National Fuel Gas Company (NFG): Business Model Canvas [Dec-2025 Updated]

You're trying to get a clear picture of how National Fuel Gas Company (NFG) locks in stability while still capturing commodity upside, and frankly, their integrated structure is the key. As someone who has mapped these models for years, I can tell you their strength lies in connecting production-like their 426 Bcf output in FY2025-right through to their 750,000 utility customers, whose margin alone was nearly $729.4 million over nine months. This careful balance is why they just announced their 55th consecutive dividend increase, underpinning that consolidated $2.28 billion annual revenue. Dive into the canvas below; it shows you the exact partnerships and resources that make this predictable cash flow machine work.

National Fuel Gas Company (NFG) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships that keep National Fuel Gas Company running, the entities that provide the necessary approvals, capital, and volume to support its integrated model as of late 2025.

Regulatory bodies: FERC, NYPSC, and PAPUC for rate-setting and project approvals

The regulated utility and pipeline businesses depend heavily on approvals from federal and state bodies. For instance, the Pipeline and Storage segment, which includes National Fuel Gas Supply Corporation (Supply Corporation) and Empire Pipeline, Inc. (Empire), operates under FERC jurisdiction.

Supply Corporation filed an application with FERC for its Shippingport Lateral Project. Separately, on March 17, 2025, FERC approved an amendment to Empire's 2019 rate case settlement, which is estimated to decrease Empire's revenues on a yearly basis by approximately $0.5 million, with new rates effective November 1, 2025. Supply Corporation is targeting a FERC rate case in the second half of the fiscal year 2026.

On the utility side, the New York jurisdiction's 2024 rate settlement resulted in its first base rate increase since 2017. National Fuel Gas Company serves approximately 543,000 customers in the New York Jurisdiction and 213,000 customers in the Pennsylvania Jurisdiction.

Here's a snapshot of the regulatory and project milestones:

CenterPoint Energy for the $2.62 billion Ohio utility acquisition

National Fuel Gas Company announced the agreement to acquire CenterPoint Energy Inc.'s Ohio natural gas utility, CNP Ohio, for a total consideration of $2.62 billion on a cash-free, debt-free basis. This acquisition is expected to double National Fuel Gas Company's gas utility rate base, which was approximately $1.5 billion as of Fiscal 2025. The transaction represents approximately 1.6x the estimated 2026E Rate Base of $1.6 billion. CNP Ohio operates approximately 5,900 miles of transmission and distribution pipelines serving approximately 335,000 homes and businesses. The deal is targeted to close in the fourth quarter of calendar 2026. Pro forma for the acquisition, regulated businesses are expected to provide ~40 - 45% of consolidated EBITDA. A stipulation filed with the PUCO in July 2025 agreed upon a revenue increase of $60 million for the utility.

Large-scale industrial customers for new pipeline capacity like the Shippingport Lateral

The Shippingport Lateral Project is a key midstream expansion designed to deliver a significant portion of the natural gas supply for the Shippingport power station and a new co-located data center site. This approximately seven-mile pipeline expansion off the Line N system is designed to provide 205,000 dekatherms per day of firm transportation capacity. This project is expected to generate approximately $15 million in annual revenues. Construction for this project, along with the Tioga Pathway Project (which has a targeted in-service date in late calendar 2026), is expected to begin in the first half of calendar 2026.

Third-party producers utilizing NFG's midstream gathering system

National Fuel Midstream Company, LLC's systems work with producers to collect locally produced gas. In fiscal 2025, National Fuel Gas Company executed an amendment with a third-party shipper to gather production from two additional pads, which is expected to add 40 BCF of throughput and approximately $15 million in revenue over the next five years. The total throughput across the gathering system in Fiscal 2025 was approximately 1.4 Bcf/d, which included third-party volumes.

The gathering system capacity includes:

• National Fuel Gas Midstream Covington, LLC: approximately 970 million cubic feet of natural gas per day.
• National Fuel Gas Midstream Clermont, LLC: approximately 750 million cubic feet of natural gas per day.
• National Fuel Gas Midstream Trout Run, LLC: capacity exceeding 450 MMcf/d.

