National Fuel Reports Fourth Quarter and Full Year Fiscal 2026 Earnings

National Fuel posts strong annual growth, completes major utility acquisition, and plans business separation.

What the company is saying

National Fuel Gas Company reports fiscal 2026 GAAP earnings per share of $7.02, up from $5.68 in 2025, and adjusted earnings per share of $7.55, a 9% increase from $6.91. The company highlights net cash from operating activities of $1,272 million and free cash flow of $199 million for the year. Management, led by President and CEO David P. Bauer, frames the year as 'excellent,' citing growth in adjusted EPS, robust free cash flow, and a 56th consecutive dividend increase to $2.22 per share. The company emphasizes the completed acquisition of CenterPoint Energy's Ohio natural gas utility, which doubled its Utility rate base and added about 335,000 customers. National Fuel also announces a plan to separate its Integrated Upstream and Gathering (IUG) business into a standalone public company, expected to be named Seneca Resources, with the transaction targeted for the second half of 2027. The release stresses continued regulatory wins, including a $10.4 million rate increase in Pennsylvania and project milestones in its Pipeline & Storage segment.

What the data suggests

Fiscal 2026 financials show clear improvement: GAAP EPS rose to $7.02 from $5.68, and adjusted EPS climbed 9% to $7.55 from $6.91. Net cash from operating activities reached $1,272 million, and free cash flow was $199 million. The fourth quarter saw GAAP earnings of $97.5 million ($1.02 per share), down from $107.3 million ($1.18 per share) the prior year, but adjusted EPS held steady at $1.22. The dividend was increased for the 56th consecutive year, now at $2.22 per share. The acquisition of CenterPoint Energy's Ohio utility, completed October 1, 2026, doubled the Utility rate base and expanded the customer base by 335,000. The IUG segment delivered Q4 GAAP earnings of $115.4 million and adjusted EBITDA of $240.9 million, with Seneca producing 104 Bcf of natural gas at a realized price of $2.80 per Mcf. Seneca's proved reserves increased 4% to 5,191 Bcfe. For fiscal 2027, the company guides for adjusted EPS of $6.00–$6.40, assuming a $2.85/MMBtu NYMEX gas price, with sensitivities provided for different price scenarios. Capital expenditures for Utility and Pipeline & Storage are projected at $490–$580 million, and IUG capex at $600–$640 million plus up to $100 million in discretionary land spending. The planned IUG separation would leave National Fuel as a fully rate-regulated gas company with a $5 billion rate base.

Analysis

The announcement is largely grounded in realised, measurable progress, with detailed disclosure of GAAP and adjusted earnings, cash flow, free cash flow, and segment-level profitability. The acquisition of CenterPoint Energy's Ohio utility is completed and quantified, and the dividend increase is both realised and specific. While there are forward-looking elements—such as the planned separation of the IUG business and 2027 guidance—these are clearly delineated as future plans and do not dominate the release. The capital intensity flag is true due to the large completed acquisition and significant capex guidance, but these are paired with immediate or near-term earnings and operational impacts. The tone is positive but proportionate to the evidence, with no exaggerated claims or unsupported projections. The data supports a strong_positive signal, as both growth and profitability metrics are disclosed and improving.

Risk flags

• ●Execution risk surrounds the planned separation of the Integrated Upstream and Gathering business, which is not expected until the second half of 2027; regulatory, market, or operational delays could impact timing or structure.
• ●The company’s fiscal 2027 earnings guidance is sensitive to natural gas prices, with adjusted EPS potentially ranging from $5.60 to $7.25 depending on NYMEX pricing; commodity price volatility could materially affect results.
• ●Large capital expenditure plans—$490–$580 million for Utility and Pipeline & Storage, $600–$640 million for IUG, plus up to $100 million in discretionary land spending—will require disciplined execution to avoid cost overruns or underperformance.
• ●Integration risk from the recent Ohio utility acquisition could affect near-term Utility segment performance, especially as the company doubles its rate base and absorbs 335,000 new customers.
• ●The company’s dividend growth streak (now at 56 consecutive increases) creates ongoing pressure to maintain strong cash flow and profitability, which may be challenged if market or operational headwinds emerge.

