National Fuel Gas Co 10-Q for FY2024 Q2

National Fuel Gas Co (NFG)

10-Q 2024-05-02 For: 2024-03-31

Added on April 11, 2026

About this 10-Q

National Fuel Gas Co filed this 10-Q on May 2, 2024, covering the quarter ended March 31, 2024 (FY2024 Q2).

Headline figures

Quarter ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $629.94M; down 12.2% from $717.26M a year earlier
Net income: $166.27M; up 18.0% from net income of $140.88M a year earlier
Diluted EPS: $1.80; up 17.6% from $1.53 a year earlier

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New Jersey		13-1086010
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

6363 Main Street
Williamsville,	New York	14221
(Address of principal executive offices)		(Zip Code)


Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, par value $1.00 per share	NFG	New York Stock Exchange


Large Accelerated Filer	☑	Accelerated Filer	☐
Non-Accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐


National Fuel Gas Companies
Company			The Registrant, the Registrant and its subsidiaries or the Registrant’s subsidiaries as appropriate in the context of the disclosure
Distribution Corporation			National Fuel Gas Distribution Corporation
Empire			Empire Pipeline, Inc.
Midstream Company			National Fuel Gas Midstream Company, LLC
National Fuel			National Fuel Gas Company
Registrant			National Fuel Gas Company
Seneca			Seneca Resources Company, LLC
Supply Corporation			National Fuel Gas Supply Corporation


Regulatory Agencies
CFTC			Commodity Futures Trading Commission
EPA			United States Environmental Protection Agency
FASB			Financial Accounting Standards Board
FERC			Federal Energy Regulatory Commission
IRS			Internal Revenue Service
NYDEC			New York State Department of Environmental Conservation
NYPSC			State of New York Public Service Commission
PaPUC			Pennsylvania Public Utility Commission
PHMSA			Pipeline and Hazardous Materials Safety Administration
SEC			Securities and Exchange Commission


Other
2023 Form 10-K			The Company’s Annual Report on Form 10-K for the year ended September 30, 2023
2017 Tax Reform Act			Tax legislation referred to as the "Tax Cuts and Jobs Act," enacted December 22, 2017.
Bcf			Billion cubic feet (of natural gas)
Bcfe (or Mcfe) – represents Bcf (or Mcf) Equivalent			The total heat value (Btu) of natural gas and oil expressed as a volume of natural gas. The Company uses a conversion formula of 1 barrel of oil = 6 Mcf of natural gas.
Btu			British thermal unit; the amount of heat needed to raise the temperature of one pound of water one degree Fahrenheit
Capital expenditure			Represents additions to property, plant, and equipment, or the amount of money a company spends to buy capital assets or upgrade its existing capital assets.
Cashout revenues			A cash resolution of a gas imbalance whereby a customer (e.g. a marketer) pays for gas the customer receives in excess of amounts delivered into pipeline/storage or distribution systems by the customer’s shipper.
CLCPA			Legislation referred to as the "Climate Leadership & Community Protection Act," enacted by the State of New York on July 18, 2019.
Degree day			A measure of the coldness of the weather experienced, based on the extent to which the daily average temperature falls below a reference temperature, usually 65 degrees Fahrenheit.
Derivative			A financial instrument or other contract, the terms of which include an underlying variable (a price, interest rate, index rate, exchange rate, or other variable) and a notional amount (number of units, barrels, cubic feet, etc.). The terms also permit for the instrument or contract to be settled net and no initial net investment is required to enter into the financial instrument or contract. Examples include futures contracts, forward contracts, options, no cost collars and swaps.
Development costs			Costs incurred to obtain access to proved oil and gas reserves and to provide facilities for extracting, treating, gathering and storing the oil and gas


