NFG - Earnings call transcript Q3 2021 | National Fuel Gas Company

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Operator

Good day and thank you for standing by and welcome to the Q3 2021 National Fuel Gas Company Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. Instructions]. [Operator like Webster, conference Director now speaker to hand Ken today, of to would over the your I Investor Relations. ahead. go Please

Ken Webster

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

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

projections evening's only in may beliefs, of faith reasonable While good are have speak expectations, results refer they which basis, believed With actual National statements are on as last Fuel's are These to made Risk turn specific of to that, date a for the Dave you materially. and I'll Factors. it differ made, and may a certain over listing to earnings Bauer. and release

Dave Bauer

morning, Good Ken. Thanks, everyone.

we continues program. with That and from over year's production Upstream strong XXXX up to and in nearly our National drilling grew EBITDA first acquisition nearly XX% better on positive production one was operating higher with costs strength both our operations. and acquisition the Fuel year. last Upstream in prices, The of impress half quarter third they established Gathering than and along The great increase a Midstream with quarter, expected. another the its continuing the businesses growth production, with for XX% momentum during Seneca of commodity had combining the

more will decided the fully gas the completion to This natural valuable increased winter X at connectivity the Zone South Leidy capacity in Leidy we've Seneca. around utilize start South, date along from and winter with run premiums in up of allow move confidence market. some to up the the With online prices, us for near-term our Transco some capture

forward guidance, spending a expect we of to likely As we few Seneca's now end aren't to our months. XXXX while it's the the raising a will be upper previous capital them And of for high-end range. closer result, shift

a a time. the electrical complete, At a The Pipeline and will Justin almost was business everything been despite a and the schedule call. two on the I couple the a construction has by July. will later such date. XX% remains nearly is weeks is the XX% impressed project well of took a At in-service tour the a and period the ground. is this begin. compressor with have of work month FMXXX Truly all. automation are in really on have full operations pipeline underway, pipe mechanical of nearing in once rainy for on point, job storage construction update great right and completion going construction stations the team commissioning contractors of been of calendar Seneca's short site ago accomplished well has what away and XXXX our late on strung really

and to and the example throughput. business our production allow cash for positions integrated approach the to perfect will of when by Transco's project sustainable higher is deliver solid power free project fastly companion in regulated said $XX the growth Fuel combined past, National increases South great E&P I've of Seneca revenues Fuel, Leidy As pipelines a near-term on gathering and volumes The this with million flow. a our for National on and it year

the system our XXXX to tracking little Earlier our on replacement team been XXX emissions program filed methane to levels. goes an in makes year, system. of to with this underway. mechanism a prior emissions that up is two-thirds replace division, our on has pipeline. years, the way we of pipe for to driver right New delivery Consistent from XX% extension miles to reduction well program is reducing a is goal And track long our the older our utility, Turning mark. than compared which York system program. of To-date, of summer hit construction in modernization more our a Replacing older our our

system real more to our us lower the It's to to on spending. without associated rate allows annual costs make emissions As file our great we're you recall, recover all a program it near reliable modernization able with time, that cases. need and that mechanism in and the

We expect fiscal fourth act quarter. during on will the our New this petition York Commission

Looking our strength fiscal the of project, a for to the our and on preliminary next XXXX increase from expected per FMXXX $X.XX to is to XXXX $X.XX year XX% guidance earnings. share mid-point

free cash our balance flow, of which excess addition $XXX continue payments well $XXX is about improve pricing In grade expect at well expected investment NYMEX which in our million, of sheet. and positions million us in to we dividend to

the followed those a designed price volatility mitigate preceding program be know returns over fiscal for to who to in layer and the our and We a to and upstream protect on XX% three and have while investments. between that typically of years. five hedging XX% year of at call us beginning program we a hedges disciplined For those is you gathering the have that issue we

is sales through program firm hedging a with of track combination on XXXX those fiscal right financial targets instruments. and fiscal Our

on have of Appalachian three XXXX We fiscal roughly hedges our quarters expected production.

