-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AxuAlCQ1oj16ppLAnEJWZf+dcGiHHxE72Bm4CIuQHoQlMA1k3OOUFlQMPf4om9Xd RlBIiKYeOJgZJq9qrtIsLQ== /in/edgar/work/20001102/0000070145-00-500003/0000070145-00-500003.txt : 20001106 0000070145-00-500003.hdr.sgml : 20001106 ACCESSION NUMBER: 0000070145-00-500003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20001025 ITEM INFORMATION: FILED AS OF DATE: 20001102 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONAL FUEL GAS CO CENTRAL INDEX KEY: 0000070145 STANDARD INDUSTRIAL CLASSIFICATION: [4924 ] IRS NUMBER: 131086010 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-03880 FILM NUMBER: 752032 BUSINESS ADDRESS: STREET 1: 10 LAFAYETTE SQ CITY: BUFFALO STATE: NY ZIP: 14203 BUSINESS PHONE: 7168576980 MAIL ADDRESS: STREET 1: 10 LAFAYETTE SQ STREET 2: 10 LAFAYETTE SQ CITY: BUFFALO STATE: NY ZIP: 14203 8-K 1 form8k-11_2000.txt NATIONAL FUEL GAS COMPANY FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 25, 2000 NATIONAL FUEL GAS COMPANY (Exact name of registrant as specified in its charter) New Jersey 1-3880 13-1086010 (State or other jurisdiction (Commission File (IRS Employer or incorporation) Number) Identification No.) 10 Lafayette Square, Buffalo, New York 14203 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (716) 857-6980 ITEM 5. OTHER EVENTS On October 25, 2000, National Fuel Gas Company (the "Company") and its subsidiary, Seneca Resources Corporation, issued press releases regarding their earnings for the fourth quarter and fiscal year ended September 30, 2000. Copies of these press releases are hereby incorporated by reference and made a part of this Current Report as Exhibit 99(a) and 99(b), respectively. Neither the filing of any press release as an exhibit to this Current Report nor the inclusion in such press release of a reference to the Company's internet address shall, under any circumstances, be deemed to incorporate the information available at such internet address into this Current Report. The information available at the Company's internet address is not part of this Current Report or any other report filed by the Company with the Securities and Exchange Commission. As disclosed in the attached press releases, the Company held a public conference call regarding these results on October 26, 2000. During the course of that call, the Company indicated that Seneca Resourses Corporation's spot price assumptions for fiscal 2001 were $3.50 per thousand cubic feet ("Mcf") of natural gas and $22.39 per barrel ("bbl") of oil. In fact, Seneca Resources Corporation's spot price assumptions for fiscal 2001 are $3.98 per Mcf for natural gas and $25.51 per bbl for oil. (This previous sentence is a "forward-looking statement" as defined by the Private Securities Litigation Reform Act of 1995. While the Company's expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, actual results may differ materially from those in the forward-looking statement. Furthermore, such statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update the statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of unanticipated events. In addition to other factors, the following are important factors that could cause actual results to differ materially from the statement: changes in economic conditions, demographic patterns and weather conditions, and changes in the availability and/or price of natural gas and oil.) ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits Exhibit 99(a) - Press Release issued October 25, 2000 regarding National Fuel Gas Company earnings for the fourth quarter Exhibit 99(b) - Press Release issued October 25, 2000 regarding Seneca Resources Corporation earnings for the fourth quarter SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NATIONAL FUEL GAS COMPANY By: /s/James R. Peterson ------------------------ James R. Peterson Assistant Secretary EXHIBIT INDEX Exhibit Number Description 99(a) Press Release issued October 25, 2000 regarding National Fuel Gas Company earnings for the fourth quarter 99(b) Press Release issued October 25, 2000 regarding Seneca Resources Corporation earnings for the fourth quarter EX-99.A 2 press1-10_2000.txt NATIONAL FUEL GAS COMPANY 4TH QUARTER EARNINGS EXHIBIT 99(a) National Fuel Achieves Record Earnings For Fiscal 2000 And Reports Fourth Quarter Results (October 25, 2000) Buffalo, New York: National Fuel Gas Company ("National Fuel" or the "Company") (NYSE:NFG) today reported record annual earnings for its fiscal year ended September 30, 2000 of $127.2 million, or $3.25 per share ($3.21 per share on a diluted basis). This compares with earnings of $115.0 million, or $2.98 per share ($2.95 per share on a diluted basis) for the fiscal year ended September 30, 1999. Earnings for the quarter ended September 30, 2000 were $2.2 million, or $0.06 per share (basic and diluted). This compares with earnings of $4.4 million, or $0.11 per share (basic and diluted), for the quarter ended September 30, 1999. Bernard J. Kennedy, Chairman and Chief Executive Officer of National Fuel, remarked: "We have known all along that companies