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National Fuel Gas (NFG)
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National Fuel Gas Company (NFG) AI Stock Analysis

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NFG

National Fuel Gas Company

(NYSE:NFG)

Rating:77Outperform
Price Target:
$100.00
▲(14.44% Upside)
National Fuel Gas Company scores well due to strong financial performance and a positive earnings call, highlighting production growth and strategic projects. Technical indicators support a bullish trend, although the high P/E ratio suggests potential overvaluation. The dividend yield adds value, but the pause in the share buyback program and potential cost increases are concerns.
Positive Factors
Earnings
The company's adjusted earnings per share exceeded expectations due to lower operating and maintenance costs and higher non-service pension and post-retirement benefits.
Financial Performance
National Fuel Gas updated its earnings guidance for 2025 higher, driven by increased production and reduced expenses.
Production Guidance
NFG raised its 2025 production guidance by approximately 2%, indicating stronger future output.
Negative Factors
Buyback Strategy
The buyback pace has slowed as the company seeks more flexibility amidst current macroeconomic uncertainties.
Market Comparison
Given the company’s relatively lower leverage to natural gas prices, it is seen as a disadvantage when compared to similar natural gas companies.
Revenue Impact
New rates approved by FERC are expected to result in a modest decline in revenue, reducing it by $500,000 annually.

National Fuel Gas Company (NFG) vs. SPDR S&P 500 ETF (SPY)

National Fuel Gas Company Business Overview & Revenue Model

Company DescriptionNational Fuel Gas Company operates as a diversified energy company. It operates through four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment explores for, develops, and produces natural gas and oil in California and in the Appalachian region of the United States. As of September 30, 2021, it had proved developed and undeveloped reserves of 21,537 thousand barrels of oil and 3,723,433 million cubic feet of natural gas. The Pipeline and Storage segment provides interstate natural gas transportation and storage services through an integrated gas pipeline system in Pennsylvania and New York; and owns and operates underground natural gas storage fields. This segment also transports natural gas for National Fuel Gas Distribution Corporation, as well as for other utilities, industrial companies, and power producers in New York State; and owns and operates the Empire Pipeline. The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region, as well as provides gathering services to Seneca Resources Company, LLC. The Utility segment sells natural gas or provides natural gas transportation services to approximately 753,000 customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania. The company markets gas to industrial, wholesale, commercial, public authority, and residential customers primarily in western and central New York, and northwestern Pennsylvania. As of September 30, 2021, the company also owned approximately 95,000 acres of timber property; and managed approximately 2,500 additional acres of timber cutting rights. National Fuel Gas Company was incorporated in 1902 and is headquartered in Williamsville, New York.
How the Company Makes MoneyNational Fuel Gas Company generates revenue primarily through three main segments: utility operations, pipeline and storage operations, and exploration and production. The utility segment earns revenue by providing natural gas distribution services to customers, charging them for the gas consumed as well as service fees. The pipeline and storage segment generates revenue through transportation and storage services, often based on long-term contracts with customers. The exploration and production segment contributes by selling natural gas extracted from its fields, with revenue dependent on market prices for natural gas. Additionally, NFG may have partnerships with other energy companies that can enhance its operational efficiency and market reach, further bolstering its revenue streams.

National Fuel Gas Company Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q3-2025)
|
% Change Since: 0.68%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong production growth, operational efficiency, pipeline expansion, and a positive outlook for fiscal 2026. However, challenges such as a paused buyback program and increased operating costs were noted. Overall, the positive aspects significantly outweigh the challenges.
Q3-2025 Updates
Positive Updates
Strong Production Growth
Seneca's Eastern development area production increased by 16% from the previous year, with full-year production expected to rise by approximately 8% compared to fiscal 2024.
Operational Efficiency
Seneca expects further improvements in capital efficiency, with a projected 6% production increase while spending 4% less capital in fiscal 2026.
Pipeline Expansion Opportunities
The Shippingport Lateral Project and Tioga Pathway project are expected to generate over $30 million in new revenue annually, representing about 7% of current pipeline and storage segment revenues.
Dividend Increase
The company raised its dividend for the 55th consecutive year to an annual rate of $2.14 per share.
Earnings and Revenue Growth
Adjusted operating results increased by 66% compared to last year, with fiscal 2025 earnings guidance adjusted to $6.80 to $6.95 per share.
Positive Fiscal 2026 Outlook
Preliminary guidance suggests a 20% increase in earnings per share at a $4 NYMEX price, supported by a strong hedge book and operational efficiencies.
Negative Updates
Paused Buyback Program
National Fuel Gas Company paused its buyback program to preserve balance sheet flexibility for growth projects, which may disappoint some investors.
Decreased Gathering Revenues
A slight decrease in gathering revenues is expected in fiscal 2026 due to a development program including a single 6-well Tioga Utica pad flowing through a third-party system.
Increased Operating Costs
Utility O&M costs are expected to increase by approximately 5% due to factors such as customer receivables in arrears and collective bargaining agreements.
Company Guidance
During the National Fuel Gas Company Q3 Fiscal 2025 earnings call, several key metrics and guidance updates were discussed. The company reported a 66% increase in adjusted operating results compared to the previous year, driven by higher natural gas prices and lower operating costs. For fiscal 2025, earnings guidance was narrowed to $6.80 to $6.95 per share, with full-year production expected to increase by approximately 8% from fiscal 2024. Looking ahead to fiscal 2026, the company provided preliminary guidance, projecting a 20% increase in earnings per share at a $4 gas price, with production guidance set between 440 to 455 Bcf, reflecting a 6% increase at the midpoint. Capital expenditures for fiscal 2026 are forecasted to decrease by 4%, and the company anticipates generating $350 million to $400 million in free cash flow at $4 NYMEX. Additionally, National Fuel plans to continue investing in system modernization, with mid-single-digit rate base growth expected over the next several years, supported by significant pipeline expansion opportunities, such as the Shippingport Lateral Project and the Tioga Pathway project.

