National Fuel Gas Company · NYSE:NFG
National Fuel Gas — UBS Houston Energy Conference 2011
48 slides from National Fuel Gas's conference presentation, Aug 9, 2011
Slide 1: UBS Houston Energy Conference
UBS Houston Energy Conference August 10, 2011 Exhibit 99
Slide 2: Safe Harbor for Forward Looking Statements
Safe Harbor For Forward Looking Statements This presentation may contain “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995, including statements regarding future prospects, plans, performance and capital structure, anticipated capital expenditures and co
Slide 3: National Fuel Gas Company Business Segment Reporting
National Fuel Gas Company UBS Houston Energy Conference – August 10, 2011 National Fuel Gas Company Business Segment Reporting Exploration & Production Seneca Resources Corporation Pipeline & Storage National Fuel Gas Supply Corporation Empire Pipeline, Inc. Utility National Fuel Gas Distribution Co
Slide 4: UBS Houston Energy Conference – August 10, 2011
UBS Houston Energy Conference – August 10, 2011
Slide 5: UBS Houston Energy Conference – August 10, 2011
UBS Houston Energy Conference – August 10, 2011
Slide 6: UBS Houston Energy Conference – August 10, 2011
UBS Houston Energy Conference – August 10, 2011
Slide 7: Net Income from Continuing Operations Excluding Items Impacting Comparability
(1) A reconciliation to GAAP Net Income is included at the end of this presentation. E&P $121.0 MM 54.5% UBS Houston Energy Conference – August 10, 2011 Net Income from Continuing Operations Excluding Items Impacting Comparability (1) National Fuel Gas Company $222.0 Million Twelve Months Ended June
Slide 8: Capital Expenditures from Continuing Operations
(1) A reconciliation to Capital Expenditures as presented on the Consolidated Statement of Cash Flows is included at the end of this presentation. $147 $192 $188 $398 $600-655 $785-875 $54 $57 $56 $58 $55-60 $55-60 UBS Houston Energy Conference – August 10, 2011 National Fuel Gas Company Capital Exp
Slide 9: Capital Structure
Long-Term Debt 36% Shareholders’ Equity 64% Long-Term Debt 36% Shareholders’ Equity 64% At June 30, 2011, Comprehensive Shareholders’ Equity, Long-Term Debt and the Current Portion of Long-Term Debt totaled $2.90 Billion as presented on the Company’s Balance Sheet, of which $0.899 Billion was Long-T
Slide 10: Exploration & Production
UBS Houston Energy Conference – August 10, 2011 Exploration & Production Seneca Resources Corporation
Slide 11: Fiscal Year End Proved Reserves
UBS Houston Energy Conference – August 10, 2011 (1) At September 30, 2010 Exploration & Production Fiscal Year End Proved Reserves (1) West – California Reserves: 333 Bcfe (47%) (55.5 MMBoe) Gulf of Mexico Reserves: 34 Bcfe (5%) East – Appalachia Reserves: 333 Bcfe (48%) Total Proved Reserves: 700 B
Slide 12: Historical Daily Production
UBS Houston Energy Conference – August 10, 2011 Exploration & Production Historical Daily Production West Upper Devonian Gulf Marcellus -
Slide 13: Capital Expenditures by Region
UBS Houston Energy Conference – August 10, 2011 (1) Does not include the $34.9MM acquisition of Ivanhoe’s US-based assets in California, as this was accounted for as an investment in subsidiaries on the Statement of Cash Flows, and was not included in Capital Expenditures. Exploration & Production C
Slide 14: Annual Production by Region
UBS Houston Energy Conference – August 10, 2011 Exploration & Production Annual Production by Region Marcellus production in Fiscal 2012 could equal the entire company production in Fiscal 2011
Slide 15: California
UBS Houston Energy Conference – August 10, 2011 Exploration & Production California
Slide 16: Seneca's California Properties
UBS Houston Energy Conference – August 10, 2011 As of March 27, 2011 Seneca’s California Properties South Lost Hills ~1,800 BOEPD Monterey Shale Primary 216 Active Wells Sespe ~990 BOEPD Sespe Formation Primary 193 Active Wells North Lost Hills ~1,235 BOEPD Tulare & Etchegoin Formation Primary & Ste
Slide 17: California Average Daily Production
UBS Houston Energy Conference – August 10, 2011 California Average Daily Production Modest capital spending to maintain production Pursue additional bolt-on acquisitions 2012 Plans: CapEx - $45-55 MM Expect modest production growth
