Q3 2024 National Fuel Gas Co Earnings Call Transcript
Key Points
- National Fuel Gas Co (NFG) reported a strong return on capital and visibility to significant growth in earnings and free cash flow.
- The company initiated preliminary guidance for fiscal 2025 of $5.75 to $6.25 per share, a nearly 20% increase over fiscal 2024.
- NFG expects compound annual consolidated earnings growth of better than 10% for at least the next three years.
- The company has a long-standing commitment to returning an increasing amount of capital to shareholders, including a recent $0.08 or 4% increase in its dividend.
- NFG's hedge book delivered a $75 million gain during the quarter, mitigating the impact of lower natural gas prices.
- NFG reported a GAAP loss of $54 million or $0.59 per share for the third quarter, primarily due to a noncash full cost ceiling test impairment charge.
- Natural gas prices have been volatile, and the company may face additional impairments if prices remain low.
- The company had to curtail nearly 6 Bcf of production during the quarter due to low pricing.
- NFG's fiscal 2024 earnings projection has been updated to a range of $5 to $5.10 per share, reflecting the impact of third-quarter price-related curtailments.
- The company expects to add incremental leverage to support its dividend and buyback program, which may modestly exceed free cash flow through the end of fiscal 2025.
Good morning. My name is Brianna, and I will be your conference operator today. At this time, I would like to welcome everyone to the National Fuel Gas Company third quarter fiscal 2024 earnings conference call. Please note that this call is being recorded. (Operator Instructions)
I will now turn the call over to Natalie Fischer, Director of Investor Relations. You may begin your conference.
Thank you, Brianna, and good morning. We appreciate you joining us on today's conference call for a discussion of last evening's earnings release. With us on the call from National Fuel Gas Company are Dave Bauer, our President and Chief Executive Officer; Tim Silverstein, Treasurer and Principal Financial Officer; and Justin Loweth, President of Seneca Resources and National Fuel Midstream.
At the end of today's prepared remarks, we will open the discussion to questions. The third quarter fiscal 2024 earnings release and July investor presentation have been posted on our Investor
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