National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG)
today announced consolidated results for the fourth quarter and fiscal
year ended September 30, 2015.
National Fuel had a consolidated loss for the quarter ended September
30, 2015, of $187.7 million, or $2.22 per share, compared to the prior
year’s fourth quarter earnings of $57.4 million, or $0.68 per share, a
decrease of $245.1 million, or $2.90 per share. The decrease is largely
due to a $240.8 million non-cash charge to writedown the value of Seneca
Resources Corporation’s (“Seneca”) oil and natural gas reserves.
Consolidated earnings for the fourth quarter, exclusive of Seneca’s
writedown and other items impacting comparability (“Operating Results”),
were $34.9 million, or $0.41 per share, compared to $50.4 million, or
$0.59 per share, in the prior year’s fourth quarter. (Note: All
references to earnings per share are to diluted earnings per share, and
all amounts used in the discussion of earnings are after tax unless
otherwise noted.)
For the fiscal year ended September 30, 2015, National Fuel had a
consolidated loss of $379.4 million, or $4.50 per share, compared to
earnings of $299.4 million, or $3.52 per share, from the prior year. The
decrease is largely due to $650.2 million of non-cash charges to write
down the value of Seneca’s oil and natural gas reserves. Excluding
Seneca’s writedown and the other items impacting comparability,
Operating Results for the fiscal year were $252.5 million, or $2.97 per
share, compared to $291.8 million, or $3.43 per share, in the prior
fiscal year.
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OPERATING RESULTS
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Three Months Ended
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Fiscal Year Ended
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September 30,
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September 30,
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2015
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2014
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2015
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2014
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(in thousands except per share amounts)
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Reported GAAP earnings (loss)
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$
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(187,703
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$
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57,431
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$
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(379,427
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$
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299,413
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Items impacting comparability1:
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Impairment of oil and gas properties
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240,837
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650,160
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Deferred income tax adjustments
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(13,206
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(7,000
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(13,206
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(4,000
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Reversal of stock-based compensation
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(5,054
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(5,054
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Gain on life insurance policies
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(3,635
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Operating Results
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$
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34,874
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$
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50,431
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$
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252,473
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$
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291,778
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Reported GAAP earnings (loss) per share
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$
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(2.22
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$
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0.68
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$
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(4.50
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$
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3.52
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Items impacting comparability1:
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Impairment of oil and gas properties
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2.83
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7.64
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Deferred income tax adjustments
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(0.15
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(0.08
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(0.15
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(0.05
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Reversal of stock-based compensation
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(0.06
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(0.06
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Gain on life insurance policies
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(0.04
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EPS impact of dilutive shares
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0.01
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0.04
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Rounding
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(0.01
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Operating Results
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$
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0.41
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$
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0.59
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$
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2.97
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$
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3.43
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1 See discussion of the individual items impacting
comparability in segment earnings below.
MANAGEMENT COMMENTS
Ronald J. Tanski, President and Chief Executive Officer of National Fuel
Gas Company, stated: “The continuation of low oil and natural gas
commodity prices required us to write down the balance sheet value of
our 2.3 trillion cubic feet equivalent of oil and natural gas reserves.
This large adjustment distracts from an otherwise solid quarter and
fiscal year of operations across all our segments.
“We continued to grow our midstream business, where three more
interstate pipeline projects are going into service in November, and
we’ve expanded our gathering pipelines to reach new production locations
being developed by Seneca.
“Seneca continues to drive down its drilling and completion costs in its
development program and maintain a constant focus on seeking markets for
its production.
“Customers of our downstream utility and energy marketing segments
continue to benefit from the low prices we are experiencing during this
low point in the commodity price cycle.
“Our integrated business model and balance among operations across the
natural gas value chain allow us to maintain our operations with a
longer term view. We have a strong base of assets, a large base of
reserves, and the financial strength that will allow us to continue to
achieve meaningful growth.”
OPERATIONS UPDATE
Seneca's total fourth quarter fiscal 2015 production was 37.6 billion
cubic feet equivalent ("Bcfe"), a decrease of 8.3 Bcfe, or 18 percent,
from the prior fiscal year's fourth quarter, and an increase of 1.4
Bcfe, or 4 percent, versus the third quarter of fiscal 2015. Natural gas
and crude oil production for the quarter was 33.0 billion cubic feet
(“Bcf”) and 778 thousand barrels ("Bbls"), respectively. As a result of
persistently low local spot prices in the Appalachian basin, Seneca
voluntarily curtailed approximately 13.0 Bcf of natural gas production
during the quarter. Absent price-related curtailments, Seneca's fourth
quarter fiscal 2015 natural gas production would have been approximately
46.0 Bcf, or nearly 500 million cubic feet ("MMcf") per day.
During fiscal year 2015, Seneca replaced 373 percent of production to
reach a total of 2.344 trillion cubic feet equivalent (“Tcfe”) of proved
crude oil and natural gas reserves as of September 30, 2015. Seneca’s
continued success through the drill bit in the Marcellus and Utica
shales led to a 459 Bcf, or 27 percent increase in natural gas reserves,
which totaled 2.142 Tcf at fiscal year end. Crude oil reserves, which
decreased by 12 percent largely due to production, totaled 33.7 million
Bbls at September 30, 2015. Consolidated finding and development costs
for the year were $0.96 per thousand cubic feet equivalent (“Mcfe”),
down from fiscal 2014’s $1.15 per Mcfe. In the Marcellus Shale, Seneca's
finding and development costs in fiscal 2015 were $0.79 per Mcf, down
from $1.00 per Mcf in fiscal 2014.
Seneca's average realized natural gas price, after the impact of
hedging, for the fourth quarter was $3.35 per Mcf, reflecting $1.11 per
Mcf of uplift from financial hedges settled during the quarter. Seneca
continued to strengthen and protect its future cash flows during the
fourth quarter, adding approximately 6 Bcf of fixed-price physical
natural gas sales and 156 thousand barrels ("MBbl") of NYMEX oil swaps
to its hedge book for fiscal 2016. Seneca's fiscal 2016 natural gas
production is now 67 percent hedged at the midpoint of production
guidance, with 119.9 Bcf of gas production locked-in at an average net
realized price of $3.45 per Mcf. In California, Seneca's fiscal 2016 oil
production is now 48 percent hedged at an average hedge price of $88.24
per Bbl.
As of November 1, 2015, National Fuel's Pipeline and Storage segment had
placed the Westside Expansion & Modernization and Tuscarora Lateral
projects into service. The Westside Expansion & Modernization project
along National Fuel Gas Supply Corporation's Line N corridor was built
on budget at a total capital cost of $86 million and will transport
175,000 Dth per day of natural gas for producers, including Seneca. The
Tuscarora Lateral, a project designed to sell storage services for the
first time to utility customers along National Fuel's Empire Pipeline,
also came in on budget at a capital cost of $58.5 million and added an
incremental 49,000 Dth per day of transportation capacity. Combined,
these two projects will generate approximately $20 million in
incremental annual demand revenues.
National Fuel is also nearing completion of compression facilities for
the Northern Access 2015 expansion project, a joint project with
Tennessee Gas Pipeline's Niagara Expansion. The Northern Access 2015
project provides capacity to transport 140,000 Dth per day of Seneca's
WDA production from a TGP interconnect with National Fuel's Clermont
Gathering System to the Canadian border at Niagara. National Fuel began
service on 40,000 Dth per day of capacity on November 1, 2015, and
expects the remaining 100,000 Dth per day to go in-service by December
1, 2015. At an estimated capital cost of $67.5 million, Northern Access
2015 will generate approximately $13 million in annual demand revenues
for National Fuel's Pipeline and Storage segment.
DISCUSSION OF RESULTS BY SEGMENT
The following discussion of the earnings of each segment is summarized
in a tabular form at pages 11 through 14 of this report. It may be
helpful to refer to those tables while reviewing this discussion.
Upstream Business
Exploration and Production Segment
The Exploration and Production segment operations are carried out by
Seneca Resources Corporation (“Seneca”). Seneca explores for, develops
and produces natural gas and oil reserves, primarily in Pennsylvania and
California.
The Exploration and Production segment’s loss in the fourth quarter of
fiscal 2015 of $207.0 million, or $2.45 per share, compares to earnings
of $33.7 million, or $0.40 per share, in the prior year’s fourth
quarter, a decrease of $240.7 million or $2.85 per share. The decrease
was mainly due to a non-cash charge of $240.8 million to write down the
value of Seneca’s oil and natural gas reserves.
Seneca uses the full cost method of accounting for determining the book
value of its oil and natural gas properties. This accounting method
requires that Seneca perform a quarterly “ceiling test” to compare the
present value of future revenues from its oil and natural gas reserves
based on an unweighted arithmetic average of the first day of the month
oil and gas prices for each month within the 12-month period prior to
the end of the reporting period (“the ceiling”) with the book value of
those reserves at the balance sheet date. If the book value of the
reserves exceeds the ceiling, a non-cash impairment charge must be
recorded in order to reduce the book value of the reserves to the
calculated ceiling. Unless oil and gas prices improve significantly,
Seneca expects one or more additional impairment charges for the fiscal
year ending September 30, 2016.
In the fourth quarter of both fiscal 2015 and 2014, Seneca reduced its
deferred income tax liability $13.2 million and $7.0 million,
respectively. The adjustment was largely due to an anticipated increase
in firm transportation of natural gas to Canadian delivery points, which
decreased the effective tax rate used in the calculation of deferred tax
expense. Also, as a result of the Company’s net loss in fiscal 2015,
Seneca reversed $1.8 million of long-term, performance-based executive
stock compensation in the current year’s fourth quarter.
Excluding these items, Operating Results in the Exploration and
Production segment in the current year’s fourth quarter were $18.8
million, or $0.22 per share, compared to $26.7 million, or $0.31 per
share, in the prior year’s fourth quarter, a decrease of $7.9 million or
$0.09 per share. The decrease in Operating Results is mainly due to
lower natural gas production and lower crude oil prices. The weighted
average crude oil price received by Seneca (after hedging) for the
quarter ended September 30, 2015, was $66.40 per barrel (“Bbl”), a
decrease of $27.30 per Bbl compared to the prior year’s fourth quarter.
Higher natural gas prices realized after hedging increased operating
results. The weighted average natural gas price realized after hedging
for the quarter ended September 30, 2015, was $3.35 per thousand cubic
feet ("Mcf"), an increase of $0.16 per Mcf compared to the prior year’s
fourth quarter. That increase was largely the result of the decrease in
spot volumes quarter over quarter. In the fourth quarter of fiscal 2014,
Seneca had 9.1 Bcf of spot volumes that were sold at an average price of
$2.39 per Mcf. Seneca did not have any spot volumes during the fourth
quarter of fiscal 2015.
Overall production of natural gas and crude oil for the current quarter
of 37.6 Bcfe decreased approximately 8.3 Bcfe, compared to the prior
year’s fourth quarter. The decrease in production was from Seneca’s
Appalachia properties and was largely due to approximately 13.0 Bcfe of
voluntary pricing related curtailments in the current year’s fourth
quarter. California production of 5.4 Bcfe was consistent with the prior
year’s fourth quarter.
On a per unit basis, quarterly depletion expense of $1.23 per Mcfe
decreased $0.53 per Mcfe due to higher natural gas reserve balances at
September 30, 2015, and the ceiling test impairment charges recorded in
the current year’s second and third quarters. On a per unit basis, lease
operating and transportation expenses (“LOE”) at $1.07 per Mcfe
increased $0.05 per Mcfe compared to the prior year’s fourth quarter
largely due to the pricing related curtailments discussed above (which
increased the relative proportion of higher cost California oil
production to the total), and higher transportation costs in Appalachia.
Lower overall production, due to curtailments, also caused per unit
general and administrative expenses (“G&A”) to increase by $0.07 to
$0.41 per Mcfe.
The Exploration and Production segment’s loss for the fiscal year ended
September 30, 2015, of $557.0 million, or $6.60 per share, compares to
earnings of $121.6 million, or $1.43 per share, in the prior fiscal
year, a decrease of $678.6 million or $8.03 per share. The decrease was
mainly due to non-cash charges totaling $650.2 million recorded in the
current fiscal year to write down the value of Seneca’s oil and natural
gas reserves.
In addition to the ceiling test charges, other items impacted the
comparability of fiscal 2015 and 2014 results. Seneca reduced its
deferred tax liability by a total of $13.2 million in fiscal 2015, and
adjusted G&A for the year by $1.8 million as described above. The net
adjustment to reduce deferred taxes in 2014 was $4.0 million. Excluding
these items from the respective fiscal years, Operating Results in the
Exploration and Production segment were $78.2 million, or $0.92 per
share, compared to $117.6 million, or $1.38 per share in the prior year,
a decrease of $39.4 million or $0.46 per share. The decrease in
Operating Results is mainly due to lower commodity prices realized after
hedging. The weighted average natural gas price received by Seneca
(after hedging) for the fiscal year ended September 30, 2015, was $3.38
per Mcf, a decrease of $0.18 per Mcf compared to the prior year. The
weighted average crude oil price realized after hedging for the current
fiscal year was $70.36 per Bbl, a decrease of $25.19 per Bbl compared to
the prior year.
Overall production of natural gas and crude oil for the fiscal year
ended September 30, 2015, of 157.8 Bcfe decreased approximately 2.8 Bcfe
compared to the prior year, due to pricing related curtailments in
Appalachia in the current year.
On a per unit basis for the fiscal year ended September 30, 2015,
depletion expense of $1.52 per Mcfe decreased $0.33 per Mcfe due to
higher natural gas reserve balances at September 30, 2015, and the
ceiling test impairment charges recorded in the current year’s second
and third quarters. On a per unit basis, LOE at $1.06 per Mcfe increased
$0.03 per Mcfe and G&A at $0.42 per Mcfe increased $0.02 per Mcfe. The
per unit increases in LOE and G&A are due to the reasons noted above for
the quarter.
Midstream Businesses
Pipeline and Storage Segment
The Pipeline and Storage segment’s operations are carried out by
National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire
Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides
natural gas transportation and storage services to affiliated and
non-affiliated companies through an integrated system of pipelines and
underground natural gas storage fields in western New York and
Pennsylvania.
