What National Fuel Gas reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
The net investment of the Company in property, plant and equipment was $7.7 billion at September 30, 2025. The Integrated Upstream and Gathering segment constitutes 46.0% of this investment, and is primarily located in the Appalachian region of the United States. Approximately 53.9% of the Company’s investment in
The rest of Item 2
net property, plant and equipment was in the Utility and Pipeline and Storage segments, whose operations are located primarily in western and central New York and western Pennsylvania. The remaining 0.1% of the Company’s net investment in property, plant and equipment falls within All Other and Corporate operations. During the past five years, the Company has made significant additions to property, plant and equipment in order to expand its integrated upstream and gathering operations in the Appalachian region of the United States and to expand and modernize transmission, storage, and distribution facilities for customers in New York and Pennsylvania. Net property, plant and equipment has increased $1.7 billion, or 28.6%, since September 30, 2020. The five-year increase is net of impairments of assets recorded in 2021, 2024 and 2025 (pre-tax amounts of $76 million, $519 million and $142 million, respectively).
The Integrated Upstream and Gathering segment had a net investment in property, plant and equipment of $3.5 billion at September 30, 2025. Capitalized costs relating to exploration and production activities, the components of which are disclosed in Item 8, Note N — Supplementary Information for Exploration and Production Activities, represent 69% of this segments total net investment. Gathering lines and related compressor stations represent 23% of this segment’s total net investment and includes 401 miles of pipelines utilized to move Appalachian production (including Marcellus and Utica shales) to various transmission pipeline receipt points as well as 24 compressor stations with 128,286 installed horsepower.
The Pipeline and Storage segment had a net investment of $2.2 billion in property, plant and equipment at September 30, 2025. Transmission pipeline represents 35% of this segment’s total net investment and includes 2,233 miles of pipeline utilized to move large volumes of gas throughout its service area. Storage facilities represent 15% of this segment’s total net investment and consist of 382 miles of pipeline, as well as 28 storage fields operating at a combined working gas level of 77.2 Bcf, three of which are jointly owned and operated with other interstate gas pipeline companies. Net investment in storage facilities includes $80.7 million of gas stored underground, representing the cost of base gas utilized to maintain pressure levels for normal operating purposes as well as gas maintained for system balancing and other purposes, including that needed for no-notice transportation service. The Pipeline and Storage segment has 30 compressor stations with 259,038 installed horsepower that represent 31% of this segment’s total net investment in property, plant and equipment.
The Pipeline and Storage segment’s facilities provided the capacity to meet Supply Corporation’s 2025 peak day sendout for transportation service of 2,371 MMcf, which occurred on January 21, 2025. Withdrawals from storage of 563 MMcf provided approximately 24% of the requirements on that day.
The Utility segment had a net investment in property, plant and equipment of $2.0 billion at September 30, 2025. The net investment in its gas distribution network (including 15,112 miles of distribution pipeline) and its service connections to customers represent approximately 51% and 31%, respectively, of the Utility segment’s net investment in property, plant and equipment at September 30, 2025.
Company maps are included in Exhibit 99.2 of this Form 10-K and are incorporated herein by reference.
Exploration and Production Activities
Seneca, which is part of the Company’s Integrated Upstream and Gathering segment, is engaged in the exploration for and the development of natural gas reserves in the Appalachian region of the United States. Seneca’s development activities in the Appalachian region are focused primarily in the Marcellus and Utica shales. Further discussion of exploration and production activities is included in Item 8, Note N — Supplementary Information for Exploration and Production Activities. Note N sets forth proved developed and undeveloped reserve information for Seneca. The September 30, 2025, 2024 and 2023 reserves shown in Note N are valued using an unweighted arithmetic average of first day of the month commodity price for each month within the twelve-month period prior to the end of the reporting period. The reserves were estimated by Seneca’s petroleum engineers and were audited by independent petroleum engineers from Netherland, Sewell & Associates, Inc. Note N discusses the qualifications of Seneca’s petroleum engineers, internal controls over the reserve estimation process and audit of the reserve estimates and changes in proved developed and undeveloped gas reserves year over year.
Seneca’s proved developed and undeveloped natural gas reserves increased from 4,752 Bcf at September 30, 2024 to 4,980 Bcf at September 30, 2025. This increase is attributed to extensions and discoveries of 632
Bcf and revisions of previous estimates of 22 Bcf, partially offset by production of 426 Bcf. Upward revisions of 69 Bcf are mainly attributed to positive performance improvements and price revisions. The additions and upward revisions were partially offset by downward revisions of 47 Bcf from changes to development layout, the removal of one PUD location and operating expense-related revisions. The Company has no near term plans to develop the reserves at this PUD location.
