On November 2, 2023, National Fuel Gas Co (NFG, Financial) announced its consolidated results for the three months and fiscal year ended September 30, 2023. The company reported a GAAP net income of $73.7 million, or $0.80 per share, for Q4, a decrease from $158.1 million, or $1.71 per share, in the prior year. Adjusted operating results stood at $72.2 million, or $0.78 per share, compared to $109.3 million, or $1.19 per share, in the prior year.
Fiscal 2023 Highlights
For the full fiscal year 2023, National Fuel Gas Co generated consolidated net cash provided by operating activities of $1.24 billion, with free cash flow of $275 million. The company increased the shareholder dividend for the 53rd consecutive year to an annual rate of $1.98 per share, marking a 4.2% increase and continuing the company's long history of consistently returning capital to shareholders.
Management Comments
David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, commented on the company's performance, stating:
Despite the headwinds of lower natural gas prices in fiscal 2023, National Fuel delivered strong results, both financially and operationally. As we move into fiscal 2024, the combination of a strong outlook for long-term growth in our regulated businesses, increasing capital efficiency in our non-regulated operations, and expectations of improving natural gas price realizations position us well to deliver long-term value to our shareholders."
Fiscal 2024 Guidance Update
National Fuel Gas Co revised its fiscal 2024 earnings guidance to reflect updated forecast assumptions and projections. The company now projects that earnings will be within the range of $5.40 to $5.90 per share, an increase of 9% from the company’s 2023 adjusted operating results at the midpoint of the updated 2024 guidance range.
Segment Performance
The company's Exploration and Production segment, carried out by Seneca Resources Company, LLC, reported GAAP earnings of $36.772 million for Q4, a decrease from $116.077 million in the prior year. The Pipeline and Storage segment reported GAAP earnings of $23.354 million, a decrease from $25.320 million in the prior year. The Gathering segment reported GAAP earnings of $26.517 million, a decrease from $31.224 million in the prior year. The Utility segment reported a GAAP net loss of $7.179 million, lower than the net loss of $10.852 million in the prior year's fourth quarter.
Looking Ahead
Despite the challenges faced in fiscal 2023, National Fuel Gas Co remains optimistic about its future performance. The company's strong outlook for long-term growth in its regulated businesses, increasing capital efficiency in its non-regulated operations, and expectations of improving natural gas price realizations position it well to deliver long-term value to its shareholders.
Explore the complete 8-K earnings release (here) from National Fuel Gas Co for further details.
