FISCAL 2017 SECOND QUARTER SUMMARY
• Consolidated net income of $89.3 million or $1.04 per
share compared to a consolidated net loss of $147.7 million or $1.74 per share
in the prior year
• Adjusted EBITDA of $227.0 million, up from $224.4 million
in the prior year
• Net production of 45.6 Bcfe, a 16% increase from prior
year
• Seneca combined LOE, G&A and DD&A expenses of
$1.92 per Mcfe, a $0.48 per Mcfe decrease from the prior year
• Gathering revenues of $28.0 million on 50.6 Bcf of system
throughput, a 29% increase from the prior year
• Weather in Utility's Pennsylvania service territory 4.1%
warmer than prior year and 15.5% warmer than normal
• Raising and tightening fiscal 2017 earnings guidance to a
range of $3.20 to $3.35 per share
• Raising and tightening fiscal 2017 production guidance to
a range of 165 to 180 Bcfe
MANAGEMENT COMMENTS
Ronald J. Tanski, President and Chief Executive Officer of
National Fuel Gas Company, stated: “Strong performance in our Exploration &
Production and Gathering segments over each of our last two quarters bodes well
for our whole fiscal year.
These segments continue to benefit from improving natural
gas prices in the Appalachian basin. Given the relative near-term strength we
are seeing in local pricing, we are positioning our near-term development and
marketing plans to target a 10-plus percent annual growth rate in our
Appalachian production over the next three years and lock-in attractive returns
on our low cost drilling program and gathering investments. Seneca is in the
process of adding a second rig to prepare for the start of its Atlantic Sunrise
capacity and eventually begin Utica Shale development in Tioga County, Pa., in
fiscal 2018, providing opportunities for further growth.
“The higher earnings in our unregulated segments more than
offset the decline in earnings in our regulated Pipeline & Storage and
Utility segments, where a number of minor factors drove earnings modestly lower
than the previous year. Since most of the daily operational activities of the
regulated companies remain fairly routine from year to year, these minor
variances are not uncommon. However, the increasingly difficult regulatory
policies in New York are impacting our ability to make reasoned decisions with
respect to additional investments in these segments in the state. Nonetheless,
our dedicated employees continue to execute our operational plan to ensure safe
and reliable natural gas service for our customers in New York and Pennsylvania.
“While we sort through the delay of our Northern Access
pipeline project, we will concentrate on our investment opportunities outside
the state of New York. As we focus on our Exploration & Production and
Gathering segments, along with ongoing investment in the expansion and
modernization of our pipeline systems where possible, I am confident that we
can continue to grow our integrated businesses.” Read more...
