps
|
|
|
|
|
|
|
|
Brent
|
|
75,000
|
|
BBL
|
|
$
|
91.00 / BBL
|
|
|
|
|
|
|
|
|
Gas Swaps
|
|
|
|
|
|
|
|
NYMEX
|
|
5,550,000
|
|
MMBTU
|
|
$
|
4.59 / MMBTU
|
Fixed Price Physical Sales
|
|
1,550,000
|
|
MMBTU
|
|
$
|
3.77 / MMBTU
|
Total
|
|
7,100,000
|
|
MMBTU
|
|
$
|
4.41 / MMBTU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Wells in Process of Drilling
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
East
|
|
|
|
|
West
|
|
|
Company
|
Wells in Process - Beginning of Period
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
1.000
|
|
(1) |
|
|
0.000
|
|
|
1.000
|
Developmental
|
|
|
|
71.000
|
|
(1)(2) |
|
|
0.000
|
|
|
71.000
|
Wells Commenced
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
5.000
|
|
|
|
|
2.000
|
|
|
7.000
|
Developmental
|
|
|
|
63.000
|
|
|
|
|
90.000
|
|
|
153.000
|
Wells Completed
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
5.000
|
|
|
|
|
2.000
|
|
|
7.000
|
Developmental
|
|
|
|
53.000
|
|
|
|
|
87.000
|
|
|
140.000
|
Wells Plugged & Abandoned
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
0.000
|
|
|
|
|
0.000
|
|
|
0.000
|
Developmental
|
|
|
|
2.000
|
|
|
|
|
1.000
|
|
|
3.000
|
Wells in Process - End of Period
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
1.000
|
|
|
|
|
0.000
|
|
|
1.000
|
Developmental
|
|
|
|
79.000
|
|
|
|
|
2.000
|
|
|
81.000
|
(1) |
|
|
Gross exploratory wells were increased by 1 and developmental wells
were decreased by 1.
|
(2) |
|
|
Beginning of year number has been adjusted to remove 4 developmental
wells.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Wells in Process of Drilling
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
East
|
|
|
|
|
West
|
|
|
Company
|
Wells in Process - Beginning of Period
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
1.000
|
|
(1) |
|
|
0.000
|
|
|
1.000
|
Developmental
|
|
|
|
56.500
|
|
(1)(2) |
|
|
0.000
|
|
|
56.500
|
Wells Commenced
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
4.832
|
|
|
|
|
1.533
|
|
|
6.365
|
Developmental
|
|
|
|
63.000
|
|
|
|
|
87.720
|
|
|
150.720
|
Wells Completed
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
4.832
|
|
|
|
|
1.533
|
|
|
6.365
|
Developmental
|
|
|
|
53.000
|
|
|
|
|
84.720
|
|
|
137.720
|
Wells Plugged & Abandoned
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
0.000
|
|
|
|
|
0.000
|
|
|
0.000
|
Developmental
|
|
|
|
2.000
|
|
|
|
|
1.000
|
|
|
3.000
|
Wells in Process - End of Period
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
1.000
|
|
|
|
|
0.000
|
|
|
1.000
|
Developmental
|
|
|
|
64.500
|
|
|
|
|
2.000
|
|
|
66.500
|
(1) |
|
|
Net exploratory wells were increased by 1 and developmental wells
were decreased by 1.
|
(2) |
|
|
Beginning of year number has been adjusted to remove 4 developmental
wells (3.5 net wells).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve Quantity Information
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas MMcf
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
Appalachian
|
|
West Coast
|
|
Total
|
|
|
|
|
|
Region
|
|
Region
|
|
Company
|
Proved Developed and Undeveloped Reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2013
|
|
|
|
|
1,238,738
|
|
|
60,777
|
|
|
1,299,515
|
|
Extensions and Discoveries
|
|
|
|
|
446,821
|
|
|
—
|
|
|
446,821
|
|
Revisions of Previous Estimates
|
|
|
|
|
43,690
|
|
|
1,358
|
|
|
45,048
|
|
Production
|
|
|
|
|
(139,097
|
)
|
|
(3,210
|
)
|
|
(142,307
|
)
|
Purchases of Minerals in Place
|
|
|
|
|
33,986
|
|
|
—
|
|
|
33,986
|
|
Sales of Minerals in Place
|
|
|
|
|
(76
|
)
|
|
(103
|
)
|
|
(179
|
)
|
September 30, 2014
|
|
|
|
|
1,624,062
|
|
|
58,822
|
|
|
1,682,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved Developed Reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2013
|
|
|
|
|
807,055
|
|
|
59,862
|
|
|
866,917
|
|
September 30, 2014
|
|
|
|
|
1,119,901
|
|
|
57,907
|
|
|
1,177,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Mbbl
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
Appalachian
|
|
West Coast
|
|
Total
|
|
|
|
|
|
Region
|
|
Region
|
|
Company
|
Proved Developed and Undeveloped Reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2013
