National Fuel Gas Company (NFG, Financial) filed Annual Report for the period ended 2010-09-30.
National Fuel Gas Company has a market cap of $5.11 billion; its shares were traded at around $62.29 with a P/E ratio of 23.5 and P/S ratio of 2.9. The dividend yield of National Fuel Gas Company stocks is 2.3%. National Fuel Gas Company had an annual average earning growth of 2.3% over the past 10 years. GuruFocus rated National Fuel Gas Company the business predictability rank of 3-star.NFG is in the portfolios of Mario Gabelli of GAMCO Investors, Michael Price of MFP Investors LLC, Private Capital of Private Capital Management, John Keeley of Keeley Fund Management, Pioneer Investments, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.
The Pipeline and Storage segment had a net investment of $858.2 million in property, plant and equipment at September 30, 2010. Transmission pipeline represents 41% of this segments total net investment and includes 2,356 miles of pipeline utilized to move large volumes of gas throughout its service area. Storage facilities represent 20% of this segments total net investment and consist of 31 storage fields, four of which are jointly owned and operated with certain pipeline suppliers, and 431 miles of pipeline. Net investment in storage facilities includes $86.3 million of gas stored underground-noncurrent, representing the cost of the gas utilized to maintain pressure levels for normal operating purposes as well as gas maintained for system balancing and other purposes, including that needed for no-notice transportation service. The Pipeline and Storage segment has 31 compressor stations with 98,194 installed compressor horsepower that represent 13% of this segments total net investment in property, plant and equipment.
The increase in PUD reserves in 2010 of 90 Bcfe is a result of 111 Bcfe in new PUD reserve additions (105 Bcfe from the Marcellus Shale), offset by 17 Bcfe in PUD conversions to developed reserves and 4 Bcfe in downward PUD revisions. The downward revisions were primarily from the removal of 51 PUD locations in the Upper Devonian play. This was the result of Senecas decision in 2010 to significantly reduce its 5-year investment plan for the Upper Devonian as a result of lower forward gas price expectations. The Company invested $28.9 million during the year ended September 30, 2010 to convert 17 Bcfe of PUD reserves to developed reserves. This represents 19% of the PUD reserves booked at September 30, 2009. In 2011, the Company estimates that it will invest approximately $140 million to develop the PUD reserves. The Company is committed to developing its PUD reserves within five years of being recorded as PUD reserves as required by the SECs final rule on Modernization of Oil and Gas Reporting.
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National Fuel Gas Company has a market cap of $5.11 billion; its shares were traded at around $62.29 with a P/E ratio of 23.5 and P/S ratio of 2.9. The dividend yield of National Fuel Gas Company stocks is 2.3%. National Fuel Gas Company had an annual average earning growth of 2.3% over the past 10 years. GuruFocus rated National Fuel Gas Company the business predictability rank of 3-star.NFG is in the portfolios of Mario Gabelli of GAMCO Investors, Michael Price of MFP Investors LLC, Private Capital of Private Capital Management, John Keeley of Keeley Fund Management, Pioneer Investments, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
operations are located primarily in western and central New York and northwestern Pennsylvania. The Exploration and Production segment, which has the next largest investment in net property, plant and equipment (39%), is primarily located in California, in the Appalachian region of the United States, and in the shallow waters of the Gulf Coast region of Texas and Louisiana. The remaining net investment in property, plant and equipment consisted of the All Other and Corporate operations (2%). During the past five years, the Company has made additions to property, plant and equipment in order to expand and improve transmission and distribution facilities for both retail and transportation customers. Net property, plant and equipment has increased $610.9 million, or 21.5%, since 2005. In September 2010, the Company sold its landfill gas operations in the states of Ohio, Michigan, Kentucky, Missouri, Maryland and Indiana. The net property, plant and equipment of the landfill gas operations at the date of sale was $8.8 million. In addition, during 2007, the Company sold SECI, Senecas wholly owned subsidiary that operated in Canada. The net property, plant and equipment of SECI at the date of sale was $107.7 million.The Pipeline and Storage segment had a net investment of $858.2 million in property, plant and equipment at September 30, 2010. Transmission pipeline represents 41% of this segments total net investment and includes 2,356 miles of pipeline utilized to move large volumes of gas throughout its service area. Storage facilities represent 20% of this segments total net investment and consist of 31 storage fields, four of which are jointly owned and operated with certain pipeline suppliers, and 431 miles of pipeline. Net investment in storage facilities includes $86.3 million of gas stored underground-noncurrent, representing the cost of the gas utilized to maintain pressure levels for normal operating purposes as well as gas maintained for system balancing and other purposes, including that needed for no-notice transportation service. The Pipeline and Storage segment has 31 compressor stations with 98,194 installed compressor horsepower that represent 13% of this segments total net investment in property, plant and equipment.
The increase in PUD reserves in 2010 of 90 Bcfe is a result of 111 Bcfe in new PUD reserve additions (105 Bcfe from the Marcellus Shale), offset by 17 Bcfe in PUD conversions to developed reserves and 4 Bcfe in downward PUD revisions. The downward revisions were primarily from the removal of 51 PUD locations in the Upper Devonian play. This was the result of Senecas decision in 2010 to significantly reduce its 5-year investment plan for the Upper Devonian as a result of lower forward gas price expectations. The Company invested $28.9 million during the year ended September 30, 2010 to convert 17 Bcfe of PUD reserves to developed reserves. This represents 19% of the PUD reserves booked at September 30, 2009. In 2011, the Company estimates that it will invest approximately $140 million to develop the PUD reserves. The Company is committed to developing its PUD reserves within five years of being recorded as PUD reserves as required by the SECs final rule on Modernization of Oil and Gas Reporting.
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