National Fuel Gas Company (NFG, Financial) (3.2%) (NFG – $68.70 – NYSE), based in Williamsville, New York, is a gas and pipeline utility with a growing exploration and production business. The gas utility serves 750,000 customers in Buffalo, New York and Erie and Sharon, Pennsylvania. The pipeline & storage (P&S) business operates 3,000 miles of pipe and 34 storage facilities primarily in the state of NY. The E&P business, Seneca Resources, operates in California and Appalachia (owns 1.2 million net acres), primarily the Marcellus and Utica shales. Seneca’s total proved gas and oil reserves at year-end FY 2021 were 3,853 Bcfe, an increase of 395 Bcfe, or 11%, from FY 2020. The proved reserves base is approximately 97% natural gas and 3% oil. The significant long-term value of the Marcellus/Utica acreage is further enhanced by the rise in natural prices. In 2021-22, higher spot and future oil and gas prices are expect to result in growing free cash flow over the next few years.
From Mario Gabelli (Trades, Portfolio)'s Gabelli Value 25 Fund first-quarter commentary.