Dodd-Frank Act			Dodd-Frank Wall Street Reform and Consumer Protection Act.
Dth			Decatherm; one Dth of natural gas has a heating value of 1,000,000 British thermal units, approximately equal to the heating value of 1 Mcf of natural gas.
ESG			Environmental, social and governance
Exchange Act			Securities Exchange Act of 1934, as amended
Expenditures for long-lived assets			Includes capital expenditures, stock acquisitions and/or investments in partnerships.
Exploration costs			Costs incurred in identifying areas that may warrant examination, as well as costs incurred in examining specific areas, including drilling exploratory wells.
Exploratory well			A well drilled in unproven or semi-proven territory for the purpose of ascertaining the presence underground of a commercial hydrocarbon deposit.
FERC 7(c) application			An application to the FERC under Section 7(c) of the federal Natural Gas Act for authority to construct, operate (and provide services through) facilities to transport or store natural gas in interstate commerce.
Firm transportation and/or storage			The transportation and/or storage service that a supplier of such service is obligated by contract to provide and for which the customer is obligated to pay whether or not the service is utilized.
GAAP			Accounting principles generally accepted in the United States of America
Goodwill			An intangible asset representing the difference between the fair value of a company and the price at which a company is purchased.
Hedging			A method of minimizing the impact of price, interest rate, and/or foreign currency exchange rate changes, often through the use of derivative financial instruments.
Hub			Location where pipelines intersect enabling the trading, transportation, storage, exchange, lending and borrowing of natural gas.
ICE			Intercontinental Exchange. An exchange which maintains a futures market for crude oil and natural gas.
Impact Fee			An annual fee imposed on unconventional wells spud in Pennsylvania. The fee is administered by the PaPUC and fees are distributed to counties and municipalities where the well is located.
Interruptible transportation and/or storage			The transportation and/or storage service that, in accordance with contractual arrangements, can be interrupted by the supplier of such service, and for which the customer does not pay unless utilized.
LDC			Local distribution company
LIFO			Last-in, first-out
Marcellus Shale			A Middle Devonian-age geological shale formation that is present nearly a mile or more below the surface in the Appalachian region of the United States, including much of Pennsylvania and southern New York.
Mcf			Thousand cubic feet (of natural gas)
MD&A			Management’s Discussion and Analysis of Financial Condition and Results of Operations
MDth			Thousand decatherms (of natural gas)
Methane			The primary component of natural gas. It is a compound made up of one carbon atom and four hydrogen atoms (CH4).
MMBtu			Million British thermal units (heating value of one decatherm of natural gas)
MMcf			Million cubic feet (of natural gas)
Natural Gas			A naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane and found in underground rock formations.
NGA			The Natural Gas Act of 1938, as amended; the federal law regulating interstate natural gas pipeline and storage companies, among other things, codified beginning at 15 U.S.C. Section 717.
NOAA			National Oceanic and Atmospheric Administration


NYMEX			New York Mercantile Exchange. An exchange which maintains a futures market for crude oil and natural gas.
OPEB			Other Post-Employment Benefit
Open Season			A bidding procedure used by pipelines to allocate firm transportation or storage capacity among prospective shippers, in which all bids submitted during a defined time period are evaluated as if they had been submitted simultaneously.
Precedent Agreement			An agreement between a pipeline company and a potential customer to sign a service agreement after specified events (called “conditions precedent”) happen, usually within a specified time.
Proved developed reserves			Reserves that can be expected to be recovered through existing wells with existing equipment and operating methods.
Proved undeveloped (PUD) reserves			Reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required to make these reserves productive.
Reserves			The unproduced but recoverable oil and/or gas in place in a formation which has been proven by production.
Revenue decoupling mechanism			A rate mechanism which adjusts customer rates to render a utility financially indifferent to throughput decreases resulting from conservation.
S&P			Standard & Poor’s Rating Service
SAR			Stock appreciation right
Service agreement			The binding agreement by which the pipeline company agrees to provide service and the shipper agrees to pay for the service.
SOFR			Secured Overnight Financing Rate
Stock acquisitions			Investments in corporations
Utica Shale			A Middle Ordovician-age geological formation lying several thousand feet below the Marcellus Shale in the Appalachian region of the United States, including much of Ohio, Pennsylvania, West Virginia and southern New York.
VEBA			Voluntary Employees’ Beneficiary Association
WNA			Weather normalization adjustment; an adjustment in utility rates which adjusts customer rates to allow a utility to recover its normal operating costs calculated at normal temperatures. If temperatures during the measured period are warmer than normal, customer rates are adjusted upward in order to recover projected operating costs. If temperatures during the measured period are colder than normal, customer rates are adjusted downward so that only the projected operating costs will be recovered.


INDEX						Page

Part I. Financial Information

Item 1. Financial Statements (Unaudited)						6

a. Consolidated Statements of Income and Earnings Reinvested in the Business - Three and Six Months Ended March 31, 2024 and 2023						6
b. Consolidated Statements of Comprehensive Income – Three and Six Months Ended March 31, 2024 and 2023						7
c. Consolidated Balance Sheets – March 31, 2024 and September 30, 2023						8
d. Consolidated Statements of Cash Flows – Six Months Ended March 31, 2024 and 2023						10
e. Notes to Condensed Consolidated Financial Statements						11
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations						29
Item 3. Quantitative and Qualitative Disclosures About Market Risk						47
Item 4. Controls and Procedures						48

Part II. Other Information

Item 1. Legal Proceedings						48
Item 1 A. Risk Factors						48
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds						50
Item 3. Defaults Upon Senior Securities						•
Item 4. Mine Safety Disclosures						•
Item 5. Other Information						50
Item 6. Exhibits						51
Signatures						52