Slide 18: Fiscal Year 2011 Sespe Field Development Plans
UBS Houston Energy Conference – August 10, 2011 California Fiscal Year 2011 Sespe Field Development Plans First drilling for Seneca at Sespe since 1991 Will drill six wells during this fiscal year Wells to be drilled at 10-acre spacing: 4 wells Test wells to be drilled at 5-acre spacing: 2 wells If
Slide 19: East Division
UBS Houston Energy Conference – August 10, 2011 East Division Exploration & Production
Slide 20: East Division Average Daily Production
UBS Houston Energy Conference – August 10, 2011 East Division Average Daily Production Rapid growth in the East Division as Marcellus is ramping up
Slide 21: Marcellus Shale: Seneca's Pennsylvania Acreage
UBS Houston Energy Conference – August 10, 2011 Marcellus Shale Seneca’s Pennsylvania Acreage Seneca Resource Acreage Position 745,000 Net Acres in the heart of the PA Marcellus fairway Risked Resource Potential: 8-15 TCFE 80% Fee – Seneca owns the minerals No lease expiration 94% Average NRI SRC Le
Slide 22: Marcellus Shale: Seneca's Development Areas
UBS Houston Energy Conference – August 10, 2011 Marcellus Shale Seneca’s Development Areas SRC Lease Acreage SRC Fee Acreage Eastern Development Area (Mostly Leased) Western Development Area (Mostly Fee and HBP)
Slide 23: Marcellus Shale Eastern Development Area
UBS Houston Energy Conference – August 10, 2011 Tioga/Lycoming/Potter 55,000 Acres Potential: 2 Tcf Marcellus Shale Eastern Development Area Covington Area – Full Development 47 Wells Drilled; 39 Producing Wells Gross Production: ~120 MMCFD All planned wells have been drilled Estimated Gross EUR: 6.
Slide 24: Eastern Development Area Type Curve
UBS Houston Energy Conference – August 10, 2011 1 st Segment Compression Segment Marcellus Shale Eastern Development Area Typecurve – 6.7 Bcfe EUR IP Rate 5,400 MMcf/d Hyp. Coeff. 1.25 Decline 65.5% Limit 6 Mo. IP Rate 3,800 MMcf/d Hyp. Coeff. 1.25 Decline 48% Exp. Tail 6%
Slide 25: Western Development Area Activity
UBS Houston Energy Conference – August 10, 2011 Marcellus Shale Western Development Area - Activity SRC Lease Acreage SRC Fee Acreage EOG Contributed JV Acreage SRC Contributed JV Acreage Seneca Operated EOG Operated Punxy Area – Full Development EOG Operated 45 Wells Drilled; 25 Producing Gross Pro
Slide 26: Marcellus Shale Target Zone Example
UBS Houston Energy Conference – August 10, 2011 Marcellus Shale Target Zone Example Marcellus Interval Optimal Target Zone Important to Find Ideal Target Must account for the variable rock quality and geomechanical profile Major factor in quality of Fracture Stimulation
Slide 27: Marcellus Shale Centralized Water System
UBS Houston Energy Conference – August 10, 2011 Marcellus Shale Centralized Water System Recovering water discharged from an abandoned coal mine which was adversely impacting a local trout stream Authorized by SRBC to withdraw approximately 500,000 gallons per day of mine discharge Water pipeline sy
Slide 28: Seneca Resources
SENECA RESOURCES
Slide 29: Utica Shale Permitting Activity
Seneca Resources Mt. Jewett Area Spud Date: April 2011 Seneca Resources Henderson Area Planned Spud Date: Aug 2011 Seneca Resources Tionesta Area Planned Spud Date: 2012 Utica Shale Pennsylvania & Ohio Permitting Activity Since 2009 Vertical Well Permit Horizontal Well Permit UBS Houston Energy Conf
Slide 30: Pipeline & Storage / Midstream
UBS Houston Energy Conference – August 10, 2011 National Fuel Gas Supply Corporation Empire Pipeline, Inc. National Fuel Gas Midstream Corporation Pipeline & Storage / Midstream
Slide 31: Pipeline & Storage / Midstream Expansion Initiatives
LAMONT COMPRESSOR STATION PHASE I & II COVINGTON GATHERING SYSTEM TROUT RUN GATHERING SYSTEM WEST TO EAST OVERBECK TO LEIDY TIOGA COUNTY EXTENSION LINE “N” EXPANSION PIPELINE & STORAGE / MIDSTREAM EXPANSION INITIATIVES NORTHERN ACCESS EXPANSION CENTRAL TIOGA COUNTY EXTENSION LINE “N” 2012 EXPANSION
Slide 32: Trout Run Gathering System
UBS Houston Energy Conference – August 10, 2011 Transco Midstream Corporation Trout Run Gathering System – Lycoming County Capacity: 466,000 Dth/d Will Interconnect with Transco Pipelines in Lycoming County Seneca Resources will be the anchor shipper Estimated In-Service: Q2 FY2012 Interstate Pipeli
