National Fuel Gas Co 10-Q for FY2021 Q2

National Fuel Gas Co (NFG)

10-Q 2021-05-07 For: 2021-03-31

Added on April 11, 2026

About this 10-Q

National Fuel Gas Co filed this 10-Q on May 7, 2021, covering the quarter ended March 31, 2021 (FY2021 Q2).

Headline figures

Quarter ended March 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $551.12M; up 12.2% from $491.1M a year earlier
Net income: $112.44M; compared with a net loss of $106.07M a year earlier
Diluted EPS: $1.23; compared with -$1.23 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 and Six Months Ended March 31, 2021 and 2020						6
b. Consolidated Statements of Comprehensive Income – Three and Six Months Ended March 31, 2021 and 2020						7
c. Consolidated Balance Sheets – March 31, 2021 and September 30, 2020						8
d. Consolidated Statements of Cash Flows – Six Months Ended March 31, 2021 and 2020						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						49
Item 4. Controls and Procedures						50

Part II. Other Information

Item 1. Legal Proceedings						50
Item 1 A. Risk Factors						50
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds						53
Item 3. Defaults Upon Senior Securities						•
Item 4. Mine Safety Disclosures						•
Item 5. Other Information						•
Item 6. Exhibits						54
Signatures						55


	Three Months Ended March 31,				Six Months Ended March 31,
(Thousands of U.S. Dollars, Except Per Common Share Amounts)	2021		2020		2021		2020
INCOME
Operating Revenues:
Utility and Energy Marketing Revenues	$	270,849	$	282,634	$	460,315	$	510,660
Exploration and Production and Other Revenues	220,281		156,542		412,316		323,735
Pipeline and Storage and Gathering Revenues	59,985		51,919		119,644		100,888
	551,115		491,095		992,275		935,283

Operating Expenses:
Purchased Gas	106,661		118,270		158,280		210,542
Operation and Maintenance:
Utility and Energy Marketing	52,058		51,725		96,944		94,981
Exploration and Production and Other	41,895		39,959		83,922		76,652
Pipeline and Storage and Gathering	28,133		27,305		56,231		53,190
Property, Franchise and Other Taxes	23,987		22,743		46,768		45,887
Depreciation, Depletion and Amortization	84,342		77,912		167,462		152,830
Impairment of Oil and Gas Producing Properties	—		177,761		76,152		177,761
	337,076		515,675		685,759		811,843
Gain on Sale of Timber Properties	—		—		51,066		—
Operating Income (Loss)	214,039		(24,580)		357,582		123,440
Other Income (Expense):

Other Income (Deductions)	(10,875)		(17,480)		(13,051)		(20,520)
Interest Expense on Long-Term Debt	(48,820)		(25,270)		(81,076)		(50,713)
Other Interest Expense	(1,698)		(1,892)		(3,618)		(3,443)
Income (Loss) Before Income Taxes	152,646		(69,222)		259,837		48,764
Income Tax Expense	40,210		36,846		69,627		68,241

Net Income (Loss) Available for Common Stock	112,436		(106,068)		190,210		(19,477)

EARNINGS REINVESTED IN THE BUSINESS
Balance at Beginning of Period	1,028,844		1,320,592		991,630		1,272,601
	1,141,280		1,214,524		1,181,840		1,253,124

Dividends on Common Stock	(40,562)		(37,654)		(81,122)		(75,304)
Cumulative Effect of Adoption of Authoritative Guidance for Hedging	—		—		—		(950)



Balance at March 31	$	1,100,718	$	1,176,870	$	1,100,718	$	1,176,870

Earnings (Loss) Per Common Share:
Basic:
Net Income (Loss) Available for Common Stock	$	1.23	$	(1.23)	$	2.09	$	(0.23)
Diluted:
Net Income (Loss) Available for Common Stock	$	1.23	$	(1.23)	$	2.08	$	(0.23)
Weighted Average Common Shares Outstanding:
Used in Basic Calculation	91,163,291		86,561,066		91,084,620		86,469,258
Used in Diluted Calculation	91,645,679		86,561,066		91,581,918		86,469,258
Dividends Per Common Share:
Dividends Declared	$	0.445	$	0.435	$	0.890	$	0.870


