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UBS Houston Energy Conference – National Fuel Gas Co.

National Fuel Gas Co. · Aug 10, 2011 · 49 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. UBS Houston Energy Conference – National Fuel Gas Co. – slide 1
    UBS Houston Energy Conference August 10, 2011
  2. UBS Houston Energy Conference – National Fuel Gas Co. – slide 2
    National Fuel Gas Company Business Segment Reporting Publicly Traded National Fuel Gas Company Holding Company NYSE symbol - NFG Reporting Exploration & Pipeline & Energy Utility Segments Production Storage Marketing Seneca…
  3. UBS Houston Energy Conference – National Fuel Gas Co. – slide 3
    44 UBS Houston Energy Conference August 10, 2011
  4. UBS Houston Energy Conference – National Fuel Gas Co. – slide 4
    55 UBS Houston Energy Conference August 10, 2011
  5. UBS Houston Energy Conference – National Fuel Gas Co. – slide 5
    66 UBS Houston Energy Conference August 10, 2011
  6. UBS Houston Energy Conference – National Fuel Gas Co. – slide 6
    National Fuel Gas Company Net Income from Continuing Operations Excluding Items Impacting Comparability (1) 300 266.3 P&S 219.1 30.7 MM 210.5 13.8% 200 146.6 E&P ( Millions) 98.0 112.5 Utility 121.0 MM 62.6 MM 54.5% 100…
  7. UBS Houston Energy Conference – National Fuel Gas Co. – slide 7
    National Fuel Gas Company Capital Expenditures(1) from Continuing Operations Utility Pipeline & Storage Exploration & Production All Other 1,250 970-1,110 Capital Expenditures ( Millions) 1,000 770-885 750 785-875 501 500…
  8. UBS Houston Energy Conference – National Fuel Gas Co. – slide 8
    National Fuel Gas Company Capital Structure Long-Term Long-Term Debt Shareholders Debt Shareholders 36% Equity 36% Equity 64% 64% 2.900 Billion(1) Forecasted Capital at June 30, 2011 Structure(2) at September 30, 2011…
  9. UBS Houston Energy Conference – National Fuel Gas Co. – slide 9
    Exploration & Production Seneca Resources Corporation 10 UBS Houston Energy Conference August 10, 2011
  10. UBS Houston Energy Conference – National Fuel Gas Co. – slide 10
    Exploration & Production Fiscal Year End Proved Reserves(1) East Appalachia 600 Natural Gas Proved Reserves (Bcf) Reserves: 333 Bcfe (48%) 428 400 226 249 200 0 2008 2009 2010 At September 30 Oil Proved Reserves…
  11. UBS Houston Energy Conference – National Fuel Gas Co. – slide 11
    Exploration & Production Historical Daily Production 250 West Upper Devonian Gulf Marcellus 200 Daily Production (Mmcfe/d) 150 100 50 - 12 UBS Houston Energy Conference August 10, 2011
  12. UBS Houston Energy Conference – National Fuel Gas Co. – slide 12
    Exploration & Production Capital Expenditures by Region 1,000 West Upper Devonian Gulf of Mexico Marcellus 785-875 Capital Expenditures ( Millions) 750 600-655 500 398 740-820 560-600 250 192 188 332 64 71 61 68 63…
  13. UBS Houston Energy Conference – National Fuel Gas Co. – slide 13
    Exploration & Production Annual Production by Region 100 West Upper Devonian Gulf of Mexico Marcellus 87-101 Marcellus production in 80 Fiscal 2012 could equal 68-71 Production (Bcfe) the entire company production in Fiscal…
  14. UBS Houston Energy Conference – National Fuel Gas Co. – slide 14
    Exploration & Production California 15 UBS Houston Energy Conference August 10, 2011
  15. UBS Houston Energy Conference – National Fuel Gas Co. – slide 15
    Senecas California Properties North Lost Hills 1,235 BOEPD South Lost Hills Tulare & Etchegoin Formation 1,800 BOEPD Primary & Steamflood Monterey Shale 181 Active Wells Primary 216 Active Wells North Midway Sunset 4,050 BOEPD…
  16. UBS Houston Energy Conference – National Fuel Gas Co. – slide 16
    California Average Daily Production 10,000 Modest capital spending 9,500 to maintain production Pursue additional bolt-on 9,000 acquisitions BOE/Day 8,500 2012 Plans: CapEx - 45-55 MM 8,000 Expect modest production growth…
  17. UBS Houston Energy Conference – National Fuel Gas Co. – slide 17
    California Fiscal Year 2011 Sespe Field Development Plans First drilling for Seneca at Sespe since 1991 Will drill six wells during this fiscal year Wells to be drilled at 10-acre spacing: 4 wells Test wells to be drilled at…
  18. UBS Houston Energy Conference – National Fuel Gas Co. – slide 18