Financial institutions for debt financing and capital market access

Financial institutions are central to funding major capital events, such as the CenterPoint acquisition and ongoing capital programs. National Fuel tapped Toronto-Dominion Bank and Wells Fargo for a bridge loan to finance the acquisition.

In February 2025, National Fuel Gas Co. issued $1 billion in new notes, split evenly between 5.50% notes due 2030 and 5.95% notes due 2035. At that time, the company maintained a total debt of $2.89 billion. As of June 2025, borrowings included $300 million under a Term Loan Agreement due Fiscal Year 2026, with an interest rate of SOFR plus Applicable Margin.

National Fuel Gas Company (NFG) - Canvas Business Model: Key Activities

The core of National Fuel Gas Company (NFG) business model revolves around integrated natural gas operations, spanning from the wellhead to the end-user.

Exploration and production activities, primarily through Seneca Resources, are a major driver. The company achieved record natural gas production of 426 Bcf in the fiscal year 2025, marking a 9% increase compared to the prior year, while capital expenditures for the Integrated Upstream and Gathering segment decreased by 6%, or $40 million.

The regulated Pipeline & Storage segment is responsible for operating a substantial network. This includes approximately 2,600 miles of pipeline and 28 storage fields. National Fuel Gas Supply Corporation has firm contracted transportation capacity of 3.4 Bcf / day and firm contracted storage capacity of 71 Bcf.

Distribution of natural gas is handled by the Utility segment, which provides service to approximately 756,000 customers across western New York and northwestern Pennsylvania as of the end of fiscal 2025. The company has also been involved in a major acquisition, announcing the purchase of CenterPoint Energy's Ohio natural gas utility for $2.62 billion, which is expected to double the Utility segment rate base.

Capital project development is crucial for expanding midstream capacity. The Tioga Pathway Project, an expansion and modernization initiative, has a preliminary cost estimate of approximately $101 million and targets a late 2026 in-service date. This project involves constructing approximately 19.5 miles of new 20-inch-diameter pipeline and replacing approximately 4 miles of existing 12-inch-diameter pipeline. Another development is the Shippingport Lateral Project, which is expected to generate approximately $15 million in annual revenues.

To stabilize non-regulated earnings, National Fuel Gas Company employs hedging strategies against natural gas price volatility. Seneca Resources utilizes a marketing and hedging strategy to offer price stability while maintaining upside exposure. For the fourth quarter of fiscal 2025, the realized natural gas price after hedging increased by 9% compared to the prior year.

Here's a quick look at the scale of these key activities:

The operational focus also includes specific regulatory and efficiency targets:

• The New York jurisdiction rate plan, effective January 1, 2025, includes a return on equity of 9.7%.
• Proved developed reserves at the end of fiscal 2025 were 3,665 Bcfe.
• The company announced its 55th consecutive annual dividend increase to $2.14 per share.
• The company has maintained an investment grade credit rating.

National Fuel Gas Company (NFG) - Canvas Business Model: Key Resources

National Fuel Gas Company (NFG) relies on significant, tangible, and human assets to execute its integrated business model across upstream, midstream, and regulated utility operations as of late 2025.

The core of the upstream resource base is the extensive acreage position in key shale plays.

• ~1.2 million net acres of Marcellus and Utica shale reserves in Pennsylvania.
• The Eastern Development Area (EDA) inventory life is estimated to extend to more than 15 years based on current development plans.
• The company added 220 new Upper Utica locations during the quarter ending September 30, 2025.
• Total Proved Reserves were reported at 5.0 Tcfe as of September 30, 2025.

The regulated assets form a stable foundation, bolstered by ongoing modernization and strategic acquisitions.

The total firm contracted underground natural gas storage capacity across the key subsidiaries is approximately 75 Bcf (71 Bcf + 4 Bcf).

The integrated infrastructure connects the production source to the end-user, featuring significant gathering and transportation assets.

• Midstream gathering assets include approximately 400 miles of gathering pipeline.
• Total Throughput across the midstream assets was approximately 1.4 Bcf/d for the three months ended September 30, 2025.
• National Fuel Gas Supply Corporation has Firm Contracted Transportation Capacity of 3.4 Bcf / day.
• Empire Pipeline, Inc. has Firm Contracted Transportation Capacity of 1.1 Bcf / day.

