National Fuel Gas Company NFG reported third-quarter fiscal 2026 adjusted earnings of $1.54 per share, which beat the Zacks Consensus Estimate of $1.47 by 4.8%. However, earnings declined 6.1% from $1.64 in the year-ago quarter.
GAAP earnings for the reported quarter were $1.45 per share compared with $1.64 in the year-ago quarter.
NFG’s Total Revenues
NFG reported sales of $537.5 million, which missed the consensus estimate of $564 million by 4.7%. However, the top line increased 1.1% from the prior-year recorded figure of $531.8 million.
National Fuel Gas Company Price, Consensus and EPS Surprise
National Fuel Gas Company price-consensus-eps-surprise-chart | National Fuel Gas Company Quote
NFG's Revenue Mix Shows Uneven Trends
Utility: Revenues totaled $165.42 million, up 5.1% from $157.45 million in the year-ago quarter.
Integrated Upstream and Gathering: Revenues totaled $302.52 million, down 1.3% from $306.4 million in the year-ago quarter. Lower natural gas production more than offset the benefits of improved realized pricing, gathering revenues and other operating revenues.
Pipeline and Storage: Revenues amounted to $69.56 million, up 2.3% from $67.98 million recorded in the year-ago quarter, supported by higher transportation revenues from new long-term contracts.
NFG’s Higher Costs and Lower Production Weigh on Results
Total operating expenses increased 8.9% year over year to $328.6 million. Operation and maintenance expenses rose across all three operating segments, with the sharpest increase in the Integrated Upstream and Gathering.
Operating income totaled $208.9 million, down 9.3% from $230.3 million in the year-ago quarter.
Interest expense on long-term debt totaled $33.2 million, down 3.4% from $34.3 million in the year-ago period.
Seneca produced 104.3 billion cubic feet of natural gas during the reported quarter, down 7% from the prior-year period. Production from recently completed wells was insufficient to offset natural declines from existing wells.
NFG's Balance Sheet and Cash Flow
As of June 30, 2026, National Fuel Gas had cash and temporary cash investments of $1.24 billion compared with $43.2 million as of Sept. 30, 2025.
Net cash provided by operating activities totaled $1.03 billion for the first nine months of fiscal 2026, up 20% year over year.
For the first nine months of fiscal 2026, ended June 30 capital expenditures rose 21.9 % year over year to $764.5 million.
The company completed the financing needed for its $2.62-billion acquisition of CenterPoint Energy's Ohio natural gas utility and received final regulatory approval. The transaction remains on track to close Oct. 1, 2026.
National Fuel also increased its annual dividend rate by 4% to $2.22 per share. The company has now paid dividends for 124 consecutive years and raised its annual dividend for 56 straight years.
NFG Revises 2026 Outlook
National Fuel Gas lowered its fiscal 2026 adjusted earnings guidance to $7.40-$7.60 per share from $7.45-$7.75. The Zacks Consensus Estimate for fiscal 2026 is currently pegged at $7.66.
Production guidance was cut to 420-430 Bcf from 425-440 Bcf. The company cited ongoing appraisal work and greater-than-expected well interactions associated with more intensive completion design testing.
Consolidated capital expenditure guidance was raised to $1-$1.08 billion from $955 million to $1.07 billion.
Pipeline and Storage spending is now projected at $235-$265 million, while Integrated Upstream and Gathering expenditures are expected between $580 million and $605 million, excluding discretionary land purchases.
NFG’s Zacks Rank
National Fuel Gas currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
ONE Gas, Inc. OGS is slated to report second-quarter 2026 results on Aug. 4, after market close. The Zacks Consensus Estimate for earnings is pegged at 65 cents per share, which suggests a year-over-year increase of 22.64%
OGS’ long-term (three to five years) earnings growth rate is 6.23%. The Zacks Consensus Estimate for second-quarter sales is pinned at $440.21 million, which suggests a year-over-year increase of 3.89%.
Atmos Energy Corporation ATO is slated to report third-quarter fiscal 2026 results on Aug. 5, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.34 per share, which suggests a year-over-year increase of 15.52%
ATO’s long-term earnings growth rate is 6.82%. The Zacks Consensus Estimate for third-quarter fiscal sales is pinned at $1.04 billion, which suggests a year-over-year improvement of 23.73%.
Occidental Petroleum OXY is slated to report second-quarter 2026 results on Aug. 5, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.96 per share, which suggests a year-over-year increase of 402.56%
OXY’s long-term earnings growth rate is 12.73%. The Zacks Consensus Estimate for second-quarter sales is pinned at $7.18 billion, which suggests a year-over-year increase of 11.16%.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
National Fuel Gas Company (NFG): Free Stock Analysis Report
Occidental Petroleum Corporation (OXY): Free Stock Analysis Report
Atmos Energy Corporation (ATO): Free Stock Analysis Report
ONE Gas, Inc. (OGS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).