National Fuel Gas Company (NFG - Free Report) posted second-quarter fiscal 2019 operating earnings of $1.07 per share, lagging the Zacks Consensus Estimate of $1.15 by nearly 7% and declining 3.6% from the year-ago figure of $1.11.
Total Revenues
Total revenues of $552.5 million missed the Zacks Consensus Estimate of $590 million by 6.4%. However, the top line increased 2.1% from the prior-year figure of $540.9 million.
Utility and Energy Marketing revenues improved 3.4% year over year to $357.7 million. On the contrary, revenues from Pipeline, Storage and Gathering, as well as Exploration and Production and Other dropped 9.7% and 0.9% from the prior-year quarter to $48.4 million and $146.5 million, respectively.
Highlights of the Release
Total operating costs in the reported quarter increased 8.1% from the year-ago period to $399.2 million, owing to a rise in operating and maintenance expenses, and purchased gas prices.
Total gas production in the reported quarter was 45,370 million cubic feet (MMcf), up from the year-ago quarter figure of 42,078 MMcf, primarily due to higher production from the Appalachia region. Oil production was 564,000 barrels, down 14.9% from the year-ago level due to lower production from the West Coast region.
Operating income in the reported quarter was down 10.6% year over year to $153.4 million.
The company incurred interest expenses of $25.3 million, up 7% from the year-ago period.
Financial Highlights
On Mar 31, 2019, National Fuel Gas had cash and cash equivalents of $100.6 million compared with $229.6 million as of Sep 30, 2018.
Long-term debt (excluding current maturities) was $2,132.5 million as of Mar 31, 2019 compared with the Sep 30, 2018 level of $2,131.4 million.
The company’s cash flow from operating activities in the first six months of fiscal 2019 was $340.8 million, up from $288.7 million recorded in the comparable prior-year period.
Total capital expenditure in the first six months of fiscal 2019 was $386.6 million, higher than $288.7 million in the comparable year-ago period.
Guidance
National Fuel Gas reiterated its fiscal 2019 earnings guidance in the range of $3.45-$3.65. The midpoint of the range is $3.55 per share, which is lower than the current Zacks Consensus Estimate of $3.66 for the period.
The company lowered Exploration and Production segment’s fiscal 2019 net production guidance to the range of 205-215 billion cubic feet equivalent (“Bcfe”) from prior expectation of 210-230 Bcfe, with the primary reason being drilling and completion delays.
Other Releases
MDU Resources Group Inc. (MDU - Free Report) reported first-quarter 2019 operating earnings of 21 cents per share, which missed the Zacks Consensus Estimate of 24 cents by 12.5%
ONE Gas, Inc. (OGS - Free Report) recorded first-quarter 2019 operating earnings of $1.76 per share, which beat the Zacks Consensus Estimate of $1.73 by 1.7%.
ONEOK Inc. (OKE - Free Report) came up with first-quarter 2019 operating earnings of 81 cents per share, which beat the Zacks Consensus Estimate of 73 cents by 10.96%.
Zacks Rank
National Fuel Gas currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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National Fuel Gas Company (NFG - Free Report) posted second-quarter fiscal 2019 operating earnings of $1.07 per share, lagging the Zacks Consensus Estimate of $1.15 by nearly 7% and declining 3.6% from the year-ago figure of $1.11.
Total Revenues
Total revenues of $552.5 million missed the Zacks Consensus Estimate of $590 million by 6.4%. However, the top line increased 2.1% from the prior-year figure of $540.9 million.
Utility and Energy Marketing revenues improved 3.4% year over year to $357.7 million. On the contrary, revenues from Pipeline, Storage and Gathering, as well as Exploration and Production and Other dropped 9.7% and 0.9% from the prior-year quarter to $48.4 million and $146.5 million, respectively.
Highlights of the Release
Total operating costs in the reported quarter increased 8.1% from the year-ago period to $399.2 million, owing to a rise in operating and maintenance expenses, and purchased gas prices.
Total gas production in the reported quarter was 45,370 million cubic feet (MMcf), up from the year-ago quarter figure of 42,078 MMcf, primarily due to higher production from the Appalachia region. Oil production was 564,000 barrels, down 14.9% from the year-ago level due to lower production from the West Coast region.
Operating income in the reported quarter was down 10.6% year over year to $153.4 million.
The company incurred interest expenses of $25.3 million, up 7% from the year-ago period.
Financial Highlights
On Mar 31, 2019, National Fuel Gas had cash and cash equivalents of $100.6 million compared with $229.6 million as of Sep 30, 2018.
Long-term debt (excluding current maturities) was $2,132.5 million as of Mar 31, 2019 compared with the Sep 30, 2018 level of $2,131.4 million.
The company’s cash flow from operating activities in the first six months of fiscal 2019 was $340.8 million, up from $288.7 million recorded in the comparable prior-year period.
Total capital expenditure in the first six months of fiscal 2019 was $386.6 million, higher than $288.7 million in the comparable year-ago period.
Guidance
National Fuel Gas reiterated its fiscal 2019 earnings guidance in the range of $3.45-$3.65. The midpoint of the range is $3.55 per share, which is lower than the current Zacks Consensus Estimate of $3.66 for the period.
The company lowered Exploration and Production segment’s fiscal 2019 net production guidance to the range of 205-215 billion cubic feet equivalent (“Bcfe”) from prior expectation of 210-230 Bcfe, with the primary reason being drilling and completion delays.
Other Releases
MDU Resources Group Inc. (MDU - Free Report) reported first-quarter 2019 operating earnings of 21 cents per share, which missed the Zacks Consensus Estimate of 24 cents by 12.5%
ONE Gas, Inc. (OGS - Free Report) recorded first-quarter 2019 operating earnings of $1.76 per share, which beat the Zacks Consensus Estimate of $1.73 by 1.7%.
ONEOK Inc. (OKE - Free Report) came up with first-quarter 2019 operating earnings of 81 cents per share, which beat the Zacks Consensus Estimate of 73 cents by 10.96%.
Zacks Rank
National Fuel Gas currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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