WILLIAMSVILLE, N.Y. - National Fuel Gas Company (NYSE: NYSE:NFG), a diversified energy firm, announced a 4.0% increase in its quarterly dividend Thursday, continuing its record of consistent shareholder payouts. The dividend on the company's common stock has been increased from 49.5 cents to 51.5 cents per share, marking an annual rate of $2.06 per share.
This decision by the Board of Directors will benefit stockholders of record at the close of business on June 28, 2024, with the dividend payable on July 15, 2024. National Fuel, known for its integrated natural gas assets, has a notable history of dividend payments, having done so for 122 consecutive years. Moreover, this increase represents the 54th consecutive year that the company has raised its annual dividend.
With about 91.8 million shares of common stock outstanding and no preferred stock, National Fuel stands as a significant player in the energy sector. The company operates across four business segments: Exploration & Production, Pipeline & Storage, Gathering, and Utility, with its headquarters in Western New York.
The information provided in this article is based on a press release statement from National Fuel Gas Company.
In other recent news, National Fuel Gas Company (NFG) reported robust growth for its second quarter, with adjusted operating results reaching $1.79 per share, a 16% increase from the previous year. This success was largely driven by the company's regulated businesses, which saw a 36% rise in earnings per share, and a 10% increase in production from Seneca Resources and the gathering segment's throughput. Despite weather and operational challenges, the company remains optimistic about the future of natural gas prices.
In terms of company developments, National Fuel has initiated a $200 million share buyback program and continues to invest in modernization and expansion projects. Notably, the company is expanding its Tioga gathering system and remains focused on efficiency and low-cost operations. National Fuel also expects significant near-term growth in its regulated utility and pipeline businesses due to rate increases and ongoing investments.
Analysts noted some bearish aspects such as weather impacts and lower gas prices affecting recovery of lost and unaccounted for gas in New York. However, the company's throughput increased by 15% year over year, driven by production growth from Seneca and third parties, indicating promising prospects. National Fuel expressed continued interest in M&A opportunities to add regulated assets to their portfolio, further signaling its strategic foresight and resilience.
InvestingPro Insights
National Fuel Gas Company (NYSE: NFG) has once again demonstrated its commitment to shareholder returns with the recent announcement of a dividend increase. This marks the company's 54th consecutive year of raising its annual dividend, a testament to its stable financial performance and prudent capital management strategies.
InvestingPro Data highlights the company's resilience with a market capitalization of $5.08 billion and a solid P/E ratio of 10.91, which is further refined to an adjusted P/E ratio of 10.85 over the last twelve months as of Q2 2024. These figures underscore National Fuel's value proposition in the energy sector, trading at a low earnings multiple that may attract value-oriented investors.
Furthermore, the company's dividend yield stands at an attractive 3.58%, with a dividend growth of 4.21% in the same period, reinforcing its appeal to income-focused shareholders. This is particularly noteworthy considering the broader market context and the company's ability to maintain a robust dividend policy amid various market conditions.
Among the InvestingPro Tips, two analysts have recently revised their earnings estimates upwards for the upcoming period, indicating potential optimism about the company's financial prospects. Additionally, National Fuel is recognized for its low price volatility, which may appeal to conservative investors seeking stability in their investment portfolios.
For investors looking to delve deeper into National Fuel's financials and strategic positioning, there are additional InvestingPro Tips available at https://www.investing.com/pro/NFG. These tips provide further insights into the company's financial health and market performance, including its ability to meet short-term obligations and its trading position relative to its 52-week high.
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