|
|
|
|
|
283
|
|
|
41,315
|
|
|
41,598
|
|
Extensions and Discoveries
|
|
|
|
|
18
|
|
|
1,521
|
|
|
1,539
|
|
Revisions of Previous Estimates
|
|
|
|
|
(17
|
)
|
|
(1,677
|
)
|
|
(1,694
|
)
|
Production
|
|
|
|
|
(31
|
)
|
|
(3,005
|
)
|
|
(3,036
|
)
|
Purchases of Minerals in Place
|
|
|
|
|
—
|
|
|
83
|
|
|
83
|
|
Sales of Minerals in Place
|
|
|
|
|
—
|
|
|
(13
|
)
|
|
(13
|
)
|
September 30, 2014
|
|
|
|
|
253
|
|
|
38,224
|
|
|
38,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved Developed Reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2013
|
|
|
|
|
283
|
|
|
38,082
|
|
|
38,365
|
|
September 30, 2014
|
|
|
|
|
253
|
|
|
37,002
|
|
|
37,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
Increase
|
|
|
|
2014
|
|
|
2013
|
|
|
(Decrease)
|
|
2014
|
|
|
2013
|
|
|
(Decrease)
|
Firm Transportation - Affiliated
|
|
|
14,362
|
|
|
11,064
|
|
|
3,298
|
|
|
110,327
|
|
|
97,702
|
|
|
12,625
|
|
Firm Transportation - Non-Affiliated
|
|
|
141,656
|
|
|
137,533
|
|
|
4,123
|
|
|
620,944
|
|
|
478,103
|
|
|
142,841
|
|
Interruptible Transportation
|
|
|
946
|
|
|
1,491
|
|
|
(545
|
)
|
|
4,724
|
|
|
3,997
|
|
|
727
|
|
|
|
|
156,964
|
|
|
150,088
|
|
|
6,876
|
|
|
735,995
|
|
|
579,802
|
|
|
156,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering Volume - (MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
Increase
|
|
|
|
2014
|
|
|
2013
|
|
|
(Decrease)
|
|
2014
|
|
|
2013
|
|
|
(Decrease)
|
Gathered Volume - Affiliated
|
|
|
41,485
|
|
|
26,678
|
|
|
14,807
|
|
|
138,726
|
|
|
93,449
|
|
|
45,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utility Throughput - (MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
Increase
|
|
|
|
2014
|
|
|
2013
|
|
|
(Decrease)
|
|
2014
|
|
|
2013
|
|
|
(Decrease)
|
Retail Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Sales
|
|
|
3,628
|
|
|
3,629
|
|
|
(1
|
)
|
|
60,101
|
|
|
52,753
|
|
|
7,348
|
|
Commercial Sales
|
|
|
476
|
|
|
461
|
|
|
15
|
|
|
8,834
|
|
|
7,486
|
|
|
1,348
|
|
Industrial Sales
|
|
|
16
|
|
|
128
|
|
|
(112
|
)
|
|
393
|
|
|
947
|
|
|
(554
|
)
|
|
|
|
4,120
|
|
|
4,218
|
|
|
(98
|
)
|
|
69,328
|
|
|
61,186
|
|
|
8,142
|
|
Off-System Sales
|
|
|
230
|
|
|
—
|
|
|
230
|
|
|
4,564
|
|
|
6,717
|
|
|
(2,153
|
)
|
Transportation
|
|
|
10,761
|
|
|
9,613
|
|
|
1,148
|
|
|
80,949
|
|
|
69,149
|
|
|
11,800
|
|
|
|
|
15,111
|
|
|
13,831
|
|
|
1,280
|
|
|
154,841
|
|
|
137,052
|
|
|
17,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Marketing Volume
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
Increase
|
|
|
|
2014
|
|
|
2013
|
|
|
(Decrease)
|
|
2014
|
|
|
2013
|
|
|
(Decrease)
|
Natural Gas (MMcf)
|
|
|
6,846
|
|
|
6,608
|
|
|
238
|
|
|
52,694
|
|
|
46,875
|
|
|
5,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
FISCAL 2015 EARNINGS GUIDANCE AND SENSITIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share sensitivity to changes
|
Fiscal 2015 (Diluted earnings per share guidance*)
|
|
|
from prices used in guidance* ^
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$0.50 change per MMBtu gas
|
|
$5 change per Bbl oil
|
|
|
Range
|
|
|
Increase
|
|
Decrease
|
|
Increase
|
|
Decrease
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Earnings
|
|
$
|
3.05
|
|
-
|
$
|
3.35
|
|
|
|
+
|
$
|
0.25
|
|
|
-
|
$
|
0.25
|
|
|
+
|
$
|
0.05
|
|
|
-
|
$
|
0.05
|
* Please refer to forward looking statement footnote beginning at
page 9 of document.
|
|
^ This sensitivity table is current as of November 6, 2014 and only
considers revenue from the Exploration and Production segment's
crude oil and natural gas sales. This revenue is based upon pricing
used in the Company's earnings forecast. For its fiscal 2015
earnings forecast, the Company is utilizing average NYMEX equivalent
commodity pricing, exclusive of basis differential, of $4.00 per
MMBtu for natural gas and $85 per Bbl for crude oil. The
sensitivities will become obsolete with the passage of time, changes
in Seneca's production forecast, changes in basis differential, as
additional hedging contracts are entered into, and with the settling
of hedge contracts at their maturity.
