Q1 2026 National Fuel Gas Co Earnings Call

January 29, 2026

Speaker #1: Hello, and welcome to the National Fuel Gas Company first quarter fiscal 2026 earnings call. My name is Harry, and I'll be coordinating your call today.

Operator: Hello and welcome to the National Fuel Gas Company First Quarter Fiscal 2026 Earnings Call. My name is Harry, and I'll be coordinating your call today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. During the presentation, you can register a question by pressing Star followed by 1 on your telephone keypad. If you change your mind, please press Star followed by 2 to exit the queue. I will now hand the call over to Natalie Fischer, Director of Investor Relations. Please go ahead.

Speaker #1: All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. During the presentation, you can register a question by pressing star followed by one on your telephone keypad.

Speaker #1: If you change your mind, please press star followed by two to exit the queue. I will now hand the call over to Natalie Fischer, Director of Investor Relations.

Speaker #1: Please go

Speaker #1: ahead. Thank

Speaker #2: you, Harry. And good morning. We appreciate you joining us on today's teleconference 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.

Natalie Fischer: Thank you, Harry. And good morning. We appreciate you joining us on today's teleconference 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 First Quarter Fiscal 2026 earnings release and January 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.

Q1 2026 National Fuel Gas Co Earnings Call

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National Fuel Gas Co

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Q1 2026 National Fuel Gas Co Earnings Call

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Thursday, January 29th, 2026 at 2:00 PM

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Speaker #2: At the end of today's prepared remarks, we will open the discussion to questions. The first quarter fiscal 2026 earnings release and January investor presentation have been posted on our investor relations website.

The First Quarter Fiscal 2026 earnings release and January 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.

Speaker #2: 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.

Speaker #2: 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.

Natalie Fischer: 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.

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.

Speaker #2: With that, I'll turn it over to Dave Bauer.

Speaker #3: Thank you, Natalie. Good morning, everyone. I want to start by taking a moment to recognize the fantastic job by our operations team, who are braving incredibly challenging winter weather conditions.

David Bauer: Thank you, Natalie. Good morning, everyone. I want to start by taking a moment to recognize the fantastic job by our operations team, who are braving incredibly challenging winter weather conditions. As you'd expect, our systems are holding up extremely well, with minimal operational disruptions at Seneca and no significant issues on our transmission and distribution systems. Thank you to everyone for your hard work. I really appreciate it. Moving to our results, Q1 was a solid start to the fiscal year, with adjusted earnings per share of $2.06, right in line with our expectations. Our Integrated Upstream and Gathering business continues to perform well, with higher production and natural gas prices driving a 29% increase in Adjusted EBITDA compared to the prior year.

Dave Bauer: Thank you, Natalie. Good morning, everyone. I want to start by taking a moment to recognize the fantastic job by our operations team, who are braving incredibly challenging winter weather conditions. As you'd expect, our systems are holding up extremely well, with minimal operational disruptions at Seneca and no significant issues on our transmission and distribution systems.

Speaker #3: As you'd expect, our systems are holding up extremely well, with minimal operational disruptions at Seneca, and no significant issues on our transmission and distribution systems.

Thank you to everyone for your hard work. I really appreciate it. Moving to our results, Q1 was a solid start to the fiscal year, with adjusted earnings per share of $2.06, right in line with our expectations. Our Integrated Upstream and Gathering business continues to perform well, with higher production and natural gas prices driving a 29% increase in Adjusted EBITDA compared to the prior year.

Speaker #3: Thank you to everyone for your hard work. I really appreciate it. Moving to our results, the first quarter was a solid start to the fiscal year, with adjusted earnings per share of $2.06, right in line with our expectations.

Speaker #3: Our integrated upstream and gathering business continues to perform well, with higher production and natural gas prices driving a 29% increase in adjusted EBITDA compared to the prior year.

Speaker #3: Our regulated businesses also delivered strong results, driven in part by our three-year rate settlement at our New York utility, and our pipeline modernization tracker at our Pennsylvania utility.

David Bauer: Our regulated businesses also delivered strong results, driven in part by our three-year rate settlement at our New York utility and our Pipeline Modernization Tracker at our Pennsylvania utility. Overall, we're pleased with our first quarter results, which provide a great foundation for the balance of the year. Looking ahead, the outlook for natural gas is as strong as it's ever been, with demand at all-time highs. On top of that, there's a growing need for LNG Feed Gas and new baseload power generation, most of which will be produced using natural gas. From a policy perspective, there is a rising tide of bipartisan support for an all-of-the-above approach to energy. Against that positive backdrop, our focus remains on operational excellence and the continued growth of National Fuel.

Our regulated businesses also delivered strong results, driven in part by our three-year rate settlement at our New York utility and our Pipeline Modernization Tracker at our Pennsylvania utility. Overall, we're pleased with our first quarter results, which provide a great foundation for the balance of the year. Looking ahead, the outlook for natural gas is as strong as it's ever been, with demand at all-time highs.

Speaker #3: Overall, we're pleased with our first quarter results, which provide a great foundation for the balance of the year. Looking ahead, the outlook for natural gas is as strong as it's ever been, with demand at all-time highs.

On top of that, there's a growing need for LNG Feed Gas and new baseload power generation, most of which will be produced using natural gas. From a policy perspective, there is a rising tide of bipartisan support for an all-of-the-above approach to energy. Against that positive backdrop, our focus remains on operational excellence and the continued growth of National Fuel.

Speaker #3: On top of that, there's a growing need for LNG feed gas and new baseload power generation. Most of which will be produced using natural gas.

Speaker #3: And from a policy perspective, there is a rising tide of bipartisan support for an all-of-the-above approach to energy. Against that positive backdrop, our focus remains on operational excellence and the continued growth of national fuel.

Speaker #3: our integrated upstream and gathering segment, At we continue to expand Seneca's inventory and significantly improve capital efficiency. Which is on track for a 30% gain since 2023, far outpacing our peers.

David Bauer: In our Integrated Upstream and Gathering segment, we continue to expand Seneca's inventory and significantly improve capital efficiency, which is on track for a 30% gain since 2023, far outpacing our peers. Well results from our Lower Utica program in Tioga County remain among the basin's best, and success in delineating the Upper Utica over the last couple of years has essentially doubled our core Tioga inventory estimate. We'll remain disciplined in how we leverage our integrated operations as we develop this region over the coming decades. Our Upper and Lower Utica co-development tests will offer critical insights to guide our long-term strategy, and Justin will speak more to this later in the call. Switching to our pipeline business, our near-term expansion projects are progressing well. The Tioga Pathway Project is moving forward according to schedule.

