National Fuel Gas Company (NFG) 2026 Q2 法說會逐字稿

Hello, everyone. Thank you for joining us, and welcome to the National Fuel Gas Company Second Quarter Fiscal 2026 Earnings Call. [Operator Instructions]

各位好。感謝各位加入我們，歡迎參加 National Fuel Gas Company 2026 會計年度第二季財報電話會議。[Operator Instructions]

I will now hand the conference over to Natalie Fischer, Director of Investor Relations. Please go ahead.

現在我將把會議交給投資人關係總監 Natalie Fischer。請開始。

Thank you, Karina, and good morning. We appreciate you joining us on today's conference call for a discussion of last evening's earnings release. With us on the call from National Fuel Gas Company are Dave Bauer, President and Chief Executive Officer; Tim Silverstein, Treasurer and Chief Financial Officer; and Justin Loweth, President of Seneca Resources and National Fuel Midstream.

謝謝你，Karina，大家早安。感謝各位參加今天的電話會議，一同討論昨晚發布的財報新聞稿。今天與會的 National Fuel Gas Company 團隊成員包括：總裁暨執行長 Dave Bauer；財務長暨司庫 Tim Silverstein；以及 Seneca Resources 與 National Fuel Midstream 總裁 Justin Loweth。

At the end of today's prepared remarks, we will open the discussion to questions. The second quarter fiscal 2026 earnings release and April investor presentation have been posted on our Investor Relations website. We may refer to these materials during today's call.

在今天的預先準備發言結束後，我們將開放提問。2026 會計年度第二季財報新聞稿與 4 月投資人簡報已發布於我們的投資人關係網站。我們在今天的會議中可能會引用這些資料。

We'd like to remind you that today's teleconference will contain forward-looking statements. While National Fuel's expectations, beliefs and projections are made in good faith and are believed to have a reasonable basis, actual results may differ materially. These statements speak only as of the date on which they are made, and you may refer to last evening's earnings release for a listing of certain specific risk factors. With that, I'll turn it over to Dave Bauer.

提醒各位，今天的電話會議將包含前瞻性陳述。雖然 National Fuel 的預期、信念與推估係基於善意並相信具有合理依據，但實際結果可能出現重大差異。這些陳述僅反映其作成當日之情況；關於特定風險因素清單，請參閱昨晚的財報新聞稿。接下來交給 Dave Bauer。

Thank you, Natalie, and good morning, everyone. National Fuel had a solid second quarter with adjusted earnings per share of $2.71, an increase of 13% from last year. This continues our streak of double-digit EPS growth and keeps us on track to achieve our multiyear 10% plus average annual growth target. I'm also happy to report that during the quarter, we achieved additional milestones across the system that further bolster our long-term earnings outlook.

謝謝你，Natalie，大家早安。National Fuel 第二季表現穩健，調整後每股盈餘為 2.71 美元，較去年成長 13%。這延續了我們每股盈餘連續雙位數成長的趨勢，並使我們持續朝多年期「年均成長 10% 以上」的目標邁進。我也很高興報告，本季我們在整個系統達成了更多里程碑，進一步強化我們對長期獲利前景的展望。

Our second quarter was a prime example of the strong operational resiliency of our natural gas assets, particularly during severe weather events. In January and February, we experienced an extended cold snap across our operating footprint, where daily low temperatures in some of our regions were below freezing for 19 straight days. A big thank you to our dedicated workforce and contractors who worked through the elements to ensure that the gas continued to flow during this critical time. Overall, our systems held up extremely well with no notable issues at our Utility and Pipeline and Storage businesses.

我們第二季充分展現天然氣資產強韌的營運韌性，尤其是在嚴峻天候事件期間。1 月與 2 月，我們的營運範圍遭遇長時間寒流，在部分地區每日最低溫連續 19 天低於冰點。特別感謝我們敬業的員工與承包商在惡劣環境下仍持續作業，確保在這段關鍵期間天然氣供應不中斷。整體而言，我們的系統表現非常良好，公用事業以及管線與儲存業務均未出現任何值得注意的問題。

On the nonregulated side, our production and gathering facilities performed very well with limited freeze-offs. This allowed us to take advantage of some of the strong prices we saw on the coldest days. We did, however, experience some regional road closures over multiple days due to heavy snowfall. During this stretch of weather, we slowed the pace of completions and delayed the flowback of a new pad, which had a modest impact on our production for the quarter and will similarly impact full year production.

在非管制業務方面，我們的生產與集輸設施運作表現也非常出色，凍堵停產（freeze-offs）情況有限。這使我們得以把握最寒冷幾天所出現的強勁價格。不過，由於大雪，我們確實在部分地區經歷了連續多日的道路封閉。在這段天候期間，我們放緩完井作業進度，並延後一個新井台的返排（flowback），對本季產量造成小幅影響，且同樣將影響全年產量。

On the drilling and completion side, we continue to focus on the optimization of our integrated development program. We've made substantial progress on the testing of both our Gen 4 well designs and our Upper Utica locations and are seeing continued success, which further enhances our long-term outlook. With decades of core inventory locations, a growing marketing portfolio and ongoing improvements in capital efficiency, our Integrated Upstream & Gathering business is positioned to deliver meaningful production and free cash flow growth for years to come. Justin will provide additional details later in the call.

在鑽井與完井方面，我們持續聚焦於整合式開發計畫的最佳化。我們在第 4 代（Gen 4）井型設計與 Upper Utica 井位測試上取得重大進展，並持續看到成功成果，進一步提升我們的長期展望。憑藉數十年的核心庫存井位、持續擴大的行銷組合，以及資本效率的持續改善，我們的「整合式上游與集輸」業務已具備條件，在未來多年帶來具意義的產量與自由現金流成長。Justin 稍後將在會議中提供更多細節。

Our outlook for the regulated businesses is also strong. Starting with the Pipeline and Storage segment, we continue to develop new expansion opportunities on our Line N system, which is well positioned to support both behind-the-meter generation that's co-located with data centers and the broader need for electric generation within PJM. Last week, we executed a precedent agreement on a new expansion opportunity that we're calling the Line N system upgrade project. And this project has a dual benefit for us. First, it adds 94,000 dekatherms a day of incremental transportation capacity, all of which was subscribed under a long-term contract with an investment-grade counterparty.

我們對受管制業務的展望同樣強勁。先談管線與儲存事業部，我們持續在 Line N 系統上開發新的擴建機會；該系統具備良好定位，可支援與資料中心共址的表後（behind-the-meter）發電，以及 PJM 區域更廣泛的電力發電需求。上週，我們就一項新的擴建機會簽署了先例協議（precedent agreement），我們稱之為 Line N 系統升級專案。此專案對我們具有雙重效益。首先，它新增每日 94,000 dekatherms 的運輸增量容量，且全部已由一家具投資級信用評等的交易對手以長期合約認購。

And second, the project allows us to modernize a key 6-mile portion of pipe, ensuring the continued reliability and integrity of that part of our system. The project has an estimated capital cost of $93 million, approximately 70% of which relates to the modernization component of the project, and it's expected to go in service in late calendar 2028.

其次，該專案使我們得以現代化改造一段關鍵的 6 英里管線，確保系統該部分持續具備可靠性與完整性。該專案估計資本成本為 9,300 萬美元，其中約 70% 與現代化改造部分相關，預計於 2028 年曆年年底前投入營運。

Also this quarter, construction commenced on our Shippingport Lateral and Tioga Pathway expansion projects, both of which are on track to meet their November 2026 target in-service dates.

此外，本季我們的 Shippingport Lateral 與 Tioga Pathway 擴建專案已開工建設，兩案皆按計畫推進，預期可達成 2026 年 11 月的目標投運日期。

Lastly, today, Supply Corporation is filing a new rate case with FERC that seeks an approximately $95 million increase to our cost of service. In addition, our filing proposes a modernization tracker to support the ongoing investment in the safety and reliability of the system. We expect this proceeding to play out along the typical time line and hope to reach a settlement sometime this fall with new rates going into effect late in the calendar year. Collectively, between the rate case and two expansion projects, fiscal 2027 should be a period of significant growth in our Pipeline and Storage business.

