National Fuel Reports Second Quarter Earnings

WILLIAMSVILLE, N.Y., April 30, 2025 (GLOBE NEWSWIRE) -- National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the second quarter of its 2025 fiscal year. FISCAL 2025 SECOND QUARTER SUMMARY GAAP net income of $216 million, or $2.37 per share, an increase of 32% per share compared to the prior year.Adjusted operating results of $218 million, or $2.39 per share, an increase of 34% per share compared to the prior year. See non-GAAP reconciliation on page 2.Seneca produced a record 105.5 Bcf of natural gas, an increase of 3% from the prior year and 8% sequentially, largely due to strong results from pads recently turned in line in the Eastern Development Area (“EDA”).Utility segment net income of $63.5 million, or $0.70 per share, an increase of 44% per share compared to the prior year, primarily as a result of the New York jurisdiction’s 2024 rate settlement, which led to its first base rate increase since 2017.Pipeline & Storage segment net income of $31.7 million, or $0.35 per share, an increase of 5% per share compared to the prior year. In addition, Empire Pipeline reached an agreement with its customers to amend its existing rate settlement, which was approved by the FERC on March 17, 2025, with new rates effective November 1, 2025.The Company is increasing its guidance for fiscal 2025 adjusted earnings per share to a range of $6.75 to $7.05. MANAGEMENT COMMENTS David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “During our second quarter, National Fuel built upon its positive momentum which, along with the tailwind of higher natural gas price realizations, drove a 32% increase in earnings per share over the prior year. “Our integrated Appalachian natural gas development program, focused on the highly prolific EDA, continues to deliver strong operational results and improving capital efficiency. Seneca’s recent well results exhibited the highest productivity we’ve seen to date, giving us further confidence in our deep, high-quality well inventory, and allowing us to increase our production guidance for fiscal 2025. On the regulated side of the business, we saw significant earnings growth during the quarter, driven by the ongoing impact of positive rate case outcomes that balance the continued investment in modernizing our infrastructure with the goal of maintaining affordable rates for our customers. “National Fuel’s integrated natural gas business, track record of strong operational execution, and consistent approach to managing risk, collectively position us well to navigate an uncertain global economic backdrop. As such, we remain confident in our ability to provide strong returns, achieve our long-term growth targets, and continue to deliver shareholder value.” RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS Three Months Ended March 31, (Thousands) (Per Share) 2025 2024 2025 2024 Reported GAAP Earnings$216,358 $166,272 $2.37 $1.80 Items impacting comparability: Premiums paid on early redemption of debt (E&P / Midstream) 2,385 — 0.03 — Tax impact of premiums paid on early redemption of debt (642) — (0.01) — Unrealized (gain) loss on derivative asset (E&P) 335 (536) 0.00 0.00 Tax impact of unrealized (gain) loss on derivative asset (90) 147 0.00 0.00 Unrealized (gain) loss on other investments (Corporate / All Other) (17) (769) 0.00 (0.01)Tax impact of unrealized (gain) loss on other investments 4 162 0.00 0.00 Adjusted Operating Results$218,333 $165,276 $2.39 $1.79 FISCAL 2025 GUIDANCE UPDATE National Fuel is increasing its guidance for fiscal 2025 adjusted earnings per share, which is now expected to be within a range of $6.75 to $7.05, an increase of $0.15 at the midpoint of the Company’s prior guidance range. This updated range incorporates our second quarter results as well as higher expected production and lower unit costs in the Exploration and Production segment for the remainder of the fiscal year. The Company is assuming NYMEX natural gas prices will average $3.50 per MMBtu for the remaining six months of fiscal 2025 (no change from previous guidance), which approximates the current NYMEX forward curve at this time. Given the continued volatility in NYMEX natural gas prices, the Company is providing the following sensitivities to its adjusted operating results guidance range: NYMEX AssumptionRemaining 6 months($/MMBtu)Fiscal 2025Adjusted Earnings Per Share Sensitivities$3.00$6.50 - $6.80$3.50$6.75 - $7.05$4.00$7.05 - $7.35 The Company’s other fiscal 2025 guidance assumptions remain largely unchanged as detailed in the table on page 7. FINANCING ACTIVITIES UPDATE In February 2025, the Company issued $1 billion of new five- and ten-year notes (split in two equal tranches) to refinance the early redemption of $950 million of notes that were scheduled to mature in July 2025 and January 2026. In addition, the Company placed $50 million (plus interest) in trust for the benefit of holders of long-term debt issued under the Company’s 1974 Indenture and scheduled to mature in June 2025. Placing these funds in trust discharged the 1974 Indenture, relieving the Company from its obligations to comply with the indenture’s covenants. In connection with these transactions, the Company recognized an after-tax loss of $1.7 million, which is presented as an item impacting comparability for the quarter. DISCUSSION OF SECOND QUARTER RESULTS BY SEGMENT The following earnings discussion of each operating segment for the quarter ended March 31, 2025 is summarized in a tabular form on pages 8 and 9 of this report (earnings drivers for the six months ended March 31, 2025 are summarized on pages 10 and 11). It may be helpful to refer to those tables while reviewing this discussion. Note that management defines adjusted operating results as reported GAAP earnings adjusted for items impacting comparability, and adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. Upstream Business Exploration and Production Segment The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC (“Seneca”). Seneca explores for, develops and produces primarily natural gas reserves in Pennsylvania. Three Months Ended March 31,(in thousands) 2025 2024 VarianceGAAP Earnings$97,828 $62,065 $35,763 Premiums paid on early redemption of debt, net of tax 1,045 — 1,045 Unrealized (gain) loss on derivative asset (2022 CA asset sale), net of tax 245 (389) 634 Adjusted Operating Results$99,118 $61,676 $37,442 Adjusted EBITDA$214,350 $172,068 $42,282 Seneca’s second quarter GAAP earnings increased $35.8 million versus the prior year. GAAP earnings included a $1.0 million after-tax loss recognized during the quarter on the early redemption of long-term debt for Seneca’s share of premiums paid by the Company associated with its long-term debt redemptions. Excluding items impacting comparability, Seneca’s adjusted operating results in the second quarter increased $37.4 million primarily due to higher realized natural gas prices and natural gas production, as well as lower per unit operating expenses. During the second quarter, Seneca produced 105.5 Bcf of natural gas, an increase of 2.6 Bcf, or 3%, from the prior year, and 7.8 Bcf, or 8%, higher compared to the fiscal 2025 first quarter. Two highly prolific pads turned in line this year in the EDA (Tioga Utica) were the main drivers behind these increases in production. Seneca’s weighted average realized natural gas price, after the impact of hedging and transportation costs, was $2.94 per Mcf, an increase of $0.38 per Mcf from the prior year. This increase was primarily due to higher NYMEX prices and higher spot prices at local sales points in Pennsylvania. Three Months Ended March 31,(Cost per Mcf) 2025 2024 VarianceLease Operating and Transportation Expense (“LOE”)$0.67 $0.68 $(0.01)General and Administrative Expense (“G&A”)$0.18 $0.17 $0.01 Taxes and Other$0.07 $0.06 $0.01 Total Cash Operating Costs$0.92 $0.91 $0.01 Depreciation, Depletion and Amortization Expense (“DD&A”)$0.61 $0.71 $(0.10)Total Operating Costs$1.53 $1.62 $(0.09) On a per unit basis, the second quarter total cash operating costs were up slightly compared to the prior year as other taxes increased as a result of a higher Impact Fee in Pennsylvania due to the increase in NYMEX natural gas prices. LOE included $59 million ($0.56 per Mcf), or 84% of total LOE, for gathering and compression service fees paid to the Company’s Gathering segment to connect Seneca’s production to sales points along interstate pipelines. DD&A for the quarter was $0.61 per Mcf, a decrease of $0.10 per Mcf from the prior year, largely due to ceiling test impairments recorded in prior quarters that lowered Seneca’s full cost pool depletable base. Midstream Businesses Pipeline and Storage Segment The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania. Three Months Ended March 31,(in thousands) 2025 2024 VarianceGAAP Earnings$31,707 $30,737 $970 Adjusted EBITDA$70,169 $70,033 $136 The Pipeline and Storage segment’s second quarter GAAP earnings increased $1.0 million versus the prior year primarily due to higher operating revenues. The increase in operating revenues of $1.6 million, or 1%, was primarily attributable to an increase in Supply Corporation’s transportation and storage rates effective February 1, 2024, in accordance with its rate settlement, which was approved in fiscal 2024. Empire Rate Case Update On March 17, 2025, FERC approved an amendment to Empire’s 2019 rate case settlement, which provides for modest unit rate reductions for Empire’s transportation services. Based on current contracts, this settlement amendment is estimated to decrease Empire’s revenues on a yearly basis by approximately $0.5 million with new rates effective November 1, 2025. Under the amendment, Empire may not file a new rate case before April 30, 2027, and is required to file a rate case by May 31, 2031. Gathering Segment The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which delivers Seneca and other non-affiliated Appalachian production to the interstate pipeline system. Three Months Ended March 31,(in thousands) 2025 2024 VarianceGAAP Earnings$26,342 $28,706 $(2,364)Premiums paid on early redemption of debt, net of tax 698 — 698 Adjusted Operating Results$27,040 $28,706 $(1,666) Adjusted EBITDA$52,748 $53,103 $(355) The Gathering segment’s second quarter GAAP earnings decreased $2.4 million versus the prior year as higher operating revenues were more than offset by higher O&M and DD&A expense. GAAP earnings also included a $0.7 million after-tax loss recognized during the quarter on the early redemption of long-term debt for Gathering’s share of premiums paid by the Company associated with its long-term debt redemptions. Operating revenues increased $1.0 million, or 2%, primarily due to an increase in throughput from Seneca’s new wells in Tioga County. While O&M expense increased $1.5 million, the per unit rate of $0.09 per Mcf remained unchanged. DD&A expense increased $1.2 million primarily due to higher average depreciable plant in service compared to the prior year. Downstream Business Utility Segment The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution Corporation”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania. Three Months Ended March 31,(in thousands) 2025 2024 VarianceGAAP Earnings$63,544 $44,739 $18,805 Adjusted EBITDA$95,270 $78,326 $16,944 The Utility segment’s second quarter GAAP earnings increased $18.8 million, or 42%, primarily as a result of the implementation of the recently approved rate case settlement in the Utility’s New York jurisdiction, which became effective October 1, 2024. For the quarter, customer margin (operating revenues less purchased gas sold) increased $22.2 million, primarily due to the New York rate case settlement. Other income increased $10.8 million, largely due to the New York rate settlement, which required the recognition of non-service pension and post-retirement benefit income and a corresponding reduction in new base rates, resulting in no effect on net income. O&M expense increased by $4.2 million, primarily driven by higher personnel costs, partially offset by a reduction related to amortizations of certain regulatory assets as a result of the New York rate settlement. Further, interest expense increased $2.4 million primarily due to a higher average amount of net borrowings. Corporate and All Other The Company’s operations that are included in Corporate and All Other generated a combined net loss of $3.1 million in the current year second quarter, compared to combined earnings of less than $0.1 million in the prior year. The reduction in earnings during the second quarter was primarily driven by higher interest expense due to a higher average amount of net borrowings. A decrease in investment income on marketable securities and corporate-owned life insurance policies also contributed to the earnings reduction. EARNINGS TELECONFERENCE A conference call to discuss the results will be held on Thursday, May 1, 2025, at 9 a.m. ET. All participants must pre-register to join this conference using the Participant Registration link. A webcast link to the conference call will be provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay will be available following the call through the end of the day, Thursday, May 8, 2025. To access the replay, dial 1-866-813-9403 and provide Access Code 458634. National Fuel is an integrated energy company reporting financial results for four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. Additional information about National Fuel is available at www.nationalfuel.com. Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in economic conditions, including the imposition of additional tariffs on U.S. imports and related retaliatory tariffs, inflationary pressures, supply chain issues, liquidity challenges, and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; impairments under the SEC’s full cost ceiling test for natural gas reserves; changes in the price of natural gas; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in price differentials between similar quantities of natural gas sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; the impact of information technology disruptions, cybersecurity or data security breaches, including the impact of issues that may arise from the use of artificial intelligence technologies; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, water availability and disposal or recycling opportunities of used water, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; the Company’s ability to complete strategic transactions; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; negotiations with the collective bargaining units representing the Company’s workforce, including potential work stoppages during negotiations; uncertainty of natural gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war, as well as economic and operational disruptions due to third-party outages; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof. NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESGUIDANCE SUMMARY As discussed on page 2, the Company is revising its adjusted earnings per share guidance for fiscal 2025. Additional details on the Company's forecast assumptions and business segment guidance are outlined in the table below. The revised adjusted earnings per share guidance range excludes certain items that impacted the comparability of adjusted operating results during the six months ended March 31, 2025, including: (1) the after tax impairment of assets, which reduced earnings by $1.14 per share; (2) after-tax premiums paid on early redemptions of debt, which reduced earnings by $0.02 per share; (3) after-tax unrealized losses on a derivative asset, which reduced earnings by $0.01 per share; and (4) after-tax unrealized losses on other investments, which reduced earnings by $0.02 per share. While the Company expects to record certain adjustments to unrealized gain or loss on a derivative asset and unrealized gain or loss on investments during the remaining six months ending September 30, 2025, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis. Previous FY 2025 Guidance Updated FY 2025 Guidance Consolidated Adjusted Earnings per Share$6.50 to $7.00 $6.75 to $7.05Consolidated Effective Tax Rate~ 25% ~ 25% Capital Expenditures (Millions) Exploration and Production$495 - $515 $495 - $515Pipeline and Storage$130 - $150 $130 - $150Gathering$95 - $110 $95 - $110Utility$165 - $185 $165 - $185Consolidated Capital Expenditures$885 - $960 $885 - $960 Exploration and Production Segment Guidance Commodity Price Assumptions (remaining six months) NYMEX natural gas price$3.50 /MMBtu $3.50 /MMBtuAppalachian basin spot price$2.90 /MMBtu $2.60 /MMBtuRealized natural gas prices, after hedging ($/Mcf)$2.77 - $2.81 $2.72 - $2.76 Production (Bcf)410 to 425 415 to 425 E&P Operating Costs($/Mcf) LOE$0.68 - $0.70 $0.68 - $0.69G&A$0.18 - $0.19 $0.18 - $0.19DD&A$0.63 - $0.67 $0.63 - $0.65 Other Business Segment Guidance(Millions) Gathering Segment Revenues$250 - $260 $250 - $260Pipeline and Storage Segment Revenues$415 - $435 $415 - $435 Utility Segment Guidance(Millions) Customer Margin*$445 - $465 $445 - $465O&M Expense$240 - $250 $240 - $245Non-Service Pension & OPEB Income$23 - $27 $23 - $27 * Customer Margin is defined as Operating Revenues less Purchased Gas Expense. NATIONAL FUEL GAS COMPANYRECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGSQUARTER ENDED MARCH 31, 2025(Unaudited) Upstream Midstream Downstream Exploration & Pipeline & Corporate / (Thousands of Dollars)Production Storage Gathering Utility All Other Consolidated* Second quarter 2024 GAAP earnings$62,065 $30,737 $28,706 $44,739 $25 $166,272 Items impacting comparability: Unrealized (gain) loss on derivative asset (536) (536)Tax impact of unrealized (gain) loss on derivative asset 147 147 Unrealized (gain) loss on other investments (769) (769)Tax impact of unrealized (gain) loss on other investments 162 162 Second quarter 2024 adjusted operating results 61,676 30,737 28,706 44,739 (582) 165,276 Drivers of adjusted operating results** Upstream Revenues Higher (lower) natural gas production 5,322 5,322 Higher (lower) realized natural gas prices, after hedging 31,956 31,956 Midstream Revenues Higher (lower) operating revenues 1,227 819 2,046 Downstream Margins*** Impact of usage and weather 3,011 3,011 Impact of new rates in New York 14,577 14,577 Higher (lower) other operating revenues (924) (924)Operating Expenses Lower (higher) lease operating and transportation expenses (1,196) (1,196)Lower (higher) operating expenses (1,855) (1,248) (1,168) (3,330) (7,601)Lower (higher) property, franchise and other taxes (948) (948)Lower (higher) depreciation / depletion 6,973 745 (966) (685) 6,067 Other Income (Expense) Higher (lower) other income 8,545 612 9,157 (Higher) lower interest expense 331 (891) (1,895) (2,902) (5,357)Income Taxes Lower (higher) income tax expense / effective tax rate (2,331) 241 463 (545) (159) (2,331)All other / rounding (479) (326) 77 51 (45) (722)Second quarter 2025 adjusted operating results 99,118 31,707 27,040 63,544 (3,076) 218,333 Items impacting comparability: Premiums paid on early redemption of debt (1,430) (955) (2,385)Tax impact of premiums paid on early redemption of debt 385 257 642 Unrealized gain (loss) on derivative asset (335) (335)Tax impact of unrealized gain (loss) on derivative asset 90 90 Unrealized gain (loss) on other investments 17 17 Tax impact of unrealized gain (loss) on other investments (4) (4)Second quarter 2025 GAAP earnings$97,828 $31,707 $26,342 $63,544 $(3,063) $216,358 * Amounts do not reflect intercompany eliminations. ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.*** Downstream margin defined as operating revenues less purchased gas expense. NATIONAL FUEL GAS COMPANYRECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHAREQUARTER ENDED MARCH 31, 2025(Unaudited) Upstream Midstream Downstream Exploration & Pipeline & Corporate / Production Storage Gathering Utility All Other Consolidated* Second quarter 2024 GAAP earnings per share$0.67 $0.33 $0.31 $0.48 $0.01 $1.80 Items impacting comparability: Unrealized (gain) loss on derivative asset, net of tax — — Unrealized (gain) loss on other investments, net of tax (0.01) (0.01)Second quarter 2024 adjusted operating results per share 0.67 0.33 0.31 0.48 — 1.79 Drivers of adjusted operating results** Upstream Revenues Higher (lower) natural gas production 0.06 0.06 Higher (lower) realized natural gas prices, after hedging 0.35 0.35 Midstream Revenues Higher (lower) operating revenues 0.01 0.01 0.02 Downstream Margins*** Impact of usage and weather 0.03 0.03 Impact of new rates in New York 0.16 0.16 Higher (lower) other operating revenues (0.01) (0.01)Operating Expenses Lower (higher) lease operating and transportation expenses (0.01) (0.01)Lower (higher) operating expenses (0.02) (0.01) (0.01) (0.04) (0.08)Lower (higher) property, franchise and other taxes (0.01) (0.01)Lower (higher) depreciation / depletion 0.09 0.01 (0.01) (0.01) 0.08 Other Income (Expense) Higher (lower) other income 0.09 0.01 0.10 (Higher) lower interest expense — (0.01) (0.02) (0.03) (0.06)Income Taxes Lower (higher) income tax expense / effective tax rate (0.03) — 0.01 (0.01) — (0.03)All other / rounding (0.02) 0.01 — 0.03 (0.02) — Second quarter 2025 adjusted operating results per share 1.08 0.35 0.30 0.70 (0.04) 2.39 Items impacting comparability: Premiums paid on early redemption of debt, net of tax (0.01) (0.01) (0.02)Unrealized gain (loss) on derivative asset, net of tax — — Unrealized gain (loss) on other investments, net of tax — — Second quarter 2025 GAAP earnings per share$1.07 $0.35 $0.29 $0.70 $(0.04) $2.37 * Amounts do not reflect intercompany eliminations. ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.*** Downstream margin defined as operating revenues less purchased gas expense. NATIONAL FUEL GAS COMPANYRECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGSSIX MONTHS ENDED MARCH 31, 2025(Unaudited) Upstream Midstream Downstream Exploration & Pipeline & Corporate / (Thousands of Dollars)Production Storage Gathering Utility All Other Consolidated*Six months ended March 31, 2024 GAAP earnings$114,548 $54,792 $57,531 $71,289 $1,132 $299,292 Items impacting comparability: Unrealized (gain) loss on derivative asset 3,662 3,662 Tax impact of unrealized (gain) loss on derivative asset (1,004) (1,004)Unrealized (gain) loss on other investments (1,818) (1,818)Tax impact of unrealized (gain) loss on other investments 382 382 Six months ended March 31, 2024 adjusted operating results 117,206 54,792 57,531 71,289 (304) 300,514 Drivers of adjusted operating results** Upstream Revenues Higher (lower) natural gas production (817) (817)Higher (lower) realized natural gas prices, after hedging 33,964 33,964 Midstream Revenues Higher (lower) operating revenues 10,865 (332) 10,533 Downstream Margins*** Impact of usage and weather 2,685 2,685 Impact of new rates in New York 22,442 22,442 Higher (lower) other operating revenues (1,364) (1,364)Operating Expenses Lower (higher) operating expenses (1,742) (2,105) (1,108) (4,575) (9,530)Lower (higher) property, franchise and other taxes (746) (746)Lower (higher) depreciation / depletion 13,816 452 (1,802) (1,309) 11,157 Other Income (Expense) Higher (lower) other income (1,888) (603) 11,720 2,300 11,529 (Higher) lower interest expense 328 (1,271) (3,679) (3,165) (7,787)Income Taxes Lower (higher) income tax expense / effective tax rate (2,338) (246) 905 (1,128) 43 (2,764)All other / rounding (226) 679 262 (38) (219) 458 Six months ended March 31, 2025 adjusted operating results 157,229 64,162 54,185 96,043 (1,345) 370,274 Items impacting comparability: Impairment of assets (141,802) (141,802)Tax impact of impairment of assets 37,169 37,169 Premiums paid on early redemption of debt (1,430) (955) (2,385)Tax impact of premiums paid on early redemption of debt 385 257 642 Unrealized gain (loss) on derivative asset (684) (684)Tax impact of unrealized gain (loss) on derivative asset 184 184 Unrealized gain (loss) on other investments (2,600) (2,600)Tax impact of unrealized gain (loss) on other investments 546 546 Six months ended March 31, 2025 GAAP earnings$51,051 $64,162 $53,487 $96,043 $(3,399) $261,344 * Amounts do not reflect intercompany eliminations. ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.*** Downstream margin defined as operating revenues less purchased gas expense. NATIONAL FUEL GAS COMPANYRECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARESIX MONTHS ENDED MARCH 31, 2025(Unaudited) Upstream Midstream Downstream Exploration & Pipeline & Corporate / Production Storage Gathering Utility All Other Consolidated*Six months ended March 31, 2024 GAAP earnings per share$1.24 $0.59 $0.62 $0.77 $0.02 $3.24 Items impacting comparability: Unrealized (gain) loss on derivative asset, net of tax 0.03 0.03 Unrealized (gain) loss on other investments, net of tax (0.02) (0.02)Six months ended March 31, 2024 adjusted operating results per share 1.27 0.59 0.62 0.77 — 3.25 Drivers of adjusted operating results** Upstream Revenues Higher (lower) natural gas production (0.01) (0.01)Higher (lower) realized natural gas prices, after hedging 0.37 0.37 Midstream Revenues Higher (lower) operating revenues 0.12 — 0.12 Downstream Margins*** Impact of usage and weather 0.03 0.03 Impact of new rates in New York 0.25 0.25 Higher (lower) other operating revenues (0.01) (0.01)Operating Expenses Lower (higher) operating expenses (0.02) (0.02) (0.01) (0.05) (0.10)Lower (higher) property, franchise and other taxes (0.01) (0.01)Lower (higher) depreciation / depletion 0.15 — (0.02) (0.01) 0.12 Other Income (Expense) Higher (lower) other income (0.02) (0.01) 0.13 0.03 0.13 (Higher) lower interest expense — (0.01) (0.04) (0.03) (0.08)Income Taxes Lower (higher) income tax expense / effective tax rate (0.03) — 0.01 (0.01) — (0.03)All other / rounding 0.02 0.02 0.01 (0.01) (0.01) 0.03 Six months ended March 31, 2025 adjusted operating results per share 1.72 0.70 0.60 1.05 (0.01) 4.06 Items impacting comparability: Impairment of assets, net of tax (1.14) (1.14)Premiums paid on early redemption of debt, net of tax (0.01) (0.01) (0.02)Unrealized gain (loss) on derivative asset, net of tax (0.01) (0.01)Unrealized gain (loss) on other investments, net of tax (0.02) (0.02)Rounding (0.01) (0.01)Six months ended March 31, 2025 GAAP earnings per share$0.56 $0.70 $0.59 $1.05 $(0.04) $2.86 * Amounts do not reflect intercompany eliminations. ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.*** Downstream margin defined as operating revenues less purchased gas expense. NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES (Thousands of Dollars, except per share amounts) Three Months Ended Six Months Ended March 31, March 31, (Unaudited) (Unaudited)SUMMARY OF OPERATIONS 2025 2024 2025 2024 Operating Revenues: Utility Revenues$343,574 $290,198 $571,998 $492,119 Exploration and Production and Other Revenues 311,958 264,614 560,818 518,633 Pipeline and Storage and Gathering Revenues 74,418 75,127 146,616 144,549 729,950 629,939 1,279,432 1,155,301 Operating Expenses: Purchased Gas 135,338 105,940 200,675 162,491 Operation and Maintenance: Utility 63,447 59,288 118,691 112,993 Exploration and Production and Other 35,059 32,794 68,600 67,620 Pipeline and Storage and Gathering 42,363 39,340 78,304 74,303 Property, Franchise and Other Taxes 25,214 23,019 47,270 45,434 Depreciation, Depletion and Amortization 111,277 118,935 220,647 234,725 Impairment of Assets — — 141,802 — 412,698 379,316 875,989 697,566 Operating Income 317,252 250,623 403,443 457,735 Other Income (Expense): Other Income (Deductions) 15,232 6,070 22,952 9,801 Interest Expense on Long-Term Debt (39,662) (28,453) (73,024) (56,915)Other Interest Expense (5,095) (6,636) (9,476) (12,910) Income Before Income Taxes 287,727 221,604 343,895 397,711 Income Tax Expense 71,369 55,332 82,551 98,419 Net Income Available for Common Stock$216,358 $166,272 $261,344 $299,292 Earnings Per Common Share Basic$2.39 $1.81 $2.88 $3.25 Diluted$2.37 $1.80 $2.86 $3.24 Weighted Average Common Shares: Used in Basic Calculation 90,500,162 92,114,415 90,640,333 92,011,772 Used in Diluted Calculation 91,176,327 92,512,447 91,312,334 92,478,604 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Unaudited) March 31, September 30,(Thousands of Dollars) 2025 2024 ASSETS Property, Plant and Equipment$14,834,817 $14,524,798 Less - Accumulated Depreciation, Depletion and Amortization 7,487,618 7,185,593 Net Property, Plant and Equipment 7,347,199 7,339,205 Current Assets: Cash and Temporary Cash Investments 39,954 38,222 Cash Held in Trust for Bondholders 51,352 — Receivables - Net 291,132 127,222 Unbilled Revenue 49,077 15,521 Gas Stored Underground 6,413 35,055 Materials and Supplies - at average cost 48,451 47,670 Unrecovered Purchased Gas Costs 3,562 — Other Current Assets 78,532 92,229 Total Current Assets 568,473 355,919 Other Assets: Recoverable Future Taxes 88,623 80,084 Unamortized Debt Expense 7,166 5,604 Other Regulatory Assets 118,800 108,022 Deferred Charges 69,572 69,662 Other Investments 71,958 81,705 Goodwill 5,476 5,476 Prepaid Pension and Post-Retirement Benefit Costs 194,325 180,230 Fair Value of Derivative Financial Instruments 45 87,905 Other 8,326 5,958 Total Other Assets 564,291 624,646 Total Assets$8,479,963 $8,319,770 CAPITALIZATION AND LIABILITIES Capitalization: Comprehensive Shareholders' Equity Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 90,397,698 Shares and 91,005,993 Shares, Respectively$90,398 $91,006 Paid in Capital 1,042,822 1,045,487 Earnings Reinvested in the Business 1,855,366 1,727,326 Accumulated Other Comprehensive Loss (222,975) (15,476)Total Comprehensive Shareholders' Equity 2,765,611 2,848,343 Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs 2,381,126 2,188,243 Total Capitalization 5,146,737 5,036,586 Current and Accrued Liabilities: Notes Payable to Banks and Commercial Paper 208,400 90,700 Current Portion of Long-Term Debt 350,000 500,000 Accounts Payable 127,611 165,068 Amounts Payable to Customers 34,393 42,720 Dividends Payable 46,555 46,872 Interest Payable on Long-Term Debt 19,454 27,247 Customer Advances — 19,373 Customer Security Deposits 30,358 36,265 Other Accruals and Current Liabilities 184,925 162,903 Fair Value of Derivative Financial Instruments 201,464 4,744 Total Current and Accrued Liabilities 1,203,160 1,095,892 Other Liabilities: Deferred Income Taxes 1,072,436 1,111,165 Taxes Refundable to Customers 302,293 305,645 Cost of Removal Regulatory Liability 300,256 292,477 Other Regulatory Liabilities 140,828 151,452 Other Post-Retirement Liabilities 3,404 3,511 Asset Retirement Obligations 193,802 203,006 Other Liabilities 117,047 120,036 Total Other Liabilities 2,130,066 2,187,292 Commitments and Contingencies — — Total Capitalization and Liabilities$8,479,963 $8,319,770 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) Six Months Ended March 31,(Thousands of Dollars) 2025 2024 Operating Activities: Net Income Available for Common Stock$261,344 $299,292 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Impairment of Assets 141,802 — Depreciation, Depletion and Amortization 220,647 234,725 Deferred Income Taxes 25,787 65,187 Premiums Paid on Early Redemption of Debt 2,385 — Stock-Based Compensation 10,487 10,477 Other 14,317 11,874 Change in: Receivables and Unbilled Revenue (197,553) (50,123)Gas Stored Underground and Materials and Supplies 27,861 25,675 Unrecovered Purchased Gas Costs (3,562) — Other Current Assets 13,737 15,201 Accounts Payable 17,322 (15,641)Amounts Payable to Customers (8,327) 13,327 Customer Advances (19,373) (21,003)Customer Security Deposits (5,907) 1,836 Other Accruals and Current Liabilities 21,528 26,927 Other Assets (20,282) (22,165)Other Liabilities (28,343) (9,328)Net Cash Provided by Operating Activities$473,870 $586,261 Investing Activities: Capital Expenditures$(434,260) $(481,958)Other 8,881 (1,189)Net Cash Used in Investing