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National Fuel Gas Q4 Earnings Outpace Estimates, Revenues Increase Y/Y
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Key Takeaways
National Fuel Gas' Q4 earnings beat estimates by 6.1%, while revenues rose 2.5% year over year.
NFG's operating expenses rose 12.2%, while operating income fell 12.4% amid lower gas production.
NFG projects fiscal 2027 EPS of $6.00-$6.40 and plans to separate its upstream and gathering business.
National Fuel Gas Company (NFG - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $1.22 per share, which beat the Zacks Consensus Estimate of $1.15 by 6.1%. Earnings remained unchanged from $1.22 in the year-ago quarter.
GAAP earnings for the reported quarter were $1.02 per share compared with $1.18 in the year-ago quarter.
NFG reported fiscal 2026 adjusted earnings of $7.55 per share compared with $6.91 in fiscal 2025, reflecting a year-over-year increase of 9.3%.
NFG’s Total Revenues
NFG reported sales of $467.9 million, which missed the consensus estimate of $536 million by 12.7%. However, the top line increased 2.5% from the prior-year recorded figure of $456.4 million.
NFG reported total revenues of $2.52 billion in fiscal 2026 compared with $2.28 billion in fiscal 2025, highlighting a year-over-year rise of 10.4%.
National Fuel Gas Company Price, Consensus and EPS Surprise
National Fuel Gas' Revenue Mix Shows Uneven Growth
Utility: Revenues totaled $97.91 million, up 11.5% from $87.83 million in the year-ago quarter. Higher customer margins were driven by increased usage, the second year of New York's multiyear rate settlement and Pennsylvania's Distribution System Improvement Charge.
Integrated Upstream and Gathering: Revenues amounted to $300.1 million, down 0.1% from $300.4 million a year ago. Higher realized natural gas prices were offset by lower production volumes.
Pipeline and Storage: Revenues totaled $69.9 million, up 2.4% from $68.2 million in the year-ago period. Higher transportation revenues from new long-term contracts supported the segment's performance.
NFG’s Higher Costs and Lower Production Weigh on Results
Total operating expenses increased 12.2% year over year to $310.4 million. Operation and maintenance expenses rose across all three operating segments, with the sharpest increase in the Integrated Upstream and Gathering segment.
Operating income totaled $157.5 million, down 12.4% from $179.8 million in the year-ago quarter.
Interest expense on long-term debt totaled $44.8 million, up 33.6% from $33.5 million in the year-ago period.
Seneca produced 104 billion cubic feet of natural gas during the reported quarter, down 7% from the prior-year period. Production from recently completed wells was insufficient to offset natural declines from existing wells.
NFG's Cash Flow and Strategic Initiatives
As of Sept. 30, 2026, National Fuel Gas had cash and temporary cash investments of $39.35 million compared with $43.17 million as of Sept. 30, 2025.
Net cash provided by operating activities increased 15.6% year over year to $1.27 billion in fiscal 2026. Free cash flow totaled $198.6 million compared with $208.3 million in fiscal 2025.
The company completed its acquisition of CenterPoint Energy's Ohio natural gas utility on Oct. 1, 2026. The transaction doubled its Utility rate base and added approximately 335,000 customers.
National Fuel also plans to separate its Integrated Upstream and Gathering business into a publicly traded company named Seneca Resources. The separation is expected in the second half of calendar year 2027.
The company maintained its annual dividend rate of $2.22 per share, marking 124 consecutive years of dividend payments and 56 straight years of increases.
National Fuel Gas Initiates Fiscal 2027 Outlook
National Fuel Gas initiated fiscal 2027 adjusted earnings guidance of $6.00-$6.40 per share. The Zacks Consensus Estimate for fiscal 2026 is currently pegged at $7.53.
The company expects fiscal 2027 natural gas production of 400-435 billion cubic feet.
Consolidated capital expenditures are projected at $1.09-$1.22 billion.
Integrated Upstream and Gathering capital spending is expected at $600-$640 million. Pipeline and Storage spending is projected at $140-$180 million, while Utility capital expenditures are forecast at $350-$400 million.
NFG expects Pipeline and Storage revenues of $475-$500 million and Utility operating income of $235-$255 million in fiscal 2027.
NFG’s Zacks Rank
National Fuel Gas currently carries a Zacks Rank #4 (Sell).
ONEOK, Inc. (OKE - Free Report) reported third-quarter 2026 earnings of $2.13 per share, which beat the Zacks Consensus Estimate of $1.46 by 45.89%. The bottom line increased 43% from the year-ago quarter's figure of $1.49.
Operating revenues for the third quarter totaled $12.46 billion, which topped the Zacks Consensus Estimate of $11.77 billion by 5.81%. The top line improved 44.3% from $8.63 billion in the prior-year quarter.
Energy Transfer (ET - Free Report) reported third-quarter 2026 earnings of 33 cents per share, missing the Zacks Consensus Estimate of 41 cents by 19.5%. However, the bottom line increased 17.9% from 28 cents in the year-ago quarter.
Revenues totaled $37.1 billion, surpassing the consensus estimate of $35.6 billion by 4.2% and increasing 85.9% year over year.
CNX Resources Corporation (CNX - Free Report) reported third-quarter 2026 operating earnings of 61 cents per share, missing the Zacks Consensus Estimate of 65 cents by 6.2%.
