Here are 1-3 brief analogies to describe National Fuel Gas (NFG):

• Imagine a company like Consolidated Edison (a large utility company) that not only distributes natural gas to homes and businesses but also owns the natural gas production wells and major pipelines that bring the gas to its utility customers.
• It's similar to a smaller Kinder Morgan (a major natural gas pipeline and storage company) that also operates a local natural gas distribution utility, delivering gas directly to consumers.

• Natural Gas Distribution: Delivers natural gas to residential, commercial, and industrial customers.
• Natural Gas Pipeline and Storage: Provides interstate natural gas transportation and storage services for various markets.
• Natural Gas and Oil Exploration and Production: Engages in the acquisition, exploration, and development of natural gas and oil properties.
• Natural Gas Gathering: Collects natural gas from wells and transports it to processing plants or major transmission pipelines.

National Fuel Gas (NFG) - Major Customers

National Fuel Gas (NFG) is a diversified energy company operating in natural gas utility, pipeline and storage, and exploration and production. A significant portion of its business is conducted through its utility segment, National Fuel Gas Distribution Corporation, which directly serves a large base of end-use customers across western New York and northwestern Pennsylvania. Given the substantial number of direct end-users served by its regulated utility operations, National Fuel Gas can be considered to serve primarily individuals and related end-use entities.

The categories of customers served by National Fuel Gas, primarily through its utility segment, include:

• Residential Customers: These are individual households that rely on National Fuel Gas for their natural gas needs, primarily for heating, cooking, water heating, and other domestic uses.
• Commercial Customers: This category encompasses various businesses, institutions, and other non-residential entities, such as retail stores, restaurants, office buildings, schools, and hospitals, which use natural gas for heating, cooling, water heating, and specific operational requirements.
• Industrial Customers: This segment includes manufacturing plants and other industrial facilities that utilize natural gas as a fuel source for their industrial processes, power generation, and space heating needs.

• Kinder Morgan, Inc. (KMI)
• Enbridge Inc. (ENB)
• Williams Companies, Inc. (WMB)

Accelerated decarbonization policies and electrification mandates, particularly in states where National Fuel Gas operates such as New York, pose a clear emerging threat. These policies aim to transition away from fossil fuels by incentivizing or mandating the electrification of heating, promoting renewable energy, and restricting the use of natural gas in new construction. This trend threatens to diminish long-term demand for natural gas, directly impacting National Fuel Gas's core business across its exploration and production, pipeline and storage, and utility distribution segments.

Exploration and Production (Upstream)

National Fuel Gas's upstream operations, conducted through Seneca Resources Company, LLC, focus on exploring for, developing, and producing natural gas and oil in the Appalachian Region, particularly in the Marcellus and Utica Shales in Pennsylvania.

• Appalachian Basin Natural Gas Production: The Appalachian region (including Pennsylvania, Ohio, and West Virginia) produced approximately 33 billion cubic feet per day (Bcf/d) of natural gas in 2023, making it the second-largest natural gas-producing area globally when compared independently to other countries. Production remained steady at around 33 Bcf/d during the first half of 2025 and reached an estimated 35 Bcf/d in July 2024. By 2025, the East region's output is projected to be 33.9 Bcf/d, and is expected to climb to 53.8 Bcf/d by 2050. Pennsylvania's annual natural gas production grew to 7.1 trillion cubic feet (Tcf) in 2020.

Pipeline and Storage & Gathering (Midstream)

NFG's midstream operations involve interstate natural gas transportation and storage services through an integrated system of pipelines and underground storage fields in western New York and Pennsylvania. Their gathering segment builds, owns, and operates facilities in the Appalachian region.

• U.S. Midstream Oil and Gas Market: The overall United States Midstream Oil and Gas Market was valued at USD 9.2 billion in 2023 and is anticipated to reach USD 17.10 billion in 2025, with an expected growth to USD 20.41 billion by 2030, at a compound annual growth rate (CAGR) of 3.60% during 2025–2030. The Northeast US oil and gas market, specifically driven by natural gas production from the Marcellus and Utica Shale formations, is a major contributor to the country's natural gas output.

Utility (Downstream)

National Fuel Gas Distribution Corporation, NFG's utility segment, sells natural gas or provides natural gas transportation services to more than 754,000 customers in western New York and northwestern Pennsylvania.

