NFG

It has been about a month since the last earnings report for Occidental Petroleum (OXY). Shares have added about 8.2% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Occidental due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Occidental Petroleum Corporation before we dive into how investors and analysts have reacted as of late. Occidental Q2 Earnings Beat on Oil Prices and Midstream StrengthOccidental Petroleum Corporation reported second-quarter 2026 adjusted earnings of $2.40 per share, surging 823.1% year over year and beating the Zacks Consensus Estimate of $1.92 by 25%. Higher realized crude oil prices and a sharp improvement in Midstream and Marketing supported results. Midstream and Marketing reported adjusted pre-tax income of $961 million, exceeding the high end of the company’s guidance. The segment posted adjusted income of $106 million in the year-ago quarter.Reported earnings were $2.75 per share compared with 26 cents a year earlier. Revenues climbed 57.1% to $8.33 billion and surpassed the Zacks Consensus Estimate of $7.18 billion by 16%.Oil and Gas revenues totaled $6.88 billion, up 37.4% from $5.01 billion in the year-ago quarter. Higher commodity realizations more than offset weakness in domestic natural gas pricing. Midstream and Marketing revenues jumped 240% year over year to $1.33 billion. Interest, dividends and other income totaled $82 million compared with $43 million a year earlier. Worldwide production reached 1,433 thousand barrels of oil equivalent per day (Mboe/d), exceeding the high end of management’s guidance of 1,390-1,430 Mboe/d. Strong domestic performance helped total production rise 2.4% year over year. Permian Resources production averaged 804 Mboe/d, up from 770 Mboe/d in the second quarter of 2025. Production from the region also exceeded the guidance of 783-803 Mboe/d.Gulf of America output rose to 144 Mboe/d from 125 Mboe/d, benefiting from strong base performance and maintenance optimization. Rockies and Other Domestic production increased to 280 Mboe/d from 272 Mboe/d. International production declined to 205 Mboe/d from 233 Mboe/d, partly reflecting disruptions in the Middle East. Occidental’s worldwide realized crude oil price increased 51.8% year over year to $96.78 per barrel. The average WTI and Brent marker prices were $92.79 and $97.06 per barrel, respectively, up from $63.74 and $66.59.Worldwide realized natural gas liquids prices advanced 19% to $24.64 per barrel. However, domestic realized natural gas prices were negative $1.48 per thousand cubic feet in contrast to a positive $1.33 in the prior-year period, limiting part of the commodity-price benefit. Total costs and other deductions declined 4% year over year to $4.55 billion. Oil and gas lease operating expenses slipped 1.6% to $1.12 billion, while transportation and gathering costs increased 3.3% to $463 million. Depreciation, depletion and amortization expenses rose 1.3% to $1.85 billion. Interest and debt expense fell 60.1% to $108 million, reflecting the company’s accelerated debt-reduction efforts. In the first half of 2026, the company brought online 256 wells in the Permian and 84 wells in the Rockies region, which boosted domestic production volumes. In the second quarter, operating cash flow from continuing operations totaled $5.09 billion. Excluding working-capital movements, operating cash flow was $4.61 billion. Capital expenditures totaled $1.59 billion, resulting in free cash flow before working capital of $3.02 billion.Occidental reduced principal debt by $1.9 billion during the quarter to $11.8 billion. The company retired $8.6 billion of debt during the first half of 2026 and ended June with $4.15 billion in cash and cash equivalents. Management also raised the quarterly dividend by 8% to 28 cents per share. For 2026, Occidental now expects total production of 1,423-1,453 Mboe/d compared with earlier expectation of 1,410-1,460 Mboe/d. The outlook includes Permian production of 801-817 Mboe/d and Gulf of America production of 132-136 Mboe/d. In 2026, OXY plans to bring between 485 and 515 wells online in the Permian and 150-170 wells in the Rockies region.The company projects full-year Midstream pre-tax income of $1.3-$1.5 billion. Net capital expenditures are expected between $5.5 billion and $5.9 billion, while adjusted interest expense is forecasted at approximately $680 million. Exploration expenses are expected to be $290 million.For the third quarter of 2026, OXY expects production in the band of 1,400-1,440 Mboe/d. Output from the Permian Resources segment is anticipated at 795-815 Mboe/d. Occidental expects international production volumes for the third quarter of 2026 to be in the range of 225-231 Mboe/d. It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 18.97% due to these changes. At this time, Occidental has a nice Growth Score of B, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Occidental has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Occidental is part of the Zacks Oil and Gas - Integrated - United States industry. Over the past month, National Fuel Gas (NFG), a stock from the same industry, has gained 3.6%. The company reported its results for the quarter ended June 2026 more than a month ago. National Fuel Gas reported revenues of $537.5 million in the last reported quarter, representing a year-over-year change of +1.1%. EPS of $1.54 for the same period compares with $1.64 a year ago. National Fuel Gas is expected to post earnings of $1.18 per share for the current quarter, representing a year-over-year change of -3.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -6.4%. National Fuel Gas has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report National Fuel Gas Company (NFG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for National Fuel Gas (NFG). Shares have added about 0.5% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is National Fuel Gas due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for National Fuel Gas Company before we dive into how investors and analysts have reacted as of late. National Fuel Gas Q3 Earnings Surpass Estimates, Revenues Increase Y/YNational Fuel Gas Company reported third-quarter fiscal 2026 adjusted earnings of $1.54 per share, which beat the Zacks Consensus Estimate of $1.47 by 4.8%. However, earnings declined 6.1% from $1.64 in the year-ago quarter.GAAP earnings for the reported quarter were $1.45 per share compared with $1.64 in the year-ago quarter. NFG reported sales of $537.5 million, which missed the consensus estimate of $564 million by 4.7%. However, the top line increased 1.1% from the prior-year recorded figure of $531.8 million. Utility: Revenues totaled $165.42 million, up 5.1% from $157.45 million in the year-ago quarter.Integrated Upstream and Gathering: Revenues totaled $302.52 million, down 1.3% from $306.4 million in the year-ago quarter. Lower natural gas production more than offset the benefits of improved realized pricing, gathering revenues and other operating revenues.Pipeline and Storage: Revenues amounted to $69.56 million, up 2.3% from $67.98 million recorded in the year-ago quarter, supported by higher transportation revenues from new long-term contracts. Total operating expenses increased 8.9% year over year to $328.6 million. Operation and maintenance expenses rose across all three operating segments, with the sharpest increase in the Integrated Upstream and Gathering.Operating income totaled $208.9 million, down 9.3% from $230.3 million in the year-ago quarter.Interest expense on long-term debt totaled $33.2 million, down 3.4% from $34.3 million in the year-ago period.Seneca produced 104.3 billion cubic feet of natural gas during the reported quarter, down 7% from the prior-year period. Production from recently completed wells was insufficient to offset natural declines from existing wells. As of June 30, 2026, National Fuel Gas had cash and temporary cash investments of $1.24 billion compared with $43.2 million as of Sept. 30, 2025. Net cash provided by operating activities totaled $1.03 billion for the first nine months of fiscal 2026, up 20% year over year. For the first nine months of fiscal 2026, ended June 30 capital expenditures rose 21.9 % year over year to $764.5 million.The company completed the financing needed for its $2.62-billion acquisition of CenterPoint Energy's Ohio natural gas utility and received final regulatory approval. The transaction remains on track to close Oct. 1, 2026.National Fuel also increased its annual dividend rate by 4% to $2.22 per share. The company has now paid dividends for 124 consecutive years and raised its annual dividend for 56 straight years. National Fuel Gas lowered its fiscal 2026 adjusted earnings guidance to $7.40-$7.60 per share from $7.45-$7.75. The Zacks Consensus Estimate for fiscal 2026 is currently pegged at $7.66. Production guidance was cut to 420-430 Bcf from 425-440 Bcf. The company cited ongoing appraisal work and greater-than-expected well interactions associated with more intensive completion design testing.Consolidated capital expenditure guidance was raised to $1-$1.08 billion from $955 million to $1.07 billion. Pipeline and Storage spending is now projected at $235-$265 million, while Integrated Upstream and Gathering expenditures are expected between $580 million and $605 million, excluding discretionary land purchases. In the past month, investors have witnessed a flat trend in fresh estimates. At this time, National Fuel Gas has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. National Fuel Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report National Fuel Gas Company (NFG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026 at 12:00 p.m. ET Director of Investor Relations - Ryan Vossler President and Chief Executive Officer - David P. Bauer Treasurer and Chief Financial Officer - Timothy J. Silverstein President of Seneca Resources and National Fuel Midstream - Justin Loweth Operator: Hello, everyone. Thank you for joining us, and welcome to the National Fuel Gas Company Third Quarter Fiscal 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Ryan Vossler, Director of Investor Relations. Please go ahead. Ryan Vossler: Thank you, and good morning. Apologies, we had temporary moderator challenges. So we appreciate you joining us on today's conference call for a discussion of last evening's earnings release. With us on the call from National Fuel Gas Company are Dave Bauer, President and Chief Executive Officer; Tim Silverstein, Treasurer and Chief Financial Officer; and Justin Loweth, President of Seneca Resources and National Fuel Midstream. At the end of today's prepared remarks, we will open the discussion to questions. The third quarter fiscal 2026 earnings release and July investor presentation have been posted on our Investor Relations website. We may refer to these materials during today's call. We would like to remind you that today's teleconference will contain forward-looking statements. While National Fuel's expectations, beliefs and projections are made in good faith and are believed to have a reasonable basis, actual results may differ materially. These statements speak only as of the date on which they are made, and you may refer to