Skip to main content Q1 2017 Investor Presentation – National Fuel Gas Co. | Shale Experts
Loading...
Pm

Q1 2017 Investor Presentation – National Fuel Gas Co.

National Fuel Gas Co. · Feb 2, 2017 · 58 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. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 1
    Investor Presentation Q1 Fiscal 2017 Update February 2, 2017 1
  2. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 2
    Quality Assets - Exceptional Location - Unique Integration Upstream 1.8 Tcfe Proved Reserves (1) 785,000 net acres in Appalachia - mostly held in fee with no royalty 3 million Bbls per year of crude oil production in California…
  3. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 3
    The National Fuel Value Proposition Considerable Upstream and Midstream Growth Opportunities in Appalachia Fee ownership on 715,000 net acres in WDA = limited royalties or drilling commitments Seneca has 900,000 Dth/day of firm…
  4. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 4
    Balanced Earnings and Cash Flows Adjusted EBITDA by Segment ( millions) 1,500 Exploration & Production Segment Gathering Segment Pipeline & Storage Segment Utility Segment Energy Marketing & Other 1,000 953 852 843 789 813…
  5. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 5
    Flexibility to Responsibly Deploy Capital Capital Expenditures by Segment ( millions) Exploration & Production Segment (1) 1,500 CapEx Reconciliation for JDA Proceeds Gathering Segment (millions) E&P Total NFG Pipeline & Storage…
  6. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 6
    Strong Balance Sheet & Liquidity Debt/Adjusted EBITDA Capitalization 2.66 x 2.60 x 2.27 x 1.89 x Total Equity 1.77 x 43% Total Debt 57% 3.7 Billion Total Capitalization 2013 2014 2015 2016 TTM Fiscal Year End 12/31/16 as…
  7. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 7
    Dividend Track Record Annual Dividend Rate ( /share) NFGs Dividend Consistency 2.00 Consecutive 114 Years Payments 1.50 Consecutive 46 Years Increases 1.00 Current Dividend 1.62 per Share Rate 0.50 Current Dividend 2.9%…
  8. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 8
    FY 2017 Capital Budget and Operating Plan Capital Expenditures by Segment (MM) FY2017 Operating Plan Highlights 1,000 Exploration & Production Segment (1) Upstream Gathering Segment Appalachia: Pipeline & Storage Segment Current…
  9. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 9
    Appalachia Overview Exploration & Production Gathering Pipeline & Storage 10
  10. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 10
    Integrated Vision for Long-term Growth in Appalachia Exploration & Production 1 Long-term, return-driven approach to developing vast Marcellus & Utica acreage position Gathering 3 2 Northern Access projects to transport 660…
  11. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 11
    Upstream Significant Appalachian Acreage Position Western Development Area (WDA) Fee Acreage Lease Acreage 147 wells able to produce 310 MMcf/d EDA - 70,000 Acres Large inventory of high quality Marcellus WDA - 715,000 Acres…
  12. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 12
    Upstream Marcellus Shale: Western Development Area WDA Tier 1 Acreage 200,000 Acres WDA Highlights Large drilling inventory of quality Marcellus dry gas 1,100 locations economic < 2.00/MMBtu realized Fee acreage provides…
  13. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 13
    Upstream WDA Clermont/Rich Valley Development CRV Development Summary 125 wells able to produce 300 MMcf/d Dropped to 1 rig in March 2016 (down from 3 rigs at start of fiscal 2016) Rig additions planned at the end of FY17 and…
  14. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 14
    Upstream Marcellus Shale: Eastern Development Area EDA Highlights EDA Acreage 70,000 Acres 1 Covington & DCNR Tract 595 (Tioga Co., Pa.) Marcellus locations fully developed 92 wells(1) with 92 MMcf/d productive capacity 3…
  15. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 15
    Upstream Best in Class Marcellus Well Costs Marcellus Drilling Cost per Foot Marcellus Completion Cost per Stage (000s) 300 275 300 248 208 200 174 200 153 148 120 110 109 91 100 100 67 58 0 0 2012 2013 2014 2015 2016…
  16. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 16
    Upstream Utica Shale Opportunities Pennsylvania Utica Activity Senecas Utica Opportunities Senecas Utica Activity on Trend with Shell Strong Results in Northern Pa. JKLM Seneca Western Development Area EDA Seneca First 2…
  17. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 17
    Upstream WDA Utica Update Initial Utica Test Wells in WDA CRV area Exceeds Marcellus Performance WDA-CRV Utica WDA-CRV Marcellus Results: WDA Utica Results (1) vs Avg WDA Marcellus Test Wells Wells (Average) Well 113HU Well…
  18. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 18
    Upstream WDA Utica Appraisal Program Short Term Plan Forward WDA UTICA TESTING TIMELINE Pad Wells Status Test Timing (FY) 1 E09-M 1 Producing Initial On-line Plan to drill 10 total Utica appraisal wells 2 NF-A 1 Producing Sand…
  19. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 19
    Upstream EDA Utica Update Seneca DCNR 007 Utica Well Among the Best in Northeastern PA SRC EDA Tract 007 Northeast PA Utica Well Performance Tioga and Potter County Utica Test Well Gathering Line In-Service November 2016 800…