最後，今天 Supply Corporation 將向 FERC 提交新的費率案件，尋求將我們的服務成本（cost of service）提高約 9,500 萬美元。此外，我們的申請亦提出一項現代化改造追蹤機制（modernization tracker），以支持對系統安全與可靠性的持續投資。我們預期此程序將依一般時程推進，並希望在今年秋季某個時間達成和解，使新費率於年曆年年底前生效。綜合費率案件與兩項擴建專案，2027 會計年度應將成為我們管線與儲存業務顯著成長的期間。

Moving to the Utility. Customer affordability remains top of mind, and we continue to work closely with our regulators to ensure we can continue to invest in the modernization of our system while keeping rates reasonable. Our delivery rates are the lowest in both states, and we're doing our best to keep it that way. In New York, we're in year 2 of our 3-year rate plan, which runs through the end of fiscal 2027. As we look beyond 2027, we have over a decade of remaining modernization investments at our current replacement pace. Over the coming months, we'll be proactively working on a solution to recover these important future investments.

接著談公用事業（Utility）。客戶可負擔性仍是我們最關注的重點，我們持續與監管機關密切合作，確保在維持費率合理的同時，仍能持續投資於系統現代化。我們的配送費率在兩個州皆為最低，我們也盡最大努力維持這一點。在紐約州，我們正處於為期 3 年的費率方案第 2 年，該方案將持續至 2027 會計年度末。展望 2027 年之後，以目前的汰換速度計算，我們仍有超過十年的現代化投資需求。在接下來幾個月，我們將主動推動解決方案，以回收這些重要的未來投資。

In Pennsylvania, our rate case is progressing as expected. Testimony from staff and other intervening parties was filed a few weeks ago. We'll file rebuttal testimony in May and then expect to commence settlement discussions over the summer. Given our modest rate increase request, we're optimistic we'll reach a settlement by the fall. I expect discussions will be constructive. As I said, our rates are the lowest in the state and would continue to be the lowest even if we receive the full $20 million increase we've requested.

在賓夕法尼亞州，我們的費率案件正如預期推進。工作人員與其他介入方的證詞已於數週前提交。我們將於 5 月提交反駁證詞，之後預期在夏季開始和解討論。鑑於我們所申請的費率調升幅度不大，我們對於在秋季前達成和解抱持樂觀。我預期討論將具建設性。如我所說，我們的費率在該州為最低，即使我們獲准取得所申請的全額 2,000 萬美元調升，仍將維持最低。

Turning to Ohio. The CenterPoint acquisition is on track for a calendar fourth quarter closing. In January, we made our HSR filing and the required waiting period has since passed, completing that regulatory process. In addition, we've given notice of the acquisition to the Public Utilities Commission of Ohio and expect an order from the commission in late spring or early summer. Tim will have more on the acquisition later in the call.

接著談俄亥俄州。CenterPoint 收購案正按計畫推進，預計於曆年第四季完成交割。我們已於一月提交 HSR 申報，法定等待期也已屆滿，完成該項監管程序。此外，我們已就本次收購向俄亥俄州公共事業委員會提出通知，並預期委員會將於晚春或初夏發布命令。Tim 稍後會在電話會議中進一步說明這項收購案。

Before closing, a quick word on energy policy in New York State, where we continue to see a growing recognition of the practical role natural gas must play in the state's energy future. While New York remains committed to its long-term climate objectives, recent proposals from Governor Hochul and the adoption of the state energy plan reflect a more balanced common sense approach. Policymakers are increasingly focused on maintaining reliability, protecting affordability for customers and ensuring the system can perform during peak demand periods, particularly during winter weather events. Those discussions underscore what we've long believed. The existing natural gas system remains essential to serving homes and businesses and supporting electric grid reliability and will continue to be a critical part of New York's energy mix for decades.

在結束前，簡要談一下紐約州的能源政策；我們持續看到各界日益認同天然氣在該州能源未來中必須扮演的務實角色。雖然紐約仍致力於其長期氣候目標，但 Hochul 州長近期的提案以及州能源計畫的採納，反映出更為平衡、合乎常理的做法。政策制定者愈來愈聚焦於維持可靠性、保障客戶可負擔性，並確保系統能在尖峰需求期間運作，特別是在冬季天候事件期間。這些討論凸顯了我們長期以來的看法。既有的天然氣系統仍是服務家庭與企業、支撐電網可靠性所不可或缺，並將在未來數十年持續成為紐約能源組合中的關鍵一環。

In closing, National Fuel is well positioned to deliver steady growth in earnings and cash flow in the years ahead. We have a great set of Integrated Upstream and Gathering assets with multiple decades of high-quality development inventory. Our midstream infrastructure is strategically located to provide key support to the significant growth in natural gas-fired electric generation expected in the region. And we have a growing base of utility earnings that will be further enhanced with the completion of our pending Ohio LDC acquisition. Taken together, the National value proposition is as strong as it's ever been. With that, I'll turn the call over to Tim.

最後總結，National Fuel 已具備良好條件，在未來幾年實現獲利與現金流的穩健成長。我們擁有一組優質的整合式上游與集輸資產，具備可開發數十年的高品質開發庫存。我們的中游基礎設施具策略性區位，可為區域內預期顯著成長的天然氣發電提供關鍵支援。同時，我們的公用事業獲利基礎持續擴大，並將隨著待完成的俄亥俄州 LDC 收購案交割而進一步提升。綜合而言，National 的價值主張比以往任何時候都更強。接下來我把電話會議交給 Tim。

Thanks, Dave, and good morning, everyone. National Fuel had record earnings per share in the second quarter, driven in large part by the strength of our natural gas marketing and hedging portfolio. We've intentionally positioned this portfolio to capture meaningful upside from higher winter prices, and we saw that come to fruition in late January and February. Combining this with the steady growth of our regulated businesses, National Fuel's adjusted earnings per share increased 13% for the quarter. We also generated approximately $160 million in free cash flow. This unique combination of EPS growth and significant free cash flow generation differentiates National Fuel from many of our peers.

謝謝你，Dave，各位早安。National Fuel 在第二季創下每股盈餘新高，主要受惠於我們天然氣行銷與避險投資組合的強勁表現。我們刻意將該投資組合定位，以掌握冬季價格走高所帶來的可觀上行空間，而這在一月底與二月得以實現。再加上受監管業務的穩健成長，National Fuel 本季調整後每股盈餘年增 13%。我們也創造了約 1.6 億美元的自由現金流。這種每股盈餘成長與顯著自由現金流產生的獨特組合，使 National Fuel 有別於許多同業。

Diving a bit deeper into the results for the quarter. First, in the Integrated Upstream and Gathering segment, price realizations were up more than $0.50 per Mcf or nearly 20%. While we convert a lot of our marketing portfolio to NYMEX-linked prices, we maintain a bit more exposure in the winter months to markets that have the potential for premium prices as demand spikes. That exposure provided a great tailwind during the quarter. Pairing that with the skew towards collars in the winter months, we were able to capture a nice benefit during the extended cold snap. On the production side, results came in slightly below expectations. As Dave mentioned, the system held up well during the challenging weather. However, road closures impacted our operations, which reduced production for the quarter. Overall, this had a 5 Bcf impact in the quarter.

再更深入看一下本季的結果。首先，在整合式上游與集輸事業部門，實現價格每 Mcf 上升超過 0.50 美元，約近 20%。雖然我們將行銷投資組合中很大一部分轉為與 NYMEX 連動的價格，但在冬季月份我們仍保留較多曝險於在需求飆升時可能出現溢價的市場。這樣的曝險在本季帶來了很大的順風助力。再搭配冬季月份偏向使用領口式策略（collars），我們在這段延長寒流期間得以取得不錯的收益。在產量方面，結果略低於預期。如 Dave 所提到，系統在嚴峻天候下仍維持良好運作。然而，道路封閉影響了我們的作業，使本季產量下降。整體而言，這對本季造成約 5 Bcf 的影響。

Lastly, our per unit gathering O&M came in slightly above expectations. This was a result of a new preventative maintenance strategy we deployed on several compressors. In the normal course, we take compressors out of service to perform maintenance. However, in certain instances, it is more beneficial to swap in a new engine to minimize downtime and upgrade the technology. There is minimal cost to doing this, but the accounting rules require us to write down the remaining net book value of the unit being replaced. As a result, we recorded a larger-than-normal expense during the quarter. We now expect gathering O&M to be $0.01 higher at $0.12 per Mcf for the full year. But going the other direction, upstream LOE is expected to be $0.01 lower. On a combined basis, we don't see any impact on our cost structure. On the regulated side of the business, results were ahead of expectations as we continue to see strong execution across the board.