know, gas significant cash change by earnings by considerable million So Switching and since emissions $XX upside $X.XX all about XXXX. prices flows a about share. natural we're not of per $X.XX natural greenhouse reductions as gears, Every we prices. driver impact We ahead. the in realized has been biggest gas have well still gas from if

appreciate those and avenues the to obvious Taking continue textbook commentary and to Coast everything liability benefits, resilience, a particularly every practical. our add benefits. and gas, electrify so bans. past of systems is importance recognize infrastructure. and consistently and system Notwithstanding gas policymakers, have fuel is year of resilience out. delivery electric year Washington an natural some and winter to rationale Albany, our of affordability. largely their and are in The But including approach natural in the natural doubt, addition, safe resilience. consumers gas restrict which compared customers a greater system nor anti-fossil these In without we its the on consumers utility proved to access neither cases And example spite in And related this aboveground from pursuing with ensures was reliability, underground, outright

thousands windmills and of paid electrify carbon to natural when To delivery heating particularly that efficiency solar low of technologies it aggressive and country of the mix tens makes natural and the energy hydrogen. would emissions. be you largely for. like emissions panels of favor millions gas the that gas through already unlike is of addition little exists In a measures, load, reducing sense, reduction needed abandon heating in and I'm hybrid consider renewable can targets be fuels met all system

then energy country. reliable, approach So affordable is if have we're to necessary, the in this above all of

will start published annual our to We ESG before you enhance a edition on I Before give to which close, report important next be up second build efforts was look our like early Last Responsibility to in Report, it ways I month. the related on of to heads you year. this great I'd first disclosures. year's Corporate our give several -- a

We're emissions And we'll TCFD we targets. addition and standards include financial full Scope gas be framework. very think to importantly, realistic establish force X and task accounting emissions. under data methane emissions X disclosures and to disclosures climate-related or reporting to credible include greenhouse this using In methane COX sustainability due we'll and are also reduction the disclosures what our also on framework, board the under enhancing

capacity adds to reducing committed FMXXX at of the available. continue that the stability great utility I'll Now, budget. becomes the profile time, Construction we emissions position And all the lastly, send responsive in diversity you is Seneca's for. we're shareholders team high largest disclosure great new exciting to When to Overall, big you on time and is operations. our Fuel. business is financial of to will that's asked to turn all-time bring production deliver to to history free that, a on had it's our I'd disclosures National remain together, requests cash it Leidy while company's closing, South the as an like time framework. of this and in the for strength. is our our same our increase an the reality. our made expanding over it on and a thank Justin. the it With National report a EOX shareholders. pipeline a our earnings flow and to to significant Fuel using All In

Justin Loweth

an third from results our Thanks, our with We driven Dave, which Tioga last XX% a County slightly ahead Seneca by and in acquisition, XX.X year, everyone. operational closed had development solid good XXXX, our strong Bcfe results late increase increased combined with almost of Appalachian from from morning, volumes expectations. program. quarter July produced

a of to per to unit driven Per versus expense. dropping a significant year the scale. operating our increased continue $X.XX prior We by benefits see per decrease G&A our cash expenses Mcfe $X.XX the Mcfe unit year-over-year in per

Similar Tioga commencement activity to infrastructure, XX During our gathering seven existing WDA the us the utilize E&P Tioga of enhances EDA. County Notably over pad the return be and to another will pads the five new trip. drilled in the we from and in our roads, which significantly WDA on the our and the years, It's included few pad wells, consolidated our first acquisition. in past quarter, allows returns. a this drilling gathering

where will the We of of XX,XXX XX generating similar link operational nature acquired advantage of and have efficiencies. outstanding footprint, returns. can pads Wells exceed capital feet continued the treated acreage Further success, within believe we we most expect lateral given take our at additional Utica we titles this approximately continuous acreage

ramp remainder year, with were to the South we on of track pricing. plans winter up premium the and our to production fill capture Leidy For

