A month has gone by since the last earnings report for National Fuel Gas (NFG). Shares have added about 6% in that time frame, outperforming the S&P 500.
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 the latest earnings report in order to get a better handle on the important catalysts.
National Fuel Gas Q1 Earnings Beat Estimates, Gas Production Up
National Fuel Gas Company reported first-quarter fiscal 2026 adjusted operating earnings of $2.06 per share, which beat the Zacks Consensus Estimate of $1.91 by 7.85%. The bottom line also increased 24.1% from the year-ago quarter’s reported figure of $1.66.
GAAP earnings for the quarter were $1.98 per share, up 304.1% from 49 cents in the year-ago quarter.
NFG’s Total Revenues
NFG reported sales of $651.5 million, which beat the Zacks Consensus Estimate of $647 million by 0.7%. The top line also increased 18.6% from the prior-year recorded figure of $549.5 million.
The year-over-year increase in revenues was due to strong contributions from all segments.
NFG’s Segmental Revenues
Utility: Revenues totaled $259.05 million, up 13.4% from $228.4 million in the year-ago quarter.
Integrated upstream and Gathering and Other: Revenues totaled $323.2 million, up 28.1% from $252.4 million in the year-ago quarter.
Pipeline and Storage: Revenues amounted to $69.2 million, reflecting a 0.6% increase from $68.8 million recorded in the year-ago quarter.
Highlights of NFG’s Q1 Release
Total operating expenses were $375.4 million, down 18.9% from $463.3 million in the year-ago quarter.
Operating income totaled $276.1 million, up 220.3% from $86.2 million in the year-ago quarter.
Interest expense on long-term debt totaled $33.5 million compared with $33.4 million in the year-ago quarter.
During the fiscal first quarter, Seneca produced 109 billion cubic feet (Bcf) of natural gas, reflecting an increase of 11 Bcf, or 12%, from the prior-year level. The year-over-year increase in production volumes was due to new Utica pads turned in line in Tioga County.
NFG’s Q1 Financial Highlights
As of Dec. 31, 2025, National Fuel Gas had cash and temporary cash investments of $271.4 million compared with $43.2 million as of Sept. 30, 2025.
Net cash provided by operating activities for first-quarter fiscal 2026 totaled $274.9 million compared with $220.1 million in the previous year quarter.
NFG’s Guidance
National Fuel Gas reiterated guidance for adjusted earnings per share for fiscal 2026 between $7.60 and $8.10. The acquisition of CenterPoint Energy’s Ohio natural gas utility business is expected to close in fourth-quarter fiscal 2026 and is not anticipated to affect fiscal 2026 guidance.
The company expects capital expenditure for fiscal 2026 to be in the $0.96-$1.07 billion range.
Production for fiscal 2026 is expected to be in the range of 440-455 Bcf.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 20.66% due to these changes.
VGM Scores
Currently, National Fuel Gas has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
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
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, National Fuel Gas has a Zacks Rank #4 (Sell). We expect a below average 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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