Activities$(425,379) $(483,147) Financing Activities: Changes in Notes Payable to Banks and Commercial Paper 117,700 (8,600)Shares Repurchased Under Repurchase Plan (50,471) (4,230)Reduction of Long-Term Debt (954,086) — Net Proceeds From Issuance of Long-Term Debt 989,019 — Dividends Paid on Common Stock (93,543) (91,048)Net Repurchases of Common Stock Under Stock and Benefit Plans (4,026) (3,914)Net Cash Provided by (Used in) Financing Activities$4,593 $(107,792) Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 53,084 (4,678)Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 38,222 55,447 Cash, Cash Equivalents, and Restricted Cash at March 31$91,306 $50,769 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED) UPSTREAM BUSINESS Three Months Ended Six Months Ended(Thousands of Dollars, except per share amounts)March 31, March 31,EXPLORATION AND PRODUCTION SEGMENT 2025 2024 Variance 2025 2024 VarianceTotal Operating Revenues$311,958 $264,614 $47,344 $560,818 $518,633 $42,185 Operating Expenses: Operation and Maintenance: General and Administrative Expense 18,847 17,165 1,682 38,173 34,958 3,215 Lease Operating and Transportation Expense 71,176 69,662 1,514 136,816 136,736 80 All Other Operation and Maintenance Expense 3,310 2,644 666 7,178 8,188 (1,010)Property, Franchise and Other Taxes 4,275 3,075 1,200 7,657 6,713 944 Depreciation, Depletion and Amortization 64,622 73,448 (8,826) 127,925 145,413 (17,488)Impairment of Assets — — — 141,802 — 141,802 162,230 165,994 (3,764) 459,551 332,008 127,543 Operating Income 149,728 98,620 51,108 101,267 186,625 (85,358) Other Income (Expense): Non-Service Pension and Post-Retirement Benefit Credit 37 100 (63) 74 201 (127)Interest and Other Income (Deductions) 101 1,170 (1,069) 373 (342) 715 Interest Expense on Long-Term Debt (1,949) — (1,949) (1,949) — (1,949)Other Interest Expense (15,091) (15,108) 17 (30,291) (30,377) 86 Income Before Income Taxes 132,826 84,782 48,044 69,474 156,107 (86,633)Income Tax Expense 34,998 22,717 12,281 18,423 41,559 (23,136)Net Income$97,828 $62,065 $35,763 $51,051 $114,548 $(63,497)Net Income Per Share (Diluted)$1.07 $0.67 $0.40 $0.56 $1.24 $(0.68) NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED) MIDSTREAM BUSINESSES Three Months Ended Six Months Ended(Thousands of Dollars, except per share amounts)March 31, March 31,PIPELINE AND STORAGE SEGMENT 2025 2024 Variance 2025 2024 VarianceRevenues from External Customers$71,185 $71,210 $(25) $139,935 $136,036 $3,899 Intersegment Revenues 38,388 36,810 1,578 76,251 66,397 9,854 Total Operating Revenues 109,573 108,020 1,553 216,186 202,433 13,753 Operating Expenses: Purchased Gas 162 325 (163) 121 926 (805)Operation and Maintenance 30,642 29,062 1,580 57,677 55,013 2,664 Property, Franchise and Other Taxes 8,600 8,600 — 17,266 17,320 (54)Depreciation, Depletion and Amortization 18,547 19,490 (943) 37,132 37,704 (572) 57,951 57,477 474 112,196 110,963 1,233 Operating Income 51,622 50,543 1,079 103,990 91,470 12,520 Other Income (Expense): Non-Service Pension and Post-Retirement Benefit Credit 952 1,257 (305) 1,905 2,515 (610)Interest and Other Income 1,794 2,046 (252) 3,833 3,978 (145)Interest Expense (11,700) (12,119) 419 (23,428) (23,843) 415 Income Before Income Taxes 42,668 41,727 941 86,300 74,120 12,180 Income Tax Expense 10,961 10,990 (29) 22,138 19,328 2,810 Net Income$31,707 $30,737 $970 $64,162 $54,792 $9,370 Net Income Per Share (Diluted)$0.35 $0.33 $0.02 $0.70 $0.59 $0.11 Three Months Ended Six Months Ended March 31, March 31,GATHERING SEGMENT 2025 2024 Variance 2025 2024 VarianceRevenues from External Customers$3,233 $3,917 $(684) $6,681 $8,513 $(1,832)Intersegment Revenues 61,797 60,076 1,721 119,480 118,068 1,412 Total Operating Revenues 65,030 63,993 1,037 126,161 126,581 (420)Operating Expenses: Operation and Maintenance 12,275 10,796 1,479 21,703 20,300 1,403 Property, Franchise and Other Taxes 7 94 (87) (227) 117 (344)Depreciation, Depletion and Amortization 10,834 9,611 1,223 21,349 19,068 2,281 23,116 20,501 2,615 42,825 39,485 3,340 Operating Income 41,914 43,492 (1,578) 83,336 87,096 (3,760) Other Income (Expense): Non-Service Pension and Post-Retirement Benefit Credit (Costs) — 9 (9) (1) 19 (20)Interest and Other Income 93 72 21 152 143 9 Interest Expense on Long-Term Debt (1,334) — (1,334) (1,334) — (1,334)Other Interest Expense (4,450) (3,701) (749) (8,661) (7,431) (1,230)Income Before Income Taxes 36,223 39,872 (3,649) 73,492 79,827 (6,335)Income Tax Expense 9,881 11,166 (1,285) 20,005 22,296 (2,291)Net Income$26,342 $28,706 $(2,364) $53,487 $57,531 $(4,044)Net Income Per Share (Diluted)$0.29 $0.31 $(0.02) $0.59 $0.62 $(0.03) NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED) DOWNSTREAM BUSINESS Three Months Ended Six Months Ended(Thousands of Dollars, except per share amounts)March 31, March 31,UTILITY SEGMENT 2025 2024 Variance 2025 2024 VarianceRevenues from External Customers$343,574 $290,198 $53,376 $571,998 $492,119 $79,879 Intersegment Revenues 119 306 (187) 203 393 (190)Total Operating Revenues 343,693 290,504 53,189 572,201 492,512 79,689 Operating Expenses: Purchased Gas 171,777 140,836 30,941 273,249 224,886 48,363 Operation and Maintenance 64,444 60,229 4,215 120,704 114,913 5,791 Property, Franchise and Other Taxes 12,202 11,113 1,089 22,313 21,019 1,294 Depreciation, Depletion and Amortization 17,135 16,268 867 33,962 32,305 1,657 265,558 228,446 37,112 450,228 393,123 57,105 Operating Income 78,135 62,058 16,077 121,973 99,389 22,584 Other Income (Expense): Non-Service Pension and Post-Retirement Benefit Credit 12,299 857 11,442 18,170 1,327 16,843 Interest and Other Income 714 1,340 (626) 1,242 3,250 (2,008)Interest Expense (10,927) (8,528) (2,399) (21,643) (16,986) (4,657)Income Before Income Taxes 80,221 55,727 24,494 119,742 86,980 32,762 Income Tax Expense 16,677 10,988 5,689 23,699 15,691 8,008 Net Income$63,544 $44,739 $18,805 $96,043 $71,289 $24,754 Net Income Per Share (Diluted)$0.70 $0.48 $0.22 $1.05 $0.77 $0.28 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT OPERATING RESULTS AND STATISTICS(UNAUDITED) Three Months Ended Six Months Ended(Thousands of Dollars, except per share amounts)March 31, March 31,ALL OTHER 2025 2024 Variance 2025 2024 VarianceTotal Operating Revenues$— $— $— $— $— $— Operating Expenses: Operation and Maintenance — — — — — — — — — — — — Operating Income — — — — — — Other Income (Expense): Interest and Other