As a result of the ongoing pricing basis differentials in the
Appalachian region, the Pipeline and Storage segment continues to see
increased demand for transportation services from producers and
marketers to move natural gas supplies to higher priced markets.
The Pipeline and Storage segment’s earnings of $18.5 million, or $0.22
per share, for the quarter ended September 30, 2015, decreased $0.6
million, or less than $0.01 per share when compared with the same period
in the prior fiscal year. In the fourth quarter, Supply and Empire
reversed a combined $1.2 million of long-term, performance-based
executive stock compensation. Excluding this item, Operating Results in
the Pipeline and Storage segment of $17.3 million, or $0.20 per share,
decreased $1.9 million, or $0.02 per share. Higher transportation
revenues from the Mercer Expansion project, which was placed in service
in the current year’s first quarter were more than offset by higher
operation and maintenance expense as well as increased interest expense
related to an incremental long-term debt issuance in the quarter ended
June 30, 2015.
The Pipeline and Storage segment’s earnings of $80.4 million, or $0.95
per share, for the fiscal year ended September 30, 2015, increased $2.8
million, or $0.04 per share, when compared with the same period in the
prior fiscal year. Excluding the $1.2 million reversal mentioned above,
Operating Results in the Pipeline and Storage segment were $79.1
million, or $0.93 per share, an increase of $1.6 million or $0.02 per
share for the fiscal year. The increase in earnings is due to higher
non-affiliated revenues from the Mercer Expansion project and higher
transportation revenues from additional new short-term firm
transportation contracts on both the Supply Corporation and Empire
systems. Earnings also benefited from a higher allowance for funds used
during construction (AFUDC) associated with various pipeline expansion
projects. Earnings were reduced by higher operation and maintenance
expense, higher depreciation expense and higher property taxes due to
the completion of various expansion projects, as well as increased
interest expense related to an incremental long-term debt issuance in
the quarter ended June 30, 2015.
Gathering Segment
The Gathering segment’s operations are carried out by National Fuel Gas
Midstream Corporation’s (“Midstream”) subsidiary limited liability
companies. The Gathering segment constructs, owns and operates natural
gas pipeline gathering facilities in the Appalachian region and
currently provides the gathering infrastructure for transporting
Seneca’s Marcellus Shale production to the interstate pipeline system.
The Gathering segment’s earnings of $7.6 million, or $0.09 per share,
for the quarter ended September 30, 2015, decreased $2.9 million, or
$0.03 per share, when compared with the same period in the prior fiscal
year. The decrease in earnings is primarily due to lower gathering
revenues resulting from Seneca’s lower production volumes in Appalachia
compared to the prior year’s fourth quarter.
The Gathering segment’s earnings of $31.8 million, or $0.38 per share,
for the fiscal years ended September 30, 2015 compares to earnings of
$32.7 million, or $0.39 per share, in the prior fiscal year. The
decrease in earnings is mainly due to higher depreciation, operating
expenses and income taxes. Higher gathering revenues, mostly due to a
change in the mix of Seneca’s production among Midstream's three major
gathering systems and a 0.9 Bcf increase in gathered volumes, largely
offset the higher expenses in the current fiscal year.
Downstream Businesses
Utility Segment
The Utility segment operations are carried out by National Fuel Gas
Distribution Corporation (“Distribution”), which sells or transports
natural gas to customers located in western New York and northwestern
Pennsylvania.
The Utility segment’s loss of $3.3 million, or $0.04 per share, for the
quarter ended September 30, 2015, compared to a loss of $0.5 million, or
$0.01 per share, in the prior year’s fourth quarter. In the fourth
quarter of fiscal 2015, Distribution reversed $1.1 million of long-term,
performance-based executive stock compensation. Excluding this item,
Operating Results in the Utility segment, a loss of $4.4 million, or
$0.05 per share, compares to a loss of $0.5 million, or $0.01 per share.
The increased loss is mainly due to higher pension and other operation
and maintenance expense.
The Utility segment’s earnings of $63.3 million, or $0.75 per share, for
the fiscal year ended September 30, 2015, decreased $0.8 million, or
less than $0.01 per share, when compared with the prior year. Excluding
the $1.1 million reversal noted above, Operating Results in the Utility
segment of $62.2 million, or $0.73 per share, decreased $1.9 million or
$0.02 per share, The decrease in earnings was due to higher depreciation
expense, higher pension expense and other operation and maintenance
expense mainly associated with the replacement of Distribution’s
customer billing system. The impact of regulatory true-up adjustments
and higher capacity release revenues partially offset the higher
expenses.
Energy Marketing Segment
National Fuel Resources, Inc. (“NFR”) comprises the Company’s Energy
Marketing segment. NFR markets natural gas to industrial, wholesale,
commercial, public authority and residential customers primarily in
western and central New York and northwestern Pennsylvania, offering
competitively priced natural gas to its customers.
The Energy Marketing segment’s earnings for the quarter ended September
30, 2015, of $0.03 million compared to earnings of $0.7 million in the
prior year’s fourth quarter. The decrease in earnings was due to lower
margins. Earnings for the fiscal year ended September 30, 2015, of $7.8
million, or $0.09 per share, increased $1.1 million, or $0.01 per share,
compared to the prior year primarily due to higher per unit margins,
which benefited from the weak pricing basis in the Northeast.
Corporate and All Other
The Corporate and All Other category primarily includes corporate
operations. The category also includes the remaining operations of
Seneca’s Northeast division that markets high quality hardwoods from
Appalachian land holdings.
The Corporate and All Other category loss of $3.5 million in the quarter
ended September 30, 2015, compares to a loss of $6.0 million in the
prior year’s fourth quarter. In the fourth quarter, the Corporate and
All Other category reversed $0.9 million of long-term, performance-based
executive stock compensation. Excluding this item, Operating Results in
the Corporate and All category, a loss or $4.4 million compares to a
loss of $6.0 million in the prior year’s fourth quarter. The decreased
loss is due to lower income tax expense.
The Corporate and All Other category loss of $5.7 million in the fiscal
year ended September 30, 2015, compares to a loss of $3.1 million in the
prior year. The comparability of the fiscal year results is impacted by
a $3.6 million gain recognized on corporate-owned executive life
insurance policies recorded in the prior year’s second quarter and the
$0.9 million reversal noted above. Excluding these items, Operating
Results for the fiscal year ended September 30, 2015, a loss of $6.6
million is largely unchanged from a loss of $6.7 million in the prior
year.
EARNINGS GUIDANCE
The Company is updating its earnings guidance for fiscal 2016 to a range
of $2.85 to $3.15 per share (exclusive of any ceiling test impairment
charges) at the midpoint a $0.15 per share decrease from the Company’s
previous guidance of $3.00 to $3.30. That decrease is attributable to a
reduction in Seneca’s commodity price assumptions. For fiscal 2016,
NYMEX natural gas prices are now assumed to average $2.75 per MMBtu,
down $0.50 from the previous forecast. NYMEX crude oil prices are now
assumed to average $50.00 per Bbl, down $5.00 from the previous forecast.
Seneca’s forecast oil and gas production for fiscal 2016 is now a range
of 161 to 232 Bcfe (previous range was 158 to 232 Bcfe).
While the Company currently expects one or more ceiling test impairment
charges in fiscal 2016, the amount of these charges is not reasonably
determinable at this time. The amount of any ceiling test charge is
determined at the end of the applicable quarter and will depend on many
factors, including additions to or subtractions from proved reserves,
fluctuations in oil and gas prices, and income tax effects related to
the differences between the book and tax basis of the Company’s oil and
gas properties. Some or all of these factors are likely to be
significant. Because the amount of the expected ceiling test impairment
charges is not reasonably determinable at this time, the Company is
unable to provide earnings guidance other than on a non-GAAP basis that
excludes those charges.
EARNINGS TELECONFERENCE
The Company will host a conference call on Friday, November 6, 2015, at
11 a.m. Eastern Time to discuss this announcement. There are two ways to
access this call. For those with Internet access, visit the investor
relations page at National Fuel’s website at investor.nationalfuelgas.com.
For those without Internet access, access is also provided by dialing
(toll-free) 1-877-280-4960, using passcode “33941524.” For those unable
to listen to the live conference call, a replay will be available at
approximately 3 p.m. Eastern Time at the same website link and by phone
at (toll-free) 1-888-286-8010, using passcode “17759908.” Both the
webcast and telephonic replay will be available until the close of
business on Friday, November 13, 2015.
National Fuel is an integrated energy company reporting financial
results for five operating segments: Exploration and Production,
Pipeline and Storage, Gathering, Utility, and Energy Marketing.
Additional information about National Fuel is available at www.nationalfuelgas.com.
Certain statements contained herein, including statements identified by
the use of the words “anticipates,” “estimates,” “expects,” “forecasts,”
“intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,”
“may” and similar expressions, and statements which are other than
statements of historical facts, are “forward-looking statements” as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks and uncertainties, which could
cause actual results or outcomes to differ materially from those
expressed in the forward-looking statements. The Company’s expectations,
beliefs and projections contained herein are expressed in good faith and
are believed to have a reasonable basis, but there can be no assurance
that such expectations, beliefs or projections will result or be
achieved or accomplished. In addition to other factors, the following
are important factors that could cause actual results to differ
materially from those discussed in the forward-looking statements:
factors affecting the Company’s ability to successfully identify, drill
for and produce economically viable natural gas and oil reserves,
including among others geology, lease availability, title disputes,
weather conditions, shortages, delays or unavailability of equipment and
services required in drilling operations, insufficient gathering,
processing and transportation capacity, the need to obtain governmental
approvals and permits, and compliance with environmental laws and
regulations; impairments under the SEC’s full cost ceiling test for
natural gas and oil reserves; changes in the price of natural gas or
oil; changes in laws, regulations or judicial interpretations to which
the Company is subject, including those involving derivatives, taxes,
safety, employment, climate change, other environmental matters, real
property, and exploration and production activities such as hydraulic
fracturing; governmental/regulatory actions, initiatives and
proceedings, including those involving rate cases (which address, among
other things, target rates of return, rate design and retained natural
gas), environmental/safety requirements, affiliate relationships,
industry structure, and franchise renewal; changes in price
differentials between similar quantities of natural gas or oil sold at
different geographic locations, and the effect of such changes on
commodity production, revenues and demand for pipeline transportation
capacity to or from such locations; other changes in price differentials
between similar quantities of natural gas or oil having different
quality, heating value, hydrocarbon mix or delivery date; financial and
economic conditions, including the availability of credit, and
occurrences affecting the Company’s ability to obtain financing on
acceptable terms for working capital, capital expenditures and other
investments, including any downgrades in the Company’s credit ratings
and changes in interest rates and other capital market conditions; the
cost and effects of legal and administrative claims against the Company
or activist shareholder campaigns to effect changes at the Company;
uncertainty of oil and gas reserve estimates; significant differences
between the Company’s projected and actual production levels for natural
gas or oil; delays or changes in costs or plans with respect to Company
projects or related projects of other companies, including difficulties
or delays in obtaining necessary governmental approvals, permits or
orders or in obtaining the cooperation of interconnecting facility
operators; changes in demographic patterns and weather conditions;
changes in the availability, price or accounting treatment of derivative
financial instruments; changes in economic conditions, including global,
national or regional recessions, and their effect on the demand for, and
customers’ ability to pay for, the Company’s products and services; the
creditworthiness or performance of the Company’s key suppliers,
customers and counterparties; economic disruptions or uninsured losses
resulting from major accidents, fires, severe weather, natural
disasters, terrorist activities, acts of war, cyber attacks or pest
infestation; significant differences between the Company’s projected and
actual capital expenditures and operating expenses; changes in laws,
actuarial assumptions, the interest rate environment and the return on
plan/trust assets related to the Company’s pension and other
post-retirement benefits, which can affect future funding obligations
and costs and plan liabilities; increasing health care costs and the
resulting effect on health insurance premiums and on the obligation to
provide other post-retirement benefits; or increasing costs of
insurance, changes in coverage and the ability to obtain insurance. The
Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date thereof.