	Three Months Ended March 31,				Six Months Ended March 31,
(Thousands of U.S. Dollars, Except Per Common Share Amounts)	2024		2023		2024		2023
INCOME
Operating Revenues:
Utility Revenues	$	290,198	$	406,758	$	492,119	$	718,376
Exploration and Production and Other Revenues	264,614		244,552		518,633		521,525
Pipeline and Storage and Gathering Revenues	75,127		65,951		144,549		136,218
	629,939		717,261		1,155,301		1,376,119

Operating Expenses:
Purchased Gas	105,940		243,839		162,491		415,035
Operation and Maintenance:
Utility	59,288		56,453		112,993		106,805
Exploration and Production and Other	32,794		31,782		67,620		58,655
Pipeline and Storage and Gathering	39,340		37,479		74,303		70,740
Property, Franchise and Other Taxes	23,019		25,367		45,434		51,572
Depreciation, Depletion and Amortization	118,935		100,964		234,725		197,564

	379,316		495,884		697,566		900,371

Operating Income	250,623		221,377		457,735		475,748
Other Income (Expense):

Other Income (Deductions)	6,070		2,884		9,801		9,203
Interest Expense on Long-Term Debt	(28,453)		(27,583)		(56,915)		(57,188)
Other Interest Expense	(6,636)		(5,861)		(12,910)		(9,704)
Income Before Income Taxes	221,604		190,817		397,711		418,059
Income Tax Expense	55,332		49,937		98,419		107,489

Net Income Available for Common Stock	166,272		140,880		299,292		310,570

EARNINGS REINVESTED IN THE BUSINESS
Balance at Beginning of Period	1,973,279		1,713,176		1,885,856		1,587,085
	2,139,551		1,854,056		2,185,148		1,897,655
Share Repurchases under Repurchase Plan	(3,816)		—		(3,816)		—
Dividends on Common Stock	(45,563)		(43,602)		(91,160)		(87,201)


Balance at March 31	$	2,090,172	$	1,810,454	$	2,090,172	$	1,810,454

Earnings Per Common Share:
Basic:
Net Income Available for Common Stock	$	1.81	$	1.53	$	3.25	$	3.39
Diluted:
Net Income Available for Common Stock	$	1.80	$	1.53	$	3.24	$	3.37
Weighted Average Common Shares Outstanding:
Used in Basic Calculation	92,114,415		91,794,765		92,011,772		91,686,110
Used in Diluted Calculation	92,512,447		92,256,348		92,478,604		92,264,717
Dividends Per Common Share:
Dividends Declared	$	0.495	$	0.475	$	0.990	$	0.950


	Three Months Ended March 31,				Six Months Ended March 31,
(Thousands of U.S. Dollars)	2024		2023		2024		2023
Net Income Available for Common Stock	$	166,272	$	140,880	$	299,292	$	310,570
Other Comprehensive Income (Loss), Before Tax:
Unrealized Gain (Loss) on Derivative Financial Instruments Arising During the Period	71,164		310,544		260,331		608,137
Reclassification Adjustment for Realized (Gains) Losses on Derivative Financial Instruments in Net Income	(60,148)		18,940		(79,857)		178,281
Other Comprehensive Income (Loss), Before Tax	11,016		329,484		180,474		786,418
Income Tax Expense (Benefit) Related to Unrealized Gain (Loss) on Derivative Financial Instruments Arising During the Period	19,746		85,394		72,232		166,770
Reclassification Adjustment for Income Tax Benefit (Expense) on Realized Losses (Gains) from Derivative Financial Instruments in Net Income	(16,689)		5,208		(22,158)		48,779
Income Taxes – Net	3,057		90,602		50,074		215,549
Other Comprehensive Income (Loss)	7,959		238,882		130,400		570,869
Comprehensive Income	$	174,231	$	379,762	$	429,692	$	881,439


	March 31, 2024		September 30, 2023
(Thousands of U.S. Dollars)
ASSETS
Property, Plant and Equipment	$	14,056,169	$	13,635,303
Less - Accumulated Depreciation, Depletion and Amortization	6,548,662		6,335,441
	7,507,507		7,299,862

Current Assets
Cash and Temporary Cash Investments	50,769		55,447

Receivables – Net of Allowance for Uncollectible Accounts of $39,695 and $36,295, Respectively	180,717		160,601
Unbilled Revenue	46,571		16,622
Gas Stored Underground	8,565		32,509
Materials and Supplies - at average cost	47,258		48,989

Other Current Assets	85,123		100,260
	419,003		414,428

Other Assets
Recoverable Future Taxes	77,416		69,045
Unamortized Debt Expense	6,418		7,240
Other Regulatory Assets	69,609		72,138
Deferred Charges	89,004		82,416
Other Investments	78,744		73,976
Goodwill	5,476		5,476
Prepaid Pension and Post-Retirement Benefit Costs	222,834		200,301
Fair Value of Derivative Financial Instruments	196,291		50,487
Other	4,723		4,891
	750,515		565,970