最後，我們的集輸單位 O&M 成本略高於預期。這是因為我們在數台壓縮機上部署了一項新的預防性維護策略。在一般情況下，我們會讓壓縮機停機以進行維護。然而，在某些情況下，為了將停機時間降到最低並升級技術，以新引擎替換更為有利。這樣做的現金成本很低，但會計準則要求我們將被替換設備剩餘的淨帳面價值沖減。因此，我們在本季認列了高於正常水準的費用。我們目前預期全年集輸 O&M 將上調 0.01 美元至每 Mcf 0.12 美元。但相反地，上游 LOE 預期將下調 0.01 美元。合併來看，我們不認為這會對成本結構造成任何影響。在受監管業務方面，結果優於預期，因為我們持續看到各項業務的執行力表現強勁。

Turning to guidance. The biggest change for the remainder of the year relates to our NYMEX price assumption, which we are now projecting to be $3 per MMBtu, down from $3.75. With the lower pricing, we are also seeing modestly tighter basis differentials over that same period, which we now project to be $0.80 below NYMEX. We are approximately 75% hedged for the rest of the year, with the bulk of that in the form of swaps and fixed price sales. This provides price certainty, which lessens the impact of the lower expected pricing on our earnings guidance, which we now project to be in the range of $7.45 to $7.75 per share. At the midpoint, this represents a 10% increase over last year.

接著談指引。今年剩餘期間最大的變動與我們對 NYMEX 價格的假設有關；我們目前預估為每 MMBtu 3 美元，低於先前的 3.75 美元。隨著價格下調，我們也看到同期間基差差異略為收斂，目前預估為較 NYMEX 低 0.80 美元。我們對今年剩餘期間約 75% 的部位已完成避險，其中大多以交換合約（swaps）與固定價格銷售的形式進行。這提供了價格確定性，降低較低預期價格對我們獲利指引的影響；我們目前預估每股盈餘將落在 7.45 至 7.75 美元區間。以中位數計算，這較去年增加 10%。

Embedded in our assumptions are a few other changes, including production guidance, which we now expect to be 425 to 440 Bcfe for the full year. This is down 3% from our prior guidance range, but at the midpoint is still expected to be up relative to last year. Longer term, our outlook for production growth remains intact. As a reminder, our guidance does not assume any price-related curtailments. Thus far since winter, we haven't curtailed any volumes. But to the extent we see material in-basin pricing declines, we may decide to do so. At the midpoint of guidance, our spot exposure is limited to approximately 30 Bcf, which minimizes the potential impact on earnings and cash flows for the year.

我們的假設中也包含其他幾項變動，包括產量指引；我們目前預期全年為 425 至 440 Bcfe。這較先前指引區間下調 3%，但以中位數來看仍預期較去年增加。從更長期來看，我們對產量成長的展望仍維持不變。提醒一下，我們的指引並未假設任何與價格相關的減產（curtailments）。自冬季以來，我們迄今尚未減產任何量。但若我們看到盆地內現貨價格出現實質下滑，我們可能會決定採取減產。以指引中位數計算，我們的現貨曝險僅約 30 Bcf，可將今年對獲利與現金流的潛在影響降至最低。

Lastly, on our fiscal 2026 outlook, we've increased our guidance for Pipeline and Storage segment revenues. During the quarter, as colder weather settled in, we were able to take advantage of the increased demand. We also saw higher revenues tied to a tracker on electric costs, but those are fully offset in O&M. There were a couple of additional tweaks to a few guidance assumptions, all of which are highlighted in our earnings release and IR presentation.

最後，關於我們 2026 財年的展望，我們上調了管線與儲存事業部門的營收指引。本季隨著較冷天氣到來，我們得以把握需求增加的機會。我們也看到與電力成本追蹤機制（tracker）相關的營收增加，但這些在 O&M 中會被完全抵銷。另外還有幾項指引假設的小幅調整，皆已在我們的財報新聞稿與投資人關係（IR）簡報中重點說明。

Switching to capital. Our guidance remains the same. However, we are trending towards the higher end of those ranges. In the regulated subsidiaries, we have had great success with our modernization programs and are ahead of schedule on our plans for the year. With our pending rate proceedings, we expect to obtain timely recovery for this spending. Our two pipeline expansion projects are on track as well, both from a timing and budget perspective. The bulk of construction season is still ahead of us, so things may move around a bit as we work through the rest of the fiscal year. Justin will have more on nonregulated spending in a minute.

轉到資本支出。我們的指引維持不變。不過，我們目前的趨勢正朝向該區間的高端。在受監管子公司方面，我們的現代化計畫推動成效卓著，且今年度的計畫進度超前。隨著我們尚在進行中的費率審議程序，我們預期可就這些支出取得及時回收。我們的兩項管線擴建專案也都按計畫推進，無論在時程或預算面皆然。施工旺季的大部分仍在前方，因此在我們推進本會計年度剩餘期間時，進度可能會有些微調整。Justin 稍後會就非受監管支出補充說明。

Overall, our balance sheet is in great shape. We still anticipate generating a significant amount of free cash flow, more than enough to cover our growing dividend and reduce absolute leverage before closing our Ohio LDC acquisition. We expect to end the year below 2x debt-to-EBITDA and approach 50% FFO to debt. This leaves us in a comfortable position to achieve our target of mid-2x debt-to-EBITDA after the first full year post closing.

整體而言，我們的資產負債表狀況非常穩健。我們仍預期可產生可觀的自由現金流，足以覆蓋我們持續成長的股利，並在完成俄亥俄 LDC 收購交割前降低絕對槓桿。我們預期年底時淨負債對 EBITDA 將低於 2 倍，FFO 對負債比率將接近 50%。這使我們處於相當舒適的位置，可在交割後第一個完整年度達成我們的目標：淨負債對 EBITDA 約為 2 倍中段水準。

Sticking with the acquisition, things are moving along well. With the HSR process behind us, our focus is on the notice filing in Ohio. We've had several discussions with commission staff over the past few months, and we expect to complete this process well in advance of closing. Our teams are also working diligently to prepare for an efficient transition of the business, and we are confident that it will be a smooth process for customers. We are also taking the necessary steps to position ourselves to complete the remaining permanent financing prior to closing. We are working to finalize the necessary pro forma financial statements, which we anticipate wrapping up shortly. Once those are ready, we will start to evaluate the market to find the right window to raise the remaining $1 billion we need at closing.

延續收購案的部分，進展順利。HSR 程序已完成後，我們的重點轉向在俄亥俄州的通知申報。過去幾個月我們已與委員會工作人員進行多次討論，並預期可在交割前很早就完成此流程。我們的團隊也正積極準備，以確保業務能高效率地移轉，我們有信心對客戶而言將是順暢的過程。我們也正採取必要步驟，以在交割前完成剩餘的永久性融資安排。我們正在完成所需的備考財務報表，預期很快就能收尾。待其就緒後，我們將開始評估市場，尋找合適的時點在交割時籌措我們所需的剩餘 10 億美元。

We also plan to refinance our $300 million October maturity and term out a portion of the term loan that we temporarily repaid with the proceeds from our equity issuance completed last December. All told, we expect to raise up to $1.5 billion across multiple tranches. We also recently upsized our committed credit facility, which now provides $1.3 billion of borrowing capacity to support our growing operations. This was well supported by our bank group and provides us with additional financial flexibility in the future.

我們也計畫為 10 月到期的 3 億美元債務進行再融資，並將部分定期貸款展期；該定期貸款先前以我們去年 12 月完成的股權發行所得暫時償還。總計而言，我們預期將透過多個分期（tranches）籌資最多 15 億美元。我們近期也擴大了已承諾的循環信貸額度，目前可提供 13 億美元的借款能力，以支援我們持續成長的營運。此舉獲得銀行團的大力支持，並為我們未來提供更高的財務彈性。

In conclusion, we expect 2026 to be a key inflection point for National Fuel. We are leveraging our interstate pipeline assets and commercial relationships to significantly expand the FERC-regulated businesses. We have two critical expansion projects under construction and another expansion announced yesterday. Our Ohio LDC acquisition will provide a further avenue for stable, regulated growth.

總結而言，我們預期 2026 年將是 National Fuel 的關鍵轉折點。我們正運用州際管線資產與商業關係，大幅擴張受 FERC 監管的業務。我們有兩項關鍵擴建專案正在施工中，且昨日也宣布了另一項擴建。我們對俄亥俄州 LDC 的收購，將進一步提供穩定、受監管成長的途徑。

Lastly, our strong balance sheet and significant free cash flow generated by our nonregulated businesses provides the foundation upon which we can deliver further growth. Combining this with our commitment to consistently return an increasing amount of cash to shareholders, National Fuel is positioned to create value for years to come. With that, I'll turn the call over to Justin.

