NFG - Earnings call transcript Q2 2020 | National Fuel Gas Company

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the 2020 Q2 National Fuel Gas Company Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to your speaker today, Ken Webster, Director of Investor Relations. Please go ahead.

Ken Webster

Thank you, Amy, and good morning. us evening's conference earnings joining discussion for you last of release. appreciate on call today's a We With us Officer; on McGinnis, Company and are the Financial President call from Bauer, Principal and National of President Seneca Chief and Executive Officer; Karen Resources. Treasurer Dave Camiolo, John Fuel Gas

open the At will of questions. to prepared the discussion end we remarks, the

these call. Relations The been posted have would second investor website. may remind today's April We presentation you quarter today's fiscal forward-looking teleconference and XXXX materials refer to like will to our We statements. earnings Investor during release that on contain

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

me you schedule the attending, on please or plan meeting contact team. with conference a planners the If management to

turn Dave Bauer. over that, it With I'll to

Dave Bauer

Past realizations production. the for for to have our COVID-XX also leading gas adapted prices few morning, of anything lower earnings the but an territory our and write-down Pennsylvania utilities results, the noncash been earnings ordinary From our pandemic. on Thanks, weighed weather on impacted Good operations in service and properties quarter. Warmer our to oil Ken. drop continued National commodity in everyone. we as the Fuel months our address perspective, the

integrated our system. of another our the our has Seneca right way and continues of rate execution settlement well was to we was and of solid taken communities Corporation's throughput gathering COVID-XX had potential a and In at On the customers of positive recent short, of diversified an our example other side, the our the pricing great great expectations business Supply has quarter weather, record such. than operate our line to which results essential we've in and the obviously But quarter in and on businesses deemed operational with pandemic on benefits exposure drove the impacted businesses limit strength Each The workforce, considerable steps in and been operate. which as model. we service operate. midstream

distancing work the business, The safety employees of customers employee a We're cannot from is there's Any our who is our doing Those work equipment and currently nature top can both of large make employee given our committed any and implemented reductions. home, can't. and priority. employing who furloughs they or so. workforce who home from social group not number to We're safe. our to and sure have personal stay protective

And the this Our thank during that all considered. exceptional really employees proud challenge. say their stepped to everything I'm and have the running smoothly, to they're efforts, because of of things up employee business crisis. for doing group our them you very is

all progress program operations states. Day-to-day by on business haven't has seen financial given that the most interaction business reasonable the meaningful Our We've impact pandemic. in making the it's the been of the greatest impacted of the we're perhaps customers. regulated that businesses part both any modernization customer-facing pandemic, with our utility from have work; still suspended the non-emergency annual

gas this on change a very point, concerned. overly $XX spending to plant downward volumes result low continue monitor. by should a be result capital the in a customer our not at isn't about At discernible relatively territories. winter summer. we there haven't shutdowns, in into of uncollectible is point, are a down in and service bills are as and At area as small we're we due million get utility given but this seen lower will trend and backdrop the major we'll Overall, as prices the focused payments, spring modestly We're the Industrial customer throughput. this point, lower we to move Thankfully, pandemic. expect an this of economic expense warm the at but

significantly and the pipeline operations impacted Our storage crisis. haven't been by

on Our to pipeline and North the are the and are pretty by and stay should be project generally well remote year. social completed projects efficient. on-site the facilities and end locations, and Construction distancing crews our able between workforce PPE, in construction is located proper underway of fiscal Empire

revenues. will $XX in add As million a project that annual reminder,

last guidance the at in pipeline is night's spending down You'll our release at midpoint. million the capital that note $XX.X

Now Corporation had delays Supply at proceeding. its projects in largely Corp. to some due in a modernization Supply case this is outcome rate good smaller

recall, black-box last a reached You'll our summer to the supplies of for requirements In that case satisfy settlement early the comeback we settlement. in rate a X-phase previous increase rates. February, parties filed provides

