National Fuel Gas Plans Tax-Free Spin-Off of Upstream Unit by H2 2027

National Fuel Gas Company (NFG) announced a board-approved plan to separate its Integrated Upstream and Gathering business into an independent, publicly traded company through a tax-free spin-off to shareholders. The separation is targeted for completion in the second half of 2027.

The transaction will turn National Fuel Gas into a fully rate-regulated utility and pipeline company serving roughly 1.1 million utility customers with approximately 5 billion cubic feet per day of transport capacity and 77 billion cubic feet of storage. Meanwhile, the standalone upstream company will operate as a pure-play Appalachian natural gas producer controlling about 1.2 million net acres, daily production of 1.1 billion cubic feet, and 5 trillion cubic feet equivalent of proved reserves.

The company expects to distribute at least 80.1% of the new entity to its stockholders while potentially retaining up to 19.9% post-spin to support its balance sheet through a tax-efficient disposition. Final execution remains subject to standard conditions, including financing arrangements, filing effectiveness, and final board approval.