In our Integrated Upstream and Gathering segment, we continue to expand Seneca's inventory and significantly improve capital efficiency, which is on track for a 30% gain since 2023, far outpacing our peers. Well results from our Lower Utica program in Tioga County remain among the basin's best, and success in delineating the Upper Utica over the last couple of years has essentially doubled our core Tioga inventory estimate.

Speaker #3: Well results from our Lower Utica program in Tioga County remain among the basin's best. And success in delineating the Upper Utica over the last couple of years has essentially doubled our core Tioga inventory estimate.

We'll remain disciplined in how we leverage our integrated operations as we develop this region over the coming decades. Our Upper and Lower Utica co-development tests will offer critical insights to guide our long-term strategy, and Justin will speak more to this later in the call. Switching to our pipeline business, our near-term expansion projects are progressing well. The Tioga Pathway Project is moving forward according to schedule.

Speaker #3: We'll remain disciplined in how we leverage our integrated operations as we develop this region over the coming decades. Our Upper and Lower Utica co-development tests will offer critical insights to guide our long-term strategy.

Speaker #3: And Justin will speak more to this later in the call. Switching to our pipeline business, our near-term expansion projects are progressing well. The Tioga pathway project is moving forward according to schedule.

Speaker #3: We received our notice to proceed from FERC earlier in the month, and we'll begin tree clearing in the next few weeks. Additionally, our shipping port lateral project has now received all its required permits, keeping it on track for a late calendar 2026 in-service date.

David Bauer: We received our notice to proceed from FERC earlier in the month and will begin tree clearing in the next few weeks. Additionally, our Shippingport Lateral project has now received all its required permits, keeping it on track for a late calendar 2026 in service. Beyond these two projects, we're seeing increasing interest in other expansion opportunities across our systems, and I'm optimistic we'll have additional projects to talk about in the coming year. Before leaving the pipeline business, one quick comment on ratemaking. Supply Corporation expects to file a rate case later this year to recover costs related to our modernization program, and general expense inflation since our last rate increase two years ago. I'll keep you up to date on our plans with respect to timing as we move through the fiscal year.

We received our notice to proceed from FERC earlier in the month and will begin tree clearing in the next few weeks. Additionally, our Shippingport Lateral project has now received all its required permits, keeping it on track for a late calendar 2026 in service. Beyond these two projects, we're seeing increasing interest in other expansion opportunities across our systems, and I'm optimistic we'll have additional projects to talk about in the coming year.

Speaker #3: Beyond these two projects, we're seeing increasing interest in other expansion opportunities across our systems, and I'm optimistic we'll have additional projects to talk about in the coming year.

Before leaving the pipeline business, one quick comment on ratemaking. Supply Corporation expects to file a rate case later this year to recover costs related to our modernization program, and general expense inflation since our last rate increase two years ago. I'll keep you up to date on our plans with respect to timing as we move through the fiscal year.

Speaker #3: Before leaving the pipeline business, one quick comment on rate making. Supply corporation expects to file a rate case later this year to recover costs related to our modernization program and general expense inflation since our last rate increase two years ago.

Speaker #3: I'll keep you up to date on our plans with respect to timing as we move through the fiscal year. Turning to the utility business, yesterday our Pennsylvania division filed a new rate case that requests an approximately $20 million increase in rates.

David Bauer: Turning to the utility business, yesterday our Pennsylvania division filed a new rate case that requests an approximately $20 million increase in rates. In addition to addressing general cost inflation, the case will reset our modernization tracking mechanism, which will allow us to maintain the cadence of that program. If approved, customer bills will go up by about 11%, which is below the rate of inflation we've seen over the three years since we last increased delivery rates. Customer affordability has been and always will be a top priority for us. We currently have the lowest rates in Pennsylvania and fully expect we'll maintain that position after this case. We're the lowest cost provider in New York as well. The utility is in year two of a three-year rate settlement that extends through the end of fiscal 2027.

Turning to the utility business, yesterday our Pennsylvania division filed a new rate case that requests an approximately $20 million increase in rates. In addition to addressing general cost inflation, the case will reset our modernization tracking mechanism, which will allow us to maintain the cadence of that program.

Speaker #3: to addressing general cost In addition inflation, the case will reset our modernization tracking mechanism, which will allow us to maintain the cadence of that program.

If approved, customer bills will go up by about 11%, which is below the rate of inflation we've seen over the three years since we last increased delivery rates. Customer affordability has been and always will be a top priority for us. We currently have the lowest rates in Pennsylvania and fully expect we'll maintain that position after this case. We're the lowest cost provider in New York as well. The utility is in year two of a three-year rate settlement that extends through the end of fiscal 2027.

Speaker #3: If approved, customer bills will go up by about 11%, which is below the rate of inflation we've seen over the three years since we last increased delivery rates.

Speaker #3: Customer affordability has been and always will be a top priority for us. We currently have the lowest rates in Pennsylvania, and fully expect we'll maintain that position after this case.

Speaker #3: We're the lowest cost provider in New York as well. The utilities in year two of a three-year rate settlement that extends through the end of fiscal 2027.

Speaker #3: Even with the increases approved as part of that settlement, our delivery rates are still the lowest in the state. In fact, over the last 20 years, the rate of increase in our customer bills is well below the rate of inflation.

David Bauer: Even with the increases approved as part of that settlement, our delivery rates are still the lowest in the state. In fact, over the last 20 years, the rate of increase in our customer bills is well below the rate of inflation. And with a cost that's three and a half times more affordable than electricity, natural gas is unquestionably the fuel of choice for space heating in western New York. New York policymakers are increasingly in favor of an all-of-the-above approach to energy. The state's energy plan, the final version of which was published in December, acknowledges the difficulty in meeting the targets required by the Climate Act and emphasizes the need for continued investment in natural gas infrastructure to support New York energy demand. Further, the state has agreed to delay implementation of the All-Electric Buildings Act pending resolution of ongoing litigation.

Even with the increases approved as part of that settlement, our delivery rates are still the lowest in the state. In fact, over the last 20 years, the rate of increase in our customer bills is well below the rate of inflation. And with a cost that's three and a half times more affordable than electricity, natural gas is unquestionably the fuel of choice for space heating in western New York.

Speaker #3: And with a cost that's three and a half times more affordable than electricity, natural gas is unquestionably the fuel of choice for space heating in Western New York.

Speaker #3: New York policymakers are increasingly in favor of an all-of-the-above approach to energy. The state's energy plan, the final version of which was published in December, acknowledges the difficulty in meeting the targets required by the climate act and emphasizes the need for continued investment in natural gas infrastructure to support New York energy demand.

New York policymakers are increasingly in favor of an all-of-the-above approach to energy. The state's energy plan, the final version of which was published in December, acknowledges the difficulty in meeting the targets required by the Climate Act and emphasizes the need for continued investment in natural gas infrastructure to support New York energy demand. Further, the state has agreed to delay implementation of the All-Electric Buildings Act pending resolution of ongoing litigation.