with real assets can deliver real earnings, thus providing real value for all. The success we see here is testimony to that belief." DISCUSSION OF FOURTH QUARTER EARNINGS The decrease in earnings of $2.2 million for the quarter as compared with the prior year's quarter was the result of a larger loss in the Utility segment (which typically incurs a loss in the summer quarter) and lower earnings in the Pipeline and Storage, Timber (which had a slight loss this quarter), and Energy Marketing segments, and in Corporate operations. These decreased earnings were offset in part by higher earnings in the Exploration and Production segment and a lower loss in the International segment (which also typically incurs a loss in the summer quarter). The increase in the market price of National Fuel's stock during the quarter ended September 30, 2000, while benefiting shareholders, carried with it the required recognition of $6.6 million (after tax) of expense for stock appreciation rights ("SARs"). This expense is spread across all segments, with the greatest impact on the larger segments. On a fiscal year to date basis, the expense related to SARs was $9.2 million (after tax), and reflects the stock price increase from September 30, 1999 to September 30, 2000. The Utility segment's fourth quarter fiscal 2000 loss was $11.2 million, or $5.6 million greater when compared with the fourth quarter of fiscal 1999. The current quarter's higher loss resulted mainly from various true-up adjustments related to the September 30, 2000 conclusion of the two year rate settlement with the New York State Public Service Commission ("NYPSC") -more- National Fuel, 4th Quarter Earnings 2000 Fiscal Year Results Page 2. and from the SARs expense. As previously announced, a new three year rate settlement agreement was recently approved by the NYPSC. In the Pipeline and Storage segment, earnings of $4.9 million for the quarter ended September 30, 2000 were down $4.8 million compared to the fourth quarter of fiscal 1999. Reasons for the decrease included the SARs expense and the fact that the fourth quarter of fiscal 1999 included the recovery of certain project costs that had been previously written-off, and the recovery through insurance of a previously expensed base gas loss. The Timber segment had a slight loss of $0.04 million for the quarter ended September 30, 2000, or $0.4 million less in earnings than last fiscal year's fourth quarter. This decrease is the result of costs associated with this segment's timber cruise (a study to determine the estimated board feet of standing timber by tract and species) and costs related to the start up of new kilns and a new sawmill. The Energy Marketing segment's fourth quarter fiscal 2000 earnings of $0.2 million were $0.2 million lower than the prior year's fourth quarter. Although this segment recognized a $3.5 million after tax mark-to-market gain from derivative activities (compared with a $0.7 million after tax hedging gain in the prior year's quarter), it also accrued a loss contingency of $1.6 million after tax on the unhedged portion of its fixed price sales contracts for sales of natural gas to customers in fiscal 2001. In addition, greater interest expense on higher debt balances coupled with higher operating expenses and lower sales margins during the quarter contributed to lower earnings. With a higher level of residential heating customers than in the past, this segment will likely show seasonal losses during the summer months much like the Utility segment.* Earnings of the Corporate operations for the fourth quarter of fiscal 2000 of $0.4 million were down $1.2 million when compared with the fourth quarter of fiscal 1999. The main reason is that the 1999 quarter included a gain resulting from the demutualization of an insurance company. As a policyholder, National Fuel received stock of the insurance company as part of its initial public offering. In the Exploration and Production segment, earnings for the quarter ended September 30, 2000 were $13.0 million, up $8.8 million from the prior year's fourth quarter. Earnings from the recent Canadian acquisition of Tri Link Resources, Ltd. (now known as National Fuel Exploration Corp. ("NFE") and significantly higher oil and gas prices in the current quarter were the main reasons for higher earnings. NFE added $5.5 million to earnings this quarter. -more- National Fuel, 4th Quarter Earnings 2000 Fiscal Year Results Page 3. Weighted average prices (after hedging) for oil and gas production increased 72% and 9%, respectively, for the quarter ended September 30, 2000 compared with the same quarter of last year. An 83% increase in oil production was largely attributable to production from NFE's Canadian wells. The International segment's loss for the fourth quarter of fiscal 2000 of $4.3 million was $1.4 million lower than the loss in the prior year's quarter. The improvement in the current year was caused mainly by higher margins and the further decline in the exchange rate of the Czech koruna (which reduced the loss). DISCUSSION OF ANNUAL RESULTS The increase