On this page of StockholderLetter.com we present the latest annual shareholder letter from NATIONAL FUEL GAS CO — ticker symbol NFG. Reading current and past NFG letters to shareholders can bring important insights into the investment thesis.
2024 Annual Report
Dear Fellow Shareholders I am proud of what National Fuel and our 2,300 employees accomplished during the fiscal year. The commitment of our talented workforce to safely and reliably produce, store, transport and deliver critical energy supplies drove strong operational performance, and provides an excellent foundation for earnings and free cash flow growth in the years ahead. As the outlook for both the natural gas industry and National Fuel continues to improve, we expect our integrated mix of assets will generate significant long-term value for our shareholders. Enhancing Upstream and Gathering Capital Efficiency Significant Pipeline & Storage and Utility Growth In fiscal 2024, our integrated upstream and gathering businesses completed their multi-year transition to a development plan focused on the Company s prolific Eastern Development Area (EDA). Driving this transition was the high grading of our natural gas acreage portfolio, which was enhanced through several strategic acquisitions over the past few years. The value proposition of our best-in-class EDA assets was evident in the past fiscal year, as Seneca experienced continued strong well results, and achieved record production while meaningfully reducing capital expenditures. With over a decade of remaining high-quality inventory in this operating area, we believe there is significant long-term value embedded in this untapped resource, providing a substantial runway to deliver increasing free cash flow in the years to come. Our outlook for growth remains strong within our regulated businesses. In fiscal 2024, revenue increased 9% in our federally regulated Pipeline & Storage segment, driven by a 2023 rate case settlement at National Fuel Gas Supply Corporation. This settlement will drive additional revenue growth in fiscal 2025 as we experience the full year benefit. As we look further ahead, our focus will remain on important system modernization efforts, as well as opportunities to expand our facilities, both of which will grow earnings and rate base in this business. One great example of this growth is our Tioga Pathway Project. This approximately $100 million project has a late 2026 target in-service date and will provide a critical outlet for 190,000 dekatherms per day of Seneca s EDA production. I m excited for the future of the natural gas industry and for National Fuel. Our combination of high-quality assets and strong operational execution continues to drive growth opportunities across our diversified natural gas businesses, while supporting increased regional and national energy demand. Looking ahead, I strongly believe that natural gas will remain a foundational element of the energy complex, and that an all of the above energy approach, which appropriately focuses on critical affordability, reliability and sustainability considerations, will provide long-term benefits for our shareholders, consumers and the broader economy. David P. Bauer NATIONAL FUEL GAS COMPANY
In our Utility segment, ongoing investments to enhance the safety and reliability of our systems continue to deliver significant earnings growth. Looking at fiscal 2024, our August 2023 settlement of a rate proceeding in our Pennsylvania jurisdiction drove an 18% increase in earnings versus the prior year. As we look to 2025 and beyond, the benefits from our recently approved Joint Proposal in our New York jurisdiction will deliver additional growth. Beyond that, we expect to continue to invest in the safety and reliability of our pipeline systems, driving earnings growth at this business over the long term. Increasing Shareholder Returns In June, our Board of Directors authorized a 4% increase in our longstanding dividend. This was the Company s 122nd consecutive year of dividend payments and our 54th consecutive increase. National Fuel is in elite company as one of only approximately 50 public companies in the United States to increase their dividend for more than half a century. In addition to our dividend, our Board of Directors authorized a $200 million share repurchase program in March, which is our first since 2008. Underpinned by the strength of our balance sheet and our outlook for free cash flow, we are on target to execute this program by the close of 2025. Strong Shareholder Returns Greater than $250M Returned to Shareholders in Fiscal 2024 54 Years of Consecutive Dividend Growth Annual Rate at Fiscal Year-End $2.06 $0.19 Natural Gas is an Essential Part of an All of the Above Future 1970 Despite the significant affordability and reliability benefits of natural gas, over the past few years we ve continued to see a push from various policymakers to electrify everything, as quickly as possible. From its inception, this path was fraught with challenges, both as to cost and feasibility. As these real-world challenges come further into focus, there is an increasing realization that large-scale electrification will take considerably longer and cost substantially more than initially envisioned. Additionally, we are seeing a shift in mindset to one that balances reliability, resiliency and affordability with emissions reductions, and supports natural gas as a key complement to renewables. In this regard, we continue to advocate for an all of the above approach one that combines low-cost natural gas with other tools such as hybrid heating solutions and low-carbon sources of energy to meet the needs of all constituents. To meet growing regional, national and global energy needs, it s imperative that we use all the tools available to us, with natural gas being one of the most critical. Today, and for the foreseeable future, we expect natural gas will be necessary to meet energy demand, including critical baseload power generation and the heating needs of customers throughout the country. We believe that National Fuel, with our integrated assets sitting within the highly prolific Appalachian Basin, will play an important part in our energy future. Our strong balance sheet, positive outlook for growth and ongoing commitment to delivering cash to shareholders position National Fuel to create significant long-term value. 1980 1990 2000 2010 2024 New $200M Share Repurchase Program Authorized in March 2024 Repurchased $65M of common stock in scal 2024 Cover: A drilling rig operates at a well pad in Tioga County, Pa., part of Seneca Resources Eastern Development Area. Seneca Resources prioritizes the health and safety of the community, embracing sustainable practices that protect Pennsylvania s picturesque landscapes. Opposite Page: In 1916, a predecessor to Supply Corporation developed the rst underground natural gas storage reservoir in the United States at Zoar Field, 40 miles south of Buffalo, N.Y. The exibility and resiliency provided by storage is used throughout the country today and is key to maintaining a reliable natural gas delivery system. David P. Bauer President and Chief Executive Officer January 6, 2025 2024 ANNUAL REPORT 1
Fiscal 2024 Highlights Seneca Resources Production (Bcfe) Utility Investment in Safety ( $ millions) 2024 392 2024 $147 2023 372 2023 $109 2022 352 2022 $83 2021 327 2021 $80 Gathering Revenues ($ millions) Pipeline & Storage Revenues ($ millions) 2024 $244 2024 $412 2023 $230 2023 $379 2022 $215 2022 $377 2021 $193 2021 $344 Significant Progress on Emissions Reductions Program Through 2023 Reduction Since 2020 2030 Target Exploration & Production Utility 48.5% 27.8% 28.1% 9.7% Methane Intensity Reduction Methane Intensity Reduction Methane Intensity Reduction 40% 30% 50% 30% Reduction Reduction Reduction Reduction Page 3: Utility employees install a natural gas meter set at the site of the Buffalo Bills new Highmark Stadium to support double the gas usage of the previous stadium, fuel games on a new grass eld and keep the fans warm. NATIONAL FUEL GAS COMPANY Pipeline & Storage Methane Intensity Reduction Page 2: Supply Corporation employee at Concord Station in Springville, N.Y., inspects a vent gas recovery system ow meter. Vent gas recovery captures gas that would have previously vented to atmosphere, reducing emissions. 2 Gathering
2024 ANNUAL REPORT 3
 • shareholder letter icon 1/24/2025 Letter Continued (Full PDF)
 • stockholder letter icon 1/20/2023 NFG Stockholder Letter
 • stockholder letter icon 1/19/2024 NFG Stockholder Letter
 • stockholder letter icon More "Gas Utilities" Category Stockholder Letters
 • Benford's Law Stocks icon NFG Benford's Law Stock Score = 61


