National Fuel Gas expects 5%-7% long-term rate-base growth after spinoff
NFG•National Fuel expects to complete a tax-free spinoff of its integrated upstream and gathering business in the second half of 2027. Its remaining regulated business targets 5%-7% long-term rate-base growth from about $5 billion, and both businesses expect no incremental equity financing needs over the next five years.
1. Spinoff and growth targets
National Fuel expects to complete a tax-free spinoff of its integrated upstream and gathering business in the second half of 2027. The remaining regulated business targets long-term rate-base growth of 5%-7% from approximately $5 billion, supported by pipeline expansions and modernization spending. Both businesses expect no incremental equity financing needs over the next five years.
2. Capital and leverage plans
Monetizing a retained stake of up to 19.9% in the integrated upstream and gathering business should help lift the regulated company's credit rating by two to three notches. The spun-off business expects initial leverage slightly above 1x, falling below 1x within one to two years of separation through free cash flow.
