National Fuel Gas Company Reports Revenue Growth and Increased Net Income for Q2 Fiscal 2025

National Fuel Gas Company reported a significant increase in its financial performance for the second quarter of fiscal 2025, with operating revenues reaching $729.9 million, up from $629.9 million in the same period last year. The company's net income available for common stock was $216.4 million, compared to $166.3 million in the prior year, reflecting a 30% increase. For the six months ended March 31, 2025, total revenues were $1.28 billion, a rise from $1.16 billion in the previous year, while net income for the period decreased to $261.3 million from $299.3 million, primarily due to non-cash impairment charges in the Exploration and Production segment.

The company experienced notable changes in its revenue streams, particularly in the Utility segment, which saw revenues increase by $53.2 million for the quarter, driven by higher retail gas sales and new base delivery rates approved by the New York Public Service Commission. The Exploration and Production segment also contributed positively, with revenues rising by $47.3 million due to increased natural gas production and higher average prices. However, the Gathering segment reported a decrease in earnings, attributed to rising operational costs and a shift in the producer mix affecting revenue.

Strategically, National Fuel Gas has been active in expanding its operations, particularly through the Tioga Pathway Project, which aims to enhance transportation capacity for shale gas supplies. The project is expected to be completed by late 2026 and has an estimated cost of $101 million. Additionally, the company has been repurchasing shares under a $200 million program initiated in March 2024, with 774,768 shares repurchased at an average price of $63.74 during the six months ended March 31, 2025.

Operationally, the company reported a total of 90,351,976 shares outstanding as of April 30, 2025. The Utility segment's customer base benefited from a weather normalization adjustment mechanism, which helped stabilize earnings despite fluctuations in weather conditions. The company also noted a decrease in cash provided by operating activities, totaling $473.9 million for the six months ended March 31, 2025, down from $586.3 million in the prior year, primarily due to timing issues related to gas cost recovery.

Looking ahead, National Fuel Gas remains optimistic about its financial outlook, expecting to meet its capital requirements through a combination of cash from operations and short-term borrowings. The company is also closely monitoring market conditions and regulatory changes that could impact its operations, particularly in light of ongoing discussions around climate change and greenhouse gas emissions regulations.