National Fuel Gas Co 10-Q for FY2021 Q1

National Fuel Gas Co (NFG)

10-Q 2021-02-05 For: 2020-12-31

Added on April 11, 2026

About this 10-Q

National Fuel Gas Co filed this 10-Q on February 5, 2021, covering the quarter ended December 31, 2020 (FY2021 Q1).

Headline figures

Quarter ended December 31, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $441.16M; down 0.7% from $444.19M a year earlier
Net income: $77.77M; down 10.2% from net income of $86.59M a year earlier
Diluted EPS: $0.85; down 15.0% from $1.00 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
NFR			National Fuel Resources, Inc.
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
NYDEC			New York State Department of Environmental Conservation
NYPSC			State of New York Public Service Commission
PaDEP			Pennsylvania Department of Environmental Protection
PaPUC			Pennsylvania Public Utility Commission
PHMSA			Pipeline and Hazardous Materials Safety Administration
SEC			Securities and Exchange Commission


Other
2020 Form 10-K			The Company’s Annual Report on Form 10-K for the year ended September 30, 2020
2017 Tax Reform Act			Tax legislation referred to as the "Tax Cuts and Jobs Act," enacted December 22, 2017.
Bbl			Barrel (of oil)
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.
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 times 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.
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
LIBOR			London Interbank Offered Rate
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.
Mbbl			Thousand barrels (of oil)
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)
MMBtu			Million British thermal units (heating value of one decatherm of natural gas)
MMcf			Million cubic feet (of natural gas)


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.
NYMEX			New York Mercantile Exchange. An exchange which maintains a futures market for crude oil and natural gas.
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.
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
WNC			Weather normalization clause; a clause 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 Months Ended December 31, 2020 and 2019						6
b. Consolidated Statements of Comprehensive Income – Three Months Ended December 31, 2020 and 2019						7
c. Consolidated Balance Sheets – December 31, 2020 and September 30, 2020						8
d. Consolidated Statements of Cash Flows – Three Months Ended December 31, 2020 and 2019						10
e. Notes to Condensed Consolidated Financial Statements						11
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations						26
Item 3. Quantitative and Qualitative Disclosures About Market Risk						43
Item 4. Controls and Procedures						43

Part II. Other Information

Item 1. Legal Proceedings						43
Item 1 A. Risk Factors						43
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds						45
Item 3. Defaults Upon Senior Securities						•
Item 4. Mine Safety Disclosures						•
Item 5. Other Information						•
Item 6. Exhibits						46
Signatures						47


	Three Months Ended December 31,
(Thousands of U.S. Dollars, Except Per Common Share Amounts)	2020		2019
INCOME
Operating Revenues:
Utility and Energy Marketing Revenues	$	189,466	$	228,026
Exploration and Production and Other Revenues	192,035		167,193
Pipeline and Storage and Gathering Revenues	59,659		48,969
	441,160		444,188

Operating Expenses:
Purchased Gas	51,620		92,272
Operation and Maintenance:
Utility and Energy Marketing	44,886		43,256
Exploration and Production and Other	42,027		36,693
Pipeline and Storage and Gathering	28,098		25,885
Property, Franchise and Other Taxes	22,781		23,144
Depreciation, Depletion and Amortization	83,120		74,918
Impairment of Oil and Gas Producing Properties	76,152		—
	348,684		296,168
Gain on Sale of Timber Properties	51,066		—
Operating Income	143,542		148,020
Other Income (Expense):

Other Income (Deductions)	(2,176)		(3,040)
Interest Expense on Long-Term Debt	(32,256)		(25,443)
Other Interest Expense	(1,919)		(1,551)
Income Before Income Taxes	107,191		117,986
Income Tax Expense	29,417		31,395

Net Income Available for Common Stock	77,774		86,591

EARNINGS REINVESTED IN THE BUSINESS
Balance at Beginning of Period	991,630		1,272,601
	1,069,404		1,359,192

Dividends on Common Stock	(40,560)		(37,650)
Cumulative Effect of Adoption of Authoritative Guidance for Hedging	—		(950)