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
|
|
QUARTER ENDED SEPTEMBER 30, 2015
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Upstream
|
|
|
|
Midstream
Businesses
|
|
|
|
Downstream
Businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration &
|
|
|
|
Pipeline &
|
|
|
|
|
|
|
|
|
|
|
|
Energy
|
|
|
|
Corporate /
|
|
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
Production
|
|
|
|
Storage
|
|
|
|
Gathering
|
|
|
|
Utility
|
|
|
|
Marketing
|
|
|
|
All Other
|
|
|
|
Consolidated*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2014 GAAP earnings
|
|
|
|
|
$
|
33,661
|
|
|
|
|
$
|
19,115
|
|
|
|
|
$
|
10,521
|
|
|
|
|
$
|
(527
|
)
|
|
|
|
$
|
661
|
|
|
|
|
$
|
(6,000
|
)
|
|
|
|
$
|
57,431
|
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred state income tax adjustment
|
|
|
|
|
(7,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,000
|
)
|
|
Fourth quarter 2014 operating results
|
|
|
|
|
26,661
|
|
|
|
|
19,115
|
|
|
|
|
10,521
|
|
|
|
|
(527
|
)
|
|
|
|
661
|
|
|
|
|
(6,000
|
)
|
|
|
|
50,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) crude oil prices
|
|
|
|
|
(13,808
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13,808
|
)
|
|
Higher (lower) natural gas prices
|
|
|
|
|
3,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,328
|
|
|
Higher (lower) natural gas production
|
|
|
|
|
(17,218
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17,218
|
)
|
|
Higher (lower) crude oil production
|
|
|
|
|
(230
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(230
|
)
|
|
Derivative mark to market adjustments
|
|
|
|
|
(1,929
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,929
|
)
|
|
Lower (higher) lease operating and transportation expenses
|
|
|
|
|
4,223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,223
|
|
|
Lower (higher) depreciation / depletion
|
|
|
|
|
22,589
|
|
|
|
|
|
|
|
|
(520
|
)
|
|
|
|
(348
|
)
|
|
|
|
|
|
|
|
|
|
|
|
21,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) transportation and storage service revenues
|
|
|
|
|
|
|
|
|
1,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,420
|
|
|
Higher (lower) gathering and processing revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,944
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,944
|
)
|
|
Lower (higher) operating expenses
|
|
|
|
|
(1,323
|
)
|
|
|
|
(3,352
|
)
|
|
|
|
|
|
|
|
(4,624
|
)
|
|
|
|
|
|
|
|
(251
|
)
|
|
|
|
(9,550
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory true-up adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,101
|
|
|
|
|
|
|
|
|
|
|
|
|
2,101
|
|
|
Warmer weather
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,006
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(1,006
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(487
|
)
|
|
|
|
|
|
|
|
(487
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) AFUDC**
|
|
|
|
|
|
|
|
|
1,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) interest expense
|
|
|
|
|
(2,335
|
)
|
|
|
|
(865
|
)
|
|
|
|
(590
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,790
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax expense / effective tax rate
|
|
|
|
|
(1,336
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,167
|
|
|
|
|
831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding
|
|
|
|
|
191
|
|
|
|
|
(80
|
)
|
|
|
|
127
|
|
|
|
|
21
|
|
|
|
|
(140
|
)
|
|
|
|
(350
|
)
|
|
|
|
(231
|
)
|
|
Fourth quarter 2015 operating results
|
|
|
|
|
18,813
|
|
|
|
|
17,250
|
|
|
|
|
7,594
|
|
|
|
|
(4,383
|
)
|
|
|
|
34
|
|
|
|
|
(4,434
|
)
|
|
|
|
34,874
|
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas producing properties
|
|
|
|
|
(240,837
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(240,837
|
)
|
|
Deferred income tax adjustments
|
|
|
|
|
13,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,206
|
|
|
Reversal of stock-based compensation
|
|
|
|
|
1,799
|
|
|
|
|
1,235
|
|
|
|
|
—
|
|
|
|
|
1,095
|
|
|
|
|
—
|
|
|
|
|
925
|
|
|
|
|
5,054
|
|
|
Fourth quarter 2015 GAAP earnings
|
|
|
|
|
$
|
(207,019
|
)
|
|
|
|
$
|
18,485
|
|
|
|
|
$
|
7,594
|
|
|
|
|
$
|
(3,288
|
)
|
|
|
|
$
|
34
|
|
|
|
|
$
|
(3,509
|
)
|
|
|
|
$
|
(187,703
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect intercompany eliminations
|
|
** AFUDC = Allowance for Funds Used During Construction
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
|
|
QUARTER ENDED SEPTEMBER 30, 2015
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
|
|
Midstream
Businesses
|
|
|
|
Downstream
Businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration &
|
|
|
|
Pipeline &
|
|
|
|
|
|
|
|
|
|
|
|
Energy
|
|
|
|
Corporate /
|
|
|
|
|
|
|
|
|
|
|
|
Production
|
|
|
|
Storage
|
|
|
|
Gathering
|
|
|
|
Utility
|
|
|
|
Marketing
|
|
|
|
All Other
|
|
|
|
Consolidated*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2014 GAAP earnings
|
|
|
|
|
|
$
|
0.40
|
|
|
|
|
$
|
0.22
|
|
|
|
|
$
|
0.12
|
|
|
|
|
$
|
(0.01
|
)
|
|
|
|
$
|
0.01
|
|
|
|
|
$
|
(0.06
|
)
|
|
|
|
$
|
0.68
|
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred state income tax adjustment
|
|
|
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.08
|
)
|
|
Rounding
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
Fourth quarter 2014 operating results
|
|
|
|
|
|
0.31
|
|
|
|
|
0.22
|
|
|
|
|
0.12
|
|
|
|
|
(0.01
|
)
|
|
|
|
0.01
|
|
|
|
|
(0.06
|
)
|
|
|
|
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) crude oil prices
|
|
|
|
|
|
(0.16
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.16
|
)
|
|
Higher (lower) natural gas prices
|
|
|
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.04
|
|
|
Higher (lower) natural gas production
|
|
|
|
|
|
(0.20
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.20
|
)
|
|
Higher (lower) crude oil production
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Derivative mark to market adjustments
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
Lower (higher) lease operating and transportation expenses
|
|
|
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.05
|
|
|
Lower (higher) depreciation / depletion
|
|
|
|
|
|
0.27
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) transportation and storage service revenues
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
Higher (lower) gathering and processing revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
Lower (higher) operating expenses
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
|
—
|
|
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory true-up adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
Warmer weather
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) AFUDC**
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) interest expense
|
|
|
|
|
|
(0.03
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax expense / effective tax rate
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
0.01
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(0.02
|
)
|
|
|
|
(0.01
|
)
|
|
Fourth quarter 2015 operating results
|
|
|
|
|
|
0.22
|
|
|
|
|
0.20
|
|
|
|
|
0.09
|
|
|
|
|
(0.05
|
)
|
|
|
|
—
|
|
|
|
|
(0.05
|
)
|
|
|
|
0.41
|
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas producing properties
|
|
|
|
|
|
(2.83
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2.83
|
)
|
|
Deferred income tax adjustments
|
|
|
|
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.15
|
|
|
Reversal of stock-based compensation
|
|
|
|
|
|
0.02
|
|
|
|
|
0.02
|
|
|
|
|
—
|
|
|
|
|
0.01
|
|
|
|
|
—
|
|
|
|
|
0.01
|
|
|
|
|
0.06
|
|
|
Earnings per share impact of diluted shares
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.01
|
)
|
|
Fourth quarter 2015 GAAP earnings
|
|
|
|
|
|
$
|
(2.45
|
)
|
|
|
|
$
|
0.22
|
|
|
|
|
$
|
0.09
|
|
|
|
|
$
|
(0.04
|
)
|
|
|
|
$
|
—
|
|
|
|
|
$
|
(0.04
|
)
|
|
|
|
$
|
(2.22
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect intercompany eliminations
|
|
** AFUDC = Allowance for Funds Used During Construction
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
|
|
TWELVE MONTHS ENDED SEPTEMBER 30, 2015
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Upstream
|
|
|
|
Midstream
Businesses
|
|
|
|
Downstream
Businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration &
|
|
|
|
Pipeline &
|
|
|
|
|
|
|
|
|
|
|
|
Energy
|
|
|
|
Corporate /
|
|
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
Production
|
|
|
|
Storage
|
|
|
|
Gathering
|
|
|
|
Utility
|
|
|
|
Marketing
|
|
|
|
All Other
|
|
|
|
Consolidated*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2014 GAAP earnings
|
|
|
|
|
$
|
121,569
|
|
|
|
|
$
|
77,559
|
|
|
|
|
$
|
32,709
|
|
|
|
|
$
|
64,059
|
|
|
|
|
$
|
6,631
|
|
|
|
|
$
|
(3,114
|
)
|
|
|
|
$
|
299,413
|
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on life insurance proceeds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,635
|
)
|
|
|
|
(3,635
|
)
|
|
Deferred state income tax adjustment
|
|
|
|
|
(4,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,000
|
)
|
|
Fiscal 2014 operating results
|
|
|
|
|
117,569
|
|
|
|
|
77,559
|
|
|
|
|
32,709
|
|
|
|
|
64,059
|
|
|
|
|
6,631
|
|
|
|
|
(6,749
|
)
|
|
|
|
291,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) crude oil prices
|
|
|
|
|
(49,674
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(49,674
|
)
|
|
Higher (lower) natural gas prices
|
|
|
|
|
(16,295
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(16,295
|
)
|
|
Higher (lower) natural gas production
|
|
|
|
|
(6,347
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,347
|
)
|
|
Higher (lower) crude oil production
|
|
|
|
|
(78
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(78
|
)
|
|
Derivative mark to market adjustments
|
|
|
|
|
2,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,404
|
|
|
Insurance settlement proceeds adjustment
|
|
|
|
|
(1,261
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,261
|
)
|
|
Lower (higher) lease operating and transportation expenses
|
|
|
|
|
(1,473
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,473
|
)
|
|
Lower (higher) depreciation / depletion
|
|
|
|
|
36,655
|
|
|
|
|
(998
|
)
|
|
|
|
(3,063
|
)
|
|
|
|
(1,316
|
)
|
|
|
|
|
|
|
|
|
|
|
|
31,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) transportation and storage service revenues
|
|
|
|
|
|
|
|
|
5,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,114
|
|
|
Higher (lower) gathering and processing revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
4,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,288
|
|
|
Lower (higher) operating expenses
|
|
|
|
|
(3,159
|
)
|
|
|
|
(3,261
|
)
|
|
|
|
(1,147
|
)
|
|
|
|
(6,938
|
)
|
|
|
|
|
|
|
|
145
|
|
|
|
|
(14,360
|
)
|
|
Lower (higher) property, franchise and other taxes
|
|
|
|
|
|
|
|
|
(852
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(852
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory true-up adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,228
|
|
|
|
|
|
|
|
|
|
|
|
|
6,228
|
|
|
Higher (lower) capacity release revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
941
|
|
|
|
|
|
|
|
|
|
|
|
|
941
|
|
|
Warmer weather
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(571
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(571
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,372
|
|
|
|
|
(767
|
)
|
|
|
|
605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) AFUDC**
