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National Fuel Gas (NFG) Q1 Earnings Beat on Higher Production
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National Fuel Gas Company (NFG - Free Report) reported fiscal first-quarter 2024 adjusted operating earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.32 by 10.6%. However, the bottom line declined 20.65% from the year-ago figure of $1.84.
GAAP earnings in the quarter were $1.44 per share, down 21.7% from the year-ago level of $1.84.
Total Revenues
Revenues of $525.4 million lagged the Zacks Consensus Estimate of $654 million by 19.6%.
The top line decreased 20.3% from the prior-year quarter figure of $659 million. The year-over-year fall was primarily due to lower realized natural gas prices.
National Fuel Gas Company Price, Consensus and EPS Surprise
Utility: Revenues in the first quarter of fiscal 2024 totaled $201.9 million, down 35.2% from $312 million in the year-ago quarter.
Pipeline and Storage and Gathering: Revenues amounted to $69.4 million, reflecting a 1.2% decrease from $70.3 million in the year-ago quarter.
Exploration and Production and Other Revenues: Revenues in the first quarter of fiscal 2024 totaled $254 million, down 8.3% from $276.9 million in the year-ago quarter.
Highlights of the Release
Total operating expenses decreased 21.3% to $318.3 million year over year.
Operating income was down 18.6% year over year to $207.1 million.
Interest expenses totaled $34.7 million, up 3.8% from the year-ago quarter levels of $33.4 million.
The Exploration & Production segment produced 101 billion cubic feet (Bcf) of natural gas, an increase of 11% from the prior-year quarter, driven by strong operational execution in its Eastern Development Area.
Financial Highlights
As of Dec 31, 2023, National Fuel Gas had cash and temporary cash investments of $41.7 million compared with $55.4 million as of Sep 30, 2023.
Net cash provided by operating activities for the fiscal first quarter of 2024 was $270.9 million compared with $327.4 million from the year ago quarter.
National Fuel Gas invested $246.9 million in the first quarter of fiscal 2024 compared with $233.5 million in the first quarter of fiscal 2023.
Guidance
NFG lowered its fiscal 2024 earnings guidance to the range of $4.90-$5.20 per share from the prior range of $5.40-$5.90 per share. The decline in guidance primarily reflects the impact of lower natural gas price expectations, partially offset by the improved outlook for both production and lease operating and transportation expenses in the Exploration and Production segment. The Zacks Consensus Estimate is pegged at $5.05 per share, higher than $4.74, the midpoint of the guided range.
The company increased its capital expenditure guidance to the range of $885-$1000 million from $865-$975 million for fiscal 2024. It expects production volume in the band of 395-410 Bcf for the same year.
Zacks Rank
National Fuel Gas currently has a Zacks Rank #5 (Strong Sell).
ONE Gas (OGS - Free Report) to report fourth-quarter 2023 results on Feb 21 after market close. The Zacks Consensus Estimate for earnings is pegged at $1.26 per share, suggesting a year-over-year increase of 2.44%.
The Zacks Consensus Estimate for OGS’ 2023 earnings is pegged at $4.14 per share, implying a year-over-year increase of 1.47%.
Northwest Natural (NWN - Free Report) will report fourth-quarter 2023 results on Feb 23 before market open. The Zacks Consensus Estimate for earnings is pegged at $1.30 per share, indicating a year-over-year decline of 4.41%.
The Zacks Consensus Estimate for NWN’s 2023 earnings is pegged at $2.68 per share, implying a year-over-year increase of 5.51%.
Sempra Energy (SRE - Free Report) to report fourth-quarter 2023 results on Feb 27 before market open. The Zacks Consensus Estimate for earnings is pegged at $1.13 per share, calling for a year-over-year decline of 4.24%.
The Zacks Consensus Estimate for SRE’s 2023 earnings is pegged at $4.59 per share, suggesting a year-over-year decline of 0.43%.