    Exploration & Production East Division 19 UBS Houston Energy Conference August 10, 2011
  19. UBS Houston Energy Conference – National Fuel Gas Co. – slide 19
    East Division Average Daily Production 150 Upper Devonian Marcellus Average Daily Production (MMcfe/Day) 125 100 Rapid growth in the East 75 Division as Marcellus is ramping up 50 25 0 20 UBS Houston Energy…
  20. UBS Houston Energy Conference – National Fuel Gas Co. – slide 20
    Marcellus Shale Senecas Pennsylvania Acreage Seneca Resource Acreage Position 745,000 Net Acres in the heart of the PA Marcellus fairway Risked Resource Potential: 8-15 TCFE 80% Fee Seneca owns the minerals No lease expiration…
  21. UBS Houston Energy Conference – National Fuel Gas Co. – slide 21
    Marcellus Shale Senecas Development Areas Eastern Development Area (Mostly Leased) Western Development Area (Mostly Fee and HBP) SRC Fee Acreage SRC Lease Acreage 22 UBS Houston Energy Conference August 10, 2011
  22. UBS Houston Energy Conference – National Fuel Gas Co. – slide 22
    Marcellus Shale Eastern Development Area Tioga/Lycoming/Potter Covington Area Full Development 55,000 Acres 47 Wells Drilled; 39 Producing Wells Potential: 2 Tcf Gross Production: 120 MMCFD All planned wells have been drilled…
  23. UBS Houston Energy Conference – National Fuel Gas Co. – slide 23
    Marcellus Shale Eastern Development Area Typecurve 6.7 Bcfe EUR 12.0 EDA Average Daily Production Rate 6.7 Bcf Typecurve (40 Year Life) 10.0 1st Segment Daily Production Rate (MMcf) IP Rate 5,400 MMcf/d Compression Segment…
  24. UBS Houston Energy Conference – National Fuel Gas Co. – slide 24
    Marcellus Shale Western Development Area - Activity SRC Fee Acreage Approx. Outline of JV Acreage 200,000 Gross Acres SRC Lease Acreage Mt. Jewett Area Seneca 50% W.I. (Avg. 58% NRI) SRC Contributed JV Acreage Seneca Operated 1 Rig…
  25. UBS Houston Energy Conference – National Fuel Gas Co. – slide 25
    Marcellus Shale Target Zone Example Important to Find Ideal Target Must account for the variable rock quality and geomechanical profile Major factor in quality of Fracture Stimulation Marcellus Interval Optimal Target…
  26. UBS Houston Energy Conference – National Fuel Gas Co. – slide 26
    Marcellus Shale Centralized Water System Recovering water discharged from an abandoned coal mine which was adversely impacting a local trout stream Authorized by SRBC to withdraw approximately 500,000 gallons per day of mine…
  27. UBS Houston Energy Conference – National Fuel Gas Co. – slide 27
    Utica Shale Seneca Acreage Source rock maturation status based on combined CAI to Ro regression equation. (Trenton-Black River Research Consortium, 2006) 28 UBS Houston Energy Conference August 10, 2011
  28. UBS Houston Energy Conference – National Fuel Gas Co. – slide 28
    Seneca Resources Vertical Well Permit Mt. Jewett Area Horizontal Well Permit Spud Date: April 2011 Seneca Resources Henderson Area Planned Spud Date: Aug 2011 Seneca Resources Tionesta Area Planned Spud Date: 2012…
  29. UBS Houston Energy Conference – National Fuel Gas Co. – slide 29
    Pipeline & Storage / Midstream National Fuel Gas Supply Corporation Empire Pipeline, Inc. National Fuel Gas Midstream Corporation 30 UBS Houston Energy Conference August 10, 2011
  30. UBS Houston Energy Conference – National Fuel Gas Co. – slide 30
    PIPELINE & STORAGE / MIDSTREAM EXPANSION INITIATIVES NORTHERN ACCESS EXPANSION TIOGA COUNTY EXTENSION CENTRAL TIOGA LAMONT COUNTY COMPRESSOR EXTENSION STATION PHASE I & II COVINGTON GATHERING SYSTEM TROUT RUN…
  31. UBS Houston Energy Conference – National Fuel Gas Co. – slide 31
    Midstream Corporation Trout Run Gathering System Lycoming County Capacity: 466,000 Dth/d Will Interconnect with Transco Pipelines in Lycoming County Seneca Resources will be the anchor shipper Estimated In-Service: Q2 FY2012…
  32. UBS Houston Energy Conference – National Fuel Gas Co. – slide 32
    National Fuel Gas Company 2012 EPS Guidance & Sensitivity NFG & Subsidiaries On August 4, 2011, the Company Fiscal 2012 updated its fiscal 2012 earnings Preliminary Earnings per Share (Diluted) Guidance(1) guidance utilizing flat…
  33. UBS Houston Energy Conference – National Fuel Gas Co. – slide 33