|
|
|
|
|
|
|
|
|
2,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) interest expense
|
|
|
|
|
(2,922
|
)
|
|
|
|
(800
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,722
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax expense / effective tax rate
|
|
|
|
|
2,628
|
|
|
|
|
|
|
|
|
(1,006
|
)
|
|
|
|
|
|
|
|
|
|
|
|
1,197
|
|
|
|
|
2,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding
|
|
|
|
|
134
|
|
|
|
|
(116
|
)
|
|
|
|
68
|
|
|
|
|
(227
|
)
|
|
|
|
(237
|
)
|
|
|
|
(444
|
)
|
|
|
|
(822
|
)
|
|
Fiscal 2015 operating results
|
|
|
|
|
78,181
|
|
|
|
|
79,119
|
|
|
|
|
31,849
|
|
|
|
|
62,176
|
|
|
|
|
7,766
|
|
|
|
|
(6,618
|
)
|
|
|
|
252,473
|
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas producing properties
|
|
|
|
|
(650,160
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(650,160
|
)
|
|
Deferred income tax adjustments
|
|
|
|
|
13,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,206
|
|
|
Reversal of stock-based compensation
|
|
|
|
|
1,799
|
|
|
|
|
1,235
|
|
|
|
|
—
|
|
|
|
|
1,095
|
|
|
|
|
—
|
|
|
|
|
925
|
|
|
|
|
5,054
|
|
|
Fiscal 2015 GAAP earnings
|
|
|
|
|
$
|
(556,974
|
)
|
|
|
|
$
|
80,354
|
|
|
|
|
$
|
31,849
|
|
|
|
|
$
|
63,271
|
|
|
|
|
$
|
7,766
|
|
|
|
|
$
|
(5,693
|
)
|
|
|
|
$
|
(379,427
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts do not reflect intercompany eliminations
|
|
** AFUDC = Allowance for Funds Used During Construction
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
|
|
TWELVE MONTHS ENDED SEPTEMBER 30, 2015
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
|
|
Midstream
Businesses
|
|
|
|
Downstream
Businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration &
|
|
|
|
Pipeline &
|
|
|
|
|
|
|
|
|
|
|
|
Energy
|
|
|
|
Corporate /
|
|
|
|
|
|
|
|
|
|
|
|
Production
|
|
|
|
Storage
|
|
|
|
Gathering
|
|
|
|
Utility
|
|
|
|
Marketing
|
|
|
|
All Other
|
|
|
|
Consolidated*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2014 GAAP earnings
|
|
|
|
|
|
$
|
1.43
|
|
|
|
|
$
|
0.91
|
|
|
|
|
$
|
0.39
|
|
|
|
|
$
|
0.75
|
|
|
|
|
$
|
0.08
|
|
|
|
|
$
|
(0.04
|
)
|
|
|
|
$
|
3.52
|
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on life insurance proceeds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
(0.04
|
)
|
|
Deferred state income tax adjustment
|
|
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.05
|
)
|
|
Fiscal 2014 operating results
|
|
|
|
|
|
1.38
|
|
|
|
|
0.91
|
|
|
|
|
0.39
|
|
|
|
|
0.75
|
|
|
|
|
0.08
|
|
|
|
|
(0.08
|
)
|
|
|
|
3.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drivers of operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) crude oil prices
|
|
|
|
|
|
(0.58
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.58
|
)
|
|
Higher (lower) natural gas prices
|
|
|
|
|
|
(0.19
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.19
|
)
|
|
Higher (lower) natural gas production
|
|
|
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.07
|
)
|
|
Higher (lower) crude oil production
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Derivative mark to market adjustments
|
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03
|
|
|
Insurance settlement proceeds adjustment
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) lease operating and transportation expenses
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
Lower (higher) depreciation / depletion
|
|
|
|
|
|
0.43
|
|
|
|
|
(0.01
|
)
|
|
|
|
(0.04
|
)
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) transportation and storage service revenues
|
|
|
|
|
|
|
|
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.06
|
|
|
Higher (lower) gathering and processing revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.05
|
|
|
Lower (higher) operating expenses
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
(0.04
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
|
—
|
|
|
|
|
(0.17
|
)
|
|
Lower (higher) property, franchise and other taxes
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory true-up adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
0.07
|
|
|
Higher (lower) capacity release revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
Warmer weather
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
(0.01
|
)
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher (lower) AFUDC**
|
|
|
|
|
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) interest expense
|
|
|
|
|
|
(0.03
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower (higher) income tax expense / effective tax rate
|
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All other / rounding
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
0.01
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Fiscal 2015 operating results
|
|
|
|
|
|
0.92
|
|
|
|
|
0.93
|
|
|
|
|
0.38
|
|
|
|
|
0.73
|
|
|
|
|
0.09
|
|
|
|
|
(0.08
|
)
|
|
|
|
2.97
|
|
|
Items impacting comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas producing properties
|
|
|
|
|
|
(7.64
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7.64
|
)
|
|
Deferred income tax adjustments
|
|
|
|
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.15
|
|
|
Reversal of stock-based compensation
|
|
|
|
|
|
0.02
|
|
|
|
|
0.02
|
|
|
|
|
—
|
|
|
|
|
0.01
|
|
|
|
|
—
|
|
|
|
|
0.01
|
|
|
|
|
0.06
|
|
|
Earnings per share impact of diluted shares
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.04
|
)
|
|
Rounding
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Fiscal 2015 GAAP earnings
|
|
|
|
|
|
$
|
(6.60
|
)
|
|
|
|
$
|
0.95
|
|
|
|
|
$
|
0.38
|
|
|
|
|
$
|
0.75
|
|
|
|
|
$
|
0.09
|
|
|
|
|
$
|
(0.07
|
)
|
|
|
|
$
|
(4.50
|
)
|
|
|
|
* Amounts do not reflect intercompany eliminations
|
|
** AFUDC = Allowance for Funds Used During Construction
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
SUMMARY OF OPERATIONS
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
Operating Revenues
|
|
|
|
|
$
|
301,062
|
|
|
|
|
$
|
366,623
|
|
|
|
|
$
|
1,760,913
|
|
|
|
|
$
|
2,113,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
|
|
5,256
|
|
|
|
|
28,833
|
|
|
|
|
349,984
|
|
|
|
|
605,838
|
|
|
Operation and Maintenance
|
|
|
|
|
113,478
|
|
|
|
|
110,284
|
|
|
|
|
470,003
|
|
|
|
|
463,078
|
|
|
Property, Franchise and Other Taxes
|
|
|
|
|
21,002
|
|
|
|
|
21,597
|
|
|
|
|
89,564
|
|
|
|
|
90,711
|
|
|
Depreciation, Depletion and Amortization
|
|
|
|
|
70,860
|
|
|
|
|
103,905
|
|
|
|
|
336,158
|
|
|
|
|
383,781
|
|
|
Impairment of Oil and Gas Producing Properties
|
|
|
|
|
417,197
|
|
|
|
|
—
|
|
|
|
|
1,126,257
|
|
|
|
|
—
|
|
|
|
|
|
|
|
627,793
|
|
|
|
|
264,619
|
|
|
|
|
2,371,966
|
|
|
|
|
1,543,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
|
|
(326,731
|
)
|
|
|
|
102,004
|
|
|
|
|
(611,053
|
)
|
|
|
|
569,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
2,291
|
|
|
|
|
2,849
|
|
|
|
|
3,922
|
|
|
|
|
4,170
|
|
|
Other Income
|
|
|
|
|
3,401
|
|
|
|
|
2,615
|
|
|
|
|
8,039
|
|
|
|
|
9,461
|
|
|
Interest Expense on Long-Term Debt
|
|
|
|
|
(29,016
|
)
|
|
|
|
(22,427
|
)
|
|
|
|
(95,916
|
)
|
|
|
|
(90,194
|
)
|
|
Other Interest Expense
|
|
|
|
|
(173
|
)
|
|
|
|
(623
|
)
|
|
|
|
(3,555
|
)
|
|
|
|
(4,083
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
|
|
(350,228
|
)
|
|
|
|
84,418
|
|
|
|
|
(698,563
|
)
|
|
|
|
489,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
|
|
|
(162,525
|
)
|
|
|
|
26,987
|
|
|
|
|
(319,136
|
)
|
|
|
|
189,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Available for Common Stock
|
|
|
|
|
$
|
(187,703
|
)
|
|
|
|
$
|
57,431
|
|
|
|
|
$
|
(379,427
|
)
|
|
|
|
$
|
299,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
(2.22
|
)
|
|
|
|
$
|
0.68
|
|
|
|
|
$
|
(4.50
|
)
|
|
|
|
$
|
3.57
|
|
|
Diluted
|
|
|
|
|
$
|
(2.22
|
)
|
|
|
|
$
|
0.68
|
|
|
|
|
$
|
(4.50
|
)
|
|
|
|
$
|
3.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Used in Basic Calculation
|
|
|
|
|
84,570,432
|
|
|
|
84,126,542
|
|
|
|
84,387,755
|
|
|
|
83,929,989
|
|
Used in Diluted Calculation
|
|
|
|
|
84,570,432
|
|
|
|
85,062,410
|
|
|
|
84,387,755
|
|
|
|
84,952,347
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
(Thousands of Dollars)
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Property, Plant and Equipment
|
|
|
|
|
$
|
9,261,323
|
|
|
|
|
$
|
8,245,791
|
|
|
Less - Accumulated Depreciation, Depletion and Amortization
|
|
|
|
|
|
3,929,428
|
|
|
|
|
|
2,502,700
|
|
|
Net Property, Plant and Equipment
|
|
|
|
|
|
5,331,895
|
|
|
|
|
|
5,743,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and Temporary Cash Investments
|
|
|
|
|
|
113,596
|
|
|
|
|
|
36,886
|
|
|
Hedging Collateral Deposits
|
|
|
|
|
|
11,124
|
|
|
|
|
|
2,734
|
|
|
Receivables - Net
|
|
|
|
|
|
105,004
|
|
|
|
|
|
149,735
|
|
|
Unbilled Revenue
|
|
|
|
|
|
20,746
|
|
|
|
|
|
25,663
|
|
|
Gas Stored Underground
|
|
|
|
|
|
34,252
|
|
|
|
|
|
39,422
|
|
|
Materials and Supplies - at average cost
|
|
|
|
|
|
30,414
|
|
|
|
|
|
27,817
|
|
|
Other Current Assets
|
|
|
|
|
|
60,665
|
|
|
|
|
|
54,752
|
|
|
Deferred Income Taxes
|
|
|
|
|
|
137,200
|
|
|
|
|
|
40,323
|
|
|
Total Current Assets
|
|
|
|
|
|
513,001
|
|
|
|
|
|
377,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
Recoverable Future Taxes
|
|
|
|
|
|
168,214
|
|
|
|
|
|
163,485
|
|
|
Unamortized Debt Expense
|
|
|
|
|
|
17,208
|
|
|
|
|
|
14,304
|
|
|
Other Regulatory Assets
|
|
|
|
|
|
278,227
|
|
|
|
|
|
224,436
|
|
|
Deferred Charges
|
|
|
|
|
|
15,129
|
|
|
|
|
|
14,212
|
|
|
Other Investments
|
|
|
|
|
|
92,990
|
|
|
|
|
|
86,788
|
|
|
Goodwill
|
|
|
|
|
|
5,476
|
|
|
|
|
|
5,476
|
|
|
Prepaid Post-Retirement Benefit Costs
|
|
|
|
|
|
24,459
|
|
|
|
|
|
36,512
|
|
|
Fair Value of Derivative Financial Instruments
|
|
|
|
|
|
270,363
|
|
|
|
|
|
72,606
|
|
|
Other
|
|
|
|
|
|
168
|
|
|
|
|
|
1,355
|
|
|
Total Other Assets
|
|
|
|
|
|
872,234
|
|
|
|
|
|
619,174
|
|
|
Total Assets
|
|
|
|
|
$
|
6,717,130
|
|
|
|
|
$
|
6,739,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION AND LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Capitalization:
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Common Stock, $1 Par Value Authorized - 200,000,000
|
|
|
|
|
|
|
|
|
|
|
Shares; Issued and Outstanding - 84,594,383 Shares
|
|
|
|
|
|
|
|
|
|
|
and 84,157,220 Shares, Respectively
|
|
|
|
|
$
|
84,594
|
|
|
|
|
$
|
84,157
|
|
|
Paid in Capital
|
|
|
|
|
|
744,274
|
|
|
|
|
|
716,144
|
|
|
Earnings Reinvested in the Business
|
|
|
|
|
|
1,103,200
|
|
|
|
|
|
1,614,361
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
93,372
|
|
|
|
|
|
(3,979
|
)
|
|
Total Comprehensive Shareholders' Equity
|
|
|
|
|
|
2,025,440
|
|
|
|
|
|
2,410,683
|
|
|
Long-Term Debt, Net of Current Portion
|
|
|
|
|
|
2,099,000
|
|
|
|
|
|
1,649,000
|
|
|
Total Capitalization
|
|
|
|
|
|
4,124,440
|
|
|
|
|
|
4,059,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current and Accrued Liabilities:
|
|
|
|
|
|
|
|
|
|
|
Notes Payable to Banks and Commercial Paper
|
|
|
|
|
|
—
|
|
|
|
|
|
85,600
|
|
|
Current Portion of Long-Term Debt
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
Accounts Payable
|
|
|
|
|
|
180,388
|
|
|
|
|
|
136,674
|
|
|
Amounts Payable to Customers
|
|
|
|
|
|
56,778
|
|
|
|
|
|
33,745
|
|
|
Dividends Payable
|
|
|
|
|
|
33,415
|
|
|
|
|
|
32,400
|
|
|
Interest Payable on Long-Term Debt
|
|
|
|
|
|
36,200
|
|
|
|
|
|
29,960
|
|
|
Customer Advances
|
|
|
|
|
|
16,236
|
|
|
|
|
|
19,005
|
|
|
Customer Security Deposits
|
|
|
|
|
|
16,490
|
|
|
|
|
|
15,761
|
|
|
Other Accruals and Current Liabilities
|
|
|
|
|
|
96,557
|
|
|
|
|
|
136,672
|
|
|
Fair Value of Derivative Financial Instruments
|
|
|
|
|
|
10,076
|
|
|
|
|
|
759
|
|
|
Total Current and Accrued Liabilities
|
|
|
|
|
|
446,140
|
|
|
|
|
|
490,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Credits:
|
|
|
|
|
|
|
|
|
|
|
Deferred Income Taxes
|
|
|
|
|
|
1,275,162
|
|
|
|
|
|
1,456,283
|
|
|
Taxes Refundable to Customers
|
|
|
|
|
|
89,448
|
|
|
|
|
|
91,736
|
|
|
Unamortized Investment Tax Credit
|
|
|
|
|
|
731
|
|
|
|
|
|
1,145
|
|
|
Cost of Removal Regulatory Liability
|
|
|
|
|
|
184,907
|
|
|
|
|
|
173,199
|
|
|
Other Regulatory Liabilities
|
|
|
|
|
|
108,617
|
|
|
|
|
|
81,152
|
|
|
Pension and Other Post-Retirement Liabilities
|
|
|
|
|
|
202,807
|
|
|
|
|
|
134,202
|
|
|
Asset Retirement Obligations
|
|
|
|
|
|
156,805
|
|
|
|
|
|
117,713
|
|
|
Other Deferred Credits
|
|
|
|
|
|
128,073
|
|
|
|
|
|
133,908
|
|
|
Total Deferred Credits
|
|
|
|
|
|
2,146,550
|
|
|
|
|
|
2,189,338
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
Total Capitalization and Liabilities
|
|
|
|
|
$
|
6,717,130
|
|
|
|
|
$
|
6,739,597
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
September 30,
|
|
(Thousands of Dollars)
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Available for Common Stock
|
|
|
|
|
|
$
|
(379,427
|
)
|
|
|
|
$
|
299,413
|
|
|
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of Oil and Gas Producing Properties
|
|
|
|
|
|
1,126,257
|
|
|
|
|
—
|
|
|
Depreciation, Depletion and Amortization
|
|
|
|
|
|
336,158
|
|
|
|
|
383,781
|
|
|
Deferred Income Taxes
|
|
|
|
|
|
(357,587
|
)
|
|
|
|
142,415
|
|
|
Excess Tax Benefits Associated with Stock-Based Compensation Awards
|
|
|
|
|
|
(9,064
|
)
|
|
|
|
(4,641
|
)
|
|
Stock-Based Compensation
|
|
|
|
|
|
3,208
|
|
|
|
|
11,763
|
|
|
Other
|
|
|
|
|
|
9,823
|
|
|
|
|
14,063
|
|
|
Change in:
|
|
|
|
|
|
|
|
|
|
|
|
Hedging Collateral Deposits
|
|
|
|
|
|
(8,390
|
)
|
|
|
|
(1,640
|
)
|
|
Receivables and Unbilled Revenue
|
|
|
|
|
|
51,638
|
|
|
|
|
(22,781
|
)
|
|
Gas Stored Underground and Materials and Supplies
|
|
|
|
|
|
3,438
|
|
|
|
|
13,285
|
|
|
Unrecovered Purchased Gas Costs
|
|
|
|
|
|
—
|
|
|
|
|
12,408
|
|
|
Other Current Assets
|
|
|
|
|
|
3,150
|
|
|
|
|
(3,630
|
)
|
|
Accounts Payable
|
|
|
|
|
|
34,687
|
|
|
|
|
15,149
|
|
|
Amounts Payable to Customers
|
|
|
|
|
|
23,033
|
|
|
|
|
20,917
|
|
|
Customer Advances
|
|
|
|
|
|
(2,769
|
)
|
|
|
|
(2,954
|
)
|
|
Customer Security Deposits
|
|
|
|
|
|
729
|
|
|
|
|
(422
|
)
|
|
Other Accruals and Current Liabilities
|
|
|
|
|
|
(7,173
|
)
|
|
|
|
6,872
|
|
|
Other Assets
|
|
|
|
|
|
1,669
|
|
|
|
|
18,513
|
|
|
Other Liabilities
|
|
|
|
|
|
23,173
|
|
|
|
|
6,879
|
|
|
Net Cash Provided by Operating Activities
|
|
|
|
|
|
$
|
852,553
|
|
|
|
|
$
|
909,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
|
|
|
|
$
|
(1,018,179
|
)
|
|
|
|
$
|
(914,417
|
)
|
|
Other
|
|
|
|
|
|
(6,611
|
)
|
|
|
|
5,982
|
|
|
Net Cash Used in Investing Activities
|
|
|
|
|
|
$
|
(1,024,790
|
)
|
|
|
|
$
|
(908,435
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Changes in Notes Payable to Banks and Commercial Paper
|
|
|
|
|
|
$
|
(85,600
|
)
|
|
|
|
$
|
85,600
|
|
|
Excess Tax Benefits Associated with Stock-Based Compensation Awards
|
|
|
|
|
|
9,064
|
|
|
|
|
4,641
|
|
|
Net Proceeds From Issuance of Long-Term Debt
|
|
|
|
|
|
445,662
|
|
|
|
|
—
|
|
|
Dividends Paid on Common Stock
|
|
|
|
|
|
(130,719
|
)
|
|
|
|
(126,642
|
)
|
|
Net Proceeds From Issuance of Common Stock
|
|
|
|
|
|
10,540
|
|
|
|
|
7,474
|
|
|
Net Cash Provided by (Used) in Financing Activities
|
|
|
|
|
|
$
|
248,947
|
|
|
|
|
$
|
(28,927
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Cash and Temporary Cash Investments
|
|
|
|
|
|
76,710
|
|
|
|
|
(27,972
|
)
|
|
Cash and Temporary Cash Investments at Beginning of Period
|
|
|
|
|
|
36,886
|
|
|
|
|
64,858
|
|
|
Cash and Temporary Cash Investments at September 30
|
|
|
|
|
|
$
|
113,596
|
|
|
|
|
$
|
36,886
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS
|
|
(UNAUDITED)
|
|
|
|
UPSTREAM BUSINESS
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
EXPLORATION AND PRODUCTION SEGMENT
|
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
Total Operating Revenues
|
|
|
|
|
$
|
163,851
|
|
|
|
$
|
209,967
|
|
|
|
$
|
(46,116
|
)
|
|
|
|
$
|
693,441
|
|
|
|
$
|
804,096
|
|
|
|
$
|
(110,655
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and Administrative Expense
|
|
|
|
|
15,321
|
|
|
|
15,783
|
|
|
|
(462
|
)
|
|
|
|
66,114
|
|
|
|
63,804
|
|
|
|
2,310
|
|
|
Lease Operating and Transportation Expense
|
|
|
|
|
40,186
|
|
|
|
46,684
|
|
|
|
(6,498
|
)
|
|
|
|
167,800
|
|
|
|
165,534
|
|
|
|
2,266
|
|
|
All Other Operation and Maintenance Expense
|
|
|
|
|
3,189
|
|
|
|
3,459
|
|
|
|
(270
|
)
|
|
|
|
14,304
|
|
|
|
14,521
|
|
|
|
(217
|
)
|
|
Property, Franchise and Other Taxes
|
|
|
|
|
4,806
|
|
|
|
5,223
|
|
|
|
(417
|
)
|
|
|
|
20,167
|
|
|
|
20,765
|
|
|
|
(598
|
)
|
|
Depreciation, Depletion and Amortization
|
|
|
|
|
46,277
|
|
|
|
81,031
|
|
|
|
(34,754
|
)
|
|
|
|
239,818
|
|
|
|
296,210
|
|
|
|
(56,392
|
)
|
|
Impairment of Oil and Gas Producing Properties
|
|
|
|
|
417,197
|
|
|
|
—
|
|
|
|
417,197
|
|
|
|
|
1,126,257
|
|
|
|
—
|
|
|
|
1,126,257
|
|
|
|
|
|
|
|
526,976
|
|
|
|
152,180
|
|
|
|
374,796
|
|
|
|
|
1,634,460
|
|
|
|
560,834
|
|
|
|
1,073,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
|
|
(363,125
|
)
|
|
|
57,787
|
|
|
(420,912
|
)
|
|
|
|
(941,019
|
)
|
|
|
243,262
|
|
|
(1,184,281
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
661
|
|
|
|
604
|
|
|
|
57
|
|
|
|
|
2,554
|
|
|
|
1,909
|
|
|
|
645
|
|
|
Other Interest Expense
|
|
|
|
|
(14,176
|
)
|
|
|
(10,584
|
)
|
|
|
(3,592)
|
|
|
|
(46,726
|
)
|
|
|
(42,232
|
)
|
|
|
(4,494
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
|
|
(376,640
|
)
|
|
|
47,807
|
|
|
|
(424,447
|
)
|
|
|
|
(985,191
|
)
|
|
|
202,939
|
|
|
|
(1,188,130
|
)
|
|
Income Tax Expense (Benefit)
|
|
|
|
|
(169,621
|
)
|
|
|
14,146
|
|
|
|
(183,767
|
)
|
|
|
|
(428,217
|
)
|
|
|
81,370
|
|
|
|
(509,587
|
)
|
|
Net Income (Loss)
|
|
|
|
|
$
|
(207,019
|
)
|
|
|
$
|
33,661
|
|
|
|
$
|
(240,680
|
)
|
|
|
|
$
|
(556,974
|
)
|
|
|
$
|
121,569
|
|
|
|
$
|
(678,543
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Share (Diluted)
|
|
|
|
|
$
|
(2.45
|
)
|
|
|
$
|
0.40
|
|
|
|
$
|
(2.85
|
)
|
|
|
|
$
|
(6.60
|
)
|
|
|
$
|
1.43
|
|
|
|
$
|
(8.03
|
)
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS
|
|
(UNAUDITED)
|
|
|
|
MIDSTREAM BUSINESSES
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
PIPELINE AND STORAGE SEGMENT
|
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
Revenues from External Customers
|
|
|
|
|
$
|
48,573
|
|
|
|
$
|
47,835
|
|
|
|
$
|
738
|
|
|
|
|
$
|
203,089
|
|
|
|
$
|
200,664
|
|
|
|
$
|
2,425
|
|
|
Intersegment Revenues
|
|
|
|
|
21,903
|
|
|
|
20,280
|
|
|
|
1,623
|
|
|
|
|
88,251
|
|
|
|
83,744
|
|
|
|
4,507
|
|
|
Total Operating Revenues
|
|
|
|
|
70,476
|
|
|
|
68,115
|
|
|
|
2,361
|
|
|
|
|
291,340
|
|
|
|
284,408
|
|
|
|
6,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
|
|
(32
|
)
|
|
|
596
|
|
|
|
(628
|
)
|
|
|
|
462
|
|
|
|
1,878
|
|
|
|
(1,416
|
)
|
|
Operation and Maintenance
|
|
|
|
|
21,971
|
|
|
|
18,714
|
|
|
|
3,257
|
|
|
|
|
75,741
|
|
|
|
72,624
|
|
|
|
3,117
|
|
|
Property, Franchise and Other Taxes
|
|
|
|
|
6,340
|
|
|
|
6,232
|
|
|
|
108
|
|
|
|
|
25,195
|
|
|
|
23,884
|
|
|
|
1,311
|
|
|
Depreciation, Depletion and Amortization
|
|
|
|
|
9,726
|
|
|
|
9,469
|
|
|
|
257
|
|
|
|
|
38,178
|
|
|
|
36,642
|
|
|
|
1,536
|
|
|
|
|
|
|
|
38,005
|
|
|
|
35,011
|
|
|
|
2,994
|
|
|
|
|
139,576
|
|
|
|
135,028
|
|
|
|
4,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
32,471
|
|
|
|
33,104
|
|
|
|
(633
|
)
|
|
|
|
151,764
|
|
|
|
149,380
|
|
|
|
2,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
124
|
|
|
|
96
|
|
|
|
28
|
|
|
|
|
474
|
|
|
|
284
|
|
|
|
190
|
|
|
Other Income
|
|
|
|
|
1,999
|
|
|
|
988
|
|
|
|
1,011
|
|
|
|
|
3,887
|
|
|
|
1,423
|
|
|
|
2,464
|
|
|
Other Interest Expense
|
|
|
|
|
(7,745
|
)
|
|
|
(6,414
|
)
|
|
|
(1,331
|
)
|
|
|
|
(27,658
|
)
|
|
|
(26,428
|
)
|
|
|
(1,230
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
|
|
|
|
26,849
|
|
|
|
27,774
|
|
|
|
(925
|
)
|
|
|
|
128,467
|
|
|
|
124,659
|
|
|
|
3,808
|
|
|
Income Tax Expense
|
|
|
|
|
8,364
|
|
|
|
8,659
|
|
|
|
(295
|
)
|
|
|
|
48,113
|
|
|
|
47,100
|
|
|
|
1,013
|
|
|
Net Income
|
|
|
|
|
$
|
18,485
|
|
|
|
$
|
19,115
|
|
|
|
$
|
(630
|
)
|
|
|
|
$
|
80,354
|
|
|
|
$
|
77,559
|
|
|
|
$
|
2,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share (Diluted)
|
|
|
|
|
$
|
0.22
|
|
|
|
$
|
0.22
|
|
|
|
$
|
—
|
|
|
|
|
$
|
0.95
|
|
|
|
$
|
0.91
|
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
GATHERING SEGMENT
|
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
Revenues from External Customers
|
|
|
|
|
$
|
136
|
|
|
|
$
|
(100
|
)
|
|
|
$
|
236
|
|
|
|
|
$
|
497
|
|
|
|
$
|
673
|
|
|
|
$
|
(176
|
)
|
|
Intersegment Revenues
|
|
|
|
|
18,169
|
|
|
|
21,396
|
|
|
|
(3,227
|
)
|
|
|
|
76,709
|
|
|
|
69,937
|
|
|
|
6,772
|
|
|
Total Operating Revenues
|
|
|
|
|
18,305
|
|
|
|
21,296
|
|
|
|
(2,991
|
)
|
|
|
|
77,206
|
|
|
|
70,610
|
|
|
|
6,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance
|
|
|
|
|
1,831
|
|
|
|
1,784
|
|
|
|
47
|
|
|
|
|
8,147
|
|
|
|
6,383
|
|
|
|
1,764
|
|
|
Property, Franchise and Other Taxes
|
|
|
|
|
48
|
|
|
|
43
|
|
|
|
5
|
|
|
|
|
178
|
|
|
|
167
|
|
|
|
11
|
|
|
Depreciation, Depletion and Amortization
|
|
|
|
|
2,804
|
|
|
|
2,004
|
|
|
|
800
|
|
|
|
|
10,829
|
|
|
|
6,116
|
|
|
|
4,713
|
|
|
|
|
|
|
|
4,683
|
|
|
|
3,831
|
|
|
|
852
|
|
|
|
|
19,154
|
|
|
|
12,666
|
|
|
|
6,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
13,622
|
|
|
|
17,465
|
|
|
|
(3,843
|
)
|
|
|
|
58,052
|
|
|
|
57,944
|
|
|
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
46
|
|
|
|
34
|
|
|
|
12
|
|
|
|
|
140
|
|
|
|
120
|
|
|
|
20
|
|
|
Other Income
|
|
|
|
|
1
|
|
|
|
2
|
|
|
|
(1
|
)
|
|
|
|
5
|
|
|
|
7
|
|
|
|
(2
|
)
|
|
Other Interest Expense
|
|
|
|
|
(1,413
|
)
|
|
|
(506
|
)
|
|
|
(907
|
)
|
|
|
|
(1,627
|
)
|
|
|
(1,726
|
)
|
|
|
99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
|
|
|
|
12,256
|
|
|
|
16,995
|
|
|
|
(4,739
|
)
|
|
|
|
56,570
|
|
|
|
56,345
|
|
|
|
225
|
|
|
Income Tax Expense
|
|
|
|
|
4,662
|
|
|
|
6,474
|
|
|
|
(1,812
|
)
|
|
|
|
24,721
|
|
|
|
23,636
|
|
|
|
1,085
|
|
|
Net Income
|
|
|
|
|
$
|
7,594
|
|
|
|
$
|
10,521
|
|
|
|
$
|
(2,927
|
)
|
|
|
|
$
|
31,849
|
|
|
|
$
|
32,709
|
|
|
|
$
|
(860
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share (Diluted)
|
|
|
|
|
$
|
0.09
|
|
|
|
$
|
0.12
|
|
|
|
$
|
(0.03
|
)
|
|
|
|
$
|
0.38
|
|
|
|
$
|
0.39
|
|
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS
|
|
(UNAUDITED)
|
|
|
|
DOWNSTREAM BUSINESSES
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
UTILITY SEGMENT
|
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
Revenues from External Customers
|
|
|
|
|
$
|
70,712
|
|
|
|
$
|
79,295
|
|
|
|
$
|
(8,583
|
)
|
|
|
|
$
|
700,761
|
|
|
|
$
|
831,156
|
|
|
|
$
|
(130,395
|
)
|
|
Intersegment Revenues
|
|
|
|