Speaker #3: Further, the state has agreed to delay implementation of the all-electric buildings act pending resolution of ongoing litigation. The delay is expected to last at least one year, and could be permanent if the court rules in the industry's favor.

David Bauer: The delay is expected to last at least one year and could be permanent if the court rules in the industry's favor. We've long advocated that an all-of-the-above approach to energy is the most effective way to both reduce emissions and maintain the affordability and reliability of energy supplies. I'm encouraged to see policymakers begin to move in that direction. Lastly, at the utility, we're making great progress on our acquisition of CenterPoint's Ohio LDC, which remains on track to close in Q4 2026. With respect to financing, in December, we completed a well-executed $350 million private placement of common stock, which satisfies our equity need for the transaction.

The delay is expected to last at least one year and could be permanent if the court rules in the industry's favor. We've long advocated that an all-of-the-above approach to energy is the most effective way to both reduce emissions and maintain the affordability and reliability of energy supplies. I'm encouraged to see policymakers begin to move in that direction.

Speaker #3: We've long advocated that an all-of-the-above approach to energy is the most effective way to both reduce emissions and maintain the affordability and reliability of energy supplies.

Speaker #3: I'm encouraged to see policymakers begin to move in that direction. Lastly, at the utility, we're making great progress on our acquisition of CenterPoint's Ohio LDC, which remains on track to close in the fourth quarter of calendar '26.

Lastly, at the utility, we're making great progress on our acquisition of CenterPoint's Ohio LDC, which remains on track to close in Q4 2026. With respect to financing, in December, we completed a well-executed $350 million private placement of common stock, which satisfies our equity need for the transaction.

Speaker #3: With respect to financing, in December we completed a well-executed $350 million private placement of common stock, which satisfies our equity need for the transaction.

Speaker #3: With respect to regulatory approvals, both the HSR and Public Utility Commission of Ohio notice filings were made earlier this month. And the National Fuel and CenterPoint teams are working closely to ensure a smooth transition for customers and employees.

David Bauer: With respect to regulatory approvals, both the HSR and Public Utility Commission of Ohio notice filings were made earlier this month, and the National Fuel and CenterPoint teams are working closely to ensure a smooth transition for customers and employees. We're really excited about this transaction and the value creation opportunity it offers. Tim will have more details on the acquisition and our financing plans later in the call. Bringing it all together, it's an exciting time to be in the natural gas industry. National Fuel has a unique set of integrated assets in the most prolific gas region of the country. Add to that a strong investment-grade balance sheet, and we are very well positioned to help develop the resource and build the infrastructure needed to serve the growing demand for natural gas. With that, I'll turn the call over to Tim.

With respect to regulatory approvals, both the HSR and Public Utility Commission of Ohio notice filings were made earlier this month, and the National Fuel and CenterPoint teams are working closely to ensure a smooth transition for customers and employees. We're really excited about this transaction and the value creation opportunity it offers.

Speaker #3: We're really excited about this transaction and the value creation opportunity it offers. Tim will have more details on the acquisition and our financing plans later in the call.

Tim will have more details on the acquisition and our financing plans later in the call. Bringing it all together, it's an exciting time to be in the natural gas industry. National Fuel has a unique set of integrated assets in the most prolific gas region of the country. Add to that a strong investment-grade balance sheet, and we are very well positioned to help develop the resource and build the infrastructure needed to serve the growing demand for natural gas. With that, I'll turn the call over to Tim.

Speaker #3: Bringing it all together, it's an exciting time to be in the natural gas industry. National Fuel has a unique set of integrated assets and the most prolific gas region of the country.

Speaker #3: Add to that a strong investment-grade balance sheet, and we are very well positioned to help develop the resource and build the infrastructure needed to serve the growing demand for natural gas.

Speaker #3: With that, I'll turn the call over to

Speaker #3: Tim. Thanks, Dave, and good

Timothy Silverstein: Thanks, Dave, and good morning, everyone. National Fuel had a great start to the fiscal year with Adjusted EPS of $2.06, which keeps us on track to achieve our full-year guidance. Since Dave hit on the high points for the quarter, I'll just briefly explain 2 items impacting comparability that result from our pending Ohio utility acquisition. The first relates to costs incurred ahead of the expected calendar Q4 closing. This is a combination of transaction-related costs, items such as legal fees and regulatory filings, as well as integration readiness costs to prepare us for post-close operations. We expect that a fair amount of the integration costs can be recovered in the future, particularly those tied to the development of IT systems to replace those that will remain with CenterPoint after closing. The second item is related to financing costs.

Tim Silverstein: Thanks, Dave, and good morning, everyone. National Fuel had a great start to the fiscal year with Adjusted EPS of $2.06, which keeps us on track to achieve our full-year guidance. Since Dave hit on the high points for the quarter, I'll just briefly explain 2 items impacting comparability that result from our pending Ohio utility acquisition.

Speaker #2: morning, everyone. National Fuel had a great start to the fiscal year. With adjusted EPS of $2.06, which keeps us on track to achieve our full year guidance.

Speaker #2: Since Dave hit on the high points for the quarter, I'll just briefly explain two items impacting comparability that result from our pending Ohio utility acquisition.

The first relates to costs incurred ahead of the expected calendar Q4 closing. This is a combination of transaction-related costs, items such as legal fees and regulatory filings, as well as integration readiness costs to prepare us for post-close operations. We expect that a fair amount of the integration costs can be recovered in the future, particularly those tied to the development of IT systems to replace those that will remain with CenterPoint after closing. The second item is related to financing costs.

Speaker #2: The first relates to costs incurred ahead of the expected calendar fourth quarter closing. This is a combination of transaction-related costs, items such as legal fees and regulatory filings.

Speaker #2: As well as integration readiness costs to prepare us for post-close operations. We expect that a fair amount of the integration costs can be recovered in the future, particularly those tied to the development of IT systems to replace those that will remain with CenterPoint after closing.

Speaker #2: The second item is related to financing costs. While raising permanent financing ahead of closing de-risks the acquisition, there is an associated cost in the form of earlier dilution and incremental interest expense.

Timothy Silverstein: While raising permanent financing ahead of closing de-risked the acquisition, there is an associated cost in the form of earlier dilution and incremental interest expense, both of which we plan to present as an item impacting comparability so investors can better see the results from current operations. Switching to the outlook for the remainder of the year, all of our previous assumptions remain unchanged. We are reaffirming our Adjusted EPS guidance range of $7.60 to $8.10 or $7.85 at the midpoint. We are seeing some tailwinds that could favorably impact full-year results, particularly on our Integrated Upstream and Gathering cost structure, and in basin prices, which have improved with recent cold weather. Natural gas prices remain the biggest variable for our outlook, and if the past few months are any indication, we expect to see more near-term weather-driven impacts.

