National Fuel reports second quarter fiscal 2026 earnings

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National Fuel Gas Company (NYSE: NFG) reported consolidated results for the second quarter of fiscal 2026.

Second-quarter fiscal 2026 highlights

GAAP earnings: $247.7 million, or $2.59 EPS, compared with $216.4 million, or $2.37 per share, in the prior year.
Adjusted EPS: $2.71, up 13% year over year.
Operating cash flow: $657 million. Free cash flow: $160 million year-to-date through the second quarter, up $111 million from the prior year.
Integrated Upstream and Gathering: adjusted EPS of $1.67, up 21%, driven by a 17% increase in natural gas price realizations.
Utility segment: net income of $65 million, up 3%, supported by continued investments in system modernization programs in New York and Pennsylvania.
Supply Corporation capacity agreement: a precedent agreement to provide 94,000 dekatherms per day of incremental capacity tied to the new Line N System Upgrade Project in southwest Pennsylvania, targeted for completion in late 2028.
Construction progress: construction commenced on the Tioga Pathway and Shippingport Lateral expansion projects, both on track for a late calendar year 2026 in-service date.
Guidance update: revised fiscal 2026 adjusted EPS guidance to $7.45 to $7.75 per share, or $7.60 at the midpoint.

Management commentary

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, said the company delivered “safe and reliable” production, transmission, storage, and distribution services during severe weather from Winter Storm Fern, while adjusted EPS increased 13% versus the prior year.

He also noted that two major expansion projects in the regulated Pipeline and Storage business are expected to be in service in late calendar 2026, and that the company signed an agreement for another expansion on its Line N system. At the Utility, he said the Ohio acquisition is on track to close in the calendar fourth quarter. In Integrated Upstream and Gathering, he cited Appalachian inventory and improvements in capital efficiency, supported by ongoing testing to optimize well designs.

Fiscal 2026 guidance update and key assumptions

National Fuel is revising its fiscal 2026 adjusted EPS guidance to a range of $7.45 to $7.75 per share (midpoint: $7.60). The updated range incorporates second-quarter results and modest changes to certain assumptions for the remainder of the fiscal year, primarily related to natural gas prices.

Natural gas price assumption

The company now assumes the NYMEX natural gas price will average $3.00 per MMBtu for the remaining six months of fiscal 2026, a $0.75 decrease from previous guidance.
This level approximates the current NYMEX forward curve at the time of guidance update.

Integrated Upstream and Gathering production outlook

Integrated Upstream and Gathering fiscal 2026 production is now expected to be 425 to 440 Bcf, a moderate decrease from prior guidance.
The company attributed the change to weather impacts around Winter Storm Ferm that delayed flowback and completion timing, as well as modest production impacts from a six-well pad in Tioga County where tests of a Gen 4 Lower Utica well design and a new Upper Utica performed as expected.
Longer-term production growth remains expected to be in the mid-single digits.
The guidance range does not incorporate price-related curtailments over the remainder of the fiscal year.

Capital expenditure and acquisition timing

Capital expenditure guidance: remains unchanged, though the company noted higher oil and diesel prices tied to geopolitical events and increased land activity could push capital toward the higher end of the range.
Ohio utility acquisition: still expected to close in the fourth quarter of calendar 2026, and is not expected to impact fiscal 2026 guidance.
Fiscal 2026 guidance also excludes financing or acquisition-related costs.

Segment discussion and definitions

The company’s earnings discussion for each operating segment for the quarter ended March 31, 2026 is summarized in the tables on pages 7 and 8 of the report, with earnings drivers for the six months ended March 31, 2026 summarized on pages 9 and 10.

National Fuel defines adjusted earnings as GAAP earnings adjusted for items impacting comparability, and adjusted EBITDA as GAAP earnings before interest, taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.

Integrated Upstream and Gathering segment overview

The Integrated Upstream and Gathering segment’s exploration and production operations are carried out by Seneca Resources Company, LLC (“Seneca”), while its gathering operations are carried out by the operating subsidiaries of National Fuel Gas Midstream Company, LLC (“Gathering”). Seneca explores for, develops, and produces primarily natural gas reserves in Pennsylvania. Gathering constructs, owns, and operates natural gas gathering pipelines and compression facilities in the Appalachian region, primarily delivering Seneca’s production and, to a lesser extent, third-party Appalachian production to various interstate pipelines.

Earnings teleconference

National Fuel will hold a conference call to discuss the results on Thursday, April 30, 2026, at 9:00 a.m. ET. Participants must pre-register to join. A webcast link is available on the NFG Investor Relations website, and a replay will be available after the call.