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- **Record Earnings Growth**: Q4 EPS up 58% YoY to $1.22, full-year EPS up 38% to $4.32, driven by capital-efficient Upstream expansion.
- **Inventory Expansion**: 220 new Upper Utica locations double EDA inventory, supporting 20+ years of < $2/MMBtu production.
- **Pipeline Expansion**: 250M/d takeaway capacity (2028) and $57M Shipping Port lateral (2026) underpin mid-single-digit production growth.
- **Acquisition Momentum**: $1.3B Ohio Gas deal doubles utility rate base, with $300M equity issuance planned for spring 2026.
- **Free Cash Flow Strength**: $300M-$350M 2026 free cash flow (40% YoY growth) supports dividend and regulated growth initiatives.

**【CEO Summary Section】**
- **Record Financial Performance**: Q4 2025 adjusted EPS of $1.22 (58% YoY growth), full-year EPS up 38% to $4.32, driven by integrated Upstream and Gathering growth.
- **Capital Efficiency**: 30% improvement since 2023, with $605M capital spending in FY25 vs. $640M in FY24, enabling 9% production growth.
- **Inventory Expansion**: Added 220 Upper Utica locations, doubling EDA inventory to ~400 locations, with 20+ years of economic production at < $2/MMBtu.
- **Pipeline Growth**: Tioga Pathway (2026) and new 250M/d capacity (2028) support mid-single-digit production growth; Shipping Port lateral ($57M, 2026) adds 205M/d capacity.
- **Strategic Acquisition**: $1.3B CenterPoint Ohio Gas deal doubles utility rate base, enhancing free cash flow reinvestment.

**【CFO Financial Commentary】**
- **2026 Guidance**: EPS $7.60-$8.10 (14% midpoint growth), free cash flow $300M-$350M, up 40% YoY, supporting dividend and acquisition.
- **Hedging Strategy**: 65% of 2026 production hedged at $4.00/MMBtu, with 2027-28 swaps >$4.00 and collars at $3.60-$4.80 floors.
- **Debt Management**: $1.3B bridge facility bifurcated into 364-day term loan and traditional bridge; targeting spring 2026 equity issuance for ~$300M equity contribution.
- **Regulated Growth**: FERC rate case filing in 2H26 for Supply Corp, and PA utility rate case to address $15M+ modernization cap exceedance.

**【Upstream & Gathering Update】**
- **Production Growth**: FY25 net production 427Bcfe (9% YoY), with 4 Upper Utica wells matching Lower Utica productivity.
- **Cost Efficiency**: 2026 capital $550M-$610M (3% YoY decline), targeting $500M-$575M by 2028 with mid-single-digit production growth.
- **Market Access**: 85% of 2026 volumes locked into firm sales/transport, with spot exposure optimized for seasonal in-basin pricing.
- **Sustainability**: Equitable Origin A rating for Midstream, A grade for Seneca, enabling premium pricing for responsibly sourced gas.

**【Q&A Highlights】**
- **Upper Utica Development**: 2026 wells ~5% Upper Utica, scaling to balanced mix by 2028; co-development with Lower Utica optimizes midstream infrastructure.
- **In-Basin Demand**: Multiple data center pipeline inquiries leverage NFG's integrated Upstream-Gathering-Transmission model.
- **Debt Allocation**: Parent-level fungible debt structure; ~$300M equity for Ohio Gas acquisition, rest from free cash flow.
- **Acquisition Timing**: Regulatory approvals expected early 2026, closing in Q4 2026; no asset sales planned for financing.

National Fuel Gas Company (NFG) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

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Operating Expenses

Selling, General and Administrative Expenses

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Net Income

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NFG

NFG fundamentals

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