Investor Presentation Q1 Fiscal 2021 Update February 4, 2021
National Fuel is committed to the safe and environmentally conscious development, transportation, storage, and distribution of natural gas and oil resources. For additional information, please review our Corporate Responsibility…
NFG: A Diversified, Integrated Natural Gas Company Upstream Developing our large, high quality Exploration & acreage position in Marcellus & Production Utica shales(1) 40% of NFG 1.2 Million 820 MMcf/day Net acres in Net…
Why National Fuel Diversified Assets Provide Stability and Long-Term Growth Opportunities 1 Integrated Model Enhances Shareholder Value 2 Appalachian Program Expected to Generate Significant Free Cash Flow 3 Interstate…
1 Integrated Model Enhances Shareholder Value . . . Benefits of National Fuels Geographic and Operational Integrated Structure: Upstream Integration Drives Synergies: Exploration & Ability to adjust to changing Production Upstream…
. . . and Continues to Drive Growth Opportunities Near Term Strategy Leverages Integration Across the Value Chain Exploration & Pipeline & Gathering Utility Production Storage Integrated Upstream and Midstream development of…
2 Appalachian Program Expected to Generate Free Cash Flow . . . . . . In Fiscal 2021 at Natural Gas Prices . . . While Generating Strong Consolidated Well Below Current NYMEX Strip. . . Returns Across Senecas Acreage Footprint 175…
3 Significant Interstate Pipeline Growth Supply Corp. Rate Case Settlement: Northern Access 35 million increase in base rates Delivery: NY & Canada Empire North (effective February 2020) 490,000 Dth/d Delivery: Canada & NY (remains…
4 Half Century of Dividend Growth 50 Years 118 Years 1.78 per share 4.3% yield(1) Consecutive Dividend Increases Consecutive Payments 3.2 Billion Dividend payments since 1970 0.19 per share Annual Rate at Fiscal…
5 Focused on Corporate Responsibility and ESG Ongoing Sustainability-Focused Initiatives Across the Energy Value Chain Initial Corporate Responsibility Report published in September 2020 (SASB/GRI disclosures for each segment) NFG…
First Quarter Fiscal 2021 Financial Highlights 11
First Quarter Fiscal 2021 Results and Drivers Adjusted Operating Results (/share)(1) Q1 FY 2020 Q1 FY 2021 Major Drivers 1.06 Oil and Gas 1.01 Natural Gas Prices Pricing(2) 62.92 2.14 Exploration & Exploration & 49.91…
Earnings Guidance FY2020 Adjusted Operating Results FY2021 Earnings Guidance Key Guidance Drivers 2.92/share(1) 3.65 to 3.95/share Net Production 310-335 Bcfe (up 33% vs. FY20) 2.20/Mcf(2) (vs. 2.07/Mcf in FY20)…
Exploration & Production & Gathering Overview Seneca Resources Company, LLC National Fuel Gas Midstream Company, LLC 14
E&P and Gathering Growing Production within Disciplined Capital Program E&P Net Production (Bcfe) Near-Term Strategy 350 310-335 Appalachia 2nd drilling rig added in January 2021 300 California 241.5 (additional activity focused…
E&P and Gathering Significant Appalachian Acreage Position Eastern Development Area (EDA) Average Seneca gross production(1): 595 MMcf/d WDA 915,000 Acres(2) 300 potential Utica and Marcellus locations Large, highly-contiguous…
E&P and Gathering Eastern Development Area Seneca EDA Highlights EDA 270,000 Acres 1 Tioga County, PA 180 undeveloped Utica locations, including 40 return trip locations 90 undeveloped Marcellus locations Gathering…
E&P and Gathering EDA: Tioga County Development Synergistic Acquisition Provides Highly-Economic Utica and Marcellus Inventory Tioga Development Plan Significant Tioga County Acreage Position Acquired assets are contiguous to…
E&P and Gathering Integrated Development EDA Tioga Gathering NFG Tioga Gathering Systems Support Growing Seneca Production Current Systems In-Service Tioga County Gathering Systems Map Tioga Gathering System Empire Capacity: up…
E&P and Gathering EDA: Tioga County Development Production Underpinned by Firm Sales and Firm Transportation Contracts Tioga County Gas Marketing Strategy Tioga County Gross Firm Contract Volumes (MDth/d) Acquired production…
E&P and Gathering EDA: Lycoming County Development Marcellus Development in Lycoming County Fully Utilizes Firm Transportation Prolific Marcellus acreage with peer-leading well results 30 remaining Marcellus locations breakeven…
E&P and Gathering Integrated Development EDA Lycoming Gathering NFG Trout Run Gathering System Supports Seneca and Future Third-Party Development Current System In-Service Trout Run Gathering System Map Total Investment (to…
E&P and Gathering Western Development Area Marcellus Core Acreage vs. Utica Trend(1) WDA Highlights Large well inventory: Marcellus Shale: 600+ well locations remaining / 200,000 acres Utica Shale: 500+ potential locations…
E&P and Gathering WDA Development Plan Beechwood Development Area Provides 90 Potential Utica Locations with Strong Economics WDA Development Update WDA Potential RV-Beechwood Development Area WDA-CRV Area: producing from both…
E&P and Gathering Integrated Development WDA Gathering System Gathering System Build-Out Tailored to Accommodate Senecas WDA Development Clermont Gathering System Map Current System In-Service Capacity: 470 MMcf per day…
E&P and Gathering WDA Firm Transportation and Sales Capacity WDA Exit Capacity Supports Production and Enhances Consolidated Returns WDA Gas Marketing Strategy WDA Contracted Firm Transport and Gross Sales Volumes (MDth/d) 600…
E&P and Gathering Long-term Contracts Supporting Appalachian Production Seneca Appalachia Natural Gas Marketing Firm Contract / Transport Volumes (MDth/day) 1,200 1,000 Leidy South (Transco & NFG - Supply) Dominion 100,000…
E&P and Gathering Near-term Firm Sales Provide Market & Price Certainty Net Contracted Firm Sales / Transport Volumes (Dth per day) Contracted Index Price Differentials ( per Dth)(1) NYMEX Dawn Other Fixed Price 16,600 (0.85)…
E&P and Gathering California Oil Stable Oil Production Minimal Capital Investment Steady Free Cash Flow 1 Avg. Daily Production Location Formation Production Method (net Boe/d) East Coalinga/ 11 Temblor Primary 561 Other…
E&P and Gathering California Continued Focus on Integrating Renewable Energy Ongoing Investments in Solar Facilities Offset Operational Power Needs North Midway Sunset Field (2016) Bakersfield Office (2018) South Midway Sunset Field…
E&P and Gathering Fiscal 2021 Production and Price Certainty 216 Bcf of Appalachian Production Protected by Firm Sales 165 Bcf locked-in realizing net 2.18/Mcf (1) 21 Bcf of no-cost collars with 2.89/Mcf ceiling(2) 30 Bcf of…
E&P and Gathering Hedge Positions and Prices Production Supported by Strong Hedge Positions in Fiscal 2021 and 2022 Natural Gas - MMDth, /MMBtu Crude Oil- MBbl, /Bbl 191.6 114.6 2.63 1,079 Fiscal 2021 962 Fiscal 2021…
E&P and Gathering Acquisition Drives Expected Decrease in E&P Operating Costs Increased Scale and Highly-Synergistic Operations Expected to Drive Lower Cash Unit Costs Seneca Cash OpEx (/Mcfe) Appalachia LOE (/Mcfe)(3)…
Pipeline & Storage Overview National Fuel Gas Supply Corporation Empire Pipeline, Inc. 34
Pipeline & Storage Pipeline & Storage Segment Overview National Fuel Gas Supply Corporation Contracted Capacity(1): Firm Transportation: 3,443 MDth per day Firm Storage: 70,693 Mdth (fully subscribed) Rate Base(2): 944 million…
Pipeline & Storage Empire North Project Fully Subscribed Project Provides 205,000 Dth/day of Incremental Firm Transportation In-service date: September 15, 2020 Est. capital cost: 129 million Annual revenues: 27 million…
Pipeline & Storage FM100 Project - Consolidated Benefit for NFG Project expected to provide long-term earnings 330,000 Dth/d of new transportation capacity from uplift to Seneca, Supply Corp. and Gathering WDA and EDA acreage…
Pipeline & Storage FM100 Project Significant Investment by Supply Corp. Estimated capital cost: 279 million Expansion facilities: 159 million Modernization facilities: 120 million Facilities (all in Pennsylvania) include:…
Pipeline & Storage Continued Expansion of the Supply Corp. System Line N to Monaca Project Project: Firm transportation service to a new ethane cracker facility being built by Shell Chemical Appalachia, LLC In-service date:…