While raising permanent financing ahead of closing de-risked the acquisition, there is an associated cost in the form of earlier dilution and incremental interest expense, both of which we plan to present as an item impacting comparability so investors can better see the results from current operations. Switching to the outlook for the remainder of the year, all of our previous assumptions remain unchanged.

Speaker #2: Both of which we plan to present as items impacting comparability, so investors can better see the results from current operations. Switching to the outlook for the remainder of the year, all of our previous assumptions remain unchanged.

We are reaffirming our Adjusted EPS guidance range of $7.60 to $8.10 or $7.85 at the midpoint. We are seeing some tailwinds that could favorably impact full-year results, particularly on our Integrated Upstream and Gathering cost structure, and in basin prices, which have improved with recent cold weather. Natural gas prices remain the biggest variable for our outlook, and if the past few months are any indication, we expect to see more near-term weather-driven impacts.

Speaker #2: We are reaffirming our adjusted EPS guidance range of $7.60 to $8.10, or $7.85 at the midpoint. We are seeing some tailwinds that could favorably impact full-year results.

Speaker #2: Particularly on our integrated upstream and gathering cost structure, an inbasement prices which have improved with recent cold weather. Natural gas prices remain the biggest variable for our outlook.

Speaker #2: And if the past few months are any indication, we expect to see more near-term weather-driven impacts. For example, yesterday the February contract settled at almost $7.50, a 140% increase from just two weeks ago.

Timothy Silverstein: For example, yesterday, the February contract settled at almost $7.50, a 140% increase from just two weeks ago. This was a record move in the 35-year history of a NYMEX natural gas contract. Over the same time period, we saw prices for the balance of the fiscal year as low as $3.00 and more recently in the $3.75 to $4.25 area. Given this dynamic, we decided to maintain our previous $3.75 assumption for the remainder of the fiscal year. Prices will likely keep moving around, and as a result, we will continue to provide earnings sensitivities at various levels. While pricing fluctuations will likely persist, our hedge book provides downside protection in 70% of our remaining production for the fiscal year, while allowing for us to capture upside to the extent higher prices persist.

For example, yesterday, the February contract settled at almost $7.50, a 140% increase from just two weeks ago. This was a record move in the 35-year history of a NYMEX natural gas contract. Over the same time period, we saw prices for the balance of the fiscal year as low as $3.00 and more recently in the $3.75 to $4.25 area.

Speaker #2: This was a record move in the 35-year history of a NIMEX natural gas contract. Over the same time period, we saw prices for the balance of the fiscal year as low as $3, and more recently in the 375 to 425 area.

Given this dynamic, we decided to maintain our previous $3.75 assumption for the remainder of the fiscal year. Prices will likely keep moving around, and as a result, we will continue to provide earnings sensitivities at various levels. While pricing fluctuations will likely persist, our hedge book provides downside protection in 70% of our remaining production for the fiscal year, while allowing for us to capture upside to the extent higher prices persist.

Speaker #2: Given this dynamic, we decided to maintain our previous $3.75 assumption for the remainder of the fiscal year. Prices will likely keep moving around, and as a result, we will continue to provide earnings sensitivities at various levels.

Speaker #2: While pricing fluctuations will likely persist, our hedge book provides downside protection in 70% of our remaining production for the fiscal year. While allowing for us to capture upside to the extent higher prices persist.

Speaker #2: Within our 2026 portfolio, we have approximately 80 Bcf of collars, with an average weighted floor of $3.60 and a cap of $4.75. These collars, along with our unhedged volumes, provide us with exposure to higher prices on more than 50% of our expected remaining production.

Timothy Silverstein: Within our 2026 portfolio, we have approximately 80 BCF of collars with an average weighted floor of $3.60 and a cap of $4.75. These collars, along with our unhedged volumes, provide us with exposure to higher prices on more than 50% of our expected remaining production. Looking beyond this fiscal year, we were opportunistic in the fall when the longer end of the curve moved up quickly. Across fiscal 2027 and 2028, we had swap layers between $4.00 and $4.25, and collars with weighted average floors in the high $3.00 area and caps well north of $5.00. At these prices, we are locking in strong cash flows and high returns. Switching to capital, the outlook is unchanged from our prior guidance.

Within our 2026 portfolio, we have approximately 80 BCF of collars with an average weighted floor of $3.60 and a cap of $4.75. These collars, along with our unhedged volumes, provide us with exposure to higher prices on more than 50% of our expected remaining production. Looking beyond this fiscal year, we were opportunistic in the fall when the longer end of the curve moved up quickly.

Speaker #2: Looking beyond this fiscal year, we were opportunistic in the fall when the longer end of the curve moved up quickly. Across fiscal '27 and '28, we had swap layers between $4.00 and $4.25, and collars with weighted average floors in the high $3.00 area and caps well north of $5.00.

Across fiscal 2027 and 2028, we had swap layers between $4.00 and $4.25, and collars with weighted average floors in the high $3.00 area and caps well north of $5.00. At these prices, we are locking in strong cash flows and high returns. Switching to capital, the outlook is unchanged from our prior guidance.

Speaker #2: At these prices, we are locking in strong cash flows and high returns. Switching to capital, the outlook is unchanged from our prior guidance. Collectively, with earnings, capital, and cash flow in line with previous expectations, we are confident in the strength of our balance sheet, which we expect to approach $1.75 times net debt to EBITDA.

Timothy Silverstein: Collectively, with earnings, capital, and cash flow in line with previous expectations, we are confident in the strength of our balance sheet, which we expect to approach 1.75 times net debt to EBITDA as we exit fiscal 2026. This outlook played into our decision to stay below the high end of the range of equity needed to fund our Ohio utility acquisition. As Dave mentioned, in December, we issued $350 million of common equity via a private placement. Coming out of the acquisition announcement, we had broad support for the transaction and its strategic merits. We received several unsolicited inbounds expressing interest in a transaction that could be executed in advance of our original public offering timeline. Given the strong demand, we were able to take equity risk off the table at a 2% to 3% discount to our market price at that time.

Collectively, with earnings, capital, and cash flow in line with previous expectations, we are confident in the strength of our balance sheet, which we expect to approach 1.75 times net debt to EBITDA as we exit fiscal 2026. This outlook played into our decision to stay below the high end of the range of equity needed to fund our Ohio utility acquisition. As Dave mentioned, in December, we issued $350 million of common equity via a private placement.

Speaker #2: As we exit fiscal '26. This outlook played into our decision to stay below the high end of the range of equity needed to fund our Ohio utility acquisition.