Balance at December 31	$	1,028,844	$	1,320,592

Earnings Per Common Share:
Basic:
Net Income Available for Common Stock	$	0.85	$	1.00
Diluted:
Net Income Available for Common Stock	$	0.85	$	1.00
Weighted Average Common Shares Outstanding:
Used in Basic Calculation	91,007,657		86,378,450
Used in Diluted Calculation	91,508,259		86,883,152
Dividends Per Common Share:
Dividends Declared	$	0.445	$	0.435


	Three Months Ended December 31,
(Thousands of U.S. Dollars)	2020		2019
Net Income Available for Common Stock	$	77,774	$	86,591
Other Comprehensive Income (Loss), Before Tax:
Unrealized Gain (Loss) on Derivative Financial Instruments Arising During the Period	48,021		495
Reclassification Adjustment for Realized (Gains) Losses on Derivative Financial Instruments in Net Income	311		(7,352)
Cumulative Effect of Adoption of Authoritative Guidance for Hedging	—		1,313

Other Comprehensive Income (Loss), Before Tax	48,332		(5,544)
Income Tax Expense (Benefit) Related to Unrealized Gain (Loss) on Derivative Financial Instruments Arising During the Period	13,230		119
Reclassification Adjustment for Income Tax Benefit (Expense) on Realized Losses (Gains) from Derivative Financial Instruments in Net Income	86		(2,031)
Income Tax Benefit (Expense) on Cumulative Effect of Adoption of Authoritative Guidance for Hedging	—		363


Income Taxes – Net	13,316		(1,549)
Other Comprehensive Income (Loss)	35,016		(3,995)
Comprehensive Income	$	112,790	$	82,596


	December 31, 2020		September 30, 2020
(Thousands of U.S. Dollars)
ASSETS
Property, Plant and Equipment	$	12,495,227	$	12,351,852
Less - Accumulated Depreciation, Depletion and Amortization	6,503,561		6,353,785
	5,991,666		5,998,067
Assets Held for Sale, Net	—		53,424
Current Assets
Cash and Temporary Cash Investments	109,413		20,541

Receivables – Net of Allowance for Uncollectible Accounts of $26,221 and $22,810, Respectively	178,584		143,583
Unbilled Revenue	45,829		17,302
Gas Stored Underground	19,648		33,338
Materials, Supplies and Emission Allowances	51,694		51,877
Unrecovered Purchased Gas Costs	367		—
Other Current Assets	47,904		47,557
	453,439		314,198

Other Assets
Recoverable Future Taxes	117,431		118,310
Unamortized Debt Expense	11,870		12,297
Other Regulatory Assets	153,172		156,106
Deferred Charges	61,986		67,131
Other Investments	145,921		154,502
Goodwill	5,476		5,476
Prepaid Post-Retirement Benefit Costs	80,032		76,035
Fair Value of Derivative Financial Instruments	18,094		9,308
Other	81		81
	594,063		599,246

Total Assets	$	7,039,168	$	6,964,935


	Three Months Ended December 31, 2020				Three Months Ended December 31, 2019
	Balance at October 1, 2020		Balance at December 31, 2020		Balance at October 1, 2019		Balance at December 31, 2019

Cash and Temporary Cash Investments	$	20,541	$	109,413	$	20,428	$	34,966
Hedging Collateral Deposits	—		—		6,832		9,666
Cash, Cash Equivalents, and Restricted Cash	$	20,541	$	109,413	$	27,260	$	44,632


	Balance at Beginning of Period		Additions Charged to Costs and Expenses		Add: Discounts on Purchased Receivables		Deduct: Net Accounts Receivable Written-Off		Balance at End of Period
Three Months Ended December 31, 2020
Allowance for Uncollectible Accounts	$	22,810	$	4,679	$	170	$	1,438	$	26,221


	At December 31, 2020		At September 30, 2020

Materials and Supplies - at average cost	$	33,676	$	33,859
Emission Allowances	18,018		18,018
	$	51,694	$	51,877


