High natural gas prices mean big profits for National Fuel | NFG Message Board Posts


National Fuel Gas Company

  NFG website

NFG   /  Message Board  /  Read Message

 

 






Keyword
Subject
Between
and
Rec'd By
Authored By
Minimum Recs
  
Previous Message  Next Message    Post Message    Post a Reply return to message boardtop of board
Msg  283 of 296  at  11/5/2022 12:58:29 AM  by

jerrykrause


High natural gas prices mean big profits for National Fuel

    
 
 American City Business Journals
 Buffalo Business First 
 

High natural gas prices mean big profits for National Fuel

 By Reporter, Buffalo Business First
 
 

National Fuel Gas Co. profits have climbed 55% in 12 months as natural gas prices soared.

Over the last fiscal year, which ended Sept. 30, the Williamsville company completed the construction of more than 30 miles of pipeline in Pennsylvania, increased natural gas production in Appalachia by 8% and sold properties in California for more than $241 million, allowing it to focus on its core business in New York and Pennsylvania, President and CEO David Bauer told investors in an earnings call Friday.

"All of these great accomplishments positioned the company very well for the future," he said.

National Fuel (NYSE: NFG) reported $566 million in profits this year.

 

The company's operations are divided into three sectors.

First is its natural gas drilling operation in the Marcellus Shale and Utica Shale gas fields. This was responsible for more than half of the company's profits this year.

Second is its natural gas transportation and storage infrastructure.

The third is National Fuel's business is its role as a utility, delivering natural gas directly to customers in Pennsylvania and New York.

Bauer said he expects growth in all three sectors to continue, though he cautioned that growth is likely to slow in the year ahead.

Natural gas prices are dipping, and that decline is expected to continue. Like many businesses, National Fuel is contending with higher operating costs due to inflation and a tight labor market.

The company will probably raise utility rates over the next few years due to those inflationary pressures, he said.

Due to this year's high natural gas prices, National Fuel is predicting the highest winter heating bills since 2009.

This month, most commercial National Fuel customers in New York will pay between $8.97 and $9.92 per million cubic feet of natural gas, up 14% from last November and 45% from November 2021.

During the earnings call, Bauer also criticized a New York state proposal that calls for a massive and rapid reduction in natural gas usage.

"We all know the affordability, resilience and reliability of natural gas are unmatched by any other form of energy today," he said.

A draft plan released by the state's Climate Action Committee calls for an almost-immediate ban on the construction of new natural gas lines in buildings, along with a more gradual switch from gas to electric in existing structures.

 

Bauer said existing renewable energy sources are not equipped to handle a change at that scale.

"The gap between aspirations and reality is truly remarkable," he said. "National Fuel continues to advocate on behalf of our customers for a more reasonable approach."



     e-mail to a friend      printer-friendly     add to library      
|  
Recs: 2  
   Views: 0 []
Previous Message  Next Message    Post Message    Post a Reply return to message boardtop of board




Financial Market Data provided by
.
Loading...