Speaker #2: As Dave mentioned, in December we issued $350 million of common equity via a private placement. Coming out of the acquisition announcement, we had broad support for the transaction and its strategic merits.

Coming out of the acquisition announcement, we had broad support for the transaction and its strategic merits. We received several unsolicited inbounds expressing interest in a transaction that could be executed in advance of our original public offering timeline. Given the strong demand, we were able to take equity risk off the table at a 2% to 3% discount to our market price at that time.

Speaker #2: We received several unsolicited inbounds executed in advance of our original public expressing interest in a transaction that could be offering timeline. Given the strong demand, we were able to take equity risk off the table at a 2 to 3% discount to our market price at that time.

Speaker #2: This transaction took care of our expected equity needs for this acquisition. When combined with our current business outlook, we are confident that by the end of the first year, post-closing, we will be able to achieve the low end of our previously disclosed 2.5 to 3.0 times net debt to EBITDA range.

Timothy Silverstein: This transaction took care of our expected equity needs for this acquisition. When combined with our current business outlook, we are confident that by the end of the first year post-closing, we will be able to achieve the low end of our previously disclosed 2.5 to 3 times net debt to EBITDA range. With equity needs solved, our focus turns to debt financing. Between the remaining proceeds needed for the acquisition at closing, as well as refinancing our term loan and October long-term debt maturity, we expect to issue approximately $1.5 billion in long-term debt. As a reminder, any public offering tied to acquisition financing of this size drives underwriters to require pro forma financial statements, which in turn are contingent on audited financials of the acquired asset.

This transaction took care of our expected equity needs for this acquisition. When combined with our current business outlook, we are confident that by the end of the first year post-closing, we will be able to achieve the low end of our previously disclosed 2.5 to 3 times net debt to EBITDA range. With equity needs solved, our focus turns to debt financing.

Speaker #2: With our equity needs solved, our focus turns to debt financing. Between the remaining proceeds needed for the acquisition at closing, as well as refinancing our term loan and October long-term debt maturity, we expect to issue approximately $1.5 billion in long-term debt.

Between the remaining proceeds needed for the acquisition at closing, as well as refinancing our term loan and October long-term debt maturity, we expect to issue approximately $1.5 billion in long-term debt. As a reminder, any public offering tied to acquisition financing of this size drives underwriters to require pro forma financial statements, which in turn are contingent on audited financials of the acquired asset.

Speaker #2: As a reminder, any public offering tied to acquisition financing of this size drives underwriters to require pro forma financial statements. Which in turn are contingent on audited financials of the acquired asset.

Timothy Silverstein: We expect to receive those audited financials in the next month or so, and we'll have the pro formas shortly thereafter, at which point we can begin evaluating the timing of our transaction. Sticking with CenterPoint, Dave gave a high-level update on the major work streams, but I wanted to touch on a few more points. First, the Ohio Commission issued its final order in CenterPoint's rate case, where they modified a few key terms of the proposed settlement. First, they slightly lowered the agreed-upon ROE to 9.79%, a 6 basis point reduction from the proposed settlement. This will have a fairly small impact on near-term earnings, roughly $500,000 per year. The other action the commission took was to extend the amortization period of deferrals related to various modernization trackers from 15 to 25 years.

We expect to receive those audited financials in the next month or so, and we'll have the pro formas shortly thereafter, at which point we can begin evaluating the timing of our transaction. Sticking with CenterPoint, Dave gave a high-level update on the major work streams, but I wanted to touch on a few more points.

Speaker #2: the next month or so, and we'll have We expect to receive those audited financials in the pro formas shortly thereafter, at which point we can begin evaluating the timing of our transaction.

Speaker #2: Sticking with CenterPoint, Dave gave a high-level update on the major work streams that I wanted to touch on a few more points. First, the Ohio Commission issued its final order in CenterPoint's rate case, where they modified a few key terms of the proposed settlement.

First, the Ohio Commission issued its final order in CenterPoint's rate case, where they modified a few key terms of the proposed settlement. First, they slightly lowered the agreed-upon ROE to 9.79%, a 6 basis point reduction from the proposed settlement. This will have a fairly small impact on near-term earnings, roughly $500,000 per year. The other action the commission took was to extend the amortization period of deferrals related to various modernization trackers from 15 to 25 years.

Speaker #2: First, they slightly lowered the agreed-upon ROE to 9.79%. The six basis point reduction from the proposed settlement will have a fairly small impact on near-term earnings, roughly $500,000 per year.

Speaker #2: The other action the Commission took was to extend the amortization period of deferrals, related to various modernization trackers from '15 to '25 years. In the near term, this has no impact on earnings, but does modestly reduce cash flows.

Timothy Silverstein: In the near term, this has no impact on earnings, but does modestly reduce cash flows. Longer term, this is actually a benefit, as we will be able to earn on a larger rate-based amount, which is a tailwind to our long-term earnings and cash flows. More broadly, the Ohio regulatory environment has further positive trends developing. Most notably, the Ohio governor recently signed into law a bill that modernizes the natural gas rate-making process. We were optimistic this would occur in the near term, but didn't incorporate it into our overall evaluation. The new construct significantly shortens the rate case timeline, which typically took 15 to 18 months, but now is required to be completed in 360 days. It also moves from a historic test year to a 3-year fully projected test year with annual true-ups to authorized ROEs.

In the near term, this has no impact on earnings, but does modestly reduce cash flows. Longer term, this is actually a benefit, as we will be able to earn on a larger rate-based amount, which is a tailwind to our long-term earnings and cash flows. More broadly, the Ohio regulatory environment has further positive trends developing.

Speaker #2: Longer term, this is actually a benefit, as we will be able to earn on a larger rate base amount, which is a tailwind to our long-term earnings and cash flows.

Speaker #2: More broadly, the Ohio regulatory environment has further positive trends developing. Most notably, the Ohio Governor recently signed into law a bill that modernizes the natural gas rate-making process.

Most notably, the Ohio governor recently signed into law a bill that modernizes the natural gas rate-making process. We were optimistic this would occur in the near term, but didn't incorporate it into our overall evaluation. The new construct significantly shortens the rate case timeline, which typically took 15 to 18 months, but now is required to be completed in 360 days. It also moves from a historic test year to a 3-year fully projected test year with annual true-ups to authorized ROEs.

Speaker #2: We were optimistic this would occur in the near term, but didn't incorporate it into our overall evaluation. The new construct significantly shortens the rate case timeline, which typically took 15 to 18 months.

Speaker #2: But now is required to be completed in 360 days. It also moves from a historic test year to a three-year fully projected test year, with annual true-ups to authorized ROEs.

