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Boston LDC Gas Forum National Fuel Gas Supply Corporation Empire Pipeline, Inc. une 2015 Gas Forum – Ju Boston LDC 1 Jeffrey Schauger General Manager Interstate Marketing
Boston LDC Gas ForumNationalFuelGasSupplyCorporationEmpirePipeline,Inc.
une 2015
Gas Forum –Ju
Boston LDC
1
Jeffrey SchaugerGeneral ManagerInterstate Marketing
National Fuel Gas CompanySafeHarborForForwardLookingStatementsf gThis presentation may contain “forward‐looking statements” as defined by the Private Securities Litigation Reform Act of 1995, including statements regarding future prospects, plans, objectives, goals, projections, estimates of oil and gas quantities, strategies, future events or performance and underlying assumptions, capital structure, anticipated capital expenditures, completion of construction projects, projections for pension and other post‐retirement benefit obligations, impacts of the adoption of new accounting rules, and possible outcomes of litigation or regulatory proceedings, as well as statements 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 results or outcomes to differ materially from those expressed in the forward‐looking statements. The Company’s expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that management’s expectations, beliefs or projections will result or bein good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that management s expectations, beliefs or projections will result or be achieved or accomplished.
In addition to other factors, the following are important factors that, in the view of the Company, could cause actual results to differ materially from those discussed in the forward‐looking statements: factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in the price of natural gas or oil; changes in price differentials between similar quantities of natural gas or oil sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of natural gas or oil having different quality, heating value, hydrocarbon mix or delivery date; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment
une 2015
of derivative financial instruments; delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks or pest infestation; significant differences between the Company’s projected and actual capital expenditures and operating expenses; h i l t i l ti th i t t t i t d th t l /t t t l t d t th C ’ i d th t ti t b fit
Gas Forum –Ju changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post‐retirement benefits,
which can affect future funding obligations and costs and plan liabilities; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post‐retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance.
Forward‐looking statements include estimates of oil and gas quantities. Proved oil and gas reserves are those quantities of oil and gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible under existing economic conditions, operating methods and government regulations. Other estimates of oil and gas quantities, including estimates of probable reserves, possible reserves, and resource potential, are by their nature more speculative than estimates
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Other estimates of oil and gas quantities, including estimates of probable reserves, possible reserves, and resource potential, are by their nature more speculative than estimates of proved reserves. Accordingly, estimates other than proved reserves are subject to substantially greater risk of being actually realized. Investors are urged to consider closely the disclosure in our Form 10‐K available at www.nationalfuelgas.com. You can also obtain this form on the SEC’s website at www.sec.gov.
For a discussion of the risks set forth above and other factors that could cause actual results to differ materially from results referred to in the forward‐looking statements, see “Risk Factors” in the Company’s Form 10‐K for the fiscal year ended September 30, 2013 and the Forms 10‐Q for the quarters ended December 31, 2013 and March 31, 2014. The Company disclaims any obligation to update any forward‐looking statements to reflect events or circumstances after the date thereof or to reflect the occurrence of unanticipated events.
NFG Footprintune 2015
Gas Forum –Ju
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Transforming the SystemRecentlyConstructedExpansionsy p
Project (Dth/d)Lamont 90,000Mercer Expansion 2014 105,000Northern Access 320,000Tioga County Extension 350,000Line N (2011, 2012, & 2013) 353,000
une 2015
( )Total New Capacity 1,218,000 Dth/d
Total Capital Expenditures* $232 million
Gas Forum –Ju
Boston LDC
4* Capital Cost is for Expansion Only – Excludes Modernization Cost
2015 ProjectsContinuedSouthwesternPADevelopmentp
Westside Expansion & Modernization
System: NFGSC
Capacity: 175,000 Dth/d
Market: Range Resources Range Resources Seneca Resources
Interconnects Mercer (TGP Station 219) Holbrook (TETCO)
une 2015
Westside Expansion & Modernization
Mercer Holbrook (TETCO)
Facilities 3,550 HP Compression 23.3 miles – 24” Replacement Pipeline
C it l C t $86 Milli
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Holbrook
Capital Cost: $86 Million Expansion: $45 million System Modernization: $41 million
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2015 ProjectsContinuedSouthwesternPADevelopmentp
Westside Expansion & Modernization
Status: Under Construction In‐Service: September 2015 target
une 2015
Gas Forum –Ju
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2015 ProjectsUniqueSolutionsforOn‐SystemLDC’sq f y
Tuscarora Lateral
System: NFGSC & Empire
New No‐Notice Services (FTNN/FSNN)
Shippers RG&E NYSEG NFGDC
Includes 3.3MM Dth of Storage Service
une 2015
Interconnect Tuscarora (NFGSC/Empire)
Facilities1 384 HP C
Tuscarora Lateral
Gas Forum –Ju 1,384 HP Compressor
17 miles – 12/16” Pipeline
Capital Cost: Empire $42.8 Million Supply $15 7 Million
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Supply $15.7 Million
2015 ProjectsUniqueSolutionsforOn‐SystemLDC’sq f y
Tuscarora Lateral
une 2015
Gas Forum –Ju Status: Under Construction
In‐Service: November 2015 target
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2015 ProjectsDeliveriesintoEasternCanada
Canada & Eastern U.S.
