National Fuel Gas Company (NYSE: NFG) announced on Wednesday that its first-quarter fiscal 2026 adjusted earnings rose 24% year-over-year, supported by double-digit growth in natural gas production and improved price realizations in its upstream segment. The company reported adjusted operating earnings of $187.7 million, or $2.06 per share.
Total revenue for the quarter ended Dec. 31, 2025, reached $651.5 million, a 19% increase compared to the $549.5 million recorded in the same period a year ago. Following the release, National Fuel’s shares remained relatively stable, as investors weighed the operational performance against a narrow revenue miss relative to some internal analyst targets and the company’s decision to maintain its full-year guidance range.
Comparative Financial Performance
On a GAAP basis, National Fuel reported net income of $181.6 million, or $1.98 per share. This represents a substantial increase from the $45.0 million, or $0.49 per share, reported in the first quarter of fiscal 2025. The discrepancy between GAAP and adjusted figures is primarily due to the absence of $141.8 million in non-cash asset impairment charges that impacted the prior year’s results, as well as approximately $7.7 million in costs related to the company’s pending acquisition of Ohio utility assets.
| Key Metric | Q1 Fiscal 2026 | Q1 Fiscal 2025 | % Change |
| Adjusted EPS | $2.06 | $1.66 | +24.1% |
| Total Revenue | $651.5M | $549.5M | +18.6% |
| Adjusted EBITDA | $370.8M | $311.2M | +19.1% |
| Net Income (GAAP) | $181.6M | $45.0M | +303.6% |
The company’s adjusted EBITDA growth was largely attributed to the Integrated Upstream and Gathering segment, which contributed $268.4 million to the consolidated total, up from $208.6 million in the prior-year period.
Segment Analysis and Production Drivers
The Integrated Upstream and Gathering segment was the primary driver of the quarter’s financial strength. Adjusted earnings for the segment rose to $1.36 per share, a 45% increase from $0.94 per share a year ago. This performance was underpinned by:
- Production Volume: Net production increased 12% to 107.5 billion cubic feet equivalent (Bcfe), driven by strong results from new wells in the Tioga County Utica shale formation.
- Price Realizations: Realized natural gas prices, including the impact of hedges, averaged $2.89 per thousand cubic feet (Mcf), a 14% increase over the $2.53 per Mcf realized in the first quarter of fiscal 2025.
- Cost Structure: Adjusted total operating costs rose slightly to $1.27 per Mcf, up from $1.24 per Mcf. This was primarily due to higher lease operating expenses (LOE), which rose to $0.15 per Mcf from $0.11 per Mcf, partially offset by lower general and administrative costs.
The Utility segment reported net income of $53.2 million, up 5% from $50.5 million. The growth reflects higher customer margins from modernized infrastructure and rate adjustments in the Pennsylvania and New York service territories. Meanwhile, the Pipeline and Storage segment reported a modest decline in net income to $26.8 million from $27.5 million, cited primarily as a result of lower intercompany interest income.
Capital Allocation and Strategic Outlook
During the quarter, National Fuel made significant progress on its regulated growth strategy. The company confirmed the successful issuance of $350 million in common equity through a private placement. These funds are earmarked for the acquisition of CenterPoint Energy’s Ohio natural gas utility business, a transaction expected to close in the fourth quarter of calendar 2026.
Capital expenditures for the quarter totaled $245.4 million. Management highlighted that the Tioga Pathway and Shippingport Lateral expansion projects remain on schedule for late calendar 2026 completion. These projects are expected to enhance the company’s midstream throughput and provide long-term fee-based revenue.
Guidance Reaffirmation and Market Context
National Fuel reaffirmed its fiscal 2026 adjusted earnings guidance range of $7.60 to $8.10 per share. This forecast assumes an average NYMEX natural gas price of $3.75 per MMBtu for the remainder of the fiscal year. The company provided price sensitivity data indicating that a $1.00 change in NYMEX prices would impact full-year earnings by approximately $0.95 per share. The company’s performance occurs in a period of relative stability for Appalachian natural gas producers, who have benefited from a moderate recovery in Henry Hub prices. However, regional basis differentials and rising operational costs remain focal points for the industry. National Fuel’s integrated business model—incorporating production, midstream, and downstream utility assets—continues to be a key differentiator, providing a diversified cash flow stream that mitigates the inherent volatility of the upstream energy market.