X, and by effective was annual rates costs. higher increase February supplies transportation by operating program $XX This higher which part storage and approximately large million. driven balances from in modernization was increases supply's phase, XXXX, plant First

supplies approximately $XX rates, depreciation of accounted addition, $XX which rates reflect million for the In increase. higher and salvage million negative rate

modernization project Judge has cost final that to the approval for to which filed. of rates. this XXXX, five think of recover case settlement, another modernization we and now X, we're that The if our on filings, certified FERC by the reflect waiting will the back agreed Under and rates come in the rate which to next two. FERC of no on after new system four increase rate project. Overall, million month is the for the $XX component will phase, a commissioners, good and customers' Second is settlement predictable settlement agreement, year I rate desire the or from it should with be our the the balances need will year come in-service moratorium April it date supplies a effective later of that FMXXX

curtailments, Seneca rigs, but five by this in level that two We're XXXX. at at one is drop and business, crews and remain will our to Bcf barrel recent the drilling are in capital prices mitigates Seneca's completion $XX Switching E&P the summer prices reducing to XXXX. concern, hedged guidance Oil reflect fiscal currently production a which pricing Seneca's impact to continue above also on but is at through lower, operate coming a we're cash spending flows. for related Pennsylvania. well

a to in absent California good and in major fiscal Our is next in drilling O&M cut shape. we a capital continues the program spending significant to year. in for And be in looking year. complete the recovery expect business prices, California XXXX, Overall,

in North, to fiscal XXXX. futures into results, projects, prices for Empire at XXXX beyond. businesses Our cause growth for NYMEX the regulated have continue are to positioned perform and there's well, on and Commodity Seneca's weighed thanks looking fiscal optimism curve, like but

With to over that, the more turn John on for I'll Seneca's call program.

John McGinnis

Thanks, Dave, and good everyone. morning,

where production results, second heading. to solid of though saw as a we in damper curtailed business XX.X almost we're Seneca's of quarter, Bcf with XX% an our and still the to While pricing-related with across quarter. be gas a And increase pleased an low operating year's voluntarily all curtailments result very prices natural three even we Seneca last of areas. quarter-over-quarter prices, results produced compared this quarter increase operationally, put our gas appear on Bcfe during second

to rigs this will single summer. commodity spending drilling and drop prices, an We in operating moderate once we're this as given pad capital a are We're rig we discussed complete. will two Pennsylvania last to a but XX-well the currently in drop current effort WDA currently quarter, in rig

XX% and Beechwood in and development that deeper have online we the six comparable area. It's by brought into terms this our In further Rich our Valley results the best-performing pad WDA. south pads the second we of program, to about this in located and pad outperforming in the our our pad, basin, are We to type drilled off quarter. are WDA brought move online two interesting note area this Utica the Utica curve wells as first we

In year's in drill activity As recent XXX,XXX a during of fiscal an of late an we in increase over Pioneer area 'XX. is barrels pad to to the is in our utilized quarter, Midway by with oil quarter. Leidy for and our production that Fresno South scheduled Kern second for California, around on quarter. is Sunset four last Coalinga This properties will our XXN well our this next forward this we be driven development within be produced target fourth at capacity, increase brought area in-service X% our expected date pad firm The still fill second fiscal online which and and in County. early move program, primarily is located from County

negatively however, a field. our result we collapse long-term operating performances each of of implemented oil in the have reduce to measures without prices, As the impacting expenses recent

$XX this oil good at for our average the of oil are barrel, per an production in we in recent of downturn XX% price with Fortunately, remainder weather to of approximately around prices. the year hedged shape

As out lower the we to expect our to XXXX, compared to of remainder we modestly oil when fiscal flat quarter be second production results. look to

of XXX curtailments the lowering Bcf Bcf to to are curtailments at around In of X.X now additional down guidance, our our we April. forecast and quarter XXX between of production two in Bcfe, terms range Bcf around second to entirely midpoint, five due