Speaker #2: These are nice improvements from the current approach. As they minimize regulatory lag and provide greater certainty in achieving allowed returns, we remain excited about the Ohio utility acquisition.

Timothy Silverstein: These are nice improvements from the current approach, as they minimize regulatory lag and provide greater certainty in achieving allowed returns. We remain excited about the Ohio utility acquisition. As we spent more time with the employees that support this business, we've seen that we're not only acquiring a great asset, but also a great team. Overall, the outlook for our business is as strong as ever. Fiscal 2026 Adjusted EPS is projected to grow 14% over last year, and the setup for 2027 is for even more growth across the organization. Our balance sheet remains strong, which provides flexibility to capitalize on further growth opportunities that may arise. Overlaying this with the broader tailwinds across the natural gas industry, and you can see why we're excited about our ability to continue to create significant long-term value for shareholders. With that, I'll turn the call over to Justin.

These are nice improvements from the current approach, as they minimize regulatory lag and provide greater certainty in achieving allowed returns. We remain excited about the Ohio utility acquisition. As we spent more time with the employees that support this business, we've seen that we're not only acquiring a great asset, but also a great team. Overall, the outlook for our business is as strong as ever.

Speaker #2: And as we spent more time with the employees that support this business, we've seen that we're not only acquiring a great asset, but also a great team.

Speaker #2: Overall, the outlook for our business is a strong as ever. Fiscal '26 adjusted EPS is projected to grow 14% over last year. And the setup for 2027 is for even more growth across the organization.

Fiscal 2026 Adjusted EPS is projected to grow 14% over last year, and the setup for 2027 is for even more growth across the organization. Our balance sheet remains strong, which provides flexibility to capitalize on further growth opportunities that may arise. Overlaying this with the broader tailwinds across the natural gas industry, and you can see why we're excited about our ability to continue to create significant long-term value for shareholders. With that, I'll turn the call over to Justin.

Speaker #2: Our balance sheet remains strong, which provides flexibility to capitalize on further growth opportunities that may arise. Overlaying this with the broader tailwinds across the natural gas industry, you can see why we're excited about our ability to continue to create significant long-term value for shareholders.

Speaker #2: With that, I'll turn the call over to Justin.

Speaker #1: Thank you, Tim. And good morning, everyone. I want to begin by echoing Dave's appreciation for our dedicated employees and contractors. Your planning, communication, and teamwork throughout the recent storm and ongoing extreme cold weather has been exceptional.

Justin Loweth: Thank you, Tim, and good morning, everyone. I want to begin by echoing Dave's appreciation for our dedicated employees and contractors. Your planning, communication, and teamwork throughout the recent storm and ongoing extreme cold weather has been exceptional. Thank you for keeping our gas flowing and doing so safely. Turning to the quarter, our integrated upstream and gathering business delivered a strong start to fiscal 2026, driven by consistent execution across our operating teams. Net production was 109 Bcf, an increase of 12% over the first quarter of fiscal 2025. This significant production growth, paired with lower capital spending, highlights the strength of our Tioga Utica program and our relentless focus on capital efficiency. As we continue testing to further optimize well designs, we expect additional productivity gains in the quarters to come.

Speaker #1: Thank you for keeping our gas flowing and doing so safely. Turning to the quarter, our integrated upstream and gathering business delivered a strong start to fiscal '26.

Turning to the quarter, our integrated upstream and gathering business delivered a strong start to fiscal 2026, driven by consistent execution across our operating teams. Net production was 109 Bcf, an increase of 12% over the first quarter of fiscal 2025.

Speaker #1: Driven by consistent execution across our operating teams. Net production was 109 BCF, an increase of 12% over the first quarter of fiscal '25. This significant production growth, paired with lower capital spending, highlights the strength of our tidally Utica program and our relentless focus on capital efficiency.

This significant production growth, paired with lower capital spending, highlights the strength of our Tioga Utica program and our relentless focus on capital efficiency. As we continue testing to further optimize well designs, we expect additional productivity gains in the quarters to come.

Speaker #1: Testing to further optimize well designs. As we continue, we expect additional productivity gains in the quarters to come. We are reaffirming fiscal '26 guidance with production of 440 to 455 Bcf and capital of $560 to $610 million.

Justin Loweth: We are reaffirming fiscal 2026 guidance with production of 440 to 455 Bcf and capital of $560 to 610 million. We expect capital to be relatively steady throughout the year. Looking ahead, starting in the second half of the year, CenterPoint will maintain its plans to operate a single drilling rig and a full-time frac crew, and gathering will ramp up seasonal construction of pipelines and other infrastructure over the summer months. The only other item of note is the timing of activity for a joint development pad, which could pull forward about $10 million of capital into fiscal 2026. On production cadence, we anticipate Q2 volumes will be slightly down from Q1, in part due to till timing and deferring some activity during the recent storm.

We are reaffirming fiscal 2026 guidance with production of 440 to 455 Bcf and capital of $560 to 610 million. We expect capital to be relatively steady throughout the year. Looking ahead, starting in the second half of the year, CenterPoint will maintain its plans to operate a single drilling rig and a full-time frac crew, and gathering will ramp up seasonal construction of pipelines and other infrastructure over the summer months.

Speaker #1: We expect capital to be relatively steady throughout the year. Looking ahead, starting in the second half of the year, Seneca will maintain rig and a full-time frat its plans to operate a single drilling crew.

Speaker #1: And gathering will ramp up seasonal construction of pipelines and other infrastructure over the summer months. The only other item of note is the timing of activity for a joint development pad, which could pull forward about $10 million of capital into fiscal '26.

The only other item of note is the timing of activity for a joint development pad, which could pull forward about $10 million of capital into fiscal 2026. On production cadence, we anticipate Q2 volumes will be slightly down from Q1, in part due to till timing and deferring some activity during the recent storm.

Speaker #1: On production cadence, we anticipate Q2 volumes will be slightly down from Q1, deferring some activity during the recent storm. Moving into Q3, we expect production to increase.

Justin Loweth: Moving into Q3, we expect production to increase and then hold relatively steady through the end of the fiscal year as we bring online some large Tioga Utica pads during that timeframe. Looking ahead, we have several important initiatives underway to optimize future development. First, we are advancing our Tioga Utica well design through Gen 4 testing. This spring, a five-well lower Utica pad featuring wider inner well spacing and larger completion designs is expected to come online, enabling us to assess productivity and cost impacts, what we refer to as bang for our buck. In the upper Utica, we are piloting similar larger completions to evaluate whether the improved performance we have seen in the lower Utica can be replicated. Above ground, we are enhancing facility designs to support higher initial rates up to 40 million per day on longer laterals while minimizing incremental capital.

