NFG/Seneca Qtly Update: Production Inches Up, Profits Up Too

nfgNational Fuel Gas Company (NFG) covers the full span of the oil and gas business–from upstream (with its wholly-owned drilling subsidiary Seneca Resources), to the midstream (with wholly-owned subsidiary Empire Pipeline) to downstream (NFG’s natural gas utility service to 740,000 customers in NY and PA). Big company. Diverse operations. Late last week NFG issued what they call their fourth quarter update (everyone else’s third quarter update), covering July through September. NFG’s CEO Ronald Tanski said lower natural gas prices and higher temperatures didn’t help. However, the company improved. In NFG’s 4Q15 the company lost $188 million–but this year they made $37.5 million. That’s a significant $225 million improvement in just one year’s time. However, NFG ended the full year in the red–losing $291 million (an improvement from losing $379 million last year). As for Seneca’s performance, it was a good year overall, with banner production. Seneca’s production was 161.1 Bcfe (billion cubic feet equivalent) in fiscal 2016, an increase of 3.3 Bcfe, or 2%, versus fiscal 2015. Seneca voluntarily curtailed an estimated 34.6 Bcf (billion cubic feet) of net natural gas production in fiscal 2016. Seneca’s average realized natural gas and oil prices, after the impact of hedging, was $3.02 per Mcf and $57.91 per Bbl, respectively, a decrease of $0.36 per Mcf and $12.45 per Bbl, versus fiscal 2015. Below is the NFG update for all of their subsidiaries including Seneca and Empire, along with a copy of the latest PowerPoint slide deck…

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