$X.X to of our decrease We're forecast curtailments $XXX to million range remainder CapEx we lowering additional year. no guidance usual, fiscal the a million midpoint. also $XXX at the As of for the between million,

service in associated with Utica well decline the our gains drilling as and the East. reductions Marcellus We continue industry of as costs efficiency to activity in the in see in continued wells

positioned our approximately XXXX realized gas fiscal the physically and of We for about East per production Mcf. $X.XX well remaining Bcf of the a with at year financially of in or locked price are XX% rest XX division

XX% collapse for providing of been moving two gas presentation. of our result, XX is increased the our are prices a forecasted huge XX the hedge oil already basis have natural years, so remaining in we of on as We into over firm lift sold. significantly next over position couple our Interestingly, another recent Bcf a details have reflected protection, Page years. production which next gas investor of And the prices sales the of have

And how has team finally, with through pleased conducted the Seneca business the our of coronavirus. I'm impact very

field work have our job able to continuing been operate effectively and the this has done operations in safely period. We team great a and our home since are offices from successfully during to closed,

to over it I'll And turn Karen. with that,

Karen Camiolo

John, everyone. Thank good you, and morning,

test $X.XX release, share, in you reported non-regulated of primarily $X.XX in charge segments. a GAAP asset by to This $X.XX allowance oil second valuation tax state gas per share ceiling charge deferred loss a related impairment from driven a quarter. as properties a was last our per and as a As year's $X.XX per decrease well share our our tied share on read per to of we

investments, plan a benefit for charges of $X.XX reported of lower these oil quarter. we and small unrealized utility The adjusting prices gas loss our certain per of This and and gathering After prior our another gas the year. decrease the the from than commodity Supply was for operating production, and of offset realized results production on impact natural the more $X.XX higher proceeding. settlement in weather Seneca our impact Corporation warmer the at of throughput successful on segment rate share

release please does for so drivers, describing good earnings a The job all that refer other the more details. to of

recorded Turning in we of excludes ceiling as important $X.XX guidance impacting per are valuation note midpoint. the items a updated our quarter expect range impairment we the $X.XX XXXX $X.XX comparability, and to revising our including quarters. our impairments allowance to It's well earnings future decrease test the guidance share, as forecast, at that coming a to this representing fiscal to

Our curtailments. impact any assume of production price-related forecast does also not future

made from we've quarter, incorporating addition In changes to other second our results assumptions. to the

MMBtu remainder $X.XX prices per natural $X.XX NYMEX pricing for We spot of averages assume the continue MMBtu project gas the and year. to Appalachian averaged now per

barrel from oil average made On our We've WTI to we've months. six differential Midway at with Sunset reductions California to per our for XXX% the assumed to the oil forecast also remaining reduced side, steeper $XX.X XX%.

future of rate, ceiling relates test does it our this impact charges. guidance not but impairment to incorporate DD&A current the reflects any test recorded the unit ceiling quarter, Seneca's As per

this revise impairments. record and additional each We we rate quarter will when if

related two this from changes There other are remainder be the extrapolated out to for quarter that need items the to of year.

rate million approximately will case segment. the higher supply settlement for revenues the $XXX storage revenues fiscal our of year. We assume to forecasted the leading in pipeline be now is and First,

as not part will bottom line to settlement. the all through rates higher agreed this to also we the However, depreciation as flow of

expect underlying depreciation this quarter the With expense in approximately depreciation to $X.X to our higher rates, segment we our million increase prior now forecast. relative per

a the that allowance also state valuation led the it assessment drive tax of rate. as to higher deferred to Lastly, tax relates a assets this guidance, quarter will effective

to as during credits the those and are are same Additional the on test subject sheet. state that the balance evidentiary tax year NOLs generated