Moving into Q3, we expect production to increase and then hold relatively steady through the end of the fiscal year as we bring online some large Tioga Utica pads during that timeframe. Looking ahead, we have several important initiatives underway to optimize future development. First, we are advancing our Tioga Utica well design through Gen 4 testing.

Speaker #1: And then hold relatively steady through the end of the fiscal year as we bring online some large tidally Utica pads during that timeframe. Looking ahead, we have several important initiatives underway to optimize future development.

Speaker #1: First, we are advancing our tidally Utica well design through Gen 4 testing. This spring, a five-well lower Utica pad featuring wider interwell spacing and larger completion designs is expected to come online.

This spring, a five-well lower Utica pad featuring wider inner well spacing and larger completion designs is expected to come online, enabling us to assess productivity and cost impacts, what we refer to as bang for our buck.

Speaker #1: Enabling us to assess productivity and cost impacts, what we refer to as paying for our buck. In the upper Utica, we are piloting similar larger completions to evaluate whether the improved performance we have seen in the lower Utica can be replicated.

In the upper Utica, we are piloting similar larger completions to evaluate whether the improved performance we have seen in the lower Utica can be replicated. Above ground, we are enhancing facility designs to support higher initial rates up to 40 million per day on longer laterals while minimizing incremental capital.

Speaker #1: Above ground, we are enhancing facility designs to support higher initial rates up to $40 million per day on longer laterals while minimizing incremental capital.

Speaker #1: Second, we are just beginning to flow back our first full upper and lower Utica co-development pad and have more tests planned over the next 12 to 18 months.

Justin Loweth: Second, we are just beginning to flow back our first full Upper and Lower Utica co-development pad and have more tests planned over the next 12 to 18 months. While the Lower Utica is our current operational plan based on slightly better economic performance, our testing program is designed to confirm that view over a broader set of results and well designs. As results come in, we will preserve flexibility across both development paths and remain focused on identifying the highest returning integrated development program. Turning to gathering, our focus remains on supporting Seneca's volumes while adding new third-party production in Tioga County. Our near-term plan leverages existing facilities with target additions of new pipelines and compression. We are also building for the future and recently completed pad construction for the Croft Hollow Station, which is located in the northwestern section of our development area.

Second, we are just beginning to flow back our first full Upper and Lower Utica co-development pad and have more tests planned over the next 12 to 18 months. While the Lower Utica is our current operational plan based on slightly better economic performance, our testing program is designed to confirm that view over a broader set of results and well designs.

Speaker #1: While the Lower Utica is our current operational plan based on slightly better economic performance, our testing program is designed to confirm that view over a broader set of results and well designs.

As results come in, we will preserve flexibility across both development paths and remain focused on identifying the highest returning integrated development program. Turning to gathering, our focus remains on supporting Seneca's volumes while adding new third-party production in Tioga County.

Speaker #1: As results come in, we will preserve flexibility across both development paths. And remain focused on identifying the highest returning integrated development program. Turning to gathering, our focus remains on supporting Seneca's volumes while adding new third-party production in Tioga County.

Our near-term plan leverages existing facilities with target additions of new pipelines and compression. We are also building for the future and recently completed pad construction for the Croft Hollow Station, which is located in the northwestern section of our development area.

Speaker #1: Our near-term plan leverages existing facilities with target additions of new pipelines and compression. We are also building for the future, and recently completed pad construction for the Croft Hollow Station, which is located in the northwestern section of our development area.

Speaker #1: The build-out of this large centralized station and its associated pipeline network is designed to meet expected growth in both Seneca and third-party volumes over many years.

Justin Loweth: The build-out of this large centralized station and its associated pipeline network is designed to meet expected growth in both Seneca and third-party volumes over many years. Turning to the natural gas markets, Winter Storm Fern has brought very cold weather to a large portion of the US and with it, natural gas price volatility. We believe this kind of price fluctuation is the new normal and will persist in the coming years. Strong structural demand from LNG exports and power generation, combined with limited new storage and pipeline infrastructure, supports a price environment in the $3 to $5 range, with potential for weather-driven deviations lasting weeks or months. Given this outlook, we will maintain disciplined risk management practices and an emphasis on retaining upside during periods of peak demand. Our increasing future production is supported by a diversified and growing portfolio of firm transportation and firm sales.

The build-out of this large centralized station and its associated pipeline network is designed to meet expected growth in both Seneca and third-party volumes over many years. Turning to the natural gas markets, Winter Storm Fern has brought very cold weather to a large portion of the US and with it, natural gas price volatility.

Speaker #1: Turning to the natural gas markets, winter storm Fern has brought very cold weather to a large portion of the US, and with it, natural gas price volatility.

Speaker #1: We believe this kind of price fluctuation is the new normal. And will persist in the coming years. Strong structural demand from LNG exports and power generation, combined with limited new storage and pipeline infrastructure, supports a price environment in the three to five dollar range, with potential for weather-driven deviations lasting weeks or months.

We believe this kind of price fluctuation is the new normal and will persist in the coming years. Strong structural demand from LNG exports and power generation, combined with limited new storage and pipeline infrastructure, supports a price environment in the $3 to $5 range, with potential for weather-driven deviations lasting weeks or months.

Given this outlook, we will maintain disciplined risk management practices and an emphasis on retaining upside during periods of peak demand. Our increasing future production is supported by a diversified and growing portfolio of firm transportation and firm sales.

Speaker #1: Given this outlook, we will maintain disciplined risk management practices and an emphasis on retaining upside during periods of peak demand. Our increasing future production is supported by a diversified and growing portfolio of firm transportation and firm sales.

Speaker #1: Our total firm transportation capacity will grow from one BCF a day to 1.5 BCF a day over the next few years, with recently announced interstate pipeline projects and capacity releases we have secured.

Justin Loweth: Our total firm transportation capacity will grow from 1 Bcf a day to 1.5 Bcf a day over the next few years, with recently announced interstate pipeline projects and capacity releases we have secured. However, we are not stopping there and are actively evaluating opportunities to further expand our marketing portfolio. More near-term, we are tactically protecting our production with roughly 80% of our remaining volumes covered by physical firm sales that link our price realizations to mostly NYMEX and premium out-of-basin markets. On the sustainability front, I want to highlight a significant achievement. We recently executed a first-of-its-kind 10-year agreement to provide 250,000 MMBtu per day of MiQ-certified methane reduction certificates to a European utility. This agreement reinforces Seneca's leadership in responsibly sourced gas and provides a framework for similar transactions in the future.

Our total firm transportation capacity will grow from 1 Bcf a day to 1.5 Bcf a day over the next few years, with recently announced interstate pipeline projects and capacity releases we have secured. However, we are not stopping there and are actively evaluating opportunities to further expand our marketing portfolio.

