NATIONAL FUEL GAS COMPANY Financial & Statistical Report
2021
National Fuel Gas Company - At A Glance
Upstream Segment | Midstream Segment | Downstream Segment |
Seneca Resources | National Fuel Gas Supply | National Fuel Gas |
Company, LLC | Corporation | |
Distribution Corporation | ||
Empire Pipeline, Inc. |
National Fuel Gas
Midstream Company, LLC
Upstream Business
Exploration & Production
Seneca Resources Company, LLC explores for, develops and produces natural gas and crude oil reserves in Pennsylvania and California. Seneca's natural gas-focused operations are located in Pennsylvania and its oil-focused operations are located in California. Most of Seneca's investment activities are in the Marcellus & Utica Shales in Pennsylvania, where the company controls approximately 1.2 million net prospective acres. Seneca's operations produced approximately 327 Bcfe in fiscal 2021.
Midstream Businesses
Pipeline & Storage
National Fuel Gas Supply Corporation and Empire Pipeline, Inc. provide rate-regulated natural gas transportation and storage services to affiliated and nonaffiliated companies through an integrated system of 2,652 miles of pipeline and 30 underground natural gas storage fields (including three storage fields co-owned with nonaffiliated companies).
Gathering
National Fuel Gas Midstream Company, LLC, through its subsidiaries, builds, owns and operates natural gas pipeline processing facilities in the Appalachian region. As one of the National Fuel Gas system companies, Midstream shares in more than 100 years of experience in transporting natural gas.
Downstream Business
Utility
National Fuel Gas Distribution Corporation sells or transports natural gas to approximately 753,000 customers through a local distribution system located in western New York and northwestern Pennsylvania.
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Table of Contents
National Fuel Gas Company
Consolidated Statements of Income and Earnings Reinvested in the Business…………………......….……… 1
Consolidated Statements of Comprehensive Income……..……….....…………….….…………………………… 2
Consolidated Balance Sheets……………....….………...……………….…………………………………………… 3-4
Consolidated Statements of Cash Flows………………………………………………………………….………… 5
Schedule of Business Segment Information…………...……………....….………...……………….……………… 6-7
Common Stock Data...……………..…...………………………….…..……………………………………………… 8
Research Coverage…………...………………....…….….…………………………………………………………… 8
Selected Financial Ratios & Capitalization Overview…………………….…………...…………………………… 9
Credit Ratings……………………….………….….………………………………….………………………………… 9
Exploration & Production Segment
Seneca Resources Company, LLC
Oil & Gas Production…………...……………...…………….………....….…………………………………………… 10
Oil & Gas Prices……………………………….………..………….…………………...……………………………… 10
Unit Costs ……………………………….………..………….…………………...…………………………………… 10
Oil & Gas Reserves…………………………………….......….………………………….…………………………… 11-12
Pipeline & Storage Segment
National Fuel Gas Supply Corporation/Empire Pipeline, Inc.
Regulatory Overview……………………………………..……………....….………………………………………… 13
Revenues, Volumes and Revenue Rates………………………...………….……………………………………… 14
Transmission & Storage Statistics……………………...……………….…………………………………………… 14
Gathering Segment
National Fuel Gas Midstream Company, LLC
Gathering Statistics……...………………….…………………………………………..………………….…………… 15
Utility Segment
National Fuel Gas Distribution Corporation
Regulatory Overview……………………………………..……………....….………………………………………… 16
Summary of General Rate Changes…………………………………………………………………………………. 17
Revenues, Volumes and Customers………………………………………………………………………………… 18
Principal Officers………………..…………………...…………………………………………………………………………………………… 19
Board of Directors……………………...….……………………………....…………..……………………………………………………….. 20
Investor Information……………………………………………………………………………………………………………………………… 20
This report is neither a representation nor prospectus with regard to the Company's securities and is not furnished in connection with any proposed sales or offer to sell or buy any stock or securities. Data contained herein with respect to any particular year should be considered in conjunction with the notes and comments appearing in the Company's Annual Report on Form 10-K for that year.
