Back to top

National Fuel Gas (NFG) Q3 Earnings Beat Estimates, View Up

Read MoreHide Full Article

National Fuel Gas Company (NFG - Free Report) posted third-quarter fiscal 2018 operating earnings of 73 cents per share, beating the Zacks Consensus Estimate of 66 cents by 10.96%. Earnings also surpassed the year-ago quarter’s figure of 69 cents by 5.8%.

National Fuel Gas Company Price, Consensus and EPS Surprise

National Fuel Gas Company Price, Consensus and EPS Surprise | National Fuel Gas Company Quote

Total Revenues

Total revenues of $342.9 million lagged the Zacks Consensus Estimate of $363 million by 5.5%. Total revenues also missed the prior-year quarter’s revenues of $348.4 million by 1.6%.

Utility and Energy Marketing revenues were up 5.3% to $154.1 million, Storage and Gathering revenues were up 2.4% to $51.3 million, while Exploration and Production and Other Revenues were down 9.5% to $137.5 million.

Quarterly Highlights

Total operating expenses in the reported quarter increased 4.5% to $235.1 million from the year-ago quarter, due to increase in operating and maintenance expenses, and purchased gas prices.

Total gas production in the reported quarter was 40,970 million cubic feet (MMcf), up from the year-ago quarter of 38,637 MMcf, primarily due to higher production from the Appalachia region.

Operating income in the reported quarter was down 12.6% year over year to $107.8 million.

The company incurred interest expenses of $27.2 million, down 6.8% from the year-ago period.

Financial Highlights

On Jun 30, 2018, National Fuel Gas had cash and cash equivalents of $313.3 million compared with $555.5 million on Sep 30, 2017.

Long-term debt (excluding current maturities) was $1,835.6 million as of Jun 30, 2018, down from the Sep 30, 2017 level of $2,083.7 million.

The company’s cash flow from operating activities in the first nine months of fiscal 2018 was $517.5 million, down from $551.1 million recorded in the comparable year-ago period.

Guidance

National Fuel Gas Company now expects its fiscal 2018 earnings per share within $3.30-$3.40 (prior expectation was $3.20-$3.35). The upward revision in guidance takes into consideration the positive impact of the Exploration and Production segment’s estimated production and oil pricing.

Fiscal 2018 production is expected in the range of 175-180 billion cubic feet equivalent (Bcfe).

Capital expenditure for fiscal 2018 is expected in the range of $585-$645 million, while that of fiscal 2019 is anticipated in the band of $745-$845 million.

National Fuel Gas Company expects its fiscal 2019 production in the range of 210-230 Bcfe, reflecting a 24% increase from the estimated fiscal 2018 production.

National Fuel Gas Company issued fiscal 2019 earnings per share guidance within $3.30-$3.60 per share. The expected improvement in fiscal 2019 earnings takes into consideration Seneca’s estimated natural gas production and the associated impact on the Gathering segment revenues.

Other Releases

ONE Gas, Inc. (OGS - Free Report) posted second-quarter 2018 operating earnings of 39 cents per share, beating the Zacks Consensus Estimate of 32 cents by 21.9%.

ONEOK Inc. (OKE - Free Report) posted second-quarter 2018 operating earnings of 68 cents per share, surpassing the Zacks Consensus Estimate by a penny.

Spire (SR - Free Report) posted third-quarter fiscal 2018 operating earnings of 31 cents per share, beating the Zacks Consensus Estimate of 26 cents by 19.2%.

Zacks Rank

National Fuel Gas Company 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 Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


ONEOK, Inc. (OKE) - free report >>

National Fuel Gas Company (NFG) - free report >>

ONE Gas, Inc. (OGS) - free report >>

Spire Inc. (SR) - free report >>

More from Zacks Analyst Blog

You May Like

Published in