NFG Shareholder/Stockholder Letter Transcript:

2024
Annual
Report

Dear Fellow Shareholders
I am proud of what National Fuel and our 2,300 employees accomplished during the fiscal year. The commitment
of our talented workforce to safely and reliably produce, store, transport and deliver critical energy supplies drove
strong operational performance, and provides an excellent foundation for earnings and free cash flow growth in the
years ahead. As the outlook for both the natural gas industry and National Fuel continues to improve, we expect our
integrated mix of assets will generate significant long-term value for our shareholders.
Enhancing Upstream and Gathering Capital Efficiency
Significant Pipeline & Storage and Utility Growth
In fiscal 2024, our integrated upstream and gathering businesses
completed their multi-year transition to a development plan
focused on the Company   s prolific Eastern Development Area
(EDA). Driving this transition was the high grading of our natural gas
acreage portfolio, which was enhanced through several strategic
acquisitions over the past few years. The value proposition of our
best-in-class EDA assets was evident in the past fiscal year, as
Seneca experienced continued strong well results, and achieved
record production while meaningfully reducing capital expenditures.
With over a decade of remaining high-quality inventory in this
operating area, we believe there is significant long-term value
embedded in this untapped resource, providing a substantial
runway to deliver increasing free cash flow in the years to come.
Our outlook for growth remains strong within our regulated
businesses. In fiscal 2024, revenue increased 9% in our federally
regulated Pipeline & Storage segment, driven by a 2023 rate case
settlement at National Fuel Gas Supply Corporation. This settlement
will drive additional revenue growth in fiscal 2025 as we experience
the full year benefit. As we look further ahead, our focus will remain
on important system modernization efforts, as well as opportunities
to expand our facilities, both of which will grow earnings and rate
base in this business. One great example of this growth is our Tioga
Pathway Project. This approximately $100 million project has a
late 2026 target in-service date and will provide a critical outlet for
190,000 dekatherms per day of Seneca   s EDA production.

