This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

National Fuel Gas' CEO Discusses F4Q 2011 Results - Earnings Call Transcript

Stocks in this article: NFG

Last month, Supply Corporation placed its line in expansion project and service and I expect that Empire’s Tioga County Extension Project, which takes advantage of the relatively strong market north of the border, will be in service this quarter. Combined, those two projects will add $23.7 million in revenues in fiscal 2012. After the contracts underlying those projects have been ramped up to their full volumes, which will take about 18 months or so, annual pipeline and storage revenues will be impacted by about $36 million.

Our utility turned in a very strong performance despite the continued weak economy. Thanks to a number of revenue protecting mechanisms, things like revenue decoupling, weather normalization, 90-10 symmetrical sharing. Our utility earnings are much less sensitive to macro economic cycles. This stability not only benefits our retail customers, but our shareholders as well. Like our pipeline and storage earnings, utility earnings are not particularly sensitive to commodity price volatility, which services as a nice hedge to E&P earnings.

As we’ve said in the past, the stable predictable earnings of the regulated companies serve as the foundation for our longstanding dividend to which we remain committed.

Looking ahead, we’re expecting an even better year in fiscal 2012. In E&P segment, we’re adding six Seneca operated rig in early 2012 and plan to drill on the order of 50% more net wells in 2012 than we did in 2011. As a result, we anticipate production growth of nearly 40% and look to maintain a similar growth rate in the following years.

A top priority, really the top priority in the E&P segment will be the further delineation of our Western acreage. We made good progress on this front in 2011, delineating our extensive Owl’s Nest area. As a result, beginning in January 2012, we plan to operate one or two rigs in this 90,000-acre block, which is largely owned in fee and thus royalty free.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs