Analyst Kalei Akamine from Bank of America Securities maintained a Buy rating on National Fuel Gas Company and keeping the price target at $99.00.
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Kalei Akamine has given his Buy rating due to a combination of factors that underscore both operational stability and earnings visibility. National Fuel Gas reported first-quarter results that largely matched expectations on earnings and EBITDA, while generating stronger-than-anticipated free cash flow thanks to lower capital spending that appears to be timing-related rather than structural. At the same time, the company’s ongoing Gen 4 development program in the Utica continues to advance, with early upper Utica well results tracking slightly ahead of established expectations, suggesting incremental upside potential as more test data is collected and the productivity profile across the play is better defined.
Akamine also points to constructive regulatory and strategic developments that support the investment case. The pending acquisition of CenterPoint’s Ohio gas distribution business is progressing on schedule, and although recent regulatory decisions modestly trim allowed returns and extend amortization periods, the structure still supports earnings growth, especially when combined with robust free cash flow from the exploration and production segment that can be used to reduce leverage. In Pennsylvania, the newly filed rate case seeks a meaningful revenue increase and a supportive return on equity and capital structure, which, if approved even partially, should add to earnings over time. Taken together with a price objective above the current share price, these elements justify the continued Buy rating on National Fuel Gas shares.
Akamine covers the Energy sector, focusing on stocks such as Ovintiv, Devon Energy, and National Fuel Gas Company. According to TipRanks, Akamine has an average return of -1.4% and a 47.50% success rate on recommended stocks.