Bottom line

National Fuel delivered strong annual earnings growth, robust cash generation, and a record of consistent dividend increases, underpinned by the completed acquisition of a major Ohio utility asset. The company’s guidance for fiscal 2027 is solid but highly sensitive to natural gas prices, and large capital outlays are planned across all segments. The planned separation of the IUG business, targeted for late 2027, offers a potential value catalyst but introduces execution and regulatory risk. Investors should focus on the integration of the Ohio acquisition, delivery of capex projects, and progress toward the IUG spin-off. The most important takeaway is that National Fuel is executing on both near-term operational growth and long-term strategic restructuring, but the full value of these moves will depend on successful execution over the next 12–18 months.

Announcement summary

(NYSE:NFG) National Fuel Gas Company reported consolidated results for the fourth quarter and fiscal year ended September 30, 2026. Fourth quarter GAAP earnings were $97.5 million, or $1.02 per share, compared to $107.3 million, or $1.18 per share, in the prior year. Adjusted earnings per share for the quarter were $1.22, unchanged from the prior year. For fiscal 2026, GAAP earnings per share were $7.02, up from $5.68 in fiscal 2025, while adjusted earnings per share were $7.55, a 9% increase from $6.91 in fiscal 2025. Net cash provided by operating activities for the twelve months ended September 30, 2026 was $1,272 million, with free cash flow of $199 million. The company announced its 56th consecutive dividend increase to an annual rate of $2.22 per share. On October 1, 2026, National Fuel completed the acquisition of CenterPoint Energy's Ohio natural gas utility, doubling its Utility rate base and adding approximately 335,000 utility customers. The company announced a plan to separate its Integrated Upstream and Gathering (IUG) business into a standalone publicly traded company, expected to be named Seneca Resources, with the transaction anticipated in the second half of calendar 2027. The Utility segment received approval for a System Modernization Tracker in New York and a $10.4 million rate increase in Pennsylvania. The Pipeline & Storage segment placed the Tioga Pathway and Shippingport Lateral projects in service on November 1, 2026. IUG initiated a discretionary land acquisition program in Tioga County, adding significant acreage. For the fourth quarter, IUG segment GAAP earnings were $115,439,000, with adjusted EBITDA of $240,933,000. Seneca’s weighted average realized natural gas price was $2.80 per Mcf, up $0.19 per Mcf, or 7%, from the prior year. Seneca produced 104 Bcf of natural gas in the quarter, a decrease of 7.5 Bcf, or 7%, from the prior year. Per unit total operating costs for IUG were $1.39 per Mcf, up $0.12 from the prior year. Seneca’s total proved reserves at September 30, 2026 were 5,191 Bcfe, an increase of 209 Bcfe, or 4%, from the prior year, with proved developed reserves of 3,707 Bcfe, representing 71% of total proved reserves. The Pipeline and Storage segment’s fourth quarter GAAP earnings were $26,239,000, with adjusted EBITDA of $61,486,000. The Utility segment’s fourth quarter GAAP earnings were $(15,058,000), with adjusted EBITDA of $3,449,000. For fiscal 2027, the company is initiating adjusted earnings per share guidance in the range of $6.00 to $6.40, assuming an average NYMEX natural gas price of $2.85 per MMBtu. Sensitivities to adjusted EPS guidance include: at $2.50/MMBtu, $5.60–$6.00; at $3.00/MMBtu, $6.20–$6.60; at $3.50/MMBtu, $6.85–$7.25. Combined Utility and Pipeline & Storage segment capital expenditures for fiscal 2027 are expected to range between $490 and $580 million. IUG expects fiscal 2027 production of 400 to 435 Bcf and capital expenditures of $600 to $640 million, including $25 to $30 million for third-party gathering expansions and non-operated wells, with potential for an additional $50 to $100 million of discretionary land spending. Following the planned separation, National Fuel will be a fully rate-regulated natural gas company with approximately $5 billion of rate base. The separation is expected to be completed in the second half of calendar 2027 through a pro rata distribution of at least 80.1% of IUG shares to National Fuel shareholders, with National Fuel retaining up to a 19.9% ownership interest in IUG, which it intends to dispose of in a tax-efficient manner.

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