PITTSBURGH — National Fuel Gas Company announced consolidated results on Friday for the fiscal first quarter that ended Dec. 31, 2016.
National Fuel had consolidated net income of $88.9 million or $1.04 per share compared to a consolidated net loss of $189.1 million or $2.23 per share in the prior year. They had a net production of 44.9 Bcfe, an 18 percent increase from prior year and 13 percent increase from the fiscal 2016 fourth quarter.
Seneca Resource’s first quarter was $35.1 million or $0.41 per share, compared to a net loss of $237.1 million or $2.80 per share in the prior year first quarter, an increase of $272.2 million, or $3.21 per share.
Seneca’s first quarter net production was 44.9 billion cubic feet equivalent (“Bcfe”), an increase of 6.9 Bcfe or 18 percent versus the prior year first quarter, and 5.1 Bcfe or 13 percent versus the fourth quarter of fiscal 2016. Net natural gas production increased 7.0 Bcf or 21 percent versus the prior year due mainly to higher natural gas production in Appalachia.
An improvement in local natural gas pricing in Pennsylvania allowed Seneca to produce most of its available production volumes since Nov. 1, 2016, selling 8.6 Bcf (net) in the daily spot markets and under new seasonal firm sales agreements during the quarter. Seneca voluntarily curtailed a modest 3.5 Bcf (net) of natural gas production during the quarter, which was a decrease from the 14.6 Bcf (net) in the prior year first quarter.
The company continues gain efficiencies across the program. Seneca is now achieving best in class Marcellus well costs of $663 per foot when compared to our peer average of $855 as of September 2016.
“We continue to improve roads in and around the Shawmut Grade in Clermont, McKean County,” the report noted. “We added a modern two-lane bridge on the grade and made additional improvements to Wilcox – Clermont Road.
“To date, Seneca has upgraded 150 miles of public use road in the development area with limestone running surfaces and improved erosion and sedimentation controls. This has reduced or eliminated historical sediment pollution from entering the high quality streams in the areas we work. It has also added much needed alkalinity to the watersheds.”
Over the past five years: “Seneca, which owns most of its acreage in fee, has paid nearly $223 million in royalty payments and approximately $45 million in impact fees since 2012. More importantly, Seneca has spent more than $711 million with Pennsylvania businesses during that same five-year period.”