last evening's earnings release for a listing of certain specific risk factors. With that, I'll turn it over to Dave Bauer. David Bauer: Thank you, Ryan, and good morning, everyone. Before I get to the update on our business, I'd like to welcome Ryan Vossler to our IR team. He's part of our corporate strategy group and is pinch-hitting in the Investor Relations role for a few quarters while Natalie is on maternity leave. And on that note, congrats to Natalie on the new addition. We wish them well. Moving to results for the quarter. Last night, we reported adjusted earnings per share of $1.54, which was generally in line with our expectations. Tim and Justin will have more on the quarterly results and the outlook for the remainder of the fiscal year later in the call. I'll focus on the strong long-term outlook for National Fuel and the significant opportunities we see across our businesses to continue driving long-term shareholder value. At the regulated businesses, increasing demand for natural gas is driving further interest and expansions on our interstate pipeline systems. We're also nearing the finish line with respect to the closing of our acquisition of CenterPoint's Ohio Gas utilities. These growth catalysts, combined with the pending rate-making activities in our various jurisdictions, make the outlook for the regulated businesses outstanding. On the Integrated Upstream and Gathering side, the future looks equally promising. We control a significant acreage position in Tioga County, which is one of the few remaining premier natural gas resources in the country with significant undeveloped acreage. We expect the discretionary leasing program we announced last night will further bolster our footprint in the area, increase development plan optionality and add additional core locations to our nearly 20-year runway of existing low-breakeven inventory. This advantaged acreage position, along with our history of delivering significant capital efficiency improvements across our fully integrated operations, makes us excited about the future of IUG. With this strong foundation for growth across the company, we've updated our long-term outlook. Assuming the current forward curve for natural gas prices, we now expect earnings per share to grow between 7% and 10% per year on average through fiscal '29. More importantly, we expect to achieve this level of growth while also generating between $1 billion and $1.5 billion of free cash flow over the same period. This combination of significant earnings growth and free cash flow generation is a highly compelling value proposition, one that few energy companies can match. While top-tier utilities are seeing similar growth, most need to raise a substantial amount of equity to underwrite it. National Fuel is unique in that we can produce meaningful earnings growth with internally generated cash flows. With respect to our upstream operations, our industry-leading cost structure, high-quality marketing portfolio and commitment to hedging through commodity price cycles have allowed us to sustain strong cash flow margins relative to peers. These strong margins, along with our improving trend in capital efficiency, makes us confident in our ability to grow both per share earnings and free cash flow. Our confidence in the company's outlook is supported by the tangible results we've seen across the system. First, as we announced last night, we've expanded the size of our Line N system Upgrade Project by 200,000 dekatherms per day. In total, the revised project, which has a target in-service date of November 2028, will now add 294,000 dekatherms of capacity on the Supply Corporation system. The incremental capacity is contracted for 20 years and will support the initial phase of the coal-to-gas conversion at the Shippingport Power Station. We now have more than 400,000 dekatherms per day contracted to the Shippingport site, supporting both behind-the-meter power generation as well as power generation into the PJM interconnection. Over time, gas demand at this site has the potential to nearly double, and we are well positioned to support that growth through future expansion projects. In addition to Shippingport, we're continuing to see interest in further expansions of our Line N system in Southwest Pennsylvania. This includes substantial demand for capacity to support both data center and power generation facilities. We continue to engage in discussions with developers to evaluate and advance these projects and hope to have further projects to announce. We're also active on the rate-making front with rate cases at both our Pennsylvania utility and Supply Corporation. Starting with supply. We're in the early stages of the rate case we filed in the second calendar quarter with typical discovery processes underway. Settlement discussions should begin in September, and I expect to have more to say on this in the fall as we work towards resolution with FERC and our shippers. Turning to Pennsylvania. We continue to progress through the utility rate case we filed earlier this year. We have the lowest delivery rates in the state by a wide margin and both our short- and long-term historical rate increases have been well below the overall rate of inflation. On top of that, the increase we're requesting is quite modest. So our initial expectation was that it would be straightforward to reach a settlement. Unfortunately, however, there's been some recent political pressure that has made it difficult to find common ground with all the parties involved. As a result, the case has been fully briefed, and we expect a recommended decision from the ALJ next month. We remain optimistic that with our long-standing focus on limiting consumer rate increases, the commission will reach an outcome that balances our need to further invest in system safety and reliability with customer affordability. New base rates are expected to take effect in November, and the reset of our DIS mechanism should provide additional incremental revenues beginning in fiscal '28. In New York, we're entering the final year of our 3-year rate plan. We've been working with the commission staff to develop a new system modernization tracker that we believe can keep us out of a rate case for the next year or 2. We filed a petition with the commission in May for a mechanism that, like prior iterations, would allow us to continue to earn a return on our modernization investments in a more real-time fashion. More importantly, we expect to accomplish this without increasing customer rates, which is a real win-win. We anticipate a commission order later in the summer. We've also seen great progress on our pending Ohio utility acquisition. In June, we received an order from the Ohio Commission approving the acquisition. Also, our $1.5 billion long-term debt issuance in June completes our financing needs for the closing of the transaction. Our teams are working closely with CenterPoint to successfully integrate the business into National Fuel, and we remain on track to close in the calendar fourth quarter. Bringing it all together, we're excited about the outlook for our company. Each of our businesses is positioned to deliver meaningful growth in earnings and free cash flow. In addition, our utility acquisition will rebalance our business mix and further strengthen our investment-grade credit profile. The enviable combination of growing earnings, enhanced free cash flow generation and a strong credit profile makes National Fuel very well positioned to deliver long-term value to shareholders. With that, I'll turn the call over to Tim. Timothy Silverstein: Thanks, Dave, and good morning, everyone. Adjusted earnings for the quarter of $1.54 per share were down $0.10 compared to the prior year. This resulted from lower production in our Integrated Upstream and Gathering business that more than offset stronger natural gas price realizations and hedge gains. At our regulated businesses, we continue to see top-line margin growth resulting from our multiyear rate plan in New York and revenue associated with the DIS mechanism in Pennsylvania. These benefits for the quarter were largely offset by higher operating costs compared to last year, driven by general inflation and 2 discrete items. First, if you recall in fiscal 2025, we had a sizable benefit related to our bad debt tracker in New York. Last year, we started accelerating write-offs as part of our rate settlement. With the bad debt tracker in place, we were able to reverse previously accrued expense, which will be recovered in a future rate proceeding. This led to a benefit that did not recur this year. Second, in Pennsylvania, we are seeing the impact of a new labor agreement with our field operations employees. This increase was included in our Pennsylvania rate case, so we'd expect minimal regulatory lag on recovering the associated costs. These items were anticipated and included in our prior guidance assumptions. Sticking with the fiscal year outlook, we are revising our 2026 adjusted EPS guidance to a range of $7.40 to $7.60 per share. This range primarily reflects our updated Seneca production outlook for the year, which we now project to be between 420 and 430 Bcfe. Our NYMEX natural gas assumption remains unchanged at $3 per MMBtu. We are well hedged for the balance of the fiscal year with price certainty on 75% of our production at prices well above the current strip. Turning to the framework for fiscal 2027. There's strong momentum across the company, most notably the continued growth of our regulated businesses, the Ohio gas utility acquisition and ongoing efficiency gains at Seneca. In the regulated businesses, we expect to have nearly $30 million of additional expansion revenue related to the Tioga Pathway Project and Shippingport lateral projects. Capital will come back down to more historic levels as these expansion projects are placed in service in November. We also anticipate seeing the impact of our pending rate proceedings in both Supply Corp and the utility Pennsylvania jurisdiction, with both expected to conclude during the calendar fourth quarter. In addition, with our ongoing multiyear rate plan in New York and the impact of the Ohio utility acquisition, we are expecting a material step-up in earnings from our regulated businesses. With respect to the Ohio gas utility acquisition, we continue to progress toward closing. We are targeting an October 1 closing date and are currently working diligently with CenterPoint to finalize the transition plan and related services, which we expect to complete in the coming weeks. That is a key piece of formalizing our fiscal 2027 guidance, which we plan to provide next quarter. In the Integrated Upstream and Gathering segment, we have a track record of capital efficiency improvements, which we expect to continue over the next several years. We see strong momentum on our development program that is projected to deliver further production growth with lower long-term capital spending. On natural gas pricing, current forward curve implies a more moderate price environment next year. The strong hedge book provides meaningful protection, although we do expect realized pricing to be lower than fiscal 2026 levels. We also