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Consolidated Statements of Income and Earnings Reinvested in the Business
(Thousands of Dollars, Except Per Common Share Amounts) | 2021 | 2020 | 2019 | 2018 | 2017 | |||||
INCOME | ||||||||||
Operating Revenues | ||||||||||
Utility and Energy Marketing Revenues | $ | 667,549 | $ | 728,336 | $ | 860,985 | $ | 812,474 | $ | 755,485 |
Exploration and Production and Other Revenues | 837,597 | 611,885 | 636,528 | 569,808 | 617,666 | |||||
Pipeline and Storage and Gathering Revenues | 237,513 | 206,070 | 195,819 | 210,386 | 206,730 | |||||
$ | 1,742,659 | $ | 1,546,291 | $ | 1,693,332 | $ | 1,592,668 | $ | 1,579,881 | |
Operating Expenses | ||||||||||
Purchased Gas | 171,827 | 233,890 | 386,265 | 337,822 | 275,254 | |||||
Operation and Maintenance: (1) | ||||||||||
Utility and Energy Marketing | 179,547 | 181,051 | 171,472 | 168,885 | 169,731 | |||||
Exploration and Production and Other | 173,041 | 148,856 | 147,457 | 139,546 | 141,010 | |||||
Pipeline and Storage and Gathering | 123,218 | 108,640 | 111,783 | 101,338 | 90,918 | |||||
Property, Franchise and Other Taxes | 94,713 | 88,400 | 88,886 | 84,393 | 84,995 | |||||
Depreciation, Depletion and Amortization | 335,303 | 306,158 | 275,660 | 240,961 | 224,195 | |||||
Impairment of Oil and Gas Producing Properties | 76,152 | 449,438 | - | - | - | |||||
$ | 1,153,801 | $ | 1,516,433 | $ | 1,181,523 | $ | 1,072,945 | $ | 986,103 | |
Gain on Sale of Timber Properties | 51,066 | - | - | - | - | |||||
Operating Income | $ | 639,924 | $ | 29,858 | $ | 511,809 | $ | 519,723 | $ | 593,778 |
Other Income (Expense): | ||||||||||
Other Income (Deductions) (1) | (15,238) | (17,814) | (15,542) | (21,174) | (29,777) | |||||
Interest Expense on Long-Term Debt | (141,457) | (110,012) | (101,614) | (110,946) | (116,471) | |||||
Other Interest Expense | (4,900) | (7,065) | (5,142) | (3,576) | (3,366) | |||||
Income (Loss) Before Income Taxes | 478,329 | (105,033) | 389,511 | 384,027 | 444,164 | |||||
Income Tax Expense (Benefit) | 114,682 | 18,739 | 85,221 | (7,494) | 160,682 | |||||
Net Income (Loss) Available for Common Stock | 363,647 | (123,772) | 304,290 | 391,521 | 283,482 | |||||
EARNINGS REINVESTED IN THE BUSINESS | ||||||||||
Balance at Beginning of Year | $ | 991,630 | $ | 1,272,601 | $ | 1,098,000 | 851,669 | 676,361 | ||
1,355,277 | 1,148,829 | 1,403,190 | 1,243,190 | 959,843 | ||||||
Dividends on Common Stock | (164,102) | (156,249) | (148,432) | (144,290) | (140,090) | |||||
Cumulative Effect of Adoption of Authoritative | ||||||||||
Guidance for Hedging | - | (950) | - | - | - | |||||
Cumulative Effect of Adoption of Authoritative | ||||||||||
Guidance for Financial Assets and Liabilities | - | - | 7,437 | - | - | |||||
Cumulative Effect of Adoption of Authoritative | ||||||||||
Reclassification of Stranded Tax Effects | - | - | 10,406 | - | - | |||||
Cumulative Effect of Adoption of Authoritative | - | - | 31,916 | |||||||
Guidance for Stock-Based Compensation | - | - | ||||||||
Balance at End of Year | $ | 1,191,175 | $ | 991,630 | $ | 1,272,601 | $ | 1,098,900 | $ | 851,669 |
EARNINGS (LOSS) PER COMMON SHARE: | ||||||||||
Basic: | ||||||||||
Net Income (Loss) Available for Common Stock | $ | 3.99 | $ | (1.41) | $ | 3.53 | $ | 4.56 | $ | 3.32 |
Diluted: | ||||||||||
Net Income (Loss) Available for Common Stock | $ | 3.97 | $ | (1.41) | $ | 3.51 | $ | 4.53 | $ | 3.30 |
Weighted Average Common Shares Outstanding: | ||||||||||
Used in Basic Calculation | 91,130,941 | 87,968,895 | 86,235,550 | 85,830,597 | 85,364,929 | |||||
Used in Diluted Calculation | 91,684,583 | 87,968,895 | 86,773,259 | 86,439,698 | 86,021,386 |
- Fiscal years 2019, 2018 and 2017 reflect the reclassification of non-service pension cost from Operation and Maintenance Expense to Other Income (Deductions).