Income (Deductions) (222) (41) (181) (358) (119) (239)Interest Expense (131) (84) (47) (248) (165) (83)Loss before Income Taxes (353) (125) (228) (606) (284) (322)Income Tax Benefit (82) (29) (53) (141) (67) (74)Net Loss$(271) $(96) $(175) $(465) $(217) $(248)Net Loss Per Share (Diluted)$— $— $— $(0.01) $— $(0.01) Three Months Ended Six Months Ended March 31, March 31,CORPORATE 2025 2024 Variance 2025 2024 VarianceRevenues from External Customers$— $— $— $— $— $— Intersegment Revenues 1,341 1,286 55 2,683 2,571 112 Total Operating Revenues 1,341 1,286 55 2,683 2,571 112 Operating Expenses: Operation and Maintenance 5,219 5,121 98 9,266 8,916 350 Property, Franchise and Other Taxes 130 137 (7) 261 265 (4)Depreciation, Depletion and Amortization 139 118 21 279 235 44 5,488 5,376 112 9,806 9,416 390 Operating Loss (4,147) (4,090) (57) (7,123) (6,845) (278)Other Income (Expense): Non-Service Pension and Post-Retirement Benefit Costs (212) (387) 175 (423) (774) 351 Interest and Other Income 41,785 40,234 1,551 82,846 81,262 1,584 Interest Expense on Long-Term Debt (36,379) (28,453) (7,926) (69,741) (56,915) (12,826)Other Interest Expense (4,905) (7,683) 2,778 (10,066) (15,767) 5,701 Income (Loss) before Income Taxes (3,858) (379) (3,479) (4,507) 961 (5,468)Income Tax Benefit (1,066) (500) (566) (1,573) (388) (1,185)Net Income (Loss)$(2,792) $121 $(2,913) $(2,934) $1,349 $(4,283)Net Income (Loss) Per Share (Diluted)$(0.04) $0.01 $(0.05) $(0.03) $0.02 $(0.05) Three Months Ended Six Months Ended March 31, March 31,INTERSEGMENT ELIMINATIONS 2025 2024 Variance 2025 2024 VarianceIntersegment Revenues$(101,645) $(98,478) $(3,167) $(198,617) $(187,429) $(11,188)Operating Expenses: Purchased Gas (36,601) (35,221) (1,380) (72,695) (63,321) (9,374)Operation and Maintenance (65,044) (63,257) (1,787) (125,922) (124,108) (1,814) (101,645) (98,478) (3,167) (198,617) (187,429) (11,188)Operating Income — — — — — — Other Income (Expense): Interest and Other Deductions (42,109) (40,587) (1,522) (84,861) (81,659) (3,202)Interest Expense 42,109 40,587 1,522 84,861 81,659 3,202 Net Income$— $— $— $— $— $— Net Income Per Share (Diluted)$— $— $— $— $— $— NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES SEGMENT INFORMATION (Continued)(Thousands of Dollars) Three Months Ended Six Months Ended March 31, March 31, (Unaudited) (Unaudited) Increase Increase 2025 2024 (Decrease) 2025 2024 (Decrease) Capital Expenditures: Exploration and Production$108,384 (1)$124,184 (3)$(15,800) $230,986 (1)(2)$285,141 (3)(4)$(54,155)Pipeline and Storage 15,626 (1) 18,025 (3) (2,399) 35,417 (1)(2) 42,579 (3)(4) (7,162)Gathering 18,499 (1) 19,949 (3) (1,450) 31,526 (1)(2) 39,518 (3)(4) (7,992)Utility 41,867 (1) 37,741 (3) 4,126 78,298 (1)(2) 68,251 (3)(4) 10,047 Total Reportable Segments 184,376 199,899 (15,523) 376,227 435,489 (59,262)All Other — — — — — — Corporate 174 121 53 378 182 196 Eliminations (3,520) — (3,520) (3,520) — (3,520)Total Capital Expenditures$181,030 $200,020 $(18,990) $373,085 $435,671 $(62,586) (1) Capital expenditures for the quarter and six months ended March 31, 2025, include accounts payable and accrued liabilities related to capital expenditures of $44.8 million, $2.4 million, $6.8 million, and $4.8 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2025, since they represent non-cash investing activities at that date.(2) Capital expenditures for the six months ended March 31, 2025, exclude capital expenditures of $63.3 million, $14.4 million, $21.7 million and $20.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2024 and paid during the six months ended March 31, 2025. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2024, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2025.(3) Capital expenditures for the quarter and six months ended March 31, 2024, include accounts payable and accrued liabilities related to capital expenditures of $44.4 million, $5.0 million, $5.5 million, and $8.0 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were excluded from the Consolidated Statement of Cash Flows at March 31, 2024, since they represented non-cash investing activities at that date.(4) Capital expenditures for the six months ended March 31, 2024, exclude capital expenditures of $43.2 million, $31.8 million, $20.6 million and $13.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2023 and paid during the six months ended March 31, 2024. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2023, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2024. DEGREE DAYS Percent Colder (Warmer) Than:Three Months Ended March 31, Normal 2025 2024 Normal(1) Last Year(1) Buffalo, NY(2) 3,226 3,116 2,705 (3.4) 15.2 Erie, PA 3,023 3,017 2,576 (0.2) 17.1 Six Months Ended March 31, Buffalo, NY(2) 5,352 5,000 4,563 (6.6) 9.6 Erie, PA 4,917 4,714 4,240 (4.1) 11.2 (1) Percents compare actual 2025 degree days to normal degree days and actual 2025 degree days to actual 2024 degree days.(2) Normal degree days changed from NOAA 30-year degree days to NOAA 15-year degree days with the implementation of new base rates in New York effective October 2024. NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES EXPLORATION AND PRODUCTION INFORMATION Three Months Ended Six Months Ended March 31, March 31, Increase Increase 2025 2024 (Decrease) 2025 2024 (Decrease) Gas Production/Prices: Production (MMcf) Appalachia 105,514 102,883 2,631 203,232 203,640 (408) Average Prices (Per Mcf) Weighted Average$3.02 $1.98 $1.04 $2.64 $2.14 $0.50 Weighted Average after Hedging$2.94 $2.56 $0.38 $2.74 $2.53 $0.21 Selected Operating Performance Statistics: General and Administrative Expense per Mcf(1)$0.18 $0.17 $0.01 $0.19 $0.17 $0.02 Lease Operating and Transportation Expense per Mcf(1)(2)$0.67 $0.68 $(0.01) $0.67 $0.67 $— Depreciation, Depletion and Amortization per Mcf(1)$0.61 $0.71 $(0.10) $0.63 $0.71 $(0.08) (1) Refer to page 15 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.