NFG 3Q17: Delayed Northern Access Pipe No Closer to Resolution

Last week National Fuel Gas Company, headquartered in Western New York State with drilling subsidiary Seneca Resources and pipeline subsidiary Empire Pipeline, issued its fourth quarter (everyone else’s third quarter) 2017 update. In the accompanying analyst phone call, CEO Ronald Tanski blamed the delay of the Northern Access Pipeline project (delayed by the NY Dept. of Environmental Conservation) for lower earnings than the company would have otherwise realized. Thanks, business UNfriendly NY! You may recall in July NFG filed a lawsuit against the DEC for arbitrarily rejecting the project (see Northern Access Pipeline Court Case Further Threatens NY DEC). On the analyst call, Tanski said the case, filed in the Second Circuit Court of Appeals (in NY), will hold oral arguments on Nov. 16th. Tanski also said it’s “anyone’s guess” when NFG will get an answer about the project–either from the lawsuit or the Federal Energy Regulatory Commission (FERC). On the drilling front, Seneca Resources produced 40.4 billion cubic feet equivalent (Bcfe) last quarter, up a tiny 1% from the same quarter a year ago. After hedging, Seneca got $2.91 per thousand cubic feet (Mcf) for their gas–not too shabby. Below is the full update for NFG for last quarter (remember they also have a huge utility business, in addition to drilling and pipelines), along with excerpts from the analyst call and the latest slide deck…

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