A month has gone by since the last earnings report for National Fuel Gas (NFG). Shares have added about 0.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is National Fuel Gas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
National Fuel Gas Q3 Earnings Top Estimates, Revenues Increase Y/Y
National Fuel Gas Company reported third-quarter fiscal 2025 adjusted operating earnings of $1.64 per share, which surpassed the Zacks Consensus Estimate of $1.50 by 9.3%. The bottom line also increased 65.7% from the year-ago quarter’s reported figure of 99 cents.
GAAP earnings for the quarter were $1.64 per share against a loss of 59 cents in the year-ago quarter.
NFG’s Total Revenues
NFG reported sales of $531.8 million, which missed the Zacks Consensus Estimate of $617 million by 13.8%. However, the top line increased 27.4% from the prior-year recorded figure of $417.4 million.
NFG’s Segmental Revenues
Utility: Revenues totaled $157.4 million, up 26.1% from $124.8 million in the year-ago quarter.
Exploration and Production and Other: Revenues totaled $303.9 million, up 37.6% from $220.9 million in the year-ago quarter.
Pipeline and Storage and Gathering: Revenues amounted to $70.5 million, reflecting a 1.7% decrease from $71.7 million recorded in the year-ago quarter.
Highlights of NFG’s Q3 Release
Total operating expenses decreased 35.7% year over year to $301.6 million.
Operating income totaled $230.3 million against an operating loss of $51.4 million in the year-ago quarter.
Interest expense on long-term debt totaled $34.3 million, up 4.3% from the year-ago figure of $32.9 million.
During the fiscal third quarter, Seneca produced 112 billion cubic feet (Bcf) of natural gas, reflecting an increase of 15 Bcf, or 16%, from the prior-year level. Two highly prolific Utica pads turned in line this year in the EDA’s Tioga County were the main drivers behind this increase in production.
NFG’s Financial Highlights
As of June 30, 2025, National Fuel Gas had cash and temporary cash investments of $39.3 million compared with $38.2 million as of Sept. 30, 2024.
Net cash provided by operating activities for the first nine months of fiscal 2025 totaled $862.3 million compared with $868 million in the year-ago period.
Capital expenditures amounted to $627.3 million in the first nine months of fiscal 2025 compared with $684.2 million in the year-ago period.
NFG’s Guidance
NFG has revised its guidance for fiscal 2025 adjusted earnings per share to $6.80-$6.95 from $6.75-$7.05. This updated range incorporates third-quarter results as well as lower expected realized natural gas prices for the remaining three months, largely offset by expected higher production and lower unit costs in the Exploration and Production segment. The Zacks Consensus Estimate is pegged at $6.80, which is the lower end of the company’s revised guided range.
The company now expects capital expenditure for fiscal 2025 to be in the $890-$955 million band compared with the earlier projection of $885-$960 million.
Production for fiscal 2025 is now expected to be in the range of 420-425 Bcf compared with the previous estimate of 415-425 Bcf.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a upward path over the past two months.
VGM Scores
At this time, National Fuel Gas has a nice Growth Score of B, a score with the same score on the momentum front. Following the exact same course, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
National Fuel Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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National Fuel Gas Company (NFG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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