最後，我們強健的資產負債表，以及由非受監管業務所產生的大量自由現金流，為我們帶來進一步成長奠定基礎。結合我們持續向股東回饋逐年增加現金的承諾，National Fuel 已具備在未來多年創造價值的有利位置。接下來我把電話交給 Justin。

Thanks, Tim, and good morning, everyone. Our Integrated Upstream and Gathering segment had a solid second quarter, delivering record EBITDA of more than $300 million, driven by net production of 102 Bcf and higher natural gas prices during Winter Storm Fern. Through the severe weather conditions, our team and Integrated Upstream and Gathering facilities performed exceptionally well with minimal downtime due to freeze-offs. That said, the heavy snowfall and extreme cold in January and February closed roads, which slowed completions and delayed flowback on a new pad. These weather-driven factors modestly impacted production during the quarter and are expected to have a similar effect on fiscal year production as volumes shift into future periods.

謝謝 Tim，大家早安。我們的整合式上游與集輸（Integrated Upstream and Gathering）事業部第二季表現穩健，受惠於 102 Bcf 的淨產量以及冬季風暴 Fern 期間較高的天然氣價格，EBITDA 創下超過 3 億美元的歷史新高。在嚴峻天候下，我們的團隊與整合式上游與集輸設施表現極為出色，因結冰停產（freeze-offs）造成的停機時間極少。不過，1 月與 2 月的大雪與極端低溫導致道路封閉，使完井作業放緩，並延後了新井台的返排（flowback）。這些由天候驅動的因素對本季產量造成輕微影響，且隨著產量移轉至未來期間，預期對本會計年度產量也會有類似影響。

In addition, last fall, we turned in line a 6-well pad in Northwest Tioga and a separate fault block, which included an Upper Utica well and a Lower Utica Gen 4 test, along with 4 older design wells. The 4 wells with older style designs are underperforming our projections. This pad was strategically drilled about 18 months ago in part to hold an almost 20,000-acre parcel of land, but prior to our 3D seismic shoot and incorporation of that data into our broader subsurface model. Today, we have the benefit of an integrated subsurface model and significant other attributes across the vast majority of our core development area, which we expect will lead to superior outcomes going forward.

此外，去年秋天，我們在 Tioga 西北部的一個 6 口井井台以及另一個斷層區塊投產；該區塊包含一口 Upper Utica 井與一口 Lower Utica Gen 4 測試井，並搭配 4 口較舊設計的井。其中 4 口採用舊式設計的井，其表現低於我們的預估。約 18 個月前，我們策略性地鑽鑿此井台，部分目的在於維持一塊近 20,000 英畝土地的權益，但當時尚未完成 3D 地震勘測，亦未將該資料納入我們更廣泛的地下地質模型。如今，我們已具備整合式地下地質模型，並在我們核心開發區域的絕大部分掌握大量其他屬性資料；我們預期這將在未來帶來更優異的成果。

Going the other way, the Gen 4 and Upper Utica wells on the pad are demonstrating strong productivity in line with our expectations. While the older design wells will modestly impact our production estimate for the balance of fiscal '26, the Gen 4 and Upper Utica results, along with our deep understanding of the subsurface, reinforce our confidence in this area and optimal future well design.

相反地，該井台上的 Gen 4 與 Upper Utica 井正展現出強勁的生產力，符合我們的預期。雖然舊式設計井將對 2026 會計年度剩餘期間的產量預估造成輕微影響，但 Gen 4 與 Upper Utica 的結果，加上我們對地下地質的深入理解，進一步強化了我們對該區域以及未來最佳井設計的信心。

Overall, we are reducing fiscal '26 production guidance by 3% at the midpoint to a range of 425 to 440 Bcf to account for the expected impact of these items. Despite this modest adjustment, we remain confident in durable mid-single-digit production growth over the next several years. Across our operations, we remain focused on continuous improvement and are advancing our testing program to further optimize well design and understand productivity drivers across our core area.

整體而言，為反映上述事項的預期影響，我們將 2026 會計年度產量指引在中位數下調 3%，至 425 至 440 Bcf 的區間。儘管這是小幅調整，我們仍對未來數年可持續的中個位數產量成長充滿信心。在各項營運上，我們仍聚焦於持續改善，並正推進測試計畫，以進一步最佳化井設計，並理解我們核心區域的生產力驅動因素。

During the quarter, our two best-performing Tioga Utica pads to date, Bauer and Taft, reached cumulative production of 130 Bcf. The 12 wells across these pads, 10 of which incorporated Gen 3 and Gen 4 designs and two of which are Upper Utica wells were turned in line in late 2024 and produced at rate-constrained levels of 25 million to 30 million per day for an extended period. We estimate they will deliver about 900 million per 1,000 foot in 18 months, among the best results in the basin.

本季期間，我們迄今表現最佳的兩個 Tioga Utica 井台——Bauer 與 Taft——累計產量達到 130 Bcf。這兩個井台共 12 口井，其中 10 口採用 Gen 3 與 Gen 4 設計，另有 2 口為 Upper Utica 井；它們於 2024 年底投產，並在相當長一段期間以受限產能（rate-constrained）的 2,500 萬至 3,000 萬立方英尺/日水準生產。我們估計其在 18 個月內每 1,000 英尺可產出約 9 億立方英尺，屬於該盆地中最優異的成果之一。

Turning to development activity during Q2. We turned in line our first Tioga co-development pad with 3 Upper and 3 Lower Utica wells, and we have another pad planned to come online toward the end of the fiscal year. On this pad, we also utilized production facilities that allowed us to flow a single Tioga Utica well rate constrained at 40 million per day, well above the 25 million to 30 million per day we held on Bauer and Taft. It's early, but this is an encouraging data point. And the team is doing a great job expanding what we believe is possible on well deliverability.

接著談第二季的開發活動。我們讓首個 Tioga 協同開發（co-development）井台投產，包含 3 口 Upper Utica 與 3 口 Lower Utica 井；此外，我們計畫在本會計年度接近年底時再有另一個井台上線。在此井台上，我們也採用了可讓單口 Tioga Utica 井以受限產能 4,000 萬立方英尺/日進行返排的生產設施，明顯高於我們在 Bauer 與 Taft 維持的 2,500 萬至 3,000 萬立方英尺/日。目前仍屬初期，但這是一個令人鼓舞的數據點。團隊在拓展我們認為井口可交付能力（deliverability）所能達到的上限方面，做得非常出色。

Finally, at the very end of the quarter, we began flowing back our first fully bounded Lower Utica Gen 4 pad with a total of 5 wells. Expanding the capacity of our surface equipment, understanding co-development influences and building confidence in optimal well design are key components of our continuous improvement focus. Pulling it all together, these data points inform our long-term development planning, and we'll remain deliberate in testing variables and applying what we learned to further optimize the program over time.

最後，在本季末端，我們開始回流（flowback）我們第一個完全受控（fully bounded）的 Lower Utica 第四代（Gen 4）井場（pad），共計 5 口井。擴充地面設備產能、理解共同開發（co-development）的影響並建立對最佳井設計的信心，是我們持續改善重點的關鍵組成。綜合來看，這些數據點為我們的長期開發規劃提供依據；我們將持續審慎測試各項變數，並把所學應用於進一步隨時間優化整體方案。

Turning to capital. We're maintaining our prior guidance of $560 million to $610 million. Our drilling team is driving efficiencies that may result in more wells being drilled this year. While this is very positive and reduces our cost per foot, it has the potential to bring forward capital. On the land side, we've been extremely active, making a number of strategic moves to further bolster our acreage position given our confidence in the Utica resource. We are also seeing emerging cost headwinds tied to the conflict in Iran, particularly higher oil and diesel prices flowing through drilling, completions and logistics, especially long-haul intensive activities.

接著談資本支出。我們維持先前的指引，為 5.60 億至 6.10 億美元。我們的鑽井團隊正推動效率提升，可能使今年能鑽更多口井。雖然這非常正面並降低我們的每英尺成本，但也可能使資本支出提前發生。在土地方面，我們一直非常積極，基於對 Utica 資源的信心，進行多項策略性布局以進一步強化我們的土地持有部位。我們也看到與伊朗衝突相關的新興成本逆風，特別是油價與柴油價格上升，透過鑽井、完井與物流傳導，尤其影響長途運輸占比較高的活動。

Altogether, these items have us trending towards the high end of the range. In our gathering operations, construction activities are well underway with seasonal pipeline and infrastructure construction expected to continue into the summer months. Near-term activity continues to support Seneca's production growth while advancing opportunities for incremental third-party volumes in Tioga County. We have multiple projects underway to expand pipeline and compression capacity in our core area. And throughput continues to track Seneca's production closely with third-party volumes steady and in line with our full year projections.

