Investor Presentation Q4 Fiscal 2022 Update November 3, 2022
National Fuel is committed to the safe and environmentally conscious development, transportation, storage, and distribution of natural gas resources. For additional information, please review our Corporate Responsibility Report. 2
NFG: A Diversified, Integrated Natural Gas Company Upstream Developing our large, high-quality Exploration & acreage position in Marcellus & Production Utica shales 54% of NFG 1.2 Million 960 MMcf/day Net acres in Net Appalachian…
Why National Fuel Diversified Assets Provide Stability and Long-Term Growth Opportunities 1 Integrated Model Enhances Shareholder Value 2 Expect to Generate Significant Free Cash Flow in Fiscal 2023 and Beyond 3 Optimization…
1 Integrated Model Enhances Shareholder Value . . . Benefits of National Fuels Geographic and Operational Integration Integrated Structure: Upstream Drives Synergies: Exploration & Ability to adjust to changing commodity Production…
. . . 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 Consolidated Business Expected to Generate Significant Free Cash Flow . . . . . . In Fiscal 2023. . . . . . With Sustainable, Growing Free Cash Flow Generation Annualized Dividend Expected Over the Long-Term Free Cash Flow 450…
3 Optimization of Interstate Pipeline Drives Future Expected Opportunities FM100: TCPL Canada/Dawn TGP - Hopewell Placed into service December 2021 50 MM in Total Project-Related Revenues (Expansion & Modernization) Ongoing…
4 Over Half Century of Dividend Growth 52 Years 120 Years 1.90 2.9% Consecutive Dividend Increases Consecutive Payments per share yield(1) 1.4 Billion 4.4% Dividend payments over last 10 years 2022 Dividend Increase 0.19…
5 Focused on Corporate Responsibility and ESG Corporate Responsibility & Climate Report provides Enhanced ESG Disclosures Responsive to Key Stakeholder Priorities Enhanced Diversity Disclosures continued workforce EEO-1 diversity…
Emissions Reduction Targets and Initiatives Significant Methane Intensity and Greenhouse Gas Emissions Reduction Targets Across the Reduction Ongoing Sustainability Initiatives Energy Value Chain(1) Since 2020 Exploration &…
Fourth Quarter Fiscal 2022 Results and Drivers Adjusted Operating Results (/share)(1) Q4 FY 2021 Q4 FY 2022 Major Drivers Natural Gas Pricing 1.19 (/Mcfe)(2) 2.37 2.84 Natural Gas Prices 0.95 Exploration & 0.95…
Fiscal 2022 Highlights Adjusted EBITDA 1.2 billion(1) Up 23% vs. FY21(1) Grew shareholder distribution for 52nd consecutive year and Dividend 1.90 per share doubled rate of annual dividend increase Up 8% vs. FY21; highest output…
Earnings Guidance FY2022 Adjusted Operating Results FY2023 Earnings Guidance Key Guidance Drivers 5.88/share(1) 6.40 to 6.90/share Net Production 370-390 Bcfe (up 8% vs. FY22) Realized natural gas prices (after-hedge) 3.05/Mcf(2)…
Exploration & Production & Gathering Overview Seneca Resources Company, LLC National Fuel Gas Midstream Company, LLC 16
E&P and Gathering Growing Production within Disciplined Capital Program E&P Net Production (Bcfe) Near-Term Strategy 400 Continue two rig development program with focus 300 on maximizing returns and cash flows, targeting…
E&P and Gathering Significant Appalachian Acreage Position 1,000 Economic Drilling Locations at 3.50 NYMEX Prices(1) (( )) Decades of highly-economic inventory (40 wells per year at current 2-rig pace) Large, contiguous…
E&P and Gathering Eastern Development Area Seneca EDA Highlights EDA 270,000 Acres 1 Tioga County, PA 140 Utica future development locations 80 Marcellus future development locations Gathering infrastructure: NFG Tioga gathering…
E&P and Gathering EDA: Tioga County Development Large Contiguous Acreage Position, with Highly-Economic Utica and Marcellus Inventory Tioga Development Plan Significant Tioga County Acreage Position Significant additional assets…
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 Total Investment (to…
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) 500 Production…
E&P and Gathering EDA: Lycoming County Development Marcellus Development in Lycoming County Fully Utilizes Valuable Firm Transportation Prolific Marcellus acreage with average EUR of 2.5-3.0 Bcf / 1,000 ft 30 Marcellus future…
E&P and Gathering Integrated Development EDA Lycoming Gathering NFG Trout Run Gathering System Supports Seneca and Third-Party Development Current System In-Service Trout Run Gathering System Map Total Investment (to date): 275…
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 Integrated Development WDA Gathering System Gathering System Build-Out Tailored to Accommodate Senecas WDA Development Clermont Gathering System Map Current System In-Service Capacity: 750 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) 500…
