NFG
National Fuel Gas Co
Utilities, Energy
07/13/2015
Presented
| Date | 07/08/2015 |
| Price | $55.93 |
| Market Cap | $4.72B |
| Ent Value | $6.46B |
| P/E Ratio | 21.19x |
| Book Value | $30.80 |
| Div Yield | 2.82% |
| Shares O/S | 84.42M |
| Ave Daily Vol | 430,000 |
| Short Int | 5.59% |
Current
| Price | $60.86 |
| Market Cap | $5.56B |
| National Fuel Gas Co. develops oil and gas properties. It is a diversified energy company, which operates through the following business segments: Utility, Pipeline and Storage, Exploration and Production, Energy Marketing & Gathering. The Utility segment through National Fuel Gas Distribution Corp. is engaged in selling and providing natural gas and transportation services to customers through a local distribution system located in western New York and northwestern Pennsylvania. The Pipeline and Storage segment through National Fuel Gas Supply Corp. and Empire Pipeline, Inc. is engaged in providing interstate natural gas transportation and storage services for affiliated and nonaffiliated companies. The Exploration and Production segment through Seneca Resources Corp. and Seneca Western Minerals Corp. is engaged in the exploration, development and purchase of natural gas and oil reserves in California and in the Appalachian region of the U.S. The Energy Marketing segment through National Fuel Resources, Inc. is engaged in marketing of natural gas to industrial, wholesale, commercial, public authority and residential customers in western and central New York and northwestern Pennsylvania. The Gathering segment through its subsidiary National Fuel Gas Midstream Corp. which builds owns and operates natural gas processing and pipeline gathering facilities in the Appalachian region. National Fuel Gas was founded on December 8, 1902 and is headquartered in Williamsville, NY. |
Publicly traded companies mentioned herein: EQT Corporation (EQT), National Fuel Gas Co (NFG)
Highlights
The presenter is short shares of National Fuel Gas (NFG) and sees the company as “a troubled E&P at this time”. At ~$58 per share the risk/ reward setup appears to be favorable, with downside to the mid-$40s and upside risk to the mid-$60s. Generally speaking, there is also some confusion about what NFG actually is, as it operates a utility that serves customers in western New York and Pennsylvania (~$170 million out of ~$900 million of EBITDA per year). Activists have tried and failed to compel management to change, as mismanagement of the E&P has resulted in outspending cash flow and the potential for leverage to expand (possibly rapidly).
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