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National Fuel Gas' (NFG) Q2 Earnings Beat, FY21 EPS View Up

Zacks Equity Research
·4 min read

National Fuel Gas Company NFG posted second-quarter fiscal 2021 adjusted operating earnings of $1.34 per share, which beat the Zacks Consensus Estimate of $1.22 by 9.8%. Earnings also improved 38.1% from the year-ago figure of 97 cents per share.

GAAP earnings for the reported quarter were $1.23 per share against the loss of $1.23 in the year-ago period.

Total Revenues

Total revenues of $551.1 million missed the Zacks Consensus Estimate of $605 million by 8.9%. The top line, however, improved 12.2% from the prior-year figure of $491.1 million. The year-over-year rise was primarily on higher contribution from the company’s exploration and production and other along with pipeline and storage and gathering segments.

National Fuel Gas Company Price, Consensus and EPS Surprise

National Fuel Gas Company Price, Consensus and EPS Surprise
National Fuel Gas Company Price, Consensus and EPS Surprise

National Fuel Gas Company price-consensus-eps-surprise-chart | National Fuel Gas Company Quote

Highlights of the Release

Total operating expenses for the reported quarter decreased 34.6% from the year-ago level to $337.1 million.

The Exploration and Production segment’s net production of 85.2 billions of cubic feet equivalent (Bcfe) reflected an increase of 25.5 Bcfe or 43% from the prior year.

For the reported quarter, average realized price of natural gas was $2.28 per thousand cubic feet, up 16 cents from the previous year. Average realized price of oil was $57.11 per barrel, down by $1.12 from the last-year level.

The company incurred interest expenses of $48.8 million, up 93.2% from the year-ago figure.

The company targets greenhouse gas emission reduction for its delivery system by 75% by 2030 and 90% by 2050 from the 1990 base levels.

Financial Highlights

As of Mar 31, 2021, National Fuel Gas had cash and temporary cash investments of $80.5 million compared with $20.5 million on Sep 30, 2020.

Long-term debt (excluding current maturities) was $2,627 million as of Mar 31, 2021 compared with the Sep 30, 2020 level of $2,629.6 million.

The company’s net cash provided by operating activities in the first six months of fiscal 2021 was $417.1 million, up from $391 million recorded in the year-ago period.

Total capital expenditure for second-quarter fiscal 2021 was $171.5 million, up from $162.6 million in the year-ago period.

Guidance

National Fuel Gas revised its fiscal 2021 earnings guidance to the range of $3.85-$4.05 from the prior expectation of $3.65-$3.95. The mid-point of the new guidance is $3.95, higher than the Zacks Consensus Estimate of $3.87.

The company reiterated its fiscal 2021 capex guidance in the $720-$830 million range.

It updated its fiscal 2021 production to the 315-330 Bcfe band from the previous projection of 310-335 Bcfe.

Zacks Rank

Currently, National Fuel Gas has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

ONE Gas Inc. OGS reported first-quarter 2021 earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.78 by 0.6%.

Sempra Energy’s SRE first-quarter 2021 adjusted earnings per share came in at $2.95, surpassing the Zacks Consensus Estimate of $2.77 by 6.5%.

Atmos Energy Corporation ATO posted second-quarter fiscal 2021 earnings of $2.30 per share, which surpassed the Zacks Consensus Estimate of $2.05 by 12.2%.

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Sempra Energy (SRE) : Free Stock Analysis Report

National Fuel Gas Company (NFG) : Free Stock Analysis Report

Atmos Energy Corporation (ATO) : Free Stock Analysis Report

ONE Gas, Inc. (OGS) : Free Stock Analysis Report

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