E&P and Gathering Long-term Contracts Supporting Appalachian Production Seneca Appalachia Natural Gas Marketing Firm Contract / Transport Volumes (MDth/day) 1,200 Firm Sales Contracts(1) 1,000 Leidy South (Transco & NFG -…
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 Capped Fixed Price 35,100…
E&P and Gathering Fiscal 2023 Production Profile 335 Bcf of Appalachian Production Protected by Firm Sales 185 Bcf locked-in realizing 2.31/Mcf (1), net of transportation 69 Bcf of no-cost collars with 3.20/Mcf floor(2) 81 Bcf of…
E&P and Gathering Continued Decrease in E&P Operating Costs Increased Scale and Highly-Contiguous Operations Expected to Drive Lower Cash Unit Costs Seneca Cash OpEx (/Mcfe) 1.40 Operating 1.32 results excluding 0.14 1.22…
E&P and Gathering Sustainability Initiatives Independently Certified Gas Responsible Gas Certifications Equitable Origin MiQ (100% of Appalachian Assets - Certified December 2021) (100% of Appalachian Assets - Certified August…
Pipeline & Storage Overview National Fuel Gas Supply Corporation Empire Pipeline, Inc. 33
Pipeline & Storage Pipeline & Storage Segment Overview National Fuel Gas Supply Corporation Contracted Capacity(1): Firm Transportation: 3,284 MDth per day Firm Storage: 70,693 MDth (fully subscribed) Rate Base(2): 1,173 million…
Pipeline & Storage FM100 Project Significant Investment by Supply Corp. In-service date: December 1, 2021(1) Capital cost: 230 million Annual revenue: 50 million(2) Underpinned by long-term lease agreement with Transco (15…
Pipeline & Storage Continued Expansion of the Supply Corp. Line N System Recent Expansion of Line N Over the past three years, the company has successfully placed into service several projects which have added: TGP 219…
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 Pipeline Affiliated Non-Affiliated 9% End User 8% 26% 52% Marketer…
Utility Overview National Fuel Gas Distribution Corporation 39
Utility New York & Pennsylvania Service Territories New York Total Customers(1): 539,000 ROE: 8.7% (NY PSC Rate Case Order, April 2017)(2) Rate Mechanisms: o Revenue Decoupling o Weather Normalization o Low Income Rates o…
Utility Pennsylvania Rate Case On October 28, 2022, National Fuel Gas Distribution Corporation filed a request with the Pennsylvania Public Utility Commission (PA PUC) to amend its tariff and increase its base rates. National Fuels…
Utility Utility Continues its Significant Investments in Safety Long-Standing Focus on Distribution System Safety and Reliability 140.0 (1) Capital Expenditures for Safety Total Capital Expenditures 110-130 Utility Capital…
Utility Long-Standing Pipeline Replacement & Modernization Utility Mains by Material(1) Miles of Utility Main Pipeline Replaced Wrought Iron 159 158 154 156 Coated Bare 144 NY Cast Iron 9,782 miles Plastic Bare Wrought…
Utility Utility Targeting Substantial Emissions Reductions Significant Reductions in Utility GHG Emissions to Date, GHG Reduction Targets, Continuing Focus on Lowering Driven by System Modernization Efforts Carbon Footprint…
Utility Promoting Renewable Natural Gas and Hydrogen Through Fiscal 2020 October 2020 July 2021 Ongoing Petitioned NY PSC to include Accepted first RNG deliveries Awarded three RNG grants into NY system from Continue to advance…
Consolidated Financial Overview Upstream I Midstream I Downstream 46
Disciplined, Flexible Capital Allocation Capital Expenditures by Segment ( millions)(1) 1,000 Exploration & Production (2) Gathering (3) Pipeline & Storage Utility 830-940 829 781 770 750 719 583 525-575 381 492 384 566…
Maintaining Strong Balance Sheet & Liquidity Net Debt / Adjusted EBITDA(1) Capitalization 3.08 x Expect Excluding AOCI, further 2.61 x 2.72 x reduction in Equity as percentage 2.45 x 2.47 x of Total Equity Total 2.22 x FY23…
Appendix 50
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 Hedge Positions and Prices (1) Fixed price physical sales exclude joint development partners share of fixed price contract WDA volumes as specified under the joint development agreement. 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 GAAP…
Appendix Non-GAAP Reconciliations Adjusted EBITDA (1) Reconciliation of Adjusted EBITDA to Consolidated Net Income ( Thousands) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Total Adjusted EBITDA Exploration & Production…
Appendix Non-GAAP Reconciliations Adjusted EBITDA, by Segment Reconciliation of Adjusted EBITDA to Net Income, by Segment ( Thousands) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Exploration and Production Segment Reported GAAP…
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