Speaker #1: However, we are not stopping there, and are actively evaluating opportunities to further expand our marketing portfolio. More near-term, we are tactically protecting our production, with roughly 80% of our remaining volumes covered by physical firm sales that link our price realization to mostly Nimex and premium out-of-basin markets.

More near-term, we are tactically protecting our production with roughly 80% of our remaining volumes covered by physical firm sales that link our price realizations to mostly NYMEX and premium out-of-basin markets.

Speaker #1: On the sustainability front, I want to highlight a significant achievement. We recently executed a first-of-its-kind 10-year agreement to provide $250,000 MMBTU per day of MIQ-certified methane reduction certificates to a European utility.

On the sustainability front, I want to highlight a significant achievement. We recently executed a first-of-its-kind 10-year agreement to provide 250,000 MMBtu per day of MiQ-certified methane reduction certificates to a European utility. This agreement reinforces Seneca's leadership in responsibly sourced gas and provides a framework for similar transactions in the future.

Speaker #1: This agreement reinforces Seneca's leadership and responsibly sourced gas, and provides a framework for similar transactions in the future. In closing, our integrated upstream and gathering business entered 2026 from a position of strength.

Justin Loweth: In closing, our integrated upstream and gathering business entered 2026 from a position of strength, and our momentum continues to build. Our focus on capital efficiency through well-designed testing, co-development pilots, and ongoing operational optimization positions us to further enhance long-term value. Combined with our integrated gathering assets and diversified marketing portfolio, these efforts support best-in-class margins and growing free cash flow in the years ahead. With that, I'll ask the operator to open the line for questions.

In closing, our integrated upstream and gathering business entered 2026 from a position of strength, and our momentum continues to build. Our focus on capital efficiency through well-designed testing, co-development pilots, and ongoing operational optimization positions us to further enhance long-term value.

Speaker #1: And our momentum continues to build. Our focus on capital efficiency through well-designed testing, co-development pilots, and ongoing operational optimization provides us positions us to further enhance long-term value.

Speaker #1: Combined with our integrated gathering assets and diversified marketing portfolio, these efforts support best-in-class margins and growing free cash flow in the years ahead. With that, I'll ask the operator to open the line for questions.

Combined with our integrated gathering assets and diversified marketing portfolio, these efforts support best-in-class margins and growing free cash flow in the years ahead. With that, I'll ask the operator to open the line for questions.

Speaker #2: Thank you, Justin. To enter the queue for questions, please press star, followed by one on your telephone keypad. If you change your mind and would like to exit the queue, please press star, followed by two.

Operator: Thank you, Justin. To enter the queue for questions, please press star followed by one on your telephone keypad. If you change your mind and would like to exit the queue, please press star followed by two. And finally, when preparing to ask your question, please ensure that your device is unmuted locally. Our first question today will be from the line of Zach Parham with J.P. Morgan. Please go ahead. Your line is open.

Speaker #2: And finally, when preparing to ask your question, please ensure that your device is unmuted locally. Our first question today will be from the line of Zach Parham with JP Morgan.

Speaker #2: Please go ahead. Your line is open.

Speaker #3: Hey, thanks for taking my questions. First, just wanted to ask on if you have any ability to take advantage of local prices that have spiked over the last week or so.

[Analyst] (J.P. Morgan): Hey, thanks for taking my questions. First, just wanted to ask on if you have any ability to take advantage of local prices that have spiked over the last week or so. We've seen some of the local basis points spike into the triple digits on some days given the cold weather and the freeze-offs we've seen. Do you have any ability to flow incremental volumes and take advantage of that? Just curious if you were able to benefit at all there.

Zach Parham: Hey, thanks for taking my questions. First, just wanted to ask on if you have any ability to take advantage of local prices that have spiked over the last week or so. We've seen some of the local basis points spike into the triple digits on some days given the cold weather and the freeze-offs we've seen. Do you have any ability to flow incremental volumes and take advantage of that? Just curious if you were able to benefit at all there.

Speaker #3: We've seen some of the local basis points spike into the triple digits on some days, given the cold weather and the freeze-offs we've seen.

Speaker #3: Do you have any ability to flow incremental volumes and take advantage of that? Just curious if you were able to benefit at all.

Speaker #3: there.

Speaker #1: Yeah, Zach, it's been a

Justin Loweth: Yeah, Zach, it's been a remarkable time, hasn't it? The pricing has been historic highs. We've got a fantastic marketing portfolio, and so we do always keep open a little bit of gas daily, daily, including to markets like non-New York and Z5 on the Transco system, which saw some of those extremely high prices. So absolutely, there's a good base of our gas that we really just tie back to NYMEX, but we do keep a small portion open to try to take advantage of those prices when they happen. So it was a pretty interesting weekend, an exciting time. We're still seeing fantastic in-basin and pricing today too.

Speaker #1: remarkable time, hasn't it? The pricing has been historic highs. We've got a fantastic marketing portfolio. And so we do always keep open a little bit of gas daily daily, including to markets like non-New York and Z5 on the Transco system, which saw some of those extremely high prices.

So absolutely, there's a good base of our gas that we really just tie back to NYMEX, but we do keep a small portion open to try to take advantage of those prices when they happen. So it was a pretty interesting weekend, an exciting time. We're still seeing fantastic in-basin and pricing today too.

Speaker #1: So, absolutely, it’s not that there’s a good base of our gas that we really just tie back to NYMEX, but we do keep a small portion open to try to take advantage of those prices when they happen.

Speaker #1: So it was a pretty interesting weekend and exciting time. We're still seeing fantastic in-base and pricing today

Speaker #1: too. Thanks,

[Analyst] (J.P. Morgan): Thanks, Justin. Then my follow-up, just wanted to ask more broadly on the pipeline side. Could you talk about the potential for future growth projects in the pipeline business beyond Tioga Pathway and the line and lateral that you've announced? I know there's a lot of infrastructure development going on in the basin. Just curious what the opportunity set there could look like to drive further growth from the pipeline business.

Zach Parham: Thanks, Justin. Then my follow-up, just wanted to ask more broadly on the pipeline side. Could you talk about the potential for future growth projects in the pipeline business beyond Tioga Pathway and the line and lateral that you've announced? I know there's a lot of infrastructure development going on in the basin. Just curious what the opportunity set there could look like to drive further growth from the pipeline business.

Speaker #3: Justin, then my follow-up—just wanted to ask more broadly, on the pipeline side, could you talk about the potential for future growth projects in the pipeline business beyond Tioga Pathway and the line and lateral that you've announced?

Speaker #3: I know there's a lot of infrastructure development going on in the basin. Just curious what the opportunity set there could look like to drive further growth from the pipeline business.

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Q1 2026 National Fuel Gas Co Earnings Call

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Q1 2026 National Fuel Gas Co Earnings Call

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