National Fuel Gas Company (NYSE:NFG) Q2 2022 Earnings Conference Call May 6, 2022 11:00 AM ET

Company Participants

Brandon Haspett - Director of IR

Dave Bauer - President & CEO

Justin Loweth - President Seneca Resources

Karen Camiolo - Treasurer & Principal Financial Officer

Conference Call Participants

Neil Mehta - Goldman Sachs

Holly Stewart - Scotiabank

John Abbott - Bank of America

Trafford Lamar - Raymond James

Zach Parham - JPMorgan

Operator

Ladies and gentlemen, thank you for standing by. And welcome to Q2 2022 National Fuel Gas Company Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions].

I would now like to hand the conference over to your first speaker today, Brandon Haspett, Director of Investor Relations. Please go ahead.

Brandon Haspett

Thank you, RJ, and good morning. We appreciate you joining us on today's conference call for a discussion of last evening's earnings release.

With us on the call from National Fuel Gas Company are Dave Bauer, President and Chief Executive Officer; Karen Camiolo, Treasurer and Principal Financial Officer; and Justin Lowe, President of Seneca Resources and National Fuel Midstream. At the end of the prepared remarks, we'll open the discussion to questions. The second quarter fiscal 2022 earnings release and May Investor Presentation have been posted on our Investor Relations website. We may refer to these materials during today's call.

We would like to remind you that today's teleconference will contain forward-looking statements. While National Fuel's expectations, beliefs and projections are made in good faith and are believed to have a reasonable basis, actual results may differ materially. These statements speak only as of the date on which they are made, and you may refer to last in earnings release for a listing of certain specific risk factors.

With that, I'll turn it over to Dave Bauer.

Dave Bauer

Thanks, Brandon. Good morning, everyone. National Fuel had a great second quarter. Adjusted operating results were $1.68 per share, up 25% year-over-year with each of our four major reporting segments contributing to the increase.

Seneca had an outstanding quarter, both operationally and financially. Production for the quarter was up sequentially and relative to last year. Net increase, combined with the ongoing rise in commodity prices caused earnings to grow by 50% over last year. As we announced in last night's release, Seneca has entered into an agreement to sell our California operations to Sentinel Peak for $280 million in cash and $30 million in contingent consideration.