Skip to main content American Gas Associations Financial Forum – National Fuel Gas Co. Investor Presentation | Shale Experts
Loading...
Pm

American Gas Associations Financial Forum – National Fuel Gas Co.

National Fuel Gas Co. · May 6, 2012 · 61 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. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 1
    National Fuel Gas Company Investor Presentation AGA Financial Forum May 6-8, 2012
  2. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 2
    National Fuel Gas Company May 6-8, 2012 Our Business Mix Leads to Long-Term Value Creation Upstream Upstream Midstream Downstream Crude Oil Natural Gas Seneca Resources Seneca Resources National Fuel Gas National Fuel Gas…
  3. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 3
    National Fuel Gas Company May 6-8, 2012 Integrated Business Mix Provides Financial Balance 1,000 Utility Segment Pipeline & Storage Segment Exploration & Production Segment Midstream, Energy Marketing & Other 750 654 668 659…
  4. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 4
    National Fuel Gas Company May 6-8, 2012 Businesses with Steady Cash Flows Limit Downside Risk 1,000 Utility Segment Historically, nearly 70% to 80% Pipeline & Storage Segment of EBITDA was generated by our Exploration & Production…
  5. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 5
    National Fuel Gas Company May 6-8, 2012 Highly Integrated Assets with Significant Marcellus Exposure (1) Footnote 1 goes here (2) Footnote 2 goes here 6
  6. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 6
    National Fuel Gas Company May 6-8, 2012 And Exposure to Growth from the Utica Shale (1) Footnote 1 goes here (2) Footnote 2 goes here 7
  7. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 7
    National Fuel Gas Company May 6-8, 2012 Business Mix Allows for Strategic Capital Allocation Predictable Earnings and Cash Flow Capital Allocation Priorities Ongoing maintenance capital spending in regulated businesses…
  8. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 8
    National Fuel Gas Company May 6-8, 2012 Strategically Allocating Growth Capital Expenditures Analyst Day September 2011 Current Allocation Growth Capital Focus Growth Capital Focus Increasing Marcellus Production Increasing…
  9. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 9
    National Fuel Gas Company May 6-8, 2012 Broadening Our Infrastructure Expansion Focus Will evaluate opportunities to redeploy capital towards infrastructure expansion for 3rd parties as well as Seneca (1) Footnote 1 goes…
  10. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 10
    National Fuel Gas Company May 6-8, 2012 Continued Reduction in Capital Spending 1,400 1,200 Factors Behind Capital Reduction Capital Expenditures ( Millions) 1. Maintain a strong balance sheet 1,000 Capital Spending 2.…
  11. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 11
    National Fuel Gas Company May 6-8, 2012 Capital Spending Flexibility to Maintain Financial Strength To the extent additional infrastructure Utility expansions are available, additional capital 1,250 Pipeline & Storage remains…
  12. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 12
    National Fuel Gas Company May 6-8, 2012 Strong Balance Sheet and Liquidity Position Short-Term Debt 0.6% Capital Resources Total Short-Term Capacity: 1,085 Million Committed Credit Facility: 750 Million Long-Term Five-year…
  13. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 13
    National Fuel Gas Company May 6-8, 2012 Dividend Track Record 2.00 Dividend Consistency Consecutive Dividend Payments 109 Years Consecutive Dividend Increases 41 Years 1.50 Current Annualized Dividend Rate 1.42 per Share Annual…
  14. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 14
    Pipeline & Storage / Midstream May 6-8, 2012 (1) Footnote 1 goes here (2) Footnote 2 goes here 15
  15. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 15
    Pipeline & Storage / Midstream May 6-8, 2012 Ongoing Expansion to Transport Appalachian Production Shipping Gas to Canada & Northeast Longer-Term Infrastructure Gathering Expansions Marcellus Production Serving…