Given benefit not which our will the the newly will these utilization the the supports This increase we evidence XX% the generated we and year. of in benefits. record of expect of to as credits be able be today, full now evidence lead an effective until to NOLs tax for rate, to tax

on impact touch the were effects the decrease briefly in prices, me major oil COVID-XX. of quarter. Let Outside no during of the there

and As we expect segment expense. it relates utility look impact operating our however, uncollectible forward, modest costs a we in as to

the this weather in principal in slowdown driver the operating side, is year ramping expense the breaks. construction up as at the On typically which is activity, point the

capital in the labor next furloughing customer-facing But work our shifts any employees, from expensed be activities to workforce costs months. are the not expecting to operating in more months in of we the and work Our the commitment capital-related our over slowdown summer. given winter several to expense

addition, projecting unemployment In of as and expenses are a uncollectible we result temporary higher collections. in larger customer help the

expense, that indicate might While experienced significantly forecasting larger-than-normal any we we higher are not customer discernible have in trend payments write-off. uncollectible

of payment to million $XX respect With the $XXX midpoint to We of quarters. trends coming $XXX our monitor to new to capital, a reducing are by will closely range continue range we million capital customer million. guidance over the

timing the million on driving three certain earnings capital and of as continued and segment, on continue focus control modernization lower from impact the utility line expect with planned cost capital of capital While for on at projections the in COVID-XX result are the to a other work the lower roughly each flat customer-facing spending to is year, With funds be to updated for projects. revised our $XX segments other. and the we pipeline our operations decrease expenditures year

our the million started on available liquidity financing for use $XXX of expect need of with plan and we dividend, revolving our year. financing. full first a the we facility, year as Adding under of million to We the that credit approximately $XXX nearly source

the for I'll With close line that, operator and ask open to questions. the

Operator

Gabelli [Operator you. from comes question Tim the Instructions] Winter Thank Your of Funds. line first with

Your open. line is

Tim Winter

maybe think talk if could How a I the Good the gas about the about given more some as I wondering release, gentlemen. dividend? and the about lower write-offs, you we morning, dividend bit talking was about you guys oil prices into, think you do in little go press guidance. how think you're and production

Dave Bauer

Yes. the regulated Tim, we light generally in dividend view our of earnings.

pipeline, look years in not you expecting increase if we're So there, Empire at modernization the system. utility of and in the continued and the our to because of the we're like North earnings an come actually projects

regulated in and, feel the dividend So to the that future, will I it. about the earnings good there today cover be

Tim Winter

see the balance impact future Do you from can now the write-offs far expect sheet? an what as in as of you ratio on much the equity

Dave Bauer

into low to the, XXs potentially, we to drop dependent and the impairments all continued going expect if up component prices big end Well, it, be pricing, Yes. being. commodity call on that's the how dependent will but which on we'd have equity impairments, be mid-

Tim Winter

thank Okay, guys. you

Operator

Sighinolfi question next the Your from Jefferies. line Chris comes with of

Your line is open.

Chris Sighinolfi

Good morning, thanks everyone. couple All have Thanks, I the right. of update. Dave. guys, do for questions, a

at subsequent which different faces I at think think could backwardation contemplate pivot over the first, It XXXX $X.XX, pricing you've you'd but talked about planned saw now of about John, If a I know was I a certain I historically price Seneca follow-on a I points fiscal strip, your year. look then. it's in you've John. activity. reaccelerating talked winter. then if obviously, think I deceleration activity we to just environment

and call dynamics completion What FMXXX in drilling the this means? I'm guess just the about backwardation activity? What means? perhaps thinking change last I that you're the what side how wondering pricing of between a resumption means? capacity both So, on call And and

John McGinnis

Yes. talking Chris. asked Dave It's Thanks, because about funny that bit been I've it. a you to quite

see hedges level. out multiple in range a 'XX back to price But to now, to that fiscal certainly we But it. would to $X.XX plus see before, we least we to I about the if 'XX. we've increased consider said around order rig, in now, get begin have around in DUCs activity years another currently. able As prices support we acceptable in years have don't are rig over that at also think that the that XX fiscal lock $X.XX or starts to adding in be Right we certainly, right conversation we just there; not range. But a have

And again, we completions the where some in those accelerate certainly as next and we're into years, if comfortable a get of going out year prices can to well. point

Chris Sighinolfi

And when said I earlier and it release think call, the you you helpful. April. that's I quarter. in mentioned X.X in And was the think Okay, think the Bcf in on two I had last you mentioned curtailments,

spread is a Just area particular that Or your of that curious, is development? across the acreage? concentrated in

