National Fuel Gas

National Fuel Gas Company (NYSE: NFG) is a diversified energy company with $6.2 billion in assets distributed among the following five operating segments: Exploration and Production (Seneca Resources Company, LLC), Pipeline and Storage (National Fuel Gas Supply Corporation and Empire Pipeline, Inc.), Gathering (National Fuel Gas Midstream Company, LLC), Utility (National Fuel Gas Distribution Corporation), and Energy Marketing (National Fuel Resources, Inc. - NFR). National Fuel Gas was incorporated in 1902 and is based in Williamsville, New York.

National Fuel Gas Co.
TypePublic
NYSE: NFG
S&P 400 Component
IndustryOil and gas
FoundedIncorporated in 1902
HeadquartersWilliamsville, New York, United States
Key people
David Bauer, CEO [1]
ProductsNatural gas, Oil reserves
Revenue$ 1.58 billion U.S. dollars (2018)[2]
Number of employees
2,080 (2016)
Websitewww.nationalfuelgas.com

The Utility segment sells natural gas or provides natural gas transportation services to more than 740,000 customers through a local distribution system located in western New York and northwestern Pennsylvania. The Pipeline and Storage segment provides interstate natural gas transportation and storage services for affiliated and non-affiliated companies through an integrated system of 2,972 miles of pipeline and 31 underground natural gas storage fields (including 4 storage fields co-owned with nonaffiliated companies). The Exploration and Production segment, headquartered in Houston, Texas (with local offices in Pittsburgh, Pa and Bakersfield, Calif.), explores for, develops and produces natural gas and oil reserves in California and the Appalachia Region. Seneca’s primary focus is now the Marcellus and Utica Shales in Pennsylvania, where the company controls 785,000 net prospective acres that includes stacked pay potential. The Energy Marketing segment markets natural gas to industrial, commercial, public authority and residential end users located in New York and Pennsylvania.

History

As one of the earliest gas utility companies in the United States, National Fuel Gas witnessed a number of technological firsts at its company or its subsidiaries. Engineers at the company discovered that depleted underground gas fields could be modified to act as storage reservoirs. Thus, the first such storage facility in the US was implemented at Zoar Field, about forty miles south of Buffalo. This turned out to be a great financial asset to NFG in the 1940s and 1950s, when skyrocketing demand for natural gas led to extensive pipelines in the eastern states being connected to new pipelines and fields in the southwestern states. NFG could thereby purchase huge quantities of cheaper summer gas from the southwest, pipe it to its New York storage fields, inject it into the ground, then retrieve it when demand and prices rose in the winter months.[3]

The company was also the first in the industry to develop a gas-fired generator to produce electricity for cathodic protection to fight corrosion on pipelines.[4]

In 1975, with the introduction of "Balanced Billing", the company claimed that it was "the only gas utility in the country" with a flexible plan for customers to pay bills in eleven equal monthly payments, with settlement of any overpayment or underpayment in the twelfth month. This is a modified system of installment credit.[5]

Its headquarters was located at 10 Lafayette Square until 2002 when the company relocated to 6363 Main St in the Buffalo suburb, Williamsville.

National Fuel Gas Co. is traded on the New York Stock Exchange under the ticker symbol NFG.[6] Its fiscal year ends September 30.

Subsidiaries

National Fuel's direct, wholly owned subsidiaries include Horizon Energy Development, Inc.; Horizon LFG, Inc.; Leidy Hub, Inc.; Data-Track Account Services, Inc.; Horizon Power, Inc.; Empire Pipeline, Inc., National Fuel Gas Midstream Company, LLC and Seneca Resources Company, LLC. Highland Field Services, LLC (HFS), a subsidiary of Seneca Resources Company, LLC, was established in 2015 to address the water management needs for Seneca Resources and other oil and gas companies in the Appalachian basin. HFS currently operates two facilities in Pennsylvania - a water treatment plant in Kane, Pa. (Sergeant Township, McKean County) and the Clermont Storage Facility in Shippen Township, Cameron County, Pa. HFS also manages the EPA approved injection well in Highland Township, Elk County, Pa. and the injection wells in Brookfield Township, Ohio.

Notes
  1. "Board of Directors & Management Team". Corporate website. 2013. Retrieved 2013-05-01.
  2. "National Fuel Gas Company - for Investors - Home".
  3. Knepper, G.A. (October 1997). "Underground storage operations". Journal of Petroleum Technology; VOL. 49 ; ISSUE: 10. OSTI 538258.
  4. "National Fuel Gas Company - SWOT Analysis". Datamonitor Company Profiles. 2008-05-15. Retrieved 2008-09-12.
  5. ""What's behind your gas bill" (advertisement)". Warren Times Observer. 1975-03-12. Retrieved 2008-09-12.
  6. NFG profile, from Google Finance
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