Total Assets	$	8,677,025	$	8,280,260


	Six Months Ended March 31, 2024				Six Months Ended March 31, 2023
	Balance at March 31, 2024		Balance at October 1, 2023		Balance at March 31, 2023		Balance at October 1, 2022

Cash and Temporary Cash Investments	$	50,769	$	55,447	$	71,533	$	46,048
Hedging Collateral Deposits	—		—		—		91,670
Cash, Cash Equivalents, and Restricted Cash	$	50,769	$	55,447	$	71,533	$	137,718


	Balance at Beginning of Period		Additions Charged to Costs and Expenses		Discounts on Purchased Receivables		Net Accounts Receivable Written-Off		Balance at End of Period
Six Months Ended March 31, 2024
Allowance for Uncollectible Accounts	$	36,295	$	9,766	$	468	$	(6,834)	$	39,695
Six Months Ended March 31, 2023
Allowance for Uncollectible Accounts	$	40,228	$	10,973	$	916	$	(3,971)	$	48,146


	Gains and Losses on Derivative Financial Instruments		Funded Status of the Pension and Other Post-Retirement Benefit Plans		Total
Three Months Ended March 31, 2024
Balance at January 1, 2024	$	127,064	$	(59,683)	$	67,381
Other Comprehensive Gains and Losses Before Reclassifications	51,418		—		51,418
Amounts Reclassified From Other Comprehensive Income	(43,459)		—		(43,459)

Balance at March 31, 2024	$	135,023	$	(59,683)	$	75,340
Six Months Ended March 31, 2024
Balance at October 1, 2023	$	4,623	$	(59,683)	$	(55,060)
Other Comprehensive Gains and Losses Before Reclassifications	188,099		—		188,099
Amounts Reclassified From Other Comprehensive Income	(57,699)		—		(57,699)


Balance at March 31, 2024	$	135,023	$	(59,683)	$	75,340
Three Months Ended March 31, 2023
Balance at January 1, 2023	$	(240,176)	$	(53,570)	$	(293,746)
Other Comprehensive Gains and Losses Before Reclassifications	225,150		—		225,150
Amounts Reclassified From Other Comprehensive Income	13,732		—		13,732

Balance at March 31, 2023	$	(1,294)	$	(53,570)	$	(54,864)
Six Months Ended March 31, 2023
Balance at October 1, 2022	$	(572,163)	$	(53,570)	$	(625,733)
Other Comprehensive Gains and Losses Before Reclassifications	441,367		—		441,367
Amounts Reclassified From Other Comprehensive Income	129,502		—		129,502

Balance at March 31, 2023	$	(1,294)	$	(53,570)	$	(54,864)


	March 31, 2024		September 30, 2023
(Thousands of U.S. Dollars)
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders’ Equity
Common Stock, $1 Par Value
Authorized - 200,000,000 Shares; Issued And Outstanding – 92,031,724 Shares and 91,819,405 Shares, Respectively	$	92,032	$	91,819
Paid in Capital	1,045,929		1,040,761
Earnings Reinvested in the Business	2,090,172		1,885,856
Accumulated Other Comprehensive Income (Loss)	75,340		(55,060)
Total Comprehensive Shareholders’ Equity	3,303,473		2,963,376
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs	2,386,574		2,384,485
Total Capitalization	5,690,047		5,347,861

Current and Accrued Liabilities
Notes Payable to Banks and Commercial Paper	278,900		287,500

Accounts Payable	93,996		152,193
Amounts Payable to Customers	72,346		59,019
Dividends Payable	45,563		45,451
Interest Payable on Long-Term Debt	22,553		20,399
Customer Advances	—		21,003
Customer Security Deposits	30,600		28,764
Other Accruals and Current Liabilities	183,966		160,974
Fair Value of Derivative Financial Instruments	—		31,009
	727,924		806,312

Other Liabilities
Deferred Income Taxes	1,199,909		1,124,170
Taxes Refundable to Customers	316,455		268,562

Cost of Removal Regulatory Liability	288,819		277,694
Other Regulatory Liabilities	165,023		165,441
Other Post-Retirement Liabilities	2,803		2,915
Asset Retirement Obligations	161,027		165,492
Other Liabilities	125,018		121,813
	2,259,054		2,126,087
Commitments and Contingencies (Note 7)	—		—


	At March 31, 2024		At September 30, 2023

Accrued Capital Expenditures	$	40,361	$	43,323
Regulatory Liabilities	37,192		38,105
Reserve for Gas Replacement	20,139		—
Liability for Royalty and Working Interests	19,198		17,679
Federal Income Taxes Payable	11,747		—



Non-Qualified Benefit Plan Liability	13,052		13,052
Other	42,277		48,815
	$	183,966	$	160,974