  20. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 20
    Midstream Midstream Businesses Midstream Businesses System Map Midstream Businesses Adjusted EBITDA (MM) Pipeline & Storage Segment Gathering Segment 278 284 Empire Pipeline, Inc. 250 257 FERC-Regulated NFG Supply Corp.…
  21. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 21
    Midstream Integrated Development WDA Gathering System Gathering System Build-Out Tailored to Accommodate Senecas WDA Development Clermont Gathering System Map Current System In-Service 70 miles of pipe/26,220 HP of compression…
  22. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 22
    Midstream Integrated Development EDA Gathering Systems Gathering Segment Supporting Senecas EDA Production & Future Development Covington Gathering System Capital Expenditures (to date): 33 Million Capacity: 220,000 Dth per day…
  23. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 23
    Midstream Northern Access Expansions for Seneca Resources Expanding Our Pipelines to Integrate Senecas WDA Production Into Broader Interstate System Northern Access 2015 Customer: Seneca Resources (NFG) In-Service: November…
  24. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 24
    Midstream Northern Access Expansions for Seneca Resources Northern Access 2016 to Increase Transport Capacity Out of WDA by 490,000 Dth/d Northern Access 2016 Customer: Seneca Resources (NFG) In-Service: Now expected Q2 fiscal…
  25. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 25
    Midstream Recent 3rd Party Expansions Highly Successful Expansions for 3rd Parties since 2010 3rd Party Expansion Capital Cost (MM) 1,442 MDth/d 387 million since Northern since FY2010 72 FY 2010 Access 2012 +320 MDth/d 183 132…
  26. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 26
    Midstream Empire System Expansion Planned Empire Expansion Will Provide Optionality for Northeast Pennsylvania Producers Empire North Expansion Project Target In-Service: Fiscal 2019 System: Empire Pipeline Target Market: o…
  27. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 27
    Midstream 2015 Pipeline Expansion Projects In-Service Westside Expansion & Modernization 2015 Completed Pipeline Expansion Projects In-Service (October 2015) Total Cost: 82.3 million o Expansion: 43.3 million o Modernization:…
  28. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 28
    Midstream Pipeline & Storage Customer Mix Customer Transportation by Shipper Type(1) Affiliated Customer Mix (Contracted Capacity) 4.1 MMDth/d Affiliated Non-Affiliated Outside End User Pipeline 2% 6% 40% Marketer 54% 10%…
  29. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 29
    California Overview Exploration & Production 30
  30. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 30
    Upstream California Stable Oil Production Minimal Capital Investment Free Cash Flow Positive Production Location Formation Method 1 1 East Coalinga Temblor Primary Tulare & Primary/ 2 North Lost Hills Etchegoin Steamflood 3…
  31. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 31
    Upstream California Average Daily Net Production Less than 40 Million Annual Capital Spending Needed to Keep CA Production Flat California Annual Capital Expenditures (MM) California Average Net Daily Production (BOE/D) 9,699…
  32. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 32
    Upstream Economic Development Focused on Midway Sunset North Midway Sunset Economics North MWSS MWSS Project IRRs at 55/Bbl(1) Sec. 17N Acreage 72% 40% 30% Pioneer NMWSS SMWSS Farm-in Projects South MWSS Modest…
  33. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 33
    Upstream Strong Margins Support Significant Free Cash Flow West Division Adjusted EBITDA per BOE(1) Trailing 12-months Ended 12/31/16 Non-Steam Fuel LOE 10.97 Steam Fuel 3.40 California Margins (per BOE) G&A 5.66 Average…
  34. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 34
    Production and Marketing Exploration & Production 35
  35. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 35
    Upstream Proved Reserves & Development Costs Total Proved Reserves (Bcfe) Natural Gas (Bcf) 3,000 Crude Oil (MMbbl) Fiscal 2016 Proved Reserves Reconciliation (Bcfe) 2,500 2,344 Proved Reserves - FYE '15 2,344 FY '16…
  36. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 36
    Upstream Seneca Production Seneca Resources Net Production (Bcfe) 250 (1) Appalachia Joint Development Agreement West Coast (California) tempers net production growth in FY17 200 Gross production expected to grow 10% 160.5…
  37. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 37
    Upstream Long-Term Contracts Supporting Appalachian Growth Gross Firm Sales and Firm Transport Volumes Under Contract (Thousands Dth per Day) 1,000 Atlantic Sunrise expected July 2018 Northern Access pushed to Q2 FY18…
  38. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 38
    Upstream Firm Transportation Commitments Volume Delivery Demand Charges Production Source Gas Marketing Strategy (Dth/d) Market (/Dth) Currently In-Service Firm Sales Contracts Northeast Supply EDA -Tioga County 50,000…
  39. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 39