	Three Months Ended March 31,				Six Months Ended March 31,
(Thousands of U.S. Dollars)	2021		2020		2021		2020
Net Income (Loss) Available for Common Stock	$	112,436	$	(106,068)	$	190,210	$	(19,477)
Other Comprehensive Income (Loss), Before Tax:
Unrealized Gain (Loss) on Derivative Financial Instruments Arising During the Period	(34,373)		76,304		13,648		76,799
Reclassification Adjustment for Realized (Gains) Losses on Derivative Financial Instruments in Net Income	3,666		(25,034)		3,977		(32,386)
Cumulative Effect of Adoption of Authoritative Guidance for Hedging	—		—		—		1,313

Other Comprehensive Income (Loss), Before Tax	(30,707)		51,270		17,625		45,726
Income Tax Expense (Benefit) Related to Unrealized Gain (Loss) on Derivative Financial Instruments Arising During the Period	(9,470)		20,854		3,760		20,974
Reclassification Adjustment for Income Tax Benefit (Expense) on Realized Losses (Gains) from Derivative Financial Instruments in Net Income	1,010		(6,817)		1,096		(8,849)
Income Tax Benefit (Expense) on Cumulative Effect of Adoption of Authoritative Guidance for Hedging	—		—		—		363


Income Taxes – Net	(8,460)		14,037		4,856		12,488
Other Comprehensive Income (Loss)	(22,247)		37,233		12,769		33,238
Comprehensive Income (Loss)	$	90,189	$	(68,835)	$	202,979	$	13,761


	March 31, 2021		September 30, 2020
(Thousands of U.S. Dollars)
ASSETS
Property, Plant and Equipment	$	12,648,604	$	12,351,852
Less - Accumulated Depreciation, Depletion and Amortization	6,572,534		6,353,785
	6,076,070		5,998,067
Assets Held for Sale, Net	—		53,424
Current Assets
Cash and Temporary Cash Investments	80,467		20,541

Receivables – Net of Allowance for Uncollectible Accounts of $30,128 and $22,810, Respectively	229,479		143,583
Unbilled Revenue	32,685		17,302
Gas Stored Underground	5,745		33,338
Materials, Supplies and Emission Allowances	52,212		51,877
Unrecovered Purchased Gas Costs	479		—
Other Current Assets	56,117		47,557
	457,184		314,198

Other Assets
Recoverable Future Taxes	117,300		118,310
Unamortized Debt Expense	11,443		12,297
Other Regulatory Assets	147,099		156,106
Deferred Charges	60,454		67,131
Other Investments	147,421		154,502
Goodwill	5,476		5,476
Prepaid Post-Retirement Benefit Costs	89,101		76,035
Fair Value of Derivative Financial Instruments	4,104		9,308
Other	—		81
	582,398		599,246

Total Assets	$	7,115,652	$	6,964,935


	Six Months Ended March 31, 2021				Six Months Ended March 31, 2020
	Balance at October 1, 2020		Balance at March 31, 2021		Balance at October 1, 2019		Balance at March 31, 2020

Cash and Temporary Cash Investments	$	20,541	$	80,467	$	20,428	$	111,655
Hedging Collateral Deposits	—		—		6,832		10,728
Cash, Cash Equivalents, and Restricted Cash	$	20,541	$	80,467	$	27,260	$	122,383


	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
Six Months Ended March 31, 2021
Allowance for Uncollectible Accounts	$	22,810	$	11,074	$	737	$	4,493	$	30,128


	At March 31, 2021		At September 30, 2020

Materials and Supplies - at average cost	$	33,532	$	33,859
Emission Allowances	18,680		18,018
	$	52,212	$	51,877


	March 31, 2021		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 – 91,163,797 Shares and 90,954,696 Shares, Respectively	$	91,164	$	90,955
Paid in Capital	1,009,075		1,004,158
Earnings Reinvested in the Business	1,100,718		991,630
Accumulated Other Comprehensive Loss	(101,988)		(114,757)
Total Comprehensive Shareholders’ Equity	2,098,969		1,971,986
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs	2,627,033		2,629,576
Total Capitalization	4,726,002		4,601,562

Current and Accrued Liabilities
Notes Payable to Banks and Commercial Paper	—		30,000

Accounts Payable	107,305		134,126
Amounts Payable to Customers	19,768		10,788
Dividends Payable	40,562		40,475
Interest Payable on Long-Term Debt	17,663		27,521
Customer Advances	—		15,319
Customer Security Deposits	19,503		17,199
Other Accruals and Current Liabilities	176,940		140,176
Fair Value of Derivative Financial Instruments	21,231		43,969
	402,972		459,573

Deferred Credits
Deferred Income Taxes	763,441		696,054
Taxes Refundable to Customers	355,375		357,508

Cost of Removal Regulatory Liability	237,867		230,079
Other Regulatory Liabilities	177,685		161,573
Pension and Other Post-Retirement Liabilities	118,804		127,181
Asset Retirement Obligations	192,127		192,228
Other Deferred Credits	141,379		139,177
	1,986,678		1,903,800
Commitments and Contingencies (Note 8)	—		—


	At March 31, 2021		At September 30, 2020

Accrued Capital Expenditures	$	49,526	$	33,344
Regulatory Liabilities	34,832		44,890
Reserve for Gas Replacement	21,432		—
Liability for Royalty and Working Interests	22,475		15,665




Non-Qualified Benefit Plan Liability	14,460		14,460
Other	34,215		31,817
	$	176,940	$	140,176


Recurring Fair Value Measures	At fair value as of March 31, 2021
(Thousands of Dollars)	Level 1		Level 2		Level 3		Netting Adjustments(1)		Total(1)
Assets:
Cash Equivalents – Money Market Mutual Funds	$	66,759	$	—	$	—	$	—	$	66,759
Derivative Financial Instruments:

Over the Counter Swaps – Gas and Oil	—		18,805		—		(14,768)		4,037
Over the Counter No Cost Collars – Gas	—		—		—		(118)		(118)
Foreign Currency Contracts	—		1,437		—		(1,252)		185
Other Investments:
Balanced Equity Mutual Fund	32,993		—		—		—		32,993
Fixed Income Mutual Fund	70,133		—		—		—		70,133
Common Stock – Financial Services Industry	988		—		—		—		988


Total	$	170,873	$	20,242	$	—	$	(16,138)	$	174,977

Liabilities:
Derivative Financial Instruments:

Over the Counter Swaps – Gas and Oil	—		35,809		—		(14,768)		21,041
Over the Counter No Cost Collars – Gas	—		1,488		—		(118)		1,370
Foreign Currency Contracts	—		72		—		(1,252)		(1,180)
Total	$	—	$	37,369	$	—	$	(16,138)	$	21,231

Total Net Assets/(Liabilities)	$	170,873	$	(17,127)	$	—	$	—	$	153,746


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 March 31, 2021
Balance at January 1, 2021	$	10,151	$	(89,892)	$	(79,741)
Other Comprehensive Gains and Losses Before Reclassifications	(24,903)		—		(24,903)
Amounts Reclassified From Other Comprehensive Income (Loss)	2,656		—		2,656
Balance at March 31, 2021	$	(12,096)	$	(89,892)	$	(101,988)
Six Months Ended March 31, 2021
Balance at October 1, 2020	$	(24,865)	$	(89,892)	$	(114,757)
Other Comprehensive Gains and Losses Before Reclassifications	9,888		—		9,888
Amounts Reclassified From Other Comprehensive Income (Loss)	2,881		—		2,881

Balance at March 31, 2021	$	(12,096)	$	(89,892)	$	(101,988)
Three Months Ended March 31, 2020
Balance at January 1, 2020	$	30,680	$	(86,830)	$	(56,150)
Other Comprehensive Gains and Losses Before Reclassifications	55,450		—		55,450
Amounts Reclassified From Other Comprehensive Income (Loss)	(18,217)		—		(18,217)

Balance at March 31, 2020	$	67,913	$	(86,830)	$	(18,917)
Six Months Ended March 31, 2020
Balance at October 1, 2019	$	34,675	$	(86,830)	$	(52,155)
Other Comprehensive Gains and Losses Before Reclassifications	55,825		—		55,825
Amounts Reclassified From Other Comprehensive Income (Loss)	(23,537)		—		(23,537)
Cumulative Effect of Adoption of Authoritative Guidance for Hedging	950		—		950


Balance at March 31, 2020	$	67,913	$	(86,830)	$	(18,917)