	December 31, 2020		September 30, 2020
(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 – 91,152,710 Shares and 90,954,696 Shares, Respectively	$	91,153	$	90,955
Paid in Capital	1,004,369		1,004,158
Earnings Reinvested in the Business	1,028,844		991,630
Accumulated Other Comprehensive Loss	(79,741)		(114,757)
Total Comprehensive Shareholders’ Equity	2,044,625		1,971,986
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs	2,130,473		2,629,576
Total Capitalization	4,175,098		4,601,562

Current and Accrued Liabilities
Notes Payable to Banks and Commercial Paper	25,000		30,000
Current Portion of Long-Term Debt	500,000		—
Accounts Payable	96,905		134,126
Amounts Payable to Customers	5,823		10,788
Dividends Payable	40,560		40,475
Interest Payable on Long-Term Debt	45,350		27,521
Customer Advances	16,032		15,319
Customer Security Deposits	17,623		17,199
Other Accruals and Current Liabilities	154,377		140,176
Fair Value of Derivative Financial Instruments	4,513		43,969
	906,183		459,573

Deferred Credits
Deferred Income Taxes	735,236		696,054
Taxes Refundable to Customers	357,354		357,508

Cost of Removal Regulatory Liability	234,641		230,079
Other Regulatory Liabilities	168,188		161,573
Pension and Other Post-Retirement Liabilities	124,097		127,181
Asset Retirement Obligations	192,682		192,228
Other Deferred Credits	145,689		139,177
	1,957,887		1,903,800
Commitments and Contingencies (Note 8)	—		—


	At December 31, 2020		At September 30, 2020

Accrued Capital Expenditures	$	34,840	$	33,344
Regulatory Liabilities	41,402		44,890
Reserve for Gas Replacement	1,778		—
Liability for Royalty and Working Interests	22,869		15,665




Non-Qualified Benefit Plan Liability	14,460		14,460
Other	39,028		31,817
	$	154,377	$	140,176


Recurring Fair Value Measures	At fair value as of December 31, 2020
(Thousands of Dollars)	Level 1		Level 2		Level 3		Netting Adjustments(1)		Total(1)
Assets:
Cash Equivalents – Money Market Mutual Funds	$	89,114	$	—	$	—	$	—	$	89,114
Derivative Financial Instruments:

Over the Counter Swaps – Gas and Oil	—		37,571		—		(19,204)		18,367
Over the Counter No Cost Collars – Gas	—		—		—		(444)		(444)
Foreign Currency Contracts	—		1,027		—		(856)		171
Other Investments:
Balanced Equity Mutual Fund	32,226		—		—		—		32,226
Fixed Income Mutual Fund	70,223		—		—		—		70,223
Common Stock – Financial Services Industry	819		—		—		—		819


Total	$	192,382	$	38,598	$	—	$	(20,504)	$	210,476

Liabilities:
Derivative Financial Instruments:

Over the Counter Swaps – Gas and Oil	—		22,966		—		(19,204)		3,762
Over the Counter No Cost Collars – Gas	—		1,734		—		(444)		1,290
Foreign Currency Contracts	—		317		—		(856)		(539)
Total	$	—	$	25,017	$	—	$	(20,504)	$	4,513

Total Net Assets/(Liabilities)	$	192,382	$	13,581	$	—	$	—	$	205,963


Recurring Fair Value Measures	At fair value as of September 30, 2020
(Thousands of Dollars)	Level 1		Level 2		Level 3		Netting Adjustments(1)		Total(1)
Assets:
Cash Equivalents – Money Market Mutual Funds	$	12,285	$	—	$	—	$	—	$	12,285
Derivative Financial Instruments:

Over the Counter Swaps – Gas and Oil	—		36,418		—		(26,400)		10,018
Over the Counter No Cost Collars – Gas	—		—		—		(720)		(720)
Foreign Currency Contracts	—		259		—		(338)		(79)
Other Investments:
Balanced Equity Mutual Fund	39,618		—		—		—		39,618
Fixed Income Mutual Fund	72,253		—		—		—		72,253
Common Stock – Financial Services Industry	639		—		—		—		639


Total	$	124,795	$	36,677	$	—	$	(27,458)	$	134,014

Liabilities:
Derivative Financial Instruments:

Over the Counter Swaps – Gas and Oil	—		61,280		—		(26,400)		34,880
Over the Counter No Cost Collars – Gas	—		8,171		—		(720)		7,451
Foreign Currency Contracts	—		1,976		—		(338)		1,638
Total	$	—	$	71,427	$	—	$	(27,458)	$	43,969

Total Net Assets/(Liabilities)	$	124,795	$	(34,750)	$	—	$	—	$	90,045


	Gains and Losses on Derivative Financial Instruments		Funded Status of the Pension and Other Post-Retirement Benefit Plans		Total
Three Months Ended December 31, 2020
Balance at October 1, 2020	$	(24,865)	$	(89,892)	$	(114,757)
Other Comprehensive Gains and Losses Before Reclassifications	34,791		—		34,791
Amounts Reclassified From Other Comprehensive Income (Loss)	225		—		225
Balance at December 31, 2020	$	10,151	$	(89,892)	$	(79,741)






Three Months Ended December 31, 2019
Balance at October 1, 2019	$	34,675	$	(86,830)	$	(52,155)
Other Comprehensive Gains and Losses Before Reclassifications	376		—		376
Amounts Reclassified From Other Comprehensive Income (Loss)	(5,321)		—		(5,321)
Cumulative Effect of Adoption of Authoritative Guidance for Hedging	950		—		950
Balance at December 31, 2019	$	30,680	$	(86,830)	$	(56,150)


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 December 31,
	2020	2019
Gains (Losses) on Derivative Financial Instrument Cash Flow Hedges:
Commodity Contracts	($310)	$7,541		Operating Revenues
Commodity Contracts	—	2		Purchased Gas
Foreign Currency Contracts	(1)	(191)		Operating Revenues
	(311)	7,352		Total Before Income Tax
	86	(2,031)		Income Tax Expense
	($225)	$5,321		Net of Tax


	At December 31, 2020		At September 30, 2020

Prepayments	$	10,203	$	12,851
Prepaid Property and Other Taxes	14,821		14,269

State Income Taxes Receivable	1,439		3,828

Regulatory Assets	21,441		16,609
	$	47,904	$	47,557


Quarter Ended December 31, 2020 (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	$	166,442	$	—	$	—	$	—	$	—	$	—	$	166,442
Production of Crude Oil	24,499		—		—		—		—		—		24,499
Natural Gas Processing	553		—		—		—		—		—		553
Natural Gas Gathering Service	—		—		47,009		—		—		(46,658)		351
Natural Gas Transportation Service	—		64,825		—		29,021		—		(19,590)		74,256
Natural Gas Storage Service	—		20,517		—		—		—		(8,763)		11,754
Natural Gas Residential Sales	—		—		—		137,881		—		—		137,881
Natural Gas Commercial Sales	—		—		—		17,195		—		—		17,195
Natural Gas Industrial Sales	—		—		—		922		—		—		922
Natural Gas Marketing	—		—		—		—		585		(20)		565
Other	211		2,422		—		(1,612)		545		(108)		1,458
Total Revenues from Contracts with Customers	191,705		87,764		47,009		183,407		1,130		(75,139)		435,876
Alternative Revenue Programs	—		—		—		5,594		—		—		5,594
Derivative Financial Instruments	(310)		—		—		—		—		—		(310)
Total Revenues	$	191,395	$	87,764	$	47,009	$	189,001	$	1,130	$	(75,139)	$	441,160


Quarter Ended December 31, 2019 (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	$	119,874	$	—	$	—	$	—	$	—	$	—	$	119,874
Production of Crude Oil	37,664		—		—		—		—		—		37,664
Natural Gas Processing	688		—		—		—		—		—		688
Natural Gas Gathering Service	—		—		34,788		—		—		(34,788)		—
Natural Gas Transportation Service	—		53,452		—		32,808		—		(16,986)		69,274
Natural Gas Storage Service	—		18,426		—		—		—		(7,993)		10,433
Natural Gas Residential Sales	—		—		—		144,370		—		—		144,370
Natural Gas Commercial Sales	—		—		—		18,841		—		—		18,841
Natural Gas Industrial Sales	—		—		—		1,270		—		—		1,270
Natural Gas Marketing	—		—		—		—		34,108		(177)		33,931
Other	172		342		—		(3,324)		1,120		(52)		(1,742)
Total Revenues from Contracts with Customers	158,398		72,220		34,788		193,965		35,228		(59,996)		434,603
Alternative Revenue Programs	—		—		—		2,860		—		—		2,860
Derivative Financial Instruments	7,541		—		—		—		(816)		—		6,725
Total Revenues	$	165,939	$	72,220	$	34,788	$	196,825	$	34,412	$	(59,996)	$	444,188


