eps diluted
0.33–0.43 $per share
Q4 2010
official guidance
| Revenue | $3.2B |
|---|---|
| Operating income | $20.9M |
| Net income | $2.1M |
| Free cash flow | $85.4M |
| Operating margin | 0.7% |
| Net margin | 0.1% |
| Return on equity | 0.2% |
| Period | TTM 2026-06-30 |
OpenFilings analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Attractive resource growth is offset by funding needs, commodity sensitivity, and execution risk.
Latest call · Q3 2024Hold: NFG delivered in-line Q3 EPS of $0.51 and has strong Marcellus momentum, with fiscal 2011 production expected at 60–70 Bcfe and risked Marcellus potential raised to 8–15 Tcf.
However, preliminary FY2011 EPS guidance is only $2.60–$2.90 despite aggressive growth, while pipeline turnbacks create a near-term earnings decline and roughly $400 million of cash needs constrain flexibility.
Fiscal 2010 fourth-quarter EPS guidance of $0.33–$0.43 includes approximately nine days of potential Gulf hurricane shut-ins.
Pipeline and Storage revenue is expected to decline by about $4.5 million in FY2011 from turned-back Niagara capacity, with another $6 million reduction already identified for FY2012.
Line N, Tioga Extension, Northern Access, and Lamont are expected to add about $51 million of revenue once fully flowing, but the offset to lost capacity is delayed until 2012.
Completion services and rig rates are rising, creating cost pressure as Seneca expands from three to six horizontal rigs by FY2011 end.
The company expects FY2011 cash flow to be more than $200 million negative after approximately $665 million of capital spending, alongside a $200 million debt maturity in November 2010.
Marcellus production is expected to rise to 25–30 Bcf in FY2011, roughly four times FY2010 production, supported by 60–80 Seneca-operated horizontal wells and about 40 EOG-operated wells.
Tioga wells are outperforming initial expectations: the last five averaged more than 8 MMcf per day over their first 30 days, and six of seven showed flatter-than-type-curve declines.
Pipeline growth could become a meaningful structural offset after 2012, with West to East potentially entering service in 2013 as Marcellus production expands near the system footprint.
At a $5 gas price, management indicated that its 52% acreage risk factor roughly represents the portion of acreage it expects ultimately to develop, leaving a substantial portion economically unproven at that price.
Management's ability to convert the 8–15 Tcf resource estimate into proved reserves and repeat well productivity across western acreage is the central long-term value driver.
The 8–15 Tcf resource estimate relies on a 52% risk factor, versus 30%–40% previously, and management acknowledged that EUR, reserve classification, and the boundary between PUDs and resource potential remain subjective.
Management provided no quantified drilling-efficiency gains despite analyst questioning, while acknowledging completion-cost pressure and a historical well-cost base above the targeted $3.5–$4.0 million range.
The West to East project has been pushed from 2012 to 2013 because producers have not committed to ten-year capacity contracts, weakening confidence in the timing of the pipeline growth thesis.
FY2011 earnings guidance is preliminary and highly sensitive to assumed $5 gas and $80 oil prices; approximately 45% of expected 2011 production was hedged, below the company's preferred 50% level.
The company plans to use most of its roughly $400 million cash balance for capital spending and debt repayment, with the remainder initially funded through short-term debt.
eps diluted
0.33–0.43 $per share
Q4 2010
official guidance
eps diluted
2.6–2.7 $per share
FY 2010
official guidance
eps diluted
2.6–2.9 $per share
FY 2011
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
WERNER ENTERPRISES, INC.
WERNER ENTERPRISES, INC.
WERNER ENTERPRISES, INC.
WERNER ENTERPRISES, INC.
WERNER ENTERPRISES, INC.
WERNER ENTERPRISES, INC.