This in of in our quarters most end the the of of first and active and current with process year half to the drive production towards first a continue of the have XXXX. have completion We will crews, throughout our the we production fiscal now fiscal of expect of accelerating completion year. our begun coming half cadence next new is which two phase, level coming online activity our

expect fiscal line turn As modestly Western one we Area. within of we plan a Development pad XXXX. our sequential production operated in quarter, lower Later this result, to in QX

weeks, online well County. holds XX% few Lycoming a pad next expect working pad. the production, in in to this non-operated Additionally, interest in pad Seneca see we for six

system, company. Fuel's sister for of production driving XXX% our throughput growth will through the However, National wholly-owned flow and revenues gathering

XXXX. fiscal to Moving

plan is operations on right Our track.

another and expect or during the year. XX year to of As half we about balance turn over the wells XX of the line in so wells first fiscal the

we our As a quarter-over-quarter with year expect out production of fourth the growth the production sequential quarter. result, quarters in first in three leveling

rigs which along fiscal plans prior our projected an million our base, is operate expectations. completion increase throughout to with increased Our two with to capital our XXXX, drive expenditures $XX by drilling in consistent is year-over-year,

year, Looking and activity we as beyond mode. we low our to to maintenance growth decrease to next move trend expect levels a capital downward

in On minimizing front, Appalachian to production spot XXXX approximately contracts in of volumes, fiscal our protected With production fiscal XXXX. current XX% pricing. the marketing for place our Seneca's expected sales exposure is invasive well

exports discipline, expected hedges in natural capital year remaining place the Appalachian With setup gas five-year LNG all-time both very of and and prices. our Appalachian quarters last have storage for currently approximately Overall, producers, remains inventories. below constructive Mexico also highs, and exercising levels three We near production. on

north the constraint caveat for cash on the capital to XXXX, will will XXXX flow per $X producers be of their this with focus over current will MMBtu coming free production our and maintenance levels. and fiscal $X.XX However, months of whether and fiscal prices generation continue for whether stick

flow. At current found will to attractive additional program new to hold. Seneca, to we quarter and approach expect free hedges that significant optimistic, generate continue our over adhere management, layering coming methodical cautiously I'm by quarters. prices, our While will returns cash longstanding to At in continue risk the discipline

in existing will growth beyond to into ability prices. the marketing maintenance cash out mode strong focused our to sales free be expects acquire realized Absent utilizing portfolio. into activity fully on towards capacity that geared flow. our XXXX, firm or diverse Seneca fiscal additional long-term generating Looking production result level sustainable to and a would firm low significant shift enter

to Moving California.

generating activity and and remain new year, to expect declines, levels We our remain million opportunities permits. regulatory levels. cash we'll prices tempered said, or to the moderating oil to obtain million environment current challenging extent for activity at by the our limited flow $XX timeline invest a to $XX That substantial to by to ways the increase look increase production free our lengthy

is our plant making be at progress to Sunset side, in renewable Midway completed field this our new on we're South the year. excellent On expected which California, solar later

We fiscal XXXX. at our forward an moving additional solar in Hills to are production South complete also which we field, on plant Lost expect

With they standard XX% grid fuel Upon of the these also ability credits power to emissions. but California and our of carbon not completion these projects generate projects with power in will California low consumption, economic, only met our approximately highly are reduce needs solar. be reduced

Seneca in sustainability And the to month, make real by emissions that process generated last just The these we on emissions study, initiatives results high these completion profile comprehensive long-term continue types supporting also our time field technologies, Last our provide in commenced We completion six-well we a will week, equipment we technology. of that Appalachia. select aligns strides EDA comparative are evaluating quality completing considerable sustainability e-frac data in of trials of efforts goals. to pad announced with with the equipment. using various in-field of our the a

the sourced frameworks these initiatives one responsibly to over the gas coming more various and Additionally, move months. also actively of are toward we expect or evaluating

carbon best-in-class ESG. Karen. leader I'll the a it intensity to well-positioned based in As And to turn that, we lowest over operator are with the an be in United upstream States, and shield