expect cash unit costs to move modestly higher with inflation, while per unit DD&A continues to normalize towards our expected long-term rate in the low to mid-$0.80 area. Our current DD&A rate was temporarily lowered as a result of the ceiling test impairments recorded in fiscal 2025. Lastly, we will see the full impact of the capital markets activity completed during this fiscal year. As part of financing our acquisition, we issued 4.4 million shares of common equity and an incremental $1.2 billion of long-term debt. Combined with the impact of the $1.2 billion promissory note we will enter into with CenterPoint at closing, which carries a 6.5% coupon, the full-year impact of this financing will increase interest costs and the weighted average share count next year. I want to touch a bit more on the financing we completed in June, which was the largest debt capital raise in our company's history. This multi-tranche transaction satisfied the financing need for closing the Ohio utility acquisition. We raised a total of $1.5 billion across 3 equal tranches, including 3-, 5- and 10-year tenors with a weighted average interest rate of a little over 5%. We were very pleased with the transaction as we saw great demand for our bonds, which led to strong execution. Utilizing a portion of the proceeds, we redeemed a $300 million note that was set to mature in October, leading us to the incremental $1.2 billion of long-term debt that will be used to fund the acquisition at closing. From a balance sheet perspective, the current commodity price outlook is expected to place some near-term pressure on credit metrics, but our longer-term deleveraging trajectory remains intact. We maintain an active dialogue with the rating agencies, and they remain very constructive on our credit rating with our key metrics well within investment-grade thresholds. Given our strong outlook and solid financial footing, we continued our commitment to returning cash to shareholders. In June, our Board approved the 56th consecutive increase to our dividend. This also continued our streak of paying a dividend for 124 straight years. This is a track record matched by very few companies and something we believe can continue for many years to come. We truly are excited about the future. Backdrop for our industry is strong with demand for natural gas increasing, particularly in our own backyard. This is creating opportunities for growth across the company. We are also nearing the closing of our transformational Ohio gas utility acquisition that will double our utility rate base and significantly rebalance our overall business mix. Combining this with growing free cash flow generation, our prudent approach to managing the balance sheet and our commitment to returning cash to shareholders, we see a clear path to significant value creation over the coming years. With that, I'll turn the call over to Justin. Justin Loweth: Thanks, Tim, and good morning, everyone. Our Integrated Upstream and Gathering business delivered production and throughput of 104 Bcf and 117 Bcf during the quarter, respectively. While the quarter did not fully meet our expectations, it was an important period of progress across our development program. We believe we have one of the highest quality acreage positions in Appalachia. And one of the benefits of that is the ability to continuously refine and optimize our development program. As we test, learn and adapt, our conviction in the quality of our resource, depth of inventory and long-term opportunity only continues to strengthen. Earlier this year, we brought online our first Upper and Lower Utica co-development pad, an important milestone in optimizing development across multiple horizons. We generated valuable insights regarding reservoir quality, landing strategy, completion design and development sequencing that are already being incorporated into future plans. Most importantly, we are not seeing communication between the Upper and Lower Utica wells, providing another positive data point that the seismic is a highly effective frac barrier between the horizons. While the Upper Utica wells on the pad performed modestly below our original expectations, the results improved our understanding of how development should be tailored across the acreage position. This test reinforces our confidence in the ability to co-develop both zones across our Tioga acreage position and maximize the long-term value of our Integrated Upstream and Gathering business. As our understanding continues to evolve, our long-term plans are increasingly oriented around the Lower Utica first development program, which we believe provides the best pathway to optimize value over time. We are also refining our view of the Gen 4 Lower Utica completion design, which appears best suited for our highest quality rock where EURs may approach 3 Bcf per 1,000 foot, while the Gen 3 design may remain optimal in other areas. We will continue evaluating that approach with an Upper and Lower Utica co-development test at our taft pad, where all Lower Utica wells utilize a Gen 4 design in what we believe is an area with favorable rock quality. As part of our Gen 4 testing, we have observed frac interactions between offset Lower Utica wells that were greater than anticipated. As we test increasingly intensive completion designs, we continue to learn more about fracture behavior and development sequencing. While these interactions impacted near-term production, they also provided information that will improve future development plans, including adjustments to offset well stage design. Finally, the quarter also included an important operational milestone as our team successfully drilled a 4-well Lower Utica pad featuring the longest laterals in company history. Each well exceeds 30,000 feet of measured depth and approximately 18,000 to 20,000 feet of treatable lateral, highlighting our capability to drill longer wells, which in turn can drive continued capital efficiency improvements. Located in what we believe is excellent rock quality, we expect these wells to be among the most productive in our portfolio with the potential to sustain production rates approaching 40 million cubic feet per day per well for an extended period. We expect to bring these wells online in early 2027 and look forward to sharing the results as we continue evaluating the full potential of the Lower Utica. Over the balance of the fiscal year, we have a significant amount of drill activity planned. We are just starting to flow back the first set of wells on our 8-well Taft Utica pad. And in about a month, we expect to begin flowback on a 6-well Marcellus pad in Lycoming County. With 14 wells forecasted to come online during the fourth quarter, we expect to exit fiscal '26 at record daily production rates. Given the timing of these turn-in-lines, combined with the production impacts associated with some of the appraisal tests conducted throughout the year, we expect full year production to be between 420 Bcf and 430 Bcf. Stepping back, the common theme across these items is continuous improvement. The insights gained this quarter reinforce our confidence in the Tioga position and our ability to deliver sustained capital efficiency gains over time. While production growth remains an important outcome, we increasingly view capital efficiency as the best measure of long-term value creation. Put simply, our North Star is to generate more production per dollar of capital invested each year. Our ongoing well design testing between Gen 3 and Gen 4 is a good example of this philosophy, where we will continually optimize well design to drive overall program economics as opposed to biasing one side of the equation or the other. As reflected in our investor materials, we see a clear path to continued capital efficiency improvements, which we believe we can achieve through additional development optimization, improved well performance and our ongoing ability to leverage significant gathering infrastructure. Another strong signal of the value of our Tioga position can be seen in today's leasing market. Across Appalachia, operators have increasingly shifted toward organic inventory expansion. And we've recently seen increased leasing activity in Tioga County, where Seneca already holds a significant position. Based on the quality of our acreage in this area, we recognized this possibility several years ago and set in motion a plan to move quickly to secure additional acreage at the right time. We are well ahead of competitors through title work, landowner engagement and other long-lead-time efforts that allow us to move decisively as opportunities emerge. With our increased leasing efforts, we want to be more transparent about our approach and are now separating land spending between maintenance and discretionary categories. Given our success to date, only modest maintenance spending, about $15 million per year is required to support our 5-year development plan. The discretionary component represents a strategic investment to protect and expand what we believe is one of the premier natural gas inventory positions in North America. Over the next several years, we see an opportunity to deploy approximately $100 million to $200 million of discretionary capital to secure additional core acreage and further bolster our position in Tioga County. This strategy extends inventory runway, enhances development optionality and supports sustainable growth beyond our current planning horizon. As competitors increasingly recognize the value of this resource, we believe our early actions have positioned us exceptionally well to capture this opportunity. The remainder of our capital program remains largely on track, although we're modestly increasing our guidance at the midpoint, driven primarily by higher diesel and oil prices as well as schedule changes. In closing, the outlook for our Integrated Upstream and Gathering business is grounded in a simple belief. Great assets get even more valuable when they are continuously improved. Since 2023, we've consistently improved well performance, enhanced capital efficiency, secured premium firm transportation contracts and strengthen the long-term value of our inventory position. We believe that progress will continue in the years ahead as we optimize development, leverage our gathering infrastructure and further improve free cash flow generation. At the same time, the natural gas macro outlook remains very constructive over the long term with growing LNG exports and rising power generation demand, providing durable support for long term natural gas prices, while increasing local demand across Appalachia should contribute to improving basis differentials. When combined with the quality of our asset base and our continued focus on capital efficiency, we believe we are exceptionally well positioned to deliver long term value for shareholders. With that, I'll turn it back to the operator to open the line for questions. Operator: [Operator Instructions] Your first question comes from Tim Rezvan with KeyBanc Capital Markets. Timothy Rezvan: My first one, maybe for Justin. I appreciate the kind of the review of sort of the ops, I guess, challenges and opportunities that you