• U.S. Natural Gas Distribution Market: The U.S. natural gas distribution market was valued at USD 170.0 billion in 2024 and is expected to increase to USD 186.0 billion by 2032, growing at a CAGR of 1.0% during 2025–2032.
• Natural Gas Customers in New York and Pennsylvania: New York has 5 million natural gas customers, while Pennsylvania has nearly 3.1 million natural gas customers. National Fuel Gas serves over 740,000 customers across western New York and northwestern Pennsylvania.

Energy Marketing

The Energy Marketing segment markets natural gas to industrial, commercial, public authority, and residential end-users located in New York and Pennsylvania.

• Natural Gas Consumption in New York and Pennsylvania: Total annual natural gas sendout in New York is about 1,235 Bcf and in Pennsylvania about 1,400 Bcf (based on 2020 data).

National Fuel Gas (NFG) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and anticipated market dynamics:

1. Rate Case Settlements and Increases in Regulated Businesses: The Utility segment is expected to see continued revenue growth from rate settlements. A three-year settlement proposal filed with the New York State utility commission is anticipated to increase annual revenue by $86 million over three years, with a $57 million impact in fiscal 2025 and the remainder in fiscal 2026 and 2027. This follows a prior rate settlement in its Pennsylvania service territory that became effective in August 2023.
2. Infrastructure Expansion Projects in Pipeline & Storage: National Fuel Gas is advancing significant pipeline and storage projects. The Tioga Pathway Project, for which an application has been filed, is projected to provide 190,000 dekatherms per day of firm transportation capacity and generate $15 million in annual expansion revenues, with an expected online date in late 2026. Additionally, the company has filed an application for the Shippingport Lateral Project, aiming to enhance pipeline capacity and generate further revenue. These projects, along with new firm transportation agreements, are intended to capitalize on regional population growth and rising industrial demand.
3. Increased Natural Gas Production from Exploration & Production (E&P): Seneca Resources, NFG's E&P segment, achieved record natural gas production of 426 Bcf in fiscal year 2025, a 9% increase. The company forecasts continued production growth, projecting 440-455 BCFE for fiscal 2026. This growth is supported by optimized development plans in its Eastern Development Area, including the Upper Utica zone, which extends its development runway to over 15 years of core locations.
4. Acquisition of CenterPoint Energy's Ohio Natural Gas Utility: A significant driver of future regulated earnings growth is the acquisition of CenterPoint Energy's Ohio natural gas utility for $2.62 billion, expected to close in late 2026. This acquisition is anticipated to effectively double National Fuel Gas's regulated rate base.
5. Growth in Gathering Segment Throughput: The Gathering segment experienced a 6% increase in throughput and revenues in the prior year, driven by expanding volumes from both affiliated and third-party customers. This trend is expected to continue as Seneca's production increases and additional third-party volumes are transported.

Share Repurchases

• In March 2024, National Fuel Gas authorized a new share repurchase program of up to $200 million, targeting completion by the end of fiscal 2025.
• During fiscal year 2024, the company repurchased $65 million of common stock as part of this program.

Share Issuance

• In May 2020, National Fuel Gas announced a public offering of 3,800,000 shares of common stock at $39.50 per share, yielding approximately $144.8 million in net proceeds for general corporate purposes, including potential acquisitions.
• In October 2025, as part of the financing for the CenterPoint Energy Ohio acquisition, National Fuel plans to utilize approximately $300 to $400 million of common equity.

Outbound Investments

• National Fuel Gas is acquiring CenterPoint Energy's Ohio natural gas utility business for $2.62 billion; this transaction is expected to close in late 2026 and will significantly expand the company's regulated rate base.
• In 2020, NFG acquired upstream and gathering assets from Shell (SWEPI LP) in Pennsylvania for $282.8 million.

Capital Expenditures

• For fiscal year 2025, consolidated capital expenditures are projected to be between $885 million and $970 million, consistent with fiscal 2024 levels. Integrated Upstream and Gathering segment expenditures are expected to decrease by 3% at the midpoint to $550 million to $610 million, with a focus on improving capital efficiency.
• Capital expenditures are expected to increase by approximately 10% from fiscal 2025, primarily driven by growth-related spending on the Tioga Pathway and Shipping Port Lateral pipeline projects.
• From fiscal 2023 to fiscal 2024, the E&P segment achieved a 30% improvement in capital efficiency, with production increasing by 20% while capital expenditures were reduced by 15%. The primary focus remains on organic investments in regulated growth and mid-single-digit production growth in Appalachian shale development (Marcellus and Utica).