|
1,836
|
|
|
|
1,897
|
|
|
|
(61
|
)
|
|
|
|
15,506
|
|
|
|
18,462
|
|
|
|
(2,956
|
)
|
|
Total Operating Revenues
|
|
|
|
|
72,548
|
|
|
|
81,192
|
|
|
|
(8,644
|
)
|
|
|
|
716,267
|
|
|
|
849,618
|
|
|
|
(133,351
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
|
|
12,164
|
|
|
|
22,893
|
|
|
|
(10,729
|
)
|
|
|
|
307,653
|
|
|
|
446,883
|
|
|
|
(139,230
|
)
|
|
Operation and Maintenance
|
|
|
|
|
45,899
|
|
|
|
40,628
|
|
|
|
5,271
|
|
|
|
|
200,023
|
|
|
|
193,354
|
|
|
|
6,669
|
|
|
Property, Franchise and Other Taxes
|
|
|
|
|
9,490
|
|
|
|
9,795
|
|
|
|
(305
|
)
|
|
|
|
42,870
|
|
|
|
44,738
|
|
|
|
(1,868
|
)
|
|
Depreciation, Depletion and Amortization
|
|
|
|
|
11,635
|
|
|
|
11,099
|
|
|
|
536
|
|
|
|
|
45,616
|
|
|
|
43,594
|
|
|
|
2,022
|
|
|
|
|
|
|
|
79,188
|
|
|
|
84,415
|
|
|
|
(5,227
|
)
|
|
|
|
596,162
|
|
|
|
728,569
|
|
|
|
(132,407
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
|
|
(6,640
|
)
|
|
|
(3,223
|
)
|
|
|
(3,417
|
)
|
|
|
|
120,105
|
|
|
|
121,049
|
|
|
|
(944
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
2,178
|
|
|
|
2,805
|
|
|
|
(627
|
)
|
|
|
|
2,220
|
|
|
|
3,010
|
|
|
|
(790
|
)
|
|
Other Income
|
|
|
|
|
662
|
|
|
|
510
|
|
|
|
152
|
|
|
|
|
2,265
|
|
|
|
1,611
|
|
|
|
654
|
|
|
Other Interest Expense
|
|
|
|
|
(7,030
|
)
|
|
|
(6,710
|
)
|
|
|
(320
|
)
|
|
|
|
(28,176
|
)
|
|
|
(27,693
|
)
|
|
|
(483
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
|
|
(10,830
|
)
|
|
|
(6,618
|
)
|
|
|
(4,212
|
)
|
|
|
|
96,414
|
|
|
|
97,977
|
|
|
|
(1,563
|
)
|
|
Income Tax Expense (Benefit)
|
|
|
|
|
(7,542
|
)
|
|
|
(6,091
|
)
|
|
|
(1,451
|
)
|
|
|
|
33,143
|
|
|
|
33,918
|
|
|
|
(775
|
)
|
|
Net Income (Loss)
|
|
|
|
|
$
|
(3,288
|
)
|
|
|
$
|
(527
|
)
|
|
|
$
|
(2,761
|
)
|
|
|
|
$
|
63,271
|
|
|
|
$
|
64,059
|
|
|
|
$
|
(788
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Share (Diluted)
|
|
|
|
|
$
|
(0.04
|
)
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
(0.03
|
)
|
|
|
|
$
|
0.75
|
|
|
|
$
|
0.75
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
ENERGY MARKETING SEGMENT
|
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
Revenues from External Customers
|
|
|
|
|
$
|
17,104
|
|
|
|
$
|
28,658
|
|
|
|
$
|
(11,554
|
)
|
|
|
|
$
|
159,857
|
|
|
|
$
|
271,993
|
|
|
|
$
|
(112,136
|
)
|
|
Intersegment Revenues
|
|
|
|
|
53
|
|
|
|
221
|
|
|
|
(168
|
)
|
|
|
|
849
|
|
|
|
1,159
|
|
|
|
(310
|
)
|
|
Total Operating Revenues
|
|
|
|
|
17,157
|
|
|
|
28,879
|
|
|
|
(11,722
|
)
|
|
|
|
160,706
|
|
|
|
273,152
|
|
|
|
(112,446
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
|
|
15,743
|
|
|
|
26,717
|
|
|
|
(10,974
|
)
|
|
|
|
142,068
|
|
|
|
256,625
|
|
|
|
(114,557
|
)
|
|
Operation and Maintenance
|
|
|
|
|
1,583
|
|
|
|
1,526
|
|
|
|
57
|
|
|
|
|
6,386
|
|
|
|
6,176
|
|
|
|
210
|
|
|
Property, Franchise and Other Taxes
|
|
|
|
|
7
|
|
|
|
5
|
|
|
|
2
|
|
|
|
|
15
|
|
|
|
16
|
|
|
|
(1
|
)
|
|
Depreciation, Depletion and Amortization
|
|
|
|
|
57
|
|
|
|
51
|
|
|
|
6
|
|
|
|
|
209
|
|
|
|
197
|
|
|
|
12
|
|
|
|
|
|
|
|
17,390
|
|
|
|
28,299
|
|
|
|
(10,909
|
)
|
|
|
|
148,678
|
|
|
|
263,014
|
|
|
|
(114,336
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
|
|
(233
|
)
|
|
|
580
|
|
|
|
(813
|
)
|
|
|
|
12,028
|
|
|
|
10,138
|
|
|
|
1,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
54
|
|
|
|
59
|
|
|
|
(5
|
)
|
|
|
|
195
|
|
|
|
173
|
|
|
|
22
|
|
|
Other Income
|
|
|
|
|
21
|
|
|
|
26
|
|
|
|
(5
|
)
|
|
|
|
117
|
|
|
|
112
|
|
|
|
5
|
|
|
Other Interest Expense
|
|
|
|
|
(7
|
)
|
|
|
(8
|
)
|
|
|
1
|
|
|
|
|
(27
|
)
|
|
|
(31
|
)
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
|
|
(165
|
)
|
|
|
657
|
|
|
|
(822
|
)
|
|
|
|
12,313
|
|
|
|
10,392
|
|
|
|
1,921
|
|
|
Income Tax Expense (Benefit)
|
|
|
|
|
(199
|
)
|
|
|
(4
|
)
|
|
|
(195
|
)
|
|
|
|
4,547
|
|
|
|
3,761
|
|
|
|
786
|
|
|
Net Income
|
|
|
|
|
$
|
34
|
|
|
|
$
|
661
|
|
|
|
$
|
(627
|
)
|
|
|
|
$
|
7,766
|
|
|
|
$
|
6,631
|
|
|
|
$
|
1,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share (Diluted)
|
|
|
|
|
$
|
—
|
|
|
|
$
|
0.01
|
|
|
|
$
|
(0.01
|
)
|
|
|
|
$
|
0.09
|
|
|
|
$
|
0.08
|
|
|
|
$
|
0.01
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
SEGMENT OPERATING RESULTS AND STATISTICS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
(Thousands of Dollars, except per share amounts)
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
ALL OTHER
|
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
Total Operating Revenues
|
|
|
|
|
$
|
446
|
|
|
|
$
|
738
|
|
|
|
$
|
(292
|
)
|
|
|
|
$
|
2,352
|
|
|
|
$
|
3,532
|
|
|
|
$
|
(1,180
|
)
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance
|
|
|
|
|
226
|
|
|
|
223
|
|
|
|
3
|
|
|
|
|
936
|
|
|
|
1,098
|
|
|
|
(162
|
)
|
|
Property, Franchise and Other Taxes
|
|
|
|
|
182
|
|
|
|
175
|
|
|
|
7
|
|
|
|
|
644
|
|
|
|
656
|
|
|
|
(12
|
)
|
|
Depreciation, Depletion and Amortization
|
|
|
|
|
187
|
|
|
|
84
|
|
|
|
103
|
|
|
|
|
832
|
|
|
|
344
|
|
|
|
488
|
|
|
|
|
|
|
|
595
|
|
|
|
482
|
|
|
|
113
|
|
|
|
|
2,412
|
|
|
|
2,098
|
|
|
|
314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
|
|
(149
|
)
|
|
|
256
|
|
|
|
(405
|
)
|
|
|
|
(60
|
)
|
|
|
1,434
|
|
|
|
(1,494
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
18
|
|
|
|
26
|
|
|
|
(8
|
)
|
|
|
|
66
|
|
|
|
106
|
|
|
|
(40
|
)
|
|
Other Income
|
|
|
|
|
1
|
|
|
|
42
|
|
|
|
(41
|
)
|
|
|
|
5
|
|
|
|
448
|
|
|
|
(443
|
)
|
|
Other Interest Expense
|
|
|
|
|
—
|
|
|
|
(4
|
)
|
|
|
4
|
|
|
|
|
—
|
|
|
|
(6
|
)
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
|
|
(130
|
)
|
|
|
320
|
|
|
|
(450
|
)
|
|
|
|
11
|
|
|
|
1,982
|
|
|
|
(1,971
|
)
|
|
Income Tax Expense (Benefit)
|
|
|
|
|
(63
|
)
|
|
|
137
|
|
|
|
(200
|
)
|
|
|
|
13
|
|
|
|
822
|
|
|
|
(809
|
)
|
|
Net Income (Loss)
|
|
|
|
|
$
|
(67
|
)
|
|
|
$
|
183
|
|
|
|
$
|
(250
|
)
|
|
|
|
$
|
(2
|
)
|
|
|
$
|
1,160
|
|
|
|
$
|
(1,162
|
)
|
|
Net Income (Loss) Per Share (Diluted)
|
|
|
|
|
$
|
—
|
|
|
|
$
|
0.01
|
|
|
|
$
|
(0.01
|
)
|
|
|
|
$
|
—
|
|
|
|
$
|
0.01
|
|
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
CORPORATE
|
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
Revenues from External Customers
|
|
|
|
|
$
|
240
|
|
|
|
$
|
230
|
|
|
|
$
|
10
|
|
|
|
|
$
|
916
|
|
|
|
$
|
967
|
|
|
|
$
|
(51
|
)
|
|
Intersegment Revenues
|
|
|
|
|
1,195
|
|
|
|
946
|
|
|
|
249
|
|
|
|
|
3,987
|
|
|
|
3,799
|
|
|
|
188
|
|
|
Total Operating Revenues
|
|
|
|
|
1,435
|
|
|
|
1,176
|
|
|
|
259
|
|
|
|
|
4,903
|
|
|
|
4,766
|
|
|
|
137
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and Maintenance
|
|
|
|
|
3,809
|
|
|
|
4,850
|
|
|
|
(1,041
|
)
|
|
|
|
15,655
|
|
|
|
17,137
|
|
|
|
(1,482
|
)
|
|
Property, Franchise and Other Taxes
|
|
|
|
|
129
|
|
|
|
124
|
|
|
|
5
|
|
|
|
|
495
|
|
|
|
485
|
|
|
|
10
|
|
|
Depreciation, Depletion and Amortization
|
|
|
|
|
174
|
|
|
|
167
|
|
|
|
7
|
|
|
|
|
676
|
|
|
|
678
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
4,112
|
|
|
|
5,141
|
|
|
|
(1,029
|
)
|
|
|
|
16,826
|
|
|
|
18,300
|
|
|
|
(1,474
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss
|
|
|
|
|
(2,677
|
)
|
|
|
(3,965
|
)
|
|
|
1,288
|
|
|
|
|
(11,923
|
)
|
|
|
(13,534
|
)
|
|
|
1,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
29,999
|
|
|
|
24,074
|
|
|
|
5,925
|
|
|
|
|
104,477
|
|
|
|
96,838
|
|
|
|
7,639
|
|
|
Other Income
|
|
|
|
|
717
|
|
|
|
1,047
|
|
|
|
(330
|
)
|
|
|
|
1,760
|
|
|
|
5,860
|
|
|
|
(4,100
|
)
|
|
Interest Expense on Long-Term Debt
|
|
|
|
|
(29,016
|
)
|
|
|
(22,427
|
)
|
|
|
(6,589
|
)
|
|
|
|
(95,916
|
)
|
|
|
(90,194
|
)
|
|
|
(5,722
|
)
|
|
Other Interest Expense
|
|
|
|
|
(591
|
)
|
|
|
(1,246
|
)
|
|
|
655
|
|
|
|
|
(5,545
|
)
|
|
|
(4,237
|
)
|
|
|
(1,308
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Before Income Taxes
|
|
|
|
|
(1,568
|
)
|
|
|
(2,517
|
)
|
|
|
949
|
|
|
|
|
(7,147
|
)
|
|
|
(5,267
|
)
|
|
|
(1,880
|
)
|
|
Income Tax Expense (Benefit)
|
|
|
|
|
1,874
|
|
|
|
3,666
|
|
|
|
(1,792
|
)
|
|
|
|
(1,456
|
)
|
|
|
(993
|
)
|
|
|
(463
|
)
|
|
Net Loss
|
|
|
|
|
$
|
(3,442
|
)
|
|
|
$
|
(6,183
|
)
|
|
|
$
|
2,741
|
|
|
|
|
$
|
(5,691
|
)
|
|
|
$
|
(4,274
|
)
|
|
|
$
|
(1,417
|
)
|
|
Net Loss Per Share (Diluted)
|
|
|
|
|
$
|
(0.04
|
)
|
|
|
$
|
(0.07
|
)
|
|
|
$
|
0.03
|
|
|
|
|
$
|
(0.07
|
)
|
|
|
$
|
(0.05
|
)
|
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
INTERSEGMENT ELIMINATIONS
|
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
|
|
2015
|
|
|
2014
|
|
|
Variance
|
|
Intersegment Revenues
|
|
|
|
|
$
|
(43,156
|
)
|
|
|
$
|
(44,740
|
)
|
|
|
$
|
1,584
|
|
|
|
|
$
|
(185,302
|
)
|
|
|
$
|
(177,101
|
)
|
|
|
$
|
(8,201
|
)
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Gas
|
|
|
|
|
(22,619
|
)
|
|
|
(21,373
|
)
|
|
|
(1,246
|
)
|
|
|
|
(100,199
|
)
|
|
|
(99,548
|
)
|
|
|
(651
|
)
|
|
Operation and Maintenance
|
|
|
|
|
(20,537
|
)
|
|
|
(23,367
|
)
|
|
|
2,830
|
|
|
|
|
(85,103
|
)
|
|
|
(77,553
|
)
|
|
|
(7,550
|
)
|
|
|
|
|
|
|
(43,156
|
)
|
|
|
(44,740
|
)
|
|
|
1,584
|
|
|
|
|
(185,302
|
)
|
|
|
(177,101
|
)
|
|
|
(8,201
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
(30,789
|
)
|
|
|
(24,849
|
)
|
|
|
(5,940
|
)
|
|
|
|
(106,204
|
)
|
|
|
(98,270
|
)
|
|
|
(7,934
|
)
|
|
Other Interest Expense
|
|
|
|
|
30,789
|
|
|
|
24,849
|
|
|
|
5,940
|
|
|
|
|
106,204
|
|
|
|
98,270
|
|
|
|
7,934
|
|
|
Net Income
|
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Net Income Per Share (Diluted)
|
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
SEGMENT INFORMATION (Continued)
|
|
(Thousands of Dollars)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
(Decrease)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production
|
|
|
|
|
$
|
119,863
|
|
|
(1)
|
|
$
|
158,340
|
|
|
(2)
|
|
$
|
(38,477
|
)
|
|
|
|
$
|
557,313
|
|
|
(1)(2)
|
|
$
|
602,705
|
|
|
(2)(3)
|
|
$
|
(45,392
|
)
|
|
Pipeline and Storage
|
|
|
|
|
115,528
|
|
|
(1)
|
|
74,884
|
|
|
(2)
|
|
40,644
|
|
|
|
|
230,192
|
|
|
(1)(2)
|
|
139,821
|
|
|
(2)(3)
|
|
90,371
|
|
|
Gathering
|
|
|
|
|
30,952
|
|
|
(1)
|
|
44,561
|
|
|
(2)
|
|
(13,609
|
)
|
|
|
|
118,166
|
|
|
(1)(2)
|
|
137,799
|
|
|
(2)(3)
|
|
(19,633
|
)
|
|
Utility
|
|
|
|
|
29,034
|
|
|
(1)
|
|
27,895
|
|
|
(2)
|
|
1,139
|
|
|
|
|
94,371
|
|
|
(1)(2)
|
|
88,810
|
|
|
(2)(3)
|
|
5,561
|
|
|
Energy Marketing
|
|
|
|
|
4
|
|
|
|
|
71
|
|
|
|
|
(67
|
)
|
|
|
|
128
|
|
|
|
|
264
|
|
|
|
|
(136
|
)
|
|
Total Reportable Segments
|
|
|
|
|
295,381
|
|
|
|
|
305,751
|
|
|
|
|
(10,370
|
)
|
|
|
|
1,000,170
|
|
|
|
|
969,399
|
|
|
|
|
30,771
|
|
|
All Other
|
|
|
|
|
—
|
|
|
|
|
101
|
|
|
|
|
(101
|
)
|
|
|
|
—
|
|
|
|
|
274
|
|
|
|
|
(274
|
)
|
|
Corporate
|
|
|
|
|
205
|
|
|
|
|
19
|
|
|
|
|
186
|
|
|
|
|
339
|
|
|
|
|
234
|
|
|
|
|
105
|
|
|
Total Capital Expenditures
|
|
|
|
|
$
|
295,586
|
|
|
|
|
$
|
305,871
|
|
|
|
|
$
|
(10,285
|
)
|
|
|
|
$
|
1,000,509
|
|
|
|
|
$
|
969,907
|
|
|
|
|
$
|
30,602
|
|
|
|
|
(1)
|
|
Capital expenditures for the quarter and year ended September 30,
2015, include accounts payable and accrued liabilities related to
capital expenditures of $46.2 million, $33.9 million, $22.4 million,
and $16.5 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility segment,
respectively. These amounts have been excluded from the Consolidated
Statement of Cash Flows at September 30, 2015, since they represent
non-cash investing activities at that date.