faced last quarter. Can you talk a little more about the well interaction issue? Was this a pad that was spaced too tightly given the Gen 4 fracs? Was it interference with offset wells? And just kind of -- I know it's early and you don't drill a lot of wells every year, but how is this sort of changing your bigger picture ideas on development? Justin Loweth: Yes, Tim, thanks for your question. So from a holistic development, this is noise, not substance. The reality is we're early in the innings in terms of these significantly basically 50% upsized completions intensity jobs. And while historically, ourselves and other operators, you will see some interactions, we just saw it a little bit more than we would have expected. I guess a few things I want to make sure are very clear. One is these interactions were lower to lower. We're not seeing any interaction between uppers and lowers. So I think that's an important thing to know. I think the other thing that's becoming increasingly clear is that the effectiveness of this seismic barrier is pretty absolute, and that's also concentrating that Lower Utica energy within that zone, which can increase and grow your kind of half-length on the frac and ultimately what you're doing. So -- within the pad we're completing, we don't see sort of any interaction. We're zipper-fracking these wells, generally speaking. Any interaction there would actually be very positive. So it would just be principally related to offset wells. And look, our team is focused on it. We're already implementing practices that we believe will dampen further impacts as we go forward, but something we're going to continue to watch like everything. I mean at the end of the day, we want to really optimize our plans. We want to really dial in the right completion design. We want to focus on what's going to drive -- as I mentioned, what's going to drive the highest capital efficiency metrics we can over time. And that's going to -- that's all playing into how we think about the future. Timothy Rezvan: Okay. I appreciate the details there. And then as my follow-up, maybe this is for Tim. CenterPoint closing and it looks like just about 2 months. We see the new kind of leverage profile as the cash goes out the door. How do you think about capital allocation in terms of repurchases maybe when you kind of get past this? We've seen, obviously, a lot of the natural gas-related companies have sort of underperformed a bit this year. Given where the stock is today, how compelling is the repurchase opportunity maybe into this winter and next year? Timothy Silverstein: Yes, it's a fair question. I think our focus in the near-term will be around using the free cash flow to deleverage. As we've talked about in the past, our balance sheet will be in very good shape even after the closing of the transaction. But I think it's very important to rebuild the flexibility that we had going into this acquisition to allow us to be really strategic about long term capital allocation. But that being said, we do expect the amount of cash that Seneca is generating over time to get our metrics back to a really acceptable level pretty efficiently, which really opens the toolkit up for strategic opportunities, returning cash to shareholders through buybacks or other avenues. So I wouldn't expect anything in the near term. But as we look out into the future, certainly have flexibility to consider all tools in the toolkit, so to speak. Timothy Rezvan: Okay. Just to clarify, what do you view as sort of an appropriate leverage metric that you're looking to get to? Timothy Silverstein: Yes. I think longer term, we'd like to get back into the low 2s, 2 to 2.25 area. I think with our business mix, that gives us a lot of flexibility. And we think we can get there within the first few years. And once we get on that trajectory, I think that really opens up the aperture of things to consider from a capital allocation standpoint. Operator: Your next question comes from Neil Mehta with Goldman Sachs & Co. Neil Mehta: Yes. I really appreciate all the color. And Justin, I just wanted to circle up on this Gen 4 stuff. And so it sounds like your perspective is some of the wobbliness of some of the recent results is more timing and noise than anything structural. But can you just unpack it for us in a little bit more detail to give people more conviction? Justin Loweth: Yes. Thanks, Neil. I appreciate the question and the opportunity to talk about that more. Look, I've tried to speak to this over the last couple of calls and in some of our investor engagements. But what we're really optimizing for between Gen 3 and Gen 4 is something we talk with the team about is kind of bang for your buck. And so ultimately, what I mean when I say that is, is a more intensive and more -- a little bit more expensive completion, are you going to see enhanced productivity in a level to where it makes economic sense. And that's like point-blank kind of how we really focus on it. I think increasingly, what we're starting to see as we do more of these Gen 4 tests and we look at the results and we compare that back to our multivariate models and subsurface models to really understand how we see it. What we're seeing is that we've got good rock and we've got great rock across our broader portfolio. When we pump these larger jobs on our good rock, we're not seeing enough of an uplift to necessarily justify it in terms of what the ultimate productivity is. Conversely, when we're pumping it on our best of the best rock, it's supercharging it. And so I think what we're doing is just kind of learning as we go as we try to optimize what is the right design for this. And then this will play into kind of how we think about uppers long term, too, where there's increasing opportunity there to think about what the optimal completion design. But for now, focused on lowers. We think it's probably going to be a mix of Gen 3 and Gen 4. We may have a new Gen at some point that kind of blends the 2 or moves it around. And we're getting more dialed into where across our large acreage position, we think it makes most sense to utilize different designs. Hopefully, that's helpful, Neil, but that's the color I can share with you. Neil Mehta: It's fun to get into some of the details there. That's very helpful. And then the follow-up is Slide 6, you got this new adjusted EPS target of 7% to 10% through 2029. And so you guys have been around for a long time. That's a pretty big growth rate for a mature company. So just talk about what gets you to the top end of the range, what gets you to the bottom end of the range? And what's your conviction around this new disclosure? Timothy Silverstein: Yes, Neil, I can take that. From a conviction standpoint, we have a lot of it. We've historically been more conservative on our long term outlook and not putting out a ton of detail around it, but I think this shows the confidence that we have in our assets. This -- at the midpoint of this range, it's really underwriting our base plan. So think of that as 5% to 7% rate-base growth on the regulated, mid-single-digit production growth on the upstream side of the business, the integrated side of the business and really not redeploying that capital to anything other than deleveraging. So as I alluded to in Tim's question, longer term, I think we have a lot of flexibility to redeploy that capital to additional ways to grow per share earnings. Overall, what gets us to the high end of the range, things like future expansion projects, whether it's on the FERC-regulated pipes and continuing to expand in that Line N corridor. I think that will create potential upside there. Certainly, all of the learnings from Seneca and the continued optimization of their development program and the capital efficiency trends could push us higher. So I think this is a very achievable range. And as we go through time and continue to optimize our capital deployment, we think we can deliver this value, which really is a good strong investment thesis for our investors. Operator: [Operator Instructions] There are no further questions at this time. I will now pass the call back to Ryan Vossler for closing remarks. Ryan Vossler: Thank you, Rebecca. We'd like to thank everyone for taking the time to be with us this morning. Again, apologies for the slight moderator delay. A replay of the call will be available on the website later today. Please feel free to reach out if you have any follow-up questions. Otherwise, we look forward to speaking with you again next quarter. Thank you, and have a great day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in National Fuel Gas, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and National Fuel Gas wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. 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National Fuel Gas (NFG) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Plains All American Pipeline, L.P. PAA reported second-quarter 2026 adjusted earnings of 41 cents per unit, which surpassed the Zacks Consensus Estimate of 40 cents by 2.5%. The bottom line also increased 13.9% from the year-ago quarter’s 36 cents.The company reported GAAP earnings of $2.51 per unit compared with 21 cents in the year-ago period. Net sales of $17.69 billion beat the Zacks Consensus Estimate of $14.68 billion by 20.5%. The top line also increased 66.3% from the year-ago quarter’s figure of $10.64 billion. Plains All American Pipeline, L.P. price-consensus-eps-surprise-chart | Plains All American Pipeline, L.P. Quote Total costs and expenses were $17.3 billion, up 66.3% year over year. Purchases and related costs increased 69.7% to $16.56 billion, while field operating costs rose to $328 million from $286 million. General and administrative expenses increased to $110 million from $82 million.Operating income advanced 66.5% to $398 million. Net interest expense increased 15% to $153 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) attributable to PAA totaled $738 million, up 9.8% from $672 million in the prior-year quarter. Crude Oil adjusted EBITDA increased 19% year over year to $690 million. The improvement reflected contributions from the Cactus III pipeline acquisition, higher pipeline volumes, market opportunities and optimization initiatives.NGL adjusted EBITDA fell 54% year over year to $40 million, primarily because Plains closed the sale of substantially all of its Canadian NGL business on May 12, 2026. As of June 30, 2026, cash and cash equivalents were $1.06 billion compared with $0.33 billion as of Dec. 31, 2025.As of June 30, 2026, long-term debt was $8.43 billion compared with $10.7 billion as of Dec. 31, 2025.As of June 30, 2026, long-term debt-to-total book capitalization was 43% compared with 52% as of Dec. 31, 2025.PAA’s net cash provided by operating activities in the first six months of 2026 was $1.37 billion compared with $1.33 billion in the year-ago period. For 2026, Plains All American continues to expect adjusted EBITDA to be $2.88 billion. Adjusted free cash flow is anticipated to be $1.75 billion (excluding changes in assets and liabilities). PAA increased organic growth capital guidance to $400-$450 million from $350 million and reduced maintenance capital guidance to $175 million from $185 million. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. CNX Resources Corporation CNX reported second-quarter 2026 operating earnings of 72 cents per share, beating the Zacks Consensus Estimate of 57 cents by 26.3%. The bottom line increased 22% from the year-ago quarter’s 59 cents. The company reported revenues of $389 million, which missed the Zacks Consensus Estimate of $413 million by 5.8%.Murphy Oil Corporation MUR reported second-quarter 2026 adjusted earnings of $1.55 per share, up 474.1% year over year. The figure topped the Zacks Consensus Estimate of $1.51 per share by 2.7%.Revenues of $928.3 million increased 33.5% and beat the consensus estimate of $871 million by 6.5%.National Fuel Gas Company NFG reported third-quarter fiscal 2026 adjusted earnings of $1.54 per share, which beat the Zacks Consensus Estimate of $1.47 by 4.8%. However, earnings declined 6.1% from $1.64 in the year-ago quarter.NFG reported sales of $537.5 million, which missed the consensus estimate of $564 million by 4.7%. However, the top line increased 1.1% from the prior-year recorded figure of $531.8 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plains All American Pipeline, L.P. (PAA) : Free Stock Analysis Report CNX Resources Corporation. (CNX) : Free Stock Analysis Report Murphy Oil Corporation (MUR) : Free Stock Analysis Report National Fuel Gas Company (NFG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ormat Technologies Inc. ORA reported second-quarter 2026 adjusted earnings per share of 50 cents, which beat the Zacks Consensus Estimate of 29 cents by 72.4%. The bottom line also increased 4.2% from 48 cents in the year-ago quarter.The company reported GAAP earnings of 43 cents per share compared with 46 cents in the year-ago quarter. ORA generated revenues of $258.8 million, which topped the Zacks Consensus Estimate of $236 million by 9.7%. The top line also increased 10.6% year over year, driven by higher revenues from its electricity and energy storage segments. Ormat Technologies, Inc. price-consensus-eps-surprise-chart | Ormat Technologies, Inc. Quote Electricity: Revenues in this segment amounted to $169.3 million, up 5.8% year over year. This upside was primarily due to contributions from the Blue Mountain power plant, improved generation performance at the Olkaria and Puna facilities, higher energy rates at Puna and lower curtailments in the United States. The increase was partially offset by planned maintenance activities.Product: This segment’s revenues declined 21.6% to $46.7 million from the year-ago quarter’s level. The decrease was due to the timing of manufacturing and construction progress.Energy Storage: Revenues in this division amounted to $42.8 million, up 195.1% from the prior-year quarter’s figure. This was driven by the high availability of its assets, which allowed it to capitalize on strong merchant pricing in the PJM market, as well as new capacity additions over the past 12 months. Ormat Technologies’ total operating expenses, including research and development, selling and marketing, as well as general and administrative expenses, were $28.6 million, which rose 11.6% from the year-ago quarter’s level.Operating income declined 3.2% year over year to $34.2 million.The total cost of revenues was $190.1 million, up 7.3% year over year.Net interest expenses were $43.9 million, which rose 19.8% year over year. ORA had cash and cash equivalents of $513.7 million as of June 30, 2026, compared with $147.4 million as of Dec. 31, 2025. The company raised its 2026 revenue guidance to the range of $1.15-$1.20 billion from the prior projection of $1.11-$1.16 billion. The Zacks Consensus Estimate is pegged at $1.15 billion, which is in line with the lower end of the company’s guided range.Revenues for the Electricity segment are now anticipated in the band of $710-$725 million compared with the previous range of $715-$730 million. The Product segment’s revenue guidance was maintained at $300-$320 million. Revenues for the Energy Storage segment are now projected between $140 million and $155 million, up from the earlier forecast of $95-$110 million.ORA also raised its annual adjusted EBITDA guidance to the band of $630-$650 million from the prior range of $615-$645 million. Ormat Technologies currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. National Fuel Gas Company NFG reported third-quarter fiscal 2026 adjusted earnings of $1.54 per share, which beat the Zacks Consensus Estimate of $1.47 by 4.8%. However, earnings declined 6.1% from $1.64 in the year-ago quarter.NFG reported sales of $537.5 million, which missed the consensus estimate of $564 million by 4.7%. However, the top line increased 1.1% from the prior-year recorded figure of $531.8 million.Energy Transfer ET reported second-quarter 2026 earnings of 59 cents per unit, beating the Zacks Consensus Estimate of 39 cents by 51.28%. The bottom line increased 84.4% from 32 cents a year ago.Revenues of $34.33 billion surpassed the consensus estimate of $31.09 billion by 10.42% and climbed 78.4% year over year.CNX Resources Corporation CNX reported second-quarter 2026 operating earnings of 72 cents per share, beating the Zacks Consensus Estimate of 57 cents by 26.3%. The bottom line increased 22% from the year-ago quarter’s 59 cents.The company reported revenues of $389 million, which missed the Zacks Consensus Estimate of $413 million by 5.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report CNX Resources Corporation. (CNX) : Free Stock Analysis Report Energy Transfer LP (ET) : Free Stock Analysis Report National Fuel Gas Company (NFG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Clearway Energy Inc. CWEN reported second-quarter 2026 earnings of $1 per share, which surpassed the Zacks Consensus Estimate of 24 cents by 316.7%. The bottom line also increased substantially from 28 cents reported in the year-ago quarter. Operating revenues totaled $481 million, which beat the consensus estimate of $475 million by 1.3%. The top line increased 22.7% from $392 million recorded in the prior-year quarter. Clearway Energy, Inc. price-consensus-eps-surprise-chart | Clearway Energy, Inc. Quote Adjusted EBITDA rose 19.2% to $409 million from $343 million.Total operating costs and expenses increased 18.9% to $365 million from $307 million in the prior-year quarter.The cost of operations jumped to $149 million from $131 million. Depreciation, amortization and accretion expenses increased to $196 million from $163 million, while general and administrative expenses advanced to $15 million from $11 million.Interest expense increased 26.5% year over year to $105 million. Operating income rose 36.5% year over year to $116 million. Flexible Generation generated net income of $22 million compared to a net loss of $11 million in the prior-year quarter. However, adjusted EBITDA declined to $49 million from $52 million.Renewables & Storage reported net income of $55 million compared with $63 million a year earlier. Adjusted EBITDA increased 24% to $372 million from $300 million.Corporate recorded a net loss of $47 million compared with a loss of $40 million. Its adjusted EBITDA loss widened to $12 million from $9 million. Renewables & Storage generation increased 15.5% year over year to 6.87 million megawatt-hours.Solar generation rose 28% to 3.59 million megawatt-hours, while wind generation improved 4.4% to 3.28 million megawatt-hours. Clearway Energy’s sponsor offered the company the opportunity to invest in Honeycomb Phase II, a 210-megawatt (MW) energy-storage portfolio in Utah expected to begin commercial operations in 2027. The potential corporate capital commitment is estimated at approximately $110 million.The company also highlighted the 975 MW Chimney Canyon solar and battery-storage project in Arizona. Clearway Energy estimates that its potential investment could total roughly $350 million, subject to a future dropdown offer and approval.The company completed power purchase agreement restructurings for the Elbow Creek and Langford wind facilities. Clearway Energy had cash and cash equivalents of $251 million as of June 30, 2026 compared with $231 million as of Dec. 31, 2025.Total liquidity as of June 30, 2026 was $0.99 billion compared with $1.06 billion recorded as of Dec. 31, 2025.Long-term debt as of June 30, 2026 amounted to $8.49 billion compared with $7.9 billion as of Dec. 31, 2025.Net cash provided by operating activities in the first six months of 2026 was $615 million compared with $286 million in the year-ago period. Clearway Energy reduced its full-year 2026 cash available for distribution (CAFD) guidance to $430-$470 million from the prior range of $470-$510 million.Adjusted EBITDA is now expected between $1.39 billion and $1.43 billion, down from the previous range of $1.44-$1.48 billion. Cash from operating activities is projected between $956 million and $996 million.The company projects CAFD to lie in the range of $2.90-$3.10 per share for the period, reiterating 2030. CWEN currently has a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Ormat Technologies Inc. ORA reported second-quarter 2026 adjusted earnings per share of 50 cents, which beat the Zacks Consensus Estimate of 29 cents by 72.4%. The bottom line also increased 4.2% from 48 cents in the year-ago quarter. ORA generated revenues of $258.8 million, which topped the Zacks Consensus Estimate of $236 million by 9.7%. The top line also improved 10.6% year over year.National Fuel Gas Company NFG reported third-quarter fiscal 2026 adjusted earnings of $1.54 per share, which beat the Zacks Consensus Estimate of $1.47 by 4.8%. However, earnings declined 6.1% from $1.64 in the year-ago quarter.NFG reported sales of $537.5 million, which missed the consensus estimate of $564 million by 4.7%. However, the top line increased 1.1% from the prior-year recorded figure of $531.8 million.CNX Resources Corporation CNX reported second-quarter 2026 operating earnings of 72 cents per share, beating the Zacks Consensus Estimate of 57 cents by 26.3%. The bottom line increased 22% from the year-ago quarter’s 59 cents.The company reported revenues of $389 million, which missed the Zacks Consensus Estimate of $413 million by 5.