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Consolidated Statements of Comprehensive Income
Year Ended September 30 (Thousands of Dollars) | 2021 | 2020 | 2019 | 2018 | 2017 | |||||
Net Income (Loss) Available for Common Stock | $ | 363,647 | $ | (123,772) | $ | 304,290 | $ | 391,521 | $ | 283,482 |
Other Comprehensive Income (Loss), Before Tax: | ||||||||||
Increase (Decrease) in the Funded Status of the Pension and Other | ||||||||||
Post-Retirement Benefit Plans | 17,862 | (19,214) | (44,089) | 6,225 | 15,661 | |||||
Reclassification Adjustment for Amortization of Prior Year | ||||||||||
Funded Status of the Pension and Other Post-Retirement | ||||||||||
Benefit Plans | 16,229 | 15,361 | 7,332 | 9,704 | 13,433 | |||||
Unrealized Gain (Loss) on Securities Available for Sale | ||||||||||
Arising During the Period | - | - | - | 132 | 4,008 | |||||
Unrealized Gain (Loss) on Derivative Financial Instruments | ||||||||||
Arising During the Period | (665,371) | 9,862 | 79,301 | (74,103) | 5,347 | |||||
Reclassificaion Adjustment for Realized Gains on | ||||||||||
Securities Available for Sale in Net Income | - | - | - | (430) | (1,575) | |||||
Reclassification Adjustment for Realized (Gains) Losses | ||||||||||
on Derivative Financial Instruments in Net Income | 83,711 | (93,295) | 5,464 | 1,189 | (81,605) | |||||
Cumulative Effect of Adoption of Authoritative Guidance for Hedging | - | 1,313 | - | - | - | |||||
Reclassification Adjustment for the Cumulative Effect of Adoption of | ||||||||||
Authoritative Guidance for Financial Assets and Liabilities | ||||||||||
to Earnings Reinvested in the Business | - | - | (11,738) | - | - | |||||
Other Comprehensive Income (Loss), Before Tax | (547,569) | (85,973) | 36,270 | (57,283) | (44,731) | |||||
Income Tax Expense (Benefit) Related to the Increase (Decrease) in | ||||||||||
the Funded Status of the Pension and Other Post-Retirement | ||||||||||
Benefit Plans | 4,072 | (4,357) | (10,473) | 1,582 | 6,175 | |||||
Reclassification Adjustment for Income Tax Benefit Related | ||||||||||
to the Amortization of the Prior Year Funded Status of the | ||||||||||
Pension and Other Post-Retirement Benefit Plans | 3,762 | 3,566 | 1,698 | 2,437 | 4,929 | |||||
Income Tax Expense (Benefit) Related to Unrealized Gain (Loss) | ||||||||||
on Securities Available for Sale Arising During the Period | - | - | - | (15) | 1,505 | |||||
Income Tax Expense (Benefit) Related to Unrealized Gain (Loss) | ||||||||||
on Derivative Financial Instruments Arising During the Period | (179,028) | 2,578 | 20,619 | (22,547) | 2,009 | |||||
Reclassification Adjustment for Income Tax Benefit (Expense) on Realized | ||||||||||
Losses (Gains) from Securities Available for Sale in Net Income | - | - | - | (158) | (580) | |||||
Reclassification Adjustment for Income Tax Benefit (Expense) | ||||||||||
on Realized Losses (Gains) from Derivative Financial | ||||||||||
Instruments In Net Income | 22,465 | (25,521) | 2,726 | (955) | (34,286) | |||||
Income Tax Expense (Benefit) on Cumulative Effect of Adoption of | ||||||||||
Authoritative Guidance for Hedging | - | 363 | - | - | - | |||||
Reclassification Adjustment for Income Tax Benefit (Expense) | ||||||||||
on the Cumulative Effect of Adoption of Authoritative Guidance for | ||||||||||
Financial Assets and Liabilities to Earnings Reinvested in the Business | - | - | (4,301) | - | - | |||||
Reclassification Adjustment for Stranded Tax Effects Related to the | ||||||||||
2017 Tax Reform Act to Earnings Reinvested in the Business | - | - | 10,406 | - | - | |||||
Income Taxes-Net | (148,729) | (23,371) | 20,675 | (19,656) | (20,248) | |||||
Other Comprehensive Income (Loss) | (398,840) | (62,602) | 15,595 | (37,627) | (24,483) | |||||
Comprehensive Income (Loss) | $ | (35,193) | $ | (186,374) | $ | 319,885 | $ | 353,894 | $ | 258,999 |
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Disclaimer
National Fuel Gas Co. published this content on 11 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 February 2022 14:26:07 UTC.
