NFG - Earnings call transcript Q2 2018 | National Fuel Gas Company

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Operator

Good morning. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q2, 2018 National Fuel Gas Company Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session [Operator Instructions]. you. Thank turn to now of Welsch, call Relations. Investor the will Brian over Director I

your conference. begin may You

Brian Welsch

Thank we and discussion on call today’s earnings you, joining With from conference you Mike, release. Company call good John discussion end National morning. Fuel for Chief Seneca Resources of questions. Executive and Treasurer of are, President President on a us prepared Dave Bauer, of the Gas evening’s and At McGinnis, the will Principal Tanski, Officer; appreciate Financial to last the the We remarks, Officer; Ron us open and Corporation.

quarter like earnings Investor Presentation Relations second remind teleconference today’s to today’s to forward-looking and our have We site. May during may refer you that The Investor fiscal contain XXXX Web these will on would been statements. We posted materials release call.

Fuel’s faith, good on are basis, These evening’s While Phoenix. the listing as made and earnings this be Form in made, a and results later in of are beliefs factors. statements may risk National are reasonable the release to Fuel to participating differ they materially. have only National Conference last actual projections refer certain in expectations, speak which believed specific a AGA of month for Financial you may and date will

attending, it to over Ron If schedule a me I’ll turn And on contact you meeting plan team. to Tanski. please that, with the with management

Ron Tanski

for was in in Bauer and will news little another good quarter us Thanks Brian. John last road. for set one Good release, we segment the National the operating Dave morning earnings a up good everyone. down quarter recent fiscal details cover McGinnis evening’s the developments second some just bit. Fuel that and highlighted continued

value development our system. our the strategy to of know, of build-out and the has gas interstate company National overall you been pipeline natural natural of properties As Appalachia focused on our in the increase integrated Fuel gas

$XXX to saturation, $XX stable in in our segment precedent and population utility for million to plan our segments, more prices. trending XX% with production market with available this might area to to development Seneca’s system project possibility territories a While that maintain each the million our have about committed Seneca returns from last business production earnings. business. are roadblock of service pipeline Western to the upstream talking however, When high higher interstate to our natural given business liquid business Northern be agreement and signed week, transport gas remain this a and earnings project opportunity began In each just to utility we to Pipeline a our our develop year, and additional grow we utility under regulated build a the invest achieve our of only utility year customers, to our Access gas Gas area midstream the consolidated pipeline into ran stronger we would do we that an Transcontinental market that that. Earlier project natural are a

modify FMXXX its a to day day Transco to Seneca’s Seneca currently this Claremont-Rich Claremont-Rich stages development pre-filing Valley of This involve the project with s investment XXX,XXX into X. Transco no currently Zone path if corporation. from Modernization supply of Project this that in shippers Corporation is see potential Valley into Leidy. to transportation be on at discussions and and accommodate XXX,XXX having are upsized of project build is can system supply above facilities FERC, and phase other currently to its a will discussions portions it Clermont-Rich from allow production per but Transco its early the the leg area, to in for the a Transco first X a by to Since our in for capital XXX,XXX transport generally, We’re would of Zone dekatherms markets. has project, day also area meaningful Valley Supply

leases complete Transco. rate. X agreement at supply Valley into long-term a from capacity its to provide We to a path Seneca single enter Using markets expect Claremont-Rich Transco a this will Zone that to could lease then capacity,

expect the will Northern rate competitive We project transportation be on extremely rate. Access this the to

said, are litigation stage us; I date in system of as the its system, of expect all this outlook project’s it While project updates furthers second project of waiting pipeline. rehearing. had over up to the future on Supply And Corporation milestones. an calls expand late the We’ll our XXXX. does is FERC or in-service the and hit earnings held smaller of order we its Northern day important older we’re long-term; project more this per dekatherm the system development parties and various XXX,XXX Northern in things when our alternate a it it three at production; allow Seneca’s Access Access interstate and for Meanwhile, still up pipeline than boost is day early in XXX,XXX targeting project, of on creates an circuit, and, modernization ongoing get to for it