Karen Camiolo

operating non-qualified adjusting good unrealized were you, plan GAAP our $X.XX drivers investments, morning, release explained $X.XX the an Fuel’s for Last Thank and share per earnings per night's National Justin, were results share. and benefit on quarter. the major quarter third everyone. gain after for

Starting we're range to for share. increasing fiscal per our So earnings a guidance updates our $X.XX tightening year. I'll with guidance year initial of focus and the of on the remainder to for XXXX, our and projections $X.XX next

strengthening natural the to prices of third gas from we've the the incorporated addition quarter, significant remainder In of for results the strong the year.

into Moving XXXX. fiscal

increase in earnings with guidance main three to to XX% $X.XX a a projecting to earnings range drivers. in in XXXX be mid-point down at the At increase are can boiled share. of per We the the our preliminary $X.XX relative high-level, fiscal

and the The expansion project revenues. upstream tied year per Storage to $XX the first related of FMXXX are modernization development and with million direct Starting of and the will integrated midstream two incremental segment, Pipeline project. approximately benefit to the first be

this operating $XX calendar Given line, of $XX flow the portion we of revenue XXXX. project A approximately bottom million be and fiscal [indiscernible] during offset late will this the large expect through to million the depreciation expense. associated partially revenue costs from to but will by

expect In the that addition, FMXXX XXXX during in AFUDC fiscal was accrued in period. construction we a decrease

related Seneca next increase throughput natural Next, also growing Bcfe. with gas production gathering this will a driving XXXX Seneca’s expansion will higher production. to key business, with XXX revenue. Leidy is along companion to benefit for and provide range fiscal South outlet for year its X% nearly our expected project This XXX relative

vast bottom expected associated of the amount modest line. revenue incremental gathering to a majority is will this flow segment there through of While expense, the

driver price major third expectations. higher commodity The is

XXXX, fiscal period. per winter with $X.XX MMBtu of assuming $X.XX in months, the For and in prices we're summer $X.XX spot

we're On the oil assuming $XX barrel. per side,

As Dave in impact well for have of of the next into our year. even earnings mentioned, production, going year, base the with could reference, changes hedges hedged we're for we but pricing given level

is by per oil prices to in per expected in a $X.XX $X share. share, change gas a reference, $X.XX $X.XX change For natural impact earnings by

on of than are than utility first -- In few other I'll our XX% this three drivers the normal about our for averaged the weather. smaller year, warmer year-over-year, those around guidance assumptions normal While quarters warmer major touch we a range.

O&M normal million as we XXXX. largely to be to units not costs, XXXX. labor expect Storage approximately higher to a margins be fiscal higher and operating benefit will expected inflationary in recur in XXXX, O&M approximately principally and to weather This fiscal fiscal In in expect X% by year-over-year. to Outside expense, Pipeline O&M XXXX cost million of expense FMXXX this favorable which other fiscal Pennsylvania we a items to X% compared normal X% flat will by $X result, we be anticipate versus normalization to related increases personnel each will and This our was principally item to we're bargaining a a increases in our year. and by related X% along to with For business, fiscal weather relatively by modest one-time business by driven the offset increase with that have to to particularly don't wage $XX that of year-over-year, expenses jurisdiction we underlying this see we collective increase driven forecasting clause. return where XXXX negotiated pre-higher

Lastly, are next our ability to activities guidance enhanced to effective lower modestly standpoint, year our stem to XXXX environment advantage of These year. California to XXXX. rate at upon and pricing in related based able low from this at take facilities oil a historical our the tax expect we're tax XX%, of a for be credit credits given recovery to advantage from XX% prices expecting to take oil we fiscal calendar next available credits