The human capital and institutional knowledge represent a long-term, non-physical resource.

• The company has approximately ~2,300 employees across its operations.
• National Fuel Gas Company has a history marked by 123 Years of consecutive dividend payments.
• Regulatory expertise is evidenced by the FERC rate case settlement for Supply Corporation approved in Q2 FY24, with new rates effective February 1, 2024.

National Fuel Gas Company (NFG) - Canvas Business Model: Value Propositions

You're looking at the core reasons why National Fuel Gas Company (NFG) keeps its position, focusing on the tangible numbers that back up their value claims as of late 2025.

Stable, regulated utility service in New York and Pennsylvania

The utility side of National Fuel Gas Company provides essential service, which brings a layer of stability you can bank on. They serve a substantial customer base under regulatory oversight, which smooths out the rough patches of the commodity market. Here's the quick math on that regulated footprint:

• Total Utility Customers: approximately 756,000.
• New York Jurisdiction Customers: 543,000, regulated by the NYPSC.
• Pennsylvania Jurisdiction Customers: 213,000, regulated by the PAPUC.
• Total Rate Base: approximately $1.5 Billion as of Fiscal 2025 Q4.

The New York rates saw an increase effective January 1, 2025, which was the first base delivery rate increase since 2017. This regulatory structure directly supports earnings; for instance, the Utility segment's net income grew 22% in Fiscal 2025 Q1 due to a three-year rate case settlement that began on October 1, 2024.

Reliable, low-cost natural gas supply from the Appalachian Basin

National Fuel Gas Company's upstream segment, Seneca Resources Company, LLC, is digging deep into the Marcellus and Utica shales, which are known for their favorable economics. This resource base provides the foundation for their integrated model. What this estimate hides is the long-term security of their inventory, but the current production stats are solid:

The company is definitely focused on maximizing this low-cost supply.

Integrated solution: production, gathering, transportation, and distribution

The integration across their three main segments-Integrated Upstream and Gathering, Pipeline and Storage, and Utility-is a key value driver, allowing them to capture value from the wellhead to the burner tip. The midstream component, National Fuel Gas Midstream Company, LLC, handles the logistics:

• Total Throughput (Midstream): ~1.4 Bcf/d (including third-party volumes) as of Q4 2025.
• Interstate Pipeline Capacity Under Contract: 4.5 MMDth daily.
• Shippingport Lateral Project Capacity: Expected to add 205,000 dekatherms per day.

This structure lets National Fuel Gas Company manage supply and demand across its own system, which is a distinct advantage over non-integrated peers.

Predictable cash flow supported by rate case settlements

The regulated segments provide a predictable revenue base, which is further bolstered by successful regulatory outcomes. These settlements translate directly to the bottom line, supporting capital returns. The impact is clear in the regulated earnings performance for Fiscal 2025:

• Regulated Adjusted EPS Increase: 21% compared to the prior year, largely due to rate case benefits.
• Pipeline & Storage Segment Net Income Growth (Q1 2025): 35% increase, driven by a rate case settlement effective February 1, 2024.

This regulatory support underpins the commitment to shareholders.

55th consecutive dividend increase to an annual rate of $2.14 per share

Management marked its commitment to returning capital by announcing the 55th consecutive annual dividend increase for fiscal 2025. The most recent declaration confirms the new annual run rate:

The forward dividend yield as of early December 2025 was approximately 2.6030898094%.

National Fuel Gas Company (NFG) - Canvas Business Model: Customer Relationships

The Customer Relationships for National Fuel Gas Company (NFG) are segmented across its regulated utility operations and its non-regulated midstream (Pipeline & Storage) services, each requiring a distinct engagement model.

Regulated, long-term contracts for pipeline and storage capacity

For the Pipeline & Storage segment, relationships are formalized through long-term firm capacity contracts governed by Federal Energy Regulatory Commission (FERC) tariffs. These contracts ensure capacity availability for shippers, including affiliates and non-affiliates, for transportation and storage services across National Fuel Gas Supply Corporation and Empire Pipeline, Inc. systems. The commitment to system expansion, like the Tioga Pathway Project, is also a key part of maintaining these long-term service relationships.