John McGinnis

curtailments, Most better Tioga. CRV EDA, just there. a Chris, Yes. curtailments are of both It's the and Lycoming little bit the has pricing. in Typically, our area been less the in

Chris Sighinolfi

settlement was Okay. about expectation I which just thought Is and to in it I'm to I'll for up be? the the prior the one that Dave, better you that curious, sort you back hop questions. the queue would I than it maybe to pipeline was settlement. And that your Obviously, going you saw and couple little based bit on I outcome you up safe year talk a of that? versus assume had revenue, pipeline is guidance. attributed just the results go. strong others But quarter, in Supply the with more had have on Corp. mentioned ask a more then finish Could

Dave Bauer

the was we counted was area but increase range. towards likely range past when rates the the that you I that the of warranted. environment maybe expected and hadn't New necessarily in The consider parties higher on, the an the end would have the lives convince outcomes, to staff Yes. the say FERC using but and in of depreciation rates update, overall York and within we it in was in able we're been increase

Chris Sighinolfi

for All guys. a right, time the lot thanks

Operator

Instructions] with Your James. [Operator from next Raymond Loy line comes the question of Gordon

open. is line Your

Gordon Loy

get some prices obviously, Good morning current wells the of want in for XX I I'm see that just about for strip, a what I a before of and are more that. all know taking the Seneca time just I per it that's that is cash guess little optimistic I that, my that But for the on than will a decent kind I lower idea I Appalachia setting? guess, costs to be assuming was Slide had questions. be ago. $X.XX and are Mcfe, assumption? is would thresholds thanks Appalachia the an than But

Dave Bauer

absolutely. earnings that, curtail we something $X the to. into I to consolidated that. don't on much exactly we too prices get But to like positive we'll on essentially, where Yes, price And in what range. to I detail want could that's and don't essentially, on basis, just to focus generate a continue a speak beyond

Gordon Loy

XXs. activity, the mostly Marcellus, those mid-XXs in higher upper of helpful. back was but declines that's in upper while affects follow-up little I mentioned teens had the the of kind base think the and are that an a where declines a in And idea trending? guys guys the you Marcellus updated to is have decline And the in my guess Utica probably it, Got do then you I this base were with range your

Dave Bauer

Yes.

are at base year, around declines last overall, you look when year into in XX% Pennsylvania. going base Our declines we're this

Gordon Loy

you. helpful. Thank That's

Operator

Howard Stewart from of the question Weil. next Your Holly comes Scotia with line

open. is line Your

Holly Stewart

for Maybe, X-rig just to could Good question, bit a of a we of just XXXX. a kind the sort that morning, just use Is get good a a morning. gentlemen. trying little there to throughout program general XXXX? that in Chris' John, follow-up on rule yes, sense for thumb program Karen, of

John McGinnis

expensive and pull attention think I It's like see Well, to fiscal hold the of $X.XX, table. add and terms to and can very rigs recovery add the I but gets a in volumes out one-rig recovery told we hedge, beyond 'XX to Chris, effectively our case. definitely we're that off we and in years, going rigs until

I we continuity to before, of continued we rigs. dropping don't so just doing And some see I adding want before start start and

Holly Stewart

Yes.

trying there number just a sense get So, a was a of I if available? kind sort of was capital one-rig to of just

John McGinnis

there's Yes. roughly for year, for our next going $XXX or the, continuing some range. little It's one-rig or million be bit minus that minus. to That's plus but what million case guidance tough I'd looking $XXX at other be because more what be capital it's projects to but say, to than speak CapEx me going a a in is plus to we're with, will we'll that be

Holly Stewart

year, And the helpful. that's are just around activity California Okay, thoughts of oil given where prices? kind we next then, just maybe on

John McGinnis

be defer for We they they already very Yes. very If where stay activity California production year. prices don't are, program fortunate that We've low. development portfolio, our oil prices that. stay If we California are, has drilled this our will rates. would where we're in very our low decline to have

capital And program can defer in that our something out so over or there's a year, time. modest can but increase we if it's recover a push for decline, we