  16. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 16
    Pipeline & Storage / Midstream May 6-8, 2012 A Closer Look at the Expansion Progress NORTHERN ACCESS EXPANSION (Under Construction) TIOGA COUNTY WEST TO EAST EXTENSION OVERBECK TO LEIDY (In-Service) CENTRAL TIOGA COUNTY…
  17. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 17
    Midstream May 6-8, 2012 Using a History of Excellence to Serve Appalachian Producers Midstreams gathering systems are critical to unlock remote, but highly TGP 300 productive Marcellus acreage Tioga County History of operational…
  18. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 18
    Pipeline & Storage Growth May 6-8, 2012 Deploying Significant Growth Capital Capital spending is increasing to fund system expansion and assuming recently allowed industry average ROE and capital structure targets, this segment…
  19. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 19
    Pipeline & Storage May 6-8, 2012 Regulatory Rate Filings National Fuel Gas Supply Corporation Empire Pipeline, Inc. Filed a general rate case with FERC on Filed a cost and revenue study on October 31, 2011 as part of an March…
  20. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 20
    Utility May 6-8, 2012 (1) Footnote 1 goes here (2) Footnote 2 goes here 21
  21. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 21
    Utility May 6-8, 2012 Providing Financial Stability Return on Equity 30.0% NY PA Allowed ROE - NY Approx. Settled ROE - PA 18.8% Return on Equity 20.0% 14.7% 13.2% 12.9% 9.8% 10.6% 10.5% 10.2% 10.0% 0.0% 2009…
  22. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 22
    Utility May 6-8, 2012 Low Natural Gas Prices Have Reduced Customer Bills 1,500 Normalized Average Residential Heating Customer Bill (Winter Heating Season New York Division) Normalized Average Heating Customer Bill 1,250…
  23. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 23
    Utility May 6-8, 2012 Continued Cost Control Helps Provide Earnings Stability Low natural gas prices, 250 combined with a focus on cost control, continue to 203 help reduce expenses 200 191 25 181 179 O&M Expense (…
  24. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 24
    Utility May 6-8, 2012 Strong Commitment to Safety 80 Capital Expenditures for Safety Capital spending from 2011 to 2014 is Total Capital Expenditures expected to be between Capital Expenditures ( Millions) 55 and 60 million…
  25. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 25
    Exploration & Production May 6-8, 2012 (1) Footnote 1 goes here (2) Footnote 2 goes here 26
  26. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 26
    Seneca Resources May 6-8, 2012 Ongoing Strategic Responses to Low Gas Prices Maintain Focus on Generated 118.3 million of EBITDA in the first half of fiscal 2012 California Crude Oil Increased capital spending in California…
  27. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 27
    California May 6-8, 2012 Stable Production and Increasing Cash Flows California 2010 Rank Company BOEPD 1 Chevron 174,856 2 Aera (Shell/Exxon) 158,786 3 Occidental 151,584 4 Plains Exploration 36,488 5 Venoco Inc. 19,121…
  28. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 28
    California May 6-8, 2012 Stable Production Fields North Lost Hills 1,200 BOEPD Tulare & Etchegoin Formation South Lost Hills Primary & Steamflood 1,700 BOEPD 181 Active Wells Monterey Shale Primary 215 Active Wells North…
  29. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 29
    California May 6-8, 2012 Strong Margins Support Significant Free Cash Flow Fiscal Year 2012 (1st Half) EBITDA per BOE Non-Steam Fuel LOE 8.34 Steam Fuel 3.18 Average Revenue in First Six Months of G&A 2.69 Fiscal 2012…
  30. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 30
    Seneca Resources May 6-8, 2012 California Recent Initiatives Driving Near-Term Growth 10,000 Production Increase Drivers Average Daily Net Production (BOE per Day) 1. North Midway Sunset Steaming 2. South Midway Sunset Field…
  31. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 31
    Seneca Resources May 6-8, 2012 Midway Sunset South Activity Update 2011 Drill Program: 12 Wells / 4 Injectors 2012 Drill Program: 23 Wells / 3 Injectors Seneca Western Minerals 251T Extended 251 Pool to the West Seneca…