綜合而言，這些因素使我們的趨勢偏向區間上緣。在我們的集輸（gathering）營運方面，建設活動正如火如荼進行，季節性的管線與基礎設施施工預期將持續到夏季。短期活動持續支撐 Seneca 的產量成長，同時推進在 Tioga 郡取得額外第三方輸送量的機會。我們在核心區域有多個專案進行中，以擴增管線與壓縮（compression）能力。而處理量（throughput）仍緊貼 Seneca 的產量走勢，第三方量保持穩定，並符合我們全年預測。

Turning to the broader natural gas outlook. We are bullish on the long-term setup and see fundamentals supportive of higher prices over time. LNG exports are near record levels of around 20 Bcf per day with additional capacity coming online. And recent global events continue to highlight the value of reliable, low-cost US natural gas. Domestically, demand is building in the Northeast and the Mid-Atlantic regions, driven by gas-fired power generation, data centers and AI-related load growth. At the same time, producer discipline is keeping supply growth in check, particularly in Appalachia, where pure curtailments are effectively limiting near-term volumes in excess of demand.

接著談更廣泛的天然氣展望。我們看多長期格局，並認為基本面將隨時間推移支撐更高的價格。LNG 出口接近歷史高位，約每日 200 億立方英尺（Bcf），且仍有新增產能將上線。近期全球事件也持續凸顯可靠、低成本美國天然氣的價值。在國內，東北與中大西洋地區的需求正在增加，主要由燃氣發電、資料中心與 AI 相關負載成長所帶動。同時，生產商的自律使供給成長受到抑制，尤其在阿帕拉契亞（Appalachia）地區，純粹的限產（curtailments）有效限制了短期超過需求的供應量。

Overall, we expect a more balanced market and improving long-term price realizations for high-quality Appalachian supply, especially for operators with strong market access and flexibility like Seneca. Against this backdrop, we're executing our multiyear marketing strategy to reach premium markets and added flexibility, both in-basin and out of basin. Over the next few years, we expect total firm transport capacity to grow approximately 50% to more than 1.5 Bcf per day. Just this month, we gained access to our new 50 million per day of firm transportation that reaches the Gulf Coast. During the second quarter, we added another 50 million per day of long-term firm capacity along the same route that will go in service over the next few years, doubling our Gulf Coast exposure over time on similarly attractive terms.

整體而言，我們預期市場將更趨平衡，且高品質阿帕拉契亞供應的長期實現價格（price realizations）將改善，特別是像 Seneca 這樣具備強大市場通達性與彈性的營運商。在此背景下，我們正執行多年期的行銷策略，以觸及溢價市場並提升彈性，涵蓋盆地內與盆地外。未來幾年，我們預期總固定運輸（firm transport）能力將成長約 50%，提升至每日超過 15 億立方英尺（Bcf）。就在本月，我們取得每日 5,000 萬立方英尺的新固定運輸能力，可通往墨西哥灣沿岸。在第二季，我們沿同一路徑再新增每日 5,000 萬立方英尺的長期固定運能，將於未來幾年投入服務，使我們對墨西哥灣沿岸的曝險隨時間加倍，且條件同樣具吸引力。

Our inventory depth in Northeast Pennsylvania, which is arguably deeper than any peer in the region, positions us well to be a disciplined acquirer of transportation capacity as it becomes available. With increasing access to the Gulf, the soon-to-go in service Tioga Pathway project and the EGT Project Stratum, which reaches premium markets in Western Pennsylvania and Leidy Hub, we're taking strategic steps to support long-term growth through valuable pipeline capacity contracts. We see additional opportunities ahead and remain confident in our ability to deliver growth at premium price realizations over time.

我們在賓州東北部的庫存深度（inventory depth）可說比區域內任何同業都更深，使我們能在運輸能力釋出時，以自律的方式取得相關容量。隨著通往墨西哥灣的可達性提升，以及即將投運的 Tioga Pathway 專案與 EGT Project Stratum（可通往賓州西部與 Leidy Hub 等溢價市場），我們正透過具價值的管線容量合約採取策略性步驟，以支持長期成長。我們看到前方仍有更多機會，並對我們隨時間以溢價實現價格交付成長的能力保持信心。

In closing, the underlying strength of our asset base is clear. Our testing program continues to validate acreage depth and quality and will help optimize development for years to come. We've remained disciplined on capital despite emerging headwinds and our recent marketing and midstream investments support future growth and greater access to premium markets. Overall, we remain well positioned to deliver durable production growth, increasing free cash flow and long-term value for our stakeholders.

最後總結，我們資產基礎的內在強度十分明確。我們的測試計畫持續驗證土地的深度與品質，並將協助未來多年優化開發。儘管出現新的逆風，我們在資本上仍保持自律，而近期在行銷與中游（midstream）方面的投資，將支持未來成長並提升對溢價市場的可達性。整體而言，我們仍具備良好定位，可為利害關係人帶來可持續的產量成長、增加的自由現金流與長期價值。

With that, I'll turn it back to the operator to open the line for questions.

接下來，我把時間交還給主持人，開放提問。

[Operator Instructions]

[主持人指示]

Your first question comes from the line of Zach Parham, JPMorgan.

第一個問題來自 JPMorgan 的 Zach Parham。

First wanted to ask on curtailments. Tim, I think you mentioned in your prepared remarks that NFG didn't have any curtailments in the current guide. Another Appalachian producer talked about some curtailments in 2Q. I know you've got the large majority of your volume hedged, but can you talk about how you're thinking about curtailments? Is there a price level in the in-basin where you think about shutting in some volumes and maybe what -- where about is that price level?

首先想問限產（curtailments）。Tim，我記得你在事先準備的講稿中提到，NFG 在目前的指引中沒有任何限產。另一家阿帕拉契亞生產商談到第二季有一些限產。我知道你們絕大多數的產量都有避險，但能否談談你們如何看待限產？在盆地內（in-basin）是否有一個價格水準會讓你們考慮關井（shut in）部分產量？大概會是在什麼價位？

Zach. Like I said, we have approximately about 30 Bcf exposed into the spot market. And as we've said in years past, especially when we've seen lower prices, we don't specifically talk about the price level at which we curtail. I think what we've said historically is that prices north of $2, we're still flowing gas. Prices well below $1, we're definitely curtailing somewhere in there is where we typically make the decision. So we don't give that specific price. But again, we're very limited exposure and each day that passes, we're continuing to flow gas right now.

Zach。如我所說，我們大約有 300 億立方英尺（Bcf）曝險於現貨市場。而且如同我們過去幾年所說，特別是在看到較低價格時，我們不會具體談論我們進行限產的價格水準。我想我們歷來的說法是，價格高於 2 美元時，我們仍會持續供氣。價格遠低於 1 美元時，我們肯定會限產；通常就是在那之間做決策。所以我們不提供那個特定價格。但再次強調，我們的曝險非常有限，而且隨著每一天過去，我們目前仍持續供氣。

Then my follow-up is maybe for Justin. You talked about flowing one of the new wells at 40 million a day versus the 25 million to 30 million that I think you flowed in some of the older wells. Can you talk about, one, your expectations on how long these wells can hold that plateau period at the higher rate? And two, how having the equipment in place to flow at a higher rate impacts both cost and potential returns from pulling forward some volumes?

那我的追問可能是問 Justin。你提到其中一口新井的日流量是 4,000 萬，相較於我記得一些較舊井大概是 2,500 萬到 3,000 萬。能否談談，第一，你們預期這些井在較高流量下能維持平台期（plateau period）多久？第二，具備以更高流量生產的設備，對成本以及因提前產出部分產量而帶來的潛在報酬有何影響？

Yes. Sure, Zach. So a couple of things. I mean, one, in terms of the ultimate sustained period, we're going to have to do more work and look at it, but it should be relatively linear with wells that we produce at 30 million. We would expect to get some sort of cume in total drawdown over a period of time. Of course, if you're flowing at 40 million versus 25 million or 30 million, that period of time will be a little bit shorter. But it also brings forward value. And so one of the things we're really looking for and trying to optimize on, and I think this goes back to your cost question, is that we believe that we're close on a design where we'll be able to flow at those higher rates and do it at the exact same production facility cost that we have today, potentially even less as we continue to optimize and improve those designs.

