National Fuel Gas Company (NYSE: NFG) (“National Fuel” or the “Company”) today announced its updated capital expenditure guidance for fiscal years 2012 and 2013 as well as updated production forecasts for Seneca Resources Corporation (“Seneca”), the Company’s wholly-owned exploration and production subsidiary.
The Company is providing an updated production forecast range for the entire 2013 fiscal year of 112 to 126 billion cubic feet equivalent (“Bcfe”), which includes 88 to 98 Bcfe from the Marcellus Shale and 19 to 21 Bcfe from its California crude oil properties.
The Company is also revising its production forecast range for the entire 2012 fiscal year to 81 to 90 Bcfe, a decrease from the previous forecast of 85 to 95 Bcfe. This reduction is a result of the Company’s response to a significant decline in natural gas prices, in combination with lower-than-anticipated production from Seneca’s non-operated joint venture in the Marcellus Shale.
Currently, Seneca has curtailed natural gas production from the Marcellus Shale of approximately 15 million cubic feet (“MMcf”) per day, which represents volumes that would have been sold at spot market pricing. Such pricing typically has been lower than the value received by Seneca on volumes sold to meet current contracted firm sales agreements with various third parties. Seneca is also delaying certain well completion activities within its Marcellus operations.“National Fuel and its subsidiaries have always focused on maximizing the long term value of assets, and today is no different,” said David F. Smith, Chairman and Chief Executive Officer of National Fuel. “Despite the headwinds we face in the current natural gas price environment, the quality of our assets and the strength of our balance sheet provide us with the flexibility to make decisions that are beneficial to the Company in the long run. By curtailing a modest amount of current natural gas production and delaying some Marcellus completions, we are still able to increase production and achieve growth across many of our businesses while preserving the value of our assets for the future when we anticipate higher natural gas prices.”
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV