National Fuel Gas Company Reports Operating Results (10-K)

National Fuel Gas Company (NFG, Financial) filed Annual Report for the period ended 2009-09-30.

National Fuel Gas Co. is engaged in the business of owning and holdingsecurities issued by its subsidiary companies. The company is a diversified energy company consisting of the following six reportable business segments: Utility; Pipeline and Storage; Exploration and Production; International; Energy Marketing; and Timber. National Fuel Gas Company has a market cap of $3.83 billion; its shares were traded at around $47.68 with a P/E ratio of 18.3 and P/S ratio of 1.9. The dividend yield of National Fuel Gas Company stocks is 2.8%. National Fuel Gas Company had an annual average earning growth of 3.3% over the past 10 years.

Highlight of Business Operations:

The net investment of the Company in property, plant and equipment was $3.1 billion at September 30, 2009. Approximately 63% of this investment was in the Utility and Pipeline and Storage segments, which are primarily located 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 (33%), is primarily located in California, in the Appalachian region of the United States, and in 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 (4%). 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 $125.3 million, or 4.2%, since 2004. 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. In addition, during 2005, the Company sold its majority interest in U.E., a district heating and electric generation business in the Czech Republic. The net property, plant and equipment of U.E. at the date of sale was $223.9 million.

The Pipeline and Storage segment had a net investment of $839.4 million in property, plant and equipment at September 30, 2009. Transmission pipeline represents 43% of this segments total net investment and includes 2,364 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 428 miles of pipeline. Net investment in storage facilities includes $89.7 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 28 compressor stations with 95,949 installed compressor horsepower that represent 10% of this segments total net investment in property, plant and equipment.

Read the The complete ReportNFG is in the portfolios of Michael Price of MFP Investors LLC, George Soros of Soros Fund Management LLC.