是的。當然，Zach。有幾點。第一，就最終可持續期間而言，我們還需要做更多工作並進一步分析，但它應該會與我們以 3,000 萬產出的井相對呈線性關係。我們預期在一段時間內，總累積產量（cume）會對應某種總壓降（drawdown）。當然，如果你以 4,000 萬而不是 2,500 萬或 3,000 萬的速度生產，那段時間會稍微短一些。但它也會把價值提前實現。因此我們真正想要尋找並加以優化的其中一點——我想這也回到你關於成本的問題——是我們相信我們已接近一個設計，使我們能以更高流量生產，同時在生產設施成本上與目前完全相同，甚至在我們持續優化與改良設計的過程中，可能更低。

And what we're really balancing is that particularly if we have a pad with less overall wells, let's say, it's 4 or 5 wells on that pad, and they're very long laterals, which we've been moving towards recently, we're actually -- recently here just finished casing some wells that will be approaching 20,000-foot TLL. With wells like that, the opportunity to flow at a higher rate restricted rate, even if it's for ultimately a little shorter period can pull a lot of value forward. And so we're trying to understand kind of what that relative balance is and what the overall deliverability makes sense.

而我們真正要權衡的是，特別是如果我們有一個井場（pad）整體井數較少，比方說該井場只有 4 口或 5 口井，而且它們的水平段非常長——這也是我們最近一直在推進的方向——我們最近剛完成了幾口井的下套管，這些井的總水平長度（TLL）將接近 20,000 英尺。像這樣的井，即使最終只是在較短的期間內，以較高的受限流量（restricted rate）生產，也有機會把大量價值提前實現。因此，我們正試著理解這種相對平衡應該如何拿捏，以及整體可交付能力（deliverability）採取什麼樣的水平才合理。

But look, we're encouraged by it. We know from the wells we've drilled that there's plenty of pressure and plenty of opportunity to do more. It's just going to be this balancing act. And the other thing that we, of course, factor into all of this is our gathering infrastructure and what makes the most sense from an integrated investment and capital allocation decision. So those are the kind of guiding principles that we're looking at in it. But this was a great opportunity to just have a well where we could pretty easily and inexpensively really validate this test for ourselves, and it was successful.

不過你看，我們對此感到鼓舞。我們從已鑽的井知道，地層壓力充足，也有很大的空間可以做得更多。只是這會是一個需要拿捏的平衡動作。當然，我們也會把集輸（gathering）基礎設施納入所有考量，並從整合式投資與資本配置決策的角度，判斷什麼做法最合理。所以，這些就是我們在評估時所依循的指導原則。但這次是一個很好的機會，讓我們能以相對容易且低成本的方式，親自把這項測試真正驗證一遍，而結果是成功的。

Your next question comes from the line of Tim Rezvan, KeyBanc Capital Markets.

下一個問題來自 KeyBanc Capital Markets 的 Tim Rezvan。

I wanted to follow up on upstream. The release highlighted the 6-well pad and in comments, it sounds like 4 wells underperformed expectations with an older completion design. I was curious if you could provide more insight on what happened. Was it simply under stimulation? Was there a downhole issue? And kind of where I'm going with this is, when do you think the team might be comfortable just using the Gen 4 design as your standard recipe going forward?

我想追問一下上游業務。新聞稿提到一個 6 口井的井場，而從你們的評論聽起來，其中有 4 口井使用較舊的完井設計，表現低於預期。我想請你們提供更多細節，究竟發生了什麼事。是單純刺激不足（under stimulation）嗎？還是有井下（downhole）問題？我想問的重點是：你們認為團隊何時會有把握，將 Gen 4 設計作為未來的標準配方全面採用？

Tim, thanks for your question. These wells, you said it right, it was a 6-well pad. It's kind of on the western side of our core development area. Several factors here that play into it. The first one is we have a lot of 3D seismic coverage across our acreage. This area, though, was one we had acquired in 2023, and we're in the process of capturing that 3D seismic and then ultimately processing that and integrate it into our broader subsurface model. So at the time when we were drilling these wells, we didn't have the benefit of that knowledge.

Tim，謝謝你的提問。這些井你說得沒錯，是一個 6 口井的井場。它位於我們核心開發區的西側。這裡有幾個因素共同影響結果。第一，我們在自有礦權範圍內有大量 3D 地震資料覆蓋。但這個區域是我們在 2023 年收購的，我們正在取得該區的 3D 地震資料，之後會進行處理，並最終整合進我們更廣泛的地下地質模型中。因此，在我們鑽這些井的當時，還無法受益於這些資訊。

Today, we have all of that, and we have tremendous understanding and visibility into this area. And so when they were drilled, which was also tied to holding a very important lease that captured about 20,000 acres of land, when they were drilled, we had a -- we were earlier in our days. We were still drilling both well design in terms of interwell spacing as well as proppant loading. We were still testing and doing our Gen 2 designs and then working towards our Gen 3 and Gen 4 designs.

而今天，我們已經具備所有這些資料，對這個區域有非常深入的理解與能見度。這些井當時之所以要鑽，也與維持一份非常重要的租約（lease）有關，該租約涵蓋約 20,000 英畝土地；在鑽井當時，我們——我們還處於較早期階段。我們仍在測試井設計，包括井間距（interwell spacing）以及支撐劑投放量（proppant loading）。我們仍在測試並採用 Gen 2 設計，同時朝 Gen 3 與 Gen 4 設計推進。

If I could go back in time, these would all be Gen 3, Gen 4 because the Upper Utica well in the pad and the Gen 4 design in the pad are very strong performers, right in line with our expectations. These 4 wells, though, that were older Gen 2 designs, just have underperformed. And so we've got a lot better understanding in this area. Like I said, I mean, we've got now -- we've got a lot of wells across our broader portfolio, a lot more information, a lot better understanding, and that's informing the decisions we're making today.

如果我能回到當時，這些井全部都會採用 Gen 3、Gen 4，因為該井場中的 Upper Utica 井以及採用 Gen 4 設計的井表現非常強勁，與我們的預期完全一致。但這 4 口採用較舊 Gen 2 設計的井，確實表現不如預期。因此，我們現在對這個區域的理解已經好很多。就像我說的，我們現在——我們在更廣泛的資產組合中有更多井、更多資訊、也有更好的理解，這些都在影響我們今天所做的決策。

So as part of that, the idea of going all the way to a Gen 4 design we're trending in that direction. But what I'll tell you is we are going to continue to challenge ourselves between Gen 4 and Gen 3 or any other future generation design to really optimize for the best overall return between our upstream and gathering business. And a Gen 4 design is a little bit more expensive than a Gen 3 design, and we want to see additional results from these Gen 4s that we're drilling, including I mentioned at the very end of this Q2, we brought online our first 5-well fully bounded Gen 4 design pad.

因此，在這個背景下，我們確實正朝全面採用 Gen 4 設計的方向前進。但我想說的是，我們會持續在 Gen 4 與 Gen 3（或任何未來世代的設計）之間挑戰自己，真正去優化上游與集輸業務之間的整體最佳報酬。Gen 4 設計的成本比 Gen 3 略高，我們希望從正在鑽的這些 Gen 4 井看到更多結果；包括我在這次 Q2 最後提到的，我們已投產了第一個 5 口井、完全受邊界限制（fully bounded）的 Gen 4 設計井場。

We want that kind of data to really help inform us on if we're moving all the way towards the Gen 4 design or something in between that could be even better. But ultimately, we're going to be led by the economics between our Integrated Upstream and Gathering, getting the most gas for the least amount of overall capital.

我們希望這類數據能真正幫助我們判斷：我們是否要完全走向 Gen 4 設計，或是在兩者之間存在某種可能更好的方案。但最終，我們會以整合式上游與集輸之間的經濟性為依歸，用最少的整體資本取得最多的天然氣產量。

That's a great detailed answer. And as my follow-up, I was curious to learn kind of if you all could give more color on the long-term expansion opportunities for Supply Corp. You highlighted a third project with the Line N upgrade. How many projects are out there? And how do you decide which to pursue? And then on top of that, you mentioned in the slide deck, there's potentially more to do with Line N's potential incremental expansions. And can you talk more about the likelihood that you think you can capture that?