Pipeline & Storage Northern Access Project Delivery points: 350,000 Dth/d to Chippawa (TCPL interconnect) 140,000 Dth/d to East Aurora (TGP 200 line) Regulatory/legal status: To Dawn Feb. 2017 FERC 7(c) certificate issued…
Pipeline & Storage Pipeline & Storage Customer Mix Customer Transportation by Shipper Type(1) Affiliated Customer Mix (Contracted Capacity) Outside Affiliated Non-Affiliated Pipeline End 9% User 8% 26% Producer 52% 34%…
Utility Overview National Fuel Gas Distribution Corporation 42
Utility New York & Pennsylvania Service Territories New York Total Customers(1): 534,000 ROE: 8.7% (NY PSC Rate Case Order, April 2017) Rate Mechanisms: o Revenue Decoupling o Weather Normalization o Low Income Rates o…
Utility 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…
Utility Utility Continues its Significant Investments in Safety Ongoing system modernization program drives increased rate base, with tracker in NY allowing recovery of pipeline replacement costs 125.0 Capital Expenditures for…
Utility Ongoing Pipeline Replacement & Modernization Utility Mains by Material(1) Miles of Utility Main Pipeline Replaced Wrought Iron 159 158 154 Coated Bare 146 144 Cast Iron NY 9,758 miles Plastic Wrought Coated Bare…
Utility A Proven History of Controlling Costs Utility O&M Expense and Non-Service Pension Costs ( millions)(1) 250 O&M Expense (GAAP) Non-Service Pension Costs 200 206 208 195 197 196 200 189 27 27 31 28 179 181 150 166…
Utility Promoting Renewable Natural Gas Through Fiscal 2020 October 2020 Ongoing Petitioned NY PSC to Provided three RNG include RNG in the Continue to advance RNG grants for 1.2 million supply mix and recover and evaluate…
Consolidated Financial Overview Upstream I Midstream I Downstream 49
Disciplined, Flexible Capital Allocation Capital Expenditures by Segment ( millions)(1) 1,000 (2) (3) Exploration & Production Gathering Pipeline & Storage Utility 781 720-830 750 719 583 350-390 492 384 500 455 366 356…
Maintaining Strong Balance Sheet & Liquidity Net Debt / Adjusted EBITDA(1) Capitalization 3.08 x 2.96 x 2.51 x 2.45 x 2.47 x 2.61 x Total Equity Total 44% Debt Expect reduction 56% to 2.75x in FY21 2016 2017 2018 2019…
Appendix 53 53
Appendix Safe Harbor For Forward Looking Statements This presentation may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, including statements regarding future prospects, plans,…
Appendix Consolidated Seneca and Gathering Economics Average Realized Pricing (2) Locations Average 15% IRR (3) Completed EUR Prospect Reservoir Remaining CAPEX 2.50 2.25 2.00 Realized Lateral (Bcf/1000') to Be Drilled…
Appendix Hedge Positions and Prices Natural Gas Volumes in thousand MMBtu; Prices in /MMBtu Fiscal 2021 (Remain.) Fiscal 2022 Fiscal 2023 Avg. Avg. Avg. Volume Price Volume Price Volume Price NYMEX Swaps 114,630 2.63 140,630 2.65…
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 GAAP…
Appendix Non-GAAP Reconciliations Adjusted EBITDA (1) Reconciliation of Adjusted EBITDA to Consolidated Net Income ( Thousands) 12-Months FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Ended 12/31/20 Total Adjusted EBITDA Exploration…
Appendix Non-GAAP Reconciliations Adjusted EBITDA, by Segment Reconciliation of Adjusted EBITDA to Net Income, by Segment ( Thousands) FY21 FY20 12-Months FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FYTD FYTD Ended 12/31/20 Exploration…
Appendix Non-GAAP Reconciliations Adjusted Operating Results Fiscal Year Ended Three Months Ended September 30, December 31, (in thousands except per share amounts) 2020 2019 (in thousands except per share amounts) 2020 2019 Reported…
Appendix Non-GAAP Reconciliations Capital Expenditures Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures ( Thousands) FY 2021 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Guidance Capital Expenditures…
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, 2020…
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