    National Fuel Gas Company Seneca Oil and Gas Hedge Positions Natural Gas Volume Average Volume Average Swaps (Bcf) Hedge Price Oil Swaps (MMBbl) Hedge Price Fiscal 2011 10.6 5.77 / Mcf Fiscal 2011 0.4 70.93 / Bbl Fiscal 2012 35.0…
  34. UBS Houston Energy Conference – National Fuel Gas Co. – slide 34
    National Fuel Gas Company Key Takeaways High-Quality Marcellus Acreage Position 745,000 net acres with a resource potential of 8-15 Tcfe Fee ownership results in superior economics Rapid Growth: 0 150 MMCFD in 24 months Balanced…
  35. UBS Houston Energy Conference – National Fuel Gas Co. – slide 35
    36 UBS Houston Energy Conference August 10, 2011
  36. UBS Houston Energy Conference – National Fuel Gas Co. – slide 36
    National Fuel Gas Company Corporate & Financial Highlights 37 UBS Houston Energy Conference August 10, 2011
  37. UBS Houston Energy Conference – National Fuel Gas Co. – slide 37
    National Fuel Gas Company Dividend Growth National Fuel has had 109 uninterrupted 1.42 years of dividend payments and has increased its dividend for 41 consecutive years Compound Annual Growth Rate 5.0% 0.19 Annual Rate…
  38. UBS Houston Energy Conference – National Fuel Gas Co. – slide 38
    Utility Segment National Fuel Gas Distribution Corporation 39 UBS Houston Energy Conference August 10, 2011
  39. UBS Houston Energy Conference – National Fuel Gas Co. – slide 39
    Utility Return on Equity (1) 20.0 NY PA Return on Equity (%) 14.7 15.0 14.0 13.2 11.8 10.9 10.6 10.3 9.8 10.0 9.1 6.3 5.0 0.0 2006 2007 2008 2009 2010 Fiscal Year (1) Calculated using Average Total Comprehensive…
  40. UBS Houston Energy Conference – National Fuel Gas Co. – slide 40
    Pipeline & Storage / Midstream National Fuel Gas Supply Corporation Empire Pipeline, Inc. National Fuel Gas Midstream Corporation 41 UBS Houston Energy Conference August 10, 2011
  41. UBS Houston Energy Conference – National Fuel Gas Co. – slide 41
    PIPELINE & STORAGE / MIDSTREAM EXPANSION INITIATIVES NORTHERN ACCESS EXPANSION TIOGA COUNTY EXTENSION CENTRAL TIOGA LAMONT COUNTY COMPRESSOR EXTENSION STATION PHASE I & II COVINGTON GATHERING SYSTEM TROUT RUN…
  42. UBS Houston Energy Conference – National Fuel Gas Co. – slide 42
    Pipeline & Storage/Midstream Expansion Initiatives Capacity Est. In-Service Project Name Market Status (Dth/D) CapEx Date Covington Gathering System 145,000 16 MM 11/17/09 Fully Subscribed Completed Flowing into TGP 300 Line Lamont…
  43. UBS Houston Energy Conference – National Fuel Gas Co. – slide 43
    Exploration & Production Seneca Resources Corporation 44 UBS Houston Energy Conference August 10, 2011
  44. UBS Houston Energy Conference – National Fuel Gas Co. – slide 44
    Marcellus Shale Pennsylvania Acreage Holdings SRC Fee Acreage SRC Lease Acreage SRC Contributed JV Acreage EOG Contributed JV Acreage 45 UBS Houston Energy Conference August 10, 2011
  45. UBS Houston Energy Conference – National Fuel Gas Co. – slide 45
    Marcellus Shale Pre-Tax IRR Comparison at NYMEX of 4.00/MMBtu Eastern Development Area Net Net Well Costs ( Millions) Working Revenue Description EUR Interest Interest 6.0 6.4 Seneca EDA Well 8 Bcf 100% 85% 73% 63% Seneca EDA…
  46. UBS Houston Energy Conference – National Fuel Gas Co. – slide 46
    Marcellus Shale Gross Horizontal Wells Drilled per Year EOG JV Horizontal Wells Seneca Horizontal Wells 150 Marcellus Horizontal Rig Count 125 Current Rig Count: 115-140 Seneca : 5 Rigs EOG : 2 Rigs 85-110 Gross Wells…
  47. UBS Houston Energy Conference – National Fuel Gas Co. – slide 47
    National Fuel Gas Company Comparable GAAP Financial Measure Slides and Reconciliations This presentation contains certain non-GAAP financial measures. For pages that contain non-GAAP financial measures, pages containing the most…
  48. UBS Houston Energy Conference – National Fuel Gas Co. – slide 48
    Reconciliation of GAAP Net Income to Income From Continuing Operations Excluding Items Impacting Comparability ( Thousands) 12 Mos. Ended FY 2008 FY 2009 FY 2010 6/30/2011 GAAP Net Income E&P Segment GAAP Net Income 146,612 (10,238)…
  49. UBS Houston Energy Conference – National Fuel Gas Co. – slide 49
    Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures ( Thousands) FY 2011 FY 2012 FY 2007 FY 2008 FY 2009 FY 2010 Forecast Forecast Capital Expenditures from Continuing Operations Exploration &…

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