CNX reported revenues of $373 million, lagging the Zacks Consensus Estimate of $400 million by 6.8%. Revenues declined 7.1% from $401 million in the year-ago quarter.
View the Zacks #1 Rank List
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National Fuel Gas Q4 Earnings Outpace Estimates, Revenues Increase Y/Y
Key Takeaways
National Fuel Gas Company (NFG - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $1.22 per share, which beat the Zacks Consensus Estimate of $1.15 by 6.1%. Earnings remained unchanged from $1.22 in the year-ago quarter.
GAAP earnings for the reported quarter were $1.02 per share compared with $1.18 in the year-ago quarter.
NFG reported fiscal 2026 adjusted earnings of $7.55 per share compared with $6.91 in fiscal 2025, reflecting a year-over-year increase of 9.3%.
NFG’s Total Revenues
NFG reported sales of $467.9 million, which missed the consensus estimate of $536 million by 12.7%. However, the top line increased 2.5% from the prior-year recorded figure of $456.4 million.
NFG reported total revenues of $2.52 billion in fiscal 2026 compared with $2.28 billion in fiscal 2025, highlighting a year-over-year rise of 10.4%.
National Fuel Gas Company Price, Consensus and EPS Surprise
National Fuel Gas Company price-consensus-eps-surprise-chart | National Fuel Gas Company Quote
National Fuel Gas' Revenue Mix Shows Uneven Growth
Utility: Revenues totaled $97.91 million, up 11.5% from $87.83 million in the year-ago quarter. Higher customer margins were driven by increased usage, the second year of New York's multiyear rate settlement and Pennsylvania's Distribution System Improvement Charge.
Integrated Upstream and Gathering: Revenues amounted to $300.1 million, down 0.1% from $300.4 million a year ago. Higher realized natural gas prices were offset by lower production volumes.
Pipeline and Storage: Revenues totaled $69.9 million, up 2.4% from $68.2 million in the year-ago period. Higher transportation revenues from new long-term contracts supported the segment's performance.
NFG’s Higher Costs and Lower Production Weigh on Results
Total operating expenses increased 12.2% year over year to $310.4 million. Operation and maintenance expenses rose across all three operating segments, with the sharpest increase in the Integrated Upstream and Gathering segment.
Operating income totaled $157.5 million, down 12.4% from $179.8 million in the year-ago quarter.
Interest expense on long-term debt totaled $44.8 million, up 33.6% from $33.5 million in the year-ago period.
Seneca produced 104 billion cubic feet of natural gas during the reported quarter, down 7% from the prior-year period. Production from recently completed wells was insufficient to offset natural declines from existing wells.
NFG's Cash Flow and Strategic Initiatives
As of Sept. 30, 2026, National Fuel Gas had cash and temporary cash investments of $39.35 million compared with $43.17 million as of Sept. 30, 2025.
Net cash provided by operating activities increased 15.6% year over year to $1.27 billion in fiscal 2026. Free cash flow totaled $198.6 million compared with $208.3 million in fiscal 2025.
The company completed its acquisition of CenterPoint Energy's Ohio natural gas utility on Oct. 1, 2026. The transaction doubled its Utility rate base and added approximately 335,000 customers.
National Fuel also plans to separate its Integrated Upstream and Gathering business into a publicly traded company named Seneca Resources. The separation is expected in the second half of calendar year 2027.
The company maintained its annual dividend rate of $2.22 per share, marking 124 consecutive years of dividend payments and 56 straight years of increases.
National Fuel Gas Initiates Fiscal 2027 Outlook
National Fuel Gas initiated fiscal 2027 adjusted earnings guidance of $6.00-$6.40 per share. The Zacks Consensus Estimate for fiscal 2026 is currently pegged at $7.53.
The company expects fiscal 2027 natural gas production of 400-435 billion cubic feet.
Consolidated capital expenditures are projected at $1.09-$1.22 billion.
Integrated Upstream and Gathering capital spending is expected at $600-$640 million. Pipeline and Storage spending is projected at $140-$180 million, while Utility capital expenditures are forecast at $350-$400 million.
NFG expects Pipeline and Storage revenues of $475-$500 million and Utility operating income of $235-$255 million in fiscal 2027.
NFG’s Zacks Rank
National Fuel Gas currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Sector Releases
ONEOK, Inc. (OKE - Free Report) reported third-quarter 2026 earnings of $2.13 per share, which beat the Zacks Consensus Estimate of $1.46 by 45.89%. The bottom line increased 43% from the year-ago quarter's figure of $1.49.
Operating revenues for the third quarter totaled $12.46 billion, which topped the Zacks Consensus Estimate of $11.77 billion by 5.81%. The top line improved 44.3% from $8.63 billion in the prior-year quarter.
Energy Transfer (ET - Free Report) reported third-quarter 2026 earnings of 33 cents per share, missing the Zacks Consensus Estimate of 41 cents by 19.5%. However, the bottom line increased 17.9% from 28 cents in the year-ago quarter.
Revenues totaled $37.1 billion, surpassing the consensus estimate of $35.6 billion by 4.2% and increasing 85.9% year over year.
CNX Resources Corporation (CNX - Free Report) reported third-quarter 2026 operating earnings of 61 cents per share, missing the Zacks Consensus Estimate of 65 cents by 6.2%.
CNX reported revenues of $373 million, lagging the Zacks Consensus Estimate of $400 million by 6.8%. Revenues declined 7.1% from $401 million in the year-ago quarter.