  32. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 32
    Seneca Resources May 6-8, 2012 Sespe Field 2011 Drilling Highlights and Results 2011 Sespe Highlights 350 Thick 5 Wells Drilled (Two 5-acre infill tests) (Medium Blue) 1 Mile Estimated EURs: 150-200 MBoe/Well White Star 5…
  33. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 33
    Seneca Resources May 6-8, 2012 Sespe Field 2012 Drill Plan Builds Upon 2011 Successes 350 Thick Proposed Bottom Hole Locations (Medium Blue) 1 Mile Thornbury (10/5) Coldwater Tests Frankel A (5) Type Log for Frankel A…
  34. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 34
    Seneca Resources May 6-8, 2012 Monterey Shale Play Monterey Shale Play Belridge Field 5 AMIs across the field Seneca WI: 12.5% AMI Outlines Seneca NRI: 11.1% Producing (Gross): 50 BOPD 3-4 Delineation Wells Planned…
  35. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 35
    Seneca Resources May 6-8, 2012 Expansive Pennsylvania Acreage Position SRC Fee Acreage SRC Lease Acreage EOG Acreage Western Development Area Eastern Development Area Net acreage: 690,000 acres Net Acreage: 55,000 acres…
  36. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 36
    Seneca Resources May 6-8, 2012 Net Rig Count (Working Interest) 10 Seneca Resources - Delineation Seneca Resources - Development EOG Resources Fiscal 2013 rig count 8 7.5 range depends on participation in Net Horizontal Rig…
  37. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 37
    Seneca Resources May 6-8, 2012 Ramping Marcellus Shale Production Covington DCNR 595 DCNR 100 EOG JV WDA/Other 225 Forecast Average Daily Net Production (MMcf per Day) 150 75 0 (1) Footnote 1 goes here (2)…
  38. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 38
    Seneca Resources May 6-8, 2012 Eastern Development Area (EDA) Results & Plan Forward DCNR Tract 007 Expiration Date: January 2020 Minimum Wells to Hold Acreage: 33 Covington Fully Developed 47 Wells Drilled and Producing…
  39. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 39
    Seneca Resources May 6-8, 2012 Evaluating Marcellus Wet Gas Potential More than 100,000 acres within the targeted window of 1,100 Btu to 1,200 Btu Will need cryogenic processing plant running in ethane rejection mode processing…
  40. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 40
    Seneca Resources May 6-8, 2012 Utica Shale Activity Summary Mt. Jewett Vertical: Tested Dry Gas Vertical Well Drilled Horizontal: Prep to Complete Horizontal Well Permit Horizontal Well Drilled Owls Nest Horizontal FY2013…
  41. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 41
    Seneca Resources May 6-8, 2012 Increased California Spending with Ongoing Marcellus Cuts 1,000 California Upper Devonian Marcellus/Utica Gulf of Mexico Capital Expenditures ( Millions) 750 649 610-690 450-550 500 398(1)…
  42. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 42
    Seneca Resources May 6-8, 2012 Production Still Growing 175 California Upper Devonian Marcellus/Utica Gulf of Mexico 150 Annual Production (Bcfe) 125 100-115 100 81-90 75 67.6 5.2 75-86 49.6 56-61 50 42.5 13.3…
  43. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 43
    National Fuel Gas Company May 6-8, 2012 Appendix (1) Footnote 1 goes here (2) Footnote 2 goes here 44
  44. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 44
    National Fuel Gas Company May 6-8, 2012 Manageable Debt Maturity Schedule 600 Paid at Maturity on November 21, 2011 500 500 Debt Maturity ( Millions) 400 300 300 250 250 200 150 100 7.395% 49 50 6.700%…
  45. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 45
    National Fuel Gas Company May 6-8, 2012 Targeted Capital Structure Debt Equity Utility 50% 50% Equity P&S 50% 50% 55% - 65% Debt 35% - 45% E&P 30% 70% All Other 40% 60% Capital Structure Long-Term Consolidated Targets…
  46. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 46
    Pipeline & Storage / Midstream May 6-8, 2012 Appendix (1) Footnote 1 goes here (2) Footnote 2 goes here 47
  47. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 47