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Clearway Energy, Inc. (CWEN) : Free Stock Analysis Report CNX Resources Corporation. (CNX) : Free Stock Analysis Report National Fuel Gas Company (NFG) : Free Stock Analysis Report Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Devon Energy Corporation DVN reported second-quarter 2026 adjusted earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.30 by 20.77%. GAAP earnings were $2.03 per share, up 44% from $1.41 a year ago. Revenues of $7.41 billion surpassed the consensus estimate of $6.29 billion by 17.81% and increased 73.1% year over year. Strong oil pricing and contributions from the Coterra Energy merger supported the results. Oil, gas and natural gas liquids sales totaled $5.11 billion compared with $2.71 billion in the year-ago quarter. Marketing and midstream revenues increased to $1.90 billion from $1.34 billion.Oil, gas and NGL derivatives generated revenues of $414 million compared with $236 million a year earlier. The latest figure included $530 million of positive derivative valuation changes, partly offset by $116 million of cash settlement losses. Devon Energy Corporation price-consensus-eps-surprise-chart | Devon Energy Corporation Quote Total production averaged 1,359 thousand barrels of oil equivalent per day (MBoe/d), increased 61.6% year over year from 841,000 Boe/d. Devon completed its merger with Coterra on May 7, meaning the quarterly figures included combined operations for part of the period. The production level was 1.6% higher than the midpoint of management’s guidance. Oil production rose 30% year over year to 503,000 barrels per day. NGL output climbed 41.4% to 314,000 barrels per day, while natural gas production increased to 3,252 million cubic feet per day from 1,388 million cubic feet. Better-than-expected well performance in the Delaware Basin supported oil and gas volumes. Realized oil prices, including cash settlements, were up 39.9% year over year to $88.09 per barrel from $62.97 in the prior-year quarter. Excluding hedges, oil realizations were $95.10 per barrel.Realized NGL prices increased to $22.70 per barrel from $17.82. However, realized natural gas prices, including cash settlements, declined to $1.05 per thousand cubic feet from $1.56. Regional Waha pricing was pressured by infrastructure constraints in the Delaware Basin. Capital expenditures were $1.27 billion, 2.4% above the midpoint of management’s guidance. The company placed 120 net operated wells online during the quarter, with an average lateral length of 10,800 feet.The Permian accounted for $731 million of capital spending, followed by $196 million in the Rockies. Eagle Ford, Anadarko and Marcellus expenditures were $97 million, $129 million and $70 million, respectively. Devon acquired 16,300 net Delaware Basin acres for $2.6 billion, adding approximately 400 top-tier locations. Net cash from operating activities was $3.67 billion compared with $1.55 billion a year ago. Adjusted operating cash flow was $2.9 billion, while adjusted free cash flow totaled roughly $1.7 billion, excluding after-tax restructuring costs.Devon returned $1.06 billion through dividends, share repurchases and debt retirement. It repurchased 4.3 million shares for $197 million and paid $366 million in dividends. The quarterly fixed dividend was raised 33% to 32 cents per share. For the third quarter of 2026, total production is expected between 1,660 MBoe/d and 1,690 MBoe/d. Oil production is projected in the range of 550,000-560,000 barrels per day. Third-quarter capital expenditures are anticipated between $1.4 billion and $1.5 billion. Devon maintained its full-year guidance, calling for total production of 1,364 MBoe/d to 1,398 MBoe/d and capital spending of $4.8-$5 billion. 2026 Oil production is expected to be in the range of 495,000-505,000 barrels per day. Natural gas production for 2026 is expected to be in the range of 3,300-3,400 million cubic feet per day.Management remains on track to achieve at least $1 billion in annual pre-tax merger synergies on a run-rate basis by the end of 2027. Devon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. TotalEnergies SE TTE reported second-quarter 2026 operating earnings of $2.68 (€2.31) per share, which lagged the Zacks Consensus Estimate of $3.07 by 12.7%. The bottom line improved 70.7% from the year-ago figure of $1.57 (€1.38).Total revenues for the second quarter were $57.1 billion, which increased from the year-ago reported figure of $47.9 billion by 27.8%. The metric lagged the Zacks Consensus Estimate of $60.18 billion by 5.13%.CNX Resources Corporation CNX reported second-quarter 2026 operating earnings of 72 cents per share, beating the Zacks Consensus Estimate of 57 cents by 26.3%. The bottom line increased 22% from the year-ago quarter’s 59 cents.The company reported revenues of $389 million, which missed the Zacks Consensus Estimate of $413 million by 5.8%.National Fuel Gas Company NFG reported third-quarter fiscal 2026 adjusted earnings of $1.54 per share, which beat the Zacks Consensus Estimate of $1.47 by 4.8%. However, earnings declined 6.1% from $1.64 in the year-ago quarter.NFG reported sales of $537.5 million, which missed the consensus estimate of $564 million by 4.7%. However, the top line increased 1.1% from the prior-year recorded figure of $531.8 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Devon Energy Corporation (DVN) : Free Stock Analysis Report CNX Resources Corporation. (CNX) : Free Stock Analysis Report National Fuel Gas Company (NFG) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Energy Transfer LP ET reported second-quarter 2026 earnings of 59 cents per unit, beating the Zacks Consensus Estimate of 39 cents by 51.28%. The bottom line increased 84.4% from 32 cents a year ago. Revenues of $34.33 billion surpassed the consensus estimate of $31.09 billion by 10.42% and climbed 78.4% year over year. Record NGL transportation and export volumes, along with stronger crude oil and midstream activity, supported the quarter. Energy Transfer LP price-consensus-eps-surprise-chart | Energy Transfer LP Quote NGL and refined products transportation and services revenues increased 29.9% to $7.72 billion. Segment adjusted EBITDA rose 26.6% to $1.31 billion, reflecting stronger marketing, terminal, transportation, storage and fractionation margins.NGL transportation volumes climbed 13% to a record 2.64 million barrels per day. Terminal volumes rose to 1.86 million barrels per day. Fractionation volumes increased 3% to 1.19 million barrels per day. Higher Permian volumes and stronger exports aided throughput.Midstream revenues declined 10% to $2.82 billion, but segment adjusted EBITDA increased 15.1% to $884 million. Gathered volumes rose 4% to a record 22.14 million BBtu per day, helped by higher dry-gas gathering and increased Permian processing activity.Crude oil transportation and services revenues surged 92.3% to $11.05 billion. Segment adjusted EBITDA grew 13.9% to $834 million. Transportation volumes increased 4% to a record 7.34 million barrels per day, supported by higher activity across the Texas, Permian and Bakken systems.Intrastate transportation and storage revenues fell 36% to $596 million, while segment adjusted EBITDA increased 32.7% to $377 million. Wider basis differentials and early volumes from the Hugh Brinson Pipeline more than offset lower transported volumes and higher expenses.Interstate transportation and storage revenues rose 3.2% to $609 million, and segment adjusted EBITDA gained 2.3% to $481 million. Higher parking, storage and liquids revenues offset lower utilization on the Trunkline, Gulf Run and Mississippi River systems. Revenues from the investment in the Sunoco LP segment increased 164.5% to $14.26 billion. The segment adjusted EBITDA more than doubled to $982 million, primarily reflecting recent acquisitions and higher contributions from unconsolidated affiliates.The investment in USA Compression Partners generated revenues of $342 million, up 36.8%. The segment adjusted EBITDA advanced 30.2% to $194 million, driven by the J-W Power acquisition and growth in USAC's legacy operations. Total costs and expenses were $30.76 billion, up 81.7% year over year, mainly due to a sharp increase in the cost of products sold. Operating expenses, depreciation, depletion and amortization, and selling, general and administrative expenses also increased.Operating income rose 54.8% to $3.57 billion. Interest expense, net of capitalized interest, increased 8% to $934 million. Net income attributable to partners advanced 79.5% to $2.09 billion. Adjusted EBITDA increased 31% to $5.07 billion. Distributable cash flow attributable to partners, as adjusted, rose 32% to $2.59 billion. Second-quarter growth capital expenditures were $1.10 billion, while maintenance capital expenditures were $307 million.Current assets totaled $23.11 billion at June 30, 2026, compared with $18.23 billion at the end of 2025. Long-term debt, less current maturities, was $68.39 billion. The revolving credit facility had $3.76 billion of available borrowing capacity. Energy Transfer now expects 2026 adjusted EBITDA of $18.8-$19.1 billion, up from the prior range of $18.2-$18.6 billion. The partnership projects growth capital spending of $5.6-$5.9 billion.The Hugh Brinson Pipeline entered commercial service and is expected to reach full Phase I capacity of 1.5 Bcf per day by Sept. 1, 2026. ET also completed upgrades adding more than 90,000 barrels per day of capacity to the Lone Star Express pipeline and placed the Mustang Draw I processing plant into service. Energy Transfer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. CNX Resources Corporation CNX reported second-quarter 2026 operating earnings of 72 cents per share, beating the Zacks Consensus Estimate of 57 cents by 26.3%. The bottom line increased 22% from the year-ago quarter’s 59 cents. The earnings beat came despite lower production and natural gas prices, supported by disciplined costs and a 59% cash operating margin.The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates year-over-year growth of 11.81% and 42.23%, respectively.TotalEnergies SE TTE reported second-quarter 2026 operating earnings of $2.68 (€2.31) per share, which lagged the Zacks Consensus Estimate of $3.07 by 12.7%. The bottom line improved 70.7% from the year-ago figure of $1.57 (€1.38).The Zacks Consensus Estimate for 2026 implies year-over-year growth of 53.12% and the same for 2027 indicates a year-over-year decline of 7.46%.National Fuel Gas Company NFG reported third-quarter fiscal 2026 adjusted earnings of $1.54 per share, which beat the Zacks Consensus Estimate of $1.47 by 4.8%. However, earnings declined 6.1% from $1.64 in the year-ago quarter.The Zacks Consensus Estimate for fiscal 2026 and 2027 earnings per share implies year-over-year growth of 10.85% and 2.97%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Energy Transfer LP (ET) : Free Stock Analysis Report CNX Resources Corporation. (CNX) : Free Stock Analysis Report National Fuel Gas Company (NFG) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. National Fuel Gas (NFG) recently paired its latest quarterly earnings with fresh production guidance for 2026. Together, these provide a clearer picture of both current performance and management’s expectations for the year ahead. See our latest analysis for National Fuel Gas. Following the earnings beat and 2026 production guidance, National Fuel Gas shares trade at $82.31, with a 1 month share price return of 6.21% and a 5 year total shareholder return of 81.20%. This indicates sustained long term momentum despite modest near term moves. If this kind of earnings and guidance update has you thinking about where else growth or resilience might show up, it could be a good time to scan 35 power grid technology and infrastructure stocks National Fuel Gas now trades at a discount to both analyst targets and one intrinsic value estimate, even after the recent move. Is this a simple pricing gap, or is the market flagging real risks that the numbers miss? At $82.31, National Fuel Gas sits below a widely followed fair value estimate of $101.50. This frames the current earnings beat and 2026 guidance in a different light. Read the complete narrative. Want to see what sits behind that rerating argument? The fair value hinges on a tight mix of revenue growth, margin resilience and a richer future earnings multiple. The full narrative spells out how those moving parts line up, and what needs to go right for $101.50 to make sense. Result: Fair Value of $101.