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National Fuel Gas Company (NYSE: NFG) (“National Fuel” or the “Company”) today confirmed its existing capital expenditure guidance for fiscal year 2013 and provided a preliminary range for fiscal year 2014. Additionally, Seneca Resources Corporation (“Seneca”), the Company’s wholly-owned exploration and production subsidiary, reiterated its fiscal year 2013 production forecast and initiated its guidance range for fiscal 2014.
The Company is providing a preliminary production forecast range for the entire 2014 fiscal year of 126 to 138 billion cubic feet equivalent (“Bcfe”). The Company is also maintaining its production forecast range for the entire 2013 fiscal year at 102 to 112 Bcfe. At the midpoint of these production ranges, production growth for each of fiscal 2013 and 2014 is estimated to be 28 percent and 23 percent, respectively.
Fiscal 2014 Preliminary Production Forecast
East Division (Appalachia)
105 to 115 Bcfe
West Division (California/Kansas)
21 to 23 Bcfe
For fiscal year 2014, the Company forecasts preliminary total capital expenditures in the range of $770 to $945 million. The Company is also maintaining its forecast for fiscal 2013 capital expenditures in the range of $665 to $795 million. The breakout of fiscal 2014 capital expenditures by business is provided in the table below.
Fiscal 2014 Preliminary Capital Expenditure Forecast
Exploration & Production Segment
$550 to $650 million
Pipeline & Storage Segment
$80 to $100 million
National Fuel Gas Midstream Corp.
$75 to $125 million
$65 to $70 million
Within the Exploration & Production segment, East Division (Appalachia) fiscal year 2014 capital expenditures are forecasted to be in the range of $460 to $520 million. Although the Company anticipates maintaining the current horizontal rig count of three, overall drilling and completion activity will increase modestly as a result of improving efficiency. Capital expenditures in the West Division (California/Kansas) are anticipated to be between $90 and $130 million.