National Fuel Gas Company Financial Statement Overview

Summary
National Fuel Gas Company demonstrates solid financial health with strong revenue growth and improved profitability. The balance sheet reflects a stable leverage position, while cash flow generation is notably strong. Continued focus on operational efficiencies and asset utilization could further enhance financial performance.
Income Statement
78
Positive
National Fuel Gas Company shows strong revenue growth with a 5.42% increase in TTM, supported by a solid gross profit margin of 50.44%. The net profit margin improved to 11.17%, indicating enhanced profitability. However, the EBIT margin of 21.63% and EBITDA margin of 47.09% suggest room for operational efficiency improvements.
Balance Sheet
72
Positive
The company's debt-to-equity ratio of 0.92 reflects a reasonable leverage position, showing improvement from previous years. Return on equity at 8.59% indicates moderate profitability for shareholders. The equity ratio of 35.21% suggests a stable capital structure, though there's potential for optimizing asset utilization.
Cash Flow
85
Very Positive
The cash flow statement is robust, with a significant free cash flow growth rate of 165.41% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.19 and free cash flow to net income ratio of 0.18 highlight effective cash management, despite some volatility in free cash flow growth historically.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.18B1.94B2.17B2.19B1.74B1.55B
Gross Profit1.10B817.70M847.85M902.96M759.72M567.70M
EBITDA1.03B691.71M1.18B1.19B970.13M325.73M
Net Income243.54M77.51M476.87M566.02M363.65M-123.77M
Balance Sheet
Total Assets8.45B8.32B8.28B7.90B7.46B6.96B
Cash, Cash Equivalents and Short-Term Investments39.32M38.22M55.45M46.05M31.53M20.54M
Total Debt2.74B2.78B2.67B2.69B2.79B2.66B
Total Liabilities5.47B5.47B5.32B5.82B5.68B4.99B
Stockholders Equity2.98B2.85B2.96B2.08B1.79B1.97B
Cash Flow
Free Cash Flow185.87M134.72M227.21M695.00K39.82M-481.60M
Operating Cash Flow1.06B1.07B1.24B812.52M791.55M740.81M
Investing Cash Flow-866.30M-933.90M-1.11B-518.70M-633.22M-1.22B
Financing Cash Flow-236.02M-149.28M-207.00M-276.24M-58.74M476.09M

National Fuel Gas Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price87.38
Price Trends
50DMA
85.83
Positive
100DMA
82.51
Positive
200DMA
74.48
Positive
Market Momentum
MACD
0.30
Positive
RSI
53.81
Neutral
STOCH
52.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NFG, the sentiment is Positive. The current price of 87.38 is above the 20-day moving average (MA) of 87.16, above the 50-day MA of 85.83, and above the 200-day MA of 74.48, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 52.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NFG.

National Fuel Gas Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$53.17B20.014.83%6.74%-6.31%-33.87%
77
Outperform
$7.78B32.238.00%2.39%19.59%-21.86%
75
Outperform
$4.08B11.9917.09%3.41%30.25%170.05%
73
Outperform
$18.41B6.1715.94%20.06%-7.51%-29.04%
72
Outperform
$61.07B7.8819.22%8.78%1.19%-7.87%
72
Outperform
$12.64B10.0710.88%4.28%
65
Neutral
$14.81B7.143.01%5.53%4.29%-62.49%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NFG
National Fuel Gas Company
87.38
30.19
52.79%
EC
Ecopetrol SA
8.90
-0.31
-3.37%
E
Eni SPA
35.45
4.30
13.80%
EQNR
Equinor ASA
24.97
-0.18
-0.72%
TGS
Transportadora De Gas Sa Ord B
28.13
10.19
56.80%
YPF
YPF Sociedad Anonima
31.67
10.60
50.31%

National Fuel Gas Company Corporate Events

Business Operations and StrategyFinancial Disclosures
National Fuel Gas Updates Investor Presentation
Neutral
Jul 30, 2025

On July 30, 2025, National Fuel Gas Company updated its Investor Presentation, highlighting the use of non-GAAP financial measures to provide investors with an alternative method for assessing the company’s performance. The release also discussed various factors that could impact future results, such as regulatory changes, economic conditions, and operational challenges, emphasizing the uncertainty in achieving projected outcomes.

The most recent analyst rating on (NFG) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on National Fuel Gas Company stock, see the NFG Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
National Fuel Gas Signs Consulting Agreement with DeCarolis
Neutral
Jun 18, 2025

On June 13, 2025, National Fuel Gas Company entered into a Consulting Services Agreement with Donna L. DeCarolis, who will retire on July 1, 2025, and continue as a consultant until July 1, 2028. The agreement ensures her involvement in New York State energy policy matters and provides her a consulting fee of $15,000 per month, while Michael D. Colpoys will succeed her as President of National Fuel Gas Distribution Corporation.

The most recent analyst rating on (NFG) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on National Fuel Gas Company stock, see the NFG Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 11, 2025