A month has gone by since the last earnings report for National Fuel Gas (NFG). Shares have lost about 7.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is National Fuel Gas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
National Fuel Gas Q2 Earnings Lag Estimates, Revenues Increase Y/Y
National Fuel Gas Company reported second-quarter fiscal 2026 adjusted operating earnings of $2.71 per share, which missed the Zacks Consensus Estimate of $2.85 by 4.91%. The bottom line increased 13.39% from the year-ago quarter’s reported figure of $2.39.
GAAP earnings for the quarter were $2.59 per share, up 9.28% from $2.37 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was primarily due to costs related to the pending Ohio gas utility acquisition and the impact of equity issuance due to Ohio acquisitions.
NFG’s Total Revenues
NFG reported sales of $858.4 million, which beat the Zacks Consensus Estimate of $830 million by 3.41%. The top line increased 17.59% from the prior-year recorded figure of $730 million.
NFG’s Segmental Revenues
Utility: Revenues totaled $425.8 million, up 23.93% from $343.6 million in the year-ago quarter.
Integrated upstream and Gathering and Other: Revenues totaled $358.8 million, up 13.84% from $315.19 million in the year-ago quarter.
Pipeline and Storage: Revenues amounted to $73.8 million, reflecting a 3.62% increase from $71.2 million recorded in the year-ago quarter.
Highlights of NFG’s Q2 Release
Total operating expenses were $511.2 million, up 23.88% from $412.7 million in the year-ago quarter.
Operating income totaled $347.1 million, up 9.42% from $317.3 million in the year-ago quarter.
Interest expense on long-term debt totaled $30.08 million, down 24.15% from $39.7 million in the year-ago quarter.
During the fiscal second quarter, Seneca produced 102 billion cubic feet (Bcf) of natural gas, reflecting a decrease of 3.5 Bcf or 3%, from the prior-year level. The year-over-year decline in production volumes resulted from weather-related completion delays and a decrease in the natural output from producing gas wells.
NFG’s Q2 Financial Highlights
As of March 31, 2026, National Fuel Gas had cash and temporary cash investments of $26.6 million compared with $43.2 million as of Sept. 30, 2025.
Net cash provided by operating activities for the first six months of fiscal 2026 totaled $657.3 million compared with $473.9 million in the previous year quarter.
Capital expenditures were $498.3 million in the first six months of fiscal 2026 compared with $434.3 million in the year-ago period.
NFG’s Guidance
National Fuel Gas reiterated guidance for adjusted earnings per share for fiscal 2026 between $7.45 and $7.75 per share. The Zacks Consensus Estimate for fiscal 2026 is currently pegged at $7.79.
The company expects capital expenditure for fiscal 2026 to be in the $955-$1,065 million range.
Production for fiscal 2026 is expected to be in the range of 425-440 Bcf, down from the previous production guidance of 440-455 Bcf.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, National Fuel Gas has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.
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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, National Fuel Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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National Fuel Gas Company (NFG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).