這是個非常詳盡的回答。作為追問，我想了解你們是否能多談一些 Supply Corp 長期的擴張機會。你們提到透過 Line N 升級的第三個專案。外面大概還有多少個專案機會？你們如何決定要推進哪些？另外，你們在簡報中提到，Line N 可能還有更多增量擴張（incremental expansions）的空間。你能否談談你們認為把這些機會拿下的可能性有多大？

Sure. Yes, we've had a great run of doing expansions on Line N over the years. And given its location, I think that we're going to have lots more opportunities in the future. Our current focus right now, if you will, in the Line N area is on power gen, both with behind-the-meter type projects like with our Shippingport project as well as other, call it, just power gen that would go into PJM. And there's a lot of opportunities there. The dialogues that we've had with developers has been productive. As you may know, the Shippingport project, which is initially starting at 200 million a day, could grow to as much as 800 million a day if the project developer was successful in fully building it out. So that certainly would be a big opportunity.

當然。是的，這些年我們在 Line N 上做擴建的成果很不錯。而考量到它的地理位置，我認為未來還會有更多機會。我們目前在 Line N 區域的重點，如果你要我說的話，是電力發電（power gen）：一方面是像 Shippingport 專案那樣的表後（behind-the-meter）類型專案，另一方面也包括其他、可以說是直接送入 PJM 的發電項目。那裡有很多機會。我們與開發商的對話一直很有成效。如你所知，Shippingport 專案初期從每日 2 億立方英尺（200 million a day）開始，如果專案開發商能成功把整體建置完成，規模可成長到每日多達 8 億立方英尺（800 million a day）。因此，那確實會是一個很大的機會。

And then other opportunities along the line are sizable as well, right? Our plants use a lot of gas. And Line N isn't the only spot that we're looking at. Our Empire line that goes from Tioga County north into New York and then ultimately connecting to Canada is another area that we could expand. I think the region is just generally short electric generation. Certainly, in PJM, we see the results of their auctions. But in New York, where there's been such underinvestment in energy infrastructure, at some point, I really believe that we're going to need more generation within the state.

此外，沿線的其他機會規模也很可觀，對吧？我們的工廠用氣量很大。而 Line N 並不是我們唯一在看的地點。我們的 Empire 管線從 Tioga County 往北進入紐約州，並最終連接到加拿大，也是另一個我們可以擴張的區域。我認為整個區域普遍都缺乏發電能力。當然，在 PJM，我們從他們的拍賣結果就看得出來。但在紐約州，由於能源基礎設施長期投資不足，我真的相信在某個時間點，州內將需要更多的發電能力。

And as much as policymakers would like that to be wind and solar, those just don't work for baseload power. And I think we're looking at needing more baseload power and natural gas is the logical choice for that. And our pipelines, particularly the Empire is really well suited for serving that new generation.

而且儘管政策制定者希望那會是風能與太陽能，但那些就是無法提供基載電力。我認為我們將需要更多基載電力，而天然氣是合乎邏輯的選擇。而我們的管線，特別是 Empire，非常適合為那一波新的發電需求提供服務。

Your next question comes from the line of John Freeman, Raymond James.

下一個問題來自 Raymond James 的 John Freeman。

First question, Justin, you touched on some of the maybe headwinds that you're seeing on the CapEx side on the diesel prices and things like that. Could you give just any more kind of color just on a leading-edge basis outside of like diesel prices, if you're seeing anything that's either supply chain type factors as a result of what's going on and then just any potential pressure on the service cost side?

第一個問題，Justin，你提到你在資本支出（CapEx）端看到的一些可能逆風，例如柴油價格之類的。你能否再多補充一些細節：除了柴油價格之外，從領先指標的角度，你是否看到任何因目前情勢而產生的供應鏈類因素？另外在服務成本端是否有任何潛在的成本壓力？

Yes. Sure, John. Thanks for the question. The short answer is you're hitting at kind of the main element, which is more diesel, which obviously haul-intensive activities are going to be impacted by that and various surcharges that are baked into a lot of contracts that us as well as many other operators across the country have with their various vendors. In terms of real supply chain issues, we've actually been talking to all of our counterparties, digging into this, trying to ensure that there's no war-impacted challenges. At this point, we don't believe there are.

是的。當然可以，John。謝謝你的問題。簡短的回答是：你點到主要因素了，也就是柴油成本上升；顯然，運輸量大的作業會受到影響，且許多合約中都已內含各種附加費（surcharges），我們以及全國許多其他營運商與各家供應商的合約皆是如此。就真正的供應鏈問題而言，我們其實已與所有交易對手溝通並深入了解，試圖確保沒有任何受戰事影響的挑戰。截至目前，我們認為沒有。

One, we've looked kind of potentially across like, for example, charges to the extent you have more explosives that potentially could get hung up and tied into Defense Production Act or otherwise needs. And we're just not seeing it. So we think we're pretty well insulated from, I'll call it, the same shocks that a lot of people went through back coming out of COVID, where you had an inability of the supply chain to deliver what you need. It's much more about some pricing headwinds.

第一，我們也檢視了可能的面向，例如費用方面：在你使用更多炸藥的情況下，是否可能因《國防生產法》（Defense Production Act）或其他需求而被卡住、被牽連。但我們沒有看到這種情況。因此我們認為自己相當能隔離（insulated）於我所稱的那種衝擊——很多人從 COVID 後期走出來時經歷過的衝擊，當時供應鏈無法交付你所需要的東西。現在更多是一些價格面的逆風。

And the reality is we don't -- it's so early in this conflict and don't have a lot of visibility when it's going to end and how that works. So we're evaluating it and working on it. And we're not seeing anything specific as it relates to drilling or completions. I would just note that those generally are longer-term contracts for us. We have a long-term frac provider. And similarly, we generally contract our rigs for 12 to 18 months at a time when we're bringing them in.

而現實是——這場衝突才剛開始，我們對它何時結束以及後續如何發展的能見度不高。所以我們正在評估並持續處理。就鑽井或完井而言，我們沒有看到任何具體的影響。我只想補充，這些對我們而言通常是較長期的合約。我們有長期的壓裂（frac）服務供應商。同樣地，當我們引進鑽機時，一般會以 12 到 18 個月為一期來簽約。

And then, Dave, I wanted to follow up on some comments you made previously. It seems like over the last couple of quarters, increasingly, we're hearing more and more of a focus on kind of the behind-the-meter kind of projects like what you have done with Shippingport. And I'm just curious, when you look out like at the opportunity set over the next several years and we sort of think about the opportunities behind the meter versus kind of the traditional grid-based solutions, kind of how you see that mix playing out?

另外，Dave，我想追問你先前的一些評論。看起來在過去幾個季度，我們越來越常聽到你們把重點放在像你們在 Shippingport 所做的那種「表後」（behind-the-meter）的專案。我想請教的是，當你展望未來幾年的機會集合，並比較表後機會與傳統以電網為基礎的解決方案時，你如何看待這兩者的組合比例將如何演變？

I think the focus is switching more towards broader generation within PJM. I mean there still certainly is interest in behind-the-meter generation. I think that tends to go over better with the policymakers. But from a practical standpoint, having -- like I said just a minute ago, having more generation just generally in the region is going to require the build-out of new gas-fired generation, and we're going to be there to support it.

我認為焦點正更多轉向 PJM 區域內更廣泛的發電。當然，表後發電仍然確實有興趣。我認為那通常更能獲得政策制定者的支持。但從實務角度來看——就像我剛才提到的——要在該區域整體增加發電量，將需要新建更多燃氣發電，我們會在那裡提供支援。

[Operator Instructions] Your next question comes from the line of Neil Mehta, Goldman Sachs.

[Operator Instructions] 下一個問題來自 Goldman Sachs 的 Neil Mehta。

Can you hear me okay?

你聽得到我嗎？

Yes.

聽得到。

Sorry about that. So just your perspective on the gas macro would be terrific. I mean we've obviously seen a softening relative to where we were when we connected a couple of months ago and part of that could be the shoulder. Part of it seems like it's just production beats. I mean just your perspective on -- as you think about the balance of this year, we set up for exits in October. How do you think about the setup here? And how is that shaping the way you're approaching activity and hedging?

不好意思。我想聽聽你對天然氣總體環境（macro）的看法。顯然，相較於我們幾個月前連線時的水準，近期價格有所走軟，其中一部分可能是淡旺季交替期（shoulder season）的因素。另一部分看起來像是產量超預期。就你對今年剩餘時間的供需平衡看法而言，我們把 10 月視為退出點（exits）。你如何看待目前的局勢？而這又如何影響你們對作業活動與避險的做法？

Thanks, Neil. I mean, just big picture, nothing has really changed fundamentally about our views. Tim spoke to some of this in his remarks. We've really built the portfolio to go through periods of both high and low prices. And as you're alluding to, that's exactly what we've seen. To go from a February settle of almost 750 and then the settle we just saw here from May of 256 is pretty tremendous volatility. We hedge. We've always hedged. We're methodical about that and thoughtful about it. We use collars to capture the upside. And then we have a marketing portfolio that's designed to capture premium markets at the end, but also minimize in-basin exposure.