I   m excited for the future of the natural gas industry and for National Fuel. Our combination
of high-quality assets and strong operational execution continues to drive growth
opportunities across our diversified natural gas businesses, while supporting increased
regional and national energy demand. Looking ahead, I strongly believe that natural
gas will remain a foundational element of the energy complex, and that an    all of the
above    energy approach, which appropriately focuses on critical affordability, reliability
and sustainability considerations, will provide long-term benefits for our shareholders,
consumers and the broader economy.
    David P. Bauer
NATIONAL FUEL GAS COMPANY


In our Utility segment, ongoing investments to enhance the safety
and reliability of our systems continue to deliver significant earnings
growth. Looking at fiscal 2024, our August 2023 settlement of a rate
proceeding in our Pennsylvania jurisdiction drove an 18% increase in
earnings versus the prior year. As we look to 2025 and beyond, the
benefits from our recently approved Joint Proposal in our New York
jurisdiction will deliver additional growth. Beyond that, we expect to
continue to invest in the safety and reliability of our pipeline systems,
driving earnings growth at this business over the long term.
Increasing Shareholder Returns
In June, our Board of Directors authorized a 4% increase in our
longstanding dividend. This was the Company   s 122nd consecutive
year of dividend payments and our 54th consecutive increase.
National Fuel is in elite company as one of only approximately
50 public companies in the United States to increase their dividend
for more than half a century. In addition to our dividend, our Board
of Directors authorized a $200 million share repurchase program in
March, which is our first since 2008. Underpinned by the strength
of our balance sheet and our outlook for free cash flow, we are on
target to execute this program by the close of 2025.
Strong Shareholder
Returns
Greater than $250M Returned
to Shareholders in Fiscal 2024
54 Years of Consecutive
Dividend Growth
Annual Rate at Fiscal Year-End
$2.06
$0.19
Natural Gas is an Essential Part of an    All of the
Above    Future
1970
Despite the significant affordability and reliability benefits of natural
gas, over the past few years we   ve continued to see a push from
various policymakers to electrify everything, as quickly as possible.
From its inception, this path was fraught with challenges, both
as to cost and feasibility. As these real-world challenges come
further into focus, there is an increasing realization that large-scale
electrification will take considerably longer and cost substantially
more than initially envisioned. Additionally, we are seeing a shift in
mindset to one that balances reliability, resiliency and affordability
with emissions reductions, and supports natural gas as a key
complement to renewables.
In this regard, we continue to advocate for an    all of the above    approach
   one that combines low-cost natural gas with other tools such as
hybrid heating solutions and low-carbon sources of energy to meet
the needs of all constituents. To meet growing regional, national and
global energy needs, it   s imperative that we use all the tools available
to us, with natural gas being one of the most critical. Today, and for
the foreseeable future, we expect natural gas will be necessary to
meet energy demand, including critical baseload power generation
and the heating needs of customers throughout the country.
We believe that National Fuel, with our integrated assets sitting within
the highly prolific Appalachian Basin, will play an important part in
our energy future. Our strong balance sheet, positive outlook for
growth and ongoing commitment to delivering cash to shareholders
position National Fuel to create significant long-term value.
1980
1990
2000
2010
2024
New $200M Share Repurchase
Program Authorized in March 2024
Repurchased
$65M
of common stock in    scal 2024
Cover: A drilling rig operates at a well pad in Tioga County,
Pa., part of Seneca Resources    Eastern Development Area.
Seneca Resources prioritizes the health and safety of the
community, embracing sustainable practices that protect
Pennsylvania   s picturesque landscapes.
Opposite Page: In 1916, a predecessor to Supply
Corporation developed the    rst underground natural gas
storage reservoir in the United States at Zoar Field, 40 miles
south of Buffalo, N.Y. The    exibility and resiliency provided
by storage is used throughout the country today and is key
to maintaining a reliable natural gas delivery system.
David P. Bauer
President and Chief Executive Officer
January 6, 2025
2024 ANNUAL REPORT
1

Fiscal 2024 Highlights
Seneca Resources Production (Bcfe)
Utility Investment in Safety ( $ millions)
2024
392
2024
$147
2023
372
2023
$109
2022
352
2022
$83
2021
327
2021
$80
Gathering Revenues ($ millions)
Pipeline & Storage Revenues ($ millions)
2024
$244
2024
$412
2023
$230
2023
$379
2022
$215
2022
$377
2021
$193
2021
$344
Significant Progress on Emissions Reductions Program Through 2023
Reduction
Since
2020
2030
Target
Exploration &
Production
Utility
48.5%
27.8%
28.1%
9.7%
Methane Intensity
Reduction
Methane Intensity
Reduction
Methane Intensity
Reduction
40%
30%
50%
30%
Reduction
Reduction
Reduction
Reduction
Page 3: Utility employees install a natural gas meter
set at the site of the Buffalo Bills    new Highmark
Stadium to support double the gas usage of the
previous stadium, fuel games on a new grass    eld
and keep the fans warm.
NATIONAL FUEL GAS COMPANY
Pipeline &
Storage
Methane Intensity
Reduction
Page 2: Supply Corporation employee at Concord
Station in Springville, N.Y., inspects a vent gas recovery
system    ow meter. Vent gas recovery captures gas
that would have previously vented to atmosphere,
reducing emissions.
2
Gathering

2024 ANNUAL REPORT
3



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