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, that 18.9% undervaluation narrative for National Fuel Gas still leans on assumptions that could be tested by tighter decarbonization policies or higher long term capital spending. Find out about the key risks to this National Fuel Gas narrative. The 18.9% undervaluation case for National Fuel Gas leans on future earnings and a higher P/E over time. The SWS DCF model points in the opposite direction. On that view, the stock at $82.31 trades above an estimated future cash flow value of $46.46, which screens as overvalued. Which story do you think better fits how National Fuel Gas will actually deploy capital and convert earnings into cash? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out National Fuel Gas for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 55 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With mixed signals around value, risk, and reward for National Fuel Gas, this is a moment to check the numbers yourself and move quickly. To see both sides laid out clearly, start with the 4 key rewards and 2 important warning signs. If National Fuel Gas has sharpened your focus, now is the moment to widen your watchlist and uncover other stocks that fit the way you like to invest. Target reliability by reviewing companies with resilient finances and strong liquidity through the solid balance sheet and fundamentals stocks screener (45 results). Spot potential mispricings by scanning the 55 high quality undervalued stocks that combine quality fundamentals with compressed valuations. Secure income ideas by checking out the 9 dividend fortresses that pair higher yields with supportive financial profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NFG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in National Fuel Gas Company? Here are five stocks we like better. Q3 adjusted EPS fell to $1.54, down $0.10 year over year, as lower production offset improved natural-gas pricing and hedge gains. National Fuel revised fiscal 2026 EPS guidance to $7.40–$7.60 and expects 7%–10% annual EPS growth through fiscal 2029. National Fuel remains on track to close its Ohio utility acquisition in the fourth quarter, supported by $1.5 billion of debt financing and new share issuance. Near-term free cash flow will prioritize debt reduction, with management targeting leverage of roughly 2–2.25 times within several years. The company is expanding pipeline capacity and refining its development strategy around the Lower Utica, including record-length laterals expected to begin production in early 2027. It also plans to invest $100 million–$200 million over several years to expand its Tioga County acreage. Energy Crunch Ahead: 3 Natural Gas Stocks Set to Gain National Fuel Gas (NYSE:NFG) reported third-quarter fiscal 2026 adjusted earnings of $1.54 per share, down $0.10 from a year earlier, as lower production in its integrated upstream and gathering operations more than offset stronger natural-gas price realizations and hedge gains. President and Chief Executive Officer Dave Bauer said the quarter was generally in line with company expectations. The company also updated its long-term outlook, projecting average annual earnings-per-share growth of 7% to 10% through fiscal 2029, assuming the current natural-gas forward curve. National Fuel expects to generate $1 billion to $1.5 billion of free cash flow over that period. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 3 Dividend Kings With Royally Good Upside “Each of our businesses is positioned to deliver meaningful growth in earnings and free cash flow,” Bauer said, citing regulated-business expansion opportunities, the pending Ohio utility acquisition and its Tioga County upstream acreage position. Treasurer and Chief Financial Officer Tim Silverstein said National Fuel revised its fiscal 2026 adjusted EPS guidance to a range of $7.40 to $7.60 per share. The change primarily reflects an updated production forecast for Seneca Resources of 420 billion to 430 billion cubic feet equivalent, or BCFE, for the year. The company maintained its NYMEX natural-gas price assumption of $3 per MMBtu. → Microsoft Just Flipped the AI Spending Narrative Overnight National Fuel said it is hedged on 75% of its remaining fiscal-year production at prices above the current market strip. Silverstein said regulated operations continued to benefit from margin growth under New York’s multiyear rate plan and revenue from Pennsylvania’s Distribution Integrity and Safety, or DISC, mechanism. Those gains were largely offset by higher operating costs, including inflation, the absence of a prior-year New York bad-debt tracker benefit and the effects of a new Pennsylvania field-operations labor agreement. For fiscal 2027, the company expects additional expansion revenue of nearly $30 million from the Tioga Pathway Project and Shippingport Lateral Project. It also anticipates earnings growth from its regulated businesses as rate proceedings conclude, the New York rate plan continues and the Ohio acquisition closes. → Carrier Earnings Could Send the Stock to a New All-Time High National Fuel said it remains on track to close its acquisition of CenterPoint’s Ohio gas utilities during the calendar fourth quarter, targeting an Oct. 1 closing date. The Ohio Commission approved the transaction in June, and the company said its June debt issuance completed its financing needs for the acquisition. The company raised $1.5 billion in a three-tranche debt offering with three-, five- and 10-year maturities and a weighted average interest rate of slightly more than 5%. National Fuel used part of the proceeds to redeem a $300 million note due in October, leaving $1.2 billion of incremental long-term debt intended to fund the acquisition at closing. Silverstein said the acquisition financing also included the issuance of 4.4 million common shares and that the company will enter into a $1.2 billion promissory note with CenterPoint carrying a 6.5% coupon at closing. While current commodity prices are expected to pressure near-term credit metrics, he said National Fuel’s longer-term deleveraging path remains intact. In response to an analyst question, Silverstein said the company’s near-term free cash flow priority will be debt reduction rather than share repurchases. He said National Fuel would like to return to leverage in the “low twos,” or roughly 2 to 2.25 times, within the first few years following the deal. The board approved its 56th consecutive dividend increase in June, Silverstein said, extending the company’s dividend-payment streak to 124 consecutive years. National Fuel expanded its Line N System Upgrade Project by 200,000 dekatherms per day. The revised project is expected to add a total of 294,000 dekatherms per day of capacity on the Supply Corporation system and has a target in-service date of November 2028. The incremental capacity is contracted for 20 years and will support the initial phase of coal-to-gas conversion at the Shippingport power station, according to Bauer. National Fuel now has more than 400,000 dekatherms per day contracted to the Shippingport site for behind-the-meter generation and generation supplying the PJM Interconnection. Bauer said demand at the location could nearly double over time. The company also said it is discussing further Line N expansion opportunities in southwestern Pennsylvania, including capacity to support data centers and power-generation facilities. On the regulatory front, National Fuel expects settlement discussions in its Supply Corp. rate case to begin in September. In Pennsylvania, the company expects an administrative law judge’s recommended decision next month in its utility rate case, with new base rates expected to take effect in November. In New York, the company is seeking approval of a system modernization tracker that it said could allow it to earn returns on modernization investments without increasing customer rates or entering a full rate case in the near term. Seneca Resources and National Fuel Midstream President Justin Loweth said the integrated upstream and gathering business produced 104 Bcf and recorded 117 Bcf of throughput during the quarter. While results did not fully meet expectations, Loweth said the period provided operational information that will influence future development plans. The company’s first Upper and Lower Utica co-development pad showed no communication between wells in the two horizons, which Loweth said supports the effectiveness of the seismite formation as a fracture barrier. Upper Utica results were modestly below original expectations, but the company said the findings improved its understanding of reservoir quality, landing strategy, completion design and sequencing. National Fuel is increasingly orienting its long-term program around Lower Utica-first development. Loweth said the company is evaluating when to use its more intensive Gen 4 completion design, which may produce estimated ultimate recoveries approaching 3 Bcf per 1,000 feet in its highest-quality rock, versus Gen 3 designs in other areas. The company observed more fracture interactions than anticipated between offset Lower Utica wells using intensive completion designs. Loweth described the issue as “noise, not substance” for the broader development program and said teams are implementing practices intended to reduce future impacts. National Fuel also drilled a four-well Lower Utica pad with its longest-ever laterals, including approximately 18,000 to 20,000 feet of treatable lateral per well. The company expects those wells to begin production in early 2027. It expects 14 wells to come online in the fiscal fourth quarter and forecasts exiting fiscal 2026 at record daily production rates. Separately, National Fuel plans to spend approximately $100 million to $200 million over several years on discretionary leasing to expand its core Tioga County acreage position. The company said maintenance land spending of about $15 million annually is sufficient to support its five-year development plan. National Fuel Gas Company (NYSE: NFG) is a diversified energy company engaged primarily in the production, gathering, transmission, distribution and marketing of natural gas. The company operates through four principal segments: Exploration & Production, Pipeline & Storage, Utilities, and Energy Marketing. Its integrated asset base spans upstream development in the Appalachian Basin, regional pipeline networks, underground storage facilities, and regulated utility distribution systems. In its Exploration & Production segment, National Fuel Gas focuses on developing natural gas reserves in the Marcellus and Utica shales, leveraging modern drilling and completion techniques. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "National Fuel Gas Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

