National Fuel Gas Q3 adjusted EPS falls, lowers 2026 outlook

Overview

• US natural gas utility's fiscal Q3 adjusted EPS fell yr/yr to $1.54

• Company revised fiscal 2026 adjusted EPS guidance downward to $7.40-$7.60

• Board approved 4% dividend increase to $2.22 annual rate

Outlook

• National Fuel revises FY 2026 adjusted EPS guidance to $7.40-$7.60, down from $7.45-$7.75

• Company raises FY 2026 Pipeline and Storage capex guidance to $235-$265 mln, citing faster project execution

• National Fuel expects 7%-10% average annual EPS growth through FY 2029

Result Drivers

• LOWER PRODUCTION VOLUMES - Integrated Upstream and Gathering segment earnings fell as lower natural gas production volumes outweighed higher realized prices and lower interest expense

• HIGHER OPERATING COSTS - Increased lease operating and depreciation expenses contributed to higher per-unit operating costs in the Integrated Upstream and Gathering segment

• INCREASED CUSTOMER MARGIN - Utility segment earnings rose due to higher customer margin from new rates in New York and system improvement charges in Pennsylvania

Company press release: ID:nGNX1qkqLq

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the natural gas utilities peer group is "buy"

• Wall Street's median 12-month price target for National Fuel Gas Co is $110.00, about 35.9% above its July 29 closing price of $80.94

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)