National Fuel Gas Co. is a holding company, which engages in the production, gathering, transportation, distribution, and marketing of natural gas. It operates through the following segments: Exploration and Production; Pipeline and Storage; Gathering; Utility; and Energy Marketing. The Exploration and Production segment handles the exploration for and the development of natural gas and oil reserves in California and in the Appalachian region of the United States. The Pipeline and Storage segment transports and stores natural gas for utilities, natural gas marketers, exploration and production companies, and pipeline companies in the northeastern United States markets. The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region. The Utility segment sells natural gas to retail customers and provides natural gas transportation services in western New York and northwestern Pennsylvania. The Energy Marketing segment markets natural gas to industrial, wholesale, commercial, public authority and residential customers. The company was founded on December 8, 1902 and is headquartered in Williamsville, NY.
As a holding company, the Company depends on its operating subsidiaries to meet its financial obligations.
The Company is dependent on capital and credit markets to successfully execute its business strategies.
The Company may be adversely affected by economic conditions and their impact on our suppliers and customers.
The Company’s credit ratings may not reflect all the risks of an investment in its securities.
The Company’s need to comply with comprehensive, complex, and the sometimes unpredictable enforcement of government regulations may increase its costs and limit its revenue growth, which may result in reduced earnings.
The nature of the Company’s operations presents inherent risks of loss that could adversely affect its results of operations, financial condition and cash flows.
Environmental regulation significantly affects the Company’s business.
Climate change, and the regulatory and legislative developments related to climate change, may adversely affect operations and financial results.
Organized opposition to the oil and gas industry could have an adverse effect on Company operations.
Third party attempts to breach the Company’s network security could disrupt the Company’s operations and adversely affect its financial results.
Delays or changes in plans or costs with respect to Company projects, including regulatory delays or denials with respect to necessary approvals, permits or orders, could delay or prevent anticipated project completion and may result in asset write-offs and reduced earnings.
The Company could be adversely affected by the disallowance of purchased gas costs incurred by the Utility segment.
Changes in interest rates may affect the Company’s financing and its regulated businesses’ rates of return.
Fluctuations in oil and gas prices could adversely affect revenues, cash flows and profitability.
The Company has significant transactions involving price hedging of its oil and gas production as well as its fixed price purchase and sale commitments.
You should not place undue reliance on reserve information because such information represents estimates.
The amount and timing of actual future oil and gas production and the cost of drilling are difficult to predict and may vary significantly from reserves and production estimates, which may reduce the Company’s earnings.
Financial accounting requirements regarding exploration and production activities may affect the Company's profitability.
Increased regulation of exploration and production activities, including hydraulic fracturing, could adversely impact the Company.
The increasing costs of certain employee and retiree benefits could adversely affect the Company’s results.
Significant shareholders or potential shareholders may attempt to effect changes at the Company or acquire control over the Company, which could adversely affect the Company’s results of operations and financial condition.
The information in MD&A should be read in conjunction with the Company’s financial statements in Item 8 of this report, which includes a comparison of our Results of Operations and Capital Resources and Liquidity for fiscal 2019 and fiscal 2018. For a discussion of the Company's earnings, refer to the Results of Operations section below. A discussion of changes in the Company’s results of operations from fiscal 2017 to fiscal 2018 has been omitted from this Form 10-K, but may be found in Item 7, MD&A, of the Company’s Form 10-K for the fiscal year ended September 30, 2018, filed with the SEC on November 16, 2018, with the exception of a comparison of results of operations from fiscal 2017 to fiscal 2018 that is included in this Form 10-K for the All Other and Corporate operations, which have been restated to include energy marketing operations as a result of the Company’s change in segment reporting noted above.