Holly Stewart

quarters? kind happened quarter that's you're And sort and in previously of through then XXXX. could result? that just provide, maybe fiscal given the as the that know the then there update I'm the the given any throughout some higher what of a seeing And the Okay, color for the right Is that next rate second cadence to to shut-ins you'd of few now you exit on of helpful. think cadence production just April? I quarters trying

John McGinnis

flat. couple Holly, to they the it look but pretty are right Yes, way quarters, of pretty maybe bit we next should flat little really, now, the be modestly, lower, a at

Holly Stewart

you. Thank helpful. that's Okay,

John McGinnis

Holly. you, Thank

Operator

of comes from with Levine Citi. the Your next Ryan question line

open. is line Your

Ryan Levine

you that? bad how to the and Utility to pursuing get in regulatory you're Good segment Can the mechanism on recovery expense speak morning. debt

Dave Bauer

mechanism, don't have on per uncollectible. tracking a regulatory se, We

and their tracker true per... for somewhat have impact impact in there tracking isn't of a New on But a of We mechanism, the gas York uncollectibles. prices

Ryan Levine

Utility load the end? what quarter your you your of since expectations seeing in for business? the in are are And then, what terms dynamics segment Okay. And

Dave Bauer

Yes. I been that. mean interesting it's in

pretty side, Pennsylvania. On the New cold a in York Western residential April was it and Northwestern

on have side. the our residential been up So volumes actually

the side, volumes. fall seen we in XX% it, the On large industrial to call range X% on have off, a

put industrial a basis, so on ahead. margin impact overall company; XX% the months not in see margin At quarter you we'll if about the that least perspective, of an as at point, So rest dramatic the the of on go is total utility. we through and the of this

Ryan Levine

also you're type then It in you And reduce the the the can to profile? managing terms of personnel comment segment? initiatives quarter. how Do any like expense you profile up in ticked in looks of that expense costs envisioning

Dave Bauer

Well, respect do costs. we run, part, and covering and all With basic naturally discretionary that working. charging down. like to to least and of other generally managing costs, So a drift And material to those we've to are types in, personnel our with lockdown, rates come business got right? place the at of the have travel tend purchases collecting we're shelter obviously, expenses things in are tend people

So managing as our essential our we're hasn't a the certainly business right, change, cost an service. excuse wholesale me, had but managing expenses, to

Ryan Levine

from all That's Thank me. you.

Operator

comes Your line Jefferies. Sighinolfi from with of next question the Chris

Your line open. is

Chris Sighinolfi

might a thoughts do. to also Sespe, development you be sold to of oil Seneca. to and I dislocations given years and in might Everyone, investments activities John, volume? of you your feeling But you the there I give I continue wanted peers interest the the filling M&A confidence ago, had I are any your you as up FXXX follow-ups, couple dated if get some a I curve the thoughts and continue activities. just the aside the right had example, of all pricing California stress, some that prices for appreciate doesn't on have mentioned on on of see that about I Are interest you properties alternatively if be ramp side, gas think think. were backward at

John McGinnis

California. in Let's start

been to day. interested We sort out are our that of able between And are Coalinga, adding all that bolt-ons in bring California XXN, examples barrels into definitely the producing a we've Pioneer those, are of properties they're there. to XXX,XXX fold.

our So they've there. been production to great out adds profile

for period We Oil only very has continue It's to look. a time. been short tough. down of

So keeping some bit be hesitancy a on more going but get And to forward a out assets. I eye going to, to certainly an to love agree there's we that could think be anything there. very with able think I we're on we'd quickly what's to move

before. Pennsylvania, that. position moving both about and looking with are midstream honestly, that in this current and piece associated really our talked want our to And expand always piece EDA. we for We're the opportunities operations, to the near those upstream we've that the And specifically,

to to will continue where know going that's work we but very we So that, and continue answer, do that we big is forward. a I that are.

