National Fuel Gas Urges Investors to Ignore Bearish EIA Forecast

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National Fuel Gas ($NYSE:NFG) (NFG) recently released a statement urging investors to ignore the bearish forecast of the Energy Information Administration (EIA) when it comes to investing in the company. This statement comes after the EIA published a report predicting a decrease in the demand for natural gas and a drop in prices in the upcoming year. National Fuel Gas is a diversified energy company headquartered in Williamsville, New York. The company has a presence in three major business segments: utility operations, exploration and production (E&P) activities, and midstream asset operations.

The company also owns and operates oil and gas reserves in the Appalachian region, and is involved in midstream operations including natural gas gathering and processing, storage, and transportation. The company is focused on increasing its return on invested capital while strengthening its core business operations. With a strong balance sheet, experienced management team, and robust portfolio of assets, National Fuel Gas is well-positioned to continue to deliver value to its investors regardless of the EIA’s predictions.

Price History

On Tuesday, National Fuel Gas (NFX) stock opened at $51.4 and closed at $50.8, down by 0.3% from the previous closing price of $50.9. Despite this slight dip in share prices, the company is urging investors to remain bullish and ignore the recently released bearish forecast by the Energy Information Administration (EIA). The EIA is predicting a dramatic decrease in natural gas prices for the upcoming year. While this is cause for concern for many energy producers, National Fuel Gas remains confident that they will not be severely affected by the forecast. The company has a robust portfolio of assets and investments that help them weather market fluctuations.

They also have an experienced management team that is familiar with market trends and has made strategic decisions that have paid off in the past. National Fuel Gas is confident that if investors remain patient, they will be rewarded in the long run. The company is optimistic that their investments will pay off despite the bearish EIA forecast and is hopeful that investors will continue to trust their judgement. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for NFG. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for NFG. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for NFG. More…

Key Ratios Snapshot

Some of the financial key ratios for NFG are shown below. More…

Analysis

GoodWhale has conducted an in-depth analysis of NATIONAL FUEL GAS’s financial wellbeing. According to our Star Chart, NATIONAL FUEL GAS has an intermediate health score of 6/10 with regard to its cashflows and debt. This indicates that NATIONAL FUEL GAS is in a strong position and should be able to ride out any economic crises without the risk of bankruptcy. When looking at the company’s performance, we found that NATIONAL FUEL GAS was particularly strong in terms of assets, dividend, and profitability. They scored higher in these areas compared to their peers. Growth-wise, however, NATIONAL FUEL GAS scored in the medium range. Due to this, we decided to assign them a ‘rhino’ classification – companies that have achieved moderate revenue or earnings growth. Given NATIONAL FUEL GAS’s overall financial health and consistent performance across the board, it is likely to interest long-term investors looking for a reliable source of income and those that value consistent returns and stability. This type of investor would be likely to appreciate the low-risk, low-volatility nature of NATIONAL FUEL GAS’s portfolio. More…

Peers

The company’s main business is natural gas and crude oil production, transportation and sale. The company operates in the United States, Canada and Argentina. National Fuel Gas Co’s main competitors are Transportadora de Gas del Sur SA, Oasis Petroleum Inc, YPF SA.

– Transportadora de Gas del Sur SA ($NYSE:TGS)

Transportadora de Gas del Sur SA is a gas transportation and distribution company operating in Argentina. The company’s market cap as of 2022 is 1.35B and its ROE is 10.03%. The company is engaged in the transportation and distribution of natural gas to industrial, commercial and residential customers in Argentina.

– Oasis Petroleum Inc ($NASDAQ:OAS)

Petróleos de Venezuela, S.A. (PDVSA) is a Venezuelan state-owned oil and natural gas company. It was created in 1976 from the nationalization of the Venezuelan oil industry. It is headquartered in Caracas and its operations are primarily focused on Venezuela’s Orinoco Belt region. The company has the largest proven reserves of crude oil in the world and is the largest producer of oil in South America.

PDVSA is a vertically integrated company that engages in all aspects of the oil and gas industry, including exploration and production, refining, marketing, and transportation. The company also has significant stakes in a number of joint ventures, most notably with Chevron, ExxonMobil, and Total.

PDVSA has a market cap of $2.94 billion as of 2022 and a return on equity of 22.79%. The company is the largest producer of oil in South America and has the largest proven reserves of crude oil in the world.

Summary

National Fuel Gas (NFG) is an American natural gas utility company that provides services to customers located primarily in western New York, Pennsylvania, and Ohio. Despite the recent bearish forecast from the Energy Information Administration (EIA), investors should not be discouraged from investing in NFG. Despite the fact that natural gas prices have declined in recent months, NFG has a strong balance sheet and is well-positioned for growth as a result of its robust infrastructure and business diversification.

Additionally, the company has a strong risk management program and a disciplined approach to capital allocation. All of these factors make NFG an attractive investment proposition for long-term investors.