    Upstream Firm Sales Provide Market for Appalachian Production FY 17 Net Contracted Volumes (Dth per day) Contracted Index Price Differentials ( per Dth)(1) 387,300 358,500 348,500 Gross vs. Net Firm Sales Volumes (Dth per…
  40. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 40
    Upstream Strong Hedge Book in Fiscal 2017 Natural Gas Swap & Fixed Physical Sales Contracts (Millions MMBtu) 150.0 Remaining Fiscal 2017 Natural Gas Production 82% hedged(1) at 3.33 per MMBtu 100.0 89.4 84.1 45.0 32.9…
  41. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 41
    Upstream Fiscal 2017 Production and Price Certainty FINANCIAL HEDGE + FIRM SALE = PRICE CERTAINTY 200 87 Bcf realizing net 3.10/Mcf (1) 5.4 Bcf of Additional Basis Protection 155 175 Bcfe 150 20-22 Bcfe 5.4 Bcf (2) 4 20 Bcf…
  42. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 42
    Upstream Operating Costs Appalachia LOE & Gathering California LOE Seneca Resources Consolidated /Mcfe /Boe /Mcfe 1.70 0.81 1.52 1.58 0.73 0.22 0.72 16.17 16.32 0.17 0.20 0.22 14.83 0.42 0.14 0.11 (1) 0.39 (1) 0.38 (2)…
  43. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 43
    Downstream Overview Utility Energy Marketing 44
  44. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 44
    Downstream New York & Pennsylvania Service Territories New York Total Customers(1): 528,312 ROE: 9.1% (NY PSC Rate Case Settlement, May 2014) Rate Mechanisms: o Earnings Sharing o Revenue Decoupling o Weather Normalization o…
  45. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 45
    Downstream New York Rate Case On April 28, 2016, National Fuel Gas Distribution Corporation filed a request with the New York Public Service Commission (NY Background PSC) to amend its tariff and increase its base rates. National…
  46. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 46
    Downstream Utility: Shifting Trends in Customer Usage Usage Per Account (1) Residential (Mcf) Industrial (MMcf) 150 40 125 35 100 30 75 25 50 20 12-Months Ended December 31 47 (1) Weighted Average of New York…
  47. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 47
    Downstream Utility: Strong Commitment to Safety Capital Expenditures ( millions) 150.0 Capital Expenditures for Safety Recent increase due to 60MM upgrade Total Capital Expenditures of the Utilitys Customer Information System and…
  48. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 48
    Downstream A Proven History of Controlling Costs O&M Expense ( millions) 250 All Other O&M Expenses O&M Pension Expense O&M Uncollectible Expense 200 200 193 189 192 9 178 10 7 7 6 28 23 23 20 33 150 100 152 163 160 162…
  49. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 49
    Appendix 50
  50. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 50
    Appendix Seneca Resources Capital Expenditures by Division ( millions) Appalachia (1) 800 (2) West Coast (California) 694 603 600 557 533 400 631 520 428 500 180-220 200 99 145-175 105 61 63 83 57 0 38 35-45…
  51. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 51
    Appendix Seneca WDA Joint Development Agreement On June 13, 2016, Seneca announced the extension of asset-level joint development agreement with IOG CRV Marcellus Transaction Capital, LLC, an affiliate of IOG Capital, LP, and funds…
  52. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 52
    Appendix Marcellus Operated Well Results WDA Development Wells: Producing Well Average IP Rate Average Average Treatable Area Count (MMcfd) 30-Day (MMcf/d) Lateral Length (ft) Clermont/Rich Valley (CRV) & Hemlock 113(1) 6.9 5.3…
  53. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 53
    Appendix Marcellus Shale Program Economics 1,150 Locations Economic Below 2.00/MMBtu NYMEX / DAWN Pricing Net Realized Locations Completed (2) Anticipated Average Price Prospect Product Remaining Lateral 3.00 2.75 2.50 Delivery…
  54. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 54
    Appendix Hedge Positions Natural Gas Volumes in thousand MMBtu; Prices in /MMBtu Fiscal 2017 (last 9 mos.) Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Avg. Avg. Avg. Avg. Avg. Volume Price Volume Price Volume Price Volume…
  55. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 55
    Appendix Non-GAAP Reconciliations Adjusted EBITDA Reconciliation of Adjusted EBITDA to Consolidated Net Income ( Thousands) 12-Months FY 2013 FY 2014 FY 2015 FY 2016 Ended 12/31/16 Total Adjusted EBITDA Exploration & Production…
  56. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 56
    Appendix Non-GAAP Reconciliations Capital Expenditures Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures ( Thousands) FY 2017 FY 2013 FY 2014 FY 2015 FY 2016 Forecast Capital Expenditures from…
  57. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 57
    Appendix Non-GAAP Reconciliations E&P Adjusted EBITDA Reconciliation of Exploration & Production Adjusted EBITDA for Appalachia and West Coast divisions to Exploration & Production Segment Net Income ( Thousands) Three Months Ended…
  58. Q1 2017 Investor Presentation – National Fuel Gas Co. – slide 58
    Appendix Non-GAAP Reconciliations E&P Operating Expenses Reconciliation of Exploration & Production Segment Operating Expenses by Division (000s unless noted otherwise) Twelve Months Ended Twelve Months Ended September 30, 2016…

From the store

Browse maps, data & reports in the Shale Experts store