XXXX. prices again where this expect However, to today out oil we for are fiscal phase

early year, we're $XXX driven in Turning XXXX. decrease completion to by relative of This the year. the our roughly plans is to projecting for XX% fiscal a million capital next FMXXX the project

spending modestly planning expect reduction been that would somewhat for we'd associated and year. higher over We gathering upstream be past offset that by the

to slightly we sale consider transportation drilling this earnings you of of expect when to our advance largely well, flow within live respect in Seneca on reminder, discussed at of changed timber the our position started hand an new higher at June. January, the in and of a to mid-point modest this a increase increase guidance expect our end amount expected and cash of hasn't the proceeds million as we've the in added rig updated higher With year the cash phase with see cash dividend our This as of for year. previously, As capacity. fall year $XXX the and flows from second We a in offset completion we by had our cash spending payments. roughly expected borrowings short-term we is

We as on back project. in FMXXX position expect to a the spend borrowing be we to continue

exceed than funds expect nearly excess price as As as NYMEX we look $XXX assuming $XXX leave and into million. dividend our positioning covers natural fiscal fiscal more roughly XXXX, expected to to $X.XX of well This a to expenditures we operations from by gas million XXXX. a capital going cash us flow

to debt While our next that for With in flexibility balance have to look to shareholders. is deploy ask and trend open lower fiscal operator improvement EBITDA I'll year and higher leverage the our along credit further shareholders, grade of leverage metrics. have expect close a flow course our deploy cash cash to combination to beyond and we this free will With sustainable whether increased flows growth the improvement would over creative seek the be capital, we most valued significant X.X for or questions. stepped We good returning trajectory, lead investments times that sheet we line making to the spot, level. to will manner capital in that, cash beyond with to investment already in continued EBITDA the towards with XXXX to of

Operator

Thank [Operator you. Instructions].

coming first Stewart. line our of the have question We from Holly

line open. is Your

Holly Stewart

which where are detailed on prices. Karen flow some million Dave that's either since or we'll behind units the cash Can $XXX we're now. trending the business total? commodity the at you kind contributing Maybe that, guidance, what different assumptions different on free that that of to the just target with right details of of that Maybe appreciate give just meaning start

Karen Camiolo

Yes.

So -- Holly, yes. it's

maybe and stuff, split to want our regulated you regulated on between about regulated non-regulated the side XX% on the the obviously XX% If on and up side. non-regulated side,

Does that's is pretty Our utility, help? than storage bigger much and amount the that a breakdown. pipeline our but contributing

Holly Stewart

Got Yes, thanks. it.

Okay.

and here it If see should is you bringing up kind EDA? project, that between going split of WDA forward production think sort -- that Leidy South the of of on we with ramp how

Dave Bauer

Holly, out if best that you say asking you you're second amount while be a cut It fair might it again to don't question. mind.

Holly Stewart

Okay. that better? Is

Justin Loweth

you. Much Thank better.

Dave Bauer

Yes.

Holly Stewart

Okay.

Sorry about that.

Dave Bauer

All right. Yes.

Holly Stewart

on bringing is online Leidy just Justin, pipeline. that on the the and with South question -- volume

and So that beyond, and split as kind XXXX about at how between we should think look of we WDA EDA?

Justin Loweth

Sure.

best our benefits with the the it of is areas. of major one of to able utilize we're all South really we've Leidy project So operating three production

EDA really So generally intend speaking, WDA. to pretty the we between and keep the balanced plan

that a significant just our Tioga of going little you areas, and weighted think WDA I bit both So Tioga development WDA. given inventory production three kind all between should we're utilizing maybe from more to other and Lycoming, that our in capacity be and the the versus expect

relatively of WDA. balanced that's So kind it, EDA, between how would I position best but

Holly Stewart

Okay.

