National Fuel issues $1B in new notes due 2030 and 2035

National Fuel Gas Co. (NYSE:NFG), a natural gas distribution company with a market capitalization of $6.6 billion, announced today the issuance of $1 billion in aggregate principal amount of notes, split evenly between 5.50% notes due 2030 and 5.95% notes due 2035.

The announcement was made through a filing with the Securities and Exchange Commission (SEC) dated today. According to InvestingPro data, the company currently maintains a total debt of $2.89 billion.

The company, headquartered in Williamsville, New York, detailed the terms of the notes issuance in an Officer’s Certificate dated today. The notes were offered and sold in accordance with an Underwriting Agreement dated February 4, 2025, involving BofA Securities, Inc., J.P. Morgan Securities LLC, and PNC Capital Markets LLC as representatives of several underwriters.

In the SEC filing, National Fuel also included the forms of the 2030 and 2035 notes, as well as legal opinions from Jones Day and Lowenstein Sandler LLP, which provided consent for the issuance.

This financial move comes as part of National Fuel’s broader efforts to secure long-term financing. The company has not disclosed specific plans for the use of the proceeds from these notes.

The issuance of these notes is expected to provide National Fuel with additional capital to support its ongoing operations and potential expansion initiatives. It is also indicative of the company’s ability to access capital markets for substantial funding.

The notes are registered on the New York Stock Exchange under the trading symbol NFG, aligning with the company’s common stock.

This SEC filing is based on a press release statement and provides investors with key information regarding National Fuel’s latest financial maneuver.

As with any investment in fixed-income securities, investors typically consider the creditworthiness of the issuer, and in this case, National Fuel’s established presence in the natural gas distribution industry may play a role in investment decisions.

The company has not made any statements regarding the impact of this financial activity on its long-term strategic goals or financial health. Investors and market watchers will likely monitor the performance of these notes and National Fuel’s subsequent financial reports for indications of the company’s stability and growth prospects.

In other recent news, National Fuel Gas Company reported strong Q1 fiscal 2025 earnings, with earnings per share (EPS) of $1.66, surpassing analyst expectations of $1.51. However, the company’s revenue fell short of forecasts, coming in at $549.48 million compared to the anticipated $616.87 million. Despite the revenue miss, the company raised its fiscal 2025 earnings guidance by 17%, projecting a range of $6.50 to $7.00 per share.

Additionally, National Fuel Gas announced it will redeem $950 million in notes earlier than their scheduled maturity dates, indicating a strategic move to manage its debt load. The redemption includes $450 million of 5.20% notes due in July 2025 and $500 million of 5.50% notes due in January 2026. Analysts’ reactions to these developments include discussions about potential mergers and acquisitions, particularly in regulated segments, and the possibility of future pipeline expansions. The company also reported a 6% increase in production, which may contribute to future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.