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,
	2021	2020	2021	2020
Gains (Losses) on Derivative Financial Instrument Cash Flow Hedges:
Commodity Contracts	($3,761)	$23,396	($4,071)	$30,937	Operating Revenues
Commodity Contracts	—	1,909	—	1,911	Purchased Gas
Foreign Currency Contracts	95	(271)	94	(462)	Operating Revenues
	(3,666)	25,034	(3,977)	32,386	Total Before Income Tax
	1,010	(6,817)	1,096	(8,849)	Income Tax Expense
	($2,656)	$18,217	($2,881)	$23,537	Net of Tax


	At March 31, 2021		At September 30, 2020

Prepayments	$	7,692	$	12,851
Prepaid Property and Other Taxes	23,373		14,269

State Income Taxes Receivable	—		3,828

Regulatory Assets	25,052		16,609
	$	56,117	$	47,557


Quarter Ended March 31, 2021 (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	$	188,769	$	—	$	—	$	—	$	—	$	—	$	188,769
Production of Crude Oil	33,589		—		—		—		—		—		33,589
Natural Gas Processing	772		—		—		—		—		—		772
Natural Gas Gathering Service	—		—		50,262		—		—		(49,591)		671
Natural Gas Transportation Service	—		64,648		—		39,514		—		(18,187)		85,975
Natural Gas Storage Service	—		21,231		—		—		—		(9,108)		12,123
Natural Gas Residential Sales	—		—		—		203,768		—		—		203,768
Natural Gas Commercial Sales	—		—		—		28,872		—		—		28,872
Natural Gas Industrial Sales	—		—		—		1,368		—		—		1,368
Natural Gas Marketing	—		—		—		—		66		(1)		65
Other	818		825		—		(4,519)		(1)		(97)		(2,974)
Total Revenues from Contracts with Customers	223,948		86,704		50,262		269,003		65		(76,984)		552,998
Alternative Revenue Programs	—		—		—		1,878		—		—		1,878
Derivative Financial Instruments	(3,761)		—		—		—		—		—		(3,761)
Total Revenues	$	220,187	$	86,704	$	50,262	$	270,881	$	65	$	(76,984)	$	551,115


Six Months Ended March 31, 2021 (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	$	355,212	$	—	$	—	$	—	$	—	$	—	$	355,212
Production of Crude Oil	58,088		—		—		—		—		—		58,088
Natural Gas Processing	1,324		—		—		—		—		—		1,324
Natural Gas Gathering Service	—		—		97,270		—		—		(96,249)		1,021
Natural Gas Transportation Service	—		129,473		—		68,535		—		(37,777)		160,231
Natural Gas Storage Service	—		41,748		—		—		—		(17,871)		23,877
Natural Gas Residential Sales	—		—		—		341,649		—		—		341,649
Natural Gas Commercial Sales	—		—		—		46,067		—		—		46,067
Natural Gas Industrial Sales	—		—		—		2,290		—		—		2,290
Natural Gas Marketing	—		—		—		—		650		(20)		630
Other	1,029		3,248		—		(6,131)		545		(205)		(1,514)
Total Revenues from Contracts with Customers	415,653		174,469		97,270		452,410		1,195		(152,122)		988,875
Alternative Revenue Programs	—		—		—		7,471		—		—		7,471
Derivative Financial Instruments	(4,071)		—		—		—		—		—		(4,071)
Total Revenues	$	411,582	$	174,469	$	97,270	$	459,881	$	1,195	$	(152,122)	$	992,275


Quarter Ended March 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	$	100,777	$	—	$	—	$	—	$	—	$	—	$	100,777
Production of Crude Oil	30,268		—		—		—		—		—		30,268
Natural Gas Processing	714		—		—		—		—		—		714
Natural Gas Gathering Service	—		—		35,267		—		—		(35,267)		—
Natural Gas Transportation Service	—		58,454		—		39,832		—		(21,976)		76,310
Natural Gas Storage Service	—		20,524		—		—		—		(9,087)		11,437
Natural Gas Residential Sales	—		—		—		185,323		—		—		185,323
Natural Gas Commercial Sales	—		—		—		27,296		—		—		27,296
Natural Gas Industrial Sales	—		—		—		1,144		—		—		1,144
Natural Gas Marketing	—		—		—		—		36,404		(79)		36,325
Other	405		267		—		(3,524)		851		(65)		(2,066)
Total Revenues from Contracts with Customers	132,164		79,245		35,267		250,071		37,255		(66,474)		467,528
Alternative Revenue Programs	—		—		—		4,422		—		—		4,422
Derivative Financial Instruments	23,396		—		—		—		(4,251)		—		19,145
Total Revenues	$	155,560	$	79,245	$	35,267	$	254,493	$	33,004	$	(66,474)	$	491,095


Six Months Ended March 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	$	220,651	$	—	$	—	$	—	$	—	$	—	$	220,651
Production of Crude Oil	67,931		—		—		—		—		—		67,931
Natural Gas Processing	1,402		—		—		—		—		—		1,402
Natural Gas Gathering Service	—		—		70,055		—		—		(70,055)		—
Natural Gas Transportation Service	—		111,906		—		72,640		—		(38,963)		145,583
Natural Gas Storage Service	—		38,950		—		—		—		(17,079)		21,871
Natural Gas Residential Sales	—		—		—		329,693		—		—		329,693
Natural Gas Commercial Sales	—		—		—		46,137		—		—		46,137
Natural Gas Industrial Sales	—		—		—		2,413		—		—		2,413
Natural Gas Marketing	—		—		—		—		70,513		(256)		70,257
Other	578		609		—		(6,848)		1,971		(118)		(3,808)
Total Revenues from Contracts with Customers	290,562		151,465		70,055		444,035		72,484		(126,471)		902,130
Alternative Revenue Programs	—		—		—		7,283		—		—		7,283
Derivative Financial Instruments	30,937		—		—		—		(5,067)		—		25,870
Total Revenues	$	321,499	$	151,465	$	70,055	$	451,318	$	67,417	$	(126,471)	$	935,283


	March 31, 2021				September 30, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-Term Debt	$	2,627,033	$	2,869,081	$	2,629,576	$	2,778,556


	At March 31, 2021		At September 30, 2020

Life Insurance Contracts	$	43,307	$	41,992
Equity Mutual Fund	32,993		39,618
Fixed Income Mutual Fund	70,133		72,253
Marketable Equity Securities	988		639
	$	147,421	$	154,502


The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the
Three Months Ended March 31, 2021 and 2020 (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,
	2021		2020			2021		2020
Commodity Contracts	$	(35,123)	$	81,108	Operating Revenue	$	(3,761)	$	23,396
Commodity Contracts	—		(134)		Purchased Gas	—		1,909
Foreign Currency Contracts	750		(4,670)		Operating Revenue	95		(271)
Total	$	(34,373)	$	76,304		$	(3,666)	$	25,034


The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the
Six Months Ended March 31, 2021 and 2020 (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,
	2021		2020			2021		2020
Commodity Contracts	$	10,472	$	79,553	Operating Revenue	$	(4,071)	$	30,937
Commodity Contracts	—		997		Purchased Gas	—		1,911
Foreign Currency Contracts	3,176		(3,751)		Operating Revenue	94		(462)
Total	$	13,648	$	76,799		$	(3,977)	$	32,386


	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, 2021	91,153	$	91,153	$	1,004,369	$	1,028,844	$	(79,741)
Net Income Available for Common Stock						112,436
Dividends Declared on Common Stock ($0.445 Per Share)						(40,562)

Other Comprehensive Loss, Net of Tax								(22,247)
Share-Based Payment Expense (1)				4,283

Common Stock Issued Under Stock and Benefit Plans	11	11		423
Balance at March 31, 2021	91,164	$	91,164	$	1,009,075	$	1,100,718	$	(101,988)

Balance at October 1, 2020	90,955	$	90,955	$	1,004,158	$	991,630	$	(114,757)
Net Income Available for Common Stock						190,210
Dividends Declared on Common Stock ($0.89 Per Share)						(81,122)

Other Comprehensive Income, Net of Tax								12,769
Share-Based Payment Expense (1)				7,779

Common Stock Issued (Repurchased) Under Stock and Benefit Plans	209	209		(2,862)
Balance at March 31, 2021	91,164	$	91,164	$	1,009,075	$	1,100,718	$	(101,988)