Slide 33: Fiscal 2012 Preliminary Earnings Guidance
UBS Houston Energy Conference – August 10, 2011 (1) The preliminary earnings guidance and sensitivity table are current as of August 4, 2011. The sensitivity table only considers revenue from the Exploration and Production segment’s crude oil and natural gas sales. The sensitivities will become obso
Slide 34: Seneca Oil and Gas Hedge Positions
UBS Houston Energy Conference – August 10, 2011 NYMEX Strip Prices (at 08/04/11) Natural Gas Oil (1) The NYMEX strip prices for fiscal year 2011 include the settlement prices for the October 2010 through August 2011 contracts. Natural Gas Swaps Volume (Bcf) Average Hedge Price Oil Swaps Volume (MMBb
Slide 35: Key Takeaways
UBS Houston Energy Conference – August 10, 2011 National Fuel Gas Company Key Takeaways High-Quality Marcellus Acreage Position 745,000 net acres with a resource potential of 8-15 Tcfe Fee ownership results in superior economics Rapid Growth: 0 – 150 MMCFD in 24 months Balanced Business Model Regula
Slide 36: UBS Houston Energy Conference – August 10, 2011
UBS Houston Energy Conference – August 10, 2011
Slide 37: Corporate & Financial Highlights
UBS Houston Energy Conference – August 10, 2011 Corporate & Financial Highlights National Fuel Gas Company
Slide 38: Dividend Growth
UBS Houston Energy Conference – August 10, 2011 National Fuel Gas Company Dividend Growth $1.42 $0.19 Compound Annual Growth Rate 5.0% National Fuel has had 109 uninterrupted years of dividend payments and has increased its dividend for 41 consecutive years Annual Rate at Fiscal Year End
Slide 39: Utility Segment
UBS Houston Energy Conference – August 10, 2011 Utility Segment National Fuel Gas Distribution Corporation
Slide 40: Utility Return on Equity
(1) Calculated using Average Total Comprehensive Shareholder Equity. UBS Houston Energy Conference – August 10, 2011 Utility Return on Equity (1)
Slide 41: Pipeline & Storage / Midstream
UBS Houston Energy Conference – August 10, 2011 National Fuel Gas Supply Corporation Empire Pipeline, Inc. National Fuel Gas Midstream Corporation Pipeline & Storage / Midstream
Slide 42: Pipeline & Storage / Midstream Expansion Initiatives
COVINGTON GATHERING SYSTEM TROUT RUN GATHERING SYSTEM WEST TO EAST OVERBECK TO LEIDY LAMONT COMPRESSOR STATION PHASE I & II TIOGA COUNTY EXTENSION LINE “N” EXPANSION PIPELINE & STORAGE / MIDSTREAM EXPANSION INITIATIVES NORTHERN ACCESS EXPANSION CENTRAL TIOGA COUNTY EXTENSION LINE “N” 2012 EXPANSION
Slide 43: Pipeline & Storage/Midstream Project Table
Project Name Capacity (Dth/D) Est. CapEx In-Service Date Market Status UBS Houston Energy Conference – August 10, 2011 Pipeline & Storage/Midstream Covington Gathering System 145,000 $16 MM 11/17/09 Fully Subscribed Completed – Flowing into TGP 300 Line Lamont Compressor Station 40,000 $6 MM 6/15/10
Slide 44: Exploration & Production
UBS Houston Energy Conference – August 10, 2011 Exploration & Production Seneca Resources Corporation
Slide 45: Pennsylvania Acreage Holdings
UBS Houston Energy Conference – August 10, 2011 SRC Lease Acreage SRC Fee Acreage SRC Contributed JV Acreage EOG Contributed JV Acreage Pennsylvania Acreage Holdings Marcellus Shale
Slide 46: Pre-Tax IRR Comparison at NYMEX of $4.00/MMBtu
Description EUR Net Working Interest Net Revenue Interest Well Costs ($ Millions) $6.0 $6.4 Description EUR Net Working Interest Net Revenue Interest Well Costs ($ Millions) $5.0 $6.0 UBS Houston Energy Conference – August 10, 2011 Marcellus Shale Eastern Development Area Western Development Area Se
Slide 47: Marcellus Horizontal Rig Count
UBS Houston Energy Conference – August 10, 2011 Marcellus Shale Gross Horizontal Wells Drilled per Year Marcellus Horizontal Rig Count Current Rig Count: Seneca : 5 Rigs EOG : 2 Rigs th Rig: January 2012 Additional Seneca Rig Scheduled:
Slide 48: Non-GAAP Financial Measures and Reconciliations
UBS Houston Energy Conference – August 10, 2011 National Fuel Gas Company This presentation contains certain non-GAAP financial measures. For pages that contain non-GAAP financial measures, pages containing the most directly comparable GAAP financial measures and reconciliations are provided in the
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