Northern Access 2015
System: NFGSC
Capacity: 140,000 Dth/d
Northern Access
Tioga County Extension
Northern Access 2015
Niagara (TCPL)
Market: Lease of Capacity to TGP
Facilities 15,400 HP Hinsdale CS 7,700 HP Concord CS
Lamont ProjectsMercer Expansion
Access 2015
une 2015
, East Eden M&R Upgrades
Capital Cost: $66 Million
Line N Projects
Gas Forum –Ju Line N Projects
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2015 ProjectsDeliveriesintoEasternCanada
Northern Access 2015
Status: Under Construction In Service: November 2015 In Service: November 2015
target
une 2015
Gas Forum –Ju
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PoweringUptheSystemNFGSC / Empire
g p y
180,000
200,000
140,000
160,000
100,000
120,000
orsepo
wer
une 2015
40 000
60,000
80,000Ho
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0
20,000
40,000
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02009 2010 2011 2012 2013 2014 2015
Storage Transmission
Directly Connected Production
1,000
1,200
926 MDth/d
800
ay)
600
(MDth per Da
une 2015 400
116 MDth/d
(
Gas Forum –Ju
200
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0
Jan‐10
Mar‐10
May‐10
Jul‐1
0
Sep‐10
Nov‐10
Jan‐11
Mar‐11
May‐11
Jul‐1
1
Sep‐11
Nov‐11
Jan‐12
Mar‐12
May‐12
Jul‐1
2
Sep‐12
Nov‐12
Jan‐13
Mar‐13
May‐13
Jul‐1
3
Sep‐13
Nov‐13
Jan‐14
Mar‐14
May‐14
Jul‐1
4
Sep‐14
Nov‐14
Jan‐15
Mar‐15
Upper Devonian ‐ NFGSC Marcellus ‐ NFGSC Marcellus ‐ NFG Midstream Marcellus ‐ Empire
NFGSC Receipts/Deliveries at Niagara
NFGSC – An Exporter to Canada
500,000
600,000
p g
300,000
400,000
Northern Access project ISD ‐ November 2012
100,000
200,000
Dth/day
‐ November 2012
une 2015
100 000
0
Gas Forum –Ju
‐200,000
‐100,000
Boston LDC
13‐400,000
‐300,000
Empire ‐ Significant Receipts from MPL at Corning400,000
200,000
300,000
Tioga County Extension ISD –November 2011
100,000
Dth/day
une 2015
0
Gas Forum –Ju
‐200,000
‐100,000
Boston LDC
‐300,00014
Empire – Deliveries to TGP 200 Line at Hopewell
400,000
450,000
y
300,000
350,000
Dth/day
200,000
250,000
une 2015
100,000
150,000
Gas Forum –Ju
0
50,000
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Northern Access 2016ExportstoCanadafromtheBasin
/
p fCompressor Station Northern Access 2016
System: NFGSC / Empire
Capacity: 497,000 Dth/d on Supply350,000 Dth/d on Empire
Interconnects
TGP Interconnect
Chippawa (TCPL)
Interconnects Chippawa (TCPL) TGP 200 Line
Facilities Include: 99 miles of 24” pipeline
Northern Access 2016
une 2015
99 miles of 24 pipeline 21,830 HP Pendleton 4,740 HP Porterville Dehydration facilities
Capital Cost: $451 Million
Gas Forum –Ju Cap ta Cost: $ 5 o
Regulatory Status: 7(c) filing March 17, 2015
In Service: January 2017 targetClermont
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NFGSC / EmpireDeliveringIntoEasternCanadianMarketsg
$12.00
Winter 13/14 Premiums in
$8.00
$10.00 Winter 13/14 Premiums in
Excess of $35
perM
MBtu
$6.00
une 2015
$
$4.00
Gas Forum –Ju
$2.00
Boston LDC
17Source: Gas Daily Cash Prices
$0.00 Nov‐12 Feb‐13 May‐13 Aug‐13 Nov‐13 Feb‐14 May‐14 Aug‐14 Nov‐14 Feb‐15 May‐15
Dawn to Dominion South Point Differential Dawn to TGP 300 ‐ Zone 4 Differential
Additional Exports on NFGSC
System: NFGSC
Capacity: 415,000 Dth/dNiagara p y , /
In Service: as early as 2018
Utilizes Niagara Spur Loop Line
Niagara
Corridor for Build to Niagara
Facilities and Rate subject to Requested Receipt Points
une 2015
Maximizes Use of NA 2016 Facilities
Indicative Rate: $0.55 ‐ $0.65
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Future Empire Opportunities
Deliveries to Chippawa & Hopewell
h/d Capacity: 290,000 Dth/d
In Service: as early as 2018
Utilizes Inexpensive South‐to‐North Expandability on Empire
HopewellChippawa
Iroquois
Expandability on Empire
Indicative Rate: $0.40 ‐ $0.50
Build to Iroquois (IGT)
une 2015
Capacity: 290,000 Dth/d
Prospective
Prospective Transition of Delivery
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Point from Chippawa/Hopewell to IGT
In Service: 2018 / 2019
Additi l $ 50 $ 60 T t
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Additional $.50‐$.60 Transport Rate
New Line N Opportunities
System: NFGSC
Capacity: 250,000 ‐ 500,000 Dth/d
In Service: 2018 / 2019
Takes Advantage of Key Existing Interconnections:Mercer
Tetco Holbrook (M2) TGP Mercer (219) TCO Ellwood City
Expand to New Outlets
une 2015
Rover Nexus REX Majorsville / TCO
Holbrook
Gas Forum –Ju
Prospective “Header” Service Offering Market Access, Flexibility, and Optionality
Affordable Rates
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ThankYou
MIXD GAS
WDAEDA DRY GAS
une 2015
Gas Forum –Ju
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