Balance at January 1, 2020	86,552	$	86,552	$	831,146	$	1,320,592	$	(56,150)
Net Income (Loss) Available for Common Stock						(106,068)
Dividends Declared on Common Stock ($0.435 Per Share)						(37,654)


Other Comprehensive Income, Net of Tax								37,233
Share-Based Payment Expense (1)				3,876
Common Stock Issued Under Stock and Benefit Plans	10	10		422
Balance at March 31, 2020	86,562	$	86,562	$	835,444	$	1,176,870	$	(18,917)

Balance at October 1, 2019	86,315	$	86,315	$	832,264	$	1,272,601	$	(52,155)
Net Income (Loss) Available for Common Stock						(19,477)
Dividends Declared on Common Stock ($0.87 Per Share)						(75,304)
Cumulative Effect of Adoption of Authoritative Guidance for Hedging						(950)


Other Comprehensive Income, Net of Tax								33,238
Share-Based Payment Expense (1)				6,704
Common Stock Issued (Repurchased) Under Stock and Benefit Plans	247	247		(3,524)
Balance at March 31, 2020	86,562	$	86,562	$	835,444	$	1,176,870	$	(18,917)


(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, 2021	$2,023,147	$2,240,140	$855,507	$2,151,304	$7,270,098	$27,391	$(181,837)	$7,115,652
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 March 31,	2021		2020		2021		2020

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)	7,710		5,519		9,451		8,846

Net Periodic Benefit Cost	$	10,422	$	10,344	$	5,041	$	5,195


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
Excess of Ceiling over Book Value under Sensitivity Analysis	$	—	$	114.0	$	—
Calculated Impairment under Sensitivity Analysis	$	123.6	$	—	$	154.9


	Three Months Ended March 31,			Six Months Ended March 31,
(MMcf)	2021	2020	Increase (Decrease)	2021	2020	Increase (Decrease)
Firm Transportation	209,496	195,799	13,697	412,524	404,447	8,077
Interruptible Transportation	435	531	(96)	1,024	1,244	(220)
	209,931	196,330	13,601	413,548	405,691	7,857


Three Months Ended March 31,				Percent Colder (Warmer) Than
	Normal	2021	2020	Normal(1)		Prior Year(1)
Buffalo, NY	3,290	2,978	2,738	(9.5)	%	8.8	%
Erie, PA	3,108	2,750	2,555	(11.5)	%	7.6	%
Six Months Ended March 31,
Buffalo, NY	5,543	4,899	4,970	(11.6)	%	(1.4)	%
Erie, PA	5,152	4,447	4,461	(13.7)	%	(0.3)	%


Total Expenditures for Long-Lived Assets
Six Months Ended March 31,	2021			2020			Increase (Decrease)
(Millions)
Exploration and Production:
Capital Expenditures	$	169.6	(1)	$	229.3	(2)	$	(59.7)
Pipeline and Storage:
Capital Expenditures	91.7		(1)	82.7		(2)	9.0
Gathering:
Capital Expenditures	19.4		(1)	24.9		(2)	(5.5)
Utility:
Capital Expenditures	41.8		(1)	36.6		(2)	5.2
All Other:
Capital Expenditures	0.1			0.4			(0.3)
Eliminations	(0.2)			—			(0.2)
	$	322.4		$	373.9		$	(51.5)


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)
Jan. 1 - 31, 2021	13,642	$43.62	—	6,971,019
Feb. 1 - 28, 2021	13,461	$43.19	—	6,971,019
Mar. 1 - 31, 2021	11,848	$48.31	—	6,971,019
Total	38,951	$44.90	—	6,971,019


Exhibit Number						Description of Exhibit
•						Certificate of Amendment of Restated Certificate of Incorporation, as amended, of National Fuel Gas Company (Exhibit 3.1, Form 8-K dated March 16, 2021)

•						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)

•						Officer's Certificate establishing 2.95% Notes due 2031, dated February 24, 2021 (Exhibit 4.1.1, Form 8-K dated February 24, 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 March 31, 2021 and 2020.

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 and six months ended March 31, 2021 and 2020, (ii) the Consolidated Statements of Comprehensive Income for the three and six months ended March 31, 2021 and 2020, (iii) the Consolidated Balance Sheets at March 31, 2021 and September 30, 2020, (iv) the Consolidated Statements of Cash Flows for the six months ended March 31, 2021 and 2020 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.