Key Points:
- NFG’s fiscal 2025 earnings are projected to rise 36.5%, with sales up 24.8%.
- The company shows steady cash flow growth, supporting operations and investments.
- Diversified energy operations help balance regulated stability with market-driven upside.
National Fuel Gas Company (NFG) is showing steady growth indicators in 2025, supported by an upward revision in earnings estimates, consistent cash flow trends, and diversified operations across multiple energy segments. The Williamsville, New York-based company, founded in 1902, has assets in the Appalachian Basin for natural gas and in California for oil production.
According to Zacks Equity Research, NFG holds a Zacks Rank #3 (Hold) with a Growth Style Score of B and a VGM Score of B. For fiscal 2025, analysts forecast earnings to rise by 36.5% and sales to grow by 24.8% compared with the prior year.
Earnings Estimates and Performance Trends
In the past 60 days, one analyst has revised the company’s fiscal 2025 earnings projection upward by $0.05, from $6.79 to $6.84 per share. National Fuel Gas has also delivered an average earnings surprise of 4.4% in recent quarters, indicating a pattern of exceeding expectations.
Cash flow is another area where the company has maintained steady growth. For the current year, NFG’s cash flow is projected to increase by 3.8%, building on a historical average growth rate of 9.9% over the past three to five years. These figures are key indicators of a company’s ability to fund operations, manage debt, and invest in infrastructure projects.
Diversified Operations
National Fuel Gas’s business model spans regulated and market-based activities through four primary segments:
- Exploration and Production and Other: centered on natural gas development in the Appalachian Basin and oil production in California.
- Pipeline and Storage: managing natural gas transportation and underground storage services.
- Gathering: Collecting natural gas from production sites and delivering it to pipelines.
- Utility and Energy Marketing: providing regulated natural gas utility services to customers in New York and Pennsylvania.
This diversified structure helps the company balance stable, regulated revenue streams with the potential upside of exploration and production activities, which are more sensitive to commodity price changes.
Industry Position and Considerations
The energy sector in 2025 is marked by fluctuating commodity prices, shifting regulatory environments, and a gradual shift toward cleaner energy sources. Companies with both regulated utility operations and upstream production capabilities are often better positioned to navigate market volatility.
While NFG’s current Zacks Rank indicates a neutral stance for near-term performance, its earnings outlook, recent upward estimate revision, and positive cash flow trajectory place it among companies in the sector with measurable growth potential. However, factors such as natural gas and oil price trends, weather-driven demand fluctuations, and infrastructure investment requirements could influence its future results.
Outlook
Looking ahead, National Fuel Gas’s ability to maintain cash flow growth, manage costs, and execute on capital projects will be central to sustaining its growth profile. Analysts and investors will also be watching whether the company can continue to deliver earnings surprises and benefit from favorable market conditions in natural gas demand.
The combination of steady financial metrics, diversified operations, and a long-standing presence in the energy sector supports NFG’s position as a company with a measured growth trajectory. While not currently flagged as a strong buy, it remains on the radar for those tracking stable, asset-backed energy companies in the United States.