Okay. you on working said That's ask think interest and a recall such a made you guys non-op I your prepared producer who helpful. that XX% pack. a in -- side. on about Maybe follow-up comment there Can the a on I remarks a your in but within you don't XXX% That change just I a talking was then working is past. split gathering is activity? the interest,

Justin Loweth

Sure.

another able area we this adjacent that, chunk all gather in our Alta run into Lycoming something and our and but to system, County. for agreement to the to that executed where there of gamble to a It's only not operating a leverage were outside a some So this for trout had then our the track of track to XXX as to existing we long to joint effectively area And this run have great gathering extends acreage acres worked well. extend project or with farmed gathering time, our that we're the area. where similarly we and is Seneca, extend which our system North and XXX the company, been to they And of operator. is working on have we trout we've East at

a synergy of together kind plus EQT for and a approach. good one relationship. to kind one, here great with to And one working three two type create of expect a it's we equals continue companies So

Holly Stewart

yes. Yes,

California, That's just then there. Okay. about to last one on the And for great. trying maybe talked one you me, production maintain

to do bolt-ons environment difficult. I historically as some more the you've been kind of continues to but well, think obviously become able

thinking for just picture, how Just wondering even to California. about Dave future maybe Seneca's bigger is in this you're

Dave Bauer

Sure.

One farm-in/acquire kind got So Coalinga, is areas we to North the years. a of that It over successfully things. wells just do in that And all Midway did South bit a and across I done. still development to three quite mean those permit takes a and several Midway areas. couple we've of last really long time get

a levels. navigate able we've process got Fortunately, two team our They three we're activity advance where out for in great were there. to out that years or planning

since the very opportunities been manages that making generated with We've other our California XXXX. but And kind division, tremendous to it for has that us flow. assets including a cash as and we time. quickly, think of It's just really the great thoughtful business the of about cycle and we we be do continue been continuing up how initiatives, developments. there approach differentiate ourselves for our we've So look out solar and about team across then some we'll doesn't kind of California we of can't kind day-to-day can we've have methodical autonomously. the means got free amount that. ramp to help generally, then of great a those develop operators We're longer-term to sustainability as historically investments And a

us. good how for we're been It's place approaching that's So that. a

Operator

[Operator Instructions].

line Umang from Choudhary Co. our with Goldman We the of coming question Sachs next have &

open. Your line is

Umang Choudhary

evaluating details I and bit more fiscal your run also the organic on which thoughts opportunities could hear to can course year. are inorganic RNG growth beyond are include opportunities the sustained allow I talk or expecting which about all thoughts wonder right quarterly would a if Appreciate projects and rate XXXX, next now, earnings any for any -- I through which of would consolidation? on XXXX appreciate love would the on -- would over

Dave Bauer

Sure.

and the maybe to the we're pipeline So continue grow into we're to still on I XXXX. to at pipeline I on to the from opportunities be going expansions side; both to think albeit the do think going our able utility have going rate regulated to grow are not we system. But that XXXX

year both As Empire the there's until we our range line it project or we of me, line, And we're you modest expansion And still of at the to capital this our a of utility. of another range, companies the that system. tend and we're That's that be decks. the ranges there I that'll the to And but of PA number you maybe the know, further North the be albeit At North, variety chasing that the programs Ohio, We to recall grow continue it file that time, the IR the have think excuse portion rate to we we project a order. going expansions that mid-single-digit that'll chasing on expect in goes more to South come. our last or a opportunities the on before line same teams a announced wait and along amount year. from modernization pipeline sloping. of include it's the But of low-single-digit number did opportunity have base, also there. -- a Empire upward opportunities from our we'll do in expansion announcing to quarters opportunities

a rate. Justin type low to the South on as we -- I'm we'll So maintenance be run, to on business. to filled, more confident low non-regulated grow growth say I mode -- of that Leidy have you And once the of long growth are we can the regulated count think moving side said mid, the single-digit side, ability low,