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National Fuel Gas (NFG) Q1 Earnings Beat on Higher Production
National Fuel Gas Company (NFG - Free Report) reported fiscal first-quarter 2024 adjusted operating earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.32 by 10.6%. However, the bottom line declined 20.65% from the year-ago figure of $1.84.
GAAP earnings in the quarter were $1.44 per share, down 21.7% from the year-ago level of $1.84.
Total Revenues
Revenues of $525.4 million lagged the Zacks Consensus Estimate of $654 million by 19.6%.
The top line decreased 20.3% from the prior-year quarter figure of $659 million. The year-over-year fall was primarily due to lower realized natural gas prices.
National Fuel Gas Company Price, Consensus and EPS Surprise
National Fuel Gas Company price-consensus-eps-surprise-chart | National Fuel Gas Company Quote
Segmental Revenues
Utility: Revenues in the first quarter of fiscal 2024 totaled $201.9 million, down 35.2% from $312 million in the year-ago quarter.
Pipeline and Storage and Gathering: Revenues amounted to $69.4 million, reflecting a 1.2% decrease from $70.3 million in the year-ago quarter.
Exploration and Production and Other Revenues: Revenues in the first quarter of fiscal 2024 totaled $254 million, down 8.3% from $276.9 million in the year-ago quarter.
Highlights of the Release
Total operating expenses decreased 21.3% to $318.3 million year over year.
Operating income was down 18.6% year over year to $207.1 million.
Interest expenses totaled $34.7 million, up 3.8% from the year-ago quarter levels of $33.4 million.
The Exploration & Production segment produced 101 billion cubic feet (Bcf) of natural gas, an increase of 11% from the prior-year quarter, driven by strong operational execution in its Eastern Development Area.
Financial Highlights
As of Dec 31, 2023, National Fuel Gas had cash and temporary cash investments of $41.7 million compared with $55.4 million as of Sep 30, 2023.
Net cash provided by operating activities for the fiscal first quarter of 2024 was $270.9 million compared with $327.4 million from the year ago quarter.
National Fuel Gas invested $246.9 million in the first quarter of fiscal 2024 compared with $233.5 million in the first quarter of fiscal 2023.
Guidance
NFG lowered its fiscal 2024 earnings guidance to the range of $4.90-$5.20 per share from the prior range of $5.40-$5.90 per share. The decline in guidance primarily reflects the impact of lower natural gas price expectations, partially offset by the improved outlook for both production and lease operating and transportation expenses in the Exploration and Production segment. The Zacks Consensus Estimate is pegged at $5.05 per share, higher than $4.74, the midpoint of the guided range.
The company increased its capital expenditure guidance to the range of $885-$1000 million from $865-$975 million for fiscal 2024. It expects production volume in the band of 395-410 Bcf for the same year.
Zacks Rank
National Fuel Gas currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
ONE Gas (OGS - Free Report) to report fourth-quarter 2023 results on Feb 21 after market close. The Zacks Consensus Estimate for earnings is pegged at $1.26 per share, suggesting a year-over-year increase of 2.44%.
The Zacks Consensus Estimate for OGS’ 2023 earnings is pegged at $4.14 per share, implying a year-over-year increase of 1.47%.
Northwest Natural (NWN - Free Report) will report fourth-quarter 2023 results on Feb 23 before market open. The Zacks Consensus Estimate for earnings is pegged at $1.30 per share, indicating a year-over-year decline of 4.41%.
The Zacks Consensus Estimate for NWN’s 2023 earnings is pegged at $2.68 per share, implying a year-over-year increase of 5.51%.
Sempra Energy (SRE - Free Report) to report fourth-quarter 2023 results on Feb 27 before market open. The Zacks Consensus Estimate for earnings is pegged at $1.13 per share, calling for a year-over-year decline of 4.24%.
The Zacks Consensus Estimate for SRE’s 2023 earnings is pegged at $4.59 per share, suggesting a year-over-year decline of 0.43%.