National Fuel Gas (NFG) Beats on Q4 Earnings, Ups 2021 View

Zacks Equity Research
·3 min read

National Fuel Gas Company NFG posted fourth-quarter fiscal 2020 operating earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 34 cents by 17.7%. However, earnings declined 25.9% from the year-ago figure of 54 cents per share.

Total Revenues

Total revenues of $288 million missed the Zacks Consensus Estimate of $337 million by 14.5%. The top line also dropped 1.7% from the prior-year figure of $293 million.

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 costs for the reported quarter (excluding the impairment expenses) decreased 0.4% from the year-ago level to $208.5 million.

Exploration and Production segment’s net production of 67.3 billions of cubic feet equivalent (Bcfe) reflected an increase of 8.2 Bcfe or 14% from the prior year, primarily due to the acquisition of Appalachian assets.

It incurred interest expenses of $32.1 million, up 25.4% from the year-ago figure.

Total natural gas and crude oil reserves as of Sep 30, 2020 were 3,458 Bcfe, reflecting an increase of 359 Bcfe or 12% from Sep 30, 2019.

Financial Highlights

As of Sep 30, 2020, National Fuel Gas had cash and cash equivalents were $20.5 million compared with $20.4 million on Sep 30, 2019.

Long-term debt (excluding current maturities) was $2,629.6 million as of Sep 30, 2020 compared with the Sep 30, 2019 level of $2,133.7 million.

The company’s cash flow from operating activities for fiscal 2020 was $740.8 million, up from $694.5 million recorded in the comparable year-ago period.

Total capital expenditure for fiscal 2020 was $716.1 million, down from $788.9 million in the comparable year-ago period.

Guidance

National Fuel Gas revised its fiscal 2021 earnings guidance to the range of $3.55-$3.85 from the prior expectation of $3.40-$3.70. The mid-point of the new guidance is $3.70, which is higher than the Zacks Consensus Estimate of $3.67.

National Fuel Gas increased its fiscal 2021 capital expenditure guidance to the range of $720-$830 million from the earlier expectation of $660-$770 million.

Fiscal 2021 production is expected in the range of 305-335 Bcfe.

Zacks Rank

Currently, National Fuel Gas has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

Sempra Energy’s SRE third-quarter 2020 adjusted earnings per share  came in at $1.31, which missed the Zacks Consensus Estimate of $1.47 by 10.9%.

MDU Resources Group Inc. MDU reported third-quarter 2020 operating earnings of 76 cents per share, which increased 11.8% from the year-ago level.

ONE Gas Inc. OGS reported third-quarter 2020 earnings of 39 cents per share, which beat the Zacks Consensus Estimate of 36 cents by 8.3%.

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