in earnings of $12.2 million for the fiscal year ended September 30, 2000 as compared with the prior fiscal year was mainly the result of higher earnings in the Exploration and Production segment as significantly higher oil and gas prices, as well as earnings from the recently acquired NFE, drove up earnings. In addition, the Utility segment's earnings were up a little over 1% as various factors offset one another. The Timber and International segments also had higher earnings. The Timber segment's fiscal 2000 earnings reflect a gain on the sale of land and standing timber, which occurred in the second quarter of fiscal 2000. The International segment's earnings increased as a result of lower O&M and additional consideration received on the sale of a previous project. Increased earnings of these segments were offset in part by lower earnings in the Pipeline and Storage and Energy Marketing segments and in Corporate operations. In the Pipeline and Storage segment, higher SARs expense was a significant cause of lower earnings. Also, this segment's earnings were negatively impacted in the current year by a new state income tax resulting from recently enacted tax law changes in New York State. In addition, the prior year's earnings included interest income and a reduction in income tax related to the final settlement of Internal Revenue Service audits of years 1977 - 1994. These items did not recur in the current year. The Energy Marketing segment's earnings are down due mainly to mark-to-market losses on derivative instruments, lower margins on marketing activities, the accrual of a loss contingency, as discussed in the quarter above, and higher expenses, including interest. Lower earnings from Corporate operations mainly resulted from the gain recognized in fiscal 1999 on the demutualization of an insurance company, as discussed above, offset in part by higher earnings on various financial investments in the current year. -more- National Fuel, 4th Quarter Earnings 2000 Fiscal Year Results Page 4. Mr. Kennedy added: "We are pleased that our expansion in the Canadian energy arena has provided such strong returns in a relatively short period of time. We expect the solid performance of our Exploration and Production segment to continue through fiscal 2001.* This performance, together with the continued strong contributions from our regulated segments, supports our outlook for record earnings in fiscal 2001 in the $4.25 to $4.35 per share range.*" The Company will host a conference call on Thursday, October 26, 2000 at 11:00 a.m. (Eastern Time) to discuss this announcement. To access this call, please go to the Company's home page at its website http://www.nationalfuelgas.com and click on the words "Conference Call". For those unable to listen to the live broadcast, a replay will be available at the same website beginning about one hour after the call. In addition, the call will be recorded and a toll-free replay will be available for playback by telephone approximately one hour after the call at 1-800-944-3033. National Fuel is an integrated energy company with $3.2 billion in assets comprised of the following six operating segments: Utility, Pipeline and Storage, Exploration and Production, International, Energy Marketing, and Timber. Additional information about National Fuel is available on its Internet Web site: http://www.nationalfuelgas.com or through its investor information service at 1-800-334-2188. - -------------------- * This statement is a "forward-looking statement" as defined by the Private Securities Litigation Reform Act of 1995. While National Fuel's expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, actual results may differ materially from those in the forward-looking statement. Furthermore, such statement speaks only as of the date on which it is made, and National Fuel undertakes no obligation to update the statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of unanticipated events. In addition to other factors, the following are important factors that could cause actual results to differ materially from the statement: changes in economic conditions, demographic patterns and weather conditions; changes in the availability and/or price of natural gas and oil; inability to obtain new customers or retain existing ones; significant changes in competitive conditions affecting the Company; governmental/regulatory actions, initiatives and proceedings, including those affecting financings, allowed rates of return, industry and rate structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant changes from expectations in actual capital expenditures and operating expenses and unanticipated project delays; occurrences affecting the Company's ability to obtain funds from operations, debt or equity to finance needed capital expenditures and other investments; uncertainty of oil and gas reserves; ability to successfully identify and finance oil and gas property acquisitions and ability to operate existing and any subsequently acquired properties; changes in the availability and/or price of derivative financial