(2) Amounts include transportation expense of $0.57 per Mcf for the three months ended March 31, 2025 and March 31, 2024. Amounts include transportation expense of $0.57 per Mcf for the six months ended March 31, 2025 and March 31, 2024. NATIONAL FUEL GAS COMPANYAND SUBSIDIARIES Pipeline and Storage Throughput - (millions of cubic feet - MMcf) Three Months Ended Six Months Ended March 31, March 31, Increase Increase 2025 2024 (Decrease) 2025 2024 (Decrease)Firm Transportation - Affiliated 49,240 42,561 6,679 81,110 74,056 7,054 Firm Transportation - Non-Affiliated 185,490 179,697 5,793 356,502 348,303 8,199 Interruptible Transportation 454 1,271 (817) 515 1,389 (874) 235,184 223,529 11,655 438,127 423,748 14,379 Gathering Volume - (MMcf) Three Months Ended Six Months Ended March 31, March 31, Increase Increase 2025 2024 (Decrease) 2025 2024 (Decrease)Gathered Volume 129,771 125,565 4,206 250,732 249,388 1,344 Utility Throughput - (MMcf) Three Months Ended Six Months Ended March 31, March 31, Increase Increase 2025 2024 (Decrease) 2025 2024 (Decrease)Retail Sales: Residential Sales 32,111 27,063 5,048 50,587 45,045 5,542 Commercial Sales 5,420 4,293 1,127 8,339 7,093 1,246 Industrial Sales 302 190 112 501 327 174 37,833 31,546 6,287 59,427 52,465 6,962 Transportation 25,086 22,637 2,449 42,028 40,166 1,862 62,919 54,183 8,736 101,455 92,631 8,824 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESNON-GAAP FINANCIAL MEASURES In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding adjusted operating results, adjusted EBITDA and free cash flow, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company's ongoing operating results or liquidity and for comparing the Company’s financial performance to other companies. The Company's management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP. Management defines adjusted operating results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel's reported GAAP earnings to adjusted operating results for the three and six months ended March 31, 2025 and 2024: Three Months Ended Six Months Ended March 31, March 31,(in thousands except per share amounts) 2025 2024 2025 2024 Reported GAAP Earnings$216,358 $166,272 $261,344 $299,292 Items impacting comparability: Impairment of assets (E&P) — — 141,802 — Tax impact of impairment of assets — — (37,169) — Premiums paid on early redemption of debt (E&P / Midstream) 2,385 — 2,385 — Tax impact of premiums paid on early redemption of debt (642) — (642) — Unrealized (gain) loss on derivative asset (E&P) 335 (536) 684 3,662 Tax impact of unrealized (gain) loss on derivative asset (90) 147 (184) (1,004)Unrealized (gain) loss on other investments (Corporate / All Other) (17) (769) 2,600 (1,818)Tax impact of unrealized (gain) loss on other investments 4 162 (546) 382 Adjusted Operating Results$218,333 $165,276 $370,274 $300,514 Reported GAAP Earnings Per Share$2.37 $1.80 $2.86 $3.24 Items impacting comparability: Impairment of assets, net of tax (E&P) — — 1.14 — Premiums paid on early redemption of debt, net of tax (E&P / Midstream) 0.02 — 0.02 — Unrealized (gain) loss on derivative asset, net of tax (E&P) — — 0.01 0.03 Unrealized (gain) loss on other investments, net of tax (Corporate / All Other) — (0.01) 0.02 (0.02)Rounding — — 0.01 — Adjusted Operating Results Per Share$2.39 $1.79 $4.06 $3.25 Management defines adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel's reported GAAP earnings to adjusted EBITDA for the three and six months ended March 31, 2025 and 2024: Three Months Ended Six Months Ended March 31, March 31,(in thousands) 2025 2024 2025 2024 Reported GAAP Earnings$216,358 $166,272 $261,344 $299,292 Depreciation, Depletion and Amortization 111,277 118,935 220,647 234,725 Other (Income) Deductions (15,232) (6,070) (22,952) (9,801)Interest Expense 44,757 35,089 82,500 69,825 Income Taxes 71,369 55,332 82,551 98,419 Impairment of Assets — — 141,802 — Adjusted EBITDA$428,529 $369,558 $765,892 $692,460 Adjusted EBITDA by Segment Pipeline and Storage Adjusted EBITDA$70,169 $70,033 $141,122 $129,174 Gathering Adjusted EBITDA 52,748 53,103 104,685 106,164 Total Midstream Businesses Adjusted EBITDA 122,917 123,136 245,807 235,338 Exploration and Production Adjusted EBITDA 214,350 172,068 370,994 332,038 Utility Adjusted EBITDA 95,270 78,326 155,935 131,694 Corporate and All Other Adjusted EBITDA (4,008) (3,972) (6,844) (6,610)Total Adjusted EBITDA$428,529 $369,558 $765,892 $692,460 NATIONAL FUEL GAS COMPANYAND SUBSIDIARIESNON-GAAP FINANCIAL MEASURESSEGMENT ADJUSTED EBITDA Three Months Ended Six Months Ended March 31, March 31,(in thousands) 2025 2024 2025 2024 Exploration and Production Segment Reported GAAP Earnings$97,828 $62,065 $51,051 $114,548 Depreciation, Depletion and Amortization 64,622 73,448 127,925 145,413 Other (Income) Deductions (138) (1,270) (447) 141 Interest Expense 17,040 15,108 32,240 30,377 Income Taxes 34,998 22,717 18,423 41,559 Impairment of Assets — — 141,802 — Adjusted EBITDA$214,350 $172,068 $370,994 $332,038 Pipeline and Storage Segment Reported GAAP Earnings$31,707 $30,737 $64,162 $54,792 Depreciation, Depletion and Amortization 18,547 19,490 37,132 37,704 Other (Income) Deductions (2,746) (3,303) (5,738) (6,493)Interest Expense 11,700 12,119 23,428 23,843 Income Taxes 10,961 10,990 22,138 19,328 Adjusted EBITDA$70,169 $70,033 $141,122 $129,174 Gathering Segment Reported GAAP Earnings$26,342 $28,706 $53,487 $57,531 Depreciation, Depletion and Amortization 10,834 9,611 21,349 19,068 Other (Income) Deductions (93) (81) (151) (162)Interest Expense 5,784 3,701 9,995 7,431 Income Taxes 9,881 11,166 20,005 22,296 Adjusted EBITDA$52,748 $53,103 $104,685 $106,164 Utility Segment Reported GAAP Earnings$63,544 $44,739 $96,043 $71,289 Depreciation, Depletion and Amortization 17,135 16,268 33,962 32,305 Other (Income) Deductions (13,013) (2,197) (19,412) (4,577)Interest Expense 10,927 8,528 21,643 16,986 Income Taxes 16,677 10,988 23,699 15,691 Adjusted EBITDA$95,270 $78,326 $155,935 $131,694 Corporate and All Other Reported GAAP Earnings$(3,063) $25 $(3,399) $1,132 Depreciation, Depletion and Amortization 139 118 279 235 Other (Income) Deductions 758 781 2,796 1,290 Interest Expense (694) (4,367) (4,806) (8,812)Income Taxes (1,148) (529) (1,714) (455)Adjusted EBITDA$(4,008) $(3,972) $(6,844) $(6,610) Management defines free cash flow as net cash provided by operating activities, less net cash used in investing activities, adjusted for acquisitions and divestitures. The Company is unable to provide a reconciliation of any projected free cash flow measure to its comparable GAAP financial measure without unreasonable efforts. This is due to an inability to calculate the comparable GAAP projected metrics, including operating income and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.

National Fuel Reports Second Quarter Earnings

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