Skip to main content March 2018 Investor Presentation – National Fuel Gas Co. | Shale Experts
Loading...
Pm

March 2018 Investor Presentation – National Fuel Gas Co.

National Fuel Gas Co. · Mar 28, 2018 · 55 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. March 2018 Investor Presentation – National Fuel Gas Co. – slide 1
    Investor Presentation Scotia Howard Weil Energy Conference March 26 - 28, 2018
  2. March 2018 Investor Presentation – National Fuel Gas Co. – slide 2
    NFG: A Diversified Natural Gas Company Developing our large, high quality acreage position in Marcellus & Utica Upstream shales with a focus on returns E&P 785,000 Net acres in Appalachia Expanding and modernizing pipeline…
  3. March 2018 Investor Presentation – National Fuel Gas Co. – slide 3
    Creating Long-Term, Sustainable Shareholder Value 1 Large, contiguous footprint in Appalachia drives peer leading low-cost development Opportunity for Fee-ownership (no royalty) on majority of acreage a significant competitive…
  4. March 2018 Investor Presentation – National Fuel Gas Co. – slide 4
    Benefits of Integration Unique Geographic and Operational Integration Drives Synergies that Maximize Shareholder Value Utility and Pipeline & Storage Upstream and Midstream Benefits of Operational Synergies Strategic Development NFG…
  5. March 2018 Investor Presentation – National Fuel Gas Co. – slide 5
    Dividend Track Record 47 Years 115 Years 1.66 per share 3.3% yield(1) Consecutive Dividend Increases Consecutive Payments 2.8 Billion Dividend payments since 1970 0.19 per share Annual Rate at Fiscal Year End (1) As…
  6. March 2018 Investor Presentation – National Fuel Gas Co. – slide 6
    Balanced Earnings and Cash Flows Adjusted EBITDA by Segment ( millions)(1) 1,500 Exploration & Production Gathering Pipeline & Storage Utility Energy Marketing & Other 1,000 953 843 789 777 747 539 422 364 361 338 500 64…
  7. March 2018 Investor Presentation – National Fuel Gas Co. – slide 7
    Disciplined, Flexible Capital Allocation Capital Expenditures by Segment ( millions)(1) (2) 1,250 Exploration & Production Gathering Pipeline & Storage 970 1,001 Utility 1,000 Energy Marketing & Other 750 557 603 560 - 650…
  8. March 2018 Investor Presentation – National Fuel Gas Co. – slide 8
    Maintaining Strong Balance Sheet & Liquidity Net Debt / Adjusted EBITDA(1) Capitalization 2.51 x 2.61 x 2.45 x 2.18 x 1.72 x Total Equity Total Debt 47% 53% 2014 2015 2016 2017 TTM 3.9 Billion Total Capitalization Fiscal…
  9. March 2018 Investor Presentation – National Fuel Gas Co. – slide 9
    Near-term Growth Strategy Grow Marcellus and Utica production and gathering throughput at a 10%+ CAGR over next 3 years WDA Development (1-rig program) Exploration & Return to developing 100% NRI wells following completion of…
  10. March 2018 Investor Presentation – National Fuel Gas Co. – slide 10
    Fiscal 2018 Earnings Guidance FY 2017 Earnings FY2018 Earnings Guidance(1) Key Guidance Drivers 3.30 /share 3.20 to 3.40 /share Non-regulated Seneca Net Production: 180 to 195 Bcfe Production & Gathering Throughput Businesses…
  11. March 2018 Investor Presentation – National Fuel Gas Co. – slide 11
    Impact of Federal Tax Reform Exploration & Production and Gathering Non-Rate Positive ongoing earnings impact expected from reduction in federal income tax rate Regulated from 35% to 21% (blended 24.5% in FY 2018) Segments…
  12. March 2018 Investor Presentation – National Fuel Gas Co. – slide 12
    Upstream Overview Exploration & Production 13
  13. March 2018 Investor Presentation – National Fuel Gas Co. – slide 13
    Upstream Growing Production within Disciplined Capital Program E&P Net Capital Expenditures(1) ( millions) Senecas Near-term Operational Plan 600 557 Appalachia West Coast (California) Appalachia Natural Gas 2-rig development…
