National Fuel Profit Tops Estimates, Revenue Misses; Cuts FY Guidance

(RTTNews) - Diversified energy company National Fuel Gas Co (NFG) on Thursday reported fourth-quarter net earnings of $84.7 million or $1.00 per share compared with $82.3 million or $0.97 per share last year.

Revenues for the quarter were $523.9 million compared with $550.1 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.88 per share on revenues of $576.2 million for the quarter. Analysts' estimates typically exclude special items.

For the full year 2015, the company now expects GAAP earnings of $2.65 to $2.90 per share exclusive of any ceiling test impairment charges. The previous earnings guidance had been a range of $3.05 to $3.35 per share. Analysts expect earnings of $3.01 per share.

The company's revised guidance is based on the following factors

- at its exploration and production segment, Seneca, expected production for 2015 is now a range of 155 to 190 Bcfe, from prior guidance of 180 to 220 Bcfe.

- the company is now assuming Marcellus spot pricing averages between $2.00 and $2.25 per Mcf for the remainder of the fiscal year, down $0.50 per Mcf from the previous range of $2.50 and $2.75 per Mcf

- NYMEX natural gas prices are now assumed to average $3.00 per MMBtu for the remainder of the fiscal year, down $1.00 from the previous forecast. NYMEX crude oil prices average $50.00 per Bbl for the remainder of the fiscal year, down $35.00 from the previous forecast.

Also the company cut its capital spending guidance for 2015, now expecting that to be in the range of $990 million to $1.16 billion, from prior range of $1.07 billion to $1.28 billion.

Ronald Tanski, Chief Executive Officer of National Fuel, said: "The first quarter was a very good start to our 2015 fiscal year. Our Upstream business continues to develop and highlight the quality of our Marcellus acreage. Our Midstream companies continue the build-out of gathering and transmission pipeline infrastructure in Appalachia, providing more capacity to move Marcellus supplies to market. And once again, our Utility system and employees proved reliable in the face of yet another extreme winter storm that hit our western New York service territory last November.

"Low commodity prices impacted our production for the quarter, and we expect those low prices to continue to tighten the economics of Seneca's activities in the Marcellus and California over the next 12 to 18 months. As a result, we have reduced our near-term capital spending plans, both at Seneca and in our Gathering segment. Nevertheless, we remain confident in our long-term growth plans in Appalachia, and in our strategy."