National Fuel Gas Reports Strong Q2, Files for $95M FERC Rate Increase, Updates Acquisition Financing
Summary
National Fuel Gas reported strong Q2 earnings and operating cash flow, filed for a significant $95 million FERC rate increase, and provided updates on the financing for its $2.62 billion CenterPoint Ohio acquisition.
Key Events
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Strong Q2 Fiscal 2026 Financial Results
Net income available for common stock increased to $429.3 million for the six months ended March 31, 2026, up from $261.3 million in the prior year, with basic EPS rising to $4.61 from $2.88. Operating cash flow also significantly increased to $657.3 million from $473.9 million, partly due to the absence of prior-year impairment charges.
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FERC Rate Case Filing for $95 Million Increase
Supply Corporation filed a rate case with FERC on April 30, 2026, proposing rate increases effective November 1, 2026. The filing requests an annual cost of service of approximately $404 million, representing a $95 million increase from its 2023 rate proceeding settlement.
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Update on $2.62 Billion CenterPoint Ohio Acquisition Financing
The company provided details on the financing for its pending $2.62 billion acquisition of CenterPoint Ohio, including a $338.4 million private placement of common stock completed in December 2025 and a $2.28 billion bridge loan facility commitment.
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Increased Revolving Credit Facility
On March 27, 2026, the company entered into an Amended and Restated Credit Agreement, increasing its unsecured committed revolving credit facility by $300 million to $1.3 billion, with a maturity date of March 27, 2031.
Analysis
National Fuel Gas Company delivered strong Q2 fiscal 2026 financial results, marked by a significant increase in net income and operating cash flow, partly due to the absence of prior-year impairment charges. A notable new development is the filing of a rate case with FERC, seeking an annual cost of service increase of $95 million for its Supply Corporation segment, which, if approved, could materially enhance future revenues. The company is actively managing its capital structure, having secured financing for its $2.62 billion CenterPoint Ohio acquisition, including a $338.4 million equity raise and an increased $1.3 billion revolving credit facility. While the share repurchase program is suspended due to the acquisition, the overall financial health and strategic initiatives indicate a stable outlook.
At the time of this filing, NFG was trading at $86.27 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $8.2B. The 52-week trading range was $75.73 to $97.06. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.