general manager interstate marketing department ?· general manager interstate marketing...

Download General Manager Interstate Marketing Department ?· General Manager Interstate Marketing Department…

Post on 05-Jul-2018

213 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • National Fuel Gas Supply Corporation

    Jeffrey R. SchaugerGeneral Manager

    Interstate Marketing Department

  • Safe Harbor for Safe Harbor for Safe Harbor for Safe Harbor for Forward Looking StatementsForward Looking StatementsForward Looking StatementsForward Looking Statements

    This presentation may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, including statementsregarding future prospects, plans, performance and capital structure, anticipated capital expenditures and completion of construction projects, as well asstatements that are identified by the use of the words anticipates, estimates, expects, forecasts, intends, plans, predicts, projects,believes, seeks, will, may, and similar expressions. Forward-looking statements involve risks and uncertainties, which could cause actual resultsor outcomes to differ materially from those expressed in the forward-looking statements. The Companys expectations, beliefs and projections containedherein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs orprojections will result or be achieved or accomplished.

    In addition to other factors, the following are important factors that could cause actual results to differ materially from results referred to in the forward-looking statements: changes in economic conditions, including economic disruptions caused by terrorist activities, acts of war or major accidents, anddownturns in economic activity including national or regional recessions; changes in demographic patterns and weather conditions, including theoccurrence of severe weather such as hurricanes; changes in the availability and/or price of natural gas or oil and the effect of such changes on theaccounting treatment of derivative financial instruments or the valuation of the Companys natural gas and oil reserves; uncertainty of oil and gas reserveestimates; ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including shortages, delays orunavailability of equipment and services required in drilling operations; significant changes from expectations in the Companys actual production levelsunavailability of equipment and services required in drilling operations; significant changes from expectations in the Companys actual production levelsfor natural gas or oil; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between various typesof oil; inability to obtain new customers or retain existing ones; significant changes in competitive factors affecting the Company; changes in laws andregulations to which the Company is subject, including changes in tax, environmental, safety and employment laws and regulations;governmental/regulatory actions, initiatives and proceedings, including those involving acquisitions, financings, rate cases (which address, among otherthings, allowed rates of return, rate design and retained gas), affiliate relationships, industry structure, franchise renewal, and environmental/safetyrequirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant changes from expectations in actualcapital expenditures and operating expenses and unanticipated project delays or changes in project costs or plans; the nature and projected profitabilityof pending and potential projects and other investments, and the ability to obtain necessary governmental approvals and permits; occurrences affectingthe Companys ability to obtain funds from operations, from borrowings under our credit lines or other credit facilities or from issuances of other short-term notes or debt or equity securities to finance needed capital expenditures and other investments, including any downgrades in the Companys creditratings; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequentlyacquired business or properties; impairments under the SECs full cost ceiling test for natural gas and oil reserves; changes in the market price of timberand the impact such changes might have on the types and quantity of timber harvested by the Company; significant changes in tax rates or policies or inrates of inflation or interest; significant changes in the Companys relationship with its employees or contractors and the potential adverse effects if labordisputes, grievances or shortages were to occur; changes in accounting principles or the application of such principles to the Company; the cost andeffects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; changes in actuarialassumptions and the return on assets with respect to the Companys retirement plan and post-retirement benefit plans; increasing health care costs andthe resulting effect on health insurance premiums and on the obligation to provide post-retirement benefits; or increasing costs of insurance, changes incoverage and the ability to obtain insurance.

    For a discussion of these risks and other factors that could cause actual results to differ materially from results referred to in the forward-lookingstatements, see Risk Factors in the Companys Form 10-K for the fiscal year ended September 30, 2010 and the Companys Form 10-Q for the quarterended March 31, 2011. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the datehereof or to reflect the occurrence of unanticipated events.