  14. March 2018 Investor Presentation – National Fuel Gas Co. – slide 14
    Upstream Proved Reserves Total Proved Reserves (Bcfe) 3-Year Average F&D Cost (/Mcfe) 3,000 2.00 Natural Gas (Bcf) 1.67 Crude Oil (MMbbl) 1.50 1.38 1.32 2,500 2,343 2,154 1.12 0.98 1.00 2,000 1,914 1,849 1,549 0.50…
  15. March 2018 Investor Presentation – National Fuel Gas Co. – slide 15
    Upstream Significant Appalachian Acreage Position Western Development Area (WDA) Fee Acreage Lease Acreage EDA - 70,000 Acres Current gross production: 275 MMcf/d WDA - 715,000 Acres Large inventory of high quality Marcellus…
  16. March 2018 Investor Presentation – National Fuel Gas Co. – slide 16
    Upstream Western Development Area WDA Core Acreage 200,000 Acres Significant multi-zone drilling inventory economic at 2.00 /Mcf Marcellus Shale : 640 well locations Utica Shale: 125 to 500+ well locations (2) Fee acreage /…
  17. March 2018 Investor Presentation – National Fuel Gas Co. – slide 17
    Upstream WDA Utica Appraisal Results and Initial Type Curve WDA Utica Appraisal Update WDA-CRV Type Curves(1) 7,500 ft. Laterals Tested / producing from 8 Utica wells in WDA-CRV WDA-CRV Utica WDA-CRV Marcellus 8,000 Higher…
  18. March 2018 Investor Presentation – National Fuel Gas Co. – slide 18
    Upstream Transitioning to Utica Development in CRV WDA Utica Development Will Reuse Existing Pad, Water, and Gathering Infrastructure to Drive Economics FY 18 WDA Utica Transition Plan WDA-CRV Marcellus WDA-CRV Utica (Depth 7,000…
  19. March 2018 Investor Presentation – National Fuel Gas Co. – slide 19
    Upstream Eastern Development Area EDA Highlights EDA Acreage 70,000 Acres 1 DCNR Tract 007 (Tioga Co., Pa) 1 Utica and 1 Marcellus producing well 1 Utica 30-day IP = 15.8 MMcf/d Utica development expected to begin in fiscal…
  20. March 2018 Investor Presentation – National Fuel Gas Co. – slide 20
    Upstream EDA Marcellus: Lycoming County Development Marcellus Development in Lycoming County has Resumed in Anticipation of Atlantic Sunrise Prolific Marcellus acreage with peer leading well results 66 Marcellus wells producing…
  21. March 2018 Investor Presentation – National Fuel Gas Co. – slide 21
    Upstream EDA Utica: Tioga County Development Utica Development in Tioga County Tract 007 Expected to Begin in 2H FY18 Inventory: 50 locations economic at 1.90 /Mcf Tract 007 Utica Appraisal Well Results vs. Industry Targeting to…
  22. March 2018 Investor Presentation – National Fuel Gas Co. – slide 22
    Upstream Appalachia Drilling Program Economics Large Inventory of Marcellus and Utica Location Economic Below 2.00/MMBtu(1) Internal Rate of Return % (2) Realized (1) Locations Completed Price Anticipated Remaining Lateral EUR /…
  23. March 2018 Investor Presentation – National Fuel Gas Co. – slide 23
    Upstream Long-term Contracts Supporting Appalachian Production Seneca continues to layer-in firm sales contracts with attractive realizations at regional pricing points to lock-in drilling economics and minimize spot exposure as…
  24. March 2018 Investor Presentation – National Fuel Gas Co. – slide 24
    Upstream Firm Transportation Commitments Volume Delivery Demand Charges Production Source Gas Marketing Strategy (Dth/d) Market (/Dth) Firm Sales Contracts Currently In-Service Northeast Supply EDA -Tioga County Canada…
  25. March 2018 Investor Presentation – National Fuel Gas Co. – slide 25
    Upstream Firm Sales Provide Market for Appalachian Production Net Contracted Firm Sales Volumes (Dth per day) Contracted Index Price Differentials ( per Dth)(1) Fixed Price 508,100 504,100 Dawn 465,100 456,300 NYMEX 451,400…
  26. March 2018 Investor Presentation – National Fuel Gas Co. – slide 26