|
|
|
|
|
|
(2)
|
|
Capital expenditures for the year ended September 30, 2015, exclude
capital expenditures of $80.1 million, $28.1 million, $20.1 million
and $8.3 million in the Exploration and Production segment, Pipeline
and Storage segment, Gathering segment and Utility segment,
respectively. These amounts were in accounts payable and accrued
liabilities at September 30, 2014 and paid during the year ended
September 30, 2015. These amounts were excluded from the
Consolidated Statement of Cash Flows at September 30, 2014, since
they represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at September 30, 2015.
|
|
|
|
|
|
(3)
|
|
Capital expenditures for the year ended September 30, 2014, exclude
capital expenditures of $58.5 million, $5.6 million, $6.7 million
and $10.3 million in the Exploration and Production segment,
Pipeline and Storage segment, Gathering segment and Utility segment,
respectively. These amounts were in accounts payable and accrued
liabilities at September 30, 2013 and paid during the year ended
September 30, 2014. These amounts were excluded from the
Consolidated Statements of Cash Flows at September 30, 2013, since
they represented non-cash investing activities at that date. These
amounts have been included in the Consolidated Statement of Cash
Flows at September 30, 2014.
|
|
|
|
|
|
DEGREE DAYS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Colder
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Warmer) Than:
|
|
Three Months Ended September 30
|
|
|
|
|
Normal
|
|
|
2015
|
|
|
2014
|
|
|
Normal (1)
|
|
|
Last Year (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo, NY
|
|
|
|
|
162
|
|
|
70
|
|
|
130
|
|
|
(56.8)
|
|
|
(46.2)
|
|
Erie, PA
|
|
|
|
|
124
|
|
|
51
|
|
|
117
|
|
|
(58.9)
|
|
|
(56.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo, NY
|
|
|
|
|
6,617
|
|
|
6,968
|
|
|
7,087
|
|
|
5.3
|
|
|
(1.7)
|
|
Erie, PA
|
|
|
|
|
6,147
|
|
|
6,586
|
|
|
6,742
|
|
|
7.1
|
|
|
(2.3)
|
|
|
(1) Percents compare actual 2015 degree days to normal degree
days and actual 2015 degree days to actual 2014 degree days.
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
(Decrease)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Production/Prices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production (MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
|
|
32,183
|
|
|
|
|
40,456
|
|
|
|
|
(8,273
|
)
|
|
|
|
136,404
|
|
|
|
|
139,097
|
|
|
|
|
(2,693
|
)
|
|
West Coast
|
|
|
|
|
|
785
|
|
|
|
|
808
|
|
|
|
|
(23
|
)
|
|
|
|
3,159
|
|
|
|
|
3,210
|
|
|
|
|
(51
|
)
|
|
Total Production
|
|
|
|
|
|
32,968
|
|
|
|
|
41,264
|
|
|
|
|
(8,296
|
)
|
|
|
|
139,563
|
|
|
|
|
142,307
|
|
|
|
|
(2,744
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Mcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
|
|
$
|
2.21
|
|
|
|
|
$
|
2.84
|
|
|
|
|
$
|
(0.63
|
)
|
|
|
|
$
|
2.48
|
|
|
|
|
$
|
3.55
|
|
|
|
|
$
|
(1.07
|
)
|
|
West Coast
|
|
|
|
|
|
3.54
|
|
|
|
|
6.42
|
|
|
|
|
(2.88
|
)
|
|
|
|
4.11
|
|
|
|
|
6.75
|
|
|
|
|
(2.64
|
)
|
|
Weighted Average
|
|
|
|
|
|
2.24
|
|
|
|
|
2.91
|
|
|
|
|
(0.67
|
)
|
|
|
|
2.51
|
|
|
|
|
3.62
|
|
|
|
|
(1.11
|
)
|
|
Weighted Average after Hedging
|
|
|
|
|
|
3.35
|
|
|
|
|
3.19
|
|
|
|
|
0.16
|
|
|
|
|
3.38
|
|
|
|
|
3.56
|
|
|
|
|
(0.18
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Production/Prices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production (Thousands of Barrels)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
|
|
8
|
|
|
|
8
|
|
|
|
—
|
|
|
|
|
30
|
|
|
|
31
|
|
|
|
(1)
|
|
West Coast
|
|
|
|
|
|
770
|
|
|
|
774
|
|
|
|
(4)
|
|
|
|
3,004
|
|
|
|
3,005
|
|
|
|
(1)
|
|
Total Production
|
|
|
|
|
|
778
|
|
|
|
782
|
|
|
|
(4)
|
|
|
|
3,034
|
|
|
|
3,036
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Prices (Per Barrel)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
|
|
$
|
44.93
|
|
|
|
|
$
|
95.06
|
|
|
|
|
$
|
(50.13
|
)
|
|
|
|
$
|
57.44
|
|
|
|
|
$
|
96.34
|
|
|
|
|
$
|
(38.90
|
)
|
|
West Coast
|
|
|
|
|
|
42.33
|
|
|
|
|
93.72
|
|
|
|
|
(51.39
|
)
|
|
|
|
51.37
|
|
|
|
|
98.25
|
|
|
|
|
(46.88
|
)
|
|
Weighted Average
|
|
|
|
|
|
42.36
|
|
|
|
|
93.73
|
|
|
|
|
(51.37
|
)
|
|
|
|
51.43
|
|
|
|
|
98.23
|
|
|
|
|
(46.80
|
)
|
|
Weighted Average after Hedging
|
|
|
|
|
|
66.40
|
|
|
|
|
93.70
|
|
|
|
|
(27.30
|
)
|
|
|
|
70.36
|
|
|
|
|
95.55
|
|
|
|
|
(25.19
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production (Mmcfe)
|
|
|
|
|
|
37,636
|
|
|
|
45,956
|
|
|
|
(8,320)
|
|
|
|
157,767
|
|
|
|
160,523
|
|
|
|
(2,756)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating Performance Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General & Administrative Expense per Mcfe (1)
|
|
|
|
|
|
$
|
0.41
|
|
|
|
|
$
|
0.34
|
|
|
|
|
$
|
0.07
|
|
|
|
|
$
|
0.42
|
|
|
|
|
$
|
0.40
|
|
|
|
|
$
|
0.02
|
|
|
Lease Operating and Transportation Expense per Mcfe (1)(2)
|
|
|
|
|
|
$
|
1.07
|
|
|
|
|
$
|
1.02
|
|
|
|
|
$
|
0.05
|
|
|
|
|
$
|
1.06
|
|
|
|
|
$
|
1.03
|
|
|
|
|
$
|
0.03
|
|
|
Depreciation, Depletion & Amortization per Mcfe (1)
|
|
|
|
|
|
$
|
1.23
|
|
|
|
|
$
|
1.76
|
|
|
|
|
$
|
(0.53
|
)
|
|
|
|
$
|
1.52
|
|
|
|
|
$
|
1.85
|
|
|
|
|
$
|
(0.33
|
)
|
|
|
|
(1)
|
|
Refer to page 18 for the General and Administrative Expense, Lease
Operating Expense and Depreciation, Depletion, and Amortization
Expense for the Exploration and Production segment.
|
|
|
|
|
|
(2)
|
|
Amounts include transportation expense of $0.52 and $0.49 per Mcfe
for the three months ended September 30, 2015 and September 30,
2014, respectively. Amounts include transportation expense of $0.52
and $0.46 per Mcfe for the twelve months ended September 30, 2015
and September 30, 2014, respectively.
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
EXPLORATION AND PRODUCTION INFORMATION
|
|
|
|
Hedging Summary for Fiscal 2016
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
|
|
|
Average Hedge Price
|
|
Oil Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midway Sunset (MWSS)
|
|
|
|
|
|
36,000
|
|
|
BBL
|
|
|
|
|
$
|
92.10 / BBL
|
|
Brent
|
|
|
|
|
|
933,000
|
|
|
BBL
|
|
|
|
|
$
|
95.18 / BBL
|
|
NYMEX
|
|
|
|
|
|
456,000
|
|
|
BBL
|
|
|
|
|
$
|
73.74 / BBL
|
|
Total
|
|
|
|
|
|
1,425,000
|
|
|
BBL
|
|
|
|
|
$
|
88.24 / BBL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX
|
|
|
|
|
|
44,350,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.94 / MMBTU
|
|
Dominion Transmission Appalachian (DOM)
|
|
|
|
|
|
18,840,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.78 / MMBTU
|
|
Michigan Consolidated City Gate (Mich Con)
|
|
|
|
|
|
9,000,000
|
|
|
MMBTU
|
|
|
|
|
$
|
4.10 / MMBTU
|
|
Dawn Ontario (DAWN)
|
|
|
|
|
|
9,990,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.92 / MMBTU
|
|
Fixed Price Physical Sales
|
|
|
|
|
|
42,680,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.17 / MMBTU
|
|
Total
|
|
|
|
|
|
124,860,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.66 / MMBTU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for Fiscal 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
|
|
|
Average Hedge Price
|
|
Oil Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brent
|
|
|
|
|
|
384,000
|
|
|
BBL
|
|
|
|
|
$
|
92.30 / BBL
|
|
NYMEX
|
|
|
|
|
|
312,000
|
|
|
BBL
|
|
|
|
|
$
|
54.20 / BBL
|
|
Total
|
|
|
|
|
|
696,000
|
|
|
BBL
|
|
|
|
|
$
|
75.22 / BBL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX
|
|
|
|
|
|
29,530,000
|
|
|
MMBTU
|
|
|
|
|
$
|
4.20 / MMBTU
|
|
DOM
|
|
|
|
|
|
12,720,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.87 / MMBTU
|
|
Mich Con
|
|
|
|
|
|
3,000,000
|
|
|
MMBTU
|
|
|
|
|
$
|
4.10 / MMBTU
|
|
DAWN
|
|
|
|
|
|
19,100,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.70 / MMBTU
|
|
Fixed Price Physical Sales
|
|
|
|
|
|
31,010,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.48 / MMBTU
|
|
Total
|
|
|
|
|
|
95,360,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.82 / MMBTU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for Fiscal 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
|
|
|
Average Hedge Price
|
|
Oil Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brent
|
|
|
|
|
|
75,000
|
|
|
BBL
|
|
|
|
|
$
|
91.00 / BBL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX
|
|
|
|
|
|
20,350,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.62 / MMBTU
|
|
DAWN
|
|
|
|
|
|
1,800,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.40 / MMBTU
|
|
Fixed Price Physical Sales
|
|
|
|
|
|
8,850,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.34 / MMBTU
|
|
Total
|
|
|
|
|
|
31,000,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.53 / MMBTU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for Fiscal 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
|
|
|
Average Hedge Price
|
|
Gas Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX
|
|
|
|
|
|
11,400,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.39 / MMBTU
|
|
Fixed Price Physical Sales
|
|
|
|
|
|
7,300,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.25 / MMBTU
|
|
Total
|
|
|
|
|
|
18,700,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.33 / MMBTU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging Summary for Fiscal 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
|
|
|
|
|
|
Average Hedge Price
|
|
Gas Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NYMEX
|
|
|
|
|
|
2,000,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.49 / MMBTU
|
|
Fixed Price Physical Sales
|
|
|
|
|
|
3,660,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.25 / MMBTU
|
|
Total
|
|
|
|
|
|
5,660,000
|
|
|
MMBTU
|
|
|
|
|
$
|
3.33 / MMBTU
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
EXPLORATION AND PRODUCTION INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Wells in Process of Drilling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
East
|
|
|
|
West
|
|
|
|
Company
|
|
Wells in Process - Beginning of Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
|
3.000
|
|
(1)
|
|
0.000
|
|
|
|
3.000
|
|
Developmental
|
|
|
|
|
77.000
|
|
(1)
|
|
2.000
|
|
|
|
79.000
|
|
Wells Commenced
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
|
0.000
|
|
|
|
0.000
|
|
|
|
0.000
|
|
Developmental
|
|
|
|
|
74.000
|
|
|
|
44.000
|
|
|
|
118.000
|
|
Wells Completed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
|
3.000
|
|
|
|
0.000
|
|
|
|
3.000
|
|
Developmental
|
|
|
|
|
49.000
|
|
|
|
45.000
|
|
|
|
94.000
|
|
Wells Plugged & Abandoned
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
|
0.000
|
|
|
|
0.000
|
|
|
|
0.000
|
|
Developmental
|
|
|
|
|
2.000
|
|
|
|
1.000
|
|
|
|
3.000
|
|
Wells in Process - End of Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
|
0.000
|
|
|
|
0.000
|
|
|
|
0.000
|
|
Developmental
|
|
|
|
|
100.000
|
|
|
|
0.000
|
|
|
|
100.000
|
|
|
(1) Gross exploratory wells were increased by 2 and
developmental wells were decreased by 2.
|
|
|
Net Wells in Process of Drilling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
East
|
|
|
|
West
|
|
|
|
Company
|
|
Wells in Process - Beginning of Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
|
3.000
|
|
(1)
|
|
0.000
|
|
|
|
3.000
|
|
Developmental
|
|
|
|
|
62.500
|
|
(1)
|
|
2.000
|
|
|
|
64.500
|
|
Wells Commenced
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
|
0.000
|
|
|
|
0.000
|
|
|
|
0.000
|
|
Developmental
|
|
|
|
|
74.000
|
|
|
|
44.000
|
|
|
|
118.000
|
|
Wells Completed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
|
3.000
|
|
|
|
0.000
|
|
|
|
3.000
|
|
Developmental
|
|
|
|
|
49.000
|
|
|
|
45.000
|
|
|
|
94.000
|
|
Wells Plugged & Abandoned
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
|
0.000
|
|
|
|
0.000
|
|
|
|
0.000
|
|
Developmental
|
|
|
|
|
2.000
|
|
|
|
1.000
|
|
|
|
3.000
|
|
Wells in Process - End of Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploratory
|
|
|
|
|
0.000
|
|
|
|
0.000
|
|
|
|
0.000
|
|
Developmental
|
|
|
|
|
85.500
|
|
|
|
0.000
|
|
|
|
85.500
|
|
|
(1) Net exploratory wells were increased by 2 and
developmental wells were decreased by 2.
