National Fuel Gas CoNFG

National Fuel Gas (NFG) has announced a 56th consecutive annual dividend increase, raising the quarterly payout despite holding just $26.6M in cash as of Q2 FY26. The company reported $909M in revenue (excluding tax) and $247.7M net income for the period, with operating cash flow surging to $657.3M. A strategic 3-year agreement with Evolution Well Services aims to deploy electric fracturing tech in Appalachia, though capital expenditures reached $498.3M, offsetting inventory drawdowns of $25.5M.

NFG’s core utility business saw net income rise 3% year-over-year to $65M, driven by infrastructure upgrades in New York and Pennsylvania. The company’s exploration arm, Seneca Resources, continues to dominate operations, while the upcoming July 29 earnings call will test management’s ability to reconcile high capex with dividend sustainability. With a diluted EPS of $2.59 and 95.7M shares outstanding, the market will watch for guidance on future spending and cash deployment.

Despite strong cash flows, NFG’s liquidity remains tight relative to its spending. The $498.3M capex outlay exceeds its cash reserves by a factor of 18, raising questions about funding priorities. Inventory reductions suggest operational streamlining, but the lack of free cash flow disclosure leaves analysts guessing. With the stock’s 56-year dividend streak under scrutiny, the July 29 call could prove pivotal for investor sentiment.