National Fuel Gas (NFG) reported mixed results for fiscal 2026, with adjusted earnings rising 9% to $7.55 per share but forecasting a decline in fiscal 2027 due to lower natural gas prices and flat production. The company's fourth-quarter adjusted earnings were $1.22 per share, unchanged from the prior year. President and CEO Dave Bauer attributed the full-year growth to higher earnings but cautioned that fiscal 2027 earnings are expected to drop to $6 to $6.40 per share, primarily due to a $0.80 decline in natural gas prices.
The company's upstream business, Seneca Resources, faced production setbacks in fiscal 2026, including underperforming wells in Pennsylvania and below-expectation results in the Upper Utica region. Seneca produced 419.5 billion cubic feet of natural gas, slightly below its revised guidance. Despite these challenges, Seneca's integrated upstream and gathering business generated over $1 billion in EBITDA and increased its reserve base to 5.2 trillion cubic feet equivalent.
National Fuel is proceeding with plans to separate into two publicly traded companies, with the new entity operating under the Seneca Resources name. The company aims to complete the spin-off in the second half of calendar 2027. Additionally, National Fuel is advancing several pipeline and storage projects, including the Tioga Pathway and Shippingport Lateral, which were placed in service and are expected to add approximately $30 million in combined annual revenue.
For fiscal 2027, National Fuel expects total capital spending to rise approximately 10% from the prior year, with $350 million to $400 million allocated for its utility and $600 million to $640 million for integrated upstream and gathering. The company also projects $50 million to $100 million in discretionary land spending, which could be reduced if commodity prices remain depressed.