we for date An we current perspective, at FERC logistics our fall from the be XXXX. to to markets. pipeline conditions construction cutting in-service currently believe a that in that shippers of Northern we question project, for soon, value materials Access and look routes a circuit believe an we likely environmental obvious looking Northern the given pipeline positive market, we both projects? possible both in do the good and at access long-lead the arises, offer revolution From and Access we would different would restrictions, equipment, As or tree that, either even second times for received construction the various if various

fill Transco $X.X The project billion the on $XXX Seneca XXX and project? to a would projected to supply supply Access and both Northern unduly pipes, be increase well project credit or inventory acreage one in required have $XXX that that, as We a looking million up While we that have have, good much our capacity. million to Northern view spending a capital the before. modernization at drilling would Access substantial will our XXX expansion fund that we’ve bigger solved addition, would the the is, problem In stretch not the question us to fill day able financing but day options and metrics. and a the that would and additional to do in to would be extra

we before However, of gas either lead-time projects. of start plenty have flowing into would those

be of in North commodity This fall February. and and a our compressors this upstream we third throughput topic electric service New and Appalachian simplify filed reasons in we We in involves of not adding for release application voltage marketing we’re number is its we on new that So substantially basis grid designed our York noted high firm have have increase we’ll on per on we’re quarter the operations. emissions production project process, rig now. lines From day one this station long markets to an These permitting and adding sales for should prices, that of electric we the having on success our There rig capital I’ll in existing our perspective, differentials, and operations. compressor for contracting as summer drive outlooks, is dekatherm and for and fully pipeline keeping types economic of drilling on spot for and eye exploration state Seneca’s sales lead-time, move available time gas of the Empire evening’s periods a note overall required forward. the FERC this XXX,XXX the on continued the production a be a we in Based Keeping or to with locking-in proximity and market. projects, cost pipeline the order natural that in project our minimize interconnection Empire Seneca an the subscribed utilize Switching of pipeline. compressor the will last relying power and to station XXXX. this meaningful of proposed compression compressor. price

it that we the and system, the we of return production efficiencies as economics well, utilize WDA our exit infrastructure. pads The very our to existing is solutions two in of our increasing an will already drilled our gathering throughput Over production. In inventory and Seneca perspective, docks. don’t and point Utica combination and all well Marcellus to working compression the its stack can but overall Marcellus of perspective, operational an the previously words, Utica which capital is toward capital. drilling improve the From possible longer-term, just-in-time the earlier, provide basis. gathering program, wells mentioned WDA in program the zones on very I production for for basically we’re of on gathering existing or constructed our our have of our for and By an a flow we our where overall drilled at wells other uncompleted from completing transmission good. production, And efficient use production and are integration operations, a

move help into efficiency drilling gives pumping operations. improve we wells more drilling the have that us more lot a As the time, our us more crew. Utica pressure rig a it flexibility available, of having Adding ducts longer in completions operational third of will our the single

one committing As rig of for drilling to contracts, with this year we’re our a all three term.

rigs next of options this renewal Our comes our up other for one December.

operational So plans. to we drilling we flexibility of plenty adjust our if need have

production fiscal within cash we’re operations gathering and years, consolidated We to the past live As cash with our lived we’re careful the being within our always, flows capital for spending. two future. over in and generally looking flows

to there However, production outspend and economics to of good gathering year is improve slightly operations. rationale this our overall we believe the

on and Production to over details the I’ll Now, turn McGinnis call Exploration some segment. our to give more John

John McGinnis

interstate of for From agreement Seneca transportation This new year’s to are capacity slight transportation second no capacity new everyone. largely firm areas, Tioga. second XX%, in during long-term new of discussed. XX.X during development by path into gathering compression to of Thanks, system increase just produced a that quarter premium Transco’s quarter. provides been Ron on from connected second pads the XXX,XXX firm Bcfe the almost a eastern Transco bcf, million a Clermont-Rich system. Bcfe pipeline precedent Quarter-over-quarter, to new last we WDA the enter Valley XX.X XX.X addition quarter. that and we Zone a up perspective, was over strategic to day driven able a morning, Pennsylvania, the has pleased and bringing In quarter by last in year's compared good X curtailment and Seneca in western with markets our the both produced Ron production

this fill into new is two County One largest project. this on in and productions and new and attributes Lycoming our Seneca can CRV an to transportation the key flexibility anchor allows unique be clearly We will utilize path system most from our our areas. Seneca gathering acreage economic capacity, of we benefits capacity. the the the firm both how development shipper

does As Ron project in interest discussed this Northern earlier, Access. alter not our

has acreage than enough pipeline these more projects. both of and drill Marcellus WDA Our fill Utica inventory to