The scale of these contracted relationships as of late 2025 is quantified by the firm capacity commitments:

Customer service and billing for residential and commercial utility users

The Utility segment maintains direct, ongoing relationships with its local distribution customers in New York and Pennsylvania. Management of these relationships centers on reliable service delivery and transparent billing processes. National Fuel Gas Distribution Corporation serves approximately 756,000 utility customers in total.

The customer base is split across two primary jurisdictions:

• New York Jurisdiction: 543,000 customers.
• Pennsylvania Jurisdiction: 213,000 customers.

In fiscal 2025, the Utility segment delivered approximately 75.5 Bcf of gas to its retail customers. For service issues or billing questions, customers use dedicated contact channels:

• General Customer Service (NY): 1-800-365-3234 or 716-686-6123.
• General Customer Service (PA): 1-800-365-3234 or 814-871-8200.
• Gas Emergencies: 1-800-444-3130 (24 hours a day, 7 days a week).

Billing management is supported online through a portal handled by Invoice Cloud, which accepts multiple payment types including Visa, MasterCard, Discover, American Express, Electronic Check, Apple Pay, Google Pay, PayPal, and Venmo.

Public and regulatory engagement for rate case approvals

Engagement with regulatory bodies is a critical relationship management function, directly impacting the revenue stability of the regulated segments. The New York Public Service Commission (PSC) approved an increase to base delivery rates and charges for National Fuel Gas Distribution Corporation, effective Jan. 1, 2025. This was the first rate increase in New York since 2017. Furthermore, an amendment to Empire Pipeline's 2019 rate settlement was approved by FERC on March 17, 2025, with new rates effective November 1, 2025. Rate case settlements in fiscal 2025 contributed to a 21% increase in regulated adjusted Earnings Per Share (EPS).

Investor relations focused on dividend consistency and growth

The relationship with shareholders is heavily anchored on a commitment to consistent capital returns. National Fuel Gas Company has paid dividends for 123 consecutive years and increased its annual dividend for 55 straight years as of June 2025. The quarterly dividend rate was raised to $0.5350 per share in June 2025, resulting in an annual rate of $2.14 per share. The payout ratio based on adjusted earnings was reported at 30.4%. The latest ex-dividend date identified was September 30, 2025.

Dedicated sales for large-volume industrial and power generation clients

For the non-regulated Pipeline & Storage segment, dedicated sales efforts target large-volume shippers, which include major industrial companies and power producers in New York State served by Empire Pipeline. These customers secure capacity through processes like Open Seasons, where firm transportation and storage capacity are awarded. For instance, in October 2025, capacity offerings for Short Term Firm Transportation and Long-term Firm Storage were fully awarded within specific timeframes, indicating active engagement and commitment from these large-volume users.

National Fuel Gas Company (NFG) - Canvas Business Model: Channels

You're looking at how National Fuel Gas Company (NFG) gets its product and services-gas delivery, pipeline capacity, and financial information-out to its various customer groups. This is all about the physical and digital pathways they use to connect their operations to the market.

Local distribution network in Western New York and Northwestern Pennsylvania

The primary channel for the regulated utility business is the physical network of pipes delivering natural gas directly to end-users. National Fuel Gas Distribution Corporation serves customers across its franchised territories.

• Serves approximately 756,000 customers in Western New York and Northwestern Pennsylvania as of Fiscal 2025.
• The New York jurisdiction saw a base rate increase effective January 1, 2025, following approval in late 2024.
• This rate action contributed to a 22% increase in the Utility segment's net income in the first quarter of Fiscal 2025 compared to the prior year.
• The Utility segment expects a 5-6% increase in customer margin in Fiscal 2026 due to rate step-ups.

Interstate pipeline system (Supply Corporation and Empire Pipeline)

The transportation and storage services are delivered through two key FERC-regulated subsidiaries, which act as crucial arteries for moving gas from the Appalachian Basin to other markets. The Pipeline & Storage segment's net income grew by 35% in Q1 FY2025 following a rate case settlement for Supply Corporation effective February 1, 2024.