Recurring Fair Value Measures	At fair value as of March 31, 2024
(Thousands of Dollars)	Level 1		Level 2		Level 3		Netting Adjustments(1)		Total(1)
Assets:
Cash Equivalents – Money Market Mutual Funds	$	27,965	$	—	$	—	$	—	$	27,965

Derivative Financial Instruments:

Over the Counter Swaps – Gas	—		154,896		—		(17,371)		137,525
Over the Counter No Cost Collars – Gas	—		55,909		—		—		55,909
Contingent Consideration for Asset Sale	—		3,615		—		—		3,615
Foreign Currency Contracts	—		222		—		(980)		(758)
Other Investments:
Balanced Equity Mutual Fund	18,291		—		—		—		18,291
Fixed Income Mutual Fund	16,591		—		—		—		16,591


Total	$	62,847	$	214,642	$	—	$	(18,351)	$	259,138

Liabilities:
Derivative Financial Instruments:

Over the Counter Swaps – Gas	$	—	$	17,371	$	—	$	(17,371)	$	—

Foreign Currency Contracts	—		980		—		(980)		—
Total	$	—	$	18,351	$	—	$	(18,351)	$	—

Total Net Assets/(Liabilities)	$	62,847	$	196,291	$	—	$	—	$	259,138


Recurring Fair Value Measures	At fair value as of September 30, 2023
(Thousands of Dollars)	Level 1		Level 2		Level 3		Netting Adjustments(1)		Total(1)
Assets:
Cash Equivalents – Money Market Mutual Funds	$	39,332	$	—	$	—	$	—	$	39,332

Derivative Financial Instruments:

Over the Counter Swaps – Gas	—		65,800		—		(37,508)		28,292
Over the Counter No Cost Collars – Gas	—		30,966		—		(14,745)		16,221
Contingent Consideration for Asset Sale	—		7,277		—		—		7,277
Foreign Currency Contracts	—		150		—		(1,453)		(1,303)
Other Investments:
Balanced Equity Mutual Fund	15,837		—		—		—		15,837
Fixed Income Mutual Fund	15,897		—		—		—		15,897



Total	$	71,066	$	104,193	$	—	$	(53,706)	$	121,553

Liabilities:
Derivative Financial Instruments:

Over the Counter Swaps – Gas	$	—	$	68,311	$	—	$	(37,508)	$	30,803
Over the Counter No Cost Collars – Gas	—		14,950		—		(14,745)		205
Foreign Currency Contracts	—		1,454		—		(1,453)		1
Total	$	—	$	84,715	$	—	$	(53,706)	$	31,009

Total Net Assets/(Liabilities)	$	71,066	$	19,478	$	—	$	—	$	90,544


Details About Accumulated Other Comprehensive Income (Loss) Components	Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss)				Affected Line Item in the Statement Where Net Income is Presented
	Three Months Ended March 31,		Six Months Ended March 31,
	2024	2023	2024	2023
Gains (Losses) on Derivative Financial Instrument Cash Flow Hedges:
Commodity Contracts	$60,184	($18,768)	$79,939	($177,930)	Operating Revenues

Foreign Currency Contracts	(36)	(172)	(82)	(351)	Operating Revenues
	60,148	(18,940)	79,857	(178,281)	Total Before Income Tax
	(16,689)	5,208	(22,158)	48,779	Income Tax Expense
	$43,459	($13,732)	$57,699	($129,502)	Net of Tax


	At March 31, 2024		At September 30, 2023

Prepayments	$	13,693	$	18,966
Prepaid Property and Other Taxes	23,308		14,186
Federal Income Taxes Receivable	—		14,602
State Income Taxes Receivable	12,277		16,133

Regulatory Assets	35,845		36,373
	$	85,123	$	100,260


Quarter Ended March 31, 2024 (Thousands)
Revenues By Type of Service	Exploration and Production		Pipeline and Storage		Gathering		Utility		All Other		Corporate and Intersegment Eliminations		Total Consolidated
Production of Natural Gas	$	203,198	$	—	$	—	$	—	$	—	$	—	$	203,198
Production of Crude Oil	524		—		—		—		—		—		524
Natural Gas Processing	303		—		—		—		—		—		303
Natural Gas Gathering Service	—		—		63,993		—		—		(60,076)		3,917
Natural Gas Transportation Service	—		81,273		—		37,841		—		(25,852)		93,262
Natural Gas Storage Service	—		25,343		—		—		—		(11,024)		14,319
Natural Gas Residential Sales	—		—		—		210,392		—		—		210,392
Natural Gas Commercial Sales	—		—		—		30,815		—		—		30,815
Natural Gas Industrial Sales	—		—		—		1,281		—		(2)		1,279