|
|
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
In addition to financial measures calculated in accordance with
generally accepted accounting principles (GAAP), this press release
contains information regarding Operating Results and Adjusted EBITDA,
which are non-GAAP financial measures. The Company believes that these
non-GAAP financial measures are useful to investors because they provide
an alternative method for assessing the Company's ongoing operating
results, for measuring the Company’s cash flow and 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 Operating Results as reported GAAP earnings before
items impacting comparability. The table at page 4 of this report
reconciles National Fuel's reported GAAP earnings to Operating Results
for the three and twelve months ended September 30, 2014 and 2013.
Management defines Adjusted EBITDA as reported GAAP earnings before the
following items: interest expense, depreciation, depletion and
amortization, interest and other income, impairments, items impacting
comparability and income taxes.
The following tables reconcile National Fuel's reported GAAP earnings to
Adjusted EBITDA for the three and twelve months ended September 30, 2014
and 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
|
|
|
|
$
|
57,431
|
|
|
$
|
47,842
|
|
|
$
|
299,413
|
|
|
$
|
260,001
|
|
Depreciation, Depletion and Amortization
|
|
|
|
103,905
|
|
|
86,257
|
|
|
383,781
|
|
|
326,760
|
|
Interest and Other Income
|
|
|
|
(5,464
|
)
|
|
(3,523
|
)
|
|
(13,631
|
)
|
|
(9,032
|
)
|
Interest Expense
|
|
|
|
23,050
|
|
|
23,983
|
|
|
94,277
|
|
|
94,111
|
|
Income Taxes
|
|
|
|
26,987
|
|
|
28,334
|
|
|
189,614
|
|
|
172,758
|
|
Regulatory adjustment - Utility segment
|
|
|
|
—
|
|
|
7,200
|
|
|
—
|
|
|
7,500
|
|
Adjusted EBITDA
|
|
|
|
$
|
205,909
|
|
|
$
|
190,093
|
|
|
$
|
953,454
|
|
|
$
|
852,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline and Storage Adjusted EBITDA
|
|
|
|
$
|
42,573
|
|
|
$
|
37,885
|
|
|
$
|
186,022
|
|
|
$
|
161,226
|
|
Gathering Adjusted EBITDA
|
|
|
|
19,469
|
|
|
8,800
|
|
|
64,060
|
|
|
29,777
|
|
Total Midstream Businesses Adjusted EBITDA
|
|
|
|
62,042
|
|
|
46,685
|
|
|
250,082
|
|
|
191,003
|
|
Exploration and Production Adjusted EBITDA
|
|
|
|
138,818
|
|
|
129,406
|
|
|
539,472
|
|
|
492,383
|
|
Utility Adjusted EBITDA
|
|
|
|
7,876
|
|
|
17,179
|
|
|
164,643
|
|
|
171,669
|
|
Energy Marketing Adjusted EBITDA
|
|
|
|
631
|
|
|
(2,289
|
)
|
|
10,335
|
|
|
6,963
|
|
Corporate and All Other Adjusted EBITDA
|
|
|
|
(3,458
|
)
|
|
(888
|
)
|
|
(11,078
|
)
|
|
(9,920
|
)
|
Total Adjusted EBITDA
|
|
|
|
$
|
205,909
|
|
|
$
|
190,093
|
|
|
$
|
953,454
|
|
|
$
|
852,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended September 30 (unaudited)
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
|
$
|
366,623,000
|
|
|
$
|
338,863,000
|
|
|
|
|
|
|
|
|
Net Income Available for Common Stock
|
|
|
|
$
|
57,431,000
|
|
|
$
|
47,842,000
|
|
|
|
|
|
|
|
|
Earnings Per Common Share:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.68
|
|
|
$
|
0.57
|
Diluted
|
|
|
|
$
|
0.68
|
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares:
|
|
|
|
|
|
|
|
Used in Basic Calculation
|
|
|
|
84,126,542
|
|
|
83,628,686
|
Used in Diluted Calculation
|
|
|
|
85,062,410
|
|
|
84,502,703
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
|
$
|
2,113,081,000
|
|
|
$
|
1,829,551,000
|
|
|
|
|
|
|
|
|
Net Income Available for Common Stock
|
|
|
|
$
|
299,413,000
|
|
|
$
|
260,001,000
|
|
|
|
|
|
|
|
|
Earnings Per Common Share:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
3.57
|
|
|
$
|
3.11
|
Diluted
|
|
|
|
$
|
3.52
|
|
|
$
|
3.08
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares:
|
|
|
|
|
|
|
|
Used in Basic Calculation
|
|
|
|
83,929,989
|
|
|
83,518,857
|
Used in Diluted Calculation
|
|
|
|
84,952,347
|
|
|
84,341,220
|
|
|