Here's a look at the physical scale of these pipeline channels:

Empire Pipeline also reached an agreement with its customers to amend its existing rate settlement, with new rates becoming effective on November 1, 2025.

Direct sales to wholesale natural gas marketers and power generators

This channel involves the movement of gas from NFG's production and gathering assets, as well as gas purchased for resale, to large commercial entities. For context on supply volumes, Seneca Resources (E&P segment) raised its full-year Fiscal 2025 production guidance to the range of 420 to 425 Bcf. In the fourth quarter of Fiscal 2025, National Fuel produced 112 Bcf of natural gas. The Utility segment alone purchased 77.4 Bcf of gas in 2025, delivering 75.5 Bcf to retail customers.

Digital channels for utility account management and payment

National Fuel Gas Company uses digital interfaces to interact with its utility customer base for service management. These channels support customer self-service functions.

• The company advertises access to Online Bill Pay and Online Services for its utility customers.
• The availability of payment assistance information, such as LIHEAP details, is also provided through these digital platforms.

Investor relations website and financial filings for capital markets

The channel for communicating with the capital markets involves timely financial disclosures and ongoing dividend communication. National Fuel Gas Company reported its Fourth Quarter and Full Year Fiscal 2025 Earnings on November 5, 2025.

• Fiscal 2025 reported adjusted EBITDA reached approximately $1.41 billion.
• As of December 5, 2025, the company had approximately 90.4 million shares of common stock outstanding.
• On December 5, 2025, the Board approved a regular quarterly dividend of 53.5 cents per share.

National Fuel Gas Company (NFG) - Canvas Business Model: Customer Segments

You're looking at the customer base for National Fuel Gas Company (NFG), which is quite diverse, spanning from the local homeowner to the large-scale financial market participant. This mix helps balance the regulated stability with the commodity exposure.

The core of the regulated business serves the end-user market through the Utility segment. This segment is responsible for distributing natural gas to a substantial, geographically concentrated customer base in western New York and northwestern Pennsylvania. This forms the foundation of their stable, rate-regulated earnings.

The midstream and upstream segments serve other energy companies and large commercial users who require transportation, storage, or the physical commodity itself. The pipeline assets are key here, moving gas for affiliated and non-affiliated shippers alike.

Finally, as a publicly traded entity, National Fuel Gas Company also counts financial investors as a critical segment, rewarding their long-term commitment with consistent cash returns.

Here's a breakdown of the key customer groups and associated data points as of late fiscal year 2025:

• Residential and commercial utility customers total approximately 756,000.
• Industrial and power generation facilities are targeted customers, evidenced by the Shippingport Lateral Project filing to provide firm transportation capacity to a data center site.
• Interstate pipeline shippers include both affiliated and non-affiliated companies utilizing the transportation and storage network.
• Wholesale natural gas marketers and traders are served by the midstream assets, which move gas to broader market hubs.
• Financial investors are attracted by the company's history, including its 55th consecutive dividend increase.

The utility customer base is segmented by jurisdiction:

For the interstate pipeline business, capacity metrics define the service provided to shippers. This is where you see the scale of their midstream contracts:

The financial investor segment is keenly focused on the dividend record and recent earnings performance. You want to see the commitment in the numbers:

• The latest approved regular quarterly dividend, announced December 5, 2025, is $0.5350 per share.
• This translates to an implied annual dividend rate of $2.14 per share.
• The current annual dividend yield stands around 2.6%.
• The payout ratio based on adjusted earnings for fiscal 2025 was approximately 30.4%.
• Fiscal 2025 Adjusted Earnings Per Share (EPS) reached $6.91.
• The company has approximately 90.4 million shares of common stock outstanding.

For the upstream and wholesale side, the production volumes show the scale of the gas being made available to marketers and other pipeline customers. Seneca Resources replaced 154% of its fiscal 2025 production, and total proved reserves were 4,981 Bcfe as of September 30, 2025. The full fiscal year 2025 natural gas production was a record 426 Bcf.

Finance: draft 13-week cash view by Friday.