  • LDC: ~725,000 Customers LDC: ~725,000 Customers LDC: ~725,000 Customers LDC: ~725,000 Customers Served throughout Western Served throughout Western Served throughout Western Served throughout Western NY and Northwestern PANY and Northwestern PANY and Northwestern PANY and Northwestern PA

    PL&S: ~3,000 miles of pipe, PL&S: ~3,000 miles of pipe, PL&S: ~3,000 miles of pipe, PL&S: ~3,000 miles of pipe, 60,000+ hp60,000+ hp60,000+ hp60,000+ hp

    Own/Operate 27 Fields; Own/Operate 27 Fields; Own/Operate 27 Fields; Own/Operate 27 Fields; CoCoCoCo----Own/Operate 4 FieldsOwn/Operate 4 FieldsOwn/Operate 4 FieldsOwn/Operate 4 Fields

    Storage Capacity ~78 Storage Capacity ~78 Storage Capacity ~78 Storage Capacity ~78 bcfbcfbcfbcf

  • Niagara

    CANADACANADA

    Lake OntarioLake OntarioLake Ontario

    Lake

    Erie

    LakeLake

    ErieErie

    Ellisburg

    NYNY

    PAPA

    Chippawa

    CorningIndependence

    Millennium

    Tuscarora

    Storage

    TCPL

    Niagara, Chippawa

    Empire PipelineN

    ati

    on

    al

    Fue

    l G

    as

    Pip

    eli

    ne

    & S

    tora

    ge

    Sy

    ste

    m

    Empire Connector

    Corning

    Empire, Millennium

    Ellisburg

    PA

    PA

    OH

    OH

    Leidy: DTI,

    Transco, TETCO

    National Fuel Gas

    NFGSC System Storages

    NFGSC System Pipelines

    Empire Pipeline

    Interconnects

    Leidy

    Na

    tio

    na

    l Fu

    el

    Ga

    s P

    ipe

    lin

    e &

    Sto

    rag

    e S

    yst

    em

    Ellisburg Interconnects:

    TGP, DTI

    Bristoria

    TETCO M2

  • PL & S FootprintPL & S FootprintPL & S FootprintPL & S Footprint Unlocks OpportunityUnlocks OpportunityUnlocks OpportunityUnlocks Opportunity

  • NFGSC NFGSC NFGSC NFGSC System Increased System Increased System Increased System Increased Producer ActivityProducer ActivityProducer ActivityProducer Activity

    104

    161

    100

    120

    140

    160

    180

    IC Requests

    55% increase in IC requests from 2009 to 2010

    1 2 311 31

    79

    104

    0

    20

    40

    60

    80

    100

    2003 2004 2005 2006 2007 2008 2009 2010

  • Positioned to Move Growing Marcellus ProductionPositioned to Move Growing Marcellus ProductionPositioned to Move Growing Marcellus ProductionPositioned to Move Growing Marcellus Production

  • 6

    8

    10

    12

    Pro

    du

    cers

    Flo

    win

    g M

    arc

    ell

    us

    Pro

    du

    ctio

    n

    Marcellus Producers Transporting Gas on National Fuels System

    9

    Marcellus Producers Increase Marcellus Producers Increase Marcellus Producers Increase Marcellus Producers Increase Utilization of NFGSCUtilization of NFGSCUtilization of NFGSCUtilization of NFGSC

    0

    2

    4

    6

    Pro

    du

    cers

    Flo

    win

    g M

    arc

    ell

    us

    Pro

    du

    ctio

    n

    2

  • 3.00

    4.00

    5.00

    Lo

    cal P

    rod

    uct

    ion

    into

    NF

    GS

    C (

    Bcf

    per

    Mo

    nth

    )

    Marcellus

    Upper Devonian

    Evolving OnEvolving OnEvolving OnEvolving On----System Production MixSystem Production MixSystem Production MixSystem Production Mix

    0.00

    1.00

    2.00

    Lo

    cal P

    rod

    uct

    ion

    into

    NF

    GS

    C (

  • Local Production Receipts in NFGSC Appalachian Zones 1 & 2

    120,000.00

    140,000.00

    160,000.00

    60,000.00

    80,000.00

    100,000.00

    Jan

    -07

    Mar

    -07

    May

    -07

    Jul-

    07

    Sep

    -07

    No

    v-07

    Jan

    -08

    Mar

    -08

    May

    -08

    Jul-

    08

    Sep

    -08

    No

    v-08

    Jan

    -09

    Mar

    -09

    May

    -09

    Jul-

    09

    Sep

    -09

    No

    v-09

    Jan