    Upstream California Oil Stable Oil Production Minimal Capital Investment Steady Free Cash Flow FY17 Gross Production Daily 1 Location Formation Method Production (Boe/d) East 1 Temblor Primary 711 Coalinga 2 North Lost…
  27. March 2018 Investor Presentation – National Fuel Gas Co. – slide 27
    Upstream California Capital Expenditures vs. Production West Division Annual Capital Expenditures (MM)(1) West Division Average Net Daily Production (BOE/D) 9,699 9,674 9,341 9,100 8,863 83 57 38 38 20-30 2014 2015…
  28. March 2018 Investor Presentation – National Fuel Gas Co. – slide 28
    Upstream Future Development Focused on Midway Sunset North Midway Sunset Economics North MWSS MWSS Project IRRs at 60 /Bbl(1) Sec. 17N Acreage 85% 50% 40% Pioneer NMWSS & Sec. 17N Pioneer SMWSS South MWSS Modest…
  29. March 2018 Investor Presentation – National Fuel Gas Co. – slide 29
    Upstream Strong Hedge Book Natural Gas Swap & Fixed Physical Sales Contracts (Millions MMBtu) Crude Oil Swap Contracts (Thousands Bbls) 200 3,000 FY 18 Nat Gas NYMEX Swaps FY 18 Crude Oil NYMEX (WTI) 175 62% Hedged(2) Dawn…
  30. March 2018 Investor Presentation – National Fuel Gas Co. – slide 30
    Upstream Fiscal 2018 Production 115 Bcf Protected by Firm Sales for Remainder of Year 83 Bcf locked-in realizing net 2.50/Mcf (1) 250 32 Bcf of additional basis protection 200 180 195 Bcfe 15 Bcfe 17.5+/- Bcf 73% of oil 150…
  31. March 2018 Investor Presentation – National Fuel Gas Co. – slide 31
    Upstream Seneca Operating Costs Appalachia LOE & Gathering California LOE Total Seneca Cash OpEx /Mcfe /Boe /Mcfe 1.52 1.47 17.46 17.50 1.43 0.73 0.71 0.70 0.17 0.17 14.83 0.15 0.14 0.11 0.09 0.39 (1) (1) 0.34 0.33 (2)…
  32. March 2018 Investor Presentation – National Fuel Gas Co. – slide 32
    Midstream Businesses 33
  33. March 2018 Investor Presentation – National Fuel Gas Co. – slide 33
    Midstream Midstream Businesses Midstream Businesses System Map Midstream Businesses Adjusted EBITDA (MM)(1) Pipeline & Storage Segment Gathering Segment 278 275 273 250 257 Empire Pipeline, Inc. 79 NFG Supply Corp. 69 94…
  34. March 2018 Investor Presentation – National Fuel Gas Co. – slide 34
    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 / 31,220 HP of compression…
  35. March 2018 Investor Presentation – National Fuel Gas Co. – slide 35
    Midstream Integrated Development EDA Gathering Systems Gathering Segment Supporting Senecas EDA Production & Future Development Wellsboro Gathering System Total Investment (to date): 7 million FY 2018 Capital Expenditures: 10 MM…
  36. March 2018 Investor Presentation – National Fuel Gas Co. – slide 36
    Midstream Pipeline & Storage Segment Overview National Fuel Gas Supply Corporation Contracted Capacity(1): Empire Pipeline Firm Transportation: 3,157 MDth per day Firm Storage: 68,042 Mdth (fully subscribed) Rate Base(2): 805…
  37. March 2018 Investor Presentation – National Fuel Gas Co. – slide 37
    Midstream Infrastructure Expansions Bolster Supply Diversity Expanding Our Pipelines to Assure Supply Security for New York Markets Integration of Senecas WDA Production Into Broader Interstate System Northern Access 2015…
  38. March 2018 Investor Presentation – National Fuel Gas Co. – slide 38
    Midstream Northern Access Project Status National Fuel Remains Committed to Building the Northern Access Pipeline Project Regulatory / Appeal Status US Court of Appeals for the 2nd Circuit: On April 21, 2017, NFG filed appeal of…
  39. March 2018 Investor Presentation – National Fuel Gas Co. – slide 39
    Midstream Empire System Expansion Target In-Service: November 2019 Est. Capital Cost: 142 million Est. Annual Revenues: 25 million Receipt Point: Jackson (Tioga Co., Pa. production) Design Capacity and Delivery Points: 175,000…