of question. your one was that part So

in answer good would service that find at about interested York our -- you environment. and asked It's also Pennsylvania RNG, in good I interesting. be Western when of New there's there we RNG And You the I story. ESG Northwestern and is look It's lot think farms. could yes. and whether for the business territory a dairy a

away, around the is So the be I'll fuel the are that go need pursuing. supported thing that and our something your risk by if considering. we've question. really credits is could we're and in is got I'm were sure that biggest it's development are do that the there our regulations premium appropriate a entire we arms there is fiat around bureaucratic to interested there. the for to just arms type on something trying new type honest to It low carbon opportunity based elements we and not of of that get investment other investment. fact But get that

written down. Sorry, should it have I

Umang Choudhary

question. I seeing about that That are also of or business further earnings which to improved can inorganic also long Sorry business? opportunities was that. looking grow a wanted you the part any the at the or about talk

Dave Bauer

I available, we've opportunities consolidation on at going side, within certainly the I as But Yes. we've if on pursue downstream looked they that the we going the there's specific in we're to our assets and midstream it's come company, market. looked chase. the to upstream it. comment basin. don't And And then to at. transactions yes, think mind additive for certainly across it's we become be that side likely that mean, to will the on that want that further -- assets And if it's

Umang Choudhary

Great. Thank you.

Dave Bauer

Okay.

Umang Choudhary

with, which hedges Appalachia, around was over mitigate And that how see things Appalachia beyond of risk evaluating two the one last do time? do that how my are And risk? business evolving we you to see like, kind today you to question

Justin Loweth

Sure.

my know in of prepared coming minimal you little amount a it, I into but we remarks, and a have -- our of as are only really that new talked some I'd capacity So on basin. the at I think where takeaway bit view

one. this it's So still which then few anticipating have that. other service. really has hurdles of of one the to we're FMXXX South, the is And of a large which calendar MDP, is towards the pleased portion obviously is quite such course, Leidy in a We're year put end before

our so is will Appalachia And the behavior speaking the -- somewhat the depend on largest and that be basis largely producers. view constrained house generally of the will

forecasted be seen But low to combination not times in is we to of a we're basis us sales basis growing risk. But maintenance maybe as growth successful this counterparty the create portfolio that that's purely of of be I incremental most out -- XXXX, modest a kind and AMA -- will continue with wider that absolutely One basin. would and price fiscal that, but have our or layers capacity than is diverse takeaway that'll for our to utilize different the And then longer-term, we be mitigates discipline producers through of typically we fixed if approach -- not do we the like production we've our continue We them extreme. be, we recently, they're what think ahead basis see then I long minimize business have we multi-year firm our we'll mode. And said where with so that insulating firm marketing if people in have firm dictate will at from differentials, at it's going holds fixed firm think can this whether production general around our work that that think work that's plan to lock-in for a grow, -- longer-term, and an we us, to I be thing least successful that through to continues behave, got capacity us wide, have to I who sales for and should as try sales largely That years prices. sales. we spot to the success but through the capital noted view going to risk. risk at where many XX% going marketing portfolio been our levels to

Operator

are call will closing now back There over further any turn Webster for comments. time. questions I the to at Thank Ken you. this no

Ken Webster

time thank conference at access on ID with replay and Friday, be Celine. be the the our and will call enter replay A goodbye. This XXXXXXX. will We'd visit today. of Investor website our taking business call for August and online, telephone call concludes today. close of this please telephone, available to like our to access XX. conference Thank by on by number the us for website you and everyone through and (XXXX) then To Thank afternoon investor.nationalfuelgas.com run Relations XXX-XXXX you, this to both

Operator

participating. call. you conference concludes today's This Thank for

You disconnect. may now

National Fuel Gas (NFG) 6 Aug 212021 Q3 Earnings call transcript