	December 31, 2020				September 30, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-Term Debt	$	2,630,473	$	2,868,429	$	2,629,576	$	2,778,556


	At December 31, 2020		At September 30, 2020

Life Insurance Contracts	$	42,653	$	41,992
Equity Mutual Fund	32,226		39,618
Fixed Income Mutual Fund	70,223		72,253
Marketable Equity Securities	819		639
	$	145,921	$	154,502


The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the
Three Months Ended December 31, 2020 and 2019 (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 December 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 December 31,
	2020		2019			2020		2019
Commodity Contracts	$	45,595	$	(1,555)	Operating Revenue	$	(310)	$	7,541
Commodity Contracts	—		1,131		Purchased Gas	—		2
Foreign Currency Contracts	2,426		919		Operating Revenue	(1)		(191)
Total	$	48,021	$	495		$	(311)	$	7,352


	Common Stock			Paid In Capital		Earnings Reinvested in the Business		Accumulated Other Comprehensive Income (Loss)
	Shares	Amount
	(Thousands, except per share amounts)
Balance at October 1, 2020	90,955	$	90,955	$	1,004,158	$	991,630	$	(114,757)
Net Income Available for Common Stock						77,774
Dividends Declared on Common Stock ($0.445 Per Share)						(40,560)

Other Comprehensive Income, Net of Tax								35,016
Share-Based Payment Expense (1)				3,496

Common Stock Issued (Repurchased) Under Stock and Benefit Plans	198	198		(3,285)
Balance at December 31, 2020	91,153	$	91,153	$	1,004,369	$	1,028,844	$	(79,741)











Balance at October 1, 2019	86,315	$	86,315	$	832,264	$	1,272,601	$	(52,155)
Net Income Available for Common Stock						86,591
Dividends Declared on Common Stock ($0.435 Per Share)						(37,650)

Cumulative Effect of Adoption of Authoritative Guidance for Hedging						(950)
Other Comprehensive Loss, Net of Tax								(3,995)
Share-Based Payment Expense (1)				2,828
Common Stock Issued (Repurchased) Under Stock and Benefit Plans	237	237		(3,946)
Balance at December 31, 2019	86,552	$	86,552	$	831,146	$	1,320,592	$	(56,150)


(Thousands)	Exploration and Production	Pipeline and Storage	Gathering	Utility	Total Reportable Segments	All Other	Corporate and Intersegment Eliminations	Total Consolidated
Segment Assets:
At December 31, 2020	$1,875,697	$2,219,331	$823,415	$2,113,416	$7,031,859	$156,905	$(149,596)	$7,039,168
At September 30, 2020	$1,979,028	$2,204,971	$945,199	$2,067,852	$7,197,050	$113,571	$(345,686)	$6,964,935


	Retirement Plan				Other Post-Retirement Benefits
Three Months Ended December 31,	2020		2019		2020		2019

Service Cost	$	2,466	$	2,330	$	400	$	402
Interest Cost	5,422		7,483		2,326		3,228
Expected Return on Plan Assets	(14,537)		(15,016)		(7,241)		(7,308)
Amortization of Prior Service Cost (Credit)	158		182		(107)		(107)

Amortization of Losses	9,203		9,846		212		134
Net Amortization and Deferral for Regulatory Purposes (Including Volumetric Adjustments) (1)	3,713		1,527		6,854		6,249