  40. March 2018 Investor Presentation – National Fuel Gas Co. – slide 40
    Midstream Continued Expansion of the NFG Supply System Future NFG Supply System Expansions Line D Expansion Project Project Status: In-service on November 1, 2017 Contracted Capacity: 77,500 Dth/d from an interconnect with TGP…
  41. March 2018 Investor Presentation – National Fuel Gas Co. – slide 41
    Midstream NFG Supply Corp. System Modernization NFG plans to increase investments in the modernization of its Supply Corp system over the next 5 years Modernization Program Objectives: Retire pre-1970 vintage pipelines Replace…
  42. March 2018 Investor Presentation – National Fuel Gas Co. – slide 42
    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% 9%…
  43. March 2018 Investor Presentation – National Fuel Gas Co. – slide 43
    Downstream Overview Utility Energy Marketing 44
  44. March 2018 Investor Presentation – National Fuel Gas Co. – slide 44
    Downstream New York & Pennsylvania Service Territories New York Total Customers(1): 530,400 ROE: 8.7% (NY PSC Rate Case Order, April 2017) Rate Mechanisms: o Revenue Decoupling o Weather Normalization o Low Income Rates o…
  45. March 2018 Investor Presentation – National Fuel Gas Co. – slide 45
    Downstream New York Rate Case Outcome On April 20, 2017, the New York Public Service Commission issued a Rate Order relating to NFG Distributions rate case (No. 16-G-0257) filed in April 2016. Rate Order Summary: Revenue…
  46. March 2018 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. March 2018 Investor Presentation – National Fuel Gas Co. – slide 47
    Downstream Utility: Strong Commitment to Safety Capital Expenditures ( millions)(1) 125.0 Capital Expenditures for Safety Total Capital Expenditures 98.0 95.0 100.0 94.4 88.8 80.9 75.0 61.8 63.6 54.4 49.8 50.0 25.0…
  48. March 2018 Investor Presentation – National Fuel Gas Co. – slide 48
    Downstream Accelerating Pipeline Replacement & Modernization Utility Mains by Material Miles of Utility Main Pipeline Replaced Wrought Iron 161 Bare Coated Cast Iron 128 135 NY 115 9,723 miles 112 Plastic Bare…
  49. March 2018 Investor Presentation – National Fuel Gas Co. – slide 49
    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 200 195 196 200 193 189 9 6 7 10 7 28 22 21 33 23 150 100 163 160 167 168…
  50. March 2018 Investor Presentation – National Fuel Gas Co. – slide 50
    Appendix 51
  51. March 2018 Investor Presentation – National Fuel Gas Co. – slide 51
    Appendix Hedge Positions and Prices Natural Gas Volumes in thousand MMBtu; Prices in /MMBtu Fiscal 2018 (last 9 mos.) Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Avg. Avg. Avg. Avg. Avg. Volume Price Volume Price Volume…
  52. March 2018 Investor Presentation – National Fuel Gas Co. – slide 52
    Appendix Comparable GAAP Financial Measure Slides & Reconciliations This presentation contains certain non-GAAP financial measures. For pages that contain non-GAAP financial measures, pages containing the most directly comparable…
  53. March 2018 Investor Presentation – National Fuel Gas Co. – slide 53
    Appendix Non-GAAP Reconciliations Adjusted EBITDA Reconciliation of Adjusted EBITDA to Consolidated Net Income ( Thousands) 12-Months FY 2014 FY 2015 FY 2016 FY 2017 Ended 12/31/17 Total Adjusted EBITDA Exploration & Production…
  54. March 2018 Investor Presentation – National Fuel Gas Co. – slide 54
    Appendix Non-GAAP Reconciliations Capital Expenditures Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures ( Thousands) FY 2018 FY 2014 FY 2015 FY 2016 FY 2017 Forecast Capital Expenditures…
  55. March 2018 Investor Presentation – National Fuel Gas Co. – slide 55
    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, 2017…

From the store

Browse maps, data & reports in the Shale Experts store