WDA, wells over well Regarding as current operations, XX call south the CRV have most best as our we well has of Rich located now XX Utica trend days. our plus producing now we Utica in the well approximately area, area CVR, Valley and WDA eight in recent with located an been Mountain, nine for on miles appraisal Boone in in online

On per X the were an well X,XXX early also and normalized over rates EUR and to X IP suggests this that IP history of identical it production essentially will well, basis, foot Bcf. XX have

Utica reservoirs that Zone not have at Boone Mountain has two In previously. distinct Point seen we addition, Pleasant the

in Utica lower Boone the determine zone Pleasant highest productivity. return Our similar will to deeper the shallow delivers first CRV test Point target a area. we we our to which But to section well zone Mountain, a when targeted

if drilling results Rich conduct this additional between new development appraisal Mountain. will a remain to Utica But Valley and have corridor. open We consistent, up Boone

XX% and quite Marcellus average, cost laterals. deeper continue times basis, on on program X.X wells to can are a a foot range larger longer full program to-date, that X drill more. only to they We WDA in have should we’ll Utica WDA. our on deliver Based times transition over development the than EUR our XX% wells that an our per results bit wells since between Utica to from These

approximately CapEx Over directed WDA XX% our Utica development. XX of be months, towards the next will

front, On continue sales. firm the to to add we opportunities see to our marketing portfolio of

supply to front already we transportation project expected NYMEX, sales later will is it project providing few summer, Sunrise NFG have years or be to firm XXX Atlantic the a the additional million new production. a of before to service this us in locked-in able at where day transport WDA go premiums While is Transco provide

XX additional approximately flow. and firm realize of As that our weighted XX WDA fix to and recently such, almost firm volume. EDA new over XX portfolio, XX Bcf in-service fiscal a is a our or of amount, capacity of securing of of sales our minus takeaway pricing fixed The to for in A the our lock-in for project. basis to fixed balance NYMEX new we at Bcf the XXXX and portion provide new sales executed for nice XXXX XX, cash a Bcf provide date of heavily begin Of $X.XX, production. bridge at sales Bcf price in to gap basis helping locked the firm WDA the production fiscal addition

online our improved total have couple forecasted Turning to any Atlantic our way in target estimated two still full the reducing the this service. with a we at of the in an Xst. production schedule, of Further, order delays impact This production than to eight advantage but sales flow in-service our sell is take August few likely pads adjusted County wells market Sunrise back the of back gamble to in months. guidance, production ’XX update weeks production we an Lycoming Sunrise, on August, target provided. to on of a This Bcf, have our change a to has adjusted month to recently where of date modest a fiscal we our assumed Atlantic a short as by about point, prefer with firm within last down is into first later are reflect the date pushing opposed associated weeks guidance additional capacity, moving this operations as

We continue gain exact dialogue lock-in service with we schedule active Transco timing on once more end clarity our and around an will the operations date.

So at and XXXX, of a remainder we’re shape hedging marketing the looking fiscal the in great front. on

the basis Bcf approximately XX price the XX another We with Bcf are at sales for realized reminder protection. Bcf. firm in an very sales for Mcf, Spot have less modest year of locked of than and per average at $X.XX XX

with as sales firm over chip-away fiscal grow to exposure. next quarters have sales few success next look arise, ’XX into we opportunities program. quarter rig locations and The will to up a add of existing rig ’XX of and to XXX future to we we’ll WDA to to CRB this tied area continue into capacity, decided infrastructure. the our additional firm the third an years be accelerate well as pads our the on with dedicated spot finally redevelopment Over and locking-in at our gathering And development primarily the Seneca’s upstream Utica acreage, on already couple existing

continue also and will to operational enable drive our rig well drill third improve on The flexibility and cost our us per basis. completion down to a

have Tioga Marcellus Going in forward, the on the raise and to rig the in one Lycoming focused and program. two Utica primarily EDA Utica we’ll develop WDA,

So moving to California.

Sespe a of its location $XX the oilfield divestment current County regulatory and May for of by of was county As growth absence remote significant we Xst, from our operations, primarily in increasing Sespe sold decision, million. driven our opportunities. Ventura restrictions The strategic

and thank done will counties. like in operating job the field Joaquin operators to the field our XX a would now past exclusively Kern I operations basin in who San personally fantastic Fresno years. over have focus Sespe Our this

Our acquisition averaged Though down production of oilfield into years produced March to day excluding slight XXX,XXX of in growth quarter, XXX beginning the entry oil February production Daily decrease our of reserve Seneca’s we a fields. decline. the ago. now are slightly, quarter-over-quarter. Sespe, during California was Sespe higher this are XX than barrels in with most per barrels we second We at

gas see ‘XX. third we’re Dave. volumes related expect we grow I’ll will midpoint $XXX the million with late midpoint raising until between year, a over we however, production in And a to from $XX next not next capital this of production fiscal year. now natural XX% on of to over to million to our XX% the it year. the $XXX Since a that, result As average by now years, And adding rig for turn adding two our the we rig, guidance fiscal are of expenditure

Dave Bauer

John. quarter GAAP the per second National share. were you, earnings Good $X.XX Thank morning, Fuel’s everyone. for

tax adjust to need deferred we our entry, an balances. Excluding

$X.XX, the the in colder compared operating adjusted new Our year. our of our to impact York last over division, nearly last increase XX% year. rates were results utility, and drove earnings in weather $X.XX In New up

price per As our tailwind received more rates $X non-regulated order offset generally is haven’t $X.XX than and you’ll of increased last that favorable in recall, gas Appalachia case place our rate in was throughout the but barrel that This an year. were the natural curtailments when by of unfortunately York increase in more supportive last rolling experienced million. crude last related April, in quarter we remained by per hedges a second expected In the mcf since the realizations we realizations. price oil The bulk some was highest. realized in in great any seasonally New has than decrease winter, Seneca’s was given off throughput Pricing operations, was $X which November.

federal to income tax way work continue We through reform. our

impact favorable expected respect on and and the XX% item rate. taxes, With fiscal XXXX impacting in have comparability on new During law XX% on the was by The us as income the to on release. alternative we to refinement of previous is the IRS, the effective be first around the the our for statutory XX% guidance this tax entry, in minimum balance tax further income XX% quarter night’s an balances we cash reform led last quarter, to adjustment year a impact the our that the revise tax a sheet. company. once is of Since to which reflected it tax for reflect beyond, to tax, and statement to issued clarification deferred rate we area the very about entry accounting particularly recorded move should

law, $XXX credits principally AMT we’ve approximately several past the refundable. development enhanced and the oil Under tax, accumulated of tax are years, million alternative Over tax credits. and minimum recovery credits, new research the

corporate to think income that not proceeding tax a it’s have result, gas cash including natural play reduction net And routine the March, for when taxes. FERC of reform. tax the tax rate payments. proceedings, ‘XX the our will in rate likely companies have into related both once in number number MLP’s the state in eliminates worked fiscal timing this practical tax and will our tax tax issued a new XXX-G, service of statement through through our we’ve a rolled and the tax will of a it to over instituted FERC proceedings This over As new XX given expect credits, NOLs rates addressing that required and the results. review both that of should of rate. on would impact the In rule-making state be pipelines would that our expect we be a federal out ability XXXX, tax refund fiscal expect XXXX be standpoint, area, includes position. been recover From months to form we the of or Longer-term, different and so. proceeding in XX% the any file quarters. FERC late to we regulators mandate proposed course of notice the our light next a Also income pipeline cost active policy we be March, a

course New both and customers. this on at York subsidiaries several reminder, C-Corps, utility continue in clear impact as FERC both to proceedings policy us. preserve of Both intend The over the for the are to Pennsylvania charged look the proceedings, the pipeline have of benefits next tax new to to jurisdictions. impact And net structured will the be reform now months. payers. reform the In tax commissions initiated in to it’s completed regulated the rates a the not will tax As so impact proceedings we’ll defer reform of meantime, rate that NFG’s states