instruments; inability of the various counterparts to meet their obligations with respect to the Company's financial instruments; regarding foreign operations - changes in foreign trade and monetary policies, laws, and regulations related to foreign operations, political and governmental changes, inflation and exchange rates, taxes and operating conditions; significant changes in tax rates or policies, in rates of inflation or interest; significant changes in the Company's relationship with its employees and the potential adverse effects if labor disputes or grievances were to occur; and/or changes in accounting principles and/or the application of such principles to the Company. Analyst Contact: Margaret Suto (716) 857-6987 Media Contact: Julie Coppola Cox (716) 857-7079 -more- Page 5
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES (Thousands of Dollars, except per share amounts) Three Months Ended Twelve Months Ended September 30, September 30, (Unaudited) ------------------------------- -------------------------------- SUMMARY OF OPERATIONS 2000 1999 2000 1999 - --------------------- -------------- --------------- ------------- ---------------- Operating Revenues $ 249,278 $ 190,791 $1,425,277 $ 1,263,274 -------------- --------------- ------------- ---------------- Operating Expenses: Purchased Gas 61,705 28,652 503,617 405,925 Fuel Used in Heat and Electric Generation 8,330 8,478 54,893 55,788 Operation and Maintenance 91,932 79,144 350,383 328,800 Property, Franchise and Other Taxes 17,684 17,642 78,878 91,146 Depreciation, Depletion and Amortization 39,484 31,958 142,170 124,778 Income Taxes - Current (27,235) 3,418 35,210 50,798 - Deferred 30,464 1,119 41,858 14,031 -------------- --------------- ------------- ---------------- 222,364 170,411 1,207,009 1,071,266 -------------- --------------- ------------- ---------------- Operating Income 26,914 20,380 218,268 192,008 Other Income 2,772 4,442 10,408 12,343 -------------- --------------- ------------- ---------------- Income Before Interest Charges and Minority Interest in Foreign Subsidiaries 29,686 24,822 228,676 204,351 Interest Charges 28,339 21,313 100,085 87,698 Minority Interest in Foreign Subsidiaries 871 924 (1,384) (1,616) -------------- --------------- ------------- ---------------- Net Income Available for Common Stock $ 2,218 $ 4,433 $ 127,207 $ 115,037 ============== =============== ============= ================ Earnings Per Common Share: Basic $ 0.06 $ 0.11 $ 3.25 $ 2.98 ============== =============== ============= ================ Diluted $ 0.06 $ 0.11 $ 3.21 $ 2.95 ============== =============== ============= ================ Weighted Average Common Shares: Used in Basic Calculation 39,290,766 38,805,534 39,116,921 38,663,981 ============== =============== ============= ================ Used in Diluted Calculation 39,930,180 39,246,318 39,583,100 39,041,728 ============== =============== ============= ================
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NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES SEGMENT INFORMATION (Thousands of Dollars) Three Months Ended Twelve Months Ended September 30, September 30, (Unaudited) --------------------------------------------- --------------------------------------------- Increase Increase 2000 1999 (Decrease) 2000 1999 (Decrease) -------------- -------------- -------------- -------------- ------------- -------------- Operating Revenues - ------------------ Utility $ 102,419 $ 96,505 $ 5,914 $ 846,459 $ 807,355 $ 39,104 Pipeline and Storage 41,459 42,108 (649) 169,659 168,783 876 Exploration and Production 84,255 41,544 42,711 238,070 146,994 91,076 International 11,751 9,880 1,871 104,736 107,045 (2,309) Energy Marketing 25,368 16,835 8,533 133,929 99,088 34,841 Timber 8,239 7,007 1,232 39,172 31,117 8,055 -------------- -------------- -------------- -------------- ------------- -------------- Total Reportable Segments 273,491 213,879 59,612 1,532,025 1,360,382 171,643 All Other 39 229 (190) 5,345 1,765 3,580 Intersegment Eliminations (24,252) (23,317) (935) (112,093) (98,873) (13,220) -------------- -------------- -------------- -------------- ------------- -------------- Total Consolidated $ 249,278 $ 190,791 $ 58,487 $ 1,425,277 $ 1,263,274 $ 162,003 ============== ============== ============== ============== ============= ============== Operating Income (Loss) Before Income Taxes - ----------------------- Utility $ (11,429) $ (840) $ (10,589) $ 126,157 $ 120,283 $ 5,874 Pipeline and Storage 11,224 18,471 (7,247) 65,155 72,104 (6,949) Exploration and Production 35,571 12,418 23,153 94,908 42,215 52,693 International (5,016) (5,814) 798 12,938 12,861 77 Energy Marketing 420 336 84 (12,000) 3,036 (15,036) Timber 866 1,587 (721) 11,220 9,745 1,475 -------------- -------------- -------------- -------------- ------------- -------------- Total Reportable Segments 31,636 26,158 5,478 298,378 260,244 38,134 All Other (870) (444) (426) (425) (857) 432 Corporate (623) (797) 174 (2,617) (2,550) (67) -------------- -------------- -------------- -------------- ------------- -------------- Total