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
EXPLORATION AND PRODUCTION INFORMATION
|
|
|
|
Reserve Quantity Information
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Gas MMcf
|
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
|
|
Appalachian
|
|
|
West Coast
|
|
|
Total
|
|
|
|
|
|
|
|
Region
|
|
|
Region
|
|
|
Company
|
|
Proved Developed and Undeveloped Reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2014
|
|
|
|
|
|
1,624,062
|
|
|
|
58,822
|
|
|
|
1,682,884
|
|
|
Extensions and Discoveries
|
|
|
|
|
|
633,360
|
|
|
|
—
|
|
|
|
633,360
|
|
|
Revisions of Previous Estimates
|
|
|
|
|
|
(28,124
|
)
|
|
|
(6,317
|
)
|
|
|
(34,441
|
)
|
|
Production
|
|
|
|
|
|
(136,404
|
)
|
|
|
(3,159
|
)
|
|
|
(139,563
|
)
|
|
Sales of Minerals in Place
|
|
|
|
|
|
(112
|
)
|
|
|
—
|
|
|
|
(112
|
)
|
|
September 30, 2015
|
|
|
|
|
|
2,092,782
|
|
|
|
49,346
|
|
|
|
2,142,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved Developed Reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2014
|
|
|
|
|
|
1,119,901
|
|
|
|
57,907
|
|
|
|
1,177,808
|
|
|
September 30, 2015
|
|
|
|
|
|
1,267,498
|
|
|
|
49,346
|
|
|
|
1,316,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Mbbl
|
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
|
|
Appalachian
|
|
|
West Coast
|
|
|
Total
|
|
|
|
|
|
|
|
Region
|
|
|
Region
|
|
|
Company
|
|
Proved Developed and Undeveloped Reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2014
|
|
|
|
|
|
253
|
|
|
|
38,224
|
|
|
|
38,477
|
|
|
Extensions and Discoveries
|
|
|
|
|
|
—
|
|
|
|
533
|
|
|
|
533
|
|
|
Revisions of Previous Estimates
|
|
|
|
|
|
(3
|
)
|
|
|
(2,251
|
)
|
|
|
(2,254
|
)
|
|
Production
|
|
|
|
|
|
(30
|
)
|
|
|
(3,004
|
)
|
|
|
(3,034
|
)
|
|
September 30, 2015
|
|
|
|
|
|
220
|
|
|
|
33,502
|
|
|
|
33,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved Developed Reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2014
|
|
|
|
|
|
253
|
|
|
|
37,002
|
|
|
|
37,255
|
|
|
September 30, 2015
|
|
|
|
|
|
220
|
|
|
|
33,150
|
|
|
|
33,370
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
|
|
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
(Decrease)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
(Decrease)
|
|
Firm Transportation - Affiliated
|
|
|
|
|
|
15,128
|
|
|
|
|
14,362
|
|
|
|
|
766
|
|
|
|
|
110,431
|
|
|
|
|
110,327
|
|
|
|
|
104
|
|
|
Firm Transportation - Non-Affiliated
|
|
|
|
|
|
149,626
|
|
|
|
|
141,656
|
|
|
|
|
7,970
|
|
|
|
|
626,775
|
|
|
|
|
620,944
|
|
|
|
|
5,831
|
|
|
Interruptible Transportation
|
|
|
|
|
|
4,040
|
|
|
|
|
946
|
|
|
|
|
3,094
|
|
|
|
|
12,874
|
|
|
|
|
4,724
|
|
|
|
|
8,150
|
|
|
|
|
|
|
|
|
168,794
|
|
|
|
|
156,964
|
|
|
|
|
11,830
|
|
|
|
|
750,080
|
|
|
|
|
735,995
|
|
|
|
|
14,085
|
|
|
|
|
|
|
|
|
|
|
Gathering Volume - (MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
(Decrease)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
(Decrease)
|
|
Gathered Volume - Affiliated
|
|
|
|
|
|
32,934
|
|
|
|
|
41,485
|
|
|
|
|
(8,551
|
)
|
|
|
|
139,629
|
|
|
|
|
138,726
|
|
|
|
|
903
|
|
|
|
|
|
|
|
|
|
|
Utility Throughput - (MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
(Decrease)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
(Decrease)
|
|
Retail Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Sales
|
|
|
|
|
|
3,285
|
|
|
|
|
3,628
|
|
|
|
|
(343
|
)
|
|
|
|
59,600
|
|
|
|
|
60,101
|
|
|
|
|
(501
|
)
|
|
Commercial Sales
|
|
|
|
|
|
471
|
|
|
|
|
476
|
|
|
|
|
(5
|
)
|
|
|
|
8,710
|
|
|
|
|
8,834
|
|
|
|
|
(124
|
)
|
|
Industrial Sales
|
|
|
|
|
|
21
|
|
|
|
|
16
|
|
|
|
|
5
|
|
|
|
|
337
|
|
|
|
|
393
|
|
|
|
|
(56
|
)
|
|
|
|
|
|
|
|
3,777
|
|
|
|
|
4,120
|
|
|
|
|
(343
|
)
|
|
|
|
68,647
|
|
|
|
|
69,328
|
|
|
|
|
(681
|
)
|
|
Off-System Sales
|
|
|
|
|
|
—
|
|
|
|
|
230
|
|
|
|
|
(230
|
)
|
|
|
|
3,787
|
|
|
|
|
4,564
|
|
|
|
|
(777
|
)
|
|
Transportation
|
|
|
|
|
|
10,240
|
|
|
|
|
10,761
|
|
|
|
|
(521
|
)
|
|
|
|
78,749
|
|
|
|
|
80,949
|
|
|
|
|
(2,200
|
)
|
|
|
|
|
|
|
|
14,017
|
|
|
|
|
15,111
|
|
|
|
|
(1,094
|
)
|
|
|
|
151,183
|
|
|
|
|
154,841
|
|
|
|
|
(3,658
|
)
|
|
|
|
|
|
|
|
|
|
Energy Marketing Volume
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
(Decrease)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
(Decrease)
|
|
Natural Gas (MMcf)
|
|
|
|
|
|
6,537
|
|
|
|
|
6,846
|
|
|
|
|
(309
|
)
|
|
|
|
46,752
|
|
|
|
|
52,694
|
|
|
|
|
(5,942
|
)
|
|
|
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
In addition to financial measures calculated in accordance with
generally accepted accounting principles (GAAP), this press release
contains information regarding Operating Results and Adjusted EBITDA,
which are non-GAAP financial measures. The Company believes that these
non-GAAP financial measures are useful to investors because they provide
an alternative method for assessing the Company's ongoing operating
results, for measuring the Company’s cash flow and liquidity, and for
comparing the Company’s financial performance to other companies. The
Company's management uses these non-GAAP financial measures for the same
purpose, and for planning and forecasting purposes. The presentation of
non-GAAP financial measures is not meant to be a substitute for
financial measures in accordance with GAAP.
Management defines Operating Results as reported GAAP earnings before
items impacting comparability. The table at page 2 of this report
reconciles National Fuel's reported GAAP earnings to Operating Results
for the three and twelve months ended September 30, 2015 and 2014.
Management defines Adjusted EBITDA as reported GAAP earnings before the
following items: interest expense, depreciation, depletion and
amortization, interest and other income, impairments, items impacting
comparability and income taxes.
The following tables reconcile National Fuel's reported GAAP earnings to
Adjusted EBITDA for the three and twelve months ended September 30, 2015
and 2014:
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP Earnings
|
|
|
|
|
|
$
|
(187,703
|
)
|
|
|
|
$
|
57,431
|
|
|
|
|
$
|
(379,427
|
)
|
|
|
|
$
|
299,413
|
|
|
Depreciation, Depletion and Amortization
|
|
|
|
|
|
70,860
|
|
|
|
|
103,905
|
|
|
|
|
336,158
|
|
|
|
|
383,781
|
|
|
Interest and Other Income
|
|
|
|
|
|
(5,692
|
)
|
|
|
|
(5,464
|
)
|
|
|
|
(11,961
|
)
|
|
|
|
(13,631
|
)
|
|
Interest Expense
|
|
|
|
|
|
29,189
|
|
|
|
|
23,050
|
|
|
|
|
99,471
|
|
|
|
|
94,277
|
|
|
Income Taxes
|
|
|
|
|
|
(162,525
|
)
|
|
|
|
26,987
|
|
|
|
|
(319,136
|
)
|
|
|
|
189,614
|
|
|
Impairment of Oil and Gas Producing
Properties
|
|
|
|
|
|
417,197
|
|
|
|
|
—
|
|
|
|
|
1,126,257
|
|
|
|
|
—
|
|
|
Reversal of Stock-Based Compensation
|
|
|
|
|
|
(7,961
|
)
|
|
|
|
—
|
|
|
|
|
(7,961
|
)
|
|
|
|
—
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
$
|
153,365
|
|
|
|
|
$
|
205,909
|
|
|
|
|
$
|
843,401
|
|
|
|
|
$
|
953,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline and Storage Adjusted EBITDA
|
|
|
|
|
|
$
|
40,297
|
|
|
|
|
$
|
42,573
|
|
|
|
|
$
|
188,042
|
|
|
|
|
$
|
186,022
|
|
|
Gathering Adjusted EBITDA
|
|
|
|
|
|
16,328
|
|
|
|
|
19,469
|
|
|
|
|
68,783
|
|
|
|
|
64,060
|
|
|
Total Midstream Businesses Adjusted EBITDA
|
|
|
|
|
|
56,625
|
|
|
|
|
62,042
|
|
|
|
|
256,825
|
|
|
|
|
250,082
|
|
|
Exploration and Production Adjusted EBITDA
|
|
|
|
|
|
97,582
|
|
|
|
|
138,818
|
|
|
|
|
422,289
|
|
|
|
|
539,472
|
|
|
Utility Adjusted EBITDA
|
|
|
|
|
|
3,311
|
|
|
|
|
7,876
|
|
|
|
|
164,037
|
|
|
|
|
164,643
|
|
|
Energy Marketing Adjusted EBITDA
|
|
|
|
|
|
(263
|
)
|
|
|
|
631
|
|
|
|
|
12,150
|
|
|
|
|
10,335
|
|
|
Corporate and All Other Adjusted EBITDA
|
|
|
|
|
|
(3,890
|
)
|
|
|
|
(3,458
|
)
|
|
|
|
(11,900
|
)
|
|
|
|
(11,078
|
)
|
|
Total Adjusted EBITDA
|
|
|
|
|
|
$
|
153,365
|
|
|
|
|
$
|
205,909
|
|
|
|
|
$
|
843,401
|
|
|
|
|
$
|
953,454
|
|
|
|
|
|
|
NATIONAL FUEL GAS COMPANY
|
|
AND SUBSIDIARIES
|
|
|
|
Quarter Ended September 30 (unaudited)
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
|
|
$
|
301,062,000
|
|
|
|
|
$
|
366,623,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Available for Common Stock
|
|
|
|
|
$
|
(187,703,000
|
)
|
|
|
|
$
|
57,431,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
(2.22
|
)
|
|
|
|
$
|
0.68
|
|
Diluted
|
|
|
|
|
$
|
(2.22
|
)
|
|
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares:
|
|
|
|
|
|
|
|
|
|
|
Used in Basic Calculation
|
|
|
|
|
84,570,432
|
|
|
|
|
84,126,542
|
|
Used in Diluted Calculation
|
|
|
|
|
84,570,432
|
|
|
|
|
85,062,410
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
|
|
$
|
1,760,913,000
|
|
|
|
|
$
|
2,113,081,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Available for Common Stock
|
|
|
|
|
$
|
(379,427,000
|
)
|
|
|
|
$
|
299,413,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
(4.50
|
)
|
|
|
|
$
|
3.57
|
|
Diluted
|
|
|
|
|
$
|
(4.50
|
)
|
|
|
|
$
|
3.52
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares:
|
|
|
|
|
|
|
|
|
|
|
Used in Basic Calculation
|
|
|
|
|
84,387,755
|
|
|
|
|
83,929,989
|
|
Used in Diluted Calculation
|
|
|
|
|
84,387,755
|
|
|
|
|
84,952,347
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151105006978/en/
Copyright Business Wire 2015