謝謝，Neil。從大方向來看，我們的觀點在根本上並沒有改變。Tim 在他的談話中也提到了一些。我們打造這個投資組合，就是為了能穿越高價與低價的不同時期。而如你所暗示的，這正是我們所看到的情況。從 2 月結算價接近 7.50，到我們剛看到 5 月結算價 2.56，這樣的波動非常驚人。我們會避險。我們一直都有避險。我們在這方面做得有方法、有節奏，也很審慎。我們使用領口策略（collars）來保留上行空間。此外，我們的行銷組合（marketing portfolio）設計是為了在終端市場取得溢價，同時也把盆地內（in-basin）的曝險降到最低。

And so Look, I think across the country, we're going to have more gas coming out of the Permian, particularly as these new pipeline projects go in service. Haynesville, a bit of a wildcard, exactly how that moves and exits through the year. But coming back closer to home for us and what really matters are the flows coming out of Appalachia and the relative demand. And I think our view is that, generally speaking, there's just a lot more discipline these days than there has been if you go back several years ago.

所以你看，我認為全美將會有更多天然氣從 Permian 產出，特別是隨著這些新的管線專案投入營運。Haynesville 是個有點難以預測的變數，究竟它在今年內如何變動、如何在年底前退出（exits），還不確定。但回到更貼近我們、也真正重要的，是阿帕拉契亞（Appalachia）的外流量以及相對需求。我認為我們的看法是：一般而言，現在的紀律性比幾年前強得多。

And by discipline, what I'm referring to is just producers in Appalachia understanding that we have a specific amount of storage. We have a specific amount of demand that will fluctuate based upon winter and summer temperatures, of course. But generally, the market stays more balanced and maintains, I'll call it, reasonable differentials to NYMEX Henry Hub. And then look, longer term, Henry Hub, I'll just hit at that briefly. We're still very much in the camp that we're -- we've entered a market where, generally speaking, we're going to see Henry Hub prices between $3 and $5.

我所說的紀律性，是指阿帕拉契亞的生產商理解：我們的儲存容量是固定的。我們的需求量也是固定的，只是會因冬夏溫度而波動，這當然。但整體而言，市場更能維持平衡，並維持我所稱的、相對於 NYMEX Henry Hub 的合理價差（differentials）。再看更長期的 Henry Hub，我簡單提一下。我們仍然非常堅定地認為——我們已進入一個市場：一般而言，Henry Hub 價格將落在 3 到 5 美元之間。

And we would expect that there will be short periods of time that could be above or below that level. And that's really our fundamental view. What's great is that with those kind of prices, with the longer-term $3 to $5, we do fantastic. We generate a lot of free cash flow, a lot of earnings. And as we continue to make forward progress on our capital efficiency trends, that's just going to translate to more and more cash flow. So yes, I mean, very constructive with air pockets along the way, both highs and lows along the way.

我們預期也會有短暫期間高於或低於該區間。這就是我們的基本看法。好消息是，在那樣的價格水準、也就是長期 3 到 5 美元的環境下，我們的表現會非常出色。我們會產生大量自由現金流與大量獲利。而隨著我們持續在資本效率趨勢上取得進展，這將轉化為越來越多的現金流。所以是的，我的意思是，整體上非常建設性（constructive），只是途中會有一些空窗期（air pockets），上上下下都可能出現。

Yes, certainly volatile. I appreciate that. And then just your thoughts around maximizing Gulf Coast exposure and any firm takeaway opportunities down to premium end markets would be good. I mean we saw that you layered in a little bit more here. But how big could that opportunity set be for you guys as you look out over the next couple of years?

是的，當然波動很大。我理解。另外，想請教您對於最大化墨西哥灣沿岸曝險，以及在通往高溢價終端市場方面是否有任何明確的外運（takeaway）機會的看法。我的意思是，我們看到你們在這裡又加了一點。但展望未來幾年，對你們而言，那個機會集合可能有多大？

So I mean, we've been at it now for a few years, really trying to further bolster our takeaway capacity in the form of new firm transportation. When we saw the depth and quality of this Utica resource that we have, it was clear to us we needed to protect the pathway to grow and do that through finding our way into premium markets. I spoke about some of those today. We've got the Tioga Pathway service -- coming in service later this year. We've got the EGT Project Stratum coming in, in a few years.

所以我的意思是，我們已經做了幾年了，確實是在努力透過新增的固定運輸（firm transportation）來進一步強化我們的外運能力。當我們看到我們擁有的這個 Utica 資源的深度與品質時，我們很清楚必須保護成長的通道，並透過進入高溢價市場來做到這一點。我今天也談到其中一些。我們有 Tioga Pathway 服務——將於今年稍晚投入服務。我們也有 EGT Project Stratum，將在幾年後上線。

And then what we've been able to selectively grab are these Gulf Coast new capacity contracts that you're alluding to. Getting that first 50 million, getting that first olive out of the jar took a long time. We've been working on that for 18 months.

然後，我們能夠有選擇性地拿到的，就是你所提到的這些通往墨西哥灣沿岸的新產能合約。拿到第一個 5,000 萬、把第一顆橄欖從罐子裡取出來，花了很長時間。我們為此努力了 18 個月。

And then we were successful here this last quarter at executing a contract to pick up another 50 million. And so over time, we'll have about 100 million going there. And then a lot of our overall FT portfolio, when you think about the $1.5 billion, it gets pretty balanced. We've got a nice chunk that's going to Gulf Coast or to, I'll call it, the Mid-Atlantic markets down as far as Z4, which would be in Alabama, but also Z5 South.

而在上一季，我們成功簽署了一份合約，再增加 5,000 萬。因此隨著時間推進，我們大約會有 1 億的量走向那裡。另外，當你想到我們整體的 FT 組合（以 15 億美元計）時，它其實相當均衡。我們有相當一部分是通往墨西哥灣沿岸，或我稱之為中大西洋市場，最南到 Z4（也就是阿拉巴馬州），同時也包括 Z5 South。

We've got some great capacity that gets us into kind of the New York, non-New York markets. And then we've got some access to some premium PA markets where we see continued, in particular, power gen. There's going to be a lot -- there are a lot of plants under development right now and PJM is short power, and we strongly believe that where we're moving this gas is going to be moving right to it. And then through the northern markets, whether that's Canada or Northern New York.

我們也有一些很棒的運能，讓我們能進入類似紐約、非紐約的市場。此外，我們也能進入一些賓州（PA）的高溢價市場，我們看到需求持續存在，特別是發電端。將會有很多——目前有很多電廠正在開發中，而 PJM 的電力供給偏緊，我們堅信我們輸送的天然氣將會直接流向那裡。然後再往北部市場，不論是加拿大或紐約州北部。

So we really like the portfolio setup. We're going to keep chipping away. I'm confident we'll find more ways to continue to expand it. If that's Gulf Coast, awesome. If it's something else, that's great, too. And we're -- but I'm confident we'll keep chipping away. But we've made huge strides. I mean, growing our portfolio by 50% over the last few years in terms of how much capacity we'll have as we get out to 2029.

所以我們非常喜歡這個投組配置。我們會持續一點一滴地推進。我有信心我們會找到更多方式持續擴大它。如果是墨西哥灣沿岸，那很棒。如果是其他方向，也同樣很好。而我們——我有信心我們會持續一點一滴地推進。但我們已經取得了巨大的進展。我的意思是，過去幾年我們的投組在運能規模上成長了 50%，以我們展望到 2029 年時將擁有的運能來看。

There are no further questions at this time. I will now turn the call back to Natalie for closing remarks.

目前沒有其他問題。我現在把電話會議交回給 Natalie 作結語。

Thank you, Karina. We'd like to thank everyone for taking the time to be with us today. A replay of the call will be available on the website later today. Please feel free to reach out if you have any follow-up questions. Otherwise, we look forward to speaking with you again next quarter. Thank you, and have a nice day.

謝謝你，Karina。我們想感謝各位今天撥冗與會。本次電話會議的重播將於今天稍晚在網站上提供。若您有任何後續問題，歡迎隨時與我們聯繫。否則，我們期待在下個季度再次與各位交流。謝謝，祝您有美好的一天。

This concludes today's call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以掛線。