$XX a provision expect fiscal million. For of approximately refund record year, the full we to

guidance. to Turning

our per guidance We’re share. a earnings tightening range to $X.XX to $X.XX

us range the in of These cost offset from Sespe the excludes this for $X.XX the drivers include Gas primary that re-measurement deferred the Hub reminder, assumption the expectation earlier. our $X two of by sale a barrel, that mentioned impact of our system. of quarter high taxes our led the end to oil to the The price the price somewhat assumption per from decrease and and earnings of I $XX properties across income MMBtu. reduction our the As increase and per continued are strong NYMEX to control results Henry oil $XX in

limited almost more are forecasted prices. XX% have oil and We of and volumes our of XX% attractive of production well for production reminder hedged natural than gas the with hedged the year spot at

and results. have summarized earnings So limited line any earnings The volatility are on release. impact in a with of are in our other generally remainder key our previous commodity prices will assumptions last in night’s expectations,

we’re Looking our $XXX increase a guidance million to spending, at fiscal of million. ’XX capital to in range $XXX

attributable increase this at Seneca mentioned, is addition to John As rig May. the in third primarily of a

other will in previous from with line the with A which million year, The the $XX this in forecast. capital are Sespe funded proceeds sales. will third largely our largely be businesses add rig

for continue expect As our from spending in result operations. to cash we will our line a with capital year, the be

expect increased pace about activity on of will per business. cash our to million depending the we of the on forward, outsized completions. gathering will flows increase by impact Seneca’s rig year, Seneca’s have $XXX the spending Looking million capital new an $XXX

from John earlier, wells over As these Consequently, gathering mostly next will the Marcellus and the drilling Valley our area. Claremont-Rich infrastructure. spending Utica Utica WDA compression in our years, Production on capital wells in be very few the into will mentioned gathering rig modest. should from be locations third flow pad the existing

combined a the strip, over for in within to the operator cash open With in pretty free and beyond. then should XXXX grows, line XXXX As E&P businesses turn cash it we’ll will flows cash and the we current and generate questions. a live substantial the XXXX. the We’ll in that, to outspend Gathering I’d and flow assuming to like have expect free On small business Seneca’s production basis Gathering generate flow.

Operator

first question Howard Holly Your Scotia Weil. is Instructions] Stewart from from [Operator

Holly Stewart

those first just you gone flow that numbers, since Dave, was Maybe throughout question. cash my

release you a over funding mentioned E&P midstream I the cash you and be flow. with So essentially self know in multi-year period

you or of So living don’t I us around some want how it, just but assumptions be you within that cash if some -- you I the know may it’s flow? if to and at gave provide curious specifics. was could commodities look

Dave Bauer

Yes, it strips, long-term. the in would be at current it area XXX the we’ll say

Holly Stewart

And then three? still count the rig at

Dave Bauer

Yes.

Holly Stewart

And about you then may we’re about -- be WDA well. and new well the talk is the just just the done thinking on well, just delineation completion one changes the design, there? design, Boone the far what Can what in it we’ve so similar Utica, making to

Ron Tanski

Holly, we it’s doing purpose. But to we’re that CRV apples-to-apples It’s X,XXX short because purpose what barely to we We It’s on just in very the similar. wanted over on foot. area. lateral. compare did a did that it

what similar. was -- a We pressure. -- it’s is end drilling bit even very in target the completion bit see CRV. and So design it day, of deeper, there little the both was higher still to little But we the the at same

Holly Stewart

need And then to I do that just you the perspective many on out you in delineation do guess one WDA? the think from prove a How delineation. wells to more

Ron Tanski

XX miles distance. a is long

think fairly then three see If I my Mountain, -- opinion, risk. are the will that be say, would Boone Honestly, in two So we I going pretty anywhere appraisal pretty results, low consistent wells us Valley Rich to good. entire it’s between comfortable corridor will think I certainly, to and we work. we’re give

drill test until you But it those and we think will work. never I again wells know.