Consolidated $ 30,143 $ 24,917 $ 5,226 $ 295,336 $ 256,837 $ 38,499 ============== ============== ============== ============== ============= ============== Net Income - ---------- Utility $ (11,182) $ (5,562) $ (5,620) $ 57,662 $ 56,875 $ 787 Pipeline and Storage 4,852 9,671 (4,819) 31,614 39,765 (8,151) Exploration and Production 12,967 4,145 8,822 34,877 7,127 27,750 International (4,324) (5,720) 1,396 3,282 2,276 1,006 Energy Marketing 152 324 (172) (7,790) 2,054 (9,844) Timber (42) 323 (365) 6,133 4,769 1,364 -------------- -------------- -------------- -------------- ------------- -------------- Total Reportable Segments 2,423 3,181 (758) 125,778 112,866 12,912 All Other (582) (323) (259) (371) (162) (209) Corporate 377 1,575 (1,198) 1,800 2,333 (533) -------------- -------------- -------------- -------------- ------------- -------------- Total Consolidated $ 2,218 $ 4,433 $ (2,215) $ 127,207 $ 115,037 $ 12,170 ============== ============== ============== ============== ============= ==============
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NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES SEGMENT INFORMATION (Continued) (Thousands of Dollars) Three Months Ended Twelve Months Ended September 30, September 30, (Unaudited) ------------------------------------------- ---------------------------------------------- Increase Increase 2000 1999 (Decrease) 2000 1999 (Decrease) ------------- ------------- ------------- ------------- -------------- -------------- Depreciation, Depletion and Amortization: - ----------------------- Utility $ 8,927 $ 8,213 $ 714 $ 35,842 $ 34,215 $ 1,627 Pipeline and Storage 5,765 5,653 112 23,379 22,690 689 Exploration and Production 21,526 15,209 6,317 69,583 55,750 13,833 International 2,799 2,573 226 11,110 10,473 637 Energy Marketing 59 50 9 209 165 44 Timber 376 256 120 1,948 1,476 472 ------------- ------------- ------------- ------------- -------------- -------------- Total Reportable Segments 39,452 31,954 7,498 142,071 124,769 17,302 All Other 31 3 28 97 7 90 Corporate 1 1 - 2 2 - ------------- ------------- ------------- ------------- -------------- -------------- Total Consolidated $ 39,484 $ 31,958 $ 7,526 $ 142,170 $ 124,778 $ 17,392 ============= ============= ============= ============= ============== ============== Expenditures for Long-Lived Assets - ------------------ Utility $ 12,698 $ 16,376 $ (3,678) $ 55,799 $ 46,974 $ 8,825 Pipeline and Storage 6,266 11,773 (5,507) 35,806 (1) 34,873 933 Exploration and Production 59,836 17,106 42,730 280,049 97,586 182,463 International 3,460 9,830 (6,370) 9,767 33,412 (23,645) Energy Marketing 70 41 29 89 302 (213) Timber 2,128 902 1,226 13,542 52,314 (38,772) ------------- ------------- ------------- ------------- -------------- -------------- Total Reportable Segments 84,458 56,028 28,430 395,052 265,461 129,591 All Other 118 9 109 3,725 69 3,656 ------------- ------------- ------------- ------------- -------------- -------------- Total Consolidated $ 84,576 $ 56,037 $ 28,539 $ 398,777 $ 265,530 $ 133,247 ============= ============= ============= ============= ============== ==============
(1) Includes $1.2 million in a stock-for-asset swap.
DEGREE DAYS Percent Colder (Warmer) Than: Three Months Ended September 30 Normal 2000 1999 Normal Last Year - ------------------------------- ------------- ------------- ------------- -------------- -------------- Buffalo, NY 199 222 114 11.6 94.7 Erie, PA 100 179 94 79.0 90.4 Twelve Months Ended September 30 Buffalo, NY 6,932 6,312 6,180 (8.9) 2.1 Erie, PA 6,230 5,657 5,607 (9.2) 0.9
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NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES Utility Throughput - (millions of cubic feet - MMcf) Three Months Ended Twelve Months Ended September 30, September 30, -------------------------------------- ----------------------------------------- Increase Increase 2000 1999 (Decrease) 2000 1999 (Decrease) ----------- ---------- ----------- ------------ ------------ ------------ Residential Sales 5,430 4,979 451 68,196 71,177 (2,981) Commercial Sales 887 830 57 12,312 13,885 (1,573) Industrial Sales 1,347 1,166 181 4,276 4,144 132 ----------- ---------- ----------- ------------ ------------ ------------ 7,664 6,975 689 84,784 89,206 (4,422) ----------- ---------- ----------- ------------ ------------ ------------ Off-System Sales 1,917 2,275 (358) 12,833 12,469 364 Transportation 11,119 10,621 498 71,862 64,086 7,776 ----------- ---------- ----------- ------------ ------------ ------------ 20,700 19,871 829 169,479 165,761 3,718 =========== ========== =========== ============ ============ ============
Pipeline & Storage Throughput- (MMcf) Three Months Ended Twelve Months Ended September 30, September 30, -------------------------------------- ----------------------------------------- Increase Increase 2000 1999 (Decrease) 2000 1999 (Decrease) ----------- ---------- ----------- ------------ ------------ ------------ Firm Transportation - Affiliated 13,095 13,090 5 113,241 108,250 4,991 Firm Transportation - Non-Affiliated 41,149 46,757 (5,608) 178,577 191,992 (13,415) Interruptible Transportation 14,531 3,962 10,569 21,730 8,061 13,669 ----------- ---------- ----------- ------------ ------------ ------------ 68,775 63,809 4,966 313,548 308,303 5,245 =========== ========== =========== ============ ============ ============