National Fuel Gas Company NFG reported third-quarter fiscal 2026 adjusted earnings of $1.54 per share, which beat the Zacks Consensus Estimate of $1.47 by 4.8%. However, earnings declined 6.1% from $1.64 in the year-ago quarter.GAAP earnings for the reported quarter were $1.45 per share compared with $1.64 in the year-ago quarter. NFG reported sales of $537.5 million, which missed the consensus estimate of $564 million by 4.7%. However, the top line increased 1.1% from the prior-year recorded figure of $531.8 million. National Fuel Gas Company price-consensus-eps-surprise-chart | National Fuel Gas Company Quote Utility: Revenues totaled $165.42 million, up 5.1% from $157.45 million in the year-ago quarter.Integrated Upstream and Gathering: Revenues totaled $302.52 million, down 1.3% from $306.4 million in the year-ago quarter. Lower natural gas production more than offset the benefits of improved realized pricing, gathering revenues and other operating revenues.Pipeline and Storage: Revenues amounted to $69.56 million, up 2.3% from $67.98 million recorded in the year-ago quarter, supported by higher transportation revenues from new long-term contracts. Total operating expenses increased 8.9% year over year to $328.6 million. Operation and maintenance expenses rose across all three operating segments, with the sharpest increase in the Integrated Upstream and Gathering.Operating income totaled $208.9 million, down 9.3% from $230.3 million in the year-ago quarter.Interest expense on long-term debt totaled $33.2 million, down 3.4% from $34.3 million in the year-ago period.Seneca produced 104.3 billion cubic feet of natural gas during the reported quarter, down 7% from the prior-year period. Production from recently completed wells was insufficient to offset natural declines from existing wells. As of June 30, 2026, National Fuel Gas had cash and temporary cash investments of $1.24 billion compared with $43.2 million as of Sept. 30, 2025. Net cash provided by operating activities totaled $1.03 billion for the first nine months of fiscal 2026, up 20% year over year. For the first nine months of fiscal 2026, ended June 30 capital expenditures rose 21.9 % year over year to $764.5 million.The company completed the financing needed for its $2.62-billion acquisition of CenterPoint Energy's Ohio natural gas utility and received final regulatory approval. The transaction remains on track to close Oct. 1, 2026.National Fuel also increased its annual dividend rate by 4% to $2.22 per share. The company has now paid dividends for 124 consecutive years and raised its annual dividend for 56 straight years. National Fuel Gas lowered its fiscal 2026 adjusted earnings guidance to $7.40-$7.60 per share from $7.45-$7.75. The Zacks Consensus Estimate for fiscal 2026 is currently pegged at $7.66. Production guidance was cut to 420-430 Bcf from 425-440 Bcf. The company cited ongoing appraisal work and greater-than-expected well interactions associated with more intensive completion design testing.Consolidated capital expenditure guidance was raised to $1-$1.08 billion from $955 million to $1.07 billion. Pipeline and Storage spending is now projected at $235-$265 million, while Integrated Upstream and Gathering expenditures are expected between $580 million and $605 million, excluding discretionary land purchases. National Fuel Gas currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. ONE Gas, Inc. OGS is slated to report second-quarter 2026 results on Aug. 4, after market close. The Zacks Consensus Estimate for earnings is pegged at 65 cents per share, which suggests a year-over-year increase of 22.64%OGS’ long-term (three to five years) earnings growth rate is 6.23%. The Zacks Consensus Estimate for second-quarter sales is pinned at $440.21 million, which suggests a year-over-year increase of 3.89%.Atmos Energy Corporation ATO is slated to report third-quarter fiscal 2026 results on Aug. 5, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.34 per share, which suggests a year-over-year increase of 15.52%ATO’s long-term earnings growth rate is 6.82%. The Zacks Consensus Estimate for third-quarter fiscal sales is pinned at $1.04 billion, which suggests a year-over-year improvement of 23.73%.Occidental Petroleum OXY is slated to report second-quarter 2026 results on Aug. 5, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.96 per share, which suggests a year-over-year increase of 402.56%OXY’s long-term earnings growth rate is 12.73%. The Zacks Consensus Estimate for second-quarter sales is pinned at $7.18 billion, which suggests a year-over-year increase of 11.16%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report National Fuel Gas Company (NFG) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report Atmos Energy Corporation (ATO) : Free Stock Analysis Report ONE Gas, Inc. (OGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. National Fuel Gas Co (NYSE:NFG) expects earnings per share to grow between 7% and 10% per year on average through fiscal 2029, driven by strong fundamentals across all business segments. The company anticipates generating between $1 billion and $1.5 billion of free cash flow over the same period, a compelling value proposition that few energy companies can match. NFG has expanded its Line End System Upgrade project by 200,000 decatherms per day, with the new capacity fully contracted for 20 years to support a coal-to-gas conversion at a power station. The company's pending acquisition of CenterPoint's Ohio gas utilities is on track to close in the fourth quarter, which will double its utility rate base and rebalance its business mix. NFG's upstream operations continue to show strong capital efficiency improvements, with successful drilling of the longest laterals in company history, expected to be among the most productive wells in its portfolio. Adjusted earnings per share for the quarter were $1.54, down $0.10 compared to the prior year, primarily due to lower production in the integrated upstream and gathering business. Full-year fiscal 2026 production guidance was revised downward to a range of 420 to 430 BCFE, reflecting operational challenges and timing issues with new well turn-in-lines. The company experienced greater-than-anticipated frac interactions between offset Lower Utica wells during testing of the Gen 4 completion design, impacting near-term production. Higher operating costs were driven by general inflation and discrete items, including a new labor agreement in Pennsylvania and the non-recurrence of a bad debt tracker benefit in New York. The current commodity price outlook is expected to place near-term pressure on credit metrics, and the company plans to prioritize deleveraging before considering share repurchases. Warning! GuruFocus has detected 10 Warning Signs with AEP. Is NFG fairly valued? Test your thesis with our free DCF calculator. Q: Can you talk more about the well interaction issue with the Gen 4 fracs? Was it a spacing issue, and how does this change your bigger picture development ideas?A: Justin Lois, President of Seneca Resources and National Fuel Midstream: This is noise, not substance. We are early in testing significantly upsized completion jobs. The interactions were lower-to-lower Utica, not between upper and lower zones, which confirms the seismite barrier is highly effective. We are already implementing practices to dampen further impacts. Our focus remains on optimizing the right completion design to drive the highest capital efficiency over time. Q: Can you unpack the Gen 4 results in more detail? Is the wobbliness timing and noise, or something structural?A: Justin Lois, President of Seneca Resources and National Fuel Midstream: We are optimizing for "bang for your buck." On our "good rock," the uplift from Gen 4 doesn't always justify the higher cost. However, on our "best of the best rock," it supercharges performance. We are learning to dial in the right design for different areas. We expect a mix of Gen 3 and Gen 4 designs going forward, and we may develop a new design that blends the two. Q: What gets you to the top end vs. the bottom end of the new 7-10% EPS growth target through fiscal '29, and what is your conviction level?A: Tim Silverstein, Treasurer and CFO: We have a lot of conviction. The base plan, which gets us to the mid-range, underwrites 5-7% rate base growth and mid-single-digit production growth without redeploying capital. Getting to the high end would come from upside catalysts like future expansion projects on our FERC-regulated pipes and continued capital efficiency improvements at Seneca. We believe this is a very achievable range. Q: With the CenterPoint Ohio acquisition closing soon, how do you think about capital allocation, specifically share repurchases, given the stock's performance?A: Tim Silverstein, Treasurer and CFO: Our near-term focus is using free cash flow to deleverage. We want to rebuild balance sheet flexibility. We don't expect buybacks in the near term, but as we generate cash and get our leverage metrics back to a target of 2.0x to 2.25x within the first few years, it will open up the toolkit for strategic opportunities, including returning cash to shareholders. Q: What is the status of the Pennsylvania utility rate case, and why has it become more contentious?A: Dave Bauer, President and CEO: We have the lowest delivery rates in the state and our requested increase was modest, so we expected a straightforward settlement. However, there has been a lack of common ground with some parties. The case is fully briefed, and we expect a recommended decision from the ALJ next month. We remain optimistic the commission will balance our need to invest with customer affordability. Q: Can you provide more detail on the discretionary leasing program in Tioga County and its impact on the inventory runway?A: Justin Lois, President of Seneca Resources and National Fuel Midstream: We see an opportunity to deploy $100 to $200 million of discretionary capital over the next several years to secure additional core acreage. This strategy extends our inventory runway, enhances development optionality, and supports sustainable growth beyond our current planning horizon. We are well ahead of competitors due to years of preparation. Q: What drove the revision to the fiscal 2026 production guidance to 420-430 Bcfe?A: Justin Lois, President of Seneca Resources and National Fuel Midstream: The quarter did not fully meet our expectations due to the timing of turn-in-lines and production impacts from appraisal tests. However, we have 14 wells forecasted to come online in the fourth quarter, and we expect to exit the fiscal year at record daily production rates. Q: What is the outlook for the Line End System upgrade project and other expansion opportunities?A: Dave Bauer, President and CEO: We expanded the project by 200,000 decatherms per day to a total of 294,000 decatherms, with a target in-service date of November 2028. This supports the coal-to-gas conversion at the Shippingport power station. We are also seeing substantial demand for capacity to support data centers and power generation in Southwest Pennsylvania and are in active discussions on further projects. For the complete transcript of the earnings call, please refer to the full earnings call transcript.