Net Periodic Benefit Cost	$	6,425	$	6,352	$	2,444	$	2,598


Ceiling Testing Sensitivity to Commodity Price Changes
(Millions)	$0.25/MMBtu Decrease in Natural Gas Prices		$5.00/Bbl Decrease in Crude Oil Prices		$0.25/MMBtu Decrease in Natural Gas Prices and $5.00/Bbl Decrease in Crude Oil Prices
Calculated Impairment under Sensitivity Analysis	$	325.3	$	91.0	$	361.1
Actual Impairment Recorded at December 31, 2020	55.2		55.2		55.2
Additional Impairment	$	270.1	$	35.8	$	305.9


	Three Months Ended December 31,
(MMcf)	2020	2019	Increase (Decrease)
Firm Transportation	203,028	208,648	(5,620)
Interruptible Transportation	590	714	(124)
	203,618	209,362	(5,744)


Three Months Ended December 31,				Percent Colder (Warmer) Than
	Normal	2020	2019	Normal(1)		Prior Year(1)
Buffalo, NY	2,253	1,921	2,232	(14.7)	%	(13.9)	%
Erie, PA	2,044	1,697	1,906	(17.0)	%	(11.0)	%


Total Expenditures for Long-Lived Assets
Three Months Ended December 31,	2020			2019			Increase (Decrease)
(Millions)
Exploration and Production:
Capital Expenditures	$	81.3	(1)	$	126.9	(2)	$	(45.6)
Pipeline and Storage:
Capital Expenditures	43.7		(1)	57.1		(2)	(13.4)
Gathering:
Capital Expenditures	8.3		(1)	9.8		(2)	(1.5)
Utility:
Capital Expenditures	17.3		(1)	17.2		(2)	0.1
All Other:
Capital Expenditures	0.1			0.2			(0.1)
Eliminations	0.2			—			0.2
	$	150.9		$	211.2		$	(60.3)


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 of Shares That May Yet Be Purchased Under Share Repurchase Plans or Programs (b)
Oct. 1 - 31, 2020	13,724	$41.26	—	6,971,019
Nov. 1 - 30, 2020	18,919	$41.18	—	6,971,019
Dec. 1 - 31, 2020	91,113	$42.71	—	6,971,019
Total	123,756	$42.31	—	6,971,019


Exhibit Number						Description of Exhibit
•						National Fuel Gas Company By-Laws as amended December 11, 2020 (Exhibit 3.1, Form 8-K dated December 15, 2020)

10.1						F orm of A ward Notice for Return on Capital Performance Share s under the National Fuel Gas C ompany 2010 Equity Compensation Plan

10.2						F orm of Award Notice for Total Shareholder Return Performance Shares under the National Fuel Gas Company 2010 Equity Compe nsation Plan

10.3						Amendment to National Fuel Gas Company Deferred Compensation Plan, dated December 14, 2020

10.4						Amendment to National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan, dated December 14, 2020

10.5						Amendment to National Fuel Gas Company Tophat Plan, dated December 14, 2020

10.6						National Fuel Gas Company Non-Employee Director s Deferred Compensation Plan

•						Amendment No. 1 to 364-Day Credit Agreement, dated as of February 3, 2021, among the Company, the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent (Exhibit 10.1, Form 8-K dated February 4, 2021)

•						Amendment No. 1 to Fourth Amended and Restated Credit Agreement, dated as of February 3, 2021, among the Company, the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent (Exhibit 10.2, Form 8-K dated February 4, 2021)

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 Principal 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 December 31, 2020 and 2019.

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 three months ended December 31, 2020 and 2019, (ii) the Consolidated Statements of Comprehensive Income for the three months ended December 31, 2020 and 2019, (iii) the Consolidated Balance Sheets at December 31, 2020 and September 30, 2020, (iv) the Consolidated Statements of Cash Flows for the three months ended December 31, 2020 and 2019 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/ K. M. Camiolo
K. M. Camiolo
Treasurer and Principal Financial Officer





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


Company’s Percentile Ranking			Percentage of Target Opportunity Paid

< 45th			0%
45th			50%
60th			100%
75th			150%
100th			200%


Company’s Percentile Ranking			Percentage of Target Opportunity Paid

30th or below			0%
40th			50%
50th			100%
70th			150%
90th or above			200%