Chris Sighinolfi

no helpful Well, of no, had say a still you'd get it's you sense just if interest, to so.

know and I it's So seller. willing that opportunities come along but it a takes

struggles. the of one been that's So

John McGinnis

Absolutely.

Chris Sighinolfi

if after, about of that they earlier a But written book period night's pertains release an asset. leverage? multiple annual had your about Seneca's of those specifically for of curious your ramification to of or was I annual more there and multiple day there's structure, having loss. you restrictions I just capacity to borrowings that, regard in deferred with affecting it periods losses last some the was on were items And one incremental position. on years debt think I was equity pertain I the in what any write-downs, capitalization Tim back Karen, the doing losses incremental what company you given know with guess either do Yes. and to it asked you potentially tax the total as to think covenant I that

just reside? debt-to-cap, are remind covenants predicated me you can pertains I where to those it the on the any remind as maybe you And me of think just that, can where

Karen Camiolo

be two coverage the is think we issue have interest XX times indenture be debt. the under in you able I one where to to talking long-term restriction be a to order So, at our incremental might about

test ceiling impairments based that calculation it's operating the a So book book on definitely income. into get because it's

back closed that, the period to in XXXX, we long-term certainly we kind impairments. were test So said of of time. not we saw for incremental these expecting going be of issuing magnitude ceiling They're debt a out having when are XXXX that

that, there that, expecting term, So having on certainly. near that said in we're the could some but impact be not

if your question. know that don't I So answers

Chris Sighinolfi

answers It to little yes, remember but something being it was what some that quite confused to, frankly, I what was, was a indenture was you're right referencing. referring I time about I I bond ago. as

as did reduce get to guess, So incorporate as going which strip it the XXXX, period it triggers raise forward I I ceiling stay this able as out in on look not is, prices, is we what back a long-term guess which down. tests, of XX-month we my what on new debt? the in and to be if roll question And you're any you'd time

Karen Camiolo

But depends a incremental long to two to next quarter prices And on that project maybe it's but hedges. expect have like mean, continue So, or put in those fiscal there's that impact, fiscal magnitude how if able the year. year, in been some running have impact. this we've if could it I not out we'd said, an them, up, of any and we we of be you are kind

expecting. we're on our change that is what test So that the impairments could ceiling forecast

until of that not time. we for are under upcoming We of any period have, able refinance that's if have maturity. needs long not don't an it's for So a period, we're December and XXXX. that even we an out, And it's extended not provident, to refinancing

couple be we're we this something closed we to of of of if quarters have do mean, if felt out the next needed to. remainder a I And do year fiscal in we anticipating year, still to

Chris Sighinolfi

Yes, sure. for

had loomed Okay. the remembering lose there of want on up I that them, the couple that color. was certain all to didn't ago, and appreciate out I that were sight a I color. so years appreciate I cropped there things

Dave Bauer

Yes.

the way positive works on is show a you basis, XX-month back look basically the and First, have you earnings. covenant trailing to GAAP

So quickly. as like that if large, you But and for out of see an they the through like quarter modest, test this in charges if the were one XXXX may roll time, ceiling can saw and off period us extended they're they the were kick roll time. in pretty future, XXXX, we really more

Chris Sighinolfi

everyone. helpful. Okay, Thanks, that's very

Operator

turn call now to the back will our Ken concludes for over This session. Webster question-and-answer closing I remarks.

Ken Webster

To of everyone us business at today. number And Friday, visit p.m. run We'd This thank on Amy. and our A Relations telephone, our both website time XXXXXXX. and by available website by call Time the a investor.nationalfuelgas.com. for to XXXX-XXX-XXXX and like through with the Investor X. taking be X:XX goodbye. access ID Thank and will today. will our conference on replay be you, you, Thank for please conference at enter May online, the of access close to concludes Eastern call to call approximately telephone this replay

Operator

gentlemen, this for and today's concludes Thank you Ladies participating. conference.

You disconnect. may now

National Fuel Gas (NFG) 3 May 202020 Q2 Earnings call transcript