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National Fuel Gas (NFG) Q2 Earnings Top, Sales Decline Y/Y
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National Fuel Gas Company (NFG - Free Report) reported fiscal second-quarter 2024 adjusted operating earnings of $1.79 per share, which surpassed the Zacks Consensus Estimate of $1.41 by 26.9%. The bottom line also increased 16.2% from the year-ago quarter’s reported figure of $1.54.
GAAP earnings for the quarter were $1.80 per share, up 17.6% from the year-ago level of $1.53.
Total Revenues
NFG reported sales of $629.9 million, which missed the Zacks Consensus Estimate of $679 million by 7.2%. The top line also declined 12.2% from the prior-year recorded figure of $717.3 million.
National Fuel Gas Company Price, Consensus and EPS Surprise
Utility: Revenues totaled $290.2 million, down 28.6% from $406.7 million in the year-ago quarter.
Exploration and Production and Other Revenues: Revenues totaled $264.6 million, up 8.2% from $244.5 million in the year-ago quarter.
Pipeline and Storage and Gathering: Revenues amounted to $75.1 million, implying a 13.9% increase from $65.9 million recorded in the year-ago quarter.
Highlights of the Release
Total operating expenses decreased 23.5% to $379.3 million year over year. This was primarily due to price hikes in purchased gas expenses.
Operating income increased 13.2% year over year to $250.6 million.
Interest expenses totaled $28.5 million, up 3.3% from the year-ago figure of $27.6 million.
The Exploration & Production segment produced 103 billion cubic feet (Bcf) of natural gas, up 10% from the prior-year level. This was driven by strong operational execution, particularly in the highly productive Eastern Development Area.
Financial Highlights
As of Mar 31, 2024, National Fuel Gas had cash and temporary cash investments of $50.8 million compared with $55.4 million as of Sep 30, 2023.
Net cash provided by operating activities for the first six months of fiscal 2024 totaled $586.3 million compared with $711.2 million in the year-ago period.
National Fuel Gas made capital expenditures of $481.9 million in the first six months of fiscal 2024 million compared with $496.4 million in the year-ago period.
Guidance
NFG lowered its fiscal 2024 earnings projection to the range of $4.75-$5.05 per share from the previously anticipated band of $4.90-$5.20. This decline primarily reflects the full-year impact of lower natural gas prices and price-related production curtailments at Seneca during the second quarter, partially offset by an increase in revenues in the Pipeline and Storage segment. The Zacks Consensus Estimate for the same is pegged at $4.56 per share.
The company lowered its capital expenditure guidance to $0.89-$0.98 billion from $0.89-$1 billion for fiscal 2024. It also lowered its production volume expectation to the band of 390-405 Bcf from the previously anticipated 395-410 Bcf.
ONE Gas, Inc. (OGS - Free Report) is slated to report first-quarter 2024 results on May 6, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.78 per share.
OGS’ long-term (three to five years) earnings growth rate is 5%. It delivered an average earnings surprise of 1.2% in the last four quarters.
Southwest Gas (SWX - Free Report) is slated to report first-quarter 2024 results on May 8, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.70 per share.
SWX’s long-term earnings growth rate is 6%. It delivered an average earnings surprise of 114.7% in the last four quarters.
Atmos Energy Corporation (ATO - Free Report) is slated to report second-quarter fiscal 2024 results on May 8, after market close. The Zacks Consensus Estimate for earnings is pegged at $2.62 per share.
ATO’s long-term earnings growth rate is 7%. It delivered an average earnings surprise of 1.2% in the last four quarters.
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National Fuel Gas (NFG) Q2 Earnings Top, Sales Decline Y/Y
National Fuel Gas Company (NFG - Free Report) reported fiscal second-quarter 2024 adjusted operating earnings of $1.79 per share, which surpassed the Zacks Consensus Estimate of $1.41 by 26.9%. The bottom line also increased 16.2% from the year-ago quarter’s reported figure of $1.54.
GAAP earnings for the quarter were $1.80 per share, up 17.6% from the year-ago level of $1.53.
Total Revenues
NFG reported sales of $629.9 million, which missed the Zacks Consensus Estimate of $679 million by 7.2%. The top line also declined 12.2% from the prior-year recorded figure of $717.3 million.
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 totaled $290.2 million, down 28.6% from $406.7 million in the year-ago quarter.
Exploration and Production and Other Revenues: Revenues totaled $264.6 million, up 8.2% from $244.5 million in the year-ago quarter.
Pipeline and Storage and Gathering: Revenues amounted to $75.1 million, implying a 13.9% increase from $65.9 million recorded in the year-ago quarter.
Highlights of the Release
Total operating expenses decreased 23.5% to $379.3 million year over year. This was primarily due to price hikes in purchased gas expenses.
Operating income increased 13.2% year over year to $250.6 million.
Interest expenses totaled $28.5 million, up 3.3% from the year-ago figure of $27.6 million.
The Exploration & Production segment produced 103 billion cubic feet (Bcf) of natural gas, up 10% from the prior-year level. This was driven by strong operational execution, particularly in the highly productive Eastern Development Area.
Financial Highlights
As of Mar 31, 2024, National Fuel Gas had cash and temporary cash investments of $50.8 million compared with $55.4 million as of Sep 30, 2023.
Net cash provided by operating activities for the first six months of fiscal 2024 totaled $586.3 million compared with $711.2 million in the year-ago period.
National Fuel Gas made capital expenditures of $481.9 million in the first six months of fiscal 2024 million compared with $496.4 million in the year-ago period.
Guidance
NFG lowered its fiscal 2024 earnings projection to the range of $4.75-$5.05 per share from the previously anticipated band of $4.90-$5.20. This decline primarily reflects the full-year impact of lower natural gas prices and price-related production curtailments at Seneca during the second quarter, partially offset by an increase in revenues in the Pipeline and Storage segment. The Zacks Consensus Estimate for the same is pegged at $4.56 per share.
The company lowered its capital expenditure guidance to $0.89-$0.98 billion from $0.89-$1 billion for fiscal 2024. It also lowered its production volume expectation to the band of 390-405 Bcf from the previously anticipated 395-410 Bcf.
Zacks Rank
National Fuel Gas currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
ONE Gas, Inc. (OGS - Free Report) is slated to report first-quarter 2024 results on May 6, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.78 per share.
OGS’ long-term (three to five years) earnings growth rate is 5%. It delivered an average earnings surprise of 1.2% in the last four quarters.
Southwest Gas (SWX - Free Report) is slated to report first-quarter 2024 results on May 8, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.70 per share.
SWX’s long-term earnings growth rate is 6%. It delivered an average earnings surprise of 114.7% in the last four quarters.
Atmos Energy Corporation (ATO - Free Report) is slated to report second-quarter fiscal 2024 results on May 8, after market close. The Zacks Consensus Estimate for earnings is pegged at $2.62 per share.
ATO’s long-term earnings growth rate is 7%. It delivered an average earnings surprise of 1.2% in the last four quarters.