Operator

from comes question Chris next Sighinolfi The Jefferies. Instructions] with [Operator

Chris Sighinolfi

night, You lot announced Ron. a last

follow the I number third it guess in Sunset, seems So the you rig of changes strokes. that more the Sespe of have response and of -- acceleration sale of gas then importantly pricing refocus about I Northeast role production. addition some Midway last in could demand There have development start, the announced upon of on clients right. lot just John, Pennsylvania, broad forward lot Utica the about residue and peers just the gas investors one strategy a it worry the that’s A just if will general and I up, back one play of a are than and talked night want dynamics Seneca all of your in production. scaling the gas producers going WDA, and talk of to and are to in

some with just maybe wondering from -- sense a just comfort peers, of it different the that getting Seneca bit to contract in plans, I’m So little and you then of how that we’re some your it’s that view.

Ron Tanski

We’ve But with to we sell We’ve Sespe It’s a condor continue to over closed it while, pretty in the it actually move to for value of late to been begin a a to quite since and early drilling just attached an then forest would the late well sanctuary quite it It’s distance. And sits County. good and that some it. been Ventura very wait sell there Let’s so really at operations California. while. than issues, a and it I’d felt close agreement extended summer years probably sell looking Sespe difficult, years, it this seems few it forward to for period a continue that one before terms summer. trying some have last for we for was LOE actually looking honest. as it. on that but our start with asset always say been remote we It’s We next that watch to be have be permitting a quite expensive, national to a and has or base. great And a rather decline wells. it’s very there declining new get basis of of permits and fall year, time to we in really both production within can been on

volumes know, were over to been able We for to ready moving Sunrise make towards a period the up lately we’ve new for capacity have ramped down time, be East, for -- sure while. as of prices for in Moving improved. to two to that. that quite looking rig Atlantic to a And one gas we you rigs exit when

with when good that’s that need years, into rigs. a so of additional guide very and within it rigs this how fill XXX,XXX agreement entered three comfortably, to pretty proceeding gave in us we would terms And three we another many

Our marketing group already has and locking-in and done a begun in in superb work have job volumes, beyond. fiscal unlocking we XXXX volumes XXXX

just from from a job terms of inventory, lot so were a able our us given us price for of exposure made at to to done just risk. in or exposure, sense quite well bit. of to rigs a once good spot we of a -- guarantee sense it that up reducing for At we’ve capacity, made three a ramp a least exit And it us lot this lot

Chris Sighinolfi

Okay, thanks…

Dave Bauer

that, Chris, so to that of you decks, we you think add price which economic. be Marcellus that pretty gathering achieve. much gathering mean because of you drilled. wells and is should we’ve is This covered I will -- highly that our tables subtract economics in our made able that that infrastructure, the I’d from is could and the the production we’ve that Dave. this the to already rate economic $X.XX sense give of a investment by the

Chris Sighinolfi

that was know of a And long-term that I yours. Dave plan

Utica. be to system from gathering the the pressures able higher the built had to You take

that’s guess ultimately Transco I that going I you’re was to adding to So it the seemed planned. to evacuation, carefully supply… -- tethered John I the and why know the It asking was that address, just this fact pretty down. was like

John McGinnis

Chris. absolutely Yes,

Chris Sighinolfi

capacity. are you. about about entering wondering supply you think in-basins thinks Are markets? that those and that. your just context other with impact your in you how or this the pruning, in-service poised from you those has about Atlantic on Rover How firm and happens applied in bridge a of talked I front? that like NEXUS to are targeted the assets buying talked sale are and then Transco and ramping they there you on the within candidates am job the What online. from Sespe basins Ron up about have thinking think might the pipes those into or to you about come for in Sunrise, as prepared to they how of remarks is agreements anything guess and do agreements team between it portfolio done, and the follow on gap production team that sale I And