Energy Marketing Volumes Three Months Ended Twelve Months Ended September 30, September 30, -------------------------------------- ----------------------------------------- Increase Increase 2000 1999 (Decrease) 2000 1999 (Decrease) ----------- ---------- ----------- ------------ ------------ ------------ Natural Gas (MMcf) 3,969 5,223 (1,254) 35,465 34,454 1,011 =========== ========== =========== ============ ============ ============
International Sales Volumes Three Months Ended Twelve Months Ended September 30, September 30, -------------------------------------- ----------------------------------------- Increase Increase 2000 1999 (Decrease) 2000 1999 (Decrease) ----------- ---------- ----------- ------------ ------------ ------------ Heating (Gigajoules) 757,717 544,628 213,089 10,222,024 10,047,042 174,982 =========== ========== =========== ============ ============ ============ Electricity (Megawatt hours) 235,783 241,151 (5,368) 1,147,303 1,138,980 8,323 =========== ========== =========== ============ ============ ============
Timber Board Feet (Thousands) Three Months Ended Twelve Months Ended September 30, September 30, -------------------------------------- ----------------------------------------- Increase Increase 2000 1999 (Decrease) 2000 1999 (Decrease) ----------- ---------- ----------- ------------ ------------ ------------ Log Sales 1,931 1,677 254 9,370 6,902 2,468 Green Lumber Sales 1,788 1,774 14 8,193 8,541 (348) Kiln Dry Lumber Sales 1,644 1,589 55 6,987 5,711 1,276 ----------- ---------- ----------- ------------ ------------ ------------ 5,363 5,040 323 24,550 21,154 3,396 =========== ========== =========== ============ ============ ============
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NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES EXPLORATION AND PRODUCTION INFORMATION -------------------------------------- Three Months Ended Twelve Months Ended September 30, September 30, ---------------------------------------- -------------------------------------- Increase Increase 2000 1999 (Decrease) 2000 1999 (Decrease) ----------- ----------- ------------- ----------- ---------- ------------- Gas Production/Prices: - --------------------- Production (MMcf) Gulf Coast 7,813 7,285 528 32,760 28,758 4,002 West Coast 1,072 1,138 (66) 4,374 3,977 397 Appalachia 1,092 1,050 42 4,344 4,431 (87) Canada 175 - 175 192 - 192 ----------- ----------- ------------- ----------- ---------- ------------- 10,152 9,473 679 41,670 37,166 4,504 =========== =========== ============= =========== ========== ============= Average Prices (Per Mcf) Gulf Coast $ 4.43 $ 2.62 $ 1.81 $ 3.29 $ 2.15 $ 1.14 West Coast 5.48 2.56 2.92 3.62 2.28 1.34 Appalachia 3.81 2.49 1.32 3.16 2.44 0.72 Canada 2.51 - 2.51 2.52 - 2.52 Weighted Average 4.44 2.60 1.84 3.31 2.20 1.11 Weighted Average after Hedging 2.49 2.29 0.20 2.61 2.24 0.37 Oil Production/Prices: - --------------------- Production (Thousands of Barrels) Gulf Coast 389 351 38 1,415 1,373 42 West Coast 718 676 42 2,824 2,633 191 Appalachia 2 3 (1) 9 10 (1) Canada 771 - 771 899 - 899 ----------- ----------- ------------- ----------- ---------- ------------- 1,880 1,030 850 5,147 4,016 1,131 =========== =========== ============= =========== ========== ============= Average Prices (Per Barrel) Gulf Coast $ 31.44 $ 20.32 $ 11.12 $ 28.27 $ 15.18 $ 13.09 West Coast 27.31 15.76 11.55 23.87 11.62 12.25 Appalachia 28.49 18.86 9.63 25.12 14.73 10.39 Canada 29.40 - 29.40 29.28 - 29.28 Weighted Average 29.02 17.33 11.69 26.03 12.85 13.18 Weighted Average after Hedging 27.41 15.98 11.43 22.85 12.96 9.89
PROVED DEVELOPED AND UNDEVELOPED RESERVES: Oil (Thousands Total Gas (MMcf) of Barrels) (MMcf Equivalents) ------------------------------------------------------- ------------------------- Beginning of Year 320,792 75,819 775,706 Extensions and Discoveries 34,641 3,932 58,233 Revisions of Previous Estimates (8,001) 4,000 15,999 Production (41,670) (5,147) (72,552) Purchase of Minerals in Place 3,349 41,320 251,269 Sales of Minerals in Place (7,444) (227) (8,806) ----------- ----------- ------------- End of Year 301,667 119,697 1,019,849 =========== =========== =============