Other	405		1,404		—		(881)		—		(238)		690
Total Revenues from Contracts with Customers	204,430		108,020		63,993		279,448		—		(97,192)		558,699
Alternative Revenue Programs	—		—		—		11,056		—		—		11,056
Derivative Financial Instruments	60,184		—		—		—		—		—		60,184
Total Revenues	$	264,614	$	108,020	$	63,993	$	290,504	$	—	$	(97,192)	$	629,939


Six Months Ended March 31, 2024 (Thousands)
Revenues By Type of Service	Exploration and Production		Pipeline and Storage		Gathering		Utility		All Other		Corporate and Intersegment Eliminations		Total Consolidated
Production of Natural Gas	$	435,859	$	—	$	—	$	—	$	—	$	—	$	435,859
Production of Crude Oil	1,211		—		—		—		—		—		1,211
Natural Gas Processing	570		—		—		—		—		—		570
Natural Gas Gathering Service	—		—		126,581		—		—		(118,068)		8,513
Natural Gas Transportation Service	—		152,891		—		67,126		—		(46,214)		173,803
Natural Gas Storage Service	—		46,635		—		—		—		(20,084)		26,551
Natural Gas Residential Sales	—		—		—		356,938		—		—		356,938
Natural Gas Commercial Sales	—		—		—		51,096		—		—		51,096
Natural Gas Industrial Sales	—		—		—		2,188		—		(3)		2,185

Other	1,054		2,907		—		(1,448)		—		(489)		2,024
Total Revenues from Contracts with Customers	438,694		202,433		126,581		475,900		—		(184,858)		1,058,750
Alternative Revenue Programs	—		—		—		16,612		—		—		16,612
Derivative Financial Instruments	79,939		—		—		—		—		—		79,939
Total Revenues	$	518,633	$	202,433	$	126,581	$	492,512	$	—	$	(184,858)	$	1,155,301


Quarter Ended March 31, 2023 (Thousands)
Revenues By Type of Service	Exploration and Production		Pipeline and Storage		Gathering		Utility		All Other		Corporate and Intersegment Eliminations		Total Consolidated
Production of Natural Gas	$	259,770	$	—	$	—	$	—	$	—	$	—	$	259,770
Production of Crude Oil	526		—		—		—		—		—		526
Natural Gas Processing	209		—		—		—		—		—		209
Natural Gas Gathering Service	—		—		56,981		—		—		(55,253)		1,728
Natural Gas Transportation Service	—		73,794		—		35,796		—		(21,751)		87,839
Natural Gas Storage Service	—		21,470		—		—		—		(9,219)		12,251
Natural Gas Residential Sales	—		—		—		318,649		—		—		318,649
Natural Gas Commercial Sales	—		—		—		48,966		—		—		48,966
Natural Gas Industrial Sales	—		—		—		2,768		—		(4)		2,764

Other	2,815		(161)		—		(1,864)		—		(264)		526
Total Revenues from Contracts with Customers	263,320		95,103		56,981		404,315		—		(86,491)		733,228
Alternative Revenue Programs	—		—		—		2,801		—		—		2,801
Derivative Financial Instruments	(18,768)		—		—		—		—		—		(18,768)
Total Revenues	$	244,552	$	95,103	$	56,981	$	407,116	$	—	$	(86,491)	$	717,261


Six Months Ended March 31, 2023 (Thousands)
Revenues By Type of Service	Exploration and Production		Pipeline and Storage		Gathering		Utility		All Other		Corporate and Intersegment Eliminations		Total Consolidated
Production of Natural Gas	$	692,129	$	—	$	—	$	—	$	—	$	—	$	692,129
Production of Crude Oil	1,154		—		—		—		—		—		1,154
Natural Gas Processing	583		—		—		—		—		—		583
Natural Gas Gathering Service	—		—		113,394		—		—		(109,020)		4,374
Natural Gas Transportation Service	—		149,996		—		64,174		—		(42,568)		171,602
Natural Gas Storage Service	—		42,756		—		—		—		(18,215)		24,541
Natural Gas Residential Sales	—		—		—		562,955		—		—		562,955
Natural Gas Commercial Sales	—		—		—		83,461		—		—		83,461
Natural Gas Industrial Sales	—		—		—		4,407		—		(4)		4,403

Other	5,589		7		—		(2,124)		—		(548)		2,924
Total Revenues from Contracts with Customers	699,455		192,759		113,394		712,873		—		(170,355)		1,548,126
Alternative Revenue Programs	—		—		—		5,923		—		—		5,923
Derivative Financial Instruments	(177,930)		—		—		—		—		—		(177,930)
Total Revenues	$	521,525	$	192,759	$	113,394	$	718,796	$	—	$	(170,355)	$	1,376,119


	March 31, 2024				September 30, 2023
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-Term Debt	$	2,386,574	$	2,291,399	$	2,384,485	$	2,210,478


	At March 31, 2024		At September 30, 2023

Life Insurance Contracts	$	43,862	$	42,242
Equity Mutual Fund	18,291		15,837
Fixed Income Mutual Fund	16,591		15,897