Ron Tanski

in especially basis long am the what tighten aggressive, basis last. I on it’ll sure pipes on we’ve there in should focus in Honestly, even I bit the bit question. up. a Pennsylvania be I of differential should opinion, once it those Transco. I Tennessee will one both think tighten. Transco do come That’s but NYMEX, being of think it’ll It’s heard what I my online, actually held more not -- because will a pipes certainly terms differential reason on the we improvement, a little off pipes and think

to a way of rest and meaningful they’re makes be determined. not doesn’t And our are been all Chris at more so even there have. what and at and those So well, NYMEX pretty come about. is with with your Devonian that pruning Again our the of outliers looking what in with they we minor question said, assets, we then sales, sense time old as always the some we’re obviously, big appraisal I Midwest, were to once Henry How continue talk the minor never dollars, on. our but to be recently comes respect picture? that layer And think sales production early we’re additional rationalizing looking there the from when pipes and in opportunities sandstone wells it the production, will to pricing Hub gathering system. operations. impacts have to that shallow really big And

John McGinnis

And just with let me that. continue

is of move once growth begin those. those two in additional terms of Midway in one And on we into north those California, we because get why selling part have and called is related XXN. think Pioneer, into entered Sunset, one now farm-ins, good south we bring we to to called Sespe production pretty comfortable In some were we’ll development,

the over few So we focus if an County, certainly will years. have flat we we -- growing our that Kern production next not be believe and our do that’s slightly can in area keep

Chris Sighinolfi

your view assuming I to to comes how flows. I strip you’re guess running basis think And and you current to If are when basis you differential? cash market your Holly, forecasting are answer tightening, just that current around back it not

Ron Tanski

right. Yes, that’s

Chris Sighinolfi

expect Transco should am a I approval on guess Dave looking from maybe little for just And the what regulatory supply color project, filing we more on bit I a and key little what this initiative. past different from to for bit than monetization the seen capacity seems be peers the or process a adds to we’ve milestones, you in simply your because marrying

So anything I it there’s it’s it? about to just and if know supposed don’t to follow work, same cadence same the if we follow -- if expect the process should

Dave Bauer

that system on projects involved all number a we’ve done Line our modernization. expansion our N of have Chris, Actually

-- And Access as that. project adding did modernization west Access use could And like then the a capacity did our could project those of if as that we we’ll is details, seeing we’ve -- negotiate we’ll FM-XXX already classic component. in a that interested we that Northern look had Ron and we think our process, filing use first project -- those the our then on to lease. example overtime, leased Northern the you proceedings said, modernization you’re expanded side expansion be that the you XXXX end, where I started Tennessee at So system. had the From

So not I any regulatory here from that know perspective. we’re a don’t new charting waters

Chris Sighinolfi

for the reminder. that best that, about thanks forgotten the probably example’s Kinder Okay, had one. I

question Ron has though as final guess there for regard quarterly the been recognizing might current and I last your that I for appear Access, you But same me, then some thoughts sorry how on with two since nor if of are an have deals. much it shape but so it’d changed and it But update ask figured feel has call, be updates externally, taking Northern for are just worthwhile much any the Okay, with deal not out? time. to projects the constitution course to doesn’t their

Ron Tanski

answer only that of and situation there fact is if at the much we’ve -- Again, really You’re constitution the denial us we the at Supreme like that when said for before, right. The our you projects. differences an Court that we show various thought the really between that We simply as nuances all. and they does seen FERC, thing did have think don’t easy could was denied they appeal. changes constitution it’s taking long, so

that changed view So all. our no at hasn’t on

Operator

this turn call the will back There at I questions presenters. are to over time. no the further

Brian Welsch

To time telephone, bye. XXth. Friday, at to to by be enter We’d at call this X-XXX-XXX-XXXX business the To Investor our please with Web you, of access like Thank on available concludes telephone. call And online, call access be close Thank number Mike. replay good A Relations approximately everyone Web will and and our for replay the us on thank today. we’ll today. X the taking visit both and through ID site This investor.nationalfuelgas.com. conference for site run of XXXXXXX. the May conference PM Time our you by Eastern

Operator

conference today’s concludes This call.

You may disconnect. now

National Fuel Gas (NFG) 4 May 182018 Q2 Earnings call transcript