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FINWIRES

National Fuel Plans Board Review of Proposed Split Into 2 Public Companies

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National Fuel Gas Company (NFG) board expects to complete its evaluation of a proposal to split the company into two independently traded businesses by Oct. 15, the company said in a statement on Thursday.

If approved, National Fuel shareholders would receive shares in both companies: National Fuel, focused on regulated natural gas operations, and a separate integrated upstream and gathering business.

The company said the separation could give each business greater flexibility in capital allocation, more tailored financial structures and clearer access to its respective investor base.

National Fuel President and Chief Executive Officer David P. Bauer said the company's integrated model has supported major investments and acquisitions in recent years, but that the operating and capital-market environments for its regulated and non-regulated businesses have evolved.

Following the proposed separation, National Fuel would operate as a fully regulated natural gas company with almost $5 billion in rate base and about 1.1 million utility customers across Ohio, New York and Pennsylvania.

Its pipeline and storage operations would have almost 5 billion cubic feet per day of contracted transportation capacity and 77 Bcf of contracted storage services.

The integrated upstream and gathering business would comprise about 1.2 million net acres in Appalachia, about 1.1 Bcf/d of net natural gas production and about 5 trillion cubic feet of reserves.

National Fuel said the business has over 40 years of prospective Marcellus and Utica development inventory.

The company said IUG has improved capital efficiency by about 25% since shifting development to its Eastern Development Area in 2023.

Its integrated gathering assets and firm transportation capacity provide control over operating costs and access to natural gas markets.

If pursued, the separation would distribute integrated upstream and gathering shares to National Fuel shareholders and would be tax-free under US federal income tax rules.

Goldman Sachs is serving as financial adviser, while Skadden, Arps, Slate, Meagher & Flom is providing legal counsel.

Price: $80.67, Change: $+0.32, Percent Change: +0.40%

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