National Fuel Gas Company (NFG) - Canvas Business Model: Cost Structure

You're looking at the core outflows that keep National Fuel Gas Company running across its integrated structure. For a capital-intensive utility and E&P player, the cost structure is dominated by commodity purchases and massive, ongoing investment in infrastructure.

The most significant variable cost is the fuel itself. For the Utility segment, specifically Distribution Corporation, the Purchased Gas expense for fiscal 2025 was $358.5 million. Remember, this is a pass-through cost recovered via adjustment clauses, so while it's a massive cash flow item, it generally doesn't impact the bottom line margin directly.

The second massive component is capital deployment. National Fuel Gas Company's total Expenditures for Long-Lived Assets, which includes non-cash capital expenditures, totaled $918.1 million in fiscal 2025. This reflects the commitment to maintaining and growing the regulated asset base and the midstream gathering systems.

Here's a breakdown of some of the key cost elements we see in the financial reporting:

Operation and maintenance (O&M) costs are a constant drain, especially in the regulated businesses. For the Utility segment in the fourth quarter of fiscal 2025, the O&M expense went up by $3.8 million, driven mainly by higher personnel costs. To be fair, the E&P segment also saw cost fluctuations; for instance, in the third quarter, O&M expense increased by $2.7 million, also tied to personnel costs.

Financing costs, specifically interest expense on long-term debt, are also material. In the first quarter of fiscal 2025, interest expense rose by $2.3 million compared to the prior year, directly because of a higher average amount of net borrowings. This trend continued, with Q3 interest expense increasing by $2.5 million for the same reason.

When we look at the Exploration and Production segment, the costs fall under Lease Operating Expenses (LOE) and General & Administrative (G&A). The company noted lower per unit operating costs in this segment during Q3. The G&A cost for the Upstream segment was guided around $0.18 per Mcf for fiscal 2025.

You should keep an eye on these O&M trends, as personnel costs seem to be a consistent driver of increases across the segments. Finance: draft 13-week cash view by Friday.

National Fuel Gas Company (NFG) - Canvas Business Model: Revenue Streams

The revenue streams for National Fuel Gas Company (NFG) are built on a foundation that mixes stable, regulated utility income with commodity-driven exploration and production (E&P) sales, supported by midstream services.

For the first nine months of fiscal year 2025, the regulated Utility segment's customer margin contributed $729.4 million. This segment benefits from rate case settlements, such as the New York rate case settlement that became effective October 1, 2024.

The Exploration and Production (E&P) segment, which is more exposed to commodity prices, generated natural gas sales totaling $864.7 million for the same nine-month period in fiscal 2025. This segment saw strong performance, with NYMEX natural gas price realizations increasing to $2.61 per Mcf, a 9% increase compared to the prior year. Furthermore, NFG achieved record natural gas production of 426 Bcf in fiscal 2025, a 9% increase year-over-year.

The consolidated annual revenue for National Fuel Gas Company in fiscal 2025 was approximately $2.278 billion.

Midstream operations provide crucial fee-based revenue stability. The Pipeline & Storage segment's operating revenues increased by $15.2 million in fiscal 2025 compared to fiscal 2024, driven by rate case settlements effective February 1, 2024.

Here is a breakdown of the key revenue components and related metrics:

The fee-based services within the midstream operations are structured around long-term contracts and capacity reservations. The firm transportation and storage fees are derived from services offered by National Fuel Gas Supply Corporation and Empire Pipeline, Inc..

The revenue streams from the midstream operations include:

• Firm transportation and storage fees from National Fuel Gas Supply Corporation, which had 70,693 MDth of contracted firm storage as of September 30, 2024.
• Firm transportation capacity of 3,498 MDth per day from National Fuel Gas Supply Corporation.
• Firm transportation capacity of 1,092 MDth per day from Empire Pipeline, Inc..
• Gathering fees from midstream operations are tied to throughput volumes, with E&P production increasing 9% in fiscal 2025 to 426 Bcf.
• The Gathering segment's operating revenues increased by 13% in Q3 2025 due to higher throughput from new wells.

The regulated segments provide a predictable base for revenue generation, as evidenced by the Utility segment's net income increasing 22% in Q1 2025 due to a rate proceeding settlement.