Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (167570)	6/14/2012 8:13:31 AM
From: Triffin	Read Replies (2) \| Respond to of 206085

NFG brings Marcellus gas to market .. ===== WILLIAMSVILLE, N.Y.--(BUSINESS WIRE)-- National Fuel Gas Midstream Corporation (“NFG Midstream”), a wholly owned subsidiary of National Fuel Gas Company ( NFG) (“National Fuel” or the “Company”) has announced that the Trout Run Gathering System (“Trout Run”), located in Lycoming County, Pa., was placed in service on May 30, 2012, and is delivering natural gas to an interconnect with Transcontinental Gas Pipe Line Company, LLC (“Transco”). Initial production is from four recently completed wells operated by Seneca Resources Corporation (“Seneca”), the wholly owned exploration and production subsidiary of National Fuel. NFG Midstream’s Trout Run system currently consists of approximately 25 miles of mostly 20-inch high-pressure pipeline, associated facilities and an interconnection with the Transco pipeline system. Trout Run is designed to serve Marcellus producers, anchored by Seneca, with natural gas transportation capacity in excess of 450 million cubic feet (“MMcf”) per day. Additional facilities and gathering lines will be constructed as throughput increases. As part of the completion of Trout Run, Seneca initiated production on a four-well pad located on its DCNR 100 tract in Lycoming County, Pa. As of June 11, 2012, these four wells are producing at a combined rate of approximately 45 MMcf per day of natural gas. Peak 24-hour production rates from these wells had a range of 10.1 to 15.7 MMcf per day. The wells were drilled with lateral lengths between 5,224 and 8,574 feet. A three-well pad is currently being completed and two Seneca-operated drilling rigs are active in the area. In addition to the four wells currently flowing into Trout Run, the tract has approximately 65 additional well locations. David F. Smith, Chairman and Chief Executive Officer of National Fuel, stated, “The completion of Trout Run in conjunction with initial production from Seneca’s Lycoming County wells is a testament to not only the Company’s integrated Appalachian development strategy, but also the hard work and dedication of our operational teams. The initial results from these wells confirm our belief that this acreage holds significant potential and will help drive production growth throughout the next several years. Additionally, with our two major gathering systems completed in Pennsylvania, we have built a foundation from which NFG Midstream can continue to expand its operations for not only Seneca, but other Appalachian producers as well.” National Fuel is an integrated energy company with $5.8 billion in assets comprised of the following four operating segments: Exploration and Production, Pipeline and Storage, Utility, and Energy Marketing. Additional information about National Fuel is available at www.nationalfuelgas.com or through its investor information service at 1-800-334-2188. ===== Triff ..

To: richardred who wrote (167570)	8/3/2012 7:47:16 AM
From: Dennis Roth	Read Replies (1) \| Respond to of 206085

National Fuel Gas Co (NFG) Quarter Beats; ‘13 Guidance Ahead of Expectations; Buy 3 August 2012 ¦ 10 pages ir.citi.com FQ3 Results — NFG reported EPS of $0.52 (incl. $0.02 PA impact fee), beating both our $0.45 estimate and the Street at $0.46. Better than expected results out of the Pipeline & Storage segment and Energy Marketing were able to offset lower than expected contribution from the Utility (see p.3). The E&P business was in-line. '13 Guidance Higher than Expected — NFG issued 2013 EPS guidance of $2.45 - $2.75 using conservative $3.25 gas & $85 oil price forecasts versus the current strip at ~$3.65 & ~$90, respectively. Our EPS estimate is $2.70p/s using a more aggressive $3.65 gas estimate, ~12% above NFG. In our opinion, NFG’s FY’13 guidance will be viewed as a positive surprise as the midpoint of $2.60p/s exceeds current consensus estimates of $2.54. We would expect consensus to trend higher. Adjusting estimates — We have updated our operating model. Our target price is now $57p/s, up from $55.50, mostly due to higher expected production out of the E&P segment. We estimate 2013 production of 95Bcfe, still below guidance of 99Bcfe. Based on our consolidated capex estimate of ~$550mm for ’13, NFG should come very close to living within cash flow (see reconciliation in body of note). Recommendation — We maintain our Buy rating. Yesterday’s quarterly results & guidance update leave us incrementally more positive on the name. We believe that NFG is an attractive way to play the Marcellus while trading at a ~28% discount (’13 EBITDA) to a basket of major Marcellus producers. We estimate that investors are currently receiving NFG’s Western PA Development area (~520K acres) for an implied ~$600 per acre, essentially rendering the ongoing wet gas exploration program a “free” option. We do not assume any liquids upside in our valuation. Call — 11AM EST. The dial-in number is 866.578.5788 (code 62532693). We expect the call to focus on 1) Operational updates in the Marcellus & California; 2) Some discussion around the initiated ’13 guidance; and (maybe) 3) Additional color on NFG’s progress with respect to liquids directed drilling in the Utica & Marcellus.