	$	78,744	$	73,976


The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the
Three Months Ended March 31, 2024 and 2023 (Thousands of Dollars)
Derivatives in Cash Flow Hedging Relationships	Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on the Consolidated Statement of Comprehensive Income (Loss) for the Three Months Ended March 31,				Location of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income	Amount of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income for the Three Months Ended March 31,
	2024		2023			2024		2023
Commodity Contracts	$	71,876	$	310,623	Operating Revenue	$	60,184	$	(18,768)

Foreign Currency Contracts	(712)		(79)		Operating Revenue	(36)		(172)
Total	$	71,164	$	310,544		$	60,148	$	(18,940)


The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the
Six Months Ended March 31, 2024 and 2023 (Thousands of Dollars)
Derivatives in Cash Flow Hedging Relationships	Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on the Consolidated Statement of Comprehensive Income (Loss) for the Six Months Ended March 31,				Location of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income	Amount of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income for the Six Months Ended March 31,
	2024		2023			2024		2023
Commodity Contracts	$	259,865	$	607,743	Operating Revenue	$	79,939	$	(177,930)

Foreign Currency Contracts	466		394		Operating Revenue	(82)		(351)
Total	$	260,331	$	608,137		$	79,857	$	(178,281)


	Common Stock			Paid In Capital		Earnings Reinvested in the Business		Accumulated Other Comprehensive Income (Loss)
	Shares	Amount
	(Thousands, except per share amounts)
Balance at January 1, 2024	92,116	$	92,116	$	1,041,226	$	1,973,279	$	67,381
Net Income Available for Common Stock						166,272
Dividends Declared on Common Stock ($0.495 Per Share)						(45,563)

Other Comprehensive Income, Net of Tax								7,959
Share-Based Payment Expense (1)				5,222

Common Stock Issued Under Stock and Benefit Plans	12	12		569
Share Repurchases Under Repurchase Plan	(96)	(96)		(1,088)		(3,816)
Balance at March 31, 2024	92,032	$	92,032	$	1,045,929	$	2,090,172	$	75,340

Balance at October 1, 2023	91,819	$	91,819	$	1,040,761	$	1,885,856	$	(55,060)
Net Income Available for Common Stock						299,292
Dividends Declared on Common Stock ($0.99 Per Share)						(91,160)

Other Comprehensive Income, Net of Tax								130,400
Share-Based Payment Expense (1)				9,356

Common Stock Issued (Repurchased) Under Stock and Benefit Plans	309	309		(3,100)

Share Repurchases Under Repurchase Plan	(96)	(96)		(1,088)		(3,816)
Balance at March 31, 2024	92,032	$	92,032	$	1,045,929	$	2,090,172	$	75,340

Balance at January 1, 2023	91,787	$	91,787	$	1,025,639	$	1,713,176	$	(293,746)
Net Income Available for Common Stock						140,880
Dividends Declared on Common Stock ($0.475 Per Share)						(43,602)

Other Comprehensive Income, Net of Tax								238,882
Share-Based Payment Expense (1)				5,200

Common Stock Issued Under Stock and Benefit Plans	8	8		502
Balance at March 31, 2023	91,795	$	91,795	$	1,031,341	$	1,810,454	$	(54,864)

Balance at October 1, 2022	91,478	$	91,478	$	1,027,066	$	1,587,085	$	(625,733)
Net Income Available for Common Stock						310,570
Dividends Declared on Common Stock ($0.95 Per Share)						(87,201)

Other Comprehensive Income, Net of Tax								570,869
Share-Based Payment Expense (1)				10,318

Common Stock Issued (Repurchased) Under Stock and Benefit Plans	317	317		(6,043)
Balance at March 31, 2023	91,795	$	91,795	$	1,031,341	$	1,810,454	$	(54,864)


(Thousands)	Exploration and Production	Pipeline and Storage	Gathering	Utility	Total Reportable Segments	All Other	Corporate and Intersegment Eliminations	Total Consolidated
Segment Assets:
At March 31, 2024	$3,049,670	$2,472,011	$971,741	$2,359,961	$8,853,383	$4,823	$(181,181)	$8,677,025
At September 30, 2023	$2,814,218	$2,427,214	$912,923	$2,247,743	$8,402,098	$4,795	$(126,633)	$8,280,260


	Retirement Plan				Other Post-Retirement Benefits
Three Months Ended March 31,	2024		2023		2024		2023

Service Cost	$	1,049	$	1,297	$	109	$	147
Interest Cost	10,890		10,629		3,890		3,912
Expected Return on Plan Assets	(17,086)		(16,648)		(6,660)		(6,403)
Amortization of Prior Service Cost (Credit)	91		109		(107)		(107)