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NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES Quarter Ended September 30 (unaudited) 2000 1999 - ------------------------------------- --------------------- --------------------- Operating Revenues $ 249,278,000 $ 190,791,000 ===================== ===================== Net Income Available for Common Stock $ 2,218,000 $ 4,433,000 ===================== ===================== Earnings Per Common Share: Basic $ 0.06 $ 0.11 ===================== ===================== Diluted $ 0.06 $ 0.11 ===================== ===================== Weighted Average Common Shares: Used in Basic Calculation 39,290,766 38,805,534 ===================== ===================== Used in Diluted Calculation 39,930,180 39,246,318 ===================== ===================== Twelve Months Ended September 30 Operating Revenues $ 1,425,277,000 $ 1,263,274,000 ===================== ===================== Net Income Available for Common Stock $ 127,207,000 $ 115,037,000 ===================== ===================== Earnings Per Common Share: Basic $ 3.25 $ 2.98.25 ===================== ===================== Diluted $ 3.21 $ 2.95.21 ===================== ===================== Weighted Average Common Shares: Used in Basic Calculation 39,116,921 38,663,981 ===================== ===================== Used in Diluted Calculation 39,583,100 39,041,728 ===================== =====================
EX-99.B 3 press2-10_2000.txt SENECA RESOURCES 4TH QUARTER EARNINGS Exhibit 99(b) Seneca Resources Corporation Announces Record Fourth Quarter and Year End Results (October 25, 2000) Buffalo, New York: Seneca Resources Corporation ("Seneca"), the exploration and production subsidiary of National Fuel Gas Company ("National Fuel") (NYSE: NFG), today announced record results for its fourth quarter and fiscal year ended September 30, 2000. Among the records set for earnings in the fourth quarter are production at 21.4 billion cubic feet equivalent (BCFE), total revenue of $84.3 million, and net income of $13.0 million, or $0.33 per share. Compared to fourth quarter of fiscal 1999, production increased by 37%, total revenues increased by $42.7 million, and net income increased by $8.8 million. For the fiscal year ended September 30, 2000, Seneca's revenues totaled $238.1 million with a net income of $34.9 million, or $0.89 per share. These record results show a revenue increase of $91.1 million and net income increase of $27.7 million from the prior year. Total reserves as of September 30, 2000 were 1.02 trillion cubic feet equivalent (TCFE), of which 70% was oil and 30% was natural gas, the highest reserve level in Seneca's history. General and Administrative Expenses (G&A) and Lease Operating Expenses (LOE) for the quarter and the year increased. Costs associated with Seneca's Canadian acquisition of Tri Link Resources Ltd., higher production taxes in Canada, and aggressive development of marginal wells to maximize returns all contributed to the increase in LOE expenses. G&A expenses increased due to a general increase in costs and a higher increase in payroll associated with retention of quality employees. At September 30, 2000, Seneca had an accrued balance of $9.67 million for mark-to-market derivative contracts which will expire during the first quarter of fiscal 2001. This liability is down $1.4 million from June 30, 2000. Seneca's exploration and development drilling programs posted positive results this quarter. Seneca drilled a total of 73 wells this quarter: 41 in the U.S. and 32 in Canada. There were six exploratory wells, of which four were successful, and 67 development wells, of which 64 were successful. Seneca's success rate was 93% in the fourth quarter. For the year ended September 30, 2000, Seneca drilled a total of 147 wells with a 91% success rate. As indicated in Seneca's third quarter earnings report (dated July 27, 2000), Seneca had nine offshore blocks in various stages of completion. As of the end of the fourth quarter, four of these had been placed on production and five blocks, with a total production capacity of over 1.2 BCFE per month, -more- Seneca Resources Corporation Announces Record Fourth Quarter and Year End Results Page 2 were still waiting on completion. Strained supplies in the workover rig and the service equipment market has delayed many of these completions. Seneca is currently participating in the drilling of two additional offshore wells. Results from Seneca's California properties continued to build upon increases experienced in previous quarters. Development at Midway-Sunset field included drilling 26 new wells. Monthly production for the quarter increased to 298,900 barrels of oil equivalent (BOE) from 288,500 BOE last year. The steam flood projects being installed at the North Lost Hills property are expected to begin operations in November 2000.* Seneca's Canadian subsidiary, National Fuel Exploration Corp., implemented an aggressive drilling program in the fourth quarter. A total of 32 wells were drilled with a success rate of 84%. Approximately half of those wells have been completed and the rest will be completed in the first quarter of fiscal 2001.* An exploration and development drilling program is scheduled for 2001 with a total of over 70 wells planned.* The outlook for fiscal 2001 remains positive.* Seneca's production is anticipated to be in the range of 95 to 100 BCFE, or a 33% improvement over 2000 production levels.* Anticipated delays in offshore completions required a revision to previous estimates for fiscal 2001 production. Production is expected to be 54% oil and 46% natural gas for fiscal year 2001.* The capital budget of $165 million remains unchanged and includes the drilling of over 250 wells.