It has been about a month since the last earnings report for National Fuel Gas (NFG Quick QuoteNFG - Free Report) . Shares have added about 5.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is National Fuel Gas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

National Fuel Gas Q4 Earnings Lag Estimates, Sales Increase Y/Y

National Fuel Gas Company reported fourth-quarter fiscal 2024 adjusted operating earnings of 77 cents per share, which missed the Zacks Consensus Estimate of 83 cents by 7.2%. The bottom line also decreased 1.3% from the year-ago quarter’s reported figure of 78 cents.

NFG reported fiscal 2024 earnings of $5.01 per share compared with $5.17 in fiscal 2023, reflecting a year-over-year decrease of 3.1%.

NFG’s Total Revenues

NFG reported sales of $372.1 million, which missed the Zacks Consensus Estimate of $482 million by 22.9%. However, the top line rose 0.8% from the prior-year recorded figure of $368.9 million.

NFG reported total revenues of $1.94 billion in fiscal 2024 compared with $2.17 billion in fiscal 2023, highlighting a year-over-year decrease of 10.5%.

NFG’s Segmental Revenues

Utility: Revenues in the fourth quarter of fiscal 2024 totaled $79.8 million, up 1.2% from $78.9 million in the year-ago quarter.

Pipeline and Storage and Gathering: Revenues amounted to $70.7 million, reflecting a 1.4% increase from $69.7 million in the year-ago quarter.

Exploration and Production and Other Revenues: Revenues in the fourth quarter of fiscal 2024 totaled $221.5 million, up 0.5% from $220.4 million in the year-ago quarter.

Highlights of NFG’s Q4 Release

Total operating expenses increased 133.4% to $568.6 million year over year. This was due to higher operation and maintenance expenses.

The operating loss was $196.6 million against an income of $125.3 million in the year-ago quarter.

Interest expenses totaled $33 million, up 16% from the year-ago figure of $28.5 million.

The Exploration & Production segment produced 91.9 billion cubic feet (Bcf) of natural gas, down 2% year over year. The company voluntarily curtailed 1.5 Bcf of production due to low in-basin pricing during the quarter.

NFG’s Financial Highlights

As of Sept. 30, 2024, National Fuel Gas had cash and temporary cash investments of $38.2 million compared with $55.4 million as of Sept. 30, 2023.

Net cash provided by operating activities for fiscal 2024 totaled $1.07 billion compared with $1.24 billion in the year-ago period.

Total capital expenditures in fiscal 2024 totaled $0.93 billion compared with $1.01 billion in fiscal 2023.

NFG’s Guidance

NFG updated its fiscal 2025 earnings projection to the range of $5.50-$6.00 per share from the previously anticipated $5.75-$6.25 range. The Zacks Consensus Estimate is pegged at $5.69 per share.

The company still expects its capital expenditure for fiscal 2025 to be in the range of $885-970 million. It expects production volume in the band of 400-420 Bcf for the same year.

 

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

Currently, National Fuel Gas has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

National Fuel Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

National Fuel Gas is part of the Zacks Oil and Gas - Integrated - United States industry. Over the past month, Hess (HES Quick QuoteHES - Free Report) , a stock from the same industry, has gained 1.4%. The company reported its results for the quarter ended September 2024 more than a month ago.

Hess reported revenues of $3.2 billion in the last reported quarter, representing a year-over-year change of +12.7%. EPS of $2.14 for the same period compares with $1.64 a year ago.

Hess is expected to post earnings of $1.67 per share for the current quarter, representing a year-over-year change of +2.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -14.6%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Hess. Also, the stock has a VGM Score of C.