Amortization of (Gains) Losses	(335)		(1,920)		(567)		(2,189)
Net Amortization and Deferral for Regulatory Purposes (Including Volumetric Adjustments) (1)	4,057		5,378		1,769		3,493

Net Periodic Benefit Cost (Income)	$	(1,334)	$	(1,155)	$	(1,566)	$	(1,147)



	Retirement Plan				Other Post-Retirement Benefits
Six Months Ended March 31,	2024		2023		2024		2023

Service Cost	$	2,098	$	2,594	$	217	$	293
Interest Cost	21,779		21,258		7,780		7,824
Expected Return on Plan Assets	(34,172)		(33,297)		(13,321)		(12,806)
Amortization of Prior Service Cost (Credit)	181		218		(214)		(214)

Amortization of (Gains) Losses	(669)		(3,840)		(1,133)		(4,378)
Net Amortization and Deferral for Regulatory Purposes (Including Volumetric Adjustments) (1)	8,116		10,756		4,008		7,314

Net Periodic Benefit Cost (Income)	$	(2,667)	$	(2,311)	$	(2,663)	$	(1,967)


	Three Months Ended March 31,			Six Months Ended March 31,
(MMcf)	2024	2023	Increase (Decrease)	2024	2023	Increase (Decrease)
Firm Transportation	222,258	231,081	(8,823)	422,359	455,705	(33,346)
Interruptible Transportation	1,271	619	652	1,389	1,927	(538)
	223,529	231,700	(8,171)	423,748	457,632	(33,884)


Three Months Ended March 31,				Percent Colder (Warmer) Than
	Normal	2024	2023	Normal(1)		Prior Year(1)
Buffalo, NY	3,326	2,705	2,820	(18.7)	%	(4.1)	%
Erie, PA(2)	3,057	2,576	2,645	(15.7)	%	(2.6)	%
Six Months Ended March 31,
Buffalo, NY	5,579	4,563	4,868	(18.2)	%	(6.3)	%
Erie, PA	4,951	4,240	4,632	(14.4)	%	(8.5)	%


Total Expenditures for Long-Lived Assets
Six Months Ended March 31,	2024			2023			Increase (Decrease)
(Millions)
Exploration and Production:
Capital Expenditures	$	285.1	(1)	$	323.6	(2)	$	(38.5)
Pipeline and Storage:
Capital Expenditures	42.6		(1)	33.3		(2)	9.3
Gathering:
Capital Expenditures	39.5		(1)	34.1		(2)	5.4
Utility:
Capital Expenditures	68.3		(1)	49.2		(2)	19.1
All Other:
Capital Expenditures	0.2			0.4			(0.2)

	$	435.7		$	440.6		$	(4.9)


Period	Total Number of Shares Purchased (a)	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Share Repurchase Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under Share Repurchase Plans or Programs (b)
Jan. 1 - 31, 2024	15,968	$49.86	—	6,971,019
Feb. 1 - 29, 2024	15,620	$47.68	—	6,971,019
Mar. 1 - 31, 2024	110,455	$51.91	96,133	$195,000,278
Total	142,043	$51.24	96,133


Exhibit Number						Description of Exhibit
10.1						Credit Agreement Existing Maturity Date Extension Consent, dated February 1, 2024, among the Company, the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent.

•						Term Loan Agreement, dated as of February 14, 2024, among the Company, the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent (Exhibit 10.1, Form 8-K dated February 14, 2024).

•						National Fuel Gas Company 2010 Equity Compensation Plan (Exhibit 10.1, Form 8-K dated March 11, 2024).

31.1						Written statements of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act.

31.2						Written statements of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act.

32••						Certification furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

99						National Fuel Gas Company Consolidated Statements of Income for the Twelve Months Ended March 31, 202 4 and 202 3 .

101						Interactive data files submitted pursuant to Regulation S-T, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Income and Earnings Reinvested in the Business for the six months ended March 31, 2024 and 2023, (ii) the Consolidated Statements of Comprehensive Income for the six months ended March 31, 2024 and 2023, (iii) the Consolidated Balance Sheets at March 31, 2024 and September 30, 2023, (iv) the Consolidated Statements of Cash Flows for the six months ended March 31, 2024 and 2023 and (v) the Notes to Condensed Consolidated Financial Statements.

104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

•						Incorporated herein by reference as indicated.



••						In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release Nos. 33-8238 and 34-47986, Final Rule: Management’s Reports on Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports, the material contained in Exhibit 32 is “furnished” and not deemed “filed” with the SEC and is not to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933 or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language contained in such filing, except to the extent that the Registrant specifically incorporates it by reference.


NATIONAL FUEL GAS COMPANY
(Registrant)





/s/ T. J. Silverstein
T. J. Silverstein
Treasurer and Chief Financial Officer





/s/ E. G. Mendel
E. G. Mendel
Controller and Chief Accounting Officer