* Seneca has maintained its policy of hedging approximately 60% of its production.* Currently for fiscal 2001, 28.0 BCF is hedged at $3.03 per thousand cubic feet (MCF) and 5.9 million barrels (MMBL) of oil is hedged at $21.69 per barrel (BBL).* These hedges include both swaps and no-cost collars. Seneca's long term growth plan is to achieve a 15% growth rate.* To facilitate this plan for fiscal 2002, Seneca has hedged 25.3 billion cubic feet (BCF) of its gas production at $3.75 per MCF, and 6.2 MMBL of its oil at $22.75 per barrel. These hedged prices represent a 12% improvement over Seneca's current fiscal 2001 hedging program. This, combined with Seneca's expected growth in production, establishes the foundation for achieving future growth.* -more- Seneca Resources Corporation Announces Record Fourth Quarter and Year End Results Page 3 National Fuel will host a conference call on Thursday, October 26, 2000 at 11:00 a.m. (Eastern Time) to discuss this announcement. To access this call, please go to its home page at its website http://www.nationalfuelgas.com and click on the words "Conference Call". For those unable to listen to the live broadcast, a replay will be available at the same website beginning about one hour after the call. In addition, the call will be recorded and a toll-free replay will be available for playback by telephone approximately one hour after the call at 1-800-944-3033. National Fuel is an integrated energy company with $3.2 billion in assets comprised of the following six operating segments: Utility, Pipeline and Storage, Exploration and Production, International, Energy Marketing and Timber. Seneca Resources Corporation, headquartered in Houston, Texas, explores for and produces natural gas and oil in the lower 48 States, the Gulf of Mexico and in Canada. Additional information about National Fuel is available at http://www.nationalfuelgas.com or through its investor information service at 1-800-334-2188. Analyst Contact: Margaret M. Suto (716) 857-6987 Media Contact: Julie Coppola Cox (716) 857-7079 - -------------------- * This sentence contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. While such expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, actual results may differ materially. Furthermore, such statements speak only as of the date on which they are made, and neither National Fuel Gas Company nor Seneca undertakes any obligation to update such statements to reflect events or circumstances after the date on which they are made or to reflect the occurrence of unanticipated events. In addition to other factors, the following are important factors that could cause actual results to differ materially from those in the forward-looking statements: Changes in economic conditions, demographic patterns and weather conditions; changes in the availability and/or price of natural gas and oil; significant changes in competitive factors affecting the Company; significant changes from expectations in actual capital expenditures and operating expenses and unanticipated project delays; occurrences affecting the Company's ability to obtain funds from operations, debt or equity to finance needed capital expenditures and other investments; uncertainty of oil and gas reserve estimates; ability to successfully identify and finance oil and gas property acquisitions and ability to operate existing and any subsequently acquired properties; ability to successfully identify, drill for and produce economically viable natural gas and oil reserves; changes in the availability and/or price of derivative financial instruments; inability of the various counterparties to meet their obligations with respect to the Company's financial instruments; and/or regarding foreign operations - changes in foreign trade and monetary policies, laws and regulations related to foreign operations, political and governmental conditions, inflation and exchange rates, taxes and operating conditions. -more-
Seneca Resources Corporation Announces Record Fourth Quarter and Year End Results Page 4 4th Quarter Results Year End Results ------------------- ---------------- 2000 1999 % Change 2000 1999 % Change Financial Results (in millions of dollars) Revenue $84.3 $41.5 103% $238.1 $147.0 62% Operating Expenses $48.7 $29.1 67% $143.2 $104.8 37% EBITDA $57.1 $27.6 107% $164.5 $98.0 68% Operating Income $35.6 $12.4 187% $94.9 $42.2 125% Net Income $13.0 $4.1 217% $34.9 $7.1 392% Operating Performance Statistics Production (Bcfe) 21.4 15.7 37% 72.6 61.3 18% Operating Performance General & Administrative Expense/Mcfe $0.25 $0.13 92% $0.20 $0.15 33% Lease Operating Expense/Mcfe $0.74 $0.53 40% $0.58 $0.46 26% Depreciation Depletion & Amortization/Mcfe $1.00 $0.97 3% $0.96 $0.91 5% Commodity Prices (Before Hedging) Avg. Oil Price/barrel $29.02 $17.33 67% $26.03 $12.85 103% Avg. Gas Price/Mcf $4.44 $2.60 71% $3.31 $2.20 50% Commodity Prices (After Hedging) Avg. Oil Price/barrel $27.41 $15.98 72% $22.85 $12.96 76% Avg. Gas Price/Mcf $2.49 $2.29 9% $2.61 $2.24 17%
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