    Pipeline & Storage May 6-8, 2012 Expansion Initiatives Capacity Est. Project Name In-Service Market Status (Dth/D) CapEx Lamont Compressor Station 40,000 6 MM 6/2010 Fully Subscribed Completed Lamont Phase II Project 50,000 7.6…
  48. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 48
    Midstream Corporation May 6-8, 2012 Expansion Initiatives Capacity Est. In-Service Project Name Market Comments (Mcf/D) CapEx Date Completed Flowing into TGP Multiple 300 Line. This includes 32 Phases - Covington Gathering…
  49. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 49
    Exploration & Production May 6-8, 2012 Appendix (1) Footnote 1 goes here (2) Footnote 2 goes here 50
  50. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 50
    National Fuel Gas Company May 6-8, 2012 Hedge Positions and Strategy Seneca has hedged approximately 46% of its remaining forecasted production for Fiscal 2012 Natural Gas Volume Average Hedge Volume Average Swaps (Bcf) Price…
  51. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 51
    Marcellus Shale May 6-8, 2012 Western Development Area (WDA) Results & Plan Forward Approx. Outline of JV Acreage SRC Fee Acreage 200,000 Gross Acres Seneca 50% W.I. (Avg. 58% NRI) SRC Lease Acreage SRC Contributed JV Acreage…
  52. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 52
    Marcellus Shale May 6-8, 2012 Expanding 3D Seismic Coverage DCNR 007 DCNR 001 Mt. Jewett Covington West Branch DCNR 595 DCNR 100 Owls Nest Punxy Completed In Progress (1) Footnote 1 goes here (2) Footnote 2 goes…
  53. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 53
    Marcellus Shale May 6-8, 2012 Covington Typecurve 6.7 Bcfe EUR (Greater Than 3,500 Lateral) 12.0 Original 6.0 Bcf Typecurve EDA Average Daily Production Rate IP Rate 7,250 MMcf/d 6.7 Bcf Typecurve (40 Year Life) Hyp. Coeff. 1.4…
  54. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 54
    Marcellus Shale May 6-8, 2012 Targeting Continued Cost Reductions Drilling Cost per Lateral Foot Completion Cost per Stage (000) WDA/DCNR 595 DCNR 100 WDA/DCNR 595 DCNR 100 800 400 700 350 600 300 500 250 650 311…
  55. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 55
    Marcellus Shale May 6-8, 2012 Breaking Down Our Acreage Position Possible Wells Area Net Acres Locations Wells Drilled Completed EUR (Bcfe) Status Eastern Development Area (EDA) Covington 7,000 47 47 47 5.5 Developed 595 6,000…
  56. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 56
    Marcellus Shale May 6-8, 2012 Water Management Program Water Sourcing: Coal mine runoff Permitted freshwater sources Recycled water Water Management: Instituted a Zero Surface Discharge policy Recycle Marcellus flowback and…
  57. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 57
    Marcellus Shale May 6-8, 2012 Zero Liquid Discharge Operation Utilizing a state-of-the-art evaporative technology to ensure no liquid is discharged at the surface Building centrally located units in the Western Development Area…
  58. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 58
    National Fuel Gas Company May 6-8, 2012 Comparable GAAP Financial Measure Slides and Reconciliations This presentation contains certain non-GAAP financial measures. For pages that contain non-GAAP financial measures, pages…
  59. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 59
    May 6-8, 2012 Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures ( Thousands) FY 2012 FY 2013 FY 2009 FY 2010 FY 2011 Forecast Forecast Capital Expenditures from Continuing Operations Exploration…
  60. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 60
    May 6-8, 2012 Reconciliation of Exploration & Production West Division EBITDA to Exploration & Production Segment Net Income ( Thousands) 6 Months Ended March 31, 2012 Exploration & Production - West Division EBITDA 118,341…
  61. American Gas Associations Financial Forum – National Fuel Gas Co. – slide 61
    May 6-8, 2012 Reconciliation of EBITDA to Net Income ( Thousands) 12 Months Ended FY 2008 FY 2009 FY 2010 FY 2011 March 31, 2012 Exploration & Production - West Division EBITDA 